1190301584 119030
national
7ca272d93244b85eFull suspension, Books examined
Other: Direct request that the Comptroller of the Currency take possession and appointment of a federal receiver (controller/receivership takeover).
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BANK RECEIVER TAKES CHARGE Mr. E. M. Webster, of Florida, who has been appointed as recelver of the Boston National Bank, arrived Monday and has taken over the affairs of the bank. The Federal Bank Examiners, Mr. Chas. W. Motter and Mr. Palmer, left Tuesday.
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CLOSE IN BURLINGTON AND RALEIGH, N. C. RALEIGH, Dec. Commercial National bank, largest independent financial institution in Raleigh. failed to open its doors this morning, after rectors had voted close pending meeting of stockhold- The September statement of bank showed deposits of $4,286,942, capital stock of $600,000, surplus and reserve of $136,163 bills payable of $295,000. The officers are B. S. Jerman. president. Crow, and Bauman, vice presidents, and Little, cashier. President Jerman and Mr. Crow issued statement attributing the closing failure of farmers and others to be able to meet seaspayments because of low crop prices. Dec. 17. authorities today going over the affairs the First National bank of Burlington, closed yesterday by order Barnett, national bank examiner. The bank. in its last statement. listed assets of $2,150,000 No statement its present tondition given out. Malone, cashier who has been tive charge of the bank since the from actual control of Iasley, president. several years ago, said shrinkage the value of bonds held bank was responsible for the There run on the bank, was officials Burlington's four and banks announced that they other had prepared during the condition which might meet because of the clostoday ing. BOSTON BANK CLOSES BOSTON, Dec. National bank, offices on Devonshire main downtown Boston, and street, branches, remained closed at four today, the customary time. notice posted opening that the controller of currency had been asked to take it over to the assets, owing to conserve heavy demands by depositors. the time the consolidaAt Boston National bank tion the Continental National with the about ago the combank year bined deposits of the merged stitutions given approxi$9,500,000 and the mately bined were set at 000,000. The Continental originalthe Engineers' National was bank, but its name was changed after the Brotherhood Locomotive Engineers relinquished trol affairs. The the 13th New England bank to close its doors period of four days. CONN. BANK CLOSES Conn., Dec. Hamden Bank Trust company remained closed today. Assets the bank in the last statement published March, USE 90-DAY RULE BOSTON, Dec. Boston Traveler says that the savdepartment of the Exchange Trust company of Boston, the Millbury Savings bank, Millbury, Mass., and every savings bank Lawrence and Lowell today availed themselves of This provision permits them require 90 days notice from positors seeking to withdraw funds.
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Boston, Dec 17.-(UP)-The Boston Continental National Bank, with deposits approximating $7.000,000, failed to open for business today. It was the second National bank to close in Boston this week. the much-larger Federal National Bank having closed Tuesday. According to President T. M. Ragan, the Continental National, with two in town and two suburban branches, was closed to protect the depositors in the face of unusually heavy withdrawals. A notice posted at the bank's entrance read: "Due to extraordinarily heavy withdrawals caused by general public uneasiness and in order to conserve the assets of the bank, which in the due course of an orderly liquidation should pay all depositors in full, directors of the Boston Continental National Bank have asked the controller of the currency to take possession of the institution." Boston, Dec 17.-(UP)-With deposits aggregating $61,701,238 tied up by the closing of 10 National banks and trust companies, efforts were made to-day to discourage runs on several savings banks. Reminded that never in history has a Massachusetts savings bank been obliged to close, depositors generally refused to become panicky over developments affecting the other types of banks. But in East Boston, South Boston and Lowell, runs had been reported on savings banks. "The banks in East Boston and South Boston, where the runs are being made, are two of the strongest banks in the state," said State Bank Commissioner Arthur Guy. "They are both in excellent shape and they can't possibly be tired out by a run." Deposits tied up bank closings surpassed the sixty million dollar mark yesterday afternoon when the Lowell Trust company of Lowell, with $3,961,000 on deposit, closed. This was the 10th Massachusetts bank to close within 48 hours, and the 15th New England bank to close since October 1. After the bank commissioner took charge of the Lowell Trust company at the behest of its officials, the seven savings banks in that important industrial center decided, as a precautionary measure, to invoke the 90-day privilege. Thus, during the next three months, depositors of these banks will be ableto withdraw not more than $100 each. Herbert Pearson, appointed by the controller of the currency as receiver for the Federal National Bank of Boston, to-day was directing the preliminaries to liquidation, with bank officers still asserting that depositors would be paid in full. All the closed banks except the Lowell Trust company were affiliates of the Federal National which, with its five Greater Boston branches, closed Tuesday. Hamden. Conn, Dec 17.