1527. Commercial Bank & Trust Company (Bridgeport, CT)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
August 1, 1933*
Location
Bridgeport, Connecticut (41.167, -73.205)

Metadata

Model
gpt-5-mini
Short Digest
98ec0c67

Response Measures

None

Description

The articles consistently describe the Commercial Bank & Trust Company as closed/suspended by the state banking commissioner in August 1933, followed by appointment of receivers and liquidation proceedings. There is no description of a depositor run triggering the suspension in these items; events focus on official closure, receivership, and liquidation/fee disputes.

Events (3)
1. August 1, 1933* Suspension
Cause
Government Action
Cause Details
Closed/suspended by order of the state bank commissioner in August 1933 (official regulatory action).
Newspaper Excerpt
the bank, closed last August on order of the state bank commissioner
Source
newspapers
2. September 13, 1933 Receivership
Newspaper Excerpt
Attorney Samuel A. Mellitz, Bridgeport, today was appointed receiver for the West Side Bank and Trust Company, Bridgeport... The other two, the Commercial Bank and Trust and American Bank and Trust, will be taken up during the afternoon session. ... Mellitz's bond was set at $50,000.
Source
newspapers
3. December 28, 1933 Other
Newspaper Excerpt
An allowance of $7,000 for the work done by Attorney George Foster as receiver for the closed American Bank and Trust Company and Commercial Bank and Trust Company, was made today by Superior Court Judge Ernest A. Inglis ... the banks were suspended and the receiver is liquidating affairs.
Source
newspapers

Newspaper Articles (14)
1. September 13, 1933 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, September 13, 1933

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Receivers Named for Three Banks (Continued From Page 1) Hartford, Conn, Sept 13-(UP) -Attorney Samuel A. Mellitz, Bridgeport, today was appointed receiver for the West Side Bank and Trust Company, Bridgeport, by Superior Court Judge Newell Jen. nings. The state banking department and attorney general's office had urged the naming of the Bridgeport City Trust Company in that capacity. The appointment was made at a hearing on proposed receivership for three Bridgeport banks which failed two weeks ago. The other two, the Commercial Bank and Trust and American Bank and Trust, will be taken up during the afternoon session. The naming of Mellitz was urged by Attorney Joseph A. Shapiro, representing 75 per cent of the depositors who, he said, were of Hungarian extraction. Shapiro outlined the work of reorganization as planned by a depositors committee and two other groups and stated that Mellitz had the endorsement and confidence of all parties concerned. William Riddon, representing the minority depositors, and William P. Kirk, president of the bank, also spoke in behalf of Mellitz. Assistant Attorney General Raymond A. Johnson, who proposed, the bank as receiver, declared he was not opposed to Mellitz but believed a bank or officer of a bank should be in charge of the closed bank's affairs. Judge Jennings stated that while he had permitted two delays in his appointment, he now had a clearer picture of the situation and inasmuch as this was not an ordinary case and that Mellitz had the confidence of the depositors, he would so order his appointment. Among those attending to-day's hearing were Albert W. Tremaine, president of the other two banks, and Albert J. Endean, treasurer of the Commercial bank, and Louis Randall, treasurer of the American bank. Mellitz's bond was set at $50,000.

2. September 13, 1933 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, September 13, 1933

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ALCORN QUITS BRIDGEPORT BANK HEARING State's Attorney Retires Because as Prosecutor He Could Not Appear for the Banks Hartford, Conn, Sept 18-(UP) -Hearing on the request for a receiver for the failed Bridgeport banks owned by Albert W. Tremain-the Commercial Bank and Trust and the American Bank and Trust -scheduled before Judge Newell Jennings, in superior court, was delayed this forenoon while attorneys and bank officials conferred. Hugh M. Alcorn, state's attorney of Hartford county, who had been retained as chief counsel for the banks, withdrew from the case to-day, and was replaced by Benedict M. Holden, Hartford attorney. Alcorn's withdrawal was determined, he said, because his position as a prosecutor would not permit him to represent the banks while they were under investigation by the state banking department. Raymond L. Baldwin, republican speaker of the state house of representatives, represented depositors of both banks. The closed banks were expected to submit to Judge Jennings a plan for reorganization. It was understood. the American and the Commercial had raised around $200,000 by stock subscriptions, the money to be used in the reorganization. The banks have been in the hands of the state bank examiners since they were closed more than a month ago.

3. September 13, 1933 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, September 13, 1933

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Banker and an Attorney Named for Two of the Three Banks That Were Closed-Another Attorney Named for Third Despite Appeal of State Banking Dept Hartford, Conn, Sept 13-(UP) -A banker and an attorney were named co-receivers of the closed Commercial Bank and Trust and the American Bank and Trust, of Bridgeport, this afternoon. Judge Newell Jennings, of superior court, named George Foster. an attorney, and Willis Lyon, a banker, to handle the affairs of the banks, both of which formerly operated under the direction of Albert W. Tremain. Judge Jennings said the job would be too much for one man to handle. Lyon and Foster will post bonds of $50,000. (Continued on Page 12.)

