Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1911-01-21
BANK Is TOTAL WRECK
Report Submitted to the Circuit Court
at Frederick by Receivers
Newman and ShafeF.

Frederick, Md, January 14.--John
| S Newman and Willard Shafsr, re-
ceiyers of the Savings Bank CT Bruins
report, in which they say that the ex-
animation which they have made has
| disclosed that the bank is hopelessly
insolyent, and that its assets are con-
siderably less than its liabilities; just
how much less viii depend very large
ly upon the amounts that can be real
ized upon the hundreds CT notes which
the bank holds.
The receivers say that they have
! endeavored to ascertain the cause or
causes OF the shortage which exists
and that they found that it is due in
great measure To bad loans, me of
it to overdrafts. which were er.nit-
ted, some Of it to failure to p ompt-
ly collect notes and interest when the
same became due and payable, but
the receivers say that the principal
causes seem 81 be that the bank was
being run at loss. Very few Of the
notes held by the bank were discount
cd.
Continuing in their report, the sre-
ceiyers say: "The condition of the
books at the bank was such that It
was impossible to take off true and
correct statement of the amounts due
depositors without calling n the pass
books. This was done The amount
so verified by the special &C ountant
was 1929, SS0.07. The total amount not
so verified was s4,2S126, thus max
ing total due depositors of 1894, 161.
80. This does not take into account
any interest on deposits, excepte such
as had been paid depositors prior to
the appointments of receivers
Against these liabilities there was
found In the bank notes totaling $137,.
7S1.43. most of which are believed to
to be collectible, and notes totaling
SSS76.21. considered for the most part
worthless The accountant states the
amount to be due depositors to be
$234161.33 Against this he puts the
following items: Active paper, 1885,
7S1.43: 40 shares of the capital stock
of the Frederick County National
Bank. 5000; banking house, etc, s12,-
900; cash in bank, $2S,42734; inter
est to January l, s20,473.47.
There were overdrafts in the per-
sohal account of William Schnauffer,
the cashier, Of s26,0757S, and ether
overdrafts amounting to $12S70.99. |
The receivers say that the overdrafts |
in the account OF William Schnauffer
was due to the fact that he paid GER
tain expenses of the bank by his per-
sonal check and charged to his per-
sonel account This account has been
running since the bank opened IS
years ago. and the. receivers say that
they are unable to say how much of
the overdraft is due to this fact.
There is on the books an interest
account which is credited with re-
ceipts amounting to $39,319.1S, and is
charged with expenditures amount
ing to $40 ,556,47, thus showing an ex-
cess OF interest paid out over inter
est received amounting to s1,237.29.
Taking this excess and adding it to
tehe three expense accounts, totaling
| $27 44490. plus overdrafts of S3S,946.-
II and worthless notes amounting to
$S,S76.21. will figure out shortage OF
$50, 031.71, even if all past due and ac-
crued interest and all If the s136.7S1.-
43 of notes not barred by limitations
are collected. The receivers say:
ITO collect all of this your receivers
know is impossible"
There are in the bank notes due
| from residents OF Maryland, Virginia
and West Virginia. 1t may he neces-
sary to enforce the payment of one Of
these notes and 70 institute legal ac-
ton in each of the states named.
Judge r. C. Peter has signed an or
der directing dispatch as convenient
ly may be to collect the notes held by
, the Savings bank of Brunswick and
the overdrafts due TO said bank, so
far as they are able to do So"