North Penn Bank - Philadelphia, PA

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: June 9, 1919
Location: Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model: gpt-5-mini
Short Digest: 3d1be8f4

Response Measures

None

Description

Article (Evening Public Ledger, 1919-08-02) describes North Penn Bank as insolvent, payments made after insolvency, dishonored checks and a large shortage ($2,144,000). No explicit mention of a public depositor run; evidence points to insolvency and closure/receivership. I infer suspension/closure (failure) rather than a run. Dates for dividend payments are given; the last dishonored payments occurred after June 9, 1919.

Events (2)

1. June 9, 1919 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank was already insolvent (insolvency began ~20 months earlier); dividends paid from another firm's funds; resulted in a shortage of $2,144,000 and dishonored checks in June 1919.
Newspaper Excerpt: Three dividends were paid to the stockholders after the institution became insolvent.... Semiannual payments were made on June 9, 1918; January 9, 1919, and June 9, of this year.... The last checks sent out were dishonored.
Source: newspapers

2. * Receivership

Newspaper Excerpt: It is understood the money came from funds of the Pittsburgh Life and Trust Company, amounting to $402,000, deposited in the bank by Charles A. Ambler... Against this account the receiver constantly drew checks to the beneficiaries... Three dividends were paid to the stockholders after the institution became insolvent... the insolvency began twenty months ago... the crash... resulted in a shortage of $2,144,000.
Source: newspapers

Newspaper Articles (1)

1. August 2, 1919 Evening Public Ledger Philadelphia, PA

Article from Evening Public Ledger, August 2, 1919

Click image to open full size in new tab

Article Text

DIVIDENDS PAID FROM INSURANCE FUNDS North Penn Officials Made Three Semiannual Payments The method pursued by officials of the North Penn Bank. by which they paid lividends to stockholders. was explained oday by one of the state probers. It is understood the inoney came from funds of the Pittsburgh Life and Trust Company, amounting to $402,000. de. posited in the bank by Charles A. Ambler. former insurance commissioner. Against this account the receiver constantly drew checks to the beneficiaries, but there was a large sum against which 10 claims were made. It was from this money that the dividends were paid. recording to the state official. Three dividends were paid to the stockholders after the institution bename insolvent. That fact was revealed " officials investigating the erash. which resulted in a shortage of $2.144, 000. Semiannual payments were made on June 9. 1918: January 9. 1919. and June 9. of this year. although according to the sworn statement made by Robert P. Ferguson. bank examiner. the insolvency began twenty months ago. On January 9. of this year. Moyer sent out a polite letter with the check. although the bank was then hopelessly involved. The last checks sent out were dishonored. because even with all of the jugglery then practiced At the bank no funds could be found to pay the semiannual dividend of 3 per cent. The notice in January read: Inclosed please find check for semiannual dividend of 3 per cent on the stock of this bank standing in your name payable today. Please deposit same at your earliest convenience. The proper indorsement of this check will be sufficient acknowledgment of receipt. Respectfully yours. R. T. MOYER. Cashier.