Central Trust Company (Frederick, MD)

Episode Information

Episode UID
65003171581
Episode Type
Suspension → Closure
Bank Type
trust
Bank ID
6500317 routing
Routing Number
65-0031
Start Date
September 3, 1931
Location
Frederick, Maryland (39.414, -77.411)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
cf196bde3780b16d

Response Measures

None

Description

Closure placed in hands of State banking commissioner and receiver with assets slated for liquidation; later reorganization efforts occurred but bank remained defunct.

Events (3)
1. September 3, 1931 Receivership
Newspaper Excerpt
The State banking commissioner took possession of the bank yesterday ... Page was appointed receiver by Chief Justice Hammond Urner yesterday afternoon at the request of W. Preston Lane, State Attorney General.
Source
newspapers
2. September 3, 1931 Suspension
Cause
Government Action
Cause Details
Directors turned affairs over to the State banking commissioner who took possession amid continuing depression and frozen assets; commissioner/receiver control instituted.
Newspaper Excerpt
Doors of the Central Trust Company of Frederick and 12 branches ... were closed today. Decision not to open the bank was announced following a special meeting of the directors of the institution last night. George W. Page, state banking commissioner, has taken possession of the institution
Source
newspapers
3. September 28, 1931 Other
Newspaper Excerpt
Withdrawals heavy, says commercial head ... two more Maryland banks and three branch institutions closed their doors today ... following the closing on September 3 of the Central Trust Co. ... a steady seepage of deposits since the failure of the Central Trust Co. is responsible for the bank's closing.
Source
newspapers

Newspaper Articles (23)
1. September 3, 1931 Times Herald Washington, DC

Article Text

STATE TAKES OVER BIG CHAIN Central Trust of Frederick Is Parent Concern; Assets Frozen Because of Slump FREDERICK, Md., Sept. 3. Doors of the Central Trust Company of and 12 branches which it controls in this part of the state were closed today. Decision not to open the bank was announced following a special meeting of the directors of the institution last night. George W. Page, state banking commissioner, has taken possession of the institution and with a staff of deputies and bank ex aminers is investigating the af fairs the parent company and its subsidiaries. Depression Blamed The Central Trust Company had deposits of $2,568,054.71 and resources were listed in the last statement as $18,603,744.61. The bank is capitalized at $1,000,000 and claimed a surplus of $1,500,000. The 12 branches of the Central Trust Company are located in Smithburg. Woodboro, Emmits burg. Thurmont, Union Bridge, ville. Ellicott City Monrovia. Walkersville, and Sykesville Reports that the bank had failed because of heavy runs by depositors were denied by Emory L. Coblentz. president. who said that the directors had decided to turn over the affairs of the institution to the State banking commissioner because of the "continuing business depression. Coblentz. who is also State senator, said there had been "a steady seepage of deposits' due primarily to shaken confidence following "the miserable publicity" to which he had been "personally sub jected in connection with the investigation of the affairs of Washington real estate firm." He was, it is believed. referring to the affairs of the F. H. Smith Company. He is under a perjury indictment in connection with the prosecution by the Der partment of Justice of officials of the real estate concern, failure of which caused losses to thousands With C. Bryan Pitts, president

2. September 3, 1931 The Washington Times Washington, DC
Article from The Washington Times, September 3, 1931

Click image to open full size in new tab

Article Text

STATE TAKES OVER BIG CHAIN Central Trust of Frederick Is Parent Concern; Assets Frozen Because of Slump FREDERICK, Md., Sept. 3. Doors of the Central Trust Company of Frederick and 12 branches which it controls in this part of the state were closed today. Decision not to open the bank was announced following a special meeting of the directors of the institution last night. George W. Page, state banking commissioner, has taken possession of the institution, and with a staff of deputies and bank examiners is investigating the affairs of the parent company and its subsidiaries, Depression Blamed The Central Trust Company had deposits of $2,568,054.71 and resources were listed in the last statement as $18,603,744.61. The bank is capitalized at $1,000,000 and claimed a surplus of $1,500,000. The 12 branches of the Central Trust Company are located in Smithburg, Woodboro, Emmitsburg, Thurmont, Union Bridge, Middletown, Myersville, Poolesville, Ellicott City, Monrovia, Walkersville, and Sykesville. Reports that the bank had failed because of heavy runs by depositors were denied by Emory L. Coblentz, president, who said that the directors had decided to turn over the affairs of the institution to the State banking commissioner because of the "continuing business depression." Coblentz, who is also State senator, said there had been "a steady seepage of deposits" due primarily to shaken confidence following "the miserable publicity" to which he had been "personally subjected in connection with the investigation of the affairs of a A Washington real estate firm." He was, it is believed, referring to the affairs of the F. H. Smith Company. He is under a perjury indictment in connection with the prosecution by the Department of Justice of officials of the real estate concern, failure of which caused losses to thousands investors. With C. Bryan Pitts, president (Continued on Page 2, Col. 2)

