1.
December 15, 1930
New Britain Herald
New Britain, CT
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Identity of Person Reported to Have Spread Rumors Causing Run Said to Be KnownLoomis Repeats No One Will Lose. Six Institutions to Cash Commercial Savings Accounts Up to 50 Per Cent If Need Is Shown-Analysis of Situation Being Made by State. Suspension of business by the Commercial Trust Co. on West Main street Saturday afternoon was accepted calmly in financial circles over the week-end and there was no sign of disturbance although many merchants and others were inconvenienced by their inability to issue checks against the bank or cash them. Announcement by State Bank Commissioner Lester E. Shippee that the bank was solvent and by President John C. Loomis of the bank that no depositor would lose money, both of which statements were published in an extra edition of the Herald Saturday, had a steadying influence on the populace. Apprehension was allayed by the issuance of these statements and by the allnouncement made in the churches yesterday, at the instance of Mayor Quigley, that depositors would be paid 100 cents on the dollar. Other Banks Aid Depositors Officials of the other New Britain banks arranged over the week-end to relieve the situation to a considerable extent by loaning to Commercial Trust Co. savings depositors up to 50 per cent of their accounts, at the prevailing rate of interest, but only in such instances as were proven to constitute actual need of ready cash. I The announcement to this effect f was contained in the following state. ment: "The banks whose names appear below are working out a plan to I take care of the needs of those perI sons having deposits in the savings department of the Commercial Trust company by loans up to 50 per cent : of such deposits secured by the book t representing the same if properly authenticated New Britain National Bank, New Britain Trust company. Savings Bank of New Britain, : Burritt Mutual Savings Bank, City E National bank and People's Savings bank.' t Reorganization Under Way I That there will be a reorganiza: tion of the closed bank as soon as possible was stated today by Presi) dent Loomis. Whether it can be effected within a few weeks was not known. The bank was open today (Continued on Page Two)
2.
December 15, 1930
New Britain Herald
New Britain, CT
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NO NEED FOR ALARM Measures taken to safeguard the depositors in the Commercial Trust Co. and the bank itself Saturday aft. ernoon naturally created intense public interest and a little excitement before the reasons for the step were thoroughly understood but now that the smoke has died down it 18 quite generally realized that the state banking commissioner stepped on at an appropriate moment for the benefit of the public. The step was logical under the circumstances and was desired by the banking of ficials in order to conserve the assets that were strained under the blows of an undue ratio of withdrawals. It 13 a problem in elementary arithmetic that no financial institution can stand 100 heavy withdrawals which drain its ready cash. No bank has all its assets in liquid form, prepared 10 hand over huge sums of money at almost an instant's notice. Banks make their profit by investing the money entrusted to them. and this money in order to earn profits must be set at work Only a small percentage of funds are kept on hand for the daily needs of business. We merely mention these elementary facts for the benefit of such readers whose minds may not be clear on the subject, even though they be a small minority. Following an episode such as we have had in the city it is essential that the elementary details of bank. ing should be understood by every. body; and the more thoroughly they are understood the less likelihood there is of foolish actions by any minority of the public. actions which might cause unnecessary inconvenience to others Suspension of a bank aiter all. is merely a suspension It is not a failure Suspensions under most circunstances are necessary as steps to prevent a part of the public from weakening a financial institution A suspension in time saves everybody's money and usually turns out as merely having been an interruption of business The papers have carried stories of bank suspensions in various parts of the country: and in most instances a week later the same papers carried stories-usually under smaller headlines-of the same banks reopening for business This usually results when officials have had an opportunity to straighten out the tangles and put everything in smooth running order once again. During the period when this IS accomplished the public has had an opportunity to size up the situation to better advantage and its good sense usually tells them that earlier fears were groundless and that the situation demands nothing so much as cooperation. It is too bad. of course. that such things happen; and no doubt there are a multitude of amateur doctors of economics who believe they know how to prevent such happenings The fact is, however, that no supermen exist in the banking business any more than they exist elsewhere. and banking remains a sensitive nerve that reacts to surrounding conditions. The public. however, is the arbiter of what happens. Runs create trouble, and it is the public. or a thoughtless part of it, which causes runs. Without these to fear banks under almost any condition would have clear sailing
3.
