Savings Bank (Brunswick, MD)

Episode Information

Episode UID
1556154491331
Episode Type
Suspension → Closure
Bank Type
savings
Bank ID
155615449 hash
Start Date
November 14, 1910
Location
Brunswick, Maryland (39.314, -77.628)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
0bbbdddb59eea465

Response Measures

None

Events (5)
1. November 14, 1910 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Examination revealed a shortage of about $10,000 tied to cashier William Schnauffer's accounts; ordered closed by state bank commissioner.
Newspaper Excerpt
The Savings Bank at Brunswick, Frederick County, Md., was to-day closed by order of State Commissioner J. Dukes Downes.
Source
newspapers
2. November 18, 1910 Receivership
Newspaper Excerpt
application to Judge John C. Motter for the appointment of receivers... John C. Motter and John S. Newman have been appointed receivers by the Court under bond of $50,000.
Source
newspapers
3. January 14, 1911 Other
Newspaper Excerpt
That the Savings Bank of Brunswick is hopelessly insolvent is the report of John S. Newman and Millard Shafer.
Source
newspapers
4. August 18, 1911 Other
Newspaper Excerpt
The court has granted permission to the receivers of the Brunswick (Md.) Savings Bank to make a distribution of 33 1-8 per cent to depositors.
Source
newspapers
5. December 19, 1911 Other
Newspaper Excerpt
Receivers ... announced that another distribution will be made to depositors after Dec. 19; creditors will then receive a payment of 25 per cent.
Source
newspapers

Newspaper Articles (17)
1. November 15, 1910 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, November 15, 1910

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Article Text

SHORTAGE OF OVER $10,000. Books of the Savings Bank of Brunswick, Md., Examined. Brunswiek, Md., Nov. 14.-A shortage of over $10,000 was revealed today by an examination of the books of the Savings Bank of Brunswick and the bank was ordered closed by the state bank commissioner. The bank was organized in 1892 and has no capital stock. The deposits amount to $200.000. made up mostly of the savings of railroad men and farmers. A. G. Horine is president, but the bank seems to have been run almost entirely by the cashier, William Schnauffer.

2. November 15, 1910 The Washington Herald Washington, DC
Article from The Washington Herald, November 15, 1910

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Article Text

FIND BANK SHORTAGE. State Officials Close Savings Institution Near Baltimore, Baltimore, Nov. 14.-The Savings Bank at Brunswick, Frederick County, Md., was to-day closed by order of State Commissioner J. Dukes Downes. This action was taken when a 'shortage of $10,000 was discovered in the accounts of William Schnauffer, the cashier of the bank. The bank was organized in 1892 and has no capital stock. The deposits amount to $200,000, made up mostly of the savings of railroad men and farmers. A. G. Horine is president, but it seems to have been run almost entirely by the cashier. It is said that there has not been a meeting of the board of directors in the last two years. When the examination was begun a few days ago the cashier disappeared and was not seen again for two or three days. When he returned home he declared he did not know where he had been, and he is now said to be under the care of two physicians.

3. November 15, 1910 The Washington Times Washington, DC
Article from The Washington Times, November 15, 1910

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Article Text

BANK IS CLOSED BY $10,000 SHORTAGE Maryland Institution Sufferer From Cashier, Who Says "He Can't Remember." BALTIMORE, Nov. 15.-Following the discovery of a shortage of $10,000 in the accounts of William Schnauffer, cashier, the Savings Bank at Brunswick, Frederick county, Md., has been closed by order of State Commissioner J. Duke Downes. The bank was organized in 1892 and has no capital stock. A. G. Horine is president, but the institution, it is said, was run almost entirely by the cashier. Schnauffer disappeared for several days after the bank had begun an exan.ination of his books, and when he returned said be did not know where he had been.'

