Cosmopolitan State Bank (Philadelphia, PA)

Episode Information

Episode UID
7731034191502
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
773103419 hash
Start Date
February 14, 1925
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
bb6257c73ccc03d6

Response Measures

None

Description

The bank experienced withdrawals after news broke of its connection to the failed private bank Brown and Stevens, leading to its closure by state examiners.

Events (3)
1. February 14, 1925 Receivership
Newspaper Excerpt
George W. Brown, bank examiner, was placed in charge of the Cosmopolitan bank as receiver.
Source
newspapers
2. February 14, 1925 Run
Cause
Local Banks
Cause Details
Patrons learned the bank had $38,000 deposited with the failed private bank of Brown and Stevens.
Measures
The bank prepared to withdraw $60,000 from a trust company to meet demands.
Newspaper Excerpt
A number of withdrawals followed and we prepared to lift a deposit of $60,000 from a trust company.
Source
newspapers
3. February 14, 1925 Suspension
Cause
Government Action
Cause Details
State banking commissioner ordered closure after examiners found capital impaired and funds entangled with the failed Brown and Stevens bank.
Newspaper Excerpt
The Cosmopolitan state bank... today closed its doors on order of Peter G. Cameron, state banking commissioner
Source
newspapers

Newspaper Articles (14)
1. February 14, 1925 Buffalo Post Buffalo, NY
Article from Buffalo Post, February 14, 1925

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Article Text

Philadelphia Negro Bank Closes Doors Philadelphia, Feb. 14 (A.P.)—The Cosmopolitan state bank, a small institution, operated by negroes, today closed its doors on order of Peter G. Cameron, state banking commissioner, after state bank examiners were said to have found its affairs entangled with Brown and Stevens, which recently went into a receivership. George W. Brown, bank examiner, was placed in charge of the Cosmopolitan bank as receiver. The last financial statement of the bank gave its deposits as $140,000; capital, $50,000, and surplus, $18,000.

2. February 14, 1925 The Pittsburgh Press Pittsburgh, PA
Article from The Pittsburgh Press, February 14, 1925

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Article Text

ORDER PHILADELPHIA BANK TAKEN OVER. of Banking Cameron today sent George Brown. examiner. to Philadelphia. to the Cosmopolitan State bank receiver through refusal of the bank officials to "make good on capital."

3. February 14, 1925 The Millville Daily Millville, NJ
Article from The Millville Daily, February 14, 1925

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Article Text

RECEIVER FOR BANK Feb. 14. (United Banking Cameron today sent George examiner, to Philadelphia take over the Cosmopolitan State Bank as receiver through refusal of bank officials to "make good on capital."

4. February 14, 1925 Delaware County Daily Times Chester, PA
Article from Delaware County Daily Times, February 14, 1925

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Article Text

TAKES OVER BANK Feb. sioner of Banking Cameron today sent George W. Brown, examiner, to Philadelphia take over the Cosmopolition State Bank ns receiver through return: or the bank officials "make good capital."

5. February 15, 1925 The Times Trenton, NJ
Article from The Times, February 15, 1925

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Article Text

NEGRO BANK CLOSED IN PHILADELPHIA (Associated Press) PHILADELPHIA, Feb. 14.-The Cosmopolitan State Bank, small institution operated by negroes, today closed its doors on order of Peter G. Cameron, State Banking Commissioner, after State bank examiners were said to have found its affairs tangled with those of the negro banking house of Brown and Stephens, which recently went into a receivership. George W. Brown, senior bank examiner, was placed in charge of the Cosmopolitan Bank as receiver The last financial the bank gave its deposits as $140,000; capital, $50,000, and surplus, $18,000.

6. February 15, 1925 The Buffalo Times Buffalo, NY
Article from The Buffalo Times, February 15, 1925

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Article Text

Order Philly Bank To Close Its Doors By International News. PHILADELPHIA, Feb. 14.—The Cosmopolitan State Bank, a small institution, operated by negroes, today closed its doors on order of Peter G. Cameron, state banking commissioner, after State bank examiners were said to have found its affairs tangled with those of the negro banking house of Brown & Stevens, which recently went into a receivership. George W. Brown, bank examiner, was placed in charge of the Cosmopolitan bank as receiver. The last financial statement of the bank gave its deposits as $140,000; capital, $50,000, and, surplus, $18,000.