December 15, 1930
The Journal
Meriden, CT
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PROSECUTE BORROWING FOR UNEMPLOYED
New Britain Authorities Plan Court Action Reports Say
Illegal to Get Money In Anticipation of Bond
Issue
EXCITEMENT OVER $30,000 NEEDED
Commercial Trust Opened to Collect Loans Due
New Britain. Dec. 15. pension of business by the Commercial Trust company Saturday calmly public over the week-end. Other banks reported withdrawals of posits slightly heavier than normal Saturday night but less than ticipated and there was sign of turbance. The trust company closed the instance Bank Commissioner LesShippee who stated that the institution
John Loomis, president the company, today that readjustment and reorganization had The bank open today acceptance money loans but no posits withpermitted. Reports that president who alleged circulated rumors which resulted in run the bank during the latter the would be could not confirmed. withdrawals in three days approximated creating shortage cash the bank. This brought about the busiAnnouncement made today the New Britain bank, the Britain Trust company. the Savings New Britain and the Burritt Savings that they would pay depositors savings department of the Commercial Trust company per cent their posits where for cash gent. to Appeal For Voluntary Contributions
Any which the had. money finance ticipated issue pear their has dropped developed that such an action The intended provide for city betterment plan which would provide for the result this impediment the original plan the commission relief for those understood that the necessary temporary funds will sought through appeal for voluntary Under rangement. money secured would be inaugurate the less important features the program and thereby some measure for the unusual number now out of work and without means support According to the new idea. relief the near future looms favorably for Meriden's unemployed. the present plans the research commission will be realized. large part their realization depends upon the response certain the philanthropic whom peal contribute out which the program municipal provement least partially The which met yesterday and evening. derstood have tentative mate the cost putting through city improvements $30,000. Part this not entirety. will sought, the group about the wealthier will be expected the contribution in the form of gift.
Studying Finances. The report definitely sets rest any idea the would finance the work by borrowing the which hoped will through the January. Such members the now tent the city itself might be aid the financing presumably through regular financial channels the current financial status the city herein involved. Under the present the public-spirited would doamount toward the fund, and in event the goal not the balance would secured another way, perhaps from the investigation now in progress regard the operation simirelief work New Haven and now underway. The vey intended to provide the local more practical the procedure, and have profit by any mistakes which have croppde up costly fashion the other cities With money secured in the manner mentioned. relief work would off flying further financed by the anticipated bond issue
Install Water Mains. Installation water main extenwill furnish nucleus for work which Mayor Maloney's research commission plans aid Meriden's according mous decision of the research commission its session in the mayor's office last evening. Various department heads who attended evening Oscar Dossin, recreation Michael Kelley. of education: City Perry Prann, the water department, James superintendent the board works. The invited the meeting lists of work that can included the research program of municipal development and
Removal Snow.
Superintendent Toner explained that department practically no work other removal snow could during winter months. One job which he mentioned the was the cleaning Harbor brook. Mr. Toner that several roads very done in on road work unless the matter installing sewer lines, Mr. Toner explained are installed petitions and that present investigation enlarging sewer system under City Engineer report COVthe installing 400 feet mains tributed on the following streets:
Continued on Page Nine.)
4.
