gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
f618776e9154793b
Response Measures
None
Events (3)
1.December 13, 1930Run
Cause
Rumor Or Misinformation
Cause Details
A quiet run that gathered momentum over a few weeks and was attributed by officials to malicious and vicious rumors
Measures
Other local banks arranged loans to savings depositors up to 50% of accounts to meet urgent needs
Newspaper Excerpt
after a three day run during which ... $500,000 had been withdrawn
Source
newspapers
2.December 13, 1930Suspension
Cause
Rumor Or Misinformation
Cause Details
Commissioner ordered suspension because withdrawals in prior weeks and run had nearly exhausted cash
Newspaper Excerpt
was restrained from paying out deposits this afternoon by the State bank commissioner
Source
newspapers
3.December 22, 1930Receivership
Newspaper Excerpt
F. A. Searle to be receiver ... The Commercial Trust Co. was closed on Saturday, December 13 ... receiver appointed shortly after the bank was suspended
Source
newspapers
Newspaper Articles (19)
1.December 14, 1930The Indianapolis StarIndianapolis, IN
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Article Text
BANK ORDERED TO CLOSE,
Connecticut Suspension Ruled to Protect Depositors. Conn., The Commercial Trust Company of New Britain, capitalized at was restrained from paying out deposits this afternoon by the who said the cash position been weakby of the last and the suspension to the interests The said every effort be made reorganize the bank. has of and Of the savings are nearly and than The bank the Connecticut to be closed the bank commissioner within John president of the no loss and expressed the would reopen in about week.
3 MIDWEST BANKS CLOSE. Three more small mid West banks closed their doors In the Washta State bank with deposits of closed by its This was the enth bank failure in Iowa within In Illinois, the First National Bank failed to for business the State Bank of Elroy with deposits of $160,000. was closed by the state banking department. Two other Wisconsin banks, for reorganization, were reopened.
2.December 14, 1930Evening StarWashington, DC
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Article Text
BANK IS RESTRAINED FROM PAYMENTS Recent Withdrawals Necessitate Connecticut Institutions Closing for Safety. By the Associated Press. HARTFORD, Conn., December 13.The Commercial Trust Co. of New Britain, capitalized at $500,000, was restrained from paying out deposits this afternoon by the State bank commissioner. The bank had already closed for the week end when the order was posted at its banking house. The commissioner said the bank's cash position had been weakened by withdrawals of the past few weeks, and the suspension was ordered to conserve the interests of general depositors. The commissioner said every effort will be made to reorganize the bank. It has liabilities of $6,000,000 and a surplus of $125,000. Of the liabilities, savings deposits are nearly $2,000,0000 and commercial deposits are more than $2,000,000. The bank was the third in Connecticut to be closed by the bank commissioner within a fortnight.
Identity of Person Reported to Have Spread Rumors Causing Run Said to Be KnownLoomis Repeats No One Will Lose. Six Institutions to Cash Commercial Savings Accounts Up to 50 Per Cent If Need Is Shown-Analysis of Situation Being Made by State. Suspension of business by the Commercial Trust Co. on West Main street Saturday afternoon was accepted calmly in financial circles over the week-end and there was no sign of disturbance although many merchants and others were inconvenienced by their inability to issue checks against the bank or cash them. Announcement by State Bank Commissioner Lester E. Shippee that the bank was solvent and by President John C. Loomis of the bank that no depositor would lose money, both of which statements were published in an extra edition of the Herald Saturday, had a steadying influence on the populace. Apprehension was allayed by the issuance of these statements and by the allnouncement made in the churches yesterday, at the instance of Mayor Quigley, that depositors would be paid 100 cents on the dollar. Other Banks Aid Depositors Officials of the other New Britain banks arranged over the week-end to relieve the situation to a considerable extent by loaning to Commercial Trust Co. savings depositors up to 50 per cent of their accounts, at the prevailing rate of interest, but only in such instances as were proven to constitute actual need of ready cash. I The announcement to this effect f was contained in the following state. ment: "The banks whose names appear below are working out a plan to I take care of the needs of those perI sons having deposits in the savings department of the Commercial Trust company by loans up to 50 per cent : of such deposits secured by the book t representing the same if properly authenticated New Britain National Bank, New Britain Trust company. Savings Bank of New Britain, : Burritt Mutual Savings Bank, City E National bank and People's Savings bank.' t Reorganization Under Way I That there will be a reorganiza: tion of the closed bank as soon as possible was stated today by Presi) dent Loomis. Whether it can be effected within a few weeks was not known. The bank was open today (Continued on Page Two)
