15021. Federal Trust Company (Cleveland, OH)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust
Start Date
March 31, 1904
Location
Cleveland, Ohio (41.499, -81.695)

Metadata

Model
gpt-5-mini
Short Digest
9a741b5817be50e4

Response Measures

None

Description

The Federal Trust Company of Cleveland made an assignment to the Guardian Trust Company on March 31, 1904 after its secretary-treasurer George F. (Clewell) disappeared and shortages/embezzlement were discovered. The assignment is described as a failure/assignment (permanent) with an assignee taking over deposits; articles describe a petition to hold stockholders liable and arrest of Clewell. There is mention that the assignment was taken to avoid a run; some other local banks experienced runs, but no sustained run on Federal itself is reported prior to assignment. Assets/deposits figures and estimated shortage (~$18,000) are noted in the articles.

Events (3)
1. March 31, 1904 Receivership
Newspaper Excerpt
The Federal Trust company today made an assignment to the Guardian Trust company. ... The depositors of the Federal Trust company are presenting their books for verification and assigning their deposits through the Guardian Trust company, who are issuing their own passbooks for the full amount of deposits and interest.
Source
newspapers
2. March 31, 1904 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Disappearance of secretary-treasurer George F. Clewell and discovery/reports of a shortage (embezzlement) in the company's accounts; precipitated assignment.
Newspaper Excerpt
The Federal Trust Company today made an assignment to the Guardian Trust Company. ... The disappearance of a prominent official of the Federal company precipitated matters and the directors decided an assignment would probably avoid a run on the bank and protect all interests.
Source
newspapers
3. April 1, 1904 Other
Newspaper Excerpt
WARRANT FOR CLEVELAND BANKER. ... George F. Clewell, the missing secretary and treasurer of the assigned Federal Trust Company, ... A check for $8,100 cashed by Clewell last Saturday was found in a package of currency ... Another discrepancy of $10,000 in the bank's accounts will be made good by the check of the Bankers' Surety Company, when it pays Clewell's bond of $10,000.
Source
newspapers

Newspaper Articles (12)
1. March 31, 1904 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, March 31, 1904

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Article Text

FEDERAL TRUST COMPANY FAILS Big Financial Concern at Cleveland, Ohio, Makes an Assignment Today A HEAVY SHORTAGE WAS FOUND One of Its Officials Said to Have Disappeared-Guardian Trust Company Takes Over Federal's Affairs-Union Trust Company at Boston Closes Its Doors. Cleveland, March 31.-The Federal Trust Company today made an assignment to the Guardian Trust Company. The action it is stated is the result of the disappearance of a prominent official of the Federal Trust. Reports are in circulation that a shortage has been found in the funds of the concern. While no statement has been filed, it is stated that the Federal will turn over about $1,000,000 in deposits to the assignee. Its total assets are about $3,000,000 capital stock a million and a half, surplus fund of $50,000, and about $140,000 undivided profits. Officials state the deposits were about a million at the close of business last night. An agreement was practically reached between the directors of the Federal Trust Company and the Guardian Trust Company several days ago, providing for the merging of the two concerns. The disappearance of an official of the Federal company, however, precipitated matters and the directors decided an assignment would probably avoid a run on the bank and protect all interests.

