Commonwealth Trust Company

Bank Information

Episode Type: Run Only
Bank Type: trust company
Start Date: October 27, 1903
Location: St Louis, Missouri (38.627, -90.198)

Metadata

Model: gpt-5-mini
Short Digest: 72b299fb

Response Measures

Accommodated withdrawals, Public signal of financial health, Partial suspension

Other: Directors personally guaranteed payment of deposits; enforcement of existing 30/60 day notice rule for savings accounts.

Description

Multiple articles describe a short-lived run on St. Louis trust companies (including Commonwealth) triggered by malicious/false rumors from Chicago. Withdrawals were mainly small accounts; the company met demands, directors issued a statement guaranteeing payment, and the 30/60-day rule was (re)enforced. No suspension, receivership, or permanent closure is reported.

Events (1)

1. October 27, 1903 Run

Cause: Rumor Or Misinformation
Cause Details: Malicious and unfounded rumors circulated from the Chicago stock market questioning stability of St. Louis trust companies; articles repeatedly call the rumors false and malicious.
Measures: Enforced 30/60-day notice rule for savings withdrawals; directors issued a statement personally guaranteeing payment of deposits; declined offers of outside aid.
Newspaper Excerpt: At the Commonwealth Trust Company officials stated that, while their business for the day had been larger than usual, no large depositors had presented their pass books ... All of the withdrawals were of small accounts.
Source: newspapers

Newspaper Articles (5)

1. October 28, 1903 The St. Louis Republic Saint Louis, MO

Article from The St. Louis Republic, October 28, 1903

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MALICIOUS CHICAGO RUMORS CAUSED WITHDRAWALS. Continued From Page One. started as the preliminary to a bear raid on the stock market. Mr. Buder said: "For ten days we have been receiving queries from Chicago asking the general financial con Ition of the St. Louis trust companies. None of these queries were from banks or trust companies. "It is significant that all the queries, both of phone and wire, were entirely from brokers, while our correspondents among the banks have not troubled us for information. "There is little doubt that the rumors are maliclously intended to create a feeling of distrust, and that they are designed to further the plans of stock dealers who have sold the market short. "This stock market is on the rise, and the 'shorts' have started this rumor to enable themselves to cover their shortages. "There is not a word of truth in the rumors, and I am cofident that there will be no repetition of the scenes of this afternoon, to-morrow, as the folly of their action in withdrawing their funds and losing the interest will be soon seen by those who withdrew to-day." KOEHLER MAKES STATEMENT. Henry Koehler, Jr., president of the Germania Trust Company, made the following statement to The Republic of his understanding of the start of the run on St. Louis trust companies: "All this trouble was caused by a rumor sent out from the Chicago stock market. There are many who have sold the market short in Chicago, and as stocks have reached their absolutely lowest legitimate level for some time. a way to break the rising market and enable the "shorts" to cover was sought. "The flurry cannot last over to-morrow, as there never was a time when our banks and trust companies were in better condition than to-day. The mere fact that they were able to supply the money for moving the cotton crop should allay all fears as to the stability of the institutions. "We have had no run here: in fact. our deposits of savings have been greater today than they have been for some time. "The rumor sent out from Chicago was absolutely without foundation and was malicious in the extreme. It did not. I understand. specify any particular institution. but spoke of the largest. This absence of definiteness is proof of the falsity of the rumor." NO LARGE WITHDRAWALS. At the Commonwealth Trust Company officials stated that, while their business for the day had been larger than usual, no large depositors had presented their pass books to the savings department with a check to close account. All of the withdrawals were of small accounts. A crowd gathered in front of the Missouri Trust Company for a short time late in the afternoon, and some depositors withdrew small accounts. Officials of the company made the statement that the company was absolutely solvent and would pay depositors accounts as fast as they could be verified and the money counted out. At a meeting of the officers of all the trust companies last night, it was agreed that in the withdrawal of savings accounts, hereafter, thirty days' notice would be required from depositors of less than $100 and sixty days' notice from those who wished to withdraw more than that amount. This action covers not only the present, but will be invariably required from all depositors In the savings department. This is in accordance with the rules of the institutions. although It has not been recently enforced. Demand certificates will be paid as they matgre, while current accounts will be subject to check as usual.