dinarity, but people who came in were not nearly as numerous as might be expected. and there was absolutely no sign of hysteria," he said. No Sign of "Run" Today When the banks opened at 9 o'clock this morning it was observed that the public was not alarmed and there was nothing about the demeanor of the clientele to indicate hysteria. Bankers stated that the usual Monday morning business was transacted and they were confident that there would be no run. Word of the closing of the bank spread like wildfire Saturday, but the general effect of the action appeared to be one of surprise rather than hysteria, principally because of the apparent willingness of the public to believe the reassuring declaration of President Loomis and the state banking commissioner that there would be no loss to depositors. Loomis Reiterates Charges President Loomis reiterated today that the run On the bank which started a few weeks ago and gathered momentum during the past few days, was brought on by "malicious and vicious rumors." That the bank officials know the source of the rumors, President Loomis stated but he doubted that there will be a prosecution. although he said, he did not believe there would be any difficulty in proving the guilt of the individual who is generally blamed for starting the rumor. Itetail business was affected Saturday night. merchants reported today. Prospective spenders withheld making their purchases pending announcement of full details of the sit ration. Individuals and business concerns carrying accounts in the Commercial Trust company were busy today opening accounts in other banks Many persons having all their ready cash in the closed bank were obliged to negotiate personal loans to tide them over for a few days and others who wrote checks during the past few days hastened to straighten out the complications resulting from the closing of the Commercial. City Deposit In Bank City Treasurer Curtiss 1. Sheldon said today that the Commercial Trust company has a share of the city's money on deposit, as have the other local banks, and upon the length of time that the state banking commissioner's order remains operative will depend its effect on the city's financial system. In the event that the city has occasion to draw on the account before it IS available, i may be necessary to obtain a loan, Mr. Sheldon said. Identify Author of Rumor Commissioner Shippee said today that an analysis of the situation is being made in charge of Deputy Commissione Charold Splain and when a report is compiled, he will
Examiners Now Going Over Records to Determine Condition of Institution Future Cannot Be Forecast Before Examination County Detective Hickey Said to Be Investigating Report Run Was Caused by Rumors - Loomis Confident of Reopening in Short Time, He Says. The future of the Commercial Trust Co., which is under suspension on orders of State Banking Commissioner Lester E. Shippee, will not be known until the latter part of the week, the commissioner said today, because it will be impossible to complete the analysis which is being made by examiners from his office, any sooner. Every detail of the bank's affairs must be gone into thoroughly in order to determine accurately the condition of the institution and whether there will be a reorganization or a complete liquidation and closing out of the business cannot be foreseen at this time, he said. Few Call on Other Banks That many depositors in the savings department of the bank are content to await developments rather than borrow up to 50 per cent of the amount of their accounts from the six other banks which announced yesterday that a plan is being worked out to this effect, was apparent today when a surprisingly small number of requests for loans was received. Up to noon, one bank in the group reported one call for a loan on the savings department and one from the holder of a commercial account As the offer applied only to those having money in the savings department, the depositor in the commercial account was not accommodated. In another bank one call was reported and arrangements were made to loan the money. Other banks in the group reported similar conditions. The banks which handle commercial accounts are receiving new accounts in large numbers. as might be expected. because business houses and individuales were obliged to change banks due to the suspension of the Commercial Trust Co. Expect to Reopen Soon President John C. Loomis said to day that there was no change in the sntuation and he was confident that bank would be able to reopen in a short time. Payments on loans are being received and the work necessitated by the state banking commissioner's analysis is keeping the entire force of the bank busy. Treasurer M. Bassford and other officials did not leave the bank until 4:30 this morning and were back at work (Continued on Page Two)
BANK'S CONDITION IS BEING ANALYZED (Continued From First Page) again a few hours later. Whether prosecution will be brought by State's Attorney Hugh M. Alcorn as a result of the alleged spreading of derogatory information about the Commercial Trust Co. by a local man could not be learned today. President Loomis would not discuss the matter except to deny that the board of directors had met and decided 10 request a probe by the state's attorney, and at the latter's office in Hartford County Detective Edward J. Hickey would not talk about it. although it is said, he is investigating That the stories in circulation as to the cause of the run OIL the bank have reached the state's attorney is known but what the next move will be could not be foreseen today. The state's attorney refused today to confirm or deny reports that a New Britain broker, whom rumor connects with circulating stories about the bank, would be questioned.
