Southport National Bank (Southport, CT)

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Episode Information

Episode UID
66001241
Episode Type
Suspension → Closure
Bank Type
national
Bank ID
6600 national
Charter Number
660
Start Date
May 19, 1903
Location
Southport, Connecticut (41.136, -73.283)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
62da4d06bde8c8cf

Response Measures

None

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1903-05-19
Date receivership terminated
1911-07-31
OCC cause of failure
Fraud
Share of assets assessed as good
60.0%
Share of assets assessed as doubtful
13.4%
Share of assets assessed as worthless
26.6%

Events (4)
1. December 29, 1864 Chartered
Source
historical_nic
2. May 19, 1903 Receivership
Source
historical_nic
3. May 19, 1903 Receivership
Newspaper Excerpt
Ellis S. Pepper, receiver of the Pynchon National bank of Springfield, Mass., has been appointed receiver.
Source
newspapers
4. May 19, 1903 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closure followed discovery of large defalcation/embezzlement by cashier Oliver T. Sherwood (initial reports about $100,000, later estimates higher).
Newspaper Excerpt
The treasury department to-day received a telegram from National Bank Examiner Perkins announcing the closing of the Southport National bank of Southport, Conn.
Source
newspapers

Newspaper Articles (18)
1. May 20, 1903 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, May 20, 1903

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Article Text

SOUTHPORT BANK CLOSED. ACTION DUE TO ALLEGED DEFALCATION OF CASHIER. Amount Said to be About $100,000Officials Declare the Soundness of the Institution Will Not be Affected, That Depositors will be Paid in Full and Business Resumed Shortly. Washington, May 19.-The treasury department to-day received a telegram from National Bank Examiner Perkins announcing the closing of the Southport National bank of Southport, Conn. This action, it is understood, was taken in consequence of the defalcation of the cashier, which is believed to have approximated $100,000. The report of the condition of the bank at the close of business, April 9, 1902, shows its resources and liabilities at that time to have been as follows: Resources: Loans and discounts, $140,116; United States bonds to secure circulation, $100,000; stocks, securities, claims, etc., $123,195; banking house, $8,947; due from banks, $33,531; cash resources, $25,645; redemption fund, $5,000. Total, $436,436. Liabilities: Capital surplus and undivided profits, $180,871; circulation, $98,400; deposits, $122,164; bills payable, $35,000. Total, $436,436. Ellis S. Pepper, receiver of the Pynchon National bank of Springfield, Mass., has been appointed receiver. Southport, May 19.-Oliver T. Sherwood, cashier of the Southport National bank, had been missing for some time up to last Wednesday morning, when he arrived in town from Bridgeport by an early train and walked toward his home. He looked haggard and worn and bore the appearance of having travelled all night. Since then his whereabouts have been unknown. Sherwood is about forty years old and has a wife and family. His father, E. C. Sherwood, is president of the bank, and since the defalcation was reported last Saturday, Frank P. Sherwood, a brother of the missing cashier, has been elected by the directors as his successor. There is said to have been no suspicion of trouble at the bank until last Tuesday when a bank examiner came to Southport to investigate the books. Sherwood left town that night but returned the following morning, when he disappeared. Members of the family attribute his alleged action to his state of health, that he has been in bad condiand they assert in his right mind They deny that appeared. was saying tion not mentally when he He had that he dis- had en- he in stock speculation. of many estates and estate his was said own though gaged charge a $75,000 shortage uneneumbered. to is that amount said Al- the to to $100,000, it has been declared banks' soundness would not be affected, as its capital is $100,000 and it has a surplus of $112,000. Sherwood was under bonds of $20,000. Frank K. Sherwood, the new cashier, to-day confirmed the announcement Washington that the bank had but said it was a matter, and weeks at the latest, resumed. All closed or from would temporary four its be doors, depositors, that business in surplus three only he said, would be paid in full, the of the bank being sufficient to meet all demands. The objects in closing, he said, was to enable a careful examination to be made to determine just the conditions of affairs,

2. May 20, 1903 The Savannah Morning News Savannah, GA
Article from The Savannah Morning News, May 20, 1903

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Article Text

CASHIER SAID TO BE SHORT $100,000. Washington, May 19.-The Treasury Department to-day received a cablegram from National Bank Examiner Perkins announcing the closing of the Southport National Bank of Southport, Conn. This action, it is said, was taken in conseuqence of the defalcation of the cashier, which is believed to have approximated $100,000. The bank's capital, surplus and undivided profits amount to $180,871, and its deposits to $122,164. Ellis S. Pepper, receiver of the Pinchion National Bank of Springfield, Mass., has been appointed receiver.