4. November 18, 1910 The Citizen Frederick, MD
Article from The Citizen, November 18, 1910

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Article Text

Brunswick Savings Bank Closes Doors. Deputy State Banking Commissioner of Motter the as affairs a result of the of a Brunswick recent examination Savings Bank, ordered a discontinuance of business of that institution, until a full examination of its affairs could be made; when interviewed relative to the matter he said: He was unable to give the amount of loss or precisely when the discrepancy occured. Mr. William Schuaufler, who has been no could cashier give since the idea organization how the irregularities of the bank, crept into the accounts. He was under the care of a physician. Besides Mr. Schnauffer there are employed in the bank two girls and one bookkeeper. The closing of the bank comes as a great surprise in banking circles. The Brunswick bank was organized in 1892 with nine directors. Although no statement has ever been issued it has always been thought the bank was accumulating a surplus along with the healthy growth of deposits. It IS known that the business of the bank has grown considerably. The directors of the bank at present are Dr. A. G. Horine, Messrs, F. E. Alder and William Schnauffer, and it is said they have never held a meeting. The bank was organized when there was no banking law and it is said the methods used in bookkeeping were very loose. There were no stockholders or weekly deposits. The closing of the bank is the result of the new banking law, passed at the recent legislature. The savings banks under it are required to be examined the same as national banks which formerly was not required. Following the examination of the assistant Bank Examiner. Messrs: A. G. Horine, F. G. Alder and wife, and Wm. L. Gross made application to Judge John C. Motter for the appointment of receivers pending an investigation of complications in the bank's accounts, and Messrs. John C. Motter, of I., and John S. Newman have been appointed receivers by the Court under bond of $50,000. The applicants for the appointment of receivers, Messrs. Arlington G. Horne, Frank G. Alder and wife, and William L. Gross, have the following sums deposited in the bank respectively: about $500 non-interest-bearing deposits; about $3300 interest-bearing and between $600 and $700 non-interest bearing deposits; and about $750 of non-interest bearing deposits.

5. January 14, 1911 The Washington Times Washington, DC
Article from The Washington Times, January 14, 1911

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Article Text

Hopelessly Insolvent. FREDERICK, Md., Jan. 14.-That the Savings Bank of Brunswick is hopelesslv insolvent is the report of John S. Newman and Millard Shafer. the receivers. According to their report the cashier, William Schnauffer, had overdrafts in his personal account to the extent of $26,075.78. Other overdrafts amounted to $12,780.99.

6. January 21, 1911 Martinsburg Herald Martinsburg, WV
Article from Martinsburg Herald, January 21, 1911

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New Bank For Brunswick, A move has been suggested looking to the organization of a new bank to succeed the Brunswick Savings Bank, now in the hands of receivers. A well known citizen of Brunswick, Md., who has taken the initiative, points out that "the unfortunate closing of the Savings Bank, under the conditions which surround it, has greatly affected the financial status of the town, and has dealt a blow that only prompt and decisive action can repair."

7. February 17, 1911 The Citizen Frederick, MD
Article from The Citizen, February 17, 1911

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Article Text

Experiencing Difficulty. Considerable difficulty is being experienced by john S. Newman and Millard F. Shafer, receivers of the Brunswick Savings Bank, in liquidating the affairs of that institution. One of the latest obstacles met with is the fact that considerable number of the notes representing indebtedness to the bank are held by persons whose domiciles are across the line in Virginia, in which State many of the depositors live. Several of the depositors mentioned have attached the notes held in their State, claiming that these assets of the bank are outside of the jurisdiction of the receivers, and they are in a position for that reason to make themselves preferred creditors. which claim if allowed by the court, will lessen the amount of the ultimate dividend to the other stockholders. In order to thwart the plans of the depositors in Virginia, application has been made to the court for the appointment of an auxiliary receiver in Virginia.

8. April 7, 1911 The Citizen Frederick, MD
Article from The Citizen, April 7, 1911

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Article Text

Brunswick Savings Bank Depositors File Claims. Claims of nearly $150,000, running from small amounts to $9,000, have been filed in the Clerk's office against the defunct Brunswick Savings Bank. In many cases the amounts represent the life savings of hard-working persons. Since notice from the receivers that all claims must be filed at the Court House before the first distribution of the 25 per cent. can be made about 37° depositors out of à total of more than 1,000 have-filed their claims. As everyone in town is anxious to get what is coming to him as soon as possible it is expected that there will be a rush to file claims this week.

