17064. Westchester Trust Company (Yonkers, NY)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: trust company
Start Date: May 15, 1933
Location: Yonkers, New York (40.931, -73.899)

Metadata

Model: gpt-5-mini
Short Digest: 7d87a220

Response Measures

Borrowed from banks or large institutions, Capital injected, Full suspension, Books examined

Description

A quiet run on May 15, 1933 drained liquid assets; the bank asked the State Superintendent to suspend its license and was placed on a bank holiday basis. Multiple articles describe efforts to reorganize and create a new Citizens Trust or reorganized Westchester Trust, and the old institution remained in liquidation/closed with a liquidator appointed. Thus the run led to suspension and permanent closure/liquidation of the original Westchester Trust Company.

Events (3)

1. May 15, 1933 Run

Cause: Rumor Or Misinformation
Cause Details: Newspapers report withdrawals were due to false rumors and a quiet run steadily drained liquid assets.
Measures: Bank asked State Superintendent of Banks to suspend its license so it might close temporarily; placed on a 'bank holiday basis.'
Newspaper Excerpt: Because of a quiet run that had steadily drained its liquid assets, the Westchester Trust Company of Yonkers ... suspended operation yesterday
Source: newspapers

2. May 15, 1933 Suspension

Cause: Rumor Or Misinformation
Cause Details: Suspension was requested after a run attributed in the press to false rumors; state superintendent issued the suspension on the bank's request.
Newspaper Excerpt: it asked the State Superintendent of Banks to suspend its license so it might close temporarily ... placed the institution on 'a bank holiday basis.'
Source: newspapers

3. January 2, 1934 Receivership

Newspaper Excerpt: the Westchester Trust Company will continue operate its special trust accounts ... liquidation of the old institution ... Organization Committee ... liquidation of Superintendent Banks proceed in the usual manner ... liquidator for the old bank; State Bank Examiner Crane, John Donovan, special attorney for the Banking Superintendent. Also, Dr. A. N. Benedict, chairman of the Depositors' Reorganization Committee ... Special Deputy ... Arthur Quade, liquidator for the old bank; ... the liquidation of the Westchester Trust Company was mentioned repeatedly in 1934 reporting and court proceedings, and plans called for forming a new Citizens Trust to take over assets and pay depositors in part. (excerpts consolidated from Jan. 2and Jan.15,1934 articles.)
Source: newspapers

Newspaper Articles (18)

1. May 16, 1933 Daily News New York, NY

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QUIET RUN PUTS YONKERS BANK ON 'HOLIDAY' BASIS Because of a quiet run that had steadily drained its liquid assets, the Westchester Trust Company of Yonkers, one of the largest banks in Westchester, suspended operation yesterday, but announced it was not withdrawing from the banking field permanently. It asked the State Superintendent of Banks to suspend its license 80 it might close temporarily and this was done, Superintendent Joseph A. Broderick disclosing he had placed the institution on "a bank holiday basis." The Westchester Trust has about 7,500 depositors and about $7,000,000 in deposits.

2. May 16, 1933 Daily News New York, NY

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QUIET RUN PUTS YONKERS BANK ON 'HOLIDAY' BASIS Because of a quiet run that had steadily drained its liquid assets, the Westchester Trust Company of Yonkers, one of the largest banks In Westchester, suspended operation yesterday, but announced it was not withdrawing from the banking field permanently. It asked the State Superintendent of Banks to suspend its license so it might close temporarily and this was done, Superintendent Joseph A. Broderick disclosing he had placed the institution on "a bank holiday basis." The Westchester Trust has about 7,500 depositors and about $7,000,000 in deposits.

3. May 16, 1933 Daily News New York, NY

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"Beautifying the Complexion" QUIET RUN PUTS The News Information Bureau. YONKERS BANK ON WHEN SHE'S UPSET 'HOLIDAY' BASIS Because of a quiet run that had steadily drained its liquid assets, the Westchester Trust Company of Yonkers, one of the largest banks in Westchester, suspended operation yesterday, but announced it was not withdrawing from the banking field permanently. It asked the State Superintendent of Banks to suspend its license 80 it might close temporarily and this was done, Superintendent Joseph A. Broderick disclosing he had placed the institution on "a bank holiday basis." The Westchester Trust has about 7,500 depositors and about $7,000,000 in deposits.

4. May 16, 1933 Daily News New York, NY

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QUIET RUN PUTS The News Information Bureau. YONKERS BANK ON WHEN SHE'S UPSET 'HOLIDAY' BASIS Because of a quiet run that had steadily drained its liquid assets, the Westchester Trust Company of Yonkers, one of the largest banks in Westchester, suspended operation yesterday, but announced it was not withdrawing from the banking field permanently. It asked the State Superintendent of Banks to suspend its license so it might close temporarily and this was done, Superintendent Joseph A. Broderick disclosing he had placed the institution on bank holiday basis." The Westchester Trust has about 7,500 depositors and about $7,000,000 in deposits.