-(UP)The Hamden Bank and Trust company was closed to-day on a restraining order issued by the state banking commissioner. The action was understood to have been taken to protect depositors. The bank's last statement listed general deposits of $570,000 and savings deposits of $688,000, capital of $200,000, surplus of $75,000 and undivided profits of $44,000. Examiner George Ogden of the state banking commission. who was examining the bank's books to-day, said the state intervened after continued withdrawals by letter had placed the institution in an unlilquid position. There was no "run" on the bank, he said. Heavy withdrawal of Christmas savings contributed to the bank's
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Bank in Boston With Four Branches Closes Because of Heavy Run BOSTON, Dec. 17. (AP) The Boston-Continental National bank. with main ofices on Devonshire street. downtown Boston, and four branches remained closed at 9 m., today, the customary opening time. A notice was posted that the comptroller of currency had been asked to take it over to conserve assets, owing to heavy demands by depositors. At the time of the consolidation of the Boston National bank with the Continental National bank about a year ago the combined deposits of the merged institutions were given as approximately $9.500,000 and the combined resources were set at $11,000,000. The continental originally was the engineer's National bank. but its name was changed after the brotherhood of locomotive engineers relinquished control of its affairs. -Christmas Cheer Goal Is $2,000-
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BOSTON-CONTINENTAL BANK CLOSED TODAY The National Bank, formerly tional, at 60 st, failed open its doors for business morning notice was win. dow that the the currency the of the tion. Only small groups gathered to discuss the ington st, 1132 HIL 345 Hill av, Roxbury All of these this forenoon. The main bank did not open as usual 8:45 morning. This fact gether with the the flag which flying in front the the ful of who were to enter it apprehensive. About 9:15 the notice drawals by public easiness assets the bank, which due orderly should pay full, the directors the have asked the controller the rency to take possession of the institution.' Officers and The directors of the Continental Terrell Ragan, Fred W. Strobel, BarClark, Greaney, Charles Jesse Morton, Thomas Brien Wiland David the of the dated Sept last, the were then as follows: Loans discounts owned and and fixtures than Federal Reserve Bank Treas Total resources the listed in the Sept 29 report as follows: Capital stock paid Reserves for taxes and
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Bank Suspensions. Boston, Dec. 17 BosNational bank, with main on Devonshire street, downtown Boston, and four branches, remained closed at 9 m. today, the customary opening time. notice was posted that the comptroller of been asked to take it over to conserve assets, owing to heavy demands by depositors. At the time of the consolidation of the Boston National bank with the Continental National bank about a year ago the combined deposits of the merged institutions were given as approximat $9. and combined resources were set at $11,000,000. Hamden, Conn. Hamden. Conn., Dec. 17 (P). The Hamden Bank and Trust company closed today in the last published statement were $2,097,683.26. Lowell, Mass. Mass., Dec. 17 Business was suspended by the Lowell Trust company which recently reported and mercial deposits of $3,384 428. It was the second Lowell bank to close within two days, the Middlesex National bank with deposits of $4 000,000 having suspended operations yesterday. Burlington, C. Burlington, N. Dec. 17 (P) The First National Bank of Burlington, with assets at the time of its last statement of approximately $2,150,000. was closed by order M. Barnett national bank examiner. R. W. Malone, cashier, who in active charge, indicated the due to shrinkage in the value of bonds held. Calais, Me. Calais, Me. Dec. The InTrust and Banking company here Wednesday. It was announced the action was necessary because of heavy withdrawals by Canadian depositors. Raleigh, N. C. Raleigh, Dithe Commercial National bank, largest independent bank in the capital city, late last night voted to close the bank pending meeting of the stockholders. The September 29 statethe bank listed deposits at had a capital stock of $600,000.
