12405. Chelsea National Bank (Atlantic City, NJ)

Bank Information

Episode Type
Suspension โ†’ Closure
Bank Type
national
Bank ID
5884
Charter Number
5884
Start Date
February 9, 1933
Location
Atlantic City, New Jersey (39.364, -74.423)

Metadata

Model
gpt-5-mini
Short Digest
a00fabbadb50814b

Response Measures

None

Receivership Details

Depositor recovery rate
10.3%
Date receivership started
1933-01-27
Date receivership terminated
1941-05-29
Share of assets assessed as good
4.3%
Share of assets assessed as doubtful
70.3%
Share of assets assessed as worthless
25.4%

Description

OCR is poor in the excerpts. The articles refer to Chelsea National Bank of Atlantic City, mention the bank being closed with a receiver in charge and subsequent legal actions by the receiver (Charles Faircloth). There is no clear description of a depositor run; instead the bank was closed and a receiver was appointed, and later the receiver pursued litigation (Apr 5, 1934 article). Thus this appears to be a suspension leading to permanent closure/receivership. Dates are taken from the newspaper publication dates and content; exact appointment date of the receiver is not explicitly given in the text but the Feb 9, 1933 article references closed banks and a receiver in charge.

Events (4)

1. June 27, 1901 Chartered
Source
historical_nic
2. January 27, 1933 Receivership
Source
historical_nic
3. February 9, 1933 Suspension
Cause
Government Action
Cause Details
Bank was closed and a receiver put in charge (closure by authorities/receiver).
Newspaper Excerpt
Yesterday affidavit which ographed the closed banks are boxholders ... Chelsea National Bank ... closed the courts.
Source
newspapers
4. April 5, 1934 Receivership
Newspaper Excerpt
Chelsea Bank Receiver Would Set Aside Stock Transfer to Daughter ... Charles Faircloth, the bank ... charged that Salus knew condition ... after merger National Bank Jan. last the bank declared ... receiver filed today (Trenton, April ...).
Source
newspapers

Newspaper Articles (2)

Article from Press of Atlantic City, February 9, 1933

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Article Text

Duell Brings Suit for Acto Safe Deposit cess Box receiver in charge One government Atlantic City banks closed the courts. access The deposit boxes, times the action before yesterday Judge Duell, attorney the Charles Chelsea National Bank which will brought action, tested Duell other papers deposit the National Bank which Second claims that Faircloth, receiver and Charles of the representative refuses permit him the open reporter saw mimeYesterday affidavit which ographed the closed banks are boxholders sign and asking alleged, they their keys in the permitted boxes, rented by year. formal address the After and blank space for insertceiver number and the leasee's the box certifies that name, affiant "not indebted to the Atlantic City National Northside Trust Company Union Naliquidation) Bank either tional maker, endorser guarantor, rectly indirectly any form obligation held any other the said banks. boxholder asked and sayeth that he shares of the capital holder any (Continued on Page Five)


Article from Press of Atlantic City, April 5, 1934

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Article Text

Demands Liability Chelsea Bank Receiver Would Set Aside Stock Transfer to Daughter CLAIM HE KNEW FACTS TRENTON, April Court asked the leged transfer" shares National Bank stock made Joseph Salus, Atlantic filed today Charles Faircloth, the bank. The charges that "knowing critical condition" bank, transferred 103 shares Chelsea National Bank stock Frances Greenspan, Philadeldaughter. Faircloth that the "pretended transfer made consideration and with the said Joseph Salus from liability stockholder Frances the daughter the Joseph Salus wholly unable respond liability the the shares National stock for which the 103 shares exchanged. charged Salus retained his name only ten shares which the number required qualify director. Salus president the Chelsea National Bank merger Second National Bank the lantic County Trust Company, relates. After merger National Bank Jan. last the bank declared and the following month stock assessThe charged that Salus virtue position the critical condition during merger and period following merger the transfer stock impending failure due the bank tinuing borrowreserve seepage deposits. today was in against Salus filed February