1571. Hamden Bank & Trust Company (Hamden, CT)

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust company
Start Date: December 17, 1931
Location: Hamden, Connecticut (41.396, -72.897)

Metadata

Model: gpt-5-mini
Short Digest: 6064e7fc

Response Measures

None

Description

The Hamden Bank & Trust Company was closed by a restraining order of the Connecticut State Banking Commissioner on Dec 17, 1931 to protect depositors (no run reported). A temporary receiver was sought Dec 18 and Mechanics Bank was later named receiver (Jan 26, 1932). Cause: state action prompted by frozen assets, inability to promptly liquidate loans and securities depreciation and heavy withdrawals.

Events (3)

1. December 17, 1931 Suspension

Cause: Government Action
Cause Details: Restraining order by State banking commissioner after continued withdrawals, frozen assets, inability to liquidate certain loans and shrinkage in market value of securities; heavy pre-Christmas withdrawals contributed.
Newspaper Excerpt: The Hamden Bank and Trust company was closed today on restraining order issued by the State banking commissioner.
Source: newspapers

2. December 18, 1931 Other

Newspaper Excerpt: New Haven Dec. application the attorney general's office... Mechanics bank of this city today was named temporary receiver the Hamden Bank Trust pany, which was closed yesterday.
Source: newspapers

3. January 26, 1932 Receivership

Newspaper Excerpt: Judge Simpson also has confirmed the appointment of the Mechanics Bank as receiver.
Source: newspapers

Newspaper Articles (13)

1. December 17, 1931 Hickory Daily Record Hickory, NC

Article from Hickory Daily Record, December 17, 1931

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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.

2. December 17, 1931 Transcript-Telegram Holyoke, MA

Article from Transcript-Telegram, December 17, 1931

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HOOVER CREDIT (Continued from Page 1) 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 "The bank in East Buston and South Boston, where the runs are being made, are two of the strongest banks in the state." said State Bank Commissioner Artitur Guy. "They are both in excellent shape and they can't possibly be tired out by a run.' Deposits tied up by bank closings surpased the sixty million dollar mark yesterday afternoon when the Lowell Trust Co. of Lowell, with $3,961,000 on deposit, closed. This was the 10th Massa. chusette bank to close within hours, and the 15th New England bank to close since October After the bank commissioner took charge of the Lowell Trust Co. 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 able to withdraw not more than $100 each. HAMDEN, Conn., Dec. 17 The Hamden Bank and Trust company was closed today on restraining order issued by the State banking commissioner. The action was understood to have been taken to protect depositors. Bank officials promised have asked the Comptroller of the Currency to take possession of the institution.' 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 BOSTON, Dec. 17-With deexamining the bank's books today. posits aggregating $61,701,238 tied said the State intervened after conup by the closing of 10 national tinued withdrawals by letter had banks and trust companies, efforts were made today to discourage placed the in an

3. December 17, 1931 Omaha World-Herald Omaha, NE

Article from Omaha World-Herald, December 17, 1931

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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.

4. December 17, 1931 The Waterbury Democrat Waterbury, CT

Article from The Waterbury Democrat, December 17, 1931

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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.

5. December 17, 1931 The Asheville Times Asheville, NC

Article from The Asheville Times, December 17, 1931

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tive provisions of the anti-trust law. The committee may re-examine the whole matter of the anti-trust law and its Leaders had predicted prohibition action this session. but Sumners made clear he would not be among those pressing modification. all in the same boat now." are still stressing the economic he said, do not know how far crisis. shore. are. We do not even from know where the shore in that situation to "For people turn aside from trying to save themend have big fight over selves something they cannot settle now does not seem to me as sensible.' today. notice the customary opening time, was posted that the troller of currency had been asked con. to take over to conserve the owing to heavy demands by depositors. The Hamden Bank and Trust pany remained Assets of the bank in the last published in March. were 683.26.

