Name occasionally appears as Capitol/Capital in coverage; suspension dated Nov 24, 1902 in sources.
Events (3)
1.November 1, 1902*Run
Cause
Rumor Or Misinformation
Cause Details
Rumors tying the bank to the Industrial Building and Loan Association and a suit circulated, causing depositor withdrawals.
Random Run
Yes
Random Run Snippet
Rumor bank tied to Building Association and suit; later proved false
Measures
Directors announced 60 days' notice required for withdrawals and stopped receiving new deposits.
Newspaper Excerpt
This fall ... there has been a quiet run on the bank
Source
newspapers
+23 days
2.November 24, 1902Suspension
Cause
Rumor Or Misinformation
Cause Details
Continued large withdrawals following rumors and loss of confidence led directors to suspend payments and require 60 days' notice.
Newspaper Excerpt
The Capital Savings Bank ... suspended payment yesterday.
Source
newspapers
+43 days
3.January 6, 1903Receivership
Newspaper Excerpt
Justice Hagner ... signed an order appointing John Ridout, Thomas Walker and Joseph H. Stewart, receivers, to collect the assets and wind up the affairs of the Capital Savings Bank, which recently suspended payments.
Source
newspapers
Newspaper Articles (23)
1.November 2, 1901The Colored AmericanWashington, DC
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Although the prospect was not alluring, 80 great was the faith of Douglass B McCary in himself and in the future that he fitted himse'f by a thorough purse of training, for his chosen life work and when he bai graduated, the opportunity came. How well he has tiken a vantage of it, the success of Capital Savings Bank 80 well attests The Bank is now the owner of its splendid office building at 609 F Street, N. W., , containing some twenty office rooms heated by steam. It has & paid up capital of fifty thousand dollars and a considerable surplus, LEONARD C. BAILEY, Possibly theman to whom more than any other, the colored race owes a debt of gratitude for the fact that this splendid example of business ability within the race has been so well maintained is its treasurer, Leonard C. Bailey. Being a man of large resources and a wide business experience and acquaintsnce, he has from the start devoted himself and bis substantial credit to the success of this bank. During the terrible panic of 1893 he readily raised all the cash necessary to tide over the fright and enabled the bank to continuously meet all demands when much stronger institutions were crying for "quarter" and demanding "time" and "notice." Mr. Bailey is also the proprietor of reversl profitable barber abops, and 80 well established is his hold upon them that a visit to each once or twice daily is all that is necessary to keep the busines in profitable channels. a)
2.April 12, 1902The Washington BeeWashington, DC
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THE CAPITAL SAVINGS BANK All Demands Promptly Met-No Connection with the Building Association. The malicious falsehood that was circulated this week that the Capital Savings Bank had a suit to defend, failed to accomplish the object of the enemies of the bank. There is no connection, whatever, or association between the officers of the bank and the Building Association; and again, the man, Jordan, is not a stock-holder in the bank, hence he could not ask for the appointment of a receiver if he had money on deposit. The Capital Savings Bank is composed of men of highest integrity and honesty. There is not a more honorable man in the city than the President, Hon. John R. Lynch, and its Treasurer, Mr. Lemuel C. Bailey, is one of the most reliable men in this city The Cashier, Mr. D.B. McCary, has made this institution a success, and as a man of strict business qualities, he is that man. If there was a run on the bank after the suit had been filed, every demand has been met and every check honored that had been presented. During the financial panic several years ago, the Capital Savings Bank was one among the many hundred that withstood that panic and the conduct of the business of the bank commanded the admiration and established the confidence of its patrons in it. Every demand has been.met and business continues at the same old stand.