3. September 4, 1931 Evening Star Washington, DC
Article from Evening Star, September 4, 1931

Click image to open full size in new tab

Article Text

COMMUNITY BANKS PLANNED BY HEADS OF DEFUNCT CHAIN Conversion of 11 Branches Into Independent Units Sought by Directors. By a Staff Correspondent of The Star. FREDERICK, Md., September 4.-A plan of reorganization having as its principal feature the elimination of the chain system of banking was being considered today by the directors of the Central Trust Co. of Maryland, which, with 11 branch banks in nearby Maryland towns, went into the hands of receivers yesterday. While the directors were struggling with their reorganization plans, the affairs of the Central Trust Co. were in the hands of George W. Page, State (Continued on Page 2, Column 1.)

4. September 4, 1931 The Washington Times Washington, DC
Article from The Washington Times, September 4, 1931

Click image to open full size in new tab

Article Text

COBLENTZ BANK WON'T TRY TO REORGANIZE Directors Abandon Plan as Receiver Reveals Assets Be to Are Liquidated FREDERICK, Md., Sept. 4. Plans for reorganization of the Central Trust Company, which, with 12 branches in five nearby Maryland counties, closed yesterday, have been abandoned by the directors following the announcement of George W. Page, State banking commissioner, that the assets are to be liquidated and the bank is to go out of business. Deposits of more than $14,000,000 have been tied up in this county. This includes at least a third of the Frederick county funds. It is not revealed whether these sums are protected by a surety bond, but about $300,000 of State money and $50,000 of Montgomery county funds in the Poolesville branch are protected. Page As Receiver The State banking commissioner took possession of the bank yesterday following decision of the directors to place the affairs of the institution in his department. Mr. Page was appointed receiver by Chief Justice Hammond Urner yesterday afternoon at the request of W. Preston Lane, State Attorney General. Emory L. Coblentz, State Senator, and president of the Central Trust Company, said too large a pr portion of the institution's assets consists of real estate in a "frozen condition." He said: "This is particularly true with reference to the loans of several borrowing companies which have large real estate holdings in Washington, whe.e values have been abnormally depressed."