December 15, 1930
New Britain Herald
New Britain, CT
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Both Die Bravely
Both firing responsible and Garcia had in to in poor. to the coup
Many A-k Temency of general last Ma particpetitions elemency for mostly government statement set the casualties battle day morning at Ayerbe Pass four here the loyal officers instructed low to avoid merely the rebellion Hopelessly outnumbered the rebels a although many were The federal forces shortly ward took with little resistance and the aimed lishment of republic in Spain. was ended. drawals but the who not as numerous as and no of
No Sign of "Ron" Today that the public not armed hysteria Bankers stated that the usual was transacted be Word the closing of the bank but of rather than the of the to ration of Loomis and that there Loomis Reiterates Charges today past few on and the bank officials of President but be prosecution did not would be any difficulty in proving of individual generally blamed for starting the reported Prosp pending of full of sit carrying accounts in the company busy today other Many persons all their in bank to personal loans to for few days and others who checks during past days hastened to out the complications resulting from the closing of the
City Deposit In Bank
Sheldon said today the Commercial Trust company share of the city's money on deposit as have the other local banks and upon the length of time that the state banking commissioner's order remains operative will depend its effect on the city's financial In the event that the city has occasion to draw on the before it available may be necessary to obtain Mr. Sheldon said. Identify Author of Rumor said today that an analysis of the situation is being made charge of Deputy and when a report compiled, he will decide upon the necessity for an Relative to the widespread report that the run on the bank was precipitated by malicious rumors originating with local man. Commissioner Shippee declined to comThe report persisted. howthat man was known to of the bank and the state banking commissioner and had been to account already, with the possibility that a prosecution will Section 6309 of the general staof applies to the alleged situation. as follows: "Derogatory statements affecting banks Any person who shall wilfully and maliciously make circulate transmit 10 another any false statement. or oral. which is directly or by inference derogatory to the financial or affects the solvency or standing of any bank, savings bank banking institution or company doing business in this state who shall counsel aid or another to transmit or circulate such statement or rumor, fined not more than five hundred dollars or imprisoned not than one year or both." losing Followed Silent Run Loomis today described run which is of the kind known to bankers as 'silent run." Day after day. he said, withdrawals increased. positors were constantly coming in and not only reducing but closing them out entirely Among them were some who seldom made withdrawals exat definite periods when they had particular for their money was soon apparent, he said. that detrimental reports were spreading on Wednesday, Thursday and Friday of last week the run gathered alarming momentum. On Saturday morning the cash on hand was exhausted and help was obtained from Philadelphia and other places. Again the vaults drain and President Loomis decided to end the run by notifying the bank ing the closing notice following early in the afternoon. Ap. proximately $500,000 was withdrawn during the ding to bankers, "silen: run" worse one which develops the latter usually can be stopped as suddents as starts, especially if the cause behind it not well founded. Other Banks Encouraged other New Britain reported this afternoon that the situation was decidedly encouraging as regards the attitude to wards During the noon hour there was only the business transacted and as the day wore on there no hysteria on the part of depositors and borrowers was learned today that James H. Passerini. one of the assistant secretaries of the Commercial Trust Co., was given police protection to
5.
December 16, 1930
New Britain Herald
New Britain, CT
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Examiners Now Going Over Records to Determine Condition of Institution Future Cannot Be Forecast Before Examination County Detective Hickey Said to Be Investigating Report Run Was Caused by Rumors - Loomis Confident of Reopening in Short Time, He Says. The future of the Commercial Trust Co., which is under suspension on orders of State Banking Commissioner Lester E. Shippee, will not be known until the latter part of the week, the commissioner said today, because it will be impossible to complete the analysis which is being made by examiners from his office, any sooner. Every detail of the bank's affairs must be gone into thoroughly in order to determine accurately the condition of the institution and whether there will be a reorganization or a complete liquidation and closing out of the business cannot be foreseen at this time, he said. Few Call on Other Banks That many depositors in the savings department of the bank are content to await developments rather than borrow up to 50 per cent of the amount of their accounts from the six other banks which announced yesterday that a plan is being worked out to this effect, was apparent today when a surprisingly small number of requests for loans was received. Up to noon, one bank in the group reported one call for a loan on the savings department and one from the holder of a commercial account As the offer applied only to those having money in the savings department, the depositor in the commercial account was not accommodated. In another bank one call was reported and arrangements were made to loan the money. Other banks in the group reported similar conditions. The banks which handle commercial accounts are receiving new accounts in large numbers. as might be expected. because business houses and individuales were obliged to change banks due to the suspension of the Commercial Trust Co. Expect to Reopen Soon President John C. Loomis said to day that there was no change in the sntuation and he was confident that bank would be able to reopen in a short time. Payments on loans are being received and the work necessitated by the state banking commissioner's analysis is keeping the entire force of the bank busy. Treasurer M. Bassford and other officials did not leave the bank until 4:30 this morning and were back at work (Continued on Page Two)
6.