OFFICIALS QUIETLY REORGANIZE BANK Rumors About Taking Over Commercial Trust Co. Denied That officials of the Commercial Trust Co., closed Saturday by order of State Bank Commisisoner Lester E. Shippee following a run which depleted the cash assets of the bank, are working quietly on a plan for reorganization was intimated by Mr. Shippee today. Contrary to the general opinion, it is said state bank examiners are not going over the books of the local bank. but the officers and employes of the institution are going over accounts and straightening out all records under the supervision of Deputy Bank Commissioner Harold Splain and several assistants. Asked what would happen in case the bank failed to reorganize, Mr. Shippee said that in that case it was probable a receiver would be asked and a complete liquidation would follow. Asked today when he expected to have the bank reopen, President John C. Loomis said it was too soon to tell. Denies Prospective Transfer Rumors that the Hartford Connecticut Trust Company was getting ready to take over the local bank were denied by Mr. Loomis and by one of the directors. Harold Kenyon, treasurer of the Hartford bank, said he had nothing to say on the subject. It is believed that the rumor started from the fact that Charles W. Hawkins, newly elected vice president of the Commercial Trust Co., has been conferring with Nathan Prince, president of the Hartford institution, who, it is said. has been cooperating in an advisory capacity. Foreclosure Not Likely Another rumor that the Metropolitan Life Insurance Co. is preparing to take over the building of the local institution has been denied. The insurance company holds the mortgage on the building, but Vice President Pardon C. Rickey of the Commercial Trust Co., said today the mortgage was not delinquent and he saw no reason why such steps should be taken. Skepticism in the probability of such action was expressed by Ronald Cook. manager of the Hartford branch of the insurance company. "Our company never acts hastily on foreclosures, and since the mortgage is not delinquent I don't believe there is anything to it," he said.
SHIPPEE AWAITING NOTICE FROM BANK Receivership Possibility Depends On Reorganization Pians The possibility that a receivership may be asked for the Commercial Trust Co., which closed its doors last Saturday, following the culmination of a run on the institution depends entirely upon the crystallization o: plans for reorganization, according 10 State Bank Commissioner Lester E Shippee today. Asked about rumors that the meeting of the directors of the bank held yesterday afternoon had developed into a decision to ask for a receivership, Mr. Shippee said he talked the situation over with the bank officials and that the plans had not yet crystallized into anything definite and that this may nos happen until tomorrow or Saturday. "It depends entirely upon my ability to satisfy myself in'every partic ular that the reorganization plan is not impossible," he said. Asked if it were true that the bank would settle with depositors on the basis of 70 or 75 cents on the dollar, the commissioner replied, "any prognostications would be foolish at this time. While the bank is perfectly solid on the face of things a forced liquidation will depend entirely on conditions." While appearing to be in a more cheerful frame of mind. President John C. Loomis was obviously showing the nervous strain under which he has been laboring. He maintained his policy of making no statements. Asked if there were any developments in the investigation to ascer tain the source of the rumors which brought on the run on the institution, Mr. Shippee said there had been some work on it, but he could not say as how far the investigation had proceeded.
SHIPPEE MARKS TIME ON COMMERCIAL BANK Takes No Step This Morning to Move for Receivership The expected application of State Banking Commissioner Lester E. Shippee to superior court at Hartford for appointment of a receiver for the Commercial Trust company, had not been made this forenoon and the commissioner said it way possible that no move would be made until the early part of next week. Yesterday, he said there would be action today, with appointment of a receiver certain unless contemplated reorganization plans materialized. At the bank this forenoon President John C. Loomis said there was nothing to be announced by him or anyone connected with the institution, as the state commissioner was in charge of the situation under the orders suspending the bank last Saturday. Commissioner Shippee said today that because ofthe uncertainty with regard to the reorganization of the bank he was holding off the receiy. ership application as long as he felt it reasonable to do so. Several persons in this city having notes at the Commercial Trust Co., have received notice from the Hartford-Connecticut Trust Co., of Hartford to go to that bank and pay them.