3. May 20, 1903 Evening Star Washington, DC
Article from Evening Star, May 20, 1903

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Article Text

MAY REACH $150,000. Alleged Defalcation of Southport, Conn., Bank Cashier. The controller of the currency today received a telegram from the national bank examiner in charge of the Southport, Conn., National Bank, which was closed yesterday. It indicates that the defalcation of the former cashier is about $150,000 instead of $100,000, as at first reported. The report of the condition of the bank at the close of business April 9, 1902, shows its resources and liabilities at that time to have been: Resources-Loans and discounts, $140,116; United States bonds to secure circulation, $100,000; stocks, securities, claims, etc., $123,195; banking house, $8,947; due from banks, $33,531; cash resources, $25,645; redemption fund, $5,000; total, $436,436. Capital, surplus and undivided profits, $180,871; circulation, $98,400; deposits, $123,104; bills payable, $35,000; total, $436,436. Ellis S. Pepper, receiver of the Pynchon National Bank of Springfield, Mass., has beeen appointed obset: receiver.

4. May 20, 1903 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, May 20, 1903

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Southport Bank Suspends. SOUTHPORT, Conn., May 20.-The doors of the Southport National bank were closed and a receiver was appointed for the institution as a sequel to the disappearance of its cashier, Oliver T. Sherwood, who has been missing from his home for a week.

5. May 21, 1903 The News & Observer Raleigh, NC
Article from The News & Observer, May 21, 1903

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Article Text

A National Bank Closed. (By the Associated Press.) Washington, May 19-The Treasury Department today received a telegram from National Bank Examiner Perkins announcing the closing of the Southport National Bank of Southport, Conn. This action, it is understood was taken in consequence of the defalcation of the cashier which is believed to have approximated $100,000. The bank's capital stock surplus and undivided profits amount to $180.871 and its deposits to $122,164. Ellis S. Pepper, receiver of the Pynchon National Bank. of Springfield, Mass., has been appointed receiver.

6. May 22, 1903 The Penn's Grove Record Penns Grove, NJ
Article from The Penn's Grove Record, May 22, 1903

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Article Text

NATIONAL BANK CLOSED Cashier Sherwood, of Southport, Conn., an Embezzler. His Defalcation May Amount to About $100,000-Oficials Say That the Closing is Only Temporary. Southport, Conn.-A warrant was is. sued for the arrest of Oliver Sherwood, cashier of the Southport National Bank, and son of E. C. Sherwood, President of the bank, who has disappeared from this town. Sherwood is charged with the defalcation of nearly $100,000 of the bank's funds. Because of the disappearance of Sherwood, a meeting of the directors of the bank was held here and Frank K. Sherwood, a brother of the missing cashier, was elected to fill his position. Experts were then called in and an examination of the books was made which resulted in the discovery of the shortage. Sherwood was President of the Wilbur Mining Company of Colorado and the executor of a number of estates in this county. It is feared that the mining company and the estates may have suffered losses also, and an examination will be conducted to ascertain if possible the exact amount of the defalcation. Friends of Sherwood say that his disappearance is brought about by insan"ity induced by overwork and claim that Sherwood has been working until late in the night for the last three months. The bank officials, however, are authority for the statement that the books show evidence that the overwork was due to his fear of discovery and an attempt to fix the books SO that the shortage might not be discovered by the bank examiners. Sherwood lived here for many years with his wife and two children. He was forty-five years of age. Frank K. Sherwood, the new cashier, confirmed the announcement from Washington that the bank had closed its doors, but said it was only a temporary matter, and that in three or four weeks at the latest business would be resumed. All depositors, he said, would be paid in full, the surplus of the bank being sufficient to meet all demands. The object in closing, he said, was to enable a careful examination to be made to determine just the condition. Washington, D. C.-The Treasury Department received a telegram from National Bank Examiner Perkins announcing the closing of the Southport National Bank of Southport, Conn. This action, it is understood, was taken in consequence of the defalcation of the cashier, which is believed to have approximated $100,000. Ellis S. Pepper, receiver of the Pynchon National Bank of Springfield, Mass., has been appointed receiver.

7. May 22, 1903 The Semi-Weekly Messenger Wilmington, NC
Article from The Semi-Weekly Messenger, May 22, 1903

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The Cashier Wrecked the Bank. Washington, May 19.-The treasury department today received a telegram from National Bank Examiner Perkins announcing the closing of the Southport Nationa] Bank of Southport, Conn. This action, it is understood, was taken in consequence of the defalcation of the cashier. which is believed to have approximated $100,000. The bank's capital stock plus undivided profits amount to $180,871 and its deposits to $122,164. Ellis S. Pepper receiver of the Yynchon National Bank of Springfield, Mass, has been appointed received.