5. September 28, 1931 Evening Star Washington, DC
Article from Evening Star, September 28, 1931

Click image to open full size in new tab

Article Text

Frederick and Hagerstown Failures Are Traced to Central Trust. WITHDRAWALS HEAVY, SAYS COMMERCIAL HEAD Board of Directors Requests State Commissioner to Take Charge Immediately. Special Dispatch to The Star. FREDERICK, Md., September 28.Affected indirectly by the recent failure of the Central Trust Co. of Frederick and its 11 branches, two more Maryland banks and three branch institutions closed their doors today. The institutions which failed to open this morning are the Mechanics Loan and Savings Bank of Hagerstown and the Commercial Bank of Maryland, at Frederick. The latter bank has branches at Adamstown, Jefferson and Mount® Airy, which also were closed. It was understood both of the banks closed today sustained heavy withdrawals of deposits following the closing on September 3 of the Central Trust Co. and its branches, operated by Emory L. Coblentz. Casper C. Cline, president of the Commercial Bank of Maryland, issued the following statement: Board Orders Action. "Foliowing the closing of the Central Trust Co. of Maryland and 11 branches on September 3. various rumors and gossip of a damaging nature have been circulated about this institution, causing large withdrawals and the giving of notices for a very considerable amount of time-deposit money soon due for payment. It was ordered by the board of directors at a special meeting this morning that we request the bank commissioner of Maryland to take charge of the bank immediately. "This action was felt necessary to protect interests of all depositors and stockholders. Notwithstanding the present deflation and unusual depression through which we are passing, we believe the depositors should receive the amounts due them. It is most regretable, indeed, that this action has been found necessary, but every possible effort has been made to prevent it and no other prudent course remains open in fairness to depositors and stockholders. Consideration may be given to a plan of reorganization, but nothing definite can be stated at this time." Capitalized for $400,000. Mr. Cline's bank is capitalized for $400,000 and has resources of $3,200,000. This would make its deposits amount to approximately $2,080,000. A notice on the door of the Mechanics' Loan & Savings Bank stated that "This institution is in the hands of the State bank commissioner." The directors of the Mechanics' Loan & Savings Bank, at Hagerstown, issued this statement: "We announce with regret that we have felt it necessary to suspend the business of the Mechanics Loan & Savings Bank for the protection of our depositors and for the best interests of our many stockholders. During the past two years we have been suffering from the effects of the general depression existing throughout the Nation, and the unusual demands made upon this institution by its depositors have depleted its more liquid assets. "On July 1, 1930, the deposits of our bank were nearly $3,000,000, and at the close of business last Saturday we had on deposit a total of $1,970,632. We have endeavored to be conservative in the management of our institution and have tried to render at all time to this community efficient banking service. "It was impossible to liquidate our mortgages and other investments rapidly enough to meet the unusual demands made upon us, resulting from false and unfounded rumors recently circulated by irresponsible persons. Acting in the best interest of our people and the community at large. we did not feel justified in sacrificing the value of our assets, and our final action is the result of our best judgment in this regard. Although we regret the necessity of this action, we feel confident that with proper and orderly liquidation our depositors will be paid. Henry Holzapsel, president of the bank, refused to make any statement at this time, but it was learned a steady seepage of deposits since the failure of the Central Trust Co. is responsible for the bank's closing. The bank's statement of June 30, 1931, showed resources of $2,950,489 and deposits, both savings and special, of $1,756,730. George W. Page, State bank commissioner, began an examination of the books of both institutions this morning. The Central Trust Co. at the time of its failure held deposits of $14,000,000, about one-third of the total bank deposits of Frederick County. Coblentz blamed frozen assets and "miserable publicity" received by himself in connection with the Federal investigation of the F. H. Smith Co. of Washington for the bank's failure. Coblentz is under indictment in Washington on a charge of aiding in commission of perjury in connection with the operations of the Smith company.

6. January 28, 1932 The Washington Herald Washington, DC

Article Text

Books Must Be Shown By Bank Receiver FREDERICK Md., Jan. 27. Chief Judge Hammond Urner passed an order in the Circuit Court today requiring George W. Page, Maryland State bank examiner and receiver for the closed Central Trust Company, to give access to books, records and papers to an appraisal committee, in reorganization of the bank. The company with its 11 branch banks. with resources of $18,000,000, closed their doors September 3. and Mr. Page was appointed to liquidate the assets.

7. March 4, 1932 Montgomery County Sentinel Rockville, Gaithersburg, MD
Article from Montgomery County Sentinel, March 4, 1932

Click image to open full size in new tab

Article Text

Central Trust Company was not able to earry out its part of the merger contract. He is also indicted jointly with Senator Coblentz on a charge of conspiracy to defraud. Senator Coblentz is indicted separately in two cases for accepting deposits when he knew his bank to be insolvent. He also is indicted with the four other bank officers with conspiracy to defraud. The Central Trust Company and its eleven branch banks in Western Maryland were closed September 3. 1931, and Mr. Page was named receiver. Mr. Page entered the Bank Commissioner's office as a clerk in 1908, was made Deputy Bank Commissioner four years later and commissioner in 1919 by appointment of Governor Crothers. A native of Frederick County, he is a brother of William C. Page, former City Collector here and now president of the Calvert Bank. His indictment is not supposed to affect his position as receiver for the several banks that have failed in Maryland, including the Chesapeake Bank here. Mr. Coblentz, who also is under indictment in Washington for "aiding in the commission of perjury" at the F. H. Smith Company conspiracy and embezzlement trial there last summer, organized the Central Trust Company in 1913 to take over the Central National Bank of Frederick, oldest banking institution in the county. He is 62 years old and long has been a leader in the business, civic, political and religious affairs of the county.

8. April 19, 1932 The Washington Times Washington, DC
Article from The Washington Times, April 19, 1932

Click image to open full size in new tab

Article Text

New York Bankers To Aid at Frederick Reports from Baltimore indicate that important financial interests of New York are to become associated in the proposed reorganization plan of the Central Trust Company of Maryland, at Frederick, now in the hands of receivers. It was learned that the Maryland State Bank Commissioner and the depositors' executive committee of the trust company have planned important conferences with New York financiers.

