Article Text
Maine State Bank Suspends. BATH, Me., October 28.-The Bath Trust Company, a small bank controlled by Charles W. Morse of New York, closed its doors today as the result of withdraw-
8653. Bath Trust Company (Bath, ME)
Bank Information
- Episode Type
- Run → Suspension → Reopening
- Bank Type
- trust company
- Start Date
- October 28, 1907
- Location
- Bath, Maine (43.911, -69.821)
Metadata
- Model
- gpt-5-mini
- Short Digest
9da81005
Response Measures
Full suspension, Books examined
Other: Suspension was triggered by mass withdrawals and lack of currency; state bank examiner took charge.
Description
Multiple contemporary articles report a run on Oct 28–29, 1907 that forced the Bath Trust Company to close/suspend temporarily; State Bank Examiner W. D. Skelton (Shelton in one OCR) took charge. The institution is repeatedly described as solvent and it resumed business Dec 9, 1907. Cause of the run/suspension is the wider New York financial panic and panic spirit locally tied to Charles W. Morse's connections, so classified as macro_news. Minor OCR variants of examiner name (Skelton/Shelton) and president Mussenden/Maussendon noted in source texts.
Events (3)
1.
October 28, 1907
Run
- Cause
- Macro News
- Cause Details
- Run precipitated by panic and withdrawals tied to the New York financial turmoil and public alarm over Charles W. Morse's connections.
- Measures
- State Bank Examiner W. D. Skelton immediately took charge; bank closed its doors and suspended payments temporarily.
- Newspaper Excerpt
- A run on the Bath Trust Company forced the institution to close its doors today.
- Source
- newspapers
2.
October 28, 1907
Suspension
- Cause
- Macro News
- Cause Details
- Suspension resulted from heavy withdrawals tied to the national financial upheaval and panic over Morse's affairs rather than insolvency; officials stated lack of currency forced temporary closure and that the institution was solvent.
- Newspaper Excerpt
- The Bath Trust Company ... closed its doors today as the result of withdrawal of deposits. W. B. Skelton, State Bank Examiner, immediately took charge.
- Source
- newspapers
3.
December 9, 1907
Reopening
- Newspaper Excerpt
- The Bath Trust Company ... resumed business to-day after a suspension of several weeks.
- Source
- newspapers
Newspaper Articles (20)
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# The Financial Situation. New York, Oct. 28.-New York banks continued on an increasing scale the use of clearing house certificates today as authorized at a session of the clearing house association Saturday. So far as the public is concerned the certificates do not figure at all. They are used merely to settle clearing house debits. They will prevent the tieing up of large sums, however, and practically remove all possibility of the crippling of financial institutions by preventing the cutting off of cash needed to meet withdrawals. Most of the trust companies also resorted to the payment of depositors with certified checks on clearing house banks in preference to releasing currency. The crowds about the banks and trust companies on which there were heavy runs last week had dwindled to mere handfuls early today. At several institutions the bank watchmen opened the doors long before the regular opening hour that the waiting patrons might find shelter in the lobbies from the storm. Secretary of the Treasury Cortelyou sent word from Washington that he considered the situation so well in hand that he will not return to New York. State Superintendent of Banks Williams announced last night that several State banks which closed their doors under the pressure of withdrawals asked permission to reopen. He did not say what answer will be returned. The pool formed last week and headed by J. Pierpont Morgan, which raised about $25,000,000, and loaned it on the stock exchange, was dissolved today as it is not believed that such action is now needed. Bank presidents believe that all the call money needed in the transaction of business now may not be obtained by brokers through their regular banks. Chicago, Oct. 28. -Chicago banks opened today with no indication of anything resulting from the announcement yesterday that clearing house certificates would be used in the transaction of business. Before the doors opened there were quite a few heads of smaller business houses waiting to learn what method would be followed, but there was no indication or intention to withdraw accounts. Assistant Chief Schuettler had 100 plain clothes men in reserve for use at the banks, but it was found that there was no necessity for their presence, so only 11 men were used more than the ordinary detail. All the banks announced