December 16, 1930
New Britain Herald
New Britain, CT
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BANK'S CONDITION IS BEING ANALYZED (Continued From First Page) again a few hours later. Whether prosecution will be brought by State's Attorney Hugh M. Alcorn as a result of the alleged spreading of derogatory information about the Commercial Trust Co. by a local man could not be learned today. President Loomis would not discuss the matter except to deny that the board of directors had met and decided 10 request a probe by the state's attorney, and at the latter's office in Hartford County Detective Edward J. Hickey would not talk about it. although it is said, he is investigating That the stories in circulation as to the cause of the run OIL the bank have reached the state's attorney is known but what the next move will be could not be foreseen today. The state's attorney refused today to confirm or deny reports that a New Britain broker, whom rumor connects with circulating stories about the bank, would be questioned.
7.
December 17, 1930
New Britain Herald
New Britain, CT
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OFFICIALS QUIETLY REORGANIZE BANK Rumors About Taking Over Commercial Trust Co. Denied That officials of the Commercial Trust Co., closed Saturday by order of State Bank Commisisoner Lester E. Shippee following a run which depleted the cash assets of the bank, are working quietly on a plan for reorganization was intimated by Mr. Shippee today. Contrary to the general opinion, it is said state bank examiners are not going over the books of the local bank. but the officers and employes of the institution are going over accounts and straightening out all records under the supervision of Deputy Bank Commissioner Harold Splain and several assistants. Asked what would happen in case the bank failed to reorganize, Mr. Shippee said that in that case it was probable a receiver would be asked and a complete liquidation would follow. Asked today when he expected to have the bank reopen, President John C. Loomis said it was too soon to tell. Denies Prospective Transfer Rumors that the Hartford Connecticut Trust Company was getting ready to take over the local bank were denied by Mr. Loomis and by one of the directors. Harold Kenyon, treasurer of the Hartford bank, said he had nothing to say on the subject. It is believed that the rumor started from the fact that Charles W. Hawkins, newly elected vice president of the Commercial Trust Co., has been conferring with Nathan Prince, president of the Hartford institution, who, it is said. has been cooperating in an advisory capacity. Foreclosure Not Likely Another rumor that the Metropolitan Life Insurance Co. is preparing to take over the building of the local institution has been denied. The insurance company holds the mortgage on the building, but Vice President Pardon C. Rickey of the Commercial Trust Co., said today the mortgage was not delinquent and he saw no reason why such steps should be taken. Skepticism in the probability of such action was expressed by Ronald Cook. manager of the Hartford branch of the insurance company. "Our company never acts hastily on foreclosures, and since the mortgage is not delinquent I don't believe there is anything to it," he said.
8.
December 18, 1930
New Britain Herald
New Britain, CT
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SHIPPEE AWAITING NOTICE FROM BANK Receivership Possibility Depends On Reorganization Pians The possibility that a receivership may be asked for the Commercial Trust Co., which closed its doors last Saturday, following the culmination of a run on the institution depends entirely upon the crystallization o: plans for reorganization, according 10 State Bank Commissioner Lester E Shippee today. Asked about rumors that the meeting of the directors of the bank held yesterday afternoon had developed into a decision to ask for a receivership, Mr. Shippee said he talked the situation over with the bank officials and that the plans had not yet crystallized into anything definite and that this may nos happen until tomorrow or Saturday. "It depends entirely upon my ability to satisfy myself in'every partic ular that the reorganization plan is not impossible," he said. Asked if it were true that the bank would settle with depositors on the basis of 70 or 75 cents on the dollar, the commissioner replied, "any prognostications would be foolish at this time. While the bank is perfectly solid on the face of things a forced liquidation will depend entirely on conditions." While appearing to be in a more cheerful frame of mind. President John C. Loomis was obviously showing the nervous strain under which he has been laboring. He maintained his policy of making no statements. Asked if there were any developments in the investigation to ascer tain the source of the rumors which brought on the run on the institution, Mr. Shippee said there had been some work on it, but he could not say as how far the investigation had proceeded.