9. June 10, 1932 The Washington Times Washington, DC
Article from The Washington Times, June 10, 1932

Click image to open full size in new tab

Article Text

GOBLENTZ CASE GAJE TESTIMONY NEARS END Three Judges Sitting as Jury to Hear Arguments Tomorrow CUMBERLAND, Md., June 10. 1 Two vice presidents and the treasurer of the Central Trust Company of Frederick were on the stand today previous to its president, State Senator Emory L. Coblentz, being called to testify in his own behalf, he having been indicted for accepting a deposit when he knew the bank was insolvent. It was thought the testimony would be concluded today and the argument before three judges, sitting as a jury, would take place tomorrow. Vice President C. Thomas Summers told of rumors of runs on branch banks and Senator Coblentz called a meeting September 2, the day it was voted to close. He said he knew nothing of Coblentz sending out personal letters after the closing of the bank until the morning after. Vice President Charles McC Mathias told of the purchase by the Central Trust Company of 800 shares of its own stock at $30 to be used in the deal taking over the Sykesville National Bank.

10. June 10, 1932 Evening Star Washington, DC
Article from Evening Star, June 10, 1932

Click image to open full size in new tab

Article Text

COBLENTZ TRIAL IS NEARING END Testimony Expected to Finish Today in Alleged Bank Fraud. Special Dispatch to The Star. CUMBERLAND, June 10.-Two vice presidents and the treasurer of the Central Trust Co., Frederick, were on the stand today previous to its president, State Senator Emory L. Coblentz. who was called to testify in his own behalf under the indictment charging accepting a deposit when he knew the bank was insolvent. It was thought the testimony would be concluded today and the argument before the three judges, sitting as jury, probably would take place tomorrow. Vice President C. Thomas Summers, who also was superintendent of stations, was the first witness this morning. He told of rumors of runs on branch banks. He said he knew nothing of Coblentz sending out personal letters after the closing of the bank until the morning after. Rumors of the runs_pertained to the Union Bridge and Thurmont Banks and he did not know the amounts of the withdrawels. Summers said the parent bank. with branches, had between 25,000 and 27,000 depositors. S. Elmer Brown. treasurer, said that to his knowledge, un to the never the time bank. of its closing had failed to meet any of its acknowledged obligaon occasion. was to the deal upon tions explain any by He the Central called Bank whereby Stein Bros. & Boyce, Baltimore brokers, took over certain "loans" and of "collateral pledged against bills that was put down as a deposit.) Vice President Charles McC. Mathias was recalled to the stand. He told of the transaction involving the purchase by the Central Trust Co. of 800 shares of its own stock at $30 to be used in the deal taking over the Sykesville National Bank.

11. August 22, 1932 Evening Star Washington, DC
Article from Evening Star, August 22, 1932

Click image to open full size in new tab

Article Text

NEW TRIAL PLEA OF COBLENTZ UP Arrest of Judgment Asked on Ground Banker Did Not Accept Deposit. Special Dispatch to The Star. CUMBERLAND, Md., August 22.Argument on a motion for a new trial for Emory M. Coblentz, president of the Central Trust Co., Frederick, which closed its doors September 2 last, convicted here of receiving a deposit at the Ellicott City branch when he knew the institution was insolvent, got under way here today. The case was removed here from Howard County. Leo Weinberg of Frederick made the opening talk for the defense. He asked for an arrest of judgment in that the defendant aid not accept the cank deposit. He contended the indictment was defective as raised by the demurrer. The verdict, he declared, was against the WC ght of the evidence, and he added that newly discovered evidence would be presented. He said it was a pioneer case of its kind. He narrated the efforts made by President Coblentz to strengthen the financial reserves of the in paign Smith bank, publicity suit following in Washington connection the whispering and with with- cam- the drawals that followed. He cited in recent days, a huge financial institution. the Union Trust Co., Baltimore, was able to borrow over seven millions of dollars in Baltimore during a run, and was kept open. On the other hand his client was a victim of unfortunate circumstance. Mr. Weinberg was followed by James Clark, who prosecuted the case. He spoke briefly. He said the indictment was drawn in the language of the statute and such statute had been passed on as sufficient by the Court of Appeals. The verdict that the bank was "hopelessly insolvent," he averred, strengthened the State's case. The real point, he asserted, was the confidence of the people of Maryland should be restored in its banks and the administration of justice.