4. September 28, 1933 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, September 28, 1933

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CO-RECEIVER FOR BANK DENIED Bridgeport, Conn, Sept 28(UP)-Appointment of a co-receiver for the closed American Bank and Trust Company and the Commercial Bank and Trust Company was denied today by Judge Frederick M. Peasley. George Foster and Willis Lyons previously had been named coreceivers by Judge Newell Jennings. but Lyons had declined to serve. Huss Foster will administer the affairs of the two banks, which are jointly owned. "A divided responsibility probably would have undesirable results," Judge Peasley said

5. December 12, 1933 Hartford Courant Hartford, CT
Article from Hartford Courant, December 12, 1933

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Bank Receiver Fee Called 'Outrageous' Bridgeport, Dec. 11.-(AP.)- The payment "outrageous fee of $20,000 to Attorney George N. Fcster. receiver for the American Bank and Trust Company and the Commercial Bank & Trust Company, is "fraught disaster to many classes of people, James Leon, chairman of the depositors committee of American Bank and Trust Company, declared today as he continued his attack on the payment of the As Leon and representatives of other groups prepared to present against the fee allowed the opportunity in the Superior Court, Attorney Foster declined comment today Attorney Foster made his request to Judge Ernest A. Inglis last Friday.

6. December 15, 1933 The Washington Herald Washington, DC
Article from The Washington Herald, December 15, 1933

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Socialist Hits Bank Receiver's Conn., Dec. McLevy. BridgeSocialist mayor, will appear Superior Court December protest against the payment feet to Attorney George acting receiver the Commercial and American Bank Trust Company, banks which their doors three months closed Foster son of Judge ago. Foster of Superior Court.

7. December 15, 1933 Hartford Courant Hartford, CT
Article from Hartford Courant, December 15, 1933

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McLevy Will Protest Bank Receiver's Fee Bridgeport Dec. 14. (AP.) Mayor Jasper McLevy said today he would appear at public hearing before Judge Ernest Inglis in Superior Court week from tomorrow to protest the $20,000 fee asked by Attorney George N Foster as receiver for the closed Commercial and American banks in this city The hearing has been made open to the public, the mayor pointed out in announcing that he would appear since he feels the $20,000

8. December 18, 1933 Hartford Courant Hartford, CT
Article from Hartford Courant, December 18, 1933

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Second Hearing Called On Bank Receiver's Fee Bridgeport, Dec. (Special So many have been made against the application of Attorney George N. Foster for $20,000 fee for his services as receiver for the American Bank and Trust Company and the Commercial Bank and Trust that Judge Ernest A. Inglis of the Superior Court has announced that another hearing on the application will be held Friday Mayor Jasper McLevy. who issued statement condemning the size of the fee asked by the receiver. has announced he will appear at the hearing.

9. December 22, 1933 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, December 22, 1933

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BANK RECEIVER HAVING BATTLE Bridgeport Lawyer Asks Sum of $20,000 and There Is Protest Bridgeport, Conn, Dec 22-(UP) -With more than, 500 vitally interested depositors jamming the courtroom, Judge Ernest A. Inglis to-day took up the protested payment to George N. Foster of $20,000 as his fee for acting as receiver of the closed American Bank and Trust company and the Commercial Bank and Trust company. More than a dozen attorneys, representing depositors, were present to question Foster about his fee. He asks $12,000 for his work thus far in liquidating the affairs of the American bank. and $8,000 for his work with the Commercial. He told the court he has devoted ten and a half hours a day to the affairs of the bank.s Many questions asked were ruled out of order by Judge Inglis, as the lawyers demanded that Foster account for each minute of his day's work on bank business. The crowd was orderly and but when quiet, Jasper McLevy, walked Bridgeport's socialist mayor in and took a seat just before court opened a great cheer went up. McLevy was authorized by the city council to attend the trial and protest the size of the fee demanded by Foster. He took no part in the procedure, however, but sat in a front seat, listening intently as the hearing progresed. It was expected he would address the court after the attorneys had finished questioning Foster. Before he proceeded with the case Judge Inglis read a statement answering a charge, carried in a Bridgeport paper, to the effect that members of the legal profession were reluctant to oppose the fee asked by Foster because his father, Carl Foster, is a superior court Judge Inglis said the man who wrote the charge to the newspaper "doesn't know Judge Foster," and denied any attorney need have any hesitancy in figuring in the case because of the relationship between the receiver and the inrist.