9. April 10, 1911 The Daily Banner Cambridge, MD
Article from The Daily Banner, April 10, 1911

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# News Of The State. Cumberland, Md., April 10-Not a little excitement has been created in this vicinity by the actions of the Holy Rollers, a religious sect that is holding meetings of unusual devotional zeal in South Cumberland. The meetings are being conducted in a small building near the Baltimore and Ohio railroad crossing and as many as 500 persons at times surround the building, being attracted by the unusual practices of the sect. One man who ventured inside of the building to watch the proceedings was roughly handled. Brunswick, Md., April 10.-William Schnauffer, formerly cashier of the defunct Brunswick Savings Bank, has recently received a number of letters demanding that he place sums of money at points named in the letters. Like a crash out of a clear sky came the announcement several months ago that the bank had been closed by the State Bank Commissioner, and after an investigation it was found that it was hopelessly involved. Some of the directors had not attended a meeting for years and the whole system employed was complicated and antiquated. Interest had been permitted to run on much of the paper for years without any attempt to collect it or to secure new paper in its place. Ridgely, Md., April 10-The Farmers and Merchants Telephone Co. will erect a concrete building on Central avenue, Ridgely, in which the telephone exchange will be located. The Farmers and Merchants Co. have leased the lines of the Diamond State Telephone Co. Goldsboro, Md., April 10-The directors of the Goldsboro Bank have decided to erect a new banking building. The Goldsboro Bank is only about two years old, but has been quite successful. Kent Island, Md., April 10.-Patrons of the public schools on Kent Island are endeavoring to have the School Board locate a High School at that place; they have more pupils than many other places having high schools, and besides have not the same access to such schools as many other places. Ridgely, Md., April 10-The citizens of this place will determine at the Town Election to be held the 24th of this month whether or not the town is to build a sewerage system. The vote will be upon the question of bonding the town for making the improvements. Centreville, Md., April 10-A meeting in behalf of woman's was held in the Court House here this evening and was largely attended. Much interest is being manifested in the subject by many prominent citizens of the town, and it would not be surprising to see some action taken to place the matter up to the candidates in the next general election. Rising Sun, Md., April 10. Mrs. Naomi Sprout, wife of Frederick Sprout, and the daughter of W. H. Gross, a well-known Pilot merchant, died of pneumonia, aged 20 years. Mr. and Mrs. Sprout had only been married a week. Belair, Md., April 10-The funeral of Rev. S. A. Hoblitzell, the aged Methodist Protestant minister who died last week, filled to overflowing Grace Methodist Protestant Church Sunday. Mount Arrarat Lodge of Masons, of which the deceased had been a member for a number of years, had charge of the funeral services. Cumberland, Md., April 10.-A man clad only in a tattered undershirt, with his legs and body lacerated by briars, and with a growth of beard indicating that he had been wandering around for many weeks, was found by a crew of a Baltimore and Ohio railroad freight crew. The man was taken into the caboose and clothed and brought here, where he was fed, and an effort is being made to find out something about him. From his talk, which is wild and incoherent, it is believed that he is from Buffalo. New York. A Reliable Medicine--Not a Narcotic Mrs. F. Marti, St. Joe, Mich., says: "Our little boy contracted a severe bronchial trouble and as the doctor's medicine did not cure him. I

10. May 13, 1911 Martinsburg Herald Martinsburg, WV
Article from Martinsburg Herald, May 13, 1911

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DEPOSITORS DISAPPOINTED. Expected First Payment By Brunswick Bank Postponed. Brunswick, Md., May 11.-Hundreda of depositors of the defunct Brucaswick Savings Bank are dismayed over the prospect of long proceedings in court before the first distribution of deposits. It was hoped that the initial payment of 25 per cent. was close at hand, but proceedings were begun which, it is understood here, will delay matters for am indefinite time. Since last December more than $230,000, chiefly belonging to residents of this place, has been tied up. Nearly two months ago announcement was made that sufficient funds had been collected by the receivers to pay depositors 25 per cent. of their accounts. This crumb of comfort was looked forward to with expectation, and many thought the first payment would be made in a few days. Last right, however, the situation seems changed. Those who appeared in court yesterday seem to think the matter will eventually be taken to the Court of Appeals.

11. August 18, 1911 Evening Star Washington, DC
Article from Evening Star, August 18, 1911

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The court has granted permission to the receivers of the Brunswick (Md.) Savings Bank to make a distribution of 33 1-8 per cent to depositors.

