8584. Southern Maryland Trust Company (Seat Pleasant, MD)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
trust company
Start Date
December 13, 1929
Location
Seat Pleasant, Maryland (38.896, -76.907)

Metadata

Model
gpt-5-mini
Short Digest
9963fa4a

Response Measures

None

Description

The bank was closed by the Maryland Bank Commission on December 13, 1929, placed in receivership, and reorganized/reopened in March 1930 after stockholder pooling and court approval. There is no description of a depositor run in the articles; the closure is described as due to exhausted reserves/frozen assets (including F.H. Smith Co. paper) and by government action (bank commissioner).

Events (5)
1. December 13, 1929 Suspension
Cause
Government Action
Cause Details
Closed by Maryland Bank Commissioner/State Banking Commission because the bank's reserves had become exhausted and assets were frozen, some consisting of F. H. Smith Co. paper.
Newspaper Excerpt
the banks of the trust company at Seat Pleasant and Upper Marlboro were ordered closed by the State Banking Commission Friday afternoon.
Source
newspapers
2. December 17, 1929 Receivership
Newspaper Excerpt
George W. Page, bank commissioner of Maryland, was today appointed receiver for the trust company ... petition stated that ... its reserves ... had become exhausted.
Source
newspapers
3. February 22, 1930 Other
Newspaper Excerpt
Uniting in a vigorous effort to raise the $100,000 pool needed to reopen the Southern Maryland Trust Co., stockholders ... succeeded in having that amount subscribed ... March 10 had been set as the tentative date for the reopening, although ... get authority from the Circuit Court to open the bank sooner if possible.
Source
newspapers
4. March 26, 1930 Reopening
Newspaper Excerpt
the new officers of the company ... completed arrangements for the reopening of the institution's banks here and at Upper Marlboro at 9 o'clock tomorrow morning. (article dated March 25)
Source
newspapers
5. April 4, 1930 Other
Newspaper Excerpt
REOPENED BANKS REACH NORMAL BUSINESS STAGE ... branches now in operation for week ... reopened a week ... had been closed by order of the State bank commissioner last December and remained in the hands of a receiver for three months.
Source
newspapers

Newspaper Articles (9)
1. December 15, 1929 Evening Star Washington, DC
Article from Evening Star, December 15, 1929

