8842. Lincoln County Trust Company (Wiscasset, ME)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
March 14, 1923
Location
Wiscasset, Maine (44.003, -69.666)

Metadata

Model
gpt-5-mini
Short Digest
89371817

Response Measures

None

Description

The bank was enjoined from receiving deposits and transferring assets by a court restraining order (Mar 14, 1923), and a receiver was appointed at the end of March 1923. No run is described in the articles. Article 4 mentions the bank was closed on Dec. 14 last (likely an OCR/date inconsistency); primary contemporaneous reports indicate the restraining order was issued March 14, 1923 and receivers were appointed March 29-30, 1923. Insolvency is attributed to depreciation of securities and failure of a Boston investment house (Burgess, Lang & Co.).

Events (2)
1. March 14, 1923 Suspension
Cause
Government Action
Cause Details
State Bank Commissioner petitioned and Chief Justice issued a temporary restraining order pending hearing for appointment of a receiver; commissioner alleged insolvency due to depreciation of certain securities tied to Burgess, Lang & Co.
Newspaper Excerpt
An order temporarily restraining the Lincoln County Trust Co. of Wiscasset from receiving deposits, paying out moneys or selling or otherwise transferring any of its assets, was issued today by Chief Justice Cornish of the supreme court of Maine.
Source
newspapers
2. March 30, 1923 Receivership
Newspaper Excerpt
Chief Justice Leslie C. Cornish of the supreme judicial court yesterday afternoon appointed W. C. Day of Wiscasset and Walter S. Glidden of Bath as receivers and William D. Patterson as master of the Lincoln County Trust Company. ... The Lincoln County Trust Company was closed on Dec. 14 last by order of Bank Commissioner Fred F. Lawrence. The failure of a Boston investment house was responsible for the suspension of the Wiscasset Bank. (Daily Kennebec Journal, Mar. 30, 1923).
Source
newspapers

Newspaper Articles (6)
1. March 14, 1923 New Britain Herald New Britain, CT
Article from New Britain Herald, March 14, 1923

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Article Text

BANK PARTLY CLOSED. That Is, For Time Being Maine Institution Cannot Take Deposits Augusta, Me., March 14.-An order temporarily restraining the Lincoln County Trust Co. of Wiscasset from receiving deposits, paying out moneys cr selling or otherwise transferring any of its assets, was issued today by Chief Justice Cornish of the supreme court of Maine. The action was taken on application of State Bank Commissioner Lawrence pending a hearing on March 29 on the question of the appointment of a receiver.

2. March 15, 1923 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, March 15, 1923

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Article Text

On application of Bank Commissioner, Fred F. Lawrence, Chief Justice Cornish on Wednesday issued a restraining order under which the Lincoln County Trust Company, doing business at Wiscasset, Me., was temporarily enjoined, pending a hearing for the appointment of a receiver which will be held at the court house in Augusta on Thursday, Mar. 29, from receiving deposits, paying out moneys or selling or otherwise transferrnig any of its assets. The commissioner's petition for liquidation, upon which the restraining order is based, alleges that the trust company is insolvent and that its condition is such as to render further proceedings hazardous to the public and to those having funds in its custody. The commissioner made the following statement with reference to the closing of the bank: "Depreciation in the value of certain securities of the Lincoln County Trust company has reached a point where, in my opinion, it cannot in justice to the public be allowed to continue business. The closing of this institution in no way involves, directly or indirectly, any other banking institution, but results wholly from unfortunate investment policies. The majority of the stock of the bank is owned by the investment house of Burgess, Lang & Co., of Boston, Mass., whose affairs were recently placed in the hands of receivers largely on account of their holdings of the same securities which have impaired the standing of the Lincoln County Trust company. The failure of this house has also operated to deprive the depositors of the 'added protection of the stockholders' liability so far as a majority I of the stock is concerned. Efforts to interest other institutions to intervene or to induce the stockholders to voluntarily contribute sufficient funds to make up the impairment have thus far proven ineffective, but it is hoped that action may yet be taken whereby the necessary funds can be supplied and the present bank reopened or a new institution organized to take over the business without loss to the depositors. Under the "segregation" law it is believed that the savings depositors will be fully protected." The Lincoln County Trust Company was organized April 6. 1917, as a consolidation of the Wiscasset Savings Bank and the First National Bank of Wiscasset. Its officers are Albert M. Card.. president: William J. Patterson and Samuel J. Sewall, vice presidents and W. C. Day, treasurer. Its savings deposits as of January 6th. 1923 aggregated $370,206.16: its demand deposits $87,534.71: its capital stock on the same date was $50,000 and its surplus and undivided profits $8,055.40.