12. September 29, 1911 The Citizen Frederick, MD
Article from The Citizen, September 29, 1911

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Treasurer Schnauffer Under $5,000 Bail. William Schnauffer, treasurer and head of the closed Brunswick Savings Bank, was arrested at his home on Saturday last charged with embezzlement and exhibiting false and fraudulent papers to Deputy Bank Examiner John C. Motter, of 1. He was brought to this city, taken before the court and released by Judge Urner on $5,000 bail, $2,500 in each case. His brother-in-law, Dr. Levin West, became his bondsman. The arrest was the outcome of an investigation by the late grand jury. An indictment was returned and a warrant was issued by the clerk of the court for his arrest It was served by Deputy Sheriff Myers, of Brunswick, who found him at home. The arrest became known soon after the warrant was served. Mr. Schnauffer immediately notified his family and Dr. West and the deputy came to Frederick. During the proceedings Schnauffer was nervous and seemed under a heavy strain. After being released he returned to Brunswick The arrest involves Schnauffer in the failure of the bank. which closed its doors last December. It is charged that upon being confronted by Examiner Motter with irregularities he exhibited a paper and made statements purporting that the bank was solvent, and that the irregulariAt ties could be corrected in a few days. his request the bank examiner allowed him a week to correct the trouble. and in the meantime a number of large deposits are said to have been made. The irregularities, however, could not be corrected, but became more serious as the investigation progressed. The charge of embezzlement is based upon overdrafts which Schnauffer is said to have allowed It. is understood that the amount specified is $30. His friends say he is innocent and that he will be able to clear himself of the charges. They ascribe the failure entirely to careless business methods and overconfidence in lending cash on notes. It is known that his own family lost with other depositors and since the failure he has made over to the trustees what little property he had in his own name. At the time the bank closed there were deposits amounting to $230,000. Receivers John S. Newman and Millard F. Shafer have made a distribution of 33 1/3 per cent. to depositors, with prospects of finally paying 50 per cent. Following the failure an expert accountant was several weeks untangling the bank's affairs. Between 700 and 800 notes were found where money had been loaned and no attempt made to collect the interest. In some cases the notes were out of date. Schnauffer's personal account was overdrawn to a large extent. This was due to having given checks under his own indorsement for all expenses connected with the business. Nothing has ever been found to judicate that he misappropriated a cent. The careless method f conducting the bank was disclosed by the new savings bank law. Much sympathy is expressed for Schnauffer. He came to Brunswick from Baltimore 18 or 20 years ago and established the bank. He took a prominent part in the advancement of the town and was generous to its citizens. Last year mention was made of his name as a candidate for Congress, but he declined to run. He is a member of the Episcopal Church, is married and has four children. Montgomery County Matters. The will of Col. Augustus W. Dorsey, the Confederate soldier who died recently at his home, near Brookeville. this county. It has been admitted to probate here. disposes of an estate valued at about $10,000, the beneficiaries being relatives of the testator's wife, who died several years ago. It gives $1,000 each to Margaret Dorsey Brightwell, Mary Brightwell. John Brightwell and Ruth Owens, of Washington; Lucy Dorsey. of Baltimore, and Margaret O. Magruder. of this county. The sword and pistol used by Colonel Dorsey during the war are left to Frank Dorsey, of Baltimore. The resi due is bequeathed to Margaret Dorsey Brightwell and Mary Brightwell. Leonard I. Weer. of Brookeville, is made executor. King's Distillery, at King's Valley, this county. was destroyed by fire abont IO o'clock Friday night, entailing a loss of about $5,000, only one third of which was covered by insurance. By hard work the flames were kept from spreading to warehouses 50 yards away, containing nearly of 1,000 barrels of whiskey. The cause be the fire is not known. The distillery longed to John R. Lewis, a grandson of the late Luther King, who conducted the business for many years.

