Peoples Banking Company (Smithsburg, MD)

Episode Information

Episode UID
65013371602
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
6501337 routing
Routing Number
65-0133
Start Date
June 1, 1933*
Location
Smithsburg, Maryland (39.655, -77.573)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
e3a6772c011b3d3b

Response Measures

None

Description

Closure and liquidation followed collapse of Central Trust Company with which it had been merged; receiver appointed.

Events (3)
1. June 1, 1933* Suspension
Cause
Correspondent
Cause Details
Closing allegedly caused by collapse of the Central Trust Company (Frederick), with which Peoples had been merged and later rescinded.
Newspaper Excerpt
the closing of which was caused, it is alleged, by the collapse of the Central Trust Company, Frederick, with which had merged.
Source
newspapers
2. June 24, 1933 Receivership
Newspaper Excerpt
the court named Mr. Ghingher, State Bank Commissioner, receiver for the bank.
Source
newspapers
3. July 29, 1935 Other
Newspaper Excerpt
Sale of Shares Declared No Bar to Responsibility in Failure. An opinion ... revokes the decree of June 19, 1933, requiring each stockholder ... to pay the receiver ... in a suit brought by the stockholders of the closed People's Banking Co. of Smithsburg.
Source
newspapers

Newspaper Articles (5)
1. June 24, 1933 The Daily Mail Hagerstown, MD

Article Text

RECEIVER LIQUIDATE Court Order Signed Authorizing Collection Of Stock Assessments The first step toward liquidating the Peoples' Banking Company, Smithsburg. was taken recently with the filing in court of an order signed by Judge Frank Wagaman authorizing the receiver, John Ghingber. to determine stockholders' liability and proceed with collecting and enforcing payment of assessments stock It understood that steps will be taken once to liquidate the atfairs of the bank, the closing of which was caused, it is alleged, by the collapse of the Central Trust Company, Frederick, with which had merged. Several months ago, after lengthy court litigation, the merger cinded and the Peoples Bank restored an individual institution. Later the court named Mr. Ghin. gher. State Bank Commissioner, ceiver for the bank.

2. 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.

3. March 5, 1935 The Washington Times Washington, DC
Article from The Washington Times, March 5, 1935

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Article Text

Bank Assessment Prosecution Near HAGERSTOWN. Md., March 5 (Special). .-An order empowering John J. Chinger, receiver for the Peoples Banking Company, Smithburg, to employ William H. Bovey, of Hagerstown, attorney, in the prosecution of assessments against stockholders of the bank, was signed by Judge Frank G. Wagaman.

4. July 29, 1935 Evening Star Washington, DC
Article from Evening Star, July 29, 1935

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Article Text

STOCKHOLDERS HIT IN BANK DECISION Sale of Shares Declared No Bar to Responsibility in Failure. By the Associated Press. HAGERSTOWN, Md., July 29.An opinion holding that "there is individual responsibility of the stockholder of a bank to the creditor and that such liability is not ended by the transfer of stock" has been handed down in Circuit Court here. Written by Chief Judge D. Lindley Sloan and Associate Judge Frank G. Wagaman, the opinion revokes the decree of June 19, 1933, requiring each stockholder of record to pay the receiver an amount equal to the par value of the stock held by him. Verdict in Suit. The decision was made in a suit brought by the stockholders of the closed People's Banking Co. of Smithsburg. From review of numerous court decisions, the judges said: "We think it clearly decided that the Constitution requires the Legislature to give to creditors of banks and impose upon stockholders the following rights and obligations: "First, to give to creditors and impose upon stockholders direct and immedite responsibility to be enforced between themselves. "Second, to give the creditor the right to pursue a stockholder and to place upon the stockholder a liability for the debts of the bank incurred while the stockholder was such. An Asset of Creditors. "Third, the right of the creditor and the responsibility of the stockholder to continue, notwithstanding the stockholder transfers his stock. "Fourth, the liability of the stockholder to be an asset of the creditor and not to the corporation." The opinion defined "liability" as "debts attaching at the time stockholders were such irrespective of any subsequent transfer of the stock. The debts to be benefited by the liability imposed under all the cases were not the debts which might be owing upon insolvency of the bank. As to each stockholder, they were the debts attaching during the time he was such." May Be Collected. "The liability of a stockholder of a bank is 'an asset of the corporation' only in the sense that it may be collected by the receiver for the benefit of those creditors who became such while the stockholders against whom the liability is enforced were such. "It follows as a necessary result that stockholders who are also creditors are equitably entitled to set-off the debt of the bank to them against the stockholders' liability."

5. December 10, 1935 The Daily Mail Hagerstown, MD

Article Text

NOTICE TO CREDITORS AND STOCKHOLDERS OF THE PEOPLES BANKING COMPANY OF SMITHSBURG, MARYLAND The First Report and Account of Warren F. Sterling, Bank Commissioner and Receiver for The Peoples Banking Company of Smithsburg, Maryland, successor to John J. Ghingher, resigned, the same being Receiver's Third Report and Account, making a distribution of 5% to the creditors of the said Bank, has been filed in No. 12,277 Equity in the Circuit Court for Washington County, in Equity, subject to all legal exceptions, and will be finally ratified and confirmed on or about December 19, 1935. WARREN F. STERLING, Receiver for The Peoples Banking Company of Smithsburg, Maryland.