13903. Chelsea National Bank (Atlantic City, NJ)

Bank Information

Episode Type
Suspension → 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
4ee07d6f

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

Articles indicate the Chelsea National Bank in Atlantic City was closed and had a receiver (Charles Faircloth / receiver mentioned). A 1934 suit by the receiver seeks to set aside a stock transfer, describing the bank as in 'critical condition' and referencing an impending failure, merger activity and assessments. No explicit contemporaneous depositor run is described in the provided excerpts; the evidence points to suspension and receivership (permanent closure). OCR errors in Article 1 made some text garbled; dates were taken from the newspaper metadata (1933-02-09 and 1934-04-05).

Events (5)

1. June 27, 1901 Chartered
Source
historical_nic
2. January 27, 1933 Receivership
Source
historical_nic
3. February 9, 1933 Receivership
Newspaper Excerpt
Faircloth, receiver and Charles ... the closed banks ... receiver in charge One government Atlantic City banks closed the courts. access The deposit boxes ... the receiver refuses permit him the open ... boxholders sign ... asking alleged, they their keys in the permitted boxes, rented by year.
Source
newspapers
4. February 9, 1933 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank in critical condition with reserve depletion, impending failure and merger activity; closures mentioned and receiver in charge.
Newspaper Excerpt
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
Source
newspapers
5. April 5, 1934 Other
Newspaper Excerpt
Chelsea Bank Receiver Would Set Aside Stock Transfer to Daughter ... Charles Faircloth, the bank. The charges that knowing critical condition bank, transferred 103 shares Chelsea National Bank stock Frances Greenspan ... charged Salus retained his name ... After merger National Bank Jan. last the bank declared and the following month stock assessThe charged that Salus virtue position the critical condition ... impending failure due the bank tinuing borrowreserve seepage deposits.
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