3. March 27, 1923 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, March 27, 1923

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Article Text

Wiscasset Citizens Name Committee to Act in Trust Co. Case Wiscasset, Me., March 26-A committee was appointed at a meeting of citizens late today to consider the advisability of effecting a new organization to take over the business of the Lincoln County Trust Company. whose bank here was closed on March 14, by a temporary injunction from the supreme court upon application of State Bank Commissioner Fred F. Lawrence. This committee will call another meeting after making its decision. It consists of -Carl M. P. Larrabee, E. Fred Albee, Daniel R. Sartwell and Joseph P. Tucker, all of this town. Another committee. consisting of A. W. Wilband and Daniel R. Sartwell, was appointed to represent the depositors at a hearing to be held at Augusta on Thursday on the bank commissioner's petition for the appointment of a receiver for the bank.

4. March 30, 1923 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, March 30, 1923

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Article Text

CHIEF JUSTICE NAMES RECEIVERS LINCOLN TRUST CO. Chief Justice Leslie C. Cornish of the supreme judicial court yesterday afternoon appointed W. C. Day of Wiscasset and Walter S. Glidden of Bath as receivers and William D. Patterson as master of the Lincoln County Trust Company. Each was ordered to furnish a bond in the sum of $50,000. The Lincoln County Trust Company was closed on Dec. 14 last by oder of Bank Commissioner Fred F. Lawrence. The failure of a Boston investment house was responsible for the suspension of the Wiscasset Bank. Harvey R. Pease of Wiscasset, representing some of the depositors, asked that Mr. Day, the late, treasurer of the bank, be one of the receivers. Chief Justice Cornish remarked that the affairs of the institution should be closed up so that the depositors may receive their money as soon as possible. The Lincoln County Trust Company is a consolidation of the First National Bank and the Wiscasset Savings Bank. the consolidation occurring in 1917.

5. October 31, 1923 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, October 31, 1923

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Article Text

Receivers Lincoln Trust Company Must Pay, Orders Cornish Wiscasset. Me., Oct. 30-The receivers of the Lincoln County Trust Company, by an order from Chief Justice Leslie C. Cornish of the supreme court. made public today, are directed to pay in full claims of creditors, other than those of depositors, which were allowed by the commissioners, aggredating $11,698. They also were directed to apply for permission to pay a dividend of at least 25 percent upon the deposit liabilities as soon as they are in a position to bo so by conversion into cash of the bank's assets.

6. March 25, 1924 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, March 25, 1924

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Article Text

ter and the further act ha you have seen fit to send a copy of your vote to the chief executive, I should regard it as unworthy of my attention. All I care to say is that the premises upon which this vote was based are for the most part unsound. "A majority of the stock of the Lincoln County Trust Company, at the time of its failure. was owned by individuals interested in the business of selling securities and located in Massachusetts. No other bank in this state then was or is now under the control of these individuals. or any of them. or any interests allied with them. I know of no Jozen banking institutions' or of any single banking institution which was wrecked by the failure of that company or whose standing has been in any way impaired by such failure. Whether the officers of that company have been indicted for conducting a bucket shop in Massachusetts I do not know. If such is the fact neither the Lincoln County Trust Company, nor any other Maine bank, has been in any way affected. "The action of the department in closing the Lincoln County Trust Company was not due to any suspicion of criminality or illegality on the part of any of its officers. Its directors were. with one exception, residents of Wiscasset and vicinity, and men of character and standing. The receivers appointed by the court are thoroughly competent and reliable, and if there has been any wrong-doing or mismanagement, I am certain that they will see to it that the deposiors are fully protected. "I trust that you will take the pains to see that the contents of this letter are communicated to the citizens of. your communiy who were responhible for this action. and tell them that if they have any information tending to sustain the serious charges they have made they would at once communicate it to this department. "I trust you will give this communication the same degree of publicity which was accorded the action of the voters of Westport."