that regular customers and positively identified checks would be accomodated with cash and that business houses would have no trouble in getting currency to meet their pay rolls and other business necessities. St. Louis, Oct. 28-One hundred policemen were assigned to duty around the banks and trust companies of the city this morning to prevent any crush which might follow the announcement that 30 to 60 days' notice is necessary to withdraw savings funds. Pittsburg, Oct. 28-The Board of Directors of the Pittsburg stock exchange this forenoon decided to remain closed today. Secretary Charles J. Holman stated to the United Press that there was no official announcement of the action to be made other than the board considered it best to remain closed in view of the troublous condition of monetary affairs in New York. Cleveland, O., Oct. 28. The Cleveland Clearing House Association has decided to issue clearing house certificates, if such action is found necessary. At the suggestion of the association the Savings Banks and Trust Companies today put into effect the time notice clause on all withdrawals of savings accounts over $50. Checking accounts are not involved. Cincinnati, O., Oct. 28. The following statement was issued by Cincinnati bankers after a conference: "In the interests of depositors and the public and as a basis of immediate general assistance, the Clearing House resolved to issue Clearing House certificates, and also resolved that all banks of this city, whether state or national, having savings accounts, exercise their right to decline to honor withdrawals on savings accounts. Bath, Me., Oct. 28. A run on the Bath Trust Company forced the institution to close its doors today. Its paid-up capital is $100,000 and its deposits are estimated at $540,000. Chicago, Oct. 8.-A run has started on the Hibernian Bank. There are more than 200 people in line and the line extends out into the street. Most of the anxious ones are women. The Hibernian has been regarded as the strongest State institution in Chicago.
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Maine Bank Closes. BATH, Me., Oct. 28.-A run on the Bath Trust company this afternoon forced It to close Its doors. It has deposits of $500,000, and capItal of $100,000.
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A Morse Bank Closed Bath, Me., Oct. 28.-The Bath Trust company, a small bank with deposits or about $500,000 and controlled by Charles W. Morse of New York, closed its doors today as the result of a run of depositors. State Bank Examiner W. D. Skelton immediately took charge of the affairs. President W. B. Maussendon stated that the institution is perfectly solvent; that its suspension of business temporarily is due to lack of currency and that no one will lose a cent because of it. The company was organized Oct. 23, 1902, with a capital of $100,000. Mr. Morse obtained enough stock to give him control of the institution a year ago last March. Since the financial difficulties started in New York during which Mr. Morse retired from the directorate of several New York banks, people have been drawing their money in small amounts from the trust company, but the situation did not assume the proportions of a run. The bank opened as usual this morning and began to respond to the demands of a score or more of depositors who were waiting. After 20 minutes it was decided to close the doors temporarily, and the announcement was made that the officials were unable to obtai nenough currency. President Mussendon, after emphasizing the soundness of the bank, complained that the difficulty was brought about entirely by the lack of currency and the scare produced by conditions in New York. According to the last Maine bank report the company's liabilities amounted to $665,822, of which amount $129,692 was owing to savings depositors, $223,088 to demand depositors and $171,000 on time and demand certificates. The assets included $447,625 in loans and discount, $125,638 in bonds and $25,682 cash on hand.
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winter quarters. The Bath Trust Co., a small bank with deposits of about $500,000 and controiled by Charles W. Morse of New York, closed its doors Monday as the result of a run of depositors. State Bank Examiner W. B. Skelton immediately tok chare of the bank's affairs. President W. B. Mussenden stated that the institution is perfectly solvent, that its suspension of business temporarily is due to tack of currency and that no one will lose a cent because of it. The company was organized Oct. 23, 1902, with a capital stock of $100,000 and Mr. Morse obtained stock which gave him a controlling interest a year ago last March.