8. May 27, 1903 The Washington Times Washington, DC
Article from The Washington Times, May 27, 1903

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SSING CASHIER A JUGGLER OF NOTES Passed Through Machine, Came Out Uncanceled. MISLED HIS OWN BROTHER Investigation at Southport, Conn., Reveals Sherwood's Art at Sleightof-Hand. SOUTHPORT, Conn., May 27.-In the investigation of the affairs of the Southport National Bank, which closed its doors a week ago, the manner in which the now missing cashier, O. T. Sherwood, is declared to have manipulated its founds has been laid bare. Sherwood, it is asserted, obtained $150,000 by his operations. The notes given by the town of Fairfield to the Southport National Bank, and which have been paid by the town, were never canceled by Sherwood. About $34,000 of these notes, it is said, were reissued by him. These are held by Bridgeport banks. The question of liability has been raised, and one opinion is that the town may be called upon to pay them. In Need of Money. Whenever the town of Fairfield was in need of money for local improvements, the selectmen would sign a note, and the town treasurer, Francis Sherwood, a brother of O. T. Sherwood, and the teller in the Southport National Bank, would deposit the note in the bank and obtain the loan required. When the loan was repaid to the bank, Francis Sherwood would hand O. T. Sherwood a check for the amount of the note, and O. T. Sherwood would go to the safe and take out the note, place it in the canceling machine, make a noise as if the paper were being canceled. and then place it in a compartment in the bank where all the canceled notes are preserved. Francis Sherwood never suspected that anything was wrong. Notes Apparently Canceled. Apparently, the notes were conceled before the eyes of the town treasurer: but they were not actually canceled. Some of the citizens here say that the town treasurer should have destroyed the notes after they had been repaid. but that is not the usual method here. It was customary to deposit them, after they had been paid, in the safe of the bank for future reference, because sometimes they were referred to as precedents for this or that action. 0. T. Sherwood would say after manipulating the canceling machine, "Now I'll place these notes with the other canceled ones." The bank officers say the way he managed to manipulate these uncanceled documents would make a professional magician envy him. Wild Stories Denied. Mr. Depper, receiver, said that he could not make any statement until the affairs of the bank had been looked into more fully, but he wished to have the wild stories emanating from here, as to the hundreds of thousands of dollars being embezzled and the talk of rewards, denied. The grand jury has found indictments against the missing official for the embezzlement of $100,000. Secret Service detectives are on his trail, but they will not say what clues they have discovered. The sensational story printed in New York that the mayor of Southport has called a mass meeting to discuss the situation is false. There is no mayor of Southport. It is a part of the town of Fairfield. Its affairs are managed by a board of selectmen. No reward has been offered. Business houses here are solid, and, although a little inconvenience has been

9. June 3, 1903 The Abbeville Press and Banner Abbeville, SC
Article from The Abbeville Press and Banner, June 3, 1903

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NATIONAL BANK CLOSED Cashier Sherwood, of Southport, Conn., an Embezzler. His Defalcation May Amount to About $100,000-Oficials Say That the Closing is Only Temporary. Southport, Conn.-A warrant was issued for the arrest of Oliver Sherwood, cashier of the Southport National Bank, and son of E. C. Sherwood, President of the bank, who has disappeared from this town. Sherwood is charged with the defalcation of nearly $100,000 of the bank's funds. Because of the disappearance of Sherwood, a meeting of the directors of the bank was held here and Frank K. Sherwood, a brother of the missing cashier, was elected to fill his position. Experts were then called in and an examination of the books was made which resulted in the discovery of the shortage. Sherwood was President of the Wilbur Mining Company of Colorado and the executor of a number of estates in this county. It is, feared that the mining company and the estates may have suffered losses also, and an examination will be conducted to ascertain if possible the exact amount of the defalcation. Friends of Sherwood say that his disappearance is brought about by insanity induced by overwork and claim that Sherwood has been working until late in the night for the last three months. The bank officials, however, are authority for the statement that the books show evidence that the overwork was due to his fear of discovery and an attempt to fix the books so that the shortage might not be discovered by the bank examiners. Sherwood lived here for many years with his wife and two children. He was forty-five years of age. Frank K. Sherwood, the new cashier, confirmed the announcement from Washington that the bank had closed its doors, but said it was only a temporary matter, and that in three or four weeks at the latest business would be resumed. All depositors, he said, would be paid in full, the surplus of the bank being sufficient to meet all demands. The object in closing. he said, was to enable a careful examination to be made to determine just the condition. Washington, D. C.-The Treasury Department received a telegram from National Bank Examiner Perkins announcing the closing of the Southport National Bank of Southport, Conn. This action, it is understood, was taken in consequence of the defalcation of the cashier, which is believed to have approximated $100,000. Ellis S. Pepper, receiver of the Pynchon National Bank of Springfield, Mass., has been appointed receiver.