Click image to open full size in new tab

Article Text

Feeling Prevails That Depositors Will Not Lose. With the exact financial status of the Southern Maryland Trust Co. still undetermined pending the completion o an examination of the books by the Maryland Banking Commission, the im pression prevailed in Prince Georges County financial circles last night that there would be no loss to depositors. and the reopening of the doors of the bank within a few days loomed as a possibility. The banks of the trust company at Seat Pleasant and Upper Marlboro were ordered closed by the State Banking Commission Friday afternoon. Samue J. Henry. indicted president of the F H Smith Co. was until recently president of the banks. and some securities of the F. H. Smith Co. were found in the Seat Pleasant Bank. the examiner stated. Henry resigned from the bank following his indictment. and the va cancy thus caused was filled by W. J Hayward. former vice president and general manager of the Chesapeake Beach Railroad. Second Official to Resign. Henry was the second official of the institution to resign within a fortnight Hubert T. Plaster, vice president and secretary, having resigned on Novem ber 30. During that period the Prince Georges County commissioners had or dered county funds deposited in the bank removed. This action was taker following the withdrawal of a deposit bond by a bonding company. The possibility of the banks being reopened hinges on negotiations known to be in progress. It was reported a Seat Pleasant last night that severa directors of the Southern Maryland Trust Co. have made overtures with a view to guaranteeing deposits and hav. ing their banks taken over by the East ern Shore Trust Co. The latter con cern has total resources of approximately $20,000,000. and is one of the largest State banking organizations out side of Baltimore. Directors of both institutions would not deny this rumor Depositors to Be Paid. Allen MacCullen, Washington attor ney. who was called to assist in straightening out the affairs of the banks shortly after the resignation o Mr. Plaster. last night issued a forma statement, declaring that all depositor would be paid in full. Mr. MacCullen's statement. given to The Star in response to a request, fol lows: Upon the resignation of Mr Plaster on November 30. the director requested me temporarily to assume charge of the Seat Pleasant and Marl boro banks, for the purpose of straight ening out the affairs of the banks. In the short while that I was there made rather careful survey of the as sets and liabilities of the bank and an satisfied. and have so stated to the banl commissioner. that the bank, in so fa as depositors and creditors are con cerned. is absolutely solvent. "In my opinion, there are more than sufficient good assets in the bank to pay every depositor in full," Mr. Mac Cullen concluded. Receiver to Be Qualified. Commissioner Page is expected to qualify formally as receiver for the banks in Circuit Court a: Marlboro to morrow. Under the Maryland law. h automatically becomes recei when bank is closed, but will go through the formality of qualifying in Princ Georges County. Deputy Commissioner John D. Hos pelhorn was in charge of the institu tions yesterday, directing the work o the examiners and answering the quer ies of persons who visited the Sea Pleasant Bank before the doors were locked at noon. During the morning hours the banl made change as an accommodation to merchants of the community, and this lead to an erroneous rumor that it wa cashing checks. At Seat Pleasant, where the larger o the two banks is located. there was lit tle apprehension among depositors as to the safety of their money. The genera tenor of opinion of the great majority of the citizens seems to be that the bank is fundamentally sound, and ever if it were not the directors are men o such caliber and financial standing that they would be certain to stand behind the institution so as to prevent any loss to depositors. No excitement was apparent yesterday when the news of the bank's closing became widespread Persons came to the bank intermittently all during the day either to deposit money or cash checks, only to find that the bank was no longer doing business. Without ex ception, they accepted the stiuation tranquilly with an air that seemed to reflect confidence that their money was safe. One of these was William Himes principal of the Maryland Park High School who came to deposit $100 of the school's funds. He said there was already $250 belonging to the school in the bank, but he was not worried for its safety. Some of the poorer people suffered considerable inconvenience by the bank's closing. One depositor came to draw money to buy groceries for the week end. "I've only a nickel in my pocket." he ruefully said. "I guess I'l have to buy a smoked fish and drink water to last me till Monday. It's too late to go to Washington for money A storekeeper, who is also a deposito in the bank. summarized the view o the town. This is small community, he said. "We all know the directors ano have confidence in them We know they are financially responsible and will make good any loss, SO why should w worry? Mrs. Mary Carmody. widow of th founder of the trust company and a present the majority stockholder. wa confident that the two banks will soor open their doors again There was even more serenity a Marlboro, although the closing of the bank there which had been quite prosperous, caused a mild sensation through out the county. Many persons of prom inence. business houses and organiza tions were inconvenienced by the closing There was an intermittent stream of depositors calling all day to talk with William H. Brooke, cashier, who known to most of the patrons of the bank by his first name Some reaction was felt by other bank of the town. but most apprehensive depositors were reassured of the staunch position of those institutions after talk ing with their officials. County Policeman Frank Prince and Deputy Sheriff L. E. Dutrow were sta tioned at Seat Pleasant as a precau tionary measure last night. Officers of the bank before recen personnel changes were: S. J. Henry president: Hubert T. Plaster, vice presi dent and secretary W. S. Collins, vic

2. December 16, 1929 Evening Star Washington, DC
Article from Evening Star, December 16, 1929

Click image to open full size in new tab

Article Text

BANK EXAMINATION MAY BE PROLONGED Negotiations Are Under Way for Control of Southern Maryland Trust Co. (Continued From First Page.) again today and a police patrol inaugurated Saturday was kept in force at Seat Pleasant. Hospelhorn said Commissioner Page would visit Marlboro tomorrow. He is expected to qualify as receiver for the bank. Until recently the Southern Maryland Trust Co. was known as "the bank with the largest capital and surplus in Prince Georges County." It had the fourth largest Christmas savings account in the county, consisting of 500 depositors who saved approximately $23,000. It is said a number of the Christmas savings checks have not been cashed.

