Mechanics Trust Company (Bayonne, NJ)

Episode Information

Episode UID
55012071609
Episode Type
Suspension → Closure
Bank Type
trust
Bank ID
5501207 routing
Routing Number
55-0120
Start Date
January 1, 1934
Location
Bayonne, New Jersey (40.669, -74.114)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ec5aeba109142c99

Response Measures

None

Events (3)
1. January 1, 1934 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank was operating on a restricted basis and depositors later organized to protect interests after the bank's suspended operation, implying internal mismanagement/unsafe loans.
Newspaper Excerpt
The bank has been operating on a restricted basis since January 1, 1934.
Source
newspapers
2. March 20, 1934 Other
Newspaper Excerpt
Depositors of the Mechanics Trust Company will meet tonight ... to program for the protection of the interests various groups affected by the bank's suspended operation.
Source
newspapers
3. June 1, 1936* Receivership
Newspaper Excerpt
the Mechanics Trust Company of Bayonne, N. J., which was closed last June and taken over by the state.
Source
newspapers

Newspaper Articles (4)
1. March 20, 1934 The Bayonne Times Bayonne, NJ

Article Text

DEPOSITORS SET TO MAP ACTION Mechanics' Trust Group to Hold Session Tonight in Labor Lyceum Depositors of the Mechanics Trust Company will meet tonight Labor Lyceum West street to program for the protection of the interests various groups affectthe bank's suspended operation. permanent organization is expected to emerge from the session, which has been by committee of depositors formed last week. call has been issued all those whom the suspension activities affected. In the work of the will the District Court Judge Aaron Melniker, will be sociated Counselor Jack Siegal. The former will act for the depositwhile the latter will represent the mortgage holders. have doubt.' said Siegal today, "that the ultimate aim and of the depositmortgage holders stockholders of the Mechanics Trust Company arrange the affairs of the bank each group shall suffer no loss. "Unquestionably that purpose can best be accomplished through strong organization combination those interested. therefore the advantage of each person interested in the Mechanics Trust Company to attend the meeting tonight."

2. March 22, 1936 Evening Star Washington, DC
Article from Evening Star, March 22, 1936

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Article Text

Man Drops Dead in Attack With Ax on Restricted Bank me 10 minutes more to do what I By the Associated Press. want to do." The ax swung again. BAYONNE, N. J., March 21. - WilSome one in the street shouted, liam Feehan, 55, walked into the Me"Hold-up" and three policemen came chanics Trust Co. today, a longon the run. They entered the bank handled ax in his hand. with guns drawn. but Feehan, on the The few depositors in the bank were verge of exhaustion from his efforts, startled as Feehan attacked two doors, surrendered the ax to the patrolman smashing the wood and glass to pieces. and then collapsed. He was rushed Then, swinging wildly, he hacked at to the hospital, where he was prothe cages of the tellers, breaking nounced dead of heart failure. more glass and pounding at the marble The bank has been operating on a and metal work. restricted basis since January 1. 1934. The uproar brought the janitor from Police said Feehan had about $200 the cellar. Pausing momentarily, Feeon deposit. han appealed to him. "Please give

3. March 23, 1936 The Daily Alaska Empire Juneau, AK
Article from The Daily Alaska Empire, March 23, 1936

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Article Text

BANK RAIDED BY LONE MAN Aged Depositor Swings Axe Until Exhausted and then Dies BAYONNE, New Jersey, March 23.-William Feehan, aged 55, walked into the Mechanics Trust Company Bank, with an axe in his hand, and startled the few depositors, by attacking two doors, smashing wood counters and glass windows to pieces, then swinging wildly hacked the cages of the tellers, smashing more glass and began pounding at the marble and metal work. Someone shouted "holdup" and three policemen came running. They entered the bank with guns drawn. Feehan, on the verge of exhaustion, surrendered his axe, then collapsed. He was rushed to a hospital and on arrival there was pronounced dead from heart failure. The bank has been operating on a restricted basis since January 1, 1934. The police said Feehan had $200 on deposit in the bank.

4. November 12, 1936 Montana Labor News Butte, MT
Article from Montana Labor News, November 12, 1936

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Article Text

Bankers and the People The recklessness, running into financial turpitude and illegality, frequently manifested by business men operating as bankers, is disclosed in the investigation made by Commissioner Carl K. Withers of the New Jersey State Banking Department into the loans made by the Mechanics Trust Company of Bayonne, N. J., which was closed last June and taken over by the state. One of the fundamental principles of sound banking is that adequate security shall be required for loans. This is necessary because the bankers are handling money belonging to the depositors, who are morally entitled to have loans made only under conditions which guarantee their payment. Another fundamental principle of sound banking is that directors and officers of banks shall not abuse their positions of trust by making inordinate and insecure loans of the depositors' money to themselves and their friends. According to the report of Commissioner Withers, the closing of the Bayonne bank was caused by the fact that bank officials had violated these principles with impunity. He pointed out that on marketable collateral amounting to only $445,000 bank officials had made loans totaling $2,719,429 and that loans amounting to $1,430,181 on marketable collateral of only $131,400 were made to 11 bank directors, their affiliated companies, relatives and close friends. It was practices like these revealed by Commissioner Withers that threw many banks into bankruptcy during the break-down of our banking system which culminated in the forepart of 1933 and robbed depositors of millions of dollars. It is a calamity for public confidence in bankers that these practices continue even in a much modified degree.