10. December 28, 1933 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, December 28, 1933

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BANK RECEIVER GRANTED $7,000 Attorney George Foster of Bridgeport Has Asked Sum of $20,000 / Bridgeport, Conn, December 28 - (UP) - An allowance of $7,000 for the work done by Attorney George Foster as receiver for the closed American Bank and Trust Company and Commercial Bank and Trust Company, was made today by Superior Court Judge Ernest A. Inglis in denying Foster's claim for $20,000 in fees. Foster's claim was bitterly opposed at a court hearing last week when attorneys for depositors contended the receiver's claim for approximately $150 a day for three months work excessive. "I can allow the receiver nothing at this time for his efficiency and responsibility," Judge Inglis' decision said. "These questions will be decided at the termination: of the receivership." The court allowed Fóster about $50 a day for actual office work. exclusive of court appearances. "This court is here to give justice, not charity," the decision read, in upholding the contention of attorneys for depositors that many of their clients were distressed because their entire savings were tied up in the suspended banks.

11. January 23, 1934 Record-Journal Meriden, CT
Article from Record-Journal, January 23, 1934

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Appeal Against Fee Allowed Bank Receiver Bridgeport, Jan. 22-(AP) An appeal against the decision of Judge Ernest A. Inglis in the superior court whereby he allowed $4,100 attorney's fee to George N. Foster as receiver for the closed American Bank and Trust company, was formally filed in the superior court this afternoon by William A. Redden. of this city. Through an extension of time granted two weeks ago by Judge Inglish Redden had until today to answer the papers in the appeal. The latter is taken in behalf of James J. Leon and Francis Dunigan as depositors of the closed bank Several assignment of errors are made by Redden in the document. The questions of law which he desires to have the supreme court of errors rule on, all arise out of the hearing held before Judge Inglis on Foster's request for $20,000 fee the bank and the closed Commercial Bank and Trust company and Judge Inglis' decision. The questions asked are whethor or not Judge Inglis erred in reaching the following conclusions in his decision That Foster should be paid substantially and practically in full for all of the time spent and labor done by him as receiver for each of the banks from September 15 to November 29, 1933. That in the work he performed six hours would constitute working day; that the sum of $50 for each day to such work: that the sum of $4,100 was reasonable sum to allow Foster :that such sum could be awarded by excluding efficiency and responsibility at the element of the majority of the depositors of the guard will be directed by en from the polls and participate inthe closed bank being poor people arbitration board of seven men, stead in the April general election, was not an element to be taken in- representing all interests, who will "when issues may be voted upon." to by the court. use the guard to handle any emer- Walter Smith is the Socialist nomA further assignment of error gency at the polis. linee for the April election. that the court ruled Wrongfully in Victory in tomorrow's Democradeclaring that it was not necessary tic primary is tantamount to elec- Rome's three-decker motor bur for- Foster to be sworn as with tion, but the New Orieans Social- carries eighty-eight passengers and ness when he was examined by ist party today made strident ap- has smoking compartment various counsel for individuals and peal for the voters to remain away special accommodations for dogs. Other assignments having to do with the conduct of the hearing by the court are as follows: That the court erred in ruling out all questions having to do with Foster's earnings before he took the receivership; his us. ual hourly charge for work and the amount of time that he spent each day on his private affaire.

12. January 25, 1934 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, January 25, 1934

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BANK DECISION IS IMPORTANT R. F. C. Wanted to Claim Funds But Judge Has Stopped It Bridgeport, Conn., Jan. 25.(UP) -A superior court order today instructed George N. Foster, receiver for the closed Commercial Bank & Trust Co., to withhold any and all funds now in his custody which might be claimed by the Reconstruction Finance Corporation to apply against loans aggregating $700,000. The order, obtained by a depositors' committee and signed by Judge John Richards Booth late yesterday, summoned the RFC, the attorney general and others to a hearing on the restraining order here February 6. The bank, closed last August on order of the state bank commissioner, obtained two RFC loans, one for $500,000 in March: 1932, and the other for $200,000 the following June. Mortgage notes, then valued at $1,208,380 were put up as security. The committee contended the collateral had been held in trust by the bank and "could not be used to pay any other obligation or liability." Appointment of the receiver, the committee's, petition stated, "immediately change the character of the transaction, placing the RFC in the position of a creditor having in its hands assets charged with lien." The status of the RFC, the petition added, is that of a creditor "and as such creditor is not entitled to preference." The petition also asked return of collateral now held by the RFC to the receiver.