2. October 28, 1903 The Sun New York, NY

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RUN ON ST. LOUIS TRUST dississiv DNOWV savas DINVE DEPOSITORS ATTIVA spreads to Patrons of Other Institution All Who Reach Paying Tellers JP41 Chicago Said to Have Started the Directors Pledge Private Fortun ST. LOUIS, Mo., Oct. 27.-Shortly he opening of banking hours this morni a run began-on the Mississippi Valley Try Company, swelling in volume as the progressed. The streets were soon with people who came to withdraw deposits. President D. R. Francis he world's fair and others address he clamoring crowds in an endeavor tay what promised to be a panic. Shortly after noon there was a run he other trust companies, depositors drawing their funds from the Mercanti American Central, St. Louis Union, souri, Lincoln and Commonwealth main points of attack were the Mississip Valley and Mercantile. Squads of police were detailed to erve some semblance of order. When 'clock arrived the crowds were han at any time during the day. the police had to aid the bank oloyees to close the doors SO many pressing in to get their money. At 60 his evening thestreets in front of the issippi Valley building were still crowd with angry depositors who had been ible to reach the paying tellers' window Every depositor who got Inside was n full on presentation of his claim, but hird of the anxious ones were able to vaited upon. No cause is known for the raid, as rust companies are believed to be o meet all obligations. A report is Aq SBM una one that que, ent out by Chicago financiers reflecting he stability of the St. Louis trust Issued At all the trust companies packages of

3. October 29, 1903 The St. Louis Republic Saint Louis, MO

Article from The St. Louis Republic, October 29, 1903

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RUSH TO DRAW 001 DEPOSITS CEASED. Continued From Page One. a great extent made up the number who wanted to draw their money. Not one business man presented himself at the d withdrawal windows nor was any large account asked for. the average being even smaller than was stated in The Republic yesterday morning The worst feature of the withdrawal was stated to be the loss to scared depositors of a month's interest on deposits which many returned to the institutions from which they had taken them after holding them a day Those who gave notice of intended withdrawal will also lose their December interest. NO REPETITION OF SCARE PROBABLE. Officials of the trust companies were unanimous in the opinion that Tuesday's blind and unreasoning fear has been entirely dissipated. The strength of St. Louis trust companies has been demonstrated to the banking world. which has been shown. as one man put it. that "they are not only financially above question but that they can stand a run. The people will not easfly be led away again by unfounded and malicious rumors. he said, "but will know that their money is in perfectly safe keeping. A meeting of the Mississippi Valley Trust Company's directors was held yesterday afternoon for the purpose, It was said, of running to earth. if possible, those who had started the rumor that led to so much disquiet on the part of the small depositors. President David R. Francis was present at this meeting. and he stated to The Republic that nothing had been done along the lines indicated. No business of any importance was transacted. except a statement being made to the directors by Breckenridge Jones, vice president of the company. that the deposits were more than three times the amount of the withdrawals during the day. Lawrence B. Pierce vice president of the Commonwealth Trust Company, said that deposits were many times the amount of withdrawals. Thomas W. Crouch. also a vice president of the Commonwealth, announced that the company had received offers of aid from outside banks that amounted to more than $15,000,000. but that all offers of aid were declined with thanks. "This goes to show. said Mr. Crouch, "the estimation in which St. Louis financlal institutions are held by outside banks. Not only the large banking-houses in New York, Chicago and Boston offered aid, but right here at home every bank in the State. I am told. asked if it could be of any assistance to some one or other of the trust companies. The following statement was issued by the Commonwealth Trust Company after a meeting of the Board of Directors Tuesday afternoon: To the Depositors of the Commonwealth Trust Company The assets of the Commonwealth Trust Company exceed its liabilities to its depositors by $5,749,552.03 Being fully acquainted with the condition of the company and its assets, and knowing that It is absolutely safe beyond all question, we, the undersigned directors, do hereby personally guarantee the payment in full of all current and saving deposit accounts now on the books of our company. Tom Randolph Sam M. Kennard, Otto F. Stifel. A. D. Brown, H. M. Coudrey. C. G. Know. Samuel C. Davis, L. B. Tebbetts. Albert N. Edwards. Lawrence B. Pierce. Edward L Preetorius, J. L. Randolph, George O. Carpenter. Thomas W. Crouch, M. B. Wallace, J. M Woods, S. S. DeLano. MERCANTILE TRUST COMPANY STATEMENT The following signed statement was is. sued by Festus J. Wade, president of the Mercantile Trust Company. late yesterday afternoon: Oct. 28. 1903. The run on the savings department of the trust companies in St. Louis yesterday was a "tempest in a teapot. It was oc. casioned by stock jobbers circulating rumors regarding St. Louis institutions, for the purpose of "bearing" the New York stock market to cover a very large bear interest short on Chicago and New York stock, The Mercantile Trust Company paid out (Tuesday) on its savings account $22,000. while In its commercial banking department de posits increased $127,000. The exercise of the thirty and sixty day rule in the savings departments by all the trust companies in St. Louis last night was done simply to keep currency and coin out of stockings and safe deposit boxes until the people having savings accounts could come to their senses The Mercantile Trust Company received voluntary offers from financial institutions of New York. Philadelphia. Chicago. New Orleans, Kansas City, St Joseph and San Francisco sufficient to pay off every dollar of its deposits at once All offers were, while highly appreciated, respectfully declined. as we closed the day with over a million dollars more cash than we had when the silly run began The Mercantile Trust Company's strength lies in its having $3,000,000 capital. $6,500,000 surplus and $325 000 undivided profite, with only $12,500,000 deposits Every one of the twenty-one directors of the Mercantile Trust Company who was in St. Louis yesterday when the run began signed an agreeit ment pledging their personal fortunes to pay its depositors in full r At the close of our books to-night our deposits show a net Increase of over $300,000. MERCANTILE TRUST COMPANY, By Festus J. Wade, President. Thomas H. West. president of the St. Louis Union Trust Company, declared that C the so-called "run" was over, and had done no damage except to the depositors o who had withdrawn their money and will lose the interest it had earned. NO BUSINESS MEN ta WITHDRAW ACCOUNTS. to "New York and Boston," he sald. "ofm fered aid in large sums, more than we di cared to accept. Only a few of our smalle est depositors withdrew their savings, and most of them will be back again. I know = of no business man who withdrew, and p our deposits are largely in excess of withdrawals during Tuesday and to-day.' At the Missouri Trust Company Joseph be L. Hanley, secretary of the company, said: et "The deposits in this company have & greatly exceeded the withdrawals, and a only a few of the smaller depositors called for their funds. Out of 8,000 whose names a are on our books less than 200 withdrew. $ We were offered outside help, which we to declined. as we have all the money of our own that we can use. Our cash on hand ea was much above the amount required by law, and it has never yet sunk anywhere de near that mark.' $ The following statement was made by A. Si A. B. Woerhelde. president of the Linci coln Trust Company: ca "All those who desired to withdraw got se their money before our regular closing co hour. There was no reason for the run except some groundless and vague rumors th sent out from Chicago stock brokers. The