10. July 25, 1903 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, July 25, 1903

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Shortage of $250,000. Panama, Colombia, July 25.-Oliver T. Sherwood, the missing cashier of the South Port, Conn., National bank, who is charged with embezzling the funds of that institution, was arrested here The alleged embezzlement today. forced the bank into a receivership and experts found a shortage of at least a quarter of a million dollars.

11. July 25, 1903 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, July 25, 1903

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BANK DEFAULTER CAUGHT. MISSING SOUTHPORT CASHIER ARRESTED IN PANAMA. Oliver T. Sherwood Who Took About a Quarter of a Million Dollars of the Funds of the Southport National Bauk Was Posing as a Doctor in Colombian City. Panama, Colombia, July 24.-Oliver T. Sherwood, the missing cashier of the Southport, Conn., National bank, who is charged with embezzling the funds of that institution, was arrested here this morning upon the request of United States Consul Gudger. He has agred to return to the United States on the ship sailing next Tuesday and will be accompanied by the detectives who discovered him here. Had he refused to return it would have been necessary to send extradition papers to Bogota and the alleged embezzler would have been obliged to remain here in a very uncomfortable jail for about four months. From Canada Sherwood went to Bocas del Toro, Colombia, where he posed as a physician and here also he had patients under treatment. His office was in the most central part of the city. The absence of Oliver T. Sherwood from the Southport National bank one morning about six weeks ago led to an examination of the missing cashier's books and the result was startling in the extreme. By cleverly manipulating the figures on the books Sherwood had been able to get away with an amount of money. without detection, that crippled the bank so badly that it became necessary for the bank officials to close the doors of the bank and to ask for the appointment of a receiver. When Sherwood disappeared it was said that $45,000 was the amount of the defalcation, but the longer the expert accountants worked on the cashier's books the larger-the amount of missing money grew and a very conservative estimate now places the loss to the bank at a quarter of a million of dollars. One of Sherwood's schemes was to sell town bonds which had already been redeemed. The exact amount of money which be stole may never be known. Numerous depositors of the bank can show on their bank books credit for various amounts of money supposed to have been deposited in the bank while the books of the bank fail to show the receipt of any such amount. Sherwood, according to his friends and relatives, had been leading a double life for some time past and this led him on to become a defaulter.

12. August 18, 1903 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, August 18, 1903

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SOUTHPORT BANK TO PAY. The depositors of the Southport National bank will be pleased with the news which comes from Washington that the comptroller of the currency has authorized a first dividend of 50 per cent. to be paid to the creditors of the bank which has been in the hands of a receiver. Mr. Pepper of St. Louis, for some weeks past. This is a first dividend and is warranted by the assets of the bank already secured and is not a final settlement. Inquiry of Mr. Sherwood at the bank confirmed the correctness of the news. Mr. Sherwood said that it is a first dividend. and the total amount of money to be disbursed will amount to between $50,000 and $75,000.

13. October 3, 1903 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, October 3, 1903

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SOUTHPORT BANK AFFAIRS. Receiver Evidently Preparing to Close Up hose of the National Bridgeport, Oct. -Ellis S. Pepper of St. Louis, receiver for the United States court in charge of the defunct Southport National bank, has made a motion in the civil superior courts which looks as though he was preparing to close up the bank's affairs. Mr. Pepper asks permission from the court to sell the real estate of the bank in Fairfield. He says he has an offer of $6,000 for it and he believes it is for the advantage of the creditors that the property be sold.

14. April 27, 1904 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, April 27, 1904

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U. S. CIRCUIT COURT. The United States circuit court opened in this city yesterday morning with Judge James P. Platt on the bench. The case of the Chapman & Merritt Wrecking company against Greene brothers of Bridgeport was assigned for trial on next Tuesday. Another important case set for trial next Tuesday was that of E. S. Pepper, receiver of the Southport National bank, against the Fidelity and Casualty company of New York. Pepper sues for the amount of Embezzler Oliver T. Sherwood's bond, which was $15,000.