6. December 18, 1931 The Springfield Daily Republican Springfield, MA

Article from The Springfield Daily Republican, December 18, 1931

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HAMDEN (CT.) BANK ALSO CLOSES DOORS 90-Day Clause Invoked in State ton Bank Stockholder Promises Pay in Full Boston, Dec. banks New England closed their doors day as the result of heavy withdraw- The institutions which either did not open for business which closed late the the nental National Boston: the Hamden Bank and Trust company of Hamden, Ct., the Arlington Trust company and the Plymouth County Trust company of Brockton. The financial status the banks at time official statements tinental, capital stock $1,000,000, surplus, ArlingTrust, deposits County, deposits of $3,816,Another Boston bank, the Grove Hall that bank open again meet The after all-day run the advice Bank Arthur Guy. Invoke Clause The banks Lowell the saving department the Trust company Boston the Millbury Savings bank 90-day banks require notice of intent funds. The officials dinarily heavy caused by general order the assets the bank, orderly pay full. the the Bostonbank the troller currency to take possesthe president the bank, Terrell and youngest in would the ordinary on dollar would be paid depositors. We

7. December 18, 1931 The Springfield Daily Republican Springfield, MA

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FOUR BANKS CLOSE IN MASSACHUSETTS AND CONNECTICUT Lawrence and Boston, Brockton Institutions Affected by Runs HAMDEN (CT.) BANK ALSO CLOSES DOORS Clause Invoked in State Bank Stockholder ton Promises Pay in Full Boston. Dec. banks in New England closed their doors tothe result of heavy withdrawday als. The institutions which either did not open for business which closed the day the nental National bank of Boston: the Hamden Bank and Trust of Hamden, company and County Trust financial status the banks at The the time their last official statements capital tinental, stock surplus, assets ArlingTrust deposits County, deposits of $3,816,Boston the Grove Another Hall Savings closed the bank would again meet action was taken after all-day and upon Arthur Guy. Bank Invoke Clause bank at Lowell The the department Trust company Boston the Millbury Savings bank the Millbury banks 90-day clause notice of intent require funds. The officials withdrawals caused dinarily heavy uneasiness and order general public conserve the assets of the bank. which. in course orderly liquidation, should pay all full, the Bostonbank the troller currency to take possesthe The president the bank, Terrell M. Ragan, 37 years old and reported the youngest president in said, would expected that through the ordinary cents on dollar would be paid depositors. We (Continued on Second Page)

8. December 18, 1931 The Waterbury Democrat Waterbury, CT

Article from The Waterbury Democrat, December 18, 1931

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FROZEN ASSETS CLOSES BANK Hartford, Conn, Dec 18-(U. P.)-The state banking department issued a restraining order to-day closing the Danielson Bank and Trust Company at Danielson for the protection of depositors. State Banking Commissioner George J. Bassett said the same situation which caused closing of the Hamden Bank and Trust yesterday - frozen assets prompted his action at Danielson. The Danielson bank is capitalIsed for $100,000 and has total assets of $3,183,862. the commissioner said. Surplus and undivided profits are $183,000. Heavy pre-Christmas withdrawals of savings and Inability of bank officials to liquify assets with sufficient promptness necessitated suspension. Commissioner Bassett added a statement that Connecticut banks are generally in a strong position due to the statutory requiremente regarding investments. They are managed by men of high calibre, he said.

9. December 18, 1931 The Journal Meriden, CT

Article from The Journal, December 18, 1931

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TEMPORARY RECEIVER New Haven Dec. application the attorney general's office. representing State Bank Com missioner George Bassett, Mechanics bank of this city today was named temporary receiver the Hamden Bank Trust pany, which was closed yesterday. and Our 1932 CHRISTMAS CLUB, Meriden Savings Bank, East Main

