Casco Bank - Portland, ME

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: March 1, 1933*
Location: Portland, Maine (43.661, -70.255)

Metadata

Model: gpt-5-mini
Short Digest: d05bd528

Response Measures

None

Description

Article (Portland Press Herald, 1933-04-27) discusses court proceedings over a reorganization plan for Casco Bank after the banking holiday/closure. It describes plans to restore portions of deposits, sale of preferred stock, conservator Verrill, and prospects for reopening. The text contains OCR errors; I corrected obvious typos but did not invent facts. No discrete run (mass withdrawals triggered by a rumor) is explicitly described, so this is classified as a suspension with plans to reopen.

Events (2)

1. March 1, 1933* Suspension

Cause: Government Action
Cause Details: Closed during the 1933 bank holiday and placed under a conservator (reference to conservator Verrill and court reorganization proceedings).
Newspaper Excerpt: Now that on the Justice do you know from the bank in 16 months prior to the banking have heard of the bank was Mr. Chapman... and repeated references to bank holiday and conservator Verrill
Source: newspapers

2. April 27, 1933 Other

Newspaper Excerpt: The court inquired ... proposed plan to restore 25 per cent of the savings deposits ... sale of preferred stock ... the reorganized bank to open with half million dollars cash; testimony of Chapman and conservator Verrill was heard at the hearing April 27, 1933 (article date).
Source: newspapers

Newspaper Articles (1)