15. May 3, 1904 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, May 3, 1904

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SOUTHPORT BANK BOND CASE. United States Marshal William E. Parmelee of the United States court is serving subpoenas on witnesses to appear in the case of E. S. Pepper, receiver of the Southport National Bank, against the Fidelity and Casualty company of New York, as regarding the collection of the $15,000 bond of defaulting Cashier Oliver T. Sherwood, now serving sentence in Wethersfield. The bonding company claims that the bank had knowledge of the shortages and did not report the matter in time. Stiles Judson appears for the receiver and S. C. Loomis for the bonding company. The case will be fought out before Judge Platt and a jury. Several other cases are assigned for to-day but it is not likely they will be ready for trial.

16. January 31, 1906 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, January 31, 1906

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STOCKHOLDERS ASSESSED. Unfortunates of Southport National Bank Must Pay 83 Per Cent. Notice of their assessment of 83 per cent. on the stock has been sent out by Reeiver Ellis S. Pepper, of the Southport National bank, to the stockholders. The final payment will come due Thursday, February 8. At that time 25 per cent. of the assessment will be called for, and the other two payments will be due within two months. The assessment is owing to the wrecking of the bank by O. T. Sherwood, who is now serving a term in state prison, and who recently in the superior court admitted he took about $200,000 from the bank. Some of the stockholders will feel the assessment severely. The Greens Farms Congregational church is said to have an assessment of $500 upon it.

17. May 26, 1911 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, May 26, 1911

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LAST ACT IN DRAMA OF DEFUNCT SOUTHPORT BANK Final Dividend Pays Off Depositors in Full - Absconding Cashier Released From Prison After Serving Full Term (Special to The Farmer.) Southport, May 26-Depositors in the defunct Southport National bank have been receiving this week notices that the last dividend due them will be paid as soon as they return signed receipts to Ellis S. Pepper, receiver at Springfield, Mass. The dividend is 2.4 a per cent and is the last act in drama which caused the most intense excitement in the town eight years ago and which caused widespread sorrow. The dividend represents the unpaid interest on the deposits which were previously paid, from 1906 to 19:1. It closes the affair as far as the United States Banking department is concerned but its effects will not be eliminiated from the town for generations. On May 12. 1903. Oliver T. Sherwood, cashier of the bank disappeared. He was last seen with a fine looking blond in Stratford. With him disap-, peared a large sum of money the property of the bank and of depositors. A few days afterward an investigation of the affairs of the bank showed a large shortage. The bank was closed by order of the U. S. comptroller of currency for two weeks on May 19, but its doors were never opened for business again. To this day the amount of the dafalcation of the cashier has never been made public. Ellis S. Pepper. then cashier of the Pinchon National bank at Springfield. Mass., was appointed receiver and took charge of the affairs of the bank. Since then the receiver has been gradually paying off the depositors. How much the stock holders were asked to put up to this amount has never been made public. On August 21. 1903. the first dividend of 50 per cent was paid. A dividend of 25 per cent was paid Oot. 3. 1904 and another of the same amount followed July 6. 1906. These dividends cleared up the principal of all the deposits in the bank. The dividend just announced is final. Although the depositors in the bank have been paid in full the stock holders lost heavily. Some of them were ruined. The family of the cashier lost everything and the home of Cashier Sherwood's wife which was in her husband's name went with the rest. The missing cashier had been administrator of estates and trustee of funds to an enormous amount. All of this was swept away with the funds of his own family. Sherwood got out of the country and baffled pursuit for several weeks but was captured at Panama on July 24. He had crossed the continent and sailed through the Pacific. He had passed as "Dr. Sylvester" in his travels and practiced medicine at Panama. He was brought back by Detective Joseph Priest. Sherwood was convicted and sentenced to State's prison for ten years. He was released last June having made about 3 years good time. It is said here that he is now in Europe although friends of the family say that he has been living in New York since his release. The people of this village are averse to bringing up the matter. It was a crushing blow to several aristocratic families whose entire capital was swallowed up in the dealings of the absconding cashier. Besides the bank losses there were half a dozen or more estates whose funds were in his hands. The Mt. Wilson Mining Company was one of the enterprises which swallowed up the money. Millinery establishments and automobiles also drained his resources and those of his clients. The affair will remain only as horrible memory to the greater number of people in the village. There will be a mass meeting of Christian Endeavorers in the SouthportCongregational church Tuesday evening, June 6. An interesting program has been prepared. Cars will be chartered, Final arrangements will be announced later.

18. February 5, 1915 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, February 5, 1915

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SOUTHPORT BANK'S AFFAIRS WOUND UP The affairs of the Southport National bank, for the wrecking of which Cashier Oliver T. Sherwood spent six years in state's prison, were ended this morning in the superior court when Receiver Ellis S. Pepper was It was discharged by Judge Webb. stated that the depositors received dollar for dollar but in order to make this possible the stockholders were assessed for 83 per cent. of their holdings.