9.
December 23, 1930
New Britain Herald
New Britain, CT
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LIQUIDATION BE STARTED AT BANK
(Continued From First Page) be taken care of The time required to liquidation the be torney event the plans within
Commer tal Depositors May Lose president which the Commercial today issued that "I the in the department of the bank in full. depositors the must expect loss. Mr. Smith's statement "So me about brief necessary have had 1.0 personal to reorganize the bank and of 00 to it was seen inevitable should be appointed those of us who had been in trying to save looked for one should best fill the bill. After considering the bank missioner appointed Mr. Searle His long in banking and in business been mentioned the "Mr. vice president of Landers Frary & Clark At considerable trouble to itself that company gives him leave of absence salary until the receivership ends Naturally he try to realize the largest possible returns for the company of which he is an officer and which is the largest depositor in the bank: but as the law strictly provides that all returns from liquidation of the bank's as sets other than those which are sut aside to protect its savings depart ment depositors shall be shared pro rata among the other depositors it is clear that no advantage can BC crue to the largest depositor which does not with exact proportion. acto the smallest Savings and Commercial Deposits
10.
December 24, 1930
New Britain Herald
New Britain, CT
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Hearing On Permanent Receiver On January 23 a hearing will be held in superior court on the appointment of a permanent receiver and Mr. Searle's confirmation will be made at that time The required procedure under the law is to name a temporary receiver first, and in this the understanding was that Mr. Searle would be permanent receiver when the time arrived for carrying out the formality Two appraisers will be appointed Mr. Searle has already been in conference with Judge B. Gaffney and his son. Attorney Donald F. Gaffney, and he said today that they have been retained by him. Judge Gaffney is completing 26 years as probate judge and is a director of Commercial Trust Co. Attorney Donald Gaffney is assistant state's attorney for Hartford county. The officers of the bank. whose services were dispensed with today are: President, John C. Loomis: vice presidents. Pardon C. Rickey and Charles W. Hawkins: secretarytreasurer. Walter M. Bassford: assistant secretaries. James J. Daley and James H. Passerini: assistant treasurers. Louis S. Thomas and Edwin P. Lanphier Loomis Here Since 1915 Mr. Loomis came to New Britain when the Commercial Trust Co. was organized in 1915 and was the first treasurer. Shortly after the death of James M. Curtin in 1924. Mr. Loomis succeeded to the presidency The bank's first home on Main street next to the New Britain National building and as the clientele departments were added and three years ago the splendid new home was opened on West Main street At the time Bank Commissioner E. Shippee ordere the bank suspended it had depositors, its growth having been regarded as phenomenal.
11.
February 25, 1932
Hartford Courant
Hartford, CT
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Says Closed Bank Should Pay Funds To Soldiers First
Superior Court Will Be Asked Rule in New Britain Case
New Britain Feb Whether osits in the closed Commercial Trust Company bank pensions, off full while dethe upon Searle ask ruling Superior Court point, which bringing the question before the attorney for the claims money on deposit war should on demand by the conJudge B. Gaffney. counsel for the receiver, also believes has priority decision which savings deposits was from attachon the case will affect deposits adjusted compensation, insurance payments, and the like, are many closed bank, Searle Wednesday also ruling the closed bank quired pay the usual state tax on banks.
12.