2. April 1, 1904 New-York Tribune New York, NY
Article from New-York Tribune, April 1, 1904

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BONDS. 103% North Pac 4s ½ + AT&SFg4s.101% * Reading gen 4s 96% B & gold 4s 102 SL&S ref 4s. 82½ Chic B & 4s 94 % + SLSW con 4s.. 72% 1/4 CRI&PRR + 1/2 Un Pac conv 4s... 98% Col T 5s. 79 75% U S Steel 5s 59½ Consol Tob 4s 14 611/4 Wabash D Bs KCFS&M4s. 80% STOCK MARKET OPERATIONS. Transactions in yesterday's stock market were made up in great part of the operations of the professional element and sales by dealers who decided to convert paper profits into cash. The board room element was bearish throughout the day, and in the absence of a public demand for securities early efforts to reduce prices met considerable success, although the reaction was not effective in bringing a large amount of stock on the market. There were no news developments of sufficient importance to induce liquidation, but the room traders thought that the trust company failures in Cleveland and Boston warranted an attack on values. These failures were not large enough to be classed as influential factors in the general financial situation, but, of course, the theorizing speculator immediately saw in the trust company troubles indications of serious disturbances in similar institutions in other parts of the country. The local banks are not affected in any way by the suspension of the Federal Trust Company in Cleveland, or by the failure of an unimportant concern in Boston. As a matter of fact, the stock market was ripe for a reaction, and the decline was due to technical conditions rather than to developments outside of the Exchange. Vigorous efforts have been made in the last few days to boost prices, and moderate improvement has been recorded, but the so-called public has not responded to a noteworthy degree, while, according to the reports from commission houses, there is nó immediate prospect of enthusiastic interest in speculation from that quarter. Important market operators are undoubtedly working to bring about a higher quotation level, and for this reason the ordinary trader ought to be extremely careful in selling stocks short. It is said that there is still a large short interest in Union Pacific. In well informed circles the tip has gone forth to hold Southern Pacific, but no reason is given for the belief that a higher price will be recorded in the near future. Southern Pacific, however, is not selling at an exorbitant level, and people who own the stock may act wisely in maintaining a tight hold of the issue, although profits may be a long time in coming. St. Paul, which has enjoyed improvement in the last week, is certainly entitled to its gain, and conservative operators believe that eventually this issue will sell far above its current level. The report of a close alliance between the St. Paul company and the Union Pacific, other than the trackage alliance already in operation between the two companies, is apparently dying a natural death, and the chances are that the attempt to convince the public that a new era of railroad consolidation is about to develop will end in miserable failure. The intrinsic value of securities, as a rule, is greater than the present market prices. Efforts to stimulate quotations through the medium of Wall Street fairy tales will injure the market and reduce the chances of a genuine bull movement in prices, and it is encouraging to note that the public shows no disposition to be gulled by the purveyors of false information. Conditions underlying the investment situation are favorable, and the time will come when the market will rise in response to the factors governing the actual worth of securities. People with ready money may find it advisable to buy stocks on all reactions. In the last hour of trading prices exhibited a rallying tendency from the low figures of the day, especially in St. Paul, Union Pacific, People's Gas and United States Steel preferred, in which the shorts appeared anxious to cover their outstanding contracts. As a result of this movement the greater number of issues recovered their early losses, closing at small fractional gains. People's Gas showed exceptional strength, ending at a net advance of 2 per cent on rumors that the company would win in its pending case in the United States Supreme Court. As to-day will be a holiday on the local exchange the weekly movement of money was compiled yesterday afternoon, and it is interesting to note that the loss of the banks to the Sub-Treasury has been offset by a gain from the interior. Unless, therefore, there has been a large increase in loans and deposits in the week, to-morrow's statement of the Clearing House banks ought to show an increase in the reserve above legal requirements.

3. April 1, 1904 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, April 1, 1904

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CRASH IN CLEVELAND Trust Company Assigns and Shortage Is Rumored. CLEVELAND, Ohio, March 31.-The Federal Trust company today made an assignment to the Guardian Trust company. The action is stated to have been taken as a result of the disappearance of a prominent official of the former company. Reports are in circulation that a shortage has been found. It is understood the Federal company will turn over about $1,000,000 in deposits to the assignee. Its total assets will be about $3,000,000. The company has a capital stock of $1,500,000. Officials state the deposits were about $1,000,000 at the close of business last night. They say depositors will lose nothing. The deed of assignment was signed by J. C. Gilchrist, president, and G. C. Bailey, assistant secretary of the Federal Trust company. It is stated that the shortage in the accounts of the Federal Trust company will subsequently not exceed $20,000. In view of sensational rumors, however, and the possibility of a run, it was deemed wise to make an immediate assignment. The two concerns were under an agreement recently ratified by the stockholders to be merged on April 1. Secretary and Treasurer Charles L. Mosher, of the Guardian Trust company, to which the Federal Trust company assigned, made the following statement today: "The depositors of the Federal Trust company are presenting their books for verification and assigning their deposits through the Guardian Trust company, who are issuing their own passbooks for the full amount of deposits and interest. The officials of the Guardian Trust company have verified the investments and collaterals securing the loans of the Federal Trust company, and find them on hand in accordance with their books. The investigation made satisfies the Guardian Trust company and they will assume in full the obligations of the Federal Trust company." A petition was filed in common pleas court today to subject the stockholders of the Federal Trust company to their statutory liability. H. G. McKean is the plaintiff in the action. Many stockholders are named as defendants, and accompanying the petition is the usual request that the court ascertain from the bank's books the names of all other stockholders and include them in the suit.