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A Trust Company Suspends Payment. Bath, Me., Oct. 29.-The Bath Trust Co., a small bank controlled by C. W. Morse, of New York, closed its doors Monday as the result of withdrawal of deposits. President Maussendon stated that the suspension of business was due to lack of currency. The capital is $200,000 and deposits $500,000.
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CLOSED MAINE BANK AS RESULT OF RUN The Eath Trust Company Declared to Be Perfectly Solvent, Was Con nected With Charles L. Morse of New York. Bath, Maine, Oct. 29.-The Bath Trust Co., a small bank with deposits of about half a million dollars and controlled by Charles L. Morse of New York, closed its doors yesterday as the result of a run of depositors. State Pank Examiner W. D. Skelton immediately took charge of the bank's affairs. President W. B. Maussendon stated the institution is perfectly solvent that its suspension of business temporarily is due to a lack of currency and that no one will lose a cent. State Bank Examiner Skelton said last night that he would probably be unable to complete the examination of the trust company's condition before Wednesday. Until the examination is completed, he said, he could give no idea of what his recommendation in the ezee would be. Depositors in other Bath institutions made no unusual demands for money yesterday.
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BATH TRUST COMPANY SUSPENDS. Maine Institution Controlled by Charles W. Morse Ceases Operations. Bath, Me., Oct. 28.-The Bath Trust Company, a small bank controlled by Charles W. Morse, of New York, closed its doors to-day as the result of the withdrawal of deposits. W. B. Skelton, State Bank Examiner, immediately took charge. The company was organized October 23, 1902, with a capital of $100,000. Mr. Morse obtained enough stock to give him control a year ago last March. President W. B. Mussenden declares the company Is perfectly solvent and that its trouble is due entirely to lack of currency. According to the last Maine bank report the company's liabilities amounted to $665,822. of which amount $129,692 was owing to savings depositors, $223,088 to demand depositors and $171,000 on time and demand certificates. The assets included $447.625 in loans and discount, $125,638 in bonds and $25,682 cash on hand. Following the suspension of payments by the trust company, the Lincoln National Bank, in which Mr. Morse also holds a controlling interest, announced that thirty days' notice of the withdrawal of deposits, as provided by law, would be required on all demands for more than $100.
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KITTERY TO CARIBOU. The saw-mill of A B. Bates & Co., at Oakland, was burned last Wednesday. Loss, $6,000; insurance, $3,500. Alexander K. Weatherbee, a well-known resident and ship carpenter of Brewer, died Sunday, aged fifty-five years. Harry, aged four years, son of James McDonough, of Houlton, while stealing a ride on a loaded team wagon last Wednesday, fell under the wheels and was killed. The four-masted schooner, Dean E. Brown, built for the lumber trade for the Benedict-Manson Marine Co., of New Haven, was launched last Wednesday from the yard of Cobb, Butler & Co., at Rockland. The schooner is 207 feet over all, and of 719 tons gross. In the trial of Wallace G. Everett at South Paris, the jury disagreed after being out twenty-five hours. Everett was charged with the murder of Edgar L. Radcliffe at the Crockett Hill mine, on June 13, last, placing the body in the dynamite house and blowing it up to conceal the crime. Fire in Loveitt's field, a summer colony at South Portland, Friday burned the new Chase house; a summer boarding house and four cottages, owned by E. E. Brewer, Mrs. B. B. Farnsworth and L. B. Dennett, of Portland, and Dr. Houston, of Northampton, Mass. The total loss is estimated at $27,000. Three Italians were killed Saturday near East Millinocket when an engine and eleven flat cars loaded with sand were overturned and submerged by the washing out of the foundation of a trestle on the Schoodic railroad now being built. A dozen Italians were thrown into the water. One was drowned, and two were buried beneath the sand. The Bath Trust Co., a small bank with deposits of about $500,000, and controlled by Charles W. Morse, of New York, closed its doors