F. A. SEARLE TO BE RECEIVER AT BANK (Continued From First Page) which the trust company operates, depositors in the savings departments have a preferred position and will be paid first. Commercial accounts, including Christmas club checks, rank next, then come holders of certificates of deposit creditors and finally stockholders. Mr. King told the Herald that he hardly thought it necessary to distinguish between the different classes of depositors as, he said, he was confident that all would receive 100 cents on the dollar. The Commercial Trust Co. was closed on Saturday, December 13, after a three day run during which, it was said at the time, $500,000 had been withdrawn. Suspension was ordered by Bank Commissioner Shippee when he was notified by bank officials that cash was nearly exhausted. Since that time, the commissioner has granted several periods of grace during which the directors of the institution hoped to effect a reorganization. Searle Former Banker Mr. Searle has had banking experience. Upon graduating from high school he entered the employ of the New Britain National bank and remained there for four years. Going to the old Hartford bank he was with that institution for about five years. He then came to Landers, Frary & Clark. He is a member of the board of finance and taxation. The bank's liabilities are approximately $6,000,000, of which $2,000,000 are in savings deposits, and cap. ital and surplus of $625,000, accord. ing to the last statement. Liquid assets were SO far depleted by the run as to make it unsafe to continue, Mr. Shippee announced at the time of the suspension.
11.December 25, 1930Hartford CourantHartford, CT
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Article Text
Employees of Closed New Britain Bank Are Given Salaries
New Britain, Dec. All officers and of the Commercial Trust Company, suspended 10 days ago, were given their salaries and allowed to on Wednesday. They numbered men and women from President John Loomis down assistant clerks Their release was effected by ReceivSearle of the bank The receiver during the day said that will probably require half to completely liquidate bank's assets but soon as possible partial payments will be made savings accounts. The firm of Judge Gaffney three has been engaged represent the bank.
12.December 20, 1931Hartford CourantHartford, CT
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Counsel Fees Of $21,000 To Be Opposed
R. D. White of New Britain to Fight Bill of Gaffneys for Year's Work on Closed Bank
Opposition to the payment of counsel fees of $21,000 to Judge B. F. Gaffney and his son, Donald Gaffney, assistant state's attorney for Hartford County, counsel for the receiver of the Commercial Trust Company of New Britain. for their part in the liquidation of the bank, will be voiced in the Superior Court, it was learned Saturday. The controversy developed when a motion covering payment of counsel fees was discussed before Judge John Rufus Booth, at the short calendar session of Superior Court on Friday. Richard D. White treasurer of Landers, Frary and Clark, the largest depositor of the bank, and chairman of the depositors committee, demanded that Donald Gaffney make public the amount of counsel fees sought. Thereupon, Mr. Gaffney informed the court that papers covering the matter would be presented within 15 minutes. "What's all the secrecy about?" Judge Booth inquired. Mr. White then left the courtroom. presumably in quest of legal counsel. Interrogated at the conclusion of the hearing. Mr. Gaffney disclosed that his bill was for $21,000. representing his work since his appointment as counsel for the receiver, Frederick A. Searle. The receiver was appointed shortly after the bank was suspended by the State Bank Commissioner on December 13, 1930.
Regards Fee Excessive. Called at his home for an explanation of the courtroom episode. Mr. White explained Saturday that Landers, Frary and Clark, as the largest depositor, intends to fight the payment of counsel fees of $21,000. The fee is regarded as excessive, Mr. White said, adding that he will oppose its payment at the short calendar session to be held in Hartford on December 31. Mr. White contends that it will take several years to complete the liquidation of the bank, and that it will be necessary to continue to spend money for legal services during this period. He said that his only demand Friday was that the amount of the bill be made public. Mr. White made it plain on Saturday, however, that he will remonstrate against the bill when the question of payment again comes up in court. Since the receivership of the bank was established, two dividends of 25 per cent each have been paid to depositors in the savings division. and 15 per cent has been paid to commercial depositors. Preceding the closing of the bank, which came as a great surprise to thousands of New Britain residents, there was a quiet run that drained the liquid assets. Fearing greater withdrawals, the bank commissioner ordered the bank closed.