7. February 16, 1925 The Morning Press Bloomsburg, PA
Article from The Morning Press, February 16, 1925

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Article Text

PHILADELPHIA STATE BANK CLOSES DOORS Philadelphia Feb. 15.-The Cos. mopolitan State bank. small institution, operated by negroes. today closed its doors on wrder of Peter Cameron, state banking commission. after state bank examiners were said to have found its affairs tangled with those the negro banking house of Brown and Stephens. which George Brown. senior bank examiner. was placed in charge the Cosmopolitan bank as receiver. last financial statement of the bank deposits capital $50,000 and surplus

8. February 16, 1925 Public Opinion Bayonne, NJ
Article from Public Opinion, February 16, 1925

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Article Text

BANK RECEIVER NAMED sioner of Banking Cameron today sent George W. Brown, examiner. to Philadelphia to take over the Cosmopolitan State Bank as receiver through refusal of the bank officials to "maks good on capital.'

9. February 21, 1925 The Afro-American Baltimore, MD
Article from The Afro-American, February 21, 1925

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Article Text

SECOND PHILLY BANK CLOSED SATURDAY Cosmopolitan State Bank Uptown Had $38,000 In Brown And Stevens

10. February 21, 1925 The Afro-American Baltimore, MD
Article from The Afro-American, February 21, 1925

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Article Text

CLOSED BY EXAMINERS Institution Has 3,000 Depositors And Liabilities Of $112,000 Philadelphia Pa.,—State Banking examiners on Saturday closed the Cosmopolitan State Bank, Ridge avenue Master street, when it discovered it had $38,000 deposited with the private bank of Brown and Stevens, Broad and Lombard streets, which went into the receiver's hands last Monday. Cosmopolitan State Bank has 3000 depositors with liabilities said to amount to more than $112,000. E. C. Brown, of Brown, of Brown and Stevens, is also president of the Cosmopolitan Bank. George W. Brown, Jr., chief State bank examiner, receiver of the Cosmopolitan Bank, declared himself unable to make any definite report of conditions for at least two weeks. This is said to be due to the fact that Brown and Stevens is a private firm which under the State banking act of 1911 was exem... the per-

11. February 21, 1925 The Afro-American Baltimore, MD
Article from The Afro-American, February 21, 1925

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Article Text

SECOND PHILLY BANK CLOSED SATURDAY Cosmopolitan State Bank Uptown Had $38,000 In Brown And Stevens

12. February 21, 1925 The Afro-American Baltimore, MD
Article from The Afro-American, February 21, 1925

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Article Text

CLOSED BY EXAMINERS Institution Has 3,000 Depositors And Liabilities Of $112,000 Philadelphia Pa.,—State Banking examiners on Saturday closed the Cosmopolitan State Bank, Ridge avenue Master street, when it discovered it had $38,000 deposited with the private bank of Brown and Stevens, Broad and Lombard streets, which went into the receiver's hands last Monday. Cosmopolitan State Bank has 3000 depositors with liabilities said to amount to more than $112,000. E. C. Brown, of Brown and Stevens, is also president of the Cosmopolitan Bank. George W. Brown, Jr., chief State bank examiner, receiver of the Cosmopolitan Bank, declared himself unable to make any definite report of conditions for at least two weeks. This is said to be due to the fact that Brown and Stevens is a private firm which under the State banking act of 1911 was exempt from the periodical scrutiny of the examiners. This law exempted all private institutions from examination by State officials which had been in existence seven years prior to 1911 and were able to carry a deposit of $100,000 with the State department of banking in Harrisburg. Within the Law The chief bank examiner explained that the placing of funds with the private firm of Brown and Stevens was not fraudulent but showed poor judgment on the part of the directors of the Cosmopolitan Bank. It was an unusual procedure, he said, for the president of the bank to make large deposits in another bank of which he as a partner. Officers of the Cosmopolitan Bank are listed as E. C. Brown, president; A. F. Stevens, George G. Strickland and I. M. Lawrence, vice presidents; E. H. Vaughan, cashier. Stevens is the other member of the firm of Brown and Stevens. He denied the two institutions intermingled, except that both banks are headed by Brown. Prepared for Run on Funds "We were in good shape," said Vaughan, the cashier, "until our patrons learned that we had about $38,000 with the Brown and Stevens organization. A number of withdrawals followed and we prepared to lift a deposit of $60,000 from a trust company. But the bank examiners demanded that we raise the sum deposited with Brown and Stevens. This we were unable to do mainly because the funds of our directors are tied up in real estate."