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Second National Bank In Boston Is Closed To-day Action Taken to Prevent Heavy Withdrawals Hamden, Conn, Bank Also Closes, Although in Good Shape Boston National Bank. with deposits approximating $7.000, failed to open for business today. It was the second National bank to close in Boston this week. the much Federal Bank having closed Tuesday According to President T. M. Ragan, the Continental National, with two in town and two suburban branches, was closed to protect depositors in the of unusually heavy A notice posted at the bank's entrance read: "Due to extraordinarily heavy caused by general public uneasiness and in order to conserve the assets of the bank, which in the due course of derly should pay all positors in full, directors of the Boston Continental National Bank have asked the controller of the currency take possession of the Boston, Dec deposits $61,701,238 tied by closing of National banks and trust companies. efforts were made to-day to discourage runs on several savings banks. Reminded that never in history has Massa bank been obliged to close, depositors generally refused to become panicky over affecting the other types of banks. But in East Boston, Boston and Lowell, runs had been reported on savings banks. "The banks in East Boston and South Boston, where the runs are being made, are two of the strongest banks in the state,' said State Bank Arthur Guy. "They both in shape and they can't possibly be tired out by run.' Deposits tied up bank closings surpassed the million dollar mark afternoon when the Lowell Trust company of Lowell with on deposit, closed. This was the 10th Massachusetts bank to close within hours, and the 15th New England bank to October After bank commissioner took of the Lowell Trust company at the behest of its officials, the seven savings banks in that important industrial center as precautionary measure, to invoke the 90-day Thus, during the next three months, depositors of these banks will be ableto withdraw not more than $100 each. Herbert Pearson. appointed by the controller of the currency for the Federal National Bank of Boston, to-day was directing the preliminaries to liquidation, with bank officers still asserting that depositors would be paid in full. All the closed banks except the Lowell Trust company were affillates of the Federal National which, with its five Greater Boston branches, closed Tuesday. Hamden. Conn, Dec (UP) The Hamden and Trust pany closed to-day on straining order issued by the state commissioner The action was understood to have been taken to protect deposiThe bank's last statement listed general deposits and savings deposits of $688,000. tal of $200,000, of $75,000 and undivided profits $44,000. Examiner George of the state banking commission. who was the bank's books said the intervened after continued withdrawals by letter had placed the institution in an unlilquid position. was no "run" on the bank, he said. Heavy withdrawal of Christmas savings contributed to the bank's reported these charges as discovthe The article said that the committee had "secured evidence' secret payments money Columbia football that the committee had learned that athletes professional sports in the summer with knowledge of Columbia coaches. that committee had discovered that football players are favored with Columbia university scholarships and that one of the stars of the team was being supplied by money by "a friend of Columbia, president, said. He gave the following figures on the bank's funds at the time of its closing: Total deposits commercial and savings, $1,500,000, savings, $1,500,000, savings, $700,000. and undivided prefits( $44,000. Included in deposits are funds collected by the town tax collector. am convinced that depositors will receive every dollar deposited when the bank's finances are adBroadbent said. 'Inability to liquidate real estate and lateral loans and the depreciation of securities helped bring on the closing, he added. The bank has about 5,000 depositors. Hartford, Conn. Dec 17-(UP) Banking Commissioner George Bassett issued the following statement today the closing of the Hamden Bank and Trust Company. 'Due to inability to collect immediately certain loans which were in badly frozen condition and also due to the recent shrinkage in the market value of securities carried in the bank's portfolio, the officers of the bank found they unable to meet withdrawals and therefore for better protection of all their depositors the restraining order was placed. believed that the savings are well protected securities segregated in that department. Commissioner Bassett said the bank had total assets of $2,395,478.41 as of Sept 30, 1930.
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BOSTON BANK AND FOUR BRANCHES FAIL TO OPEN Boston National bank. with main offices on Devonshire street downtown Boston, and four branches, remained closed at 9
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ANOTHER BOSTON BANK SUSPENDED BOSTON, Dec. 17 (U.P.)-The Boston Continental National bank with deposits of more than $7,000,000 failed to open today. It is the second national bank to close in Boston this week. The larger Federal National closed Tuesday. The Continental bank president, T. M. Ragan, said the closing was caused by the unusually heavy withdrawals. The bank has two down town and two suburban branches.