4. October 29, 1903 Daily New Dominion Morgantown, WV

Article from Daily New Dominion, October 29, 1903

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St. Louis-Trust Companies Decline*Offers of Assistance from Other Cities. FINANCIAL FLURRY ABOUT OVER Demands of Depositors Promptly Met. One Institution Closes With Million More Cash Than When Run Began. Others Report Ample Funds. St. Louis, Oct. 29.-The statement of President Julius S. Walsh, of the Mississippi Valley Trust company, whose sentiments are echoed by other trust company officials of St. Louis, that "the situation is thoroughly in hand, the excitement has subsided and from this on we expect business will be conducted in the usual orderly manner," expresses the opinion that seems general, after the unwonted financial conditions which prevailed here. Offiçers of all the trust companies state that voluntary offers of help were received from financial institutions in New York, Philadelphia, Chicago, New Orleans, Kansas City, Boston and many of the smaller towns of Missouri and Illinois, but all were declined for the reason that they had sufficient cash with which to handle their business. Expressions of confidence and offers of aid on the part of national banks, financial and other institutions of St. Louis have helped to strengthen the situation and restore confidence. No Reason for Further Concern. "The flurry is over," said A. A. B. Woerheide, president of the Lincoln Trust company. "Long before our regular closing hour arrived all those who desired their money had received It and departed. There is no reason for further concern." President Julius S. Walsh, of the Mississippi Valley Trust company, said: "There is absolutely nothing in the past or present condition of our company to justify the slightest apprehension. All demands of every kind were met, and we had more cash on hand when we closed than when we opened Tuesday morning." Festus J. Wade, president of the Mercantile Trust company, said: "The Mercantile Trust company received voluntary offers from financial institu tions of New York, Philadelphia, Chicago, New Orleans, Kansas City, St. Joseph and San Francisco, sufficient to pay off every dollar of its deposits at once. All offers, while highly appreciated, were respectfully declined, as we closed the day with over a million dollars more cash than we had when the silly run began." Outside Ald Refused. John W. Harrison, first vice president of the Missouri Trust company, said: "Other financial institutions have placed at our disposal any amount of cash funds that we might ask for in this contingency. We are pleased to say, however, that we have not been obliged to ask any financial aid whatever and have over $400,000 of cash in our vaults and ample funds at our command to meet all our liabilities of every description." G. A. Buder, counsel for the American Central Trust company, said: "Our company is practically unaffected by the flurry. I believe the situation IS clearer and that the worst is over." Lawrence B. Pierce, first vice president of the Commonwealth Trust company, stated that their deposits had been many times the amount of the withdrawals. Henry Koehler, Jr., president of the Germania Trust company, said that nothing of any consequence was drawn out of his institution, and that offers of aid received from other financial centers were thankfully declined as unnecessary. Thomas H. West, president of the St. Louis Union Trust company, stated that the so-called run was past and had done no damage except to depositors who had withdrawn their money. "Only a few of our smallest depositors withdrew their savings and they will be back again said Mr. West