5. May 27, 1933 The Herald Statesman Yonkers, NY

Article from The Herald Statesman, May 27, 1933

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State Officials Efforts Speed For Trust Firm for Success in Plan Hope To Reopen Westchester Trust After Suspension State Department of Banking officials were redoubling their forts today solve the Trust Company problem as the second week of suspended operations neared The state officials, from Superintendent Banking Joseph Broderick down, are persistent their contentions the bank thoroughly and ready for resumption of inations conducted by the state Federal authorities recent weeks The bank suspended the assets from with about the after of the had vol untarily sought an order ately that the WestTrust Act. by Conand late in March. Under this provision, the Federal Reserve, would apply Federal loan to ward off the problem of The Federal Reserve has hesitated act this case, which would set precedent for the state and na tion. result. conferences with the Federal Reserve Bank of New York temporarily abandoned and meetings undertaken with headquarters Washington. DepuState Superintendent August Ihlefeld, flew daily to the capifor these meetings. Today the conferences were once more being held in New Former Mayor William Wallin today declared officials of the bank are awaiting word from these ferences. appeared particularly hopeful that improved developments may soon be forthcoming.

6. July 1, 1933 The Herald Statesman Yonkers, NY

Article from The Herald Statesman, July 1, 1933

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Trust Company Turns To New (Continued from Page One) outstanding stock, as of the last previous examination. Furthermore, even if they are not converted, the holders of the certificates have the right to vote at meetings of stockholders and to determine the policy of the corporation, having word in the management and policy of the institution. These various provisions of the Robinson Act, just enumerated, may be altered somewhat as affecting the Westchester Trust Company by the time the Federal Reserve approval is accorded, but the general program is expected to be substantially that. Act Endorsed By Bankers The Robinson Act was laid before the State Legislature early in 1932, and won the support and endorsement of the New York State Bankers' Association At the last legisla#ve session, State Superintendent of Banks Joseph A. Broderick its adoption and it became law Feb. 21. Four or five banks in New York State, including two on Long Island, the of since its it was indicated today at the State Department Banking offices in New York City. Two reasons were advanced today in banking circles for the fact that delays have the resumption of activity of Yonkers bank. First. there has been the switched basis on which the have gone forward causing readjustment of the working procedure on the part of the bank's directors, their special committee, and the counsel for the institution, including former Mayor Wallin and Milbank, Tweed. Hope and Webb. of New York City. Another reason is said to be the the lack of Federal Reserve Board and the State Department of Banking, as well as between the Federal Reand the Reconstruction Finance Corporation. The R. F. came into the picin order ture early in May to withdrawals. which reached "run" proportions, loans were asked for and obtained in the amount of $590,000 and $200,000. The latter sum was never used, for the bank's suspension meanwhile occurred. Application For Loan Immediately suspension order became effective. formal application was made to the Federal Reserve Bank in New York for loan under the terms of an amendment to the State Bank Conservation adopted March 24, specifically drawn for such an emergency. But technicalities were interposed and the Federal Reserve decided not to act: Then there was long series of dickerings between the Federal Reserve and the which holds considerable portion of assets of the bank, covering loans already authorized. to pave the way for Federal Reserve loan Federal Reserve membership. In good, old-fashioned English, it is reported that there has been good deal and reticence, so that something of stalemate resulted. The State Bank Department, through much of this, appears to lent its good offices mediator and "promoter" for the federal government bureau's ac-

7. July 1, 1933 The Herald Statesman Yonkers, NY

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Death Notices William Thomes Conrad Russell, infant Martha 508 Van Cortlandt Park age weeks days. Funeral service Havey's Funeral SINGLETON-At his home, School St., 1933, George, son the Roscoe Phebe Pryor Funeral Irving Monday, July Henry Duers Interment, Hope Cemetery. CARD OF THANKS Mrs. William Justus wishes to thank her for and symshown recent Carpet the Employes James Herald, the Lodge, English Club, Yonkers Pistol and Revolver Club and the Boys from Tucka- IN MEMORIAM In loving of Major to the Beautiful Beyond July 2nd, 1929. Forgotten all forgetting thinking the the hours drag you left me thre years the babble now forgetting? you each with when this dear, And have you Forgotten forgetting reading each face that never looked forgetting yearning half rapture the shall the wild wish hear and And To in ANNIVERSARY MASS Month's Mind Mass memory Arthur Reagan Joseph's Church Tuesday, July 4th, Mrs. Rosanna Reagan tions through Federal Reserve and C. At several points in the proceedings, during the last few weeks, the members of the bank's committee and the various official groups involved held their breath expecting momentary that negotiations had been completed, when suddenly some flaw would be uncovered, the tiresome dealing would begin all over again. Through the veil of silence at the State Department of Banking comes the assurace that the institution's financial condition "excellent," despite its difficulties and the considerable proportion of mortgages in its assets. There have been so many reiterations that reopening of the Westchester Trust is "just around the corner." that skepticism about this new is perhaps well warranted. But there is chance it the "real McCoy." and this one of the city's large banks will be doing business again in comparatively short time.