3. December 17, 1929 Evening Star Washington, DC
Article from Evening Star, December 17, 1929

Click image to open full size in new tab

Article Text

PAGE TAKES CHARGE OF MARYLAND BANK Petition Discloses Trust Company Had Exhausted Required Reserve. Upon filing a petition for appointment of a receiver which stated that a bank examination "disclosed that the Southern Maryland Trust Co. was conducting its business in an unsafe or unauthorized manner, in that its reserves, as required by law, had become exhausted," George W. Page, bank commissioner of Maryland. was today appointed receiver for the trust company at court proceedings at Marlboro, Md. The company until recently was headed by Samuel J. Henry, indicted president of the F. H. Smith Co. The appointment was made by Circuit Court Judge Joseph C. Mattingly, who fixed Page's bond at $200,000, which was immediately furnished by the Maryland Casualty Co. In addition to a petition for appointment of a receiver, Page filed a petition for appointment of counsel, and the court authorized Ogle Marbury to act in that capacity. A writ of subpoena for the officials of the bank was also asked and granted, but no date named as yet for them to appear in court for a hearing. Commissioner Page and Marbury went into conference with State's Attorney J. Frank Parran after returning the orders of the court. Page was in conference with Judge Mattingly and Ogle O. Marbury, attorney for the bank commission, for about an hour. Knows General Status. Page said the work of going over the accounts of the Southern Maryland Trust Co. was not yet completed, but that he knew in a general way the status of the bank. He would give no more definite statement, but declared he "certainly hoped" there would be no loss to depositors. In the event the bank examination reveals any illegal procedure, Page said he was undecided as yet what action would be taken. Negotiations which it is hoped will result in the early opening of the banks of the Southern Maryland Trust Co. at Seat Pleasant and Upper Marlboro through the consolidation of those institutions by other financial houses apparently were taking definite form today. Representatives of some of the banks which are considering taking over the Southern Maryland Trust Co. were in Marlboro today and declared they expected to talk to Commissioner Page. Henry resigned as president of the trust company on December 7. Hubert T. Plaster, vice president of the trust company, had resigned November 30. Between that date and last Friday, when the bank was closed, the Prince Georges County commissioners withdrew their funds from the bank. Deposits Amply Protected. Although the Prince Georges County commissioners withdrew their funds from the Southern Maryland Trust Co. before it was closed last Friday, it was implied in a statement today by County Treasurer R. Ernest Smith that other funds of the county were in the banks when they closed. These, he says, are amply protected by surety bonds. Smith's statement, a very brief one, was that "the taxes collected by these banks and the money deposited in said banks are amply protected by surety bonds." The banks received funds for the county taxes up to the day they were closed. The money which the county commissioners withdrew are said to have been sinking funds.

4. December 19, 1929 Evening Star Washington, DC
Article from Evening Star, December 19, 1929

Click image to open full size in new tab

Article Text

Officers of Trust Company and Bankers' Committee Speed Efforts. STOCKHOLDERS AGREE TO MEET REQUIREMENTS MacCullen, Served With Notice of Receiver Appointment, Is Hopeful for Depositors. Prospects for early reopening of the Marlboro and Seat Pleasant banks of the Southern Maryland Trust Co., which were closed by the Maryland Bank Commission last week, seemed encouraging today. Officials of the company, a committee from another large Maryland banking concern and State Bank Commissioner George W. Page, were at the Seat Pleasant Bank today working toward that end. Stockholders of the trust company, which has offices in both Seat Pleasant and Upper Marlboro. meeting in Community Hall, Seat Pleasant, last night, decided to make every effort to meet requirements of the bank commissioner. who is acting as receiver for the institution. so that its doors may be reopened. The committee from the other banking concern today started studying the financial condition of the trust company with a view to possibly taking over the management. Sure Depositors Will Not Lose. Allen MacCullen, who since early in December has been acting as secretary and general manager for the trust company, said today he knew exactly how things stood there and was sure that depositors would not lose a penny. Possible criminal proceedings as a result of the closing of the bank, expected for several days in Prince Georges County, seemed as distant as ever this morning. The bank was closed last Friday by order of Commissioner Page, who Tuesday was appointed to act as receiver. The petition for appointment of a receiver states that the reserve of the bank had become exhausted. Samuel J. Henry, first president of the F. H. Smith Co., who also was president of the Southern Maryland Trust Co., resigned from the latter position December 7. Hubert T. Plaster, vice president and secretary of the trust company, had resigned November 30. Receiver Notice Served. Notice of the appointment of a receiver for the bank was served on MacCullen yesterday by Deputy Sheriff A. W. Hepburn. The Southern Maryland Trust Co. was organized in 1912 with a capital stock of $25,000. Its Marlboro branch was established in 1920.