4. April 2, 1904 New-York Tribune New York, NY
Article from New-York Tribune, April 2, 1904

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Article Text

WARRANT FOR CLEVELAND BANKER. His Check Found in Package That Should Have Contained Currency. Cleveland, April 1.-The Bankers' Surety Company, which is on the bond of George F. Clewell, the missing secretary and treasurer of the assigned Federal Trust Company, received to-day a warrant for his arrest. This was required under the conditions on which their bond was issued. The surety company has sent out circulars to Its branch offices and secret service men to try to apprehend Clewell. A check for $8,100 cashed by Clewell last Saturday was found in a package of currency to-day, marked to contain $10,000. Only $1,900 of the $10,000 remained in the package. Another discrepancy of $10,000 in the bank's accounts will be made good by the check of the Bankers' Surety Company, when It pays Clewell's bond of $10,000. It is believed by the officials of the Guardian Trust Company, the assignee, that no further irregularities will be discovered. Mr. Clewell has been missing from his home in this city since last Saturday. His family say they do not know his whereabouts. His wife is prostrated over her husband's disappearance.

5. April 5, 1904 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, April 5, 1904

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MISSING TREASURER CAUGHT. George H. Clewell, of Cleveland, Are rested In St. Joseph, Mo. Cleveland, April 4.-A dispatch to Chief of Police Kohler of this city announces the arrest at St. Joseph, Mo., this afternoon of George H. Clewell, the massing secretary and treasurer of the assigned Federal Trust company of this city. Friends of Clewell have raised a fund and say they stand ready to make good any discrepancies he left in his accounts. The shortage so far as known amounts to $18,100.

6. April 5, 1904 The Laramie Republican Laramie, WY
Article from The Laramie Republican, April 5, 1904

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WILL NOW BE GOOD CASHIER OF FAILED TRUST COMPANY WILL RETURN TO CLEVELAND WITHOUT TROUBLE. Thinks His Shortage Will Amount to Eighteen or Twenty Thousand Dollars, and That He Was Led Into Irregularities to Lift Mortgage on His Home. St. Joseph, Mo., April 5.-George Caldwell, cashier of the Federal Trust company of Cleveland, O., today said he would not resist requisition. He said he thought his shortage would amount to $18,000 or $20,000, and that he was led into the irregularities to meet the mortgage on his home. Clewell fled a week ago, just before the company suspended. The warrant charges him with embezzling $18,000.

7. April 5, 1904 Perth Amboy Evening News Perth Amboy, NJ
Article from Perth Amboy Evening News, April 5, 1904

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Clewell Captured at St. Joseph. CLEVELAND, O., April 5.-A dispatch to Chief of Police Kohler of this city announces the arrest at St. Joseph, Mo., of George F. Clewell, the missing secretary and treasurer of the assigned Federal Trust company of this city.

8. April 5, 1904 The Savannah Morning News Savannah, GA
Article from The Savannah Morning News, April 5, 1904

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Article Text

Clewell Captured. Cleveland, O., April 4.-A dispatch to Chief of Police Kohler of this city announces the arrest at St. Joseph, Mo., this afternoon, of George F. Clewell, the missing secretary and treasurer of the assigned Federal Trust Company of this city.

9. April 6, 1904 The Cairo Bulletin Cairo, IL
Article from The Cairo Bulletin, April 6, 1904

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ARRESTED AT ST. JOSEPH. By the Associated Press. Cleveland, Ohio, April 5.-George F. Clewell, missing secretary-treasurer of the assigned Federal Trust company of Cleveland was arrested at St. Joseph, Mo., today. He is charged with $10,000 shortage in his accounts with the trust company.

