Washington Loan & Trust Company (Washington, DC)

Episode Information

Episode UID
15005471283
Episode Type
Run Only
Bank Type
trust
Bank ID
1500547 routing
Routing Number
15-0054
Start Date
November 17, 1906
Location
Washington, District of Columbia (38.895, -77.036)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
80951f166829cbc9

Response Measures

None

Events (1)
1. November 17, 1906 Run
Cause
Rumor Or Misinformation
Cause Details
A mistaken statement by a woman (told others she could not draw money after being waved off by a teller) that was magnified into a rumor causing withdrawals.
Random Run
Yes
Random Run Snippet
Woman told others she could not draw money; rumor proved baseless
Measures
Directors posted a signed statement and the national bank examiner publicly reassured depositors; officers solicited inquiries and encouraged redeposits.
Newspaper Excerpt
Beginning of Run on Washington Loan and Trust Company. MANY DEPOSITORS WITHDRAW MONEY
Source
newspapers

Newspaper Articles (11)
1. November 17, 1906 Evening Star Washington, DC
Article from Evening Star, November 17, 1906

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Article Text

Beginning of Run on Washington Loan and Trust Company. MANY DEPOSITORS WITHDRAW MONEY Acting Controller Says Alarm is Unnecessary and Senseless. Statement by T. P. Kane, Acting Controller of the Currency: "The uneasiness as to the Washington Loan and Trust Company is unnecessary and senseless. Our examiner made an examination of the institution about one month ago, and reported that the concern was never in better condition. The statement of the bank a few days ago shows the same thing. In fact, the statement is considered the best ever made by the Washington Loan and Trust Company. By Monday the people will be ashamed that they ever doubted the company. I consider this trust company one of the most solid financial institutions in the United States." Father Stafford: "All my church money is on deposit with the Washington Loan and Trust Company, and it will stay there." By he Directors of the Washington Loanand Trust Company: "The institution was never in such sound and safe condition as at the present time. We assure all concerned that their money and property intrusted to our care are perfectly safe."

2. November 17, 1906 The Washington Times Washington, DC
Article from The Washington Times, November 17, 1906

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A statement alleged to have been made yesterday by a woman employe of the Pension Office that she could not draw her money from a Washington loan company, grew, and was magnified until this morning it resulted in a run being made on the Washington Loan and Trust Company. Shortly after doors were open this morning an unusual number of customers filed into the bank office, and began to draw out their deposits. Realizing the harmful effect of the rumors, John Joy Edson, president of the Washington Loan and Trust Company, called a conference of the directors, and went over the situation with them. A statement, signed by the directors, was then issued and posted in full view of the crowd. The statement had a tendency to reassure the depositors. Owen T. Reeevs, jr., national bank examiner, who several weeks ago made a thorough examination of the company's books, mounted a chair and in a short sepech told the depositors that there was no occasion to be alarmed. "This bank is as solid and sound now," said Mr. Reeves, "as it has ever been. Its assets are greater at this moment than at any other time since the organization of the company," The crowd applauded and some turned and left the building. Others, however, remained and presented checks for their balances. A gratifying incident in connection with the run was pointed out by Mr. Edson. At the paying teller's window there was a string of people that extended into the street, and at the receiving teller's window on the opposite

3. November 18, 1906 The Washington Herald Washington, DC
Article from The Washington Herald, November 18, 1906

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Washington Loan and Trust Company. Nothing quite so causeless, SO wholly without reason, has happened in the financial history of the Capital as the "run" yesterday on that sound, wellmanaged institution, the Washington Loan and Trust Company-all due to a mischievous rumor that had no basis of fact. Human nature is the same here, there, and everywhere. There is no use to editorialize on the subject. The thing has happened before and may happen again. No financial concern is immune. Human nature cannot be changed; we can only deplore it, and hope that such a thing will not occur in this city again. But, deplorable as such a "run" is, there is a good and a helpful side to it. The frightened depositors know more to-day than they did yesterday. Their groundless fears have enabled them and the whole community to learn how strong and prosperous and reliable the Washington Loan and Trust Company really is; how large a surplus it carries; what the government thinks about its soundness, and, best of all, what the substantial people of the Capital think about it and its officers. The depositors should have known all this before-an examination of the company's reports would have told them enough-but now this unfortunate episode has forced the knowledge upon them in a manner they cannot forget. Mr. John Joy Edson's name speaks conservatism and honorable dealing. Money in an institution over which he has supervision is as safe as human agencies can make it. He and his associates had earned the fine tributes of faith and confidence which spontaneously came forth in consequence of this senseless "run"-tributes that would have carried with them funds to any amount had such been needed.