13. August 22, 1934 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, August 22, 1934

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JUDGE ELLS WAS UPHELD IN VERY IMPORTANT CASE The RFC Has First Claim on the Pledged Assests of Closed Bank Bridgeport, Conn., Aug. 22(UP)-The Connecticut supreme court has ruled the reconstruction Finance corporation has the first claim on the pledged assets of a closed bank. The decision, said to be of far - reaching importance, was handed down in settling disputed questions arising over the liquidation of the commercial Bank and Trust Company which, with two other institutions. were closed a year ago by the state banking commissioner. The RFC had loaned the bank $1,226,382 which was pledged by directors before the bank was suspended. The receiver, Attorney George N. Foster, preparing a liquidation plan, propounded two questions: Whether the bank had the power to pledge the segrated assets of the savings department, and whether the RFC thus obtained superior rights over all depositors. The decision of Chief Justice William L. Maltbie upheld the ruling of Superior Court Judge Arthur F. Ells in disposing of the questions in the lowers court. Judge Ells decided: 1. Said bank has the power to pledge the segregated assets of its savings department in the manner and for purposes above set forth, and Reconstruction Finance corporation obtained rights in said pledged assets superior to the rights of all depositors in said savings department. 2. The loan was made in good faith in an agency of the federal government for the sole benefit of all depositors of the savings department and to say now that the RFC must give back its security and cancel the debt is not an especially appealing proposition to 8 court of equity. As result of the higher court ruling, bank and RFC officials were to confer upon the liquidation plan which will be submitted to the superior court for approval. The decision effects also the American Bank & Trust Co., which suspended at the same time the Commercial was closed.

14. November 1, 1934 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, November 1, 1934

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Governor Wilbur L. Cross and Congressman Francis office T. Maloney, running for on the democratic ticket, continue to lead the straw vote being taken in Hartford by the Courant. At the same time, State's Attorney Hugh M. Alcorn and U. S. Senator F. C. Walcott, republican candidates, continue to hold their lead in the Bridgeport poll. Therefore, leaders of both parties are reported continuing their efforts to change the pictures a little bit before election day arrives. Last night was Hallowe'en but the leaders of both major parties did not tafle the time off for celebrating. Neither did they go about to the rallies in disguises or masked. In fact, the speak(a's of both parties came out boldly in attacks on one another. In Bridgenort the candidates of four political parties have met and adopted a resolution calling for an inquiry into the the cause of the closing of two Bridgeport banks, the American Bank and Trust company and the Commercial Bank and Trust company. Democratic, republican, socialist and independent citizen candidates for the legislature have agreed to introduce a bill in the next session calling for the inquiry. The town clerk of Stratford has failed to recognize the independent citizens party. Albert Levitt of Redding threatens to bring criminal action against Town Clerk W. H. Wilcoxson if the party's candidates are not placed on the ballot. George J. Bassett of New Haven, president of the Connecticut Savings bank and former state banking commissioner, has been named a member of the committee to assist in administering the code of fair competition for the mutual savings banks. Commissioner Bassett was named banking commissioner by Governor Cross. He resigned later, however, due to press of his private business interests. Up in Hartford the name of John Petrizzo was taken off the voting list after receipt of a report from the superior court regarding to convictions during the year. It was found later than an error had been made in regard to the charge on which he was convicted. His name, therefore, has been restored. It was first listed that he had been convicted of commiting a felony. Investigation showed that the conviction was on a charge of breach of the peace, an offense that does not involve los sof the franchise. Representative Anthony J. Ricir of Bristol, candidate for relection on the g. O. p. ticket, feels that the state liquor control act is "Governor Cross' own law" and that it has made "gas stations more sacred than churches" inasmuch as a tayern can be opened up 300 feet nearer to a church than to a gasoline station. Hartford members of the democratic state central committee and the town committee and precinct and ward officials of the city will meet tonight to discuss final plans for getting out the vote on election day. Horace B. Clark of Hartford is slated to be appointed to the fire board. Mr Clark is a veteran of many years' service on the board but was displaced three years ago by Simon Kramer. Mr Clark is a republican and came to be regarded as a fixture on the fire board until his ter mexpired in 1931. The then Mayor William J. Rankin, a democrat, did not reappoint him. Now Hartford's republican mayor is ready to place him back on the board. Democratic Town Chairman E. C. Perry's term on the board expires next month, too. The New Haven County Polish Political organization, meeting in Seymour, went on record as endorsing State's Attorney Hugh M. Alcorn and entire republican ticket. In Ansonia, where Mayor Peter Hart, republican. is running for relection. the democratic-con trolled board of aldermen is under fire. Mayor Hart claims that the democratic aldermen were antagonistic and failed to cooperate with his office. Deputy Sheriff Chris Olsen of Oxford. well known here, who has been doing much campaign work about the caned county iff James serious for Geddes. his injury boss. narrowly High returning Sher- esfrom a republican rally the other night. On the SeymourOxford road a huge buck deer