3.April 12, 1902The Colored AmericanWashington, DC
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SATURDAY, APRIL 12 1902. THE CAPITAL SAVINGS BANK. The absorbing topic of the week has hovered about the affairs of the Capi tal Savings Bank and its reported re' lations with the Industrial Building and Loan Association. A temporary flurry was set on foot among the bank's many depositors by a rumor that the institution was embarrassed, if not insolvent. The sensation grew out of a suit for the appointment of a receiver, brought by one Daniel Jordan, who alleged that a sum of $110 was due him and unpaid. The renresentation was made that the building association and the bank were identical concerns and therefore jointly liable. Hence, his application for an accounting. The breeze blew over as soon as it developed that the bank and association were in no way connected, and that the com plainant had not so much as made a demand upon the bank for the amount, alleged to be due him by the Association. An authoritative statement to this effect, given out by the bank's directors, through Secretary Robert H. Terrell, has quieted all fears as to the bank's stability and the nor mal condition of absolute confidence has been restored. As a matter of fact, the Capital Savings Bank is one of the staunchest financial concerns in the country, and for fitteen years has stood here, a proud object lesson to all the people of the business capacity of the Negro race. It is conducted on legitimate lines by men of experience, wealth, 80cial standing and recognized integrity. It weathered the depression of 1893 without a quaver, and won the admiration of Washington's heaviest finaneiers, It is unfortunate that the institution should be drawn into a matter with which it had nothing to do, and the ineident emphasizes the caution with which a Negrocomplainant should proceed when the honor of reputable race men is at stake and the lite of a stand -
4.November 26, 1902Evening StarWashington, DC
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MUST GIVE DUE NOTICE REQUIREMENT OF DEPOSITORS IN CAPITAL SAVINGS BANK. The Institution Remains Open for Transaction of Business-President Terrell's Statement. The depositors of the Capital Savings Bank, an institution managed by colored men at 605 F street, and mainly patronized by colored people, have been informed that they must give a notice of sixty days of their intention to withdraw money. At the same time no deposits are received. The bank, however, continues open as usual. The president of the bank is Robert H. Terrell, one of the justices of the peace for the District of Columbia. He was seen in his office this morning by a Star reporter, and had the following to say in regard to the institution of which he is the head: "For some cause or causes the character of which I cannot fully determine now," he said, "a withdrawal of money on the part of depositors in the Capital Savings Bank has been going on for several months. At first this condition did not alarm the officers of the bank, because it is usual in the summer months for the withdrawals to be large. The school teachers, many of whom deposit with us, do not draw a salary during this period, and they generally use up a large part of their surplus. The clerks in the departments generaily take their vacations at that time, and their withdrawals in consequence are always considerable. These losses are usually recovered in the fall months, when the teachers and clerks are back at their work. A Quiet Run on the Bank. "This fall, instead of the conditions being normal, there has been a quiet run on the bank, and the directors felt It expedient to announce that sixty days' notice would be required from those intending to withdraw deposits. Such a notice was given Monday afternoon, but the bank remains open for the transaction of business, such as the collection of notes belonging to the bank and to depositors. No further deposits have been received. It is my personal belief that the depositors will not lose a cent. The directors will meet tonight and endeavor to formulate some plan for the future which it is hoped will meet the approval of the depositors. "For many years the officers of the bank have struggled to maintain this institution. They were influenced by the motive that as it was an institution established by colored men and managed by colored men they had a feeling of race pride to see it succeed. The members of the board of directors, the president, secretary and treasurer have received no compensation whatever, but have given their services without charge. "The bank was established in 1887, and Milton M. Holland was the first president. Some of the members of the present board were members of the first board. "Owing to the circumstances as above outlined the amount now on deposit in the bank is not large. On the other hand, the bank owns the building which It occupies, and other real estate, in addition to the bank paper, which is good, SO that altogether I think the assets will make a good showing."