4. November 19, 1906 The Fairmont West Virginian Fairmont, WV
Article from The Fairmont West Virginian, November 19, 1906

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Article Text

TO STOP BANK RUNS. Simply Turn Down Nervous Depositor When He Brings Money Back. WASHINGTON, D. C., Nov. 19.A scheme for breaking nervous per sons of the habit of starting runs on sound banks is under serious consideration by the bankers of Washington It is simple: Refuse deposits offered by those who have withdrawn their de posits during a run. One bank adopted that policy when a scared depositor brought the money he had withdrawn from the Washington Loan and Trust Company and of fered to open an account. The cashier said him nay and when he appealed to the president that official said "no" in thunder tones. From which incident has grown an agitation among the other bankers for the adoption of an agreement.

5. November 20, 1906 The Washington Times Washington, DC
Article from The Washington Times, November 20, 1906

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RAILWAY COMMON ON UP GRADE Excellent Prices Paid to Secure Washington Loan and Trust Stock. Features of Today's Market Most Active Stock. Wash. Railway common 450 shares Greatest Net Gain. Wash. Loan and Trust 2 points Total Dealings. Stocks 571 shares Bonds $1,000 Two features stood out prominently today in the business on the Washington Stock Exchange. First, because of the great public interest centered in the hysterical run on the Washington Loan and Trust Company it was expected that it might be reflected in the price of the stock. The first sale that has been made for nearly a month took place today and the price was several points in advance of the last quotation with the demand well distributed and strong bids for goodly amounts. While it is to be regretted that the incident occurred, the substantial position of the company has been never more strongly shown than in the willingness to pay high 'prices by investors for the little floating stock.

6. November 20, 1906 Evening Star Washington, DC
Article from Evening Star, November 20, 1906

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DEPOSITORS RETURN. Those Who Withdrew Again Place Funds With L. and T. Company. "It is all history now, though we will never cease wondering how it happened," said President John Joy Edson of the Washington Loan and Trust Company today, in speaking of the "run" upon that institution which began Friday and ended yesterday at noon. Business resumed its normal course in the bank yesterday and continued today, the only feature being a considerable rush on the part of the depositors who withdrew their money from the institution Friday, Saturday and yesterday morning to redeposit it. President Edson stated further that the company had gained a fairly definite idea as to the starting of the rumor which inspired the run, and no efforts will be spared to learn the exact form of the original trouble-making story. If it is proved to have been at all malicious the company proposes to institute whatever proceedings may be necessary to have punishment placed where it is deserved.

7. November 21, 1906 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, November 21, 1906

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Article Text

The Washington Loan & Trust Company had $7,000,000 in its vaults and the lordly paying teller on Saturday last was so swollen with financial importance that he would not waste his time on a woman who did not understand. She presented a check on an account that was overdrawn. He simply waved her aside with the curt reply, "No money here." She took him at his word and started out to tell others. In an hour there was a run on the bank so serious that the other banks of Washington and nearby cities hastened to offer assistance. You should always explain to, the lady. She may not believe you, but you have done your duty.

8. December 2, 1906 The Washington Times Washington, DC
Article from The Washington Times, December 2, 1906

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Aftermath of Madness. During the past fortnight there was a tense feeling of expectation as to the probable outcome of the unwarranted run started on the Washington Loan and Trust Company. It was argued that if such a slight foundation caused wild and frantic actions of a number of otherwise sensible persons against an institution regarded as Impregnable the officiais of other banks did well to perceive that the epidemic might again break out with increased virulence. It was wise therefore to be prepared and it is known that all proper precautions were made against emergencies. For this reason the money market has not been altogether as satisfactory as borrowers would have liked to have seen. and the complaint has been general that funds have not been obtainable on stock collaterale except to favored customers. On the stock exchange the effect of the excitement has been seen in the rather unusual amount of Washington Loan and Trust stock that has been offered for sale. Generally the transactions are of a very limited character, 9 and for weeks it is not unusual to find the record bare of this stock. During these two weeks something like 300 shares have been marketed, and as the support has been remarkably good the variation in price has not exceeded five points. . Prior to the run the daily bid was in the neighborhood of 217, and present prices are now at practically the same