13. February 28, 1925 The Afro-American Baltimore, MD
Article from The Afro-American, February 28, 1925

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Article Text

Judge John C. Rose, of the U. S. Court of Appeals, is not only a wizard with figures, but an author, whose book on "Jurisdiction and Procedure in the Federal Courts" is consulted and cited by lawyers of long experience in federal courts. When it is recalled that Judge Rose was for 12 years a U. S. District Attorney in Maryland, and has been on the bench for the past 15 years, anything he says on the question of banks and bank failures must be taken with the weight of authority. In a charge to a jury in Raleigh, N. C., last week, Judge Rose declared that banks fail oftenest because they invest too largely in real estate or lend too large amounts to a single customer. He added: "Experience has shown that a bank is exposed to two things: One, that it may get its money tied up in real estate. It is the business of a bank to have its funds liquid. With its money invested in lands when it needs money most it will be impossible for it to get it without suffering the most serious loss and, therefore, the law forbids national banks from investing in real estate. They may, it is true, take real estate on account of a bad debt when they can get nothing else, but even then they are required to get rid of it as soon as it is practicable to do so, at any event, to get rid of it in five years. The Comptroller of the Currency and the bank examiners are, in the interest of the banks themselves, always insisting on their disposing of their real estate holdings whenever such course is at all practical. "Another, much more serious, danger to banks is their loaning too large a proportion of their funds to a single concern. That is so well recognized an evil that it is expressly forbidden by statute law. A national bank may not loan to any one customer more than ten per cent of its capital, surplus, and undivided profits. The danger of so doing is, of course, all the greater when the borrower himself is one of the officers or directors of the bank." Brown and Stevens Bank failed in Philadelphia recently because of "frozen assets"—too much capital invested in real estate. The Cosmopolitan State Bank of Philadelphia was closed when examiners found they had loaned one-third of their capital, $38,000, to one man, the president. John Mitchell's bank of Richmond, the State Bank at Petersburg, invested too heavily in real estate. The same was true of the Standard Life Insurance Company, of Atlanta, Ga. Judge Rose's discussion of bank failures is so sound that it is fundamental. Banks and insurance company heads ought to frame his words over their desks where they will see them every minute of the working day.—the first two banking commandments.

14. February 28, 1925 The Afro-American Baltimore, MD
Article from The Afro-American, February 28, 1925

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Article Text

Two Banking Commandments Judge John C. Rose, of the U. S. Court of Appeals, is not only a wizard with figures, but an author, whose book on "Jurisdiction and Procedure in the Federal Courts" is consulted and cited by lawyers of long experience in federal courts. When it is recalled that Judge Rose was for 12 years a U. S. District Attorney in Maryland, and has been on the bench for the past 15 years, anything he says on the question of banks and bank failures must be taken with the weight of authority. In a charge to a jury in Raleigh, N. C., last week, Judge Rose declared that banks fail oftenest because they invest too largely in real estate or lend too large amounts to a single customer. He added: "Experience has shown that a bank is exposed to two things: One, that it may get its money tied up in real estate. It is the business of a bank to have its funds liquid. With its money invested in lands when it needs money most it will be impossible for it to get it without suffering the most serious loss and, therefore, the law forbids national banks from investing in real estate. They may, it is true, take real estate on account of a bad debt when they can get nothing else, but even then they are required to get rid of it as soon as it is practicable to do so, at any event, to get rid of it in five years. The Comptroller of the Currency and the bank examiners are, in the interest of the banks themselves, always insisting on their disposing of their real estate holdings whenever such course is at all practical. "Another, much more serious, danger to banks is their loaning too large a proportion of their funds to a single concern. That is so well recognized an evil that it is expressly forbidden by statute law. A national bank may not loan to any one customer more than ten per cent of its capital, surplus, and undivided profits. The danger of so doing is, of course, all the greater when the borrower himself is one of the officers or directors of the bank." Brown and Stevens Bank failed in Philadelphia recently because of "frozen assets"—too much capital invested in real estate. The Cosmopolitan State Bank of Philadelphia was closed when examiners found they had loaned one-third of their capital, $38,000, to one man, the president. John Mitchell's bank of Richmond, the State Bank at Petersburg, invested too heavily in real estate. The same was true of the Standard Life Insurance Company, of Atlanta, Ga. Judge Rose's discussion of bank failures is so sound that it is fundamental. Banks and insurance company heads ought to frame his words over their desks where they will see them every minute of the working day.—the first two banking commandments.