12. October 25, 1932 The Washington Times Washington, DC
Article from The Washington Times, October 25, 1932

Click image to open full size in new tab

Article Text

Bank Stockholders Ordered to Pay Up FREDERICK, Md., Oct. 25. George W. Page, State bank commissioner, has been empowered by the Frederick County Circuit Court to enforce the State law which requires stockholders of the defunct Central Trust Company, of Frederick, to pay to the receiver of the bank a sum equivalent to the par value of the stock they own. The Central Trust Company, of which State Senator Emory L. Coblentz was head, failed last November.

13. November 26, 1932 The Daily Mail Hagerstown, MD

Article Text

Agreement In Bank Case Is Now Probable Arguments In Smithsburg Case Continued At Frederick. FREDERICK, Md., Nov. Allan MacCullen, general manager of the Central Assets Realization Corporation, asserted Friday that the litigation involving both the People's Bank of Smithsburg and the Washington Trust Company of Ellicott City will be settled "under an agreement made with the depositors at those places to return to them all assets in the hands of the receiver which can be identified as coming from those companies in June, 1931." MacCullen made this announcement while attorneys in Circuit Court here were arguing the case of the Smithsburg bank against the Central Trust Company and George W. Page, receiver. In lengthy statement, MacCullen revealed that the plans of the corporation for which he is general manager to open new bank here replace the closed Central Trust Company may be announced in the near (uture. He said series of meetings are to here commencing Wednesday to acquaint the depositors with the reorganization plan. A meeting of the Sykesville depositors will be called shortly, to be followed by-other meetings for the Smithsburg and Ellicott City depositors. The arguments in the Smithsburg

14. May 14, 1933 Evening Star Washington, DC
Article from Evening Star, May 14, 1933

Click image to open full size in new tab

Article Text

Bank Loses Court Plea. FREDERICK, Md., May 13.-Application of the Fidelity and Deposit Co., Baltimore, requesting the court to modify the decree, which included the assignment of four mortgages now in the hands of the receiver of the closed Central Trust Co., Frederick, to the People's Banking Co., Smithsburg, was denied by Chief Judge Hammond Urner D Willard,

15. June 26, 1933 The Herald-Mail Hagerstown, MD

Article Text

Bank Liquidation Plans Go Forward The first step toward liquidating the Peoples' Banking Company, Smithsburg. was taken recently with the filing in. court of an order signed by Judge Prank (:. Wagaman authorizing the receiver, John J. Ghingher, to determine stockhold ers' liability and proceed with collecting and enforcing payment of assessments on stock It is understood that steps will be taken at once to liquidate the af. fairs of the hank, the closing of which was caused, it is alleged, by the collapse of the Central Trust Company, Frederick, with which it had been merged. Several months ago. after lengthy court litigation. the merger was res. cinded and the Peoples Bank restor. ed as an individual institution.

16. July 14, 1933 Evening Star Washington, DC
Article from Evening Star, July 14, 1933

Click image to open full size in new tab

Article Text

21 Suits Set for Hearing. FREDERICK. Md. July 14 (Special).-Twenty-one suits for preferred claims in the disposition of assets of the Central Trust Co., have been set for hearing within the next 10 days as a further step in the receivership of the bank. which closed 22 months ago. The hearings will be held in Circuit Court. at dates fixed by Chief Judge Hammond Urner. The claims are of various nature. relating largely to trust accounts. They were filed soon after the closing of the bank

17. August 23, 1933 The Washington Times Washington, DC
Article from The Washington Times, August 23, 1933

Click image to open full size in new tab

Article Text

COBLENTZ AIRS BANK DEALS FREDERICK, Md., Aug. 23. Emory L. Coblentz, president of the closed Central Trust Company, was called as a witness yesterday in the case in which the Washington Trust Company of Ellicott City is seeking the return of a number of mortgages held by the Fidelity and Deposit Company of Baltimore. Coblentz, who recently was acquitted on charges of violation of the banking laws in connection with the closing of his banking company, was called in because the mortgages in question were among the assets of the Washington Trust Company at the time it merged with Coblentz's bank. The mortgages were assigned to the Fidelity Company, and the Ellicott City organization is attempting to have the assignments set aside on the grounds that the Central Trust was insolvent at the time the Washington Trust was taken over by the Baltimore institution. The complainants contend the merger was consummated through fraud and misrepresentation on the part of the officers of the Central Trust, but Coblentz yesterday denied all implications. He said he felt his organization could make a profitable branch at Ellicott City.