June 25, 1932
Hartford Courant
Hartford, CT
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Asks Payments Of 10 Per Cent For Depositors
Closed Windsor Locks Bank Receiver Seeks Court Approval
Attorney Frank E. Healy, counsel for William H. Léete, receiver of the Windsor Locks Trust and Safe Deposit Company, asked Judge Arthur F. Ells in the Superior Court Friday to authorize payment of a dividend of 10 per cent to depositors in the savings department and 10 per cent to the depositors in the commercial department of the closed bank, totaling approximately $79,000 and $30,000, respectively. Mr. Healy also asked that $5000 be allowed on account for the services of the reciver and $3000 for counsel. Attorney Donald Gaffney, of counsel for Frederick A. Searle, receiver of the Commercial Trust Company of New Britain, asked for an allowance of $2500 for counsel. William Malone, counsel for the Bristol Bank & Trust Company, receiver for the National Marine Lamp Company, asked to tear down the 50- building of the factory and dispose of the land. The total value of the real estate is about $5000 and the building. because of its age and condition, is not salable. Judge Ells reserved decision on all the requests.
13.
August 27, 1932
The Journal
Meriden, CT
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SUED BANK RECEIVER
Aug. Frederick Searle, receiver for the CommerTrust company New Britain, yesterday filed suit against the society of New Britain and the society's guarantors of second mortgage note for recover cash due, alleging that the past due that neither the society nor its guarantors have The include Dr. O'Connell, wife Mrs. Helen O'Connell, Frank Conlon, Angelo John Curtin Mary Smith administrator estate The of the society on Main construction which note issued and property other defendants are attached.
14.
April 18, 1933
Hartford Courant
Hartford, CT
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Damages Awarded To Searle Against 2 Fire Companies
National Fire to Pay $2500 of Judgment for Bank Receiver
Judgment for Frederick A Searle receiver of the Commercial Trust Company of New Britain to cover damages of $6000 from the National Fire Insurance Company of Hartford and the Union Firemen's Insurance Company of Philadelphia was filed Monday in Superior Court by Judge John Rufus Booth The National Fire is to pay $2500 of the judgment and the Union. $3500. bank receiver held first mortgage of $7000 and a second mortgage of $2253 40 on the property of Yegner Bagdigian of New Britain which damaged by fire December 24 1931 He offered settle on September 1932. for $4350 and indorse over the insurance company drafts to the receiver. to accept them because Maurice Rosenberg Bagdigian's attorney claimed $450 of the money for his fee in negotialing settlement and because the receiver claimed the drafts did not come up to the true value of the
Suit was then brought against the companies the represented by Donald Gaffney Daniel M. Morgan of New Haven appeared for the defendants.
15.
November 29, 1933
The Journal
Meriden, CT
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DECISIONS OF LOWER COURTS ARE REVERSED
Hartford. Nov. 29. (AP) The decisions of lower courts were reversed in two opinions handed down today by the Supreme Court of Er-
The cases were Sylvester J. Blake. et al, vs. the Hartford Board of Appeals, and Martha A. Peck. et als, of Plainville vs. F. A. Searle. receiver of the Commercial Trust company of New Britain. In the Hartford case, Blake and Max Bengs were denied permission by the Board of Appeals to use premises at 115 State street known as the carbarn property. as parking and storage station for automobiles. The board's decision was reversed by Judge Molloy of the Court of Common Pleas and the board then appealed to the Supreme court. The state's highest tribunal found error and ordered the case remanded to the Common Pleas court with direction to dismiss the appeal of Blake and Bengs. Mrs. Peck and her three daughters sought the removal of the Commercial Trust company as executor and trustee of the estate of John J. Kimmell, who died August 4, 1930 The bank was directed in the will "to hold. manage, invest and re-invest" and residuary estate and to par to Mrs. Peck, the widow, cer- tain sums annually. On her death the estate is to be divided equally between the three daughters. The Plainville Probate court denied the petition, but its decision was reversed by Judge Jennings in Superior court. The bank, through its receiver. appealed and the Supreme court reversed the decision of the Superior court and directed decree in favor of the bank's receiver. Removal of the trustee had been sought on the ground It had become incapable of executing the trust, neglected to perform the duties of a trustee and permitted the estate to become wasted.
16.