10. December 18, 1931 Omaha World-Herald Omaha, NE

Article from Omaha World-Herald, December 18, 1931

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Bank Suspensions. Boston. "he Bos-Continental National bank with main offices on Devonshire street, downtown Boston, and four branches, remained closed at today. the time was posted comptroller of currency had asked to take it over to conserve assets, owing to heavy demands by depositors. the time of the consolidation the Boston National bank with Continental National bank about year ago the combined posits the merged institutions given as approximately $9. 500,000 and the combined resources were set at $11,000,000. Hamden, Conn. Hamden, Conn. Dec. 17 The Hamden Bank and Trust pany closed today Assets in last published statement were 097 Lowell, Mass. Business was suspended Lowell Trust company which cently reported savings and mercial deposits of $3,384,428 was the second Lowell bank to close within two days. the Middlesex National bank with deposits of $4,000,000 having tions yesterday. Burlington, N. Burlington, 17 The First National Bank of Burlington, with assets at the time last statement of approximate 150,000. closed order Barnett national bank examiner. R. W. Malone, was in active charge ed the tion action was due shrinkage in the value of bonds held. Calais, Calais, Me International Trust and Banking company here closed Wednesday It was announced the action necessar because of heavy drawals by Canadian depositors. Raleigh, N. rectors the Commercial tional bank, largest bank in the capital city, night voted close the bank holders. pending meeting the The September 29 ment of the bank listed deposits had a capital stock of $600,000. 000. Board of Trade Stocks Chicago, Minneapolis Bank Stocks Minneapolis, Dec. 17 East

11. December 19, 1931 La Gaceta Tampa, Ybor City, FL

Article from La Gaceta, December 19, 1931

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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.

12. December 24, 1931 The Journal Meriden, CT

Article from The Journal, December 24, 1931

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Plea For Public To Hold Faith In Banks And Bankers Made By George J. Bassett State Commissioner in Asks For Statement Cooperation PUBLIC BLAMES Heavy Withdrawals of Cash, Unnecessarily, Causes Trouble the faith banks and bankers was voiced today George Bassett. state banking in asking for coperation in averting more serious conditions "The banks are doing everything humanly possible, Bassett said, "and the state of Con necticut through banking partment in close touch with the now time for the public Bassett declared the public large extent for bank closings because many depositors failed realize that keep all their resources in cash. Mr. Bassett's Statement His statement follows: closing the West Haven Bank Trust company by the banking commissioner the quest the directors of the bank would probably have been unnecessary had been for heavy drawals that were being made result the closing yesterday morning of the Broadway Bank and Trust company "The West Haven Bank and Trust company had been in very satisfactory position which would have enabled meet any with drawals even greatly in excess of ordinary requirements. "When the Hamden Bank and Trust company failed open there very heavy West Haven. but the bank had plenty cash failure of the Broadway Bank and Trust however, has caused great deal unrest among and the from the West Haven and Trust became that the directors realized that they would be obliged order meet the situation they had on the market at prices far below ordinary values. "They realized that they would not be treating all their positors equitably allowed withdraw their money while the more loyal depositors left their funds the bank and with these conditions mind there seemed course left for them only one follow. Public Responsible have reached very serilous condition affairs for which the public to large extent responsible. Many people have parently failed the their deposits in the form of cash in their vaults. Deposits made with banks are vested high grade loans and first or in loans our business houses personal securities. To banks at this time loans that have made on real estate or which

13. January 26, 1932 Hartford Courant Hartford, CT

Article from Hartford Courant, January 26, 1932

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Army Orders Special orders issued Saturday at Headquarters 543, Coast Artillery, assign Captain David W. Sandberg of 22 Colonial Street to command the service battery of the same regiment. The following men of the Enlisted Reserves of Coast Artillery 543 have been Sergeant W. M. Nichols, 442 Hillside Avenue, to First Sergeant, Battery Sergeant George Nafis 392 New Britain Avenue. to Staff Sergeant (color) Headquarters Battery 543. In Court 114th Time. New Haven, Jan. (AP.) Charged with drunkenness, John Ryan, 64. of Waterbury, made his 114th appearance in City Court today. He was one of 12 whom Judge Philip Troup warned be given a six months sentence for another appearance. All were given suspended sentences. Hamden Bank Appraisers. New Haven. Jan. thur E. Woodruff, director of the New Haven Bank. and Henry Musch. Jr., real estate dealer. have been named appraisers for the closed Hamden Bank & Trust Company, by Judge Earnest C. Simpson. Judge Simpson also has confirmed the appointment of the Mechanics Bank as receiver.