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(RC BANCOS CERRAGON SUSPUERTAS sto dic. 19.-Como resulBdo de las grandes vetiradas de dinero, cuatro bancos cerraron a sus puertas ayer, en New Inde gland. de Las instituciones bancarias que han suspendido sus operacio freció nes son el Boston Continental un National, de Boston; el Hamden Bank and Trust Company de Hamden, Conn.; el Arlington Trust Co., de Lawrence, y el Plymouth County Trust Co., de PERBrockton. El estado financiero de los bancos, según los últimos informes rendidos es como sigue: Boston resiContinental, depósitos de 6,281, esqui960 pesos, capital en existencia los de $1,000,000, sobrantes $150, 000; Hamden, valores de 2,097, diez 683 pesos; Arlington Trust, deen pósitos de $7,150,003.70; Plyla a mouth County, depósitos de co- $3,816,073.73.
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COUNSEL TO BANK RECEIVER Henry Parkman Jr Named for Federal National By CHARLES S. GROVES WASHINGTON, Dec 28- Henry Parkman Jr has been appointed counsel to Receiver Herbert Pearson of the Federal National Bank of This uncement was made at the office of the Controller of the Currency this CUNNINGHAM RECEIVER FOR BOSTON-CONTINENTAL The Controller the Currency antoday the appointment of John B. Cunningham as receiver for the closed Boston. National Bank.
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INVESTIGATION STARTED Relative to Affairs of Closed Bank in Boston Boston, March 1, federal grand jury today began an inquiry into the affairs of the closed Boston Continental National bank. Assistant U. S. District Attorney John J. Walsh, Jr., began presentation of the evidence to the jury. A large number of winesses were on hand.
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$100,000 Suit Tops May Term Docket Boston Bank Receiver Files Action On Old Orchard Beach Man's Promissory Notes; Trial List Short HARLES W. USEN of Old Orchard Beach was named defendant in a $100,000 action filed in Superior Court today as the May term began. The suit was by far the largest in a comparatively short list, only about 100 cases being returned altogether. Actions involving automobile accidents, in two of which there were fatalities, accounted for ad damnums totaling more than $150,000. Sued By Bank Receiver Mr. Usen was sued by John B. Cunningham, receiver of the Boston-Continental National Bank of Boston. It was alleged he gave his promissory note for $31,000, Oct. 26, 1931. and gave another note for $17,000, Nov. 6. 1931. William H. Arey of Portland sought a total of $25,000 from James A. Clarke of Portland as the result of the death of his wife. Elizabeth M. Arey, following an automobile mishap at North Kennebunk past Jan. 17. Mrs. Arey. according to the writ, was riding with the defendant when his car collided with that of Frank E. Caton, and she suffered injuries from which she died March 2. Arey filed two suits against Clarke, seeking $10,000 for his wife's death as administra(Continued on Page 2, 2nd Column)
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Fur Neckpieces Sold as Closed Bank Asset Boston. - Thirty-five expensive fur neckpieces were sold at retail in the main banking room of the Boston-Continental National bank recently as a novel means of turning collateral into cash. John B. Cunningham, a federal government representative assigned to liquidate the closed bank's assets, first sought to sell the 35 furs, on which the bank had lent money, in one batch, but when he was offered only $200 he decided on disposing of them at retail. In so doing he obtained more than four times as much money as the amount offered for the lot.
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CUNNINGHAM NAMED Boston. March 16-(UP) - Appointment of John B. Cunningham, receiver for the Boston-Continental National bank, as conservator for the National City bank of Chelsea, was announced today. This is believed to be the first such appointment in this federal reserve district.
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Named Bank Receiver. James H. Brennan today was named receiver for the Boston Continental National Bank and the State National Bank of Lynn. Mass, succeeding John B. Cunningham, resigned. California has more airports and landing fields than any other state, 214. The home of Schuyler Colfax. ones vice of the United States has been razed at South Bend. Ind