5. February 5, 1930 Evening Star Washington, DC
Article from Evening Star, February 5, 1930

Click image to open full size in new tab

Article Text

BANK WILL REOPEN AT SEAT PLEASANT Committee Plans for Operation of Southern Maryland Trust Co. By a Staff Correspondent of The Star. SEAT PLEASANT, Md., February 5. -Plans for reopening of the Southern Maryland Trust Co. under local management took shape last night when a pool committee was appointed at a meeting of stockholders. The plan calls for an arrangement whereby the par value of the shares of stocks will be cut and the cash surplus increased. Stockholders will be asked to pool their holdings and subscribe 50 per cent in addition to the par value of the shares owned by them. It is hoped the pool committee and subcommittees working under it will succeed in raising enough cash within the next few weeks to be able to go before the receiver and have the banks of the institution at Seat Pleasant and Upper Marlboro reopened. The plan for the reopening of the bank was outlined at last night's meeting by Frank Hill, who explained it in detail and answered numerous queries of stockholders and their representatives during the session. It seemed to be the unanimous opinion that the proposal outlined by Mr. Hill was the only way to handle the situation. It was made clear that there is no sort of affiliation with any other bank at this time. George N. Wells, former Prince Georges County commissioner, presided at the meeting. The stockholders pool committee as selected comprises W. Seaton Belt, Dr. Z. M. Brady, A. O. Dille and W. F. Stembler. The Southern Maryland Trust Co. was closed by order of George W. Page, bank commissioner of Maryland, on December 13. Samuel J. Henry, former president of the F. H. Smith Co. and of the trust company, had resigned a few days previous, as did Hubert T. Plaster, secretary of the trust company. Frozen assets was given as the reason for the action, some of these assets consisting of F. H. Smith Co. paper. Commissioner Page was subsequently appointed receiver for the institution which has since been under the orders of the Circuit Court. Deposits of the institution consist of about $800,000, and if the plan proposed at last night's meeting is successful all depositors will be paid in full.

6. February 22, 1930 Evening Star Washington, DC
Article from Evening Star, February 22, 1930

Click image to open full size in new tab

Article Text

BIG POOL RAISED TO REOPEN BANK them March 10 Set as Tentative Date Southern Maryland Trust Will Open. By a Staff Correspondent of The Star. SEAT PLEASANT, Md., February 22. -Uniting in a vigorous effort to raise the $100,000 pool needed to reopen the Southern Maryland Trust Co., stockholders of the institution succeeded in having that amount subscribed at a largely attended mass meeting in Community Hall last night. As a result it was announced today that March 10 had been set as the tentative date for the reopening, although every effort will be made to collect the money subscribed and get authority from the Circuit Court to open the bank sooner if possible. Announcement was also made that in raising the $100,000 the stock owned by former F. H. Smith Co. officials connected with the loink had been pooled and absorbed locally, so that they have no further connection with the institution. Also, it was pointed out that with few exceptions all the stock of the trust company is now owned in Prince Georges County. While it is a matter upon which the stockholders will have to vote, it appeared to be the general opinion at the meeting that A. O. Dille, for the past 30 years manager of the Union Stock Yards at Benning, D. C., who has lived in Prince Georges County, managed a large farm near Marlboro and is well acquainted locally, would be chosen president of the institution. At the outset of the meeting Frank Hill of Marlboro, reporting for the stockholders' pool committee formed at a mass meeting two weeks ago, declared about 65 per cent -of the amount required had been raised since, and it was the problem of the meeting to raise the remaining 35 per cent. This was accomplished in about two hours, many of the stockholders making their subscriptions in cash. In addition to Hill. speakers at the meeting included L. S. Perkins, George N. Wells, former Prince Georges County commissioner, who presided, and Allen MacCullen, secretary and general manager of the company. In spite of the fact that today is a legal holiday and banks throughout Maryland are closed MacCullen plans to visit Baltimore to see George W. Page, bank commissioner, and receiver for the institution, to immediately inaugurate arrangements for the reopening. The banks of the trust company at Seat Pleasant and Upper Marlboro have been closed since December 13. Samuel J. Henry, former president of the F. H. Smith Co., was president of the institution until a few days before it went in the hands of the receiver because of frozen assets.