January 17, 1934
The Waterbury Democrat
Waterbury, CT
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SUPREME COURT DECIDES CASES Hartford, Conn., Jan. 17-(UP)No error was found by the supreme court in the Fairfield county superior court ruling in the cases of Minnie R. Hill, executrix, against Andrew R. Jones, and Frank A. Hotchkiss against Jones, it was announced today. The lower court found for Jones in the first action and for Hotchkiss in the second. Both suits involved Danbury property. Judgment of the Hartford county superior court in allowing Bernard L. Crampton, New Britain, a setoff on a certificate of deposit against a note held by the closed Commercial Trust company, New Britain, was sustained. Frederick A. Searle, receiver. had appealed the finding.
17.
December 5, 1934
Hartford Courant
Hartford, CT
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Gives Closed Bank Year Building
Judge Outlines Depositors' Rights in Foreclosure of Commercial Trust Property
Depositors of the closed Commercial Trust Company of New Britain on Tuesday had their single remaining asset saved them for at least another year by decision of Superior Court Judge livan, who gave the bank receiver until the first Tuesday 1936 to redeem its against which the Metropolitan Life Insurance Company obtained foreclosjudgment The building. which stands West Main and Washington streets, New Britain. has been described the finest type the state was built of than experts between the held before Judge O'Sullivan several days ago The the property was fixed
States Depositors' Rights. no action, solvent banking Judge said he would not grant request the short redempperiod. the background the picture are the entitled the zealous the more fortunate creditors whose claims The the of bank are shriveled lost the bitter altogether too costly process of reflects itself mostly upon the depositors Indirectly they have interest this foreclosure the bank property represents an asset upon which they relied. The highest possible equities require that time, with complete justice to the afforded the within which to dispose of the bank property. The Judge O'Sullivan's opinion follows:
Gloomy Duty. "Fixing dates of redemption has been the gloomy by any court in the past years. seeks foreclosure his legal often times his The finds himself caught the spiral values in the sence of He can not sell his thus from the wreckthere ket for real estate. Nor can be
18.
July 18, 1935
The Waterbury Democrat
Waterbury, CT
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# SUPREME COURT
# IS LIBERAL ON
# FORECLOSURES
Court Upheld Decisions of
Lower Bench in Extension of Two Years
Hartford, Conn., July 18-(UP) -The state supreme court today put in writing its expression of liberalism toward foreclosures as announced at the beginning of the New Deal, to give distressed property owners an opportunity to work out from under their tax burdens. In two decisions, the court upheld extended redemption periods. One sustained a lower court decision by Judge P. B. O'Sullivan in the case of the Metropolitan Insurance Co., against Walter M. Bassford, receiver for the Commercial Trust Co., New Britain, involving a debt of $257,685, and the other similarly regarded a decision by Judge Frank P. McEvoy, in a $9090 action of Catherine M. Brand against Eric A. Woolson, over property located at Westport.
Ahead for Two Years
In both cases the lower court had set redemption dates as far ahead as two years. In the case of the New Britain bank the court ruled that the lower court "may properly consider economic conditions which render it difficult to dispose of the property and fix a law day which will give the owner of the equity a reasonable opportunity to dispose of it without jeopardizing the right of the plaintiff to the full payment of the mortgage debt." In the second decision the court set forth that "all the facts indicate that the defendant intends in good faith to redeem, and the probability that he will be able to do so within a reasonable time limited by the court."
The court, however, warned that "great caution" should be applied in determining the time to be allowed by the courts for redemption.
19.
July 25, 1935
The Waterbury Democrat
Waterbury, CT
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$537,852.10 Other Closed Banks Other closed banks in the state are: The American Bank and Trust, Bridgeport; Broadway Bank and Trust, Bridgeport; Broadway Bank and Trust, New Haven; Cheshire Bank and Trust; Citizens Bank and Trust, New Haven; City Bank and Trust Bridgeport: Commercial Bank nad Trust, New Britain; Hamden Bank and Trust; Mechanics Bank and Trust, New Haven; Naugatuck Bank and Trust; Unionville Bank and Trust; West Haven Bank and Trust; Windsor Locks Trust and Safe Deposit. The receiver for the Naugatuck Bank and Trust company will resign at a hearing to be held here next Wednesday morning at 11 o'clock.