5. October 29, 1903 The Indianapolis Journal Indianapolis, IN

Article from The Indianapolis Journal, October 29, 1903

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No Further Excitement Over the Run That Was Started by False Rumors on Tuesday. CONFIDENCE FULLY RESTORED BANK OFFICIALS UNANIMOUS IN SAYING THE FLURRY IS OVER. Many Offers of Financial Aid-Over $2,000,000 in Gold Transferred from the Subtrensury. ST. LOUIS, Oct. 28.-The statement of President Julius S. Walsh, of the Mississippi Trust Company, whose sentiments are echoed in interviews by other trust company officials of St. Louis, that "the situation is thoroughly in hand, the excitement has subsided and from this on we expect business will be conducted in the usual orderly manner," expresses the opinion that seems general to-night after the unwonted financial conditions which prevailed here during parts of yesterday and to-day. Officers of all the trust companies state that voluntary offers of help were received from financial institutions in New York, Philadelphia, Chicago, New Orleans, Kansas City, Boston and many of the smaller towns of Missouri and Illinois, but all were declined for the reason that they had sufficient cash with which to handle their business. Expressions of confidence and offers of aid on the part of the national banks, financial and other institutions of St. Louis helped to strengthen the situation and restore confidence. "The flurry is over," said Mr. A. A. B. Woerheide, president of the Lincoln Trust Company. "Long before our regular closing hour arrived all those who desired their money had received it and departed. There is no reason for further concern." President Julius S. Walsh, of the Mississippi Trust Company, said: "There is absolutely nothing in the past or present condition of our company to justify the slightest apprehension. All demands of every kind were met, and we had more cash on hand when we closed this afternoon than when we opened yesterday morning." Festus J. Wade, president of the Mercantile Trust Company, said: "The Mercantile Trust Company received voluntary offers of financial institutions of New York, Philadelphia, New Orleans. Kansas City, St. Joseph, Chicago and San Francisco sufficient to pay off every dollar of its depositors at once. All offers were, while highly appreciated, respectfully declined, as we closed the day with over a million dollars more cash than we had when the silly run began." John W. Harrison, first vice president of the Missouri Trust Company, said: "Other financial institutions have placed at our disposal any amount of cash funds that we might ask for in this contingency. We are pleased to say, however, that we have not been obliged to ask any financial aid whatever and to-night will have over $400,000 of cash in our vaults and ample funds at our command to meet all our liabilities of every description." Mr. G. A. Buder, counsel for the American Central Trust Company, said: "Our company is practically unaffected by the present flurry. I believe the situation is cleared and that the worst is over." Lawrence B. Pierce, first vice president of the Commonwealth Trust Company, stated that their deposits had been many times the amount of the withdrawals. Henry Koehler, jr., of the Germania Trust Company, said that nothing of any consequence was drawn out of his Institution; and that offers of aid received from other financial centers were thankfully declined as unnecessary. Thomas H. West, president of the St. Louis Union Trust Company, stated that the so-called run was past and had done no damage except to depositors who had withdrawn their money. "Only a few of our smallest depositors withdrew their savings and they will be back again," said Mr. West. Many depositors lined up at the savings banks this morning but were notified they must give the requisite notice of withdrawal. There was no excitement and the crowds soon dwindled away. NEW YORK, Oct. 28.-The total transfers to St. Louis at the subtreasury were $2,100,000, making a grand total to St. Louis, Chicago and New Orleans of $2,950,000.