5.November 27, 1902Alexandria GazetteAlexandria, VA
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Lansburgh & Bro., 420 to 426 Seventh Street, WASHINGTON, D. C. LOCAL BREVITIES. The weather has been fair and cool today. Two lodgers were at the station house last night. The Circuit Court for the city, Judge Nicol, will meet on Monday. We are indebted to Mr. Jas. R. Caton, Delegate from this city and county in the legislature, for copies of documents of interest to the people of this city. The Capital Savings Bank in Washington managed and patronized by colored people, suspended payment yesterday. No statement of assets and liabilities will be forthcoming until a meeting of the stockholders is held. John Sinclair, colored, who was convicted of murder on Wednesday last in the Sup reme Court of the District of Columbia, was yesterday sentenced to be hanged on Friday, January 30, 1903, in the District jail, between the hours of noon and 2 o'clock in the afternoon. Another delay has occurred in the extradition proceedings in the case of John Lawrence O'Brien, who is under indictment in Washington, for embezzlement of $5,400 from Mr. Frank Hume. The Washington authorities do not understand the cause of the delay on the part of the San Francisco authorities. Marriage licenses were issued in Washington yesterday to Frederick R. Stryker, of Winchester, and E. May Rawlings, of Silcott Springs, Va.; Lewis H. Fletcher and Flossie I. Hagen, both of Alexandria county, and Harry-A. Parker and Nellie J. Andrews, both of Essex county; Richard C. Weeks, Westmoreland county, and Annie Weeks, Takoma, Md.; J. Sterling Moran and Nellie Bryant, both of Ashburn. Albert E. Fage, of Arlington, has been appointed an apprentice draftsman in the Navy Department. Mr. Robert Travers will have bass, mackerel, trout and tailors in market tomorrow.
6.November 29, 1902The Washington BeeWashington, DC
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THE CAPITAL SAVINGS BANK. Suspends for Sixty Days- Many are Effected and Declare That They are Embarrassed. A rumor was circulated on Tuesday afternoon that the Capital Savings Bank that has been conducted so succes fully for a number of years by several well known citizens, has suspend Ibusi ness and the doors would be close I for 60 days. This rumor was verfied when a BEE representative called at the bank and found that the report was true There Were many of the depositors who took the suspension very seriously. Among the members of the bar who seem to be visably effected was Attorney Perri Frisby, while Attorney W. L. Pollard took the matter very philosophically. Dr. Hughes it is said has a very large deposit in the bank. while some others only have small depssits. Those who are doing the most talking are the small depositors who have not much over one hundred dollars, while the large depositors are saying very little, It is quite evident that the bank will resume business aud within sixty days all depositors, it is claimed will be paid dollar for dollar. Just what caused the suspension, is not yet ascertained. It is certainly a loss to the people who had so mnch confidence in the institution as being
7.November 29, 1902The Colored AmericanWashington, DC
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THE CAPITAL SAVINGS BANK. The temporary embarrassment of the Capital Savings bank comes as a surprise and shock to the friends of Negro enterprise everywhere. That a financial corporation which had successfully weathered the panic of 1893 should fail in the high tide of prosperity makes the situation all th more difficult to understand. It appears, however, that for some time there has been a quiet drain upon the resources of the bank and the reserve had become so low that rather than run further risk of the funds of the depositors or the company, it was decided best to close the doors of the institution for at least sixty days, at which time it is hoped that business can be safely resumed. The managers of the Capital Savings bank are among the best citizens and are gentlement of unimpeachable integrity. They have ample means to pay all obligations ten times over and the people who have intrusted funds to their keeping may rest assured that they will receive dollar for dollar. Confidence is everything to the success of a business and we trust that important element can be resorted in time to guarantee a future for this corporation. Its destruction cannot fail to inact injury upon every other concern operated by colored people.
8.December 4, 1902Gloucester County DemocratWoodbury, NJ
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In Washington, D. c., the Capitol Savings Bank, managed by Negroes for Negro depositors has been forced to suspend. In the world of finance as well as in politities it is not always wise to draw the color line.
9.December 12, 1902The Seattle RepublicanSeattle, WA
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Had No Race Pride. The suspension of payment by the Capital Savings Bank of for Washington sixty days, because of large withdrawals of deposits, is much to be regretted. Captain John R. Lynch is president of the bank. If it were properly supported by the Afro-Americans of Washington it would easily be one of the strongest banks in the country. We hope that it will soon resume business.-N. Y. Age.