9. December 13, 1906 The Washington Times Washington, DC
Article from The Washington Times, December 13, 1906

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EDSON REWARDS POLICEMEN FOR THEIR WORK AT BANK In appreciation of the work of the policement who were detailed to maintain order at the "run" en the Washington Loan and Trust Company, November 17 and 10, President John Joy Edson has presented $100 to Major Sylvester to be divided among the officers who performed the service,

10. December 14, 1906 The Washington Herald Washington, DC
Article from The Washington Herald, December 14, 1906

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NEWS CUT SHORT FOR BUSY READERS John Joy Edson, president of the Washington Loan and Trust Company, has presented $100 to Maj. Sylvester to be divided among the policemen who were detailed to maintain order at the recent "run" on that institution Upon reccommendation of Maj. Sylvester, the Commissioners have ordered that pert of the money be divided among the policement and that the remainder be donated to the police clothing and helmet fund, Commissioner Macfarland yesterday received $50 from Mrs. Mamie E. Norment and $20 from her son, Harry Norment, as their annual contribution to the "firemen's coffee fund." It is this fund which provides the hot coffee and sandwiches that are served to the members of the fire department at every fire where it is necessary. Three colored boys held up and robbed another lad named Richard Mansfield in Lafayette Square late yesterday afternoon. Young Mansfield was enticed to "come over and sell a man 8 paper" by the colored boys, who succeeded in bringing the young newsboy in the shadow of the shrubbery along one of the walks. He was held by two of the boys, and the other hit him in the face and went through his pockets. Instructions have been sent to the various police captains to be on the lookout for the game of "interior base ball" which is being presented in some of the cigar stores and saloons. This game has been investigated by the Commissioners as to its legality, and a report has been issued which classes it in the chance games which are prohibited. The police have instructions to report any person in their district who is encouraging or harboring those who play the game

11. December 20, 1906 The Washington Herald Washington, DC
Article from The Washington Herald, December 20, 1906

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Equity Court No. 2. JUSTICE GOULD. Wheelan vs. Wheelan; auditor's report confirmed and distribution ordered. Complainant's solicitors, Stuart McNamara and H. B. Moulton: defendant's solicitor, J. W. Jennings, Horn vs. Horn: rule to show cause, returnable Jannary 4. 1907. Complainant's solicitor, Albert Sillers: defendant's solicitor, W. P. Plamley. Kleps vs. Kleps: will established and trustee given power to sell; bond, $5,000. Complainant's solicitors, 8. V. Hayden and H. L. Frane. Scott vs. Jennings: receivers authorized and directed to sell personalty at public auction. Complainant's solicitors, John Ridout and George C. Gertman: defendant's solicitor, D. W. O'Donoghue. Reinburg VS. Reinburg ; amendment of former decree reducing alimony. Complainant's solicitor, W. Gwynn Gardiner; defendant's solicitors, Lester & Price. Mackey VS. Felt; salo confirmed and reference to auditor. Complainant's solicitor, Crandal Mackey; defendant's solicitor, Guy H. Johnson. Freeman vs. Freeman; sale confirmed and reference to auditor. Complainant's solicitor, John B. Larner Boswell vs. Boswell: divorce a vin. mat. granted. Complainant's solicitors, Campbell Carrington and S. D. Truitt; defendant's solicitors, Wolf & Rosenberg. Washington Loan and Trust Company VS. Dulany: appearance of absent defendant ordered. Complainant's solicitors, A. 8. Worthington, J. J. Darlington, John B. Larner, and W. G. Johnson. Title Guaranty and Surety Company vs. Shaw; demurrer sustained. with leave to amend. Complainant's solicitor, Philip Walker; defendant's solicitor, D. W. Baker. Snitzer VS. La Porte; rule as to receivers returnable January 4, 1907. Complainant's solicitor, Leon Tobriner. No assignment for to-day.