7. February 28, 1930 Evening Star Washington, DC
Article from Evening Star, February 28, 1930

Click image to open full size in new tab

Article Text

JUDGE AUTHORIZES BANK'S REOPENING Petition in Receivership of Southern Maryland Institution Granted. By a Staff Correspondent of The Star. UPPER MARLBORO, Md., February 28.-Granting a petition of Ogle Marbury, attorney for George W. Page, bank commissioner of Maryland and receiver for the Southern Maryland Trust Co., Circuit Court Judge Joseph C. Mattingly yesterday signed an order authorizing the carrying out of a plan for reopening of the institution. In the event no unforeseen obstacles arise the banks of the trust company at Seat Pleasant and Upper Marlboro, which have been closed since December 13, will reopen about March 15. According to John D. Hospelhorn, deputy bank commissioner, only one other Maryland bank has succeeded in reorganizing and reopening after being placed in the hands of a receiver. This was the bank of Stevensville in Kent County on the Eastern Shore which was reopened in 1920. The character and financial responsibility of the stockholders and directors of the Southern Maryland Trust Co. under the reorganization effected during the past few weeks was a large factor in influencing officials to approve the plan they have worked out for its reopening, it was said. The chief features of the plan call for the reduction of the capital stock from $200,000 at $100 a share to $150,000 at $25 a share; the creation of a special reserve fund of $50,000, and contribution by the stockholders of $100,000 in cash and an adjustment with the F. H. Smith Co. whereby certain obligations of former officials of that company will be removed from the bank. The petition filed yesterday shows details of the plan, reveals the conditions found in the bank when taken over by the receiver and declares that when the plan is carried out the bank commissioner believes the amount in cash on hand "will be amply sufficient to protect the trust company from any withdrawals immediately after reopening."

8. March 25, 1930 Evening Star Washington, DC
Article from Evening Star, March 25, 1930

Click image to open full size in new tab

Article Text

READY TO REOPEN BANKS TOMORROW Southern Maryland Trust Co. Authorized to Resume Business. BY GEORGE PORTER, Staff Correspondent of The Star. SEAT PLEASANT, Md., March 25.Having been given the management of the Southern Maryland Trust Co. yesterday afternoon when the receivership was dissolved, the new officers of the company today completed arrangements for the reopening of the institution's banks here and at Upper Marlboro at 9 o'clock tomorrow morning. Although the day is a legal holiday and the banks of the State are closed in observance of Maryland day, employes and officials of the trust company worked with a will this morning, for the goal they have sought through many days of tribulation was realized. Notices Replaced. A small but highly important occurrence in connection with the reopening, and one which gave the trust company's management a great deal of pleasure, was the removal yesterday afternoon of the notices to the effect that the bank was operating under the bank commissioner, which have been posted on the doors ever since December 13. In their place were posted typewritten notices that the bank would resume business. Announcement that the bank would be reopened tomorrow, carried exclusively in The Sunday Star, came as welcome news to the residents of Prince Georges County. The fact that the officials and stockholders have been able to secure the permission of the Circuit Court and the bank commissioner of Maryland to reopen is seen by county officials as evidence of their earnestness, good faith and business acumen, which should justify public confidence. With a reasonable amount of co-operation from the public it is believed that the banks of the institution, both of which are well located, will quickly become re-established on a paying basis. Court Order Saturday. Ogle Marbury, special counsel for George W. Page, bank commissioner of Maryland, who has been acting as receiver for the institution, secured a

9. April 4, 1930 Evening Star Washington, DC
Article from Evening Star, April 4, 1930

Click image to open full size in new tab

Article Text

REOPENED BANKS REACH NORMAL BUSINESS STAGE Southern Maryland Trust Co. Branches Now in Operation for Week. pecial Dispatch to The Star. SEAT PLEASANT, Md., April 4.Business at the banks of the Southern Maryland Trust Co., here and at Upper Marlboro, which now have been reopened a week, was reported as havang about reached its normal state by Allen MacCullen, secretary, today. The banks were closed by order of the State bank commissioner last December and remained in the hands of a receiver for three months.