10.December 22, 1902Evening StarWashington, DC
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ASKS FOR RECEIVER. William A. Warfield Brings Capital Savings Bank's Affairs Into Court. Steps to wind up the affairs of the Capital Savings Bank were taken this afternoon when William A. Warfield filed suit for dissolution of partnership, the appointment of receivers and an injunction, certain officers and directors of the bank being named defendants as follows: John R. Lynch, the president; Jerome A. Johnson, the vice president; Robert H. Terrell, the secretary; Lorenzo C. Bailey, the treasurer; Douglass B. McCary, the cashier, and Wyatt Archer, James T. Bradford, William S. Lofton, Whitefield McKinlay, Arthur W. Tancil and Robert Williams, directors and stockholders. The complainant sets forth that he is a stockholder of the bank, the institution, he explains, being organized as a partnership. It is insolvent, declares Mr. Warfield, having suspended payment November 24 last. The complainant, among other things, charges that overdrafts have been made by certain directors. there being one overdraft amounting to $30,000 by one director alone, while the capital stock of the bank is only $50,000. Mr. Warfield, who is represented by Attorneys A. A. Birney and J. H. Stewart, asks that the defendants be enjoined from disposing of any of the assets of the bank, that receivers be appointed to take charge of the same, and that the partnership be dissolved. Justice Hagner issued a rule to show cause returnable January 5.
11.January 7, 1903Evening StarWashington, DC
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RECEIVERS NAMED. Court Takes Action in Capital Savings Bank Litigation. Justice Hagner, in Equity Court No. 1, late yesterday afternoon signed an order appointing John Ridout, Thomas Walker and Joseph H. Stewart, receivers, to collect the assets and wind up the affairs of the Capital Savings Bank, which recently suspended payments. The receivers are required to furnish bond in the sum of $10,000. Mr. Ridout was appointed on behalf of the directors of the bank. Mr. Walker on behalf of the depositors and Mr. Stewart on behalf of the stockholders.
# The receivers of the defunct Capital Savings Bank of Washington, D. C.,
13.January 24, 1903The Washington BeeWashington, DC
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CAPITAL SAVINGS BANK. NOTICE TO DEPOSITORS. By direction of the court, all depositors are ICquested to promptly present theirbank books for settlement to JOSEPH H. STEWA T, Re: ceiver at his office, 609 F st. n. W. JOHN RIDOUT JOSEPH H. STEWART, THOMAS WAL KFR, Receivers
14.February 3, 1903Evening StarWashington, DC
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# JUDGMENT FOR DEPOSITORS.
Action Taken Against the Capital Savings Bank.
In connection with the proceedings instituted by H. Augustus Guess, a depositor with the Capital Savings Bank, against Jerome A. Johnson and others, directors of that institution, Justice of the Peace Mills has rendered judgment in javor of the plaintiff for $25.
Since the bank suspended payment a number of its depositors have filed suit. Mr. Guess' action was the first to be heard. The defendants contended at the hearing
15.March 6, 1903The Washington TimesWashington, DC
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RECEIVERS SUE TO RECOVER ON PROMISSORY NOTES John Ridout. Joseph H. Stewart, and Thomas Walker, receivers for the Capital Savings Bank. have filed suit in the Supreme Court of the District against Henry E. Baker, to recover $38,042.94, alleged to be due the bank by the defendant. The amount stated is the aggregate of several promissory notes, said to have been deposited by Baker with the Capital Savings Bank, from March 31, 1900, to November 24, 1902.
16.March 25, 1903Evening StarWashington, DC
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Court Authorizes Sale. Justice Hagner, in Equity Court No. 1, has authorized the receivers of the Capital Savings Bank to sell at public auction, after proper notice, the interest of the bank in all its real estate.