10. April 8, 1904 Eagle River Review Eagle River, WI
Article from Eagle River Review, April 8, 1904

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OHIO BANK IN CRASH. Federal Trust Co. of Cleveland AssignsBoston Institution Closes Its Doors. Uneasiness caused by the strange disappearance of George F. Clewell, its secretary and treasurer, and rumors that he had embezzled a large amount, forced the assignment of the Federal Trust Company in Cleveland. News of the failure caused a panic among the depositors of the Pearl Street Savings and Loan Company, and a run was begun on that bank. The prominent institutions downtown, however, rushed coin and currency to the assistance of the bank, and when the clamoring crowd of depositors were admitted they found the counters piled high with silver dollars and smaller coins. The sight of the great piles of wealth was magical, and the crowd melted away. The Federal Trust Company assigned to the Guardian Trust Company. The action is said to have been taken as a result of the disappearance of Clewell and reports that a shortage had been found in the funds of the concern. The company's total assets will be about $3,000,000. It has a capital stock of $1,500,000, a surplus fund of $50,000 and about $140,000 undivided profits. According to its last report it had $2,188,862 in loans and discounts, $45,300 in real estate loans, and owned $729,000 stocks, bonds and mortgages. An agreement practically was reached between the directors of the Federal Trust Company and the Guardian Trust Company several days ago, providing for the merging of the two concerns. The disappearance of Clewell, however, precipitated matters, and the directors decided that an assignment probably would avoid a run on the bank and protect all Interests. Unable to provide for the unusual demands of its depositors, the Union Trust Company of Boston closed its doors. The liabilities of the company are placed at $1,600,000, with nominal assets of about the same amount. For some time past depositors have been making heavy withdrawals, and the management of the bank was unable to realize on securities quickly enough to meet these demands. The Union Trust ompany was incorporated in 1888. It was capitalized at $100,000, and its president is former Congressman William E. Barrett.

11. April 8, 1904 The Rice Belt Journal Welsh, LA
Article from The Rice Belt Journal, April 8, 1904

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EVENTS OF EVERYWHERE. Sour Lake has formed itself into a city and a full set of city officials are now in charge of affairs. Mrs. Lauro Casey, of Laredo, accidentally drank a cup of water that had been poisoned to kill rats, and died from the poison. The National Civil Liberty party, a negro organization, has called a meetto take at St. the of a ing 6, for purpose place nominating Louis July candidate for president. The Morris County National Bank of has been authorized to business with $35,000 J. Naples, begin Tex., capital. H. Matthews is president, D. A. Cook, cashier. Ground will be broken in May for a theatre on the site of the Ferris Wheel Park, Chicago, to cost $150,000. It will be known as LaVeview Theatre and will seat 1495 people. James Colgate, a member of the New York Stock Exchange, has taken out insurance policy for $1,500,000. This said to be the an is largest human single life. risk ever accepted on a The Sully collapse is still engaging attention in the speculative circles. No settlement has been made, but matters are drawing down to a focus that will bring about an adjustment soon. The Seattle Trade Register says that orders have been placed with local dealers in the last few days for cases of Alaska 225,000 salmon the for shipment to Japan for us by army. apThe Railroad Commission plant has at Caproved the interlocking north of Dalias, the of the Houston crossing ruth, protecting and Texas TexCentral and Missouri, Kansas and as Railroads. Viceroy Alexieff arrived at Port Arthur Thursday and was received by Vice Admiral Makaroff and other officials. He inspected the ships and went on board the torpedo boat destroyer Silni, which distinguished herself in the latest attack by the Jap anese. Private advices received from Washthat the President has deto establish a termined ington state protectorate which over the island of San Domingo, will be such in effect, if not in name. The Union Trust Company of Boston has closed doors. The nominal assets are about $1,000,000, with liabilities of an equal sum. The Federal Trust Company of Cleunderstood has assigned. It is will turn over about that veland, it Its $1,000,000 total deposits to the assignce. as;sets will be about $3,000,000. The Federal Trust Company has a capital :stock of $1,500,000. Its surplus fund is $50,000 and it has about $140,000 undivided profits. According to the last and report had $2,288,362 in loans discounts, $45,300 in real estate loans and owned $729,000 bonds and mortgages. Its last statement showed inof of dividual deposits $1,593,328. said to One have its prominent officials is :suddenly disappeared. The world's automobile records have at Nice. M. ing car, been a broken 100-horse power Rigolly, for the driv- inrace a mile, in 53 In :standing ternational start, cup covered 3-5 seconds. for the kilometre (3280 feet) race the Rothschild cup, with a flying start, Eigolly covered the distance in 25 3-4 seconds. Boll weevil was discvoered at MontLa., near gomery, Alexandria. Orleans The by pest was brought to New a country editcr. A native of Texas examined it and pronounced it the genuine weevil. Dispatches say thta Russia has bought the Fuerst Bismarck, and that the price paid was $800,000. The Krune Mill and Elevator Comof Denton has pany amended stock its char- from ter by increasing its capital $20,000 to $40,000. The Frisco mint has undoubtedly all records for broken gold coinage in civisince the use of money Jegan Nization, the amount coined March reaching $33,113,500, an average of more than $1,000,000 a aay. The New York Automobile Club has arranged to make many tours from