Monday as the result of a run of depositors. State Bank Examiner W. B. Skelton immediately took charge of the bank's affairs. President W. B. Mussenden stated that the institution is perfectly solvent, that its suspending of business temporarily is due to lack of currency that no one will lose a cent because of it. Wallace E. Berry died Sunday at his home in Winthrop. Mr. Berry had been in the employ of the commission of inland fisheries and game about twenty years. He was formerly in charge of the Monmouth fish hatchery and the Carleton brook hatchery and feeding station, and for four years past had been general superintendent of the fish hatcheries of the State. He was one of the foremost fish culturists in Maine. The Palmer house at Patten, owned by the G. L. Foss Co., and the residence and millinery store of S. C. Leslie were burned Friday. The total loss is $18,000, partially covered by insurance. The whole basement of the hotel was ablaze when the fire was discovered, and some difficulty was experienced by the fifty sleeping people in getting out. All escaped safely. None of the furniture was saved. A large barn connected with the hotel also was burned. Angus Grant, formerly of Bangor, was shot and instantly killed at Millinocket Sunday afternoon by an unknown Italian, who escaped into the woods. Grant, with three companions, one of whom was the unknown Italian, called at Fred Peluso's place in "Little Italy". The Italian volunteered to get some beer, and left the house to go for it. Grant and the others were following him when he turned on them and asked what they were following him for. A quarrel followed, and the Italian drew a revolver and fired, killing Grant instantly.
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As one of the results of the financial upheaval in New York, each of the Morse Steamship Companies will return to its old management before the combine was made. The only bank in Maine seriously affected is the Bath Trust Company, a small bank controlled by C. W. Morse. This is only suspended temporarily, and no one will lose a cent by it. The Banks of Maine are on a sound and substantial basis.
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Bath Trust Company Closes Bath, Me., Oct. 29.-A run started on the Bath Trust company of this city forced the institution to close. Its paid-up capital is $100,000 and its deposits are estimated at $540,000. State Bank Examiner Shelton says that he will be unable to complete the examination of the bank's condition probably before Wednesday.
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Bath, Maine, Bank Suspends. Because of the withdrawal of deposits, the Bath Trust Company, at Bath, Me., controlled by Charles W. Morse, suspended operations.
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The Recent Panic Spirit. The Bath Trust company, which was forced to suspend business for a short time as the result of a run caused by the panicky feeling aroused in Bath people by the New York financial situation, is declared by the State bank examiner to be in a sound condition with assets sufficient to meet every obligation and will at once resume business again. This is what was expected, and it is a pity that Bath gave way to the panic spirit sufficiently to embarrass the institution. Any bank can be put in a very uncomfortable plight if a great part of its depositors rush in at the same time and demand their money. There is no question that our Maine banks are all perfectly sound and the savings of the people are infinitely safer in their keeping than when taken out and hoarded at home. Happily the panie spirit is no longer in the am but it is very fortunate, both for the banks and for the depositors. that the Bath experience was not duplicated elsewhere. Runs on banks are often caused by the merest and most absurd rumors, by intangible and untraceable whisperings in the air, and those who are stampeded by them and who rush to the bank for their money are sure to be ashamed of themselves later. By losing their heads they not only injure themselves by losing the interest on the money which they withdraw, but they also injure the safe and legitimate business of the community. It is fortunate that no other city than Bath had this unpleasant experience during the brief and unnecessary period of financial unrest from which the country is now recovering.
