Mercantile Bank & Trust Company (New York, NY)

Episode Information

Episode UID
1079171572
Episode Type
Suspension → Reopening
Bank Type
state
Bank ID
107917 routing
Routing Number
1-0791
Start Date
December 23, 1930
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
1ebde13a241eb837

Response Measures

None

Description

Reorganized taking over Chelsea Bank & Trust; exact reopening day in June 1931 unspecified.

Events (3)
1. December 23, 1930 Suspension
Cause Details
Article reports the Chelsea Bank closed Dec. 23 but gives no specific trigger for the suspension.
Newspaper Excerpt
closed its doors last December 23
Source
newspapers
2. March 13, 1931 Other
Newspaper Excerpt
Reorganization as Mercantile Bank and Trust Co. Announced by Broderick. ... Date opening undetermined.
Source
newspapers
3. June 1, 1931* Reopening
Newspaper Excerpt
re-opeend on June under the name of the Mercantile Bank and Trust Company. (re-opened in June 1931 under new name.)
Source
newspapers

Newspaper Articles (2)
1. March 13, 1931 The Brooklyn Daily Times Brooklyn, NY
Article from The Brooklyn Daily Times, March 13, 1931

Click image to open full size in new tab

Article Text

CHELSEA BANK'S DEPOSITORS GET MONEY IN FULL Reorganization as Mercantile Bank and Trust Co. Announced by Broderick. H. M. STILLMAN AT HELM William A. Lobb to Be Vice President-Opening Date Still Undetermined. Payment in full to all depositors creditors of the Chelsea Bank Trust complete reorganunder the name the Bank and Trust nounced today by Brod superintendent the State Banking Department Date opening the institution not public. Mr. Broderick disclosed that the for reorganization approved and signed today by SuCourt Justice Townley Manhaitan and returned to him. The bank headed Stillman president affiliated with the Chase Bank. The William Lobb. the of meeting early Banking Broderick revealed today. to vote approval of the plan. Under terms of the petition approved today by Justice Townley does not take unless plan of the of Bank formally approve special meeting. Depositors of old bank receive no interest on their money the period from Dec. bank closed. Only preferred by law be paid bank receive any Assured Against Loss Under the plan. published Chelsea receive new stock assuring them against any through taking over of the by the Banking Names of directors made public addition to the president and president Jules E. Brulatour. of the East Kodak Co.: Louis Golde. Sons, merchants: George real estate operator: Toney Hardy. attorney. of Hardy Hardy. counsel for the reorganizacommittee of the bank: Robert Connolly. treasurer of the Illinois Central Railroad: John Madden. resident Alexander Hamilton InErnest Nye. of Freeman bankers: Ernest Satterbanker. New Shares $12 Each The 75,000 shares stock issued the new bank will have par alue Stockholders of the Chelsea Bank receive share the new stock for each two they hold Broderick revealed in that the Chelsea Bank now deposit various instituwhich has been by the Banking Departin outstanding loans and by of securities. The Banking has also wiped off in debts to outside credother than depositors. Mr. Broderick made the following atement few minutes before his for the reorganization had signed by Justice Townley: "Superintendent Broderick subtoday to Alfred H. Townley, of the Supreme Court. holdSpecial Term, Part II. New County, petition for of plan organization of trust company to be known Mercantile Bank and take over the assets Chelsea and Trust Co.. and assume in full of the principal Following Page)

2. June 10, 1931 The Bangor Daily News Bangor, ME
Article from The Bangor Daily News, June 10, 1931

Click image to open full size in new tab

Article Text

Re-opening of Suspended Banks number of the banks in the South which were forced to suspend have recently re-opened for business. In New York City, the Chelsea Bank and Trust Company, which closed its doors last December 23, re-opeend on June under the name of the Mercantile Bank and Trust Company. There were 1,345 suspensions of banks in the United States during 1930, more than in any previous year. Deposit liabilities of the suspended banks amounted to whereas the highest previous figure had been in 1926. The large number of bank suspensions in 1930 was due to some extent to the fact that number of banking chains were compelled to close their doors. Most of the susbut three had total of banks were small ones, pending in deposits, thus materially increasing the figure for the liabilities of all suspending banks. When bank is forced to suspend, proportion of its available to depositors by loans deposits is usually made from other banks on certificates of deposit, or by releases of some of its funds by the receiver. Additional funds are naturally available to the depositors when suspended bank In 1930, 147 suspended banks rere-opens its doors. In other words, the opened, with deposits of $62,000,000. number of re-opened banks in 1930 was 11 per cent of the number of suspended banks. The deposits of the re-opened banks were seven per cent of the deposits of suspended banks in 1930. For the first four months of 1931, the number of suspended banks was 432, compared with in the first four months of 1930. Their deposits were as against deposits of $119,000,000 in suspended banks in the first four months of 1930. However, in the first four months of 1931, there were 161 re-openings of suspended banks. This was 37 per cent of the number of banks suspending in that period. The deposits of the re-opening banks amounted to 35 per cent of the deposits of banks suspending in that period. It will be noticed that these percentages for the re-opening banks in the first four months of 1931 are considerably higher than the similar percentages for the whole year 1930. Of the banks which suspended in 1930, 45 per cent had capital stock of less than $25,000, and an additional 22 per cent had capital stock of $25,000. Only 17 per cent had capital stock of $100,000 or over. per cent of these banks in 1930 were in towns of less than suspending 1,000 population and only 13 per cent were in cities of more than 10,000 population. The big banks, almost without exception, have stood the test of hard times.