1. April 27, 1933 Portland Press Herald Portland, ME

Article from Portland Press Herald, April 27, 1933

Click image to open full size in new tab

Article Text

months, providing new deposits were you placed in the in new came ourt would be the which would release the security for tice replied the 000 in assets behind the If deposits come court would from surplus from Mr. Chapman The court inquired the detake stock they plan Mr. Chapman said they Justice pointed out that they were deficit in act but that the in "didn't any difference.' Mr. Chapman the the bank were was of market value which added that one issue of bonds held do by the doubled in value Tuesday and of 50 per on accounts 75 per cent on accounts had been worked out. that your inquired the would say liberal as opposed to liquidation, Mr. Chapman so. talking about your plan tal would the recovery be 50 and 75 per and the witness anThe wanted know how and did the be 100 per cent on savings dewith "slightly remote" that the depositors, make full Justice Sturgis asked the witness be arrived these Mr said he as basis the six the future no one There among assets of the bank, he and these asets ,with proving might in value the the "Then that the bank held the securities and the for market would to pay 100 per cent the court the bank has the has followed the market and the in value.' Mr. Testifies To Loan Under the Chapman the cantile owed the was secured collateral that and that $450,000 was owed Boston bank with amount Before the reorganized was opened, he he that the Boston bank loan would you get this money?" the court replying he that the about in cash in the and deposit in out the Boston loan. he nearly $1,000,000 The ratio of cash to both Mr. per cent and the bank could open with half mildollars cash. The wanted to know the basis for this witness that of the allow on on loan to be paid the The possible from of stock holdnot but that already had that the might reach although the holding prevent all but 000 of this of cent for savings accounts, Under the assets would to be to cover the stored 25 the savings As total savings deposits of the Casco total roughly he reduction of the segregated assets from figure 000 of 000 which ed Mr. Chapman could be the market or used in up per do explain Boston and New York bank were covered by double their amount in security? Justice Sturgis wasn't concerned in those transChapman The he that most of the become to preferred before the into effect. said several hundred tentative stock been to more than In estimating the probable of the at Mr. he the $230,000 for Asks Concerning Control The Judge that the proposed to control of the bank depositors who subscribed ferred stock then asked Chapman not that true the at present of which held by the Shares CorMr. Chapman agreed to the of shares, the court asked how bank would is replied for the court give going do with the Sturgis Mr. Chapman can answer that better than replied. court to know what your plan the JusSturgis Mr. Chapman he outnumber and so would the the voting power Chapagreed such was his expectaTo make plan Mr. or to majority depositors he out in or three lion would be hope that are not Sturgis he resented were skeptical the the question Chapman any depositor attorney who desired his had to propose wished develop the merits or dethe Casco Plan. He asked Mr. the plan on the = was believed all liquidation would Chapman agreed that restor. ation of 25 require the far of this had been plained. to stock, Mr. Sanborn asked if release yearly the replied that was the Mr. to stock were not make plans for Mr. Chapman that same assets would which would force the loans?" queried Mr. Sanborn. wouldn't say would be any great replied adding that plan called for lease the held security the loan. The again asked the ness how he proposed the in assets the loan, from on new from release regated savings from on capital from divon trust posits in which have come Left With Bank Again Mr. pointed that had left with the yet the only had half million in cash March about "Do you for the same fidence the as Justice the Mr. Chap- 20 man and the depositors derstand cent they would feel conthey didn't feel the The the deposits the bank holiday subject to full mediate As Sanborn up the questioning said he believed millions in some in far from the depositors in would come into asked for other assume their chance banks than see any of cooperation from these Sanborn great to reopen the banks, Mr Chapman answered. "They have been closed eight the plan nates in favor the stockholder and against the holders of the attorney conMr. replied that the subof and the taking of was the effect of the plan is AP fluence the taking of stock, isn't Mr. Sanborn "It would be Chapman. Mr. to know if the final 25 under the by might be used payment of debts to the bank. replied that it was in the what item of in estimated for bank cluded. Chapman Mr. Sanborn then inquired the plan of branches. Mr. Chapman replied Mr Chapman said he the city not absolutely be that the different towns until they separate Justice then took the the Casco on an pense in Insists on Answer. times the court asked Chapman plan of the time the witness started that irresponsive to the going to said the court the the anticipate of will replied think have an answer Sturgis observed. After Mr. Sanborn had from Mr. the that salaries last employes year totalled rental the Chapman expected total annual expense the reorganized bank to in the estimated budget. Mr. asserted that he the he knew what cost to that He the budget prepared on estiof expense boom years and that done. Mr. Chapman salaries under new budget would cuts?" don't know they Chapman suppose they been cut from gave the for the salthe me particular inforyour plan contemplate paycreditors the Mr. next inquired. hinting the cooperate with the attitude would to cooperate with depositors possibly taking of the real value and the rest and of On he believed Middle Street was owned by the he was by Mr. Sanborn the bank Street yearly that even such move were would be necessary maintain uptown. Other found upsee that the was vided of depositors to subscribe to stock be made in so that be vided him for The avoid newspaper advertising Sturgis remarked. Connolly Says No Compensation In opening Plan Mr Connolly said he for but that wanted to get the plan before the the outset of Mr. Chapman said the Plan the than his but he was much in worked Mr. Connolly had the Mr. said the act the basis and in the report of servator Verrill to the effect that larger could expected through reorganization than Mr. Chapman had selfish in the witness replying he of with $100,000 deposit the and as building in bank in the Chapman he continued. "bebegan of the 25,000 had with me for years in the had been go the Merthey had been left the when left the bank ago. than else fired the dread tht to the community the were rather than the bank He denied he had any ambitions to be of reorganized He explained that he felt in times like without intending to flect on anyone. that the bank should be by banker, rather than promoter or to restore 25 per the savings deposits to be paid of Mr. Connolly asked. has been with witness would be much better but in ference with was necessary and On inquiry by the Mr. Chapman plan proposed free 25 of the cent limited cent of He he that would require 000 pay tors on this and pay per cent of 25 cent of total savMr. Chapman testified. would months to make the Had $10,000,000 In Savings The volunteered that ings accounts were often they only for He pointthat the time holiday was in savings in the Casco with but in the "Now that on the Justice "do you know from the bank in 16 months prior to the banking have heard of the bank was Mr. Chapman Asked how the plan proposed to provide cover the the witness replied that division had worked out on the basis conservator's estimate that 66 cent savings deposits and posits on the sound assets of the have you made for claims interjected Justice to out,' Mr. Chapman replied. States Attitude On Loan In permission borrow the C., servator Verrill said interestonly in to and no interest merger. Withhe be possible to release cent savings deposits and that only undue pressing of could more than cent every four to six weeks be The Mr. Verrill with the half million in the provide of 20 cent to savings deposi- and not less than 10 per cent depositors. The presented by Thompson, firms, restore half of the or to the leave of an total of in sound assets. The plan to be dependent on sale of preferred stock. depositors would allowed exchange for interest first preferred The plan to 100 per cent for and marof per cent in sound assets 116 per cent in uncertain assets security for restored contemplates no loans The plan of deposits in making but propose leases of as rapidly of plan believe The safe that such would merit the support of departial = will be hands having the interests of of at who will liquidate depositors the best most successful in At the meeting of Governing Board Sigma Upsilon Wednesday evening with William Baldwin Morning Louis Frieday presided. Plans made for forming new chapters and for dance in May.