18. November 16, 1933 The Baltimore Sun Baltimore, MD

Article Text

Central Trust Plan Offered To Depositors Branch System Would Be Discarded And Six Individual Units Established Frederick, Nov. 15 (Special) six new unit banks within the next six weeks and make cash distribution of five per cent. to depositors upon reopening, being submitted depositors of the Central Trust Company, it was announced today. The bank in process of reorganization has been in receivership since September 3, 1931. When at least twenty-five per cent. of deposits the closed bank are signed the plan will be submitted to John Ghingher. State Bank Commissioner and receiver for the trust company, for approval. It is understood that Mr. Ghingher looks with favor upon the reorganization plan. The new plan calls for six separate Institutions, one in Frederick to be known the Western Maryland Trust Company; one Middletown, the Middletown State Bank; one in Walkersville, Walkersville State Bank; one in Monrovia, State Bank; one in Sykesville, Sykesville State Bank, and in Poolesville, the Poolesville State Bank. The branch bank system discarded, and each town to organize and manage its own institution.

19. November 30, 1933 Montgomery County Sentinel Rockville, Gaithersburg, MD
Article from Montgomery County Sentinel, November 30, 1933

Click image to open full size in new tab

Article Text

52 Stockholders Of Central Trust Sued Chief Judge Hammond Urner and Judge Arthur D. Willard have set December 4 as the date for a hearing of the case of John J. Ghinger, State Banking Commissioner and receiver for the closed Central Trust Company, against stockholders of the Company from whom he is seeking to collect liability to the amount of the stock they hold. The suit was entered June 20 against seventy-three stockholders, twenty-one of whom subsequently filed answers, contesting the receiver's claim. A decree pro confesso was entered August 22 against the fifty-two remaining defendants. These include Emory L. Coblentz, president of the bank, and a large number of Frederick countians.

20. May 11, 1934 The News Frederick, MD

Article Text

TO REORGANIZE BANK plan of reorganization for the Washington Trust Company of Maryland Ellicott City been approved by State Bank Commissioner John Ghingher. The plan provides for the formation of new State bank to be known the Howard County Bank. with capital of and surplus of The plan was drawn up by 25 per cent in interest. of under the terms of the emergency banking act. The Washington Trust Company was taken by the Central Trust Company of Frederick branch few months the closing of the Central Trust Company in September. 1931. Subsequently the court Frederick the bank back in its original independent status and made the Bank Commissioner receiver on December 1933. JOINS MARINES William Ecker. of New Windsor. graduate of the Liberty High School. was recently enlisted the United States Marine Corps. by Major Frederick Hoyt. Marine Corps. officer in charge of recruiting. at the new postoface building. Baltimore. and transferred to the marine racks. Parris Island, for his miltraining preliminary to transfer to one of the stations of the marines.

21. October 7, 1935 The Washington Times Washington, DC
Article from The Washington Times, October 7, 1935

Click image to open full size in new tab

Article Text

600 Stockholders In Bank Face Suit HAGERSTOWN, Md., Oct. 7. The list of stockholders of the defunct Central Trust Company, Frederick, being sued by the receiver to collect statutory liability assessments, has passed 600 with the filing of 31 more names, a number of who are Hagerstown stockholders. They held stock ranging from three shares up to 405 shares per sstockholder.

22. October 25, 1935 The Washington Times Washington, DC
Article from The Washington Times, October 25, 1935

Click image to open full size in new tab

Article Text

Central Trust Suits Toll 625 Defendants FREDERICK, Md., Oct. 25. Executors, trustees and persons holding surviving interest in stock of the defunct Central Trust Company of Maryland are named as defendants in the ninth suit of the receiver, John J. Ghingher, to collect stock assessments. The suit, filed in equity court by order of Associate Judge Arthur D. Willard, brought the total number of persons sued to more than 625.

23. January 24, 1936 The Washington Times Washington, DC
Article from The Washington Times, January 24, 1936

Click image to open full size in new tab

Article Text

RULING ARGUED IN BANK SUIT FREDERICK, Md., Jan. 24. The right of the receiver of the Central Trust Company of Maryland to institute legal action in Frederick County Circuit Court to collect double liability from stockholders living in Howard county was argued before the Court of Appeals at Annapolis yesterday. The Frederick court assumed jurisdiction over the trust company in 1931 and appointed a receiver. In 1932 the court ordered the receiver to collect statutory liability from the stockholders. The receiver brought suit in equity against 160 alleged stockholders who filed demurrers which were overruled. Appeal was taken from this.