17.April 1, 1903The Washington TimesWashington, DC
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RECEIVERS OF CAPITAL SAVINGS BANK REPORT Indebtedness of the Officers and Others in Detail. A report of the receivers of the Capital Savings Bank, filed yesterday, in the Supreme Court of the District, shows that the officers in charge of its affairs were indebted to the institution in the sum of $47,398.04 when payment was suspended last November. The amounts charged against the officers are: John R. Lynch, president, as maker of notes, $1,734.15; as indorser, $176.74, and overdrafts, $431.07. Leonard C. Bailey, treasurer, in his official capacity, $265; maker of notes, $1,450: overdrafts, $1,011.53. Henry E. Baker, director, as maker of notes, $38,468.55; as indorser, $1,217.37. A. W. Tancil, director, as maker of notes, $301.75; indorsed, $613. Douglas B. McCary, cashier, as maker of notes, $475.73. Robert T. Douglas, teller, as maker of notes, $1.68. Robert H. Terrell and John R. Lynch, notes, $1,068. It is stated that Leonard C. Bailey has conveyed to the trustees of the bank real estate valued at $750, on Stoddard Street, as partial security for his indebtedness. A complete list of other debtors to the Capital Savings Bank is also filed as part of the report of the receivers. These vary in amount from $5 to about $500. A letter by Mr. Bailey to the receivers says: "I have acted as treasurer of the bank since 1889, and as superintendent of the building since 1891, to November 24, 1902, and have never received any compensation. At $25 a month the amount due me now is $3,926."
18.April 4, 1903Evening StarWashington, DC
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Get a Copy of the Record
for complete report of the receivers of Capital Savings Bank. Office, 12th st. and Vermont ave. ap4-3t*
19.May 2, 1903The Washington TimesWashington, DC
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# CAPITAL SAVINGS BANK
# AFFAIRS IN COURT
The procedings instituted by the receivers of the Capital Savings Bank against Henry E. Baker, for the purpose of having the court to declare void his conveyance to his wife, Violetta C. Baker, of lot 37 in square 640, will play an important part in the settlement of the affairs of the bank. The receivers allege the transfer was made by Baker to his wife with the object of avoiding the payment of certain claims held by his creditors, and of selling the property to the Philadelphia, Wilmington and Baltimore Railroad Company. It is also alleged that among the assets of the Capital Savings Bank are promissory notes and overdrafts made by Baker, aggregating nearly $40,000.
The receivers of the Capital Savings Bank ask the court to declare the real estate in question, to be part of the assets of the bank, and that it be credited to the account of the defendant.
20.July 3, 1903Evening StarWashington, DC
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# THE COURTS.
Equity Court No. 1-Justice Anderson.
Shields agt. Shields et al.; guardian ad litem appointed. Fletcher agt. Fletcher; auditor's report ratified and confirmed. Gannett agt. Payne; time to file complaint's testimony limited. The Lawyer Publishing Company agt. Payne; do. Willis Publishing Company agt. Payne; do. F. J. Smith Company agt. Payne; do. Lane List agt. Payne; do. Kline agt. Kline; cause certified to Equity Court No. 2. Hamilton agt. Hamilton; order for publication. Thomas agt. Johnson; time to file transcript in Court of Appeals extended. Nesbit agt. Standard Butterine Company et al.; sale ratified nisi. Hale agt. Price; cause referred to auditor. Patten et al. agt. Waggaman et al.; decree for sale with American Safe and Trust Company trustee.
Equity Court No. 2-Justice Gould.
Fox agt. Pitchlynn; guardian ad litem appointed. Slye agt. Slye; further proceedings as to contempt stayed till July 16. Brown agt. Neil; receivers of Capital Savings Bank required to furnish information. Morisi agt. Lanzill; sale decreed. Lynch agt. Richardson; contract of sale confirmed and conveyance ordered.
Bankruptcy Court-Justice Anderson.
In re Leverett F. Englesby; order for discharge.
Circuit Court No. 2-Justice Anderson.
Arlington Brewing Company agt. Beach; judgment by default for $576.25. Hall agt. Ballinger; award of execution on judgment of June 18, 1903.