13.February 25, 1932Hartford CourantHartford, CT
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Says Closed Bank Should Pay Funds To Soldiers First
Superior Court Will Be Asked Rule in New Britain Case
New Britain Feb Whether osits in the closed Commercial Trust Company bank pensions, off full while dethe upon Searle ask ruling Superior Court point, which bringing the question before the attorney for the claims money on deposit war should on demand by the conJudge B. Gaffney. counsel for the receiver, also believes has priority decision which savings deposits was from attachon the case will affect deposits adjusted compensation, insurance payments, and the like, are many closed bank, Searle Wednesday also ruling the closed bank quired pay the usual state tax on banks.
14.May 7, 1932Hartford CourantHartford, CT
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New Britain Bank Receiver Asks Permit To Turn Over Bonds An application turn over $15,000 in bonds of the Mt. Hope Bridge Company of Rhode Island to committee engaged on reorganization plans for the company was made Friday to Judge John A. Cornell of the Superior Court by Frederick A. Searle, receiver for the Commercial Trust Company of New Britain. Attorney Bernard F. Gaffney presented the application Judge Correserved decision. The securities consist of $10,000 in first mortgage bonds at 1-2 cent and $5000 gold bonds, per cent. Mr. Searle told the court that he understands the Mt. Hope Bridge to be sold to the State Rhode Island. The bridge one of the newest and most beautiful in the country was constructed by the engineering firm of Robinson & Steinman, of New York, now engaged on plans for new bridge the Connecticut between Hartford and East Hartford.
15.August 27, 1932The JournalMeriden, CT
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SUED BANK RECEIVER
Aug. Frederick Searle, receiver for the CommerTrust company New Britain, yesterday filed suit against the society of New Britain and the society's guarantors of second mortgage note for recover cash due, alleging that the past due that neither the society nor its guarantors have The include Dr. O'Connell, wife Mrs. Helen O'Connell, Frank Conlon, Angelo John Curtin Mary Smith administrator estate The of the society on Main construction which note issued and property other defendants are attached.
16.December 21, 1932Hartford CourantHartford, CT
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Bank Receiver's Suit For Insurance Heard suit $12,500 the Commercial Company New Britain, against the Comof Hartford and the United Company New was Judge Rufus Booth of the Suclosed bank held mortgage property owned Yegnar Bagdizian Stanley Street, Britain, which was total December 24, The Hartford for the $7000. Nothing has been paid policies. Donald Gaffney pears for Mr. Searle Daniel Morgan Morse for the defendants.
Pupils Inspect Mitchell House. Forty pupils civics classes Simsbury High School inspected the Mitchell Street, Tuesday. The by Mitchell Anna teacher had biology High School. the party.
SUPREME COURT DECIDES CASES Hartford, Conn., Jan. 17-(UP)No error was found by the supreme court in the Fairfield county superior court ruling in the cases of Minnie R. Hill, executrix, against Andrew R. Jones, and Frank A. Hotchkiss against Jones, it was announced today. The lower court found for Jones in the first action and for Hotchkiss in the second. Both suits involved Danbury property. Judgment of the Hartford county superior court in allowing Bernard L. Crampton, New Britain, a setoff on a certificate of deposit against a note held by the closed Commercial Trust company, New Britain, was sustained. Frederick A. Searle, receiver. had appealed the finding.
BANK UNABLE TO FIND DEPOSITORS New Britain, Conn. May 11 (UP) - The Commercial Trust Company is finding it difficult to get rid of $106,000 available to its depositors through Receiver F. A. Searle. The bank failed several years ago and recently a 10 per cent dividend was announced. amounting to $176,000. or this amount $70. 000 has been paid out. the balance being uncalled for. There still is $15,000 on deposit awaiting claim for the past two years, Searle announced
$537,852.10 Other Closed Banks Other closed banks in the state are: The American Bank and Trust, Bridgeport; Broadway Bank and Trust, Bridgeport; Broadway Bank and Trust, New Haven; Cheshire Bank and Trust; Citizens Bank and Trust, New Haven; City Bank and Trust Bridgeport: Commercial Bank nad Trust, New Britain; Hamden Bank and Trust; Mechanics Bank and Trust, New Haven; Naugatuck Bank and Trust; Unionville Bank and Trust; West Haven Bank and Trust; Windsor Locks Trust and Safe Deposit. The receiver for the Naugatuck Bank and Trust company will resign at a hearing to be held here next Wednesday morning at 11 o'clock.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