13. September 29, 1911 The Citizen Frederick, MD
Article from The Citizen, September 29, 1911

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Treasurer Schnauffer Under $5,000 Bail. William Schnauffer, treasurer and head of the closed Brunswick Savings Bank, was arrested at his home on Saturday last charged with embezzlement and exhibiting false and fraudulent papers to Deputy Bank Examiner John C. Motter, of I. He was brought to this city, taken before the court and released by Judge Urner on $5,000 bail. $2,500 in each case. His brother-in-law, Dr. Levin West, became his bondsman. The arrest was the outcome of an investigation by the late grand jury. An indictment was returned and a warrant was issued by the clerk of the court for his arrest It was served by Deputy Sheriff Myers, of Brunswick, who found him at home. The arrest became known soon after the warrant was served Mr. Schnauffer immediately notified his family and Dr. West and the deputy came to Frederick. During the proceedings Schnauffer was nervous and seemed under a heavy strain. After being released he returned to Brunswick The arrest involves Schnauffer in the failure of the bank. which closed its doors last December. It is charged that upon being confronted by Examiner Motter with irregularities he exhibited a paper and made statements purporting that the bank was solvent, and that the irregularities could be corrected in a few days. At his request the bank examiner allowed him a week to correct the trouble. and in the meantime a number of large deposits are said to have been made. The irregularities, however, could not be corrected, but became more serious as the investigation progressed. The charge of embezzlement is based upon overdrafts which Schnauffer is said to have allowed It is understood that the amount specified is $30. His friends say he is innocent and that he will be able to clear himself of the charges. They ascribe the failure entirely to careless business methods and overconfidence in lending cash on notes. It is known that his own family lost with other depositors and since the failure he has made over to the trustees what little property he had in his own name. At the time the bank closed there were deposits amounting to $230,000. Receivers John S. Newman and Millard F. Shafer have made a distribution of 33½ per cent. to depositors, with prospects of finally paying 50 per cent. Following the failure an expert accountant was several weeks untangling the bank's affairs. Between 700 and 800 notes were found where money had been loaned and no attempt made to collect the interest. In some cases the notes were out of date. Schnauffer's personal account was overdrawn to a large extent. This was due to having given checks under his own in dorsement for all expenses connected with the business. Nothing has ever been found to iudicate that be misappropriated a cent. The careless method f conducting the bank was disclosed by the new savings bank law. Much sympathy is expressed for Schnauffer. He came to Brunswick from Baltimore 18 or 20 years ago and established the bank. He took a prominent part in the advancement of the town and was generous to its citizens. Last year mention was made of his name as a candidate for Congress, but he declined to run. He is a member of the Episcopal Church, is married and has four children. Montgomery County Matters. The will of Col. Augustus W. Dorsey, the Confederate soldier who died recently at his home, near Brookeville. this county. has been admitted to probate here. It disposes of an estate valued at about $10,000, the beneficiaries being relatives of the testator's wife, who died several years ago. It gives $1,000 each to Margaret Dorsey Brightwell, Mary Brightwell, John Brightwell and Ruth Owens, of Washington; Lucy Dorsey. of Baltimore, and Margaret O. Magruder. of this county. The sword and pistol used by Colonel Dorsey during the war are left to Frank Dorsey, of Baltimore. The residue is bequeathed to Margaret Dorsey Brightwell and Mary Brightwell. Leonand I. Weer, of Brookeville, is made executor. King's Distillery, at King's Valley, this county, was destroyed by fire abont 10 o'clock Friday night, entailing a loss of about $5,000, only one third of which was covered by insurance. By hard work the flames were kept from spreading to warehouses 50 yards away, containing nearly 1,000 barrels of whiskey. The cause of the fire is not known. The distillery be longed to John R. Lewis, a grandson of the late Luther King, who conducted the business for many years. Erederic's

14. September 30, 1911 Martinsburg Herald Martinsburg, WV
Article from Martinsburg Herald, September 30, 1911

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# BANK CASHIER IS HELD UNDER BOND OF $5,000 Wm. Schnauffer, of Brunswick Savings Bank, Indicted at Frederick on Two Charges. William Schnauffer, for years the cashier of the Savings Bank at Bruns- wick, which about a year ago went into the hands of receivers, was yes- terday arrested at Brunswick and brought to Frederick. There are two indictments against him, one for em- bezzlement and another for exhibiting false and fraudulent papers to the deputy banking commissioner of Mary- land. Schnauffer was taken before Judge Urner who held him in the sum of $2,500 bail on each indictment, of $5,000 in all. Bail was furnished by Dr. Levin West, his brother-in-law. Schnauffer ever since the bank went into the hands of receivers has been living at the home of Dr. West. After the failure of the bank he transferred to the receivers of the bank, John S. Newman and Milliard F. Shafer, all the property he had.

15. December 15, 1911 The Citizen Frederick, MD
Article from The Citizen, December 15, 1911

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Another Payment to Brunswick Depositors Receivers John S. Newman and Millard F. Shafer, of the closed Brunswick Savings Bank, announced that another distribution will be made to depositors after Dec. 19. Dreditors will then receive a payment of 25 per cent., which with the 33 1/3 per cent., distributed some weeks ago. makes a total of 581/3 per cent., of their deposits. At the first distribution, $80,070.04 was paid out. The receivers have since collected $58,618.03 making a total of $138,688.07. When the bank was closed 823 depositors had combined accounts of $218,366.93. The receivers expect to collect enough funds to make another distribution, of perhaps 6 or 8 per cent. I he bank building, said to be worth $8.000 or $10,000 has not been sold. and the question of further collection on notes cannot be estimated. Some are barred by limitation. but in most cases holders have shown a disposition to pay their indebtedness without resorting to law.

16. July 5, 1912 The Citizen Frederick, MD
Article from The Citizen, July 5, 1912

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Postoffice Building Leased. The closed Brunswick Savings Bank was leased by Government officials and will be the town's new postoffice. It is situated on High street and was recently sold by receivers for $8,150. The new building will increase facilities for hand ling the town's growing volume of mail

17. January 14, 1913 Evening Star Washington, DC
Article from Evening Star, January 14, 1913

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Receivers of the closed Brunswick, Md., Savings Bank were given a verdict Monday of $4,200 by a jury against Victor A. Kapan, a Brunswick merchant. The latter was sued on a number of overdue notes and pleaded limitation.