12. October 7, 1904 The Herald and News Newberry, SC
Article from The Herald and News, October 7, 1904

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SENERAL NEWS NOTES. items of Mor or Less Interest Condensed Throughout the State. The Federation of Labor has complained this week to the Interstate Commerce commission at Washington, charging that the railroad companies will not allow them the reduced rates allowed to other organizations. Rear Admiral Frederick Rodgers retired on Monday. He was succeeded in the command of the New York navy yard by Rear Admiral Coghlan. In his annual report submitted at Washington on Tuesday Surgeon General O'Reilly says the general health of the army has improved during the past year. A prarie fire which for several days has swept the Rosebud reservation and portions of Tripp and Gregory counties, S. D., was quenched on Tuesday morning by a heavy rain. The loss has been enormous. The Trenton, N. J.. cork life preserver manufacturers indicted for conspiracy against the government inspection laws pleaded not guilty and were releasen on bail this week. Charles F. Kelly, former speaker of the St. Louis house of delegates, has confessed his part in the bribery combine and told of its methods and results. By the will of Miss Maria Terry, who died at Venice a month ago, the Hartford, Ct., hospital will receive approximately $500,000. Two men were killed in a terrific explosion in the Corning mill of the DuPont-De Nemours company's plant, near Peckville, Pa., on Monday. As the result of a prizeiight in North Bergen, N. Y., in which a man was killed, a woman has lost her reason. Rockwood Hoar, son of the late Massachusetts senator has been nominated for congress from the Third Massachusetts district. A record run was made by a train in the new New York subway on a special trip from the City Hall to Harlem on Tuesday. Fire destroyed the rug factory of the Fries-Breslin company, in Camden, N. J., on Monday, entailing a loss of $400,000. The assignee of the Federal Trust company of Cleveland will pay the depositors of that institution in full. Mrs. Rosa Depietro shot and killed Michael Rago in New York because he annoyed her The convention of the International Engineering congress was begun in St. Louis this week. Mrs. Emma Freyer committed suicide in the Alleghany river at Pittsburg on Wednesday. The International Tuberculosis congress began its sessions in St. Louis this week. New York day was celebrated at the World's Fair at the beginnig of the week. Lieutenant General Kleigels, governor general of Kieff, Russia, has been granted leave of absence, and there is strong reason to believe that this is preliminary to his supersession, as he belongs distinctly to the Von Plehve regime. Mrs. Levi Z. Leiter and Miss Nannie Leiter, of Chicago. mother and sister of Lady Curzon, arrived in England and are now at the bedside of Lary Curzon, whose condition has improved. A Somali Mullah is: reported to have attacked and robbed the Ogadian tribe. killing 600 tribesmen and capturing many camels and sheep. The Cuban senate has adopted a bill appropriating $800,000 for the purpose of assisting the immigration