Lincoln County Trust Company (Wiscasset, ME)

Episode Information

Episode UID
52017371479
Episode Type
Suspension → Closure
Bank Type
trust
Bank ID
5201737 routing
Routing Number
52-0173
Start Date
March 14, 1923
Location
Wiscasset, Maine (44.003, -69.666)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
da446793901f95b8

Response Measures

None

Events (2)
1. March 14, 1923 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Insolvency caused by heavy depreciation in certain securities and losses tied to Burgess, Lang & Co.'s failure.
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 ... appointed W. C. Day of Wiscasset and Walter S. Glidden of Bath as receivers ... 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.
Source
newspapers

Newspaper Articles (10)
1. March 14, 1923 New Britain Herald New Britain, CT
Article from New Britain Herald, March 14, 1923

Click image to open full size in new tab

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

Click image to open full size in new tab

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

Click image to open full size in new tab

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

Click image to open full size in new tab

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. March 30, 1923 Portland Press Herald Portland, ME
Article from Portland Press Herald, March 30, 1923

Click image to open full size in new tab

Article Text

WISCASSET BANK RECEIVERS NAMED Special Despatch to The PRESS HERALD Augusta, March 29—Walter S. Glidden of Bath and Wesley C. Day of Wiscasset were today appointed co-receiver of the Lincoln County Trust Company of Wiscasset by Chief Justice Cornish, before whom a hearing was held on the petition of Fred F. Lawrence, State Bank Commissioner, asking for liquidation of the affairs of the company. The receivers gave bonds of $25,000 each for the performance of their duties. W. D. Patterson of Wiscasset was appointed one of the two commissioners to hear and report on same. The appointment of the other commissioner will be made directly.

6. March 30, 1923 Portland Press Herald Portland, ME
Article from Portland Press Herald, March 30, 1923

Click image to open full size in new tab

Article Text

WISCASSET BANK RECEIVERS NAMED Special Despatch to The PRESS HERALD Augusta, March 29—Walter S. Glidden of Bath and Wesley C. Day of Wiscasset were today appointed co-receiver of the Lincoln County Trust Company of Wiscasset by Chief Justice Cornish before whom a hearing was held on the petition of Fred F. Lawrence, State Bank Commissioner, asking for liquidation of the affairs of the company. The receivers gave bonds of $25,000 each for the performance of their duties. W. D. Patterson of Wiscasset was appointed one of the two commissioners to hear and report on same. The appointment of the other commissioner will be made directly.

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

Click image to open full size in new tab

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.

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

Click image to open full size in new tab

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."

9. December 29, 1925 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, December 29, 1925

Click image to open full size in new tab

Article Text

Assessment 100 Per Cent Asked Stock Holders Lincoln Trust Wiscasset. Dec. 28.-Stockholders of the former Lincoln Country Trust Company have been notified by the receivers that they will be expected to contribute 100 per cent of the par value of their holding to help liquidate obligate obligations of the bank. Nearly half the stock was owned by the broker firm of Burgess, Lang & Co. of Boston, which is also bankrupt and consequently can not be expected to be assessed. The question arises whether the solvent stock holders are liable "severally and separately," for the bankrupt owners. It is expected that the last 20 per cent dividends due the savings account depositors will be paid in a few weeks and thereafter the assets and whatever is derived from the assessments of stock holders will be applied to the checking account deposits.

10. February 9, 1926 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, February 9, 1926

Click image to open full size in new tab

Article Text

Receivers Lincoln Trust Co. Pay Third Dividend to Depositors Wiscasset, Feb. 8.-(Special)-Today the receivers of the Lincoln County Trust Company now being liquidated began paying the third dividend to savings depositors only. The dividend is of 10% which with the two previously paid makes a total of 90% paid saving depositors. The Lincoln County Trust Company was closed in March 1923 by order of court on petition of the Bank Commissioner. The bank was found to be insolvent and ordered liquidated after an effort on the part of local citizens to reorganize was abandoned as being inadvisable. This bank was one of a chain of banks controlled by the banking house of Burgess, Lang & Company which a year before the closing of this bank became bankrupt. The Lincoln County Trust Company had deposits of $445,000, about $360,000 of which were savings deposits. Long drawn out litigation has extended the time of liquidation and even at this time several cases are pending before the State Supreme Court. A poor investment policy and the dumping on the bank of securities by the controlling interest are said to have brought about the bank's insolvency. Thousands of dollars worth of securities held by the bank netted the receivers less than 10 cents on a doflar. Stockholders of the bank have been assessed by the Court a full 100% of the par value of their stock and the receivers issue a call to stockholders to comply with that assessment by February 1st. Up to this time the sum of $8800 has been paid in to the receivers. The Company's capitalization was $50,000, nearly half of that sum was owned by the Burgess-Lang interest and they being bankrupt little hope is felt that anything can be collected from them on this assessment. A Supreme Court decision established that with the exception of the bank's real estate, and cash on hand all its assets were segregated for the protection of the savings depositors who will receive without doubt 100% while any remainder after paying the expenses of liquidation will be distributed among the checking deposits. With cases still in the trial courts which it seems certain will be taken to the Law Court for decision the final accounting of the receivers appears to still be a long way off. The receivers are Walter S. Glidden of Bath and Carl M. P. Larrabee of Wiscasset. At the time of closing the officers of the Lincoln County Trust Company were: President, Dr. A. M. Card of Alna; vice president, William D. Patterson of Wiscasset: treasurer, Wesley C. Day, now of Norway. The local members of the board of directors were, Richard H. T. Taylor, S. J. Sewall and W. G. Hubbard and Mr. Patterson.