Criminal Court No. 1-Justice Pritchard.
United States agt. Martin Richardson, conspiracy; recognizance $500 taken, with American Bonding and Trust Company surety.
Probate Court-Justice Anderson.
In re Bessie C. Bell; Mary E. Bell appointed guardian; bond, $3,000. Estate of John Overheim; order to sell personal property. Estate of John W. Thompson; will filed. Estate of Martha S. Pomeroy; sale of real estate ratified and proof of publication filed. In re Laura E. Talbert et al.; account passed. In re George W. Armstrong et al.; do. In re Catherina Graff; do. In re Lucy R. Thomas; account passed. In re Lillian J. M. Newman; do. In re Katherine O'Connor; do. In re Edwin H. Frazier et al.; do. In re Blanche P. Walker; do. Estate of Kate H. Dyer; do. Estate of Rebecca Hurley; account passed. Estate of George H. Wohlfarth; do. Estate of Robert H. Gunnell; do. Estate of John M. Wilson; do. Estate of Samuel E. Rabbitt; order for publication. Estate of Wm. Wallace; will partly proved.
Estate of David Smith; order authorizing repairs. Estate of Enoch G. Beaird; petition for probate of will filed. Estate of Jennine Brummell; order for publication. In re Carrie I. Burkhart; answer filed and testimony ordered taken before Margaret M. Murray, examiner. Estate of George Wright; petition for letters of administration filed. Estate of Harold C. Grant; petition for letters of administration filed. Estate of Mary Downs; will filed. Estate of Mary Knorr; proof of publication. Estate of Emeline D. Lovett; do. Estate of Andreas Theurer; will admitted to probate and letters testamentary granted to Ernest L. Schmidt; bond, $10,000. In re French Walden et al.; inventory filed.
21.March 14, 1904Evening StarWashington, DC
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STOCKHOLDERS RESPONSIBLE. Contention Upheld in Suit by Depositor in Capital Savings Bank. As the outcome of the proceedings instituted by W. Bruce Evans against Jerome A. Johnson and others as stockholders "trading and doing business as the Capitol Savings Bank," a jury in Justice Wright's court this afternoon. rendered a verdict in favor of the plaintiff for $29.92, with interest at the rate of 3 per cent per annum from December 31. 1902. The plaintiff was a depositor in the bank mentioned, and he sued to recover the amount he had on deposit at the time the concern suspended business. It is said that the Evans case was the first of several hundred similar actions to be tried, and that the verdict sustains the contention of the plaintiff that the stock holders conducted the bank as a partnership and, therefore, are responsible to the depositors for the amounts of their deposits. Attorneys A. A. Birney and L. M. King appeared for the plaintiff.
22.July 11, 1905Omaha Daily BeeOmaha, NE
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filed a motion in the district court that the receivers of the Capital Savings bank of Washington, D. C., be compelled to file security for costs in the suit they have brought against him in Douglas county to recover certain sums of money. Mr. Lynch was at one time president of the Washington bank and is alleged to have borrowed a considerable amount of money which is still due.
23.November 1, 1934The Northwest EnterpriseSeattle, WA
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(colored) who had got the members together, was the first pastor. Maud Cuney Hare, colored, of Boston, Mass., is a composer, author and exponent of Creole and Afro-American music. Mrs. Hare has achieved success in tracing developments of various African dances. Egbert Austin Williams was the greatest comedian on the American stage. He was born in New Providence, Nassau, British Bahama Islands, in 1876. Thomas A. Dumas, Magloire Pelage, and Dugommier, Negro generals, played important parts in the Napoleonic wars. Dumas was the father of the great French writer. The Capitol Savings Bank of Washington D. C., was the first privately owned bank in the country. It opened in 1878 and closed after running for sixteen years. Tom Molineau, a Negro slave of Richmond, Virginia, is credited by some authorities as being the first heavyweight boxing champion. He won an $100,000 purse for his master and was given his freedom, and then he proceeded to beat all comers.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