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PLANS TO SAVE UNION TRUST CO. which could be converted into cash at Plans for saving the Union Trust comdifferent dates. pany from the long and tedious processes "If the right men can be secured to supof liquidation were so far advanced toport a reorganization plan it will be a day that it was stated that application big aid to business in general in this city." will be made to Presiding Justice SweetFORT PITT NATIONAL BANK land in the superior court to-morrow to CLOSES. continue the temporary receivership for Pittsburg, Dec. 6.-The Fort Pitt national bank of this city failed to open a time, in order that the best possible for business today. means of protecting the interests of deThe following notice appeared on the positors and stockholders alike may be door of the institution: "Closed by order of the comptroller of perfected. the currency/ Some of the most solid citizens of the "JOHN D. CUNNINGHAM community, men whose names are high "Examiner." in the financial world, are co-operating to The report of the condition of the Fort Pitt national bank at the close of busithe end that everything possible may be ness Dec. 3, 1907, made in response to done to conserve the resources of the inthe call of the comptroller of the curstitution. Conferences are being held rency, showed total resources of over $5,522,000. daily and the tentative plan to which President Andrew Herron of the bank Senator Rathbone Gardner, one of the said: "The depositors are fully protectco-receivers, refers in a published stateed. The suspension was precipitated by ment, has received the sanction of quite occurrences of yesterday. which made it necessary to close the bank for the proa number of the heaviest depositors. tection of all concerned." Whether the bank will or can be reThe suspension had no apparent effect opened within a few days, or weeks, is upon other local institutions. BATH TRUST CO. TO REOPEN. likely to depend upon the character of Bath, Me., Dec. 6.-The Bath Trust assurances received from responsible percompany, which closed its doors on Oct. sons interested in the project. 28 because of the withdrawal of deposits One plan being considered provides for following the banking difficulties in New York city, will resume business Monday the quicker release of the deposits under morning. Announcement to this effect some form of trustship than would be poswas made today by President William B. sible under liquidation, embodying the isMussenden. The stock held by Charles suing of certificates of indebtedness, to W. Morse, who had a controlling intermature at stated intervals and also for est in the institution. is now owned by the quick release of the major part of the 50 Bath people and the prospects for the smaller deposits. This plan would infuture of the bank under entirely local voive the placing of the stock in a voting management are considered bright. trust, thus eliminating the old manageKANSAS CITY CRISIS OVER. ment. Kansas City, Mo., Dec. 6.-There was A creditors' committee plan to reopen no evidence of a run on any of the local the bank has been submitted to several banks early today. Bank officials said bankers and manufacturers for examinathat the crisis resulting from the failure tion. It involves a new board of control, yesterday of the National Bank of Commerce was over and that normal condiadditional capital and the agreement of tions would soon exist again. Many devirtually all the big depositors to await a positors of the Commerce were reasreadjustment of the bank's business. sured by the declarations of officials of One of those most deeply interested in that institution that It would not only the reorganization plan says: pay depositors in full but that stockhold"There cannot be hasty action in this ers also would lose nothing. James T. matter, and we must all have time to diBradley, the receiver, had no statement gest the proposals that may be made. to make this morning. "It will be a good thing for the busi-
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BATH TRUST COMPANY RESUMES. Bath, Me., Dec. 9.-The Bath Trust Company, at one time controlled by Charles W. Morse, the steamship man, resumed business to-day after a suspension of several weeks. At the time of the financial trouble, in the latter part of October, the company closed its doors in order that the depositors and stockholders might be protected.
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Bath Trust Co. Resumes Business. Bath, Me., Dec. 9.-The Bath Trust Co., at one time controlled by C. W. Morse, the steamship man, resumed business today after a suspension of several weeks. During the financial trouble in the later part of October the Bath Trust Co. closed its doors, in order that the depositors and stockholders might be protected. Throughout the day considerable business was transacted at the institution.
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Trust Company Resumes. Bath, Me., Dec. 9.- The Bath Trust company, at one time controlled by Charles W. Morse, resumed business today after a suspension of several weeks.
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WILL RESUME BUSINESS. (By Associated Press.) BATH, Maine, Dec. 9.-The Bath Trust Company resumed business today, after a suspension of several weeks.
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BUSINESS RESUMED. Bath, Me., Dec. 9.-The Bath Trust company, at one time controlled by Charles W. Morse, resumed business today after a suspension of several weeks.
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Trust Company Resumes. The Bath, Me., Trust company, at one time controlled by Charles W. Morse, resumed business after a suspension of several weeks.