8. July 5, 1933 Mount Vernon Argus White Plains, NY

Article from Mount Vernon Argus, July 5, 1933

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COUNTY BANKERS SEEK NEW PLAN Federal Reserve Reluctant to Aid Group YONKERS, July 5 Because Federal Reserve officials evidently are unwilling to establish a precedent by using power granted by Congress to loan funds to closed State banks, negotiations to reopen the Westchester Trust Company today turned to a new plan whereby the authority of State law would be used to obtain the needed money An application by the trust com pany for funds authorized last March in the adoption in Wash ington of the State Bank Conser vation Act has brought no action from Federal officials. No definite refusal has been made but it appears that the Federal Reserve authorities who thus far have not utilized their new privileges, are hesitant about establishing a precedent. Now investigation is being made to determine whether the bank can be reopened under the terms of the Robinson Act, passed recently by the Legislature under which the bank would enroll in the Federal Reserve system to obtain federal funds The Robinson act has been used successfully to reopen four or five other baks in the State Under its provisions, certificates of indebtedness would be issued to the bank's 7,500 depositors in lieu of part of their deposits. The Yonkers bank was "suspended" on its own request May 15 by State authorities when withdrawals. which the bank's officers said were due to false rumors, assumed proportions of a run.

9. July 8, 1933 The Herald Statesman Yonkers, NY

Article from The Herald Statesman, July 8, 1933

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Federal Reserve Orders Change In Organization Plan Rejection of Robinson Act Alone Is Followed By Revisions, Expected To Get Final Approval Soon TO RELEASE 50% OF DEPOSITS By REICHLER Rejection by the Federal Reserve Board of the latest Westchester Trust Company's reopening plan under the Robinson Act resulted today in the framing of new program, with the establishment of a new bank, to be known as the Westchester Trust Company of Yonkers. The inauguration of a new bank would be accompanied by the release of 50 per cent of the $6,000,000 deposits, the other half to be issued in certificates of indebtedness. Holders of these certificates would have voice in the control of the institution and the selection of directors. For the present, the entire stock of the new bank would be taken over by the directors of the old bank. The plan today is embodied in memorandum filed with the County Clerk's office at White Plains by State Superintendent of Banks Joseph A. Broderick. This statement was prepared by the special committee of directors, headed by Elijah M. Yerks, and signed by Robert Edie. assistant treasurer. Although the memorandum specifically says that "it is believed that the data obtained from the recent examinations by the State Banking Department and the Federal Reserve indicates the plan is satisfactory," it has not yet been approved finally by the Federal Reserve Board at Washington. Bank Committee Statement formal statement. briefly ferring to the memorandum, was sued today at the bank here, in conference attended former Mayor William Wallin, counsel for the institution: Elijah M. Yerks, head of the directors' committee, and Robert Edie. Here is believed that the reorganization the Westchester Trust Company be accomplished shortly and certain preliminary papers looking to this were day filed the County Clerk's office in White Plains. "The proposed plan. we are advised, meets with the approval of York and expected that in the very near future, approval the same will be received from the Although the official announcement regarding the bank's negotiations was the only one made bank officials. learned that the final stamp of approval anticipated within few days. accounting for the decision proceed with. the prelimiof the new instituMon, the of which will soon take place. Now In Fourth Plan The new program the fourth which has been in an tempt meet the demands of the Federal Reserve Board. Originally. and after the May 15 by the State Banking following "run" on the bank. an application was made for Federal Reserve loan, under the terms of the State Bank Act. adoptede by Congress late in March for just such an emergency As the Westchester Trust was the first state bank, member of the Federal Reserve. to take advantage of the State Bank Conservation Act. it to have been precedent, to which the entire state and nation looked. The Federal Reserve declined to act under that legislation. Since that time other plans were promulgated, some the suggestion of the State Banking Department, which has been vigorously behind the Westchester Trust's every tempt, and some the Federal ReOne the principal plans recently. explained in The Herald Statesman week ago today. the Robinson Act. under which virtually the same conditions the plan would have been carried out, but without the formation new bank. and with 70 per cent release of deposits. The memorandum for the first time reveals that the Federal Refinds that the Robinson Act plan for reopening "would not be satisfactory. Assets Written Down It was unofficially indicated that some the basic reasons for the insistence upon new bank, on the of the Federal are to found rigid writing down assets. About $1,000,000 worth bonds and notes of the City Yonkers, for instance, are not listed

10. September 21, 1933 The Daily Item Port Chester, NY

Article from The Daily Item, September 21, 1933

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amous Lawyer Bring Suit gainst Bank ounsel In Massie Case presents Friend Against Closed Institution YONKERS, Sept. 21.-The secsuit against a closed bank announced here within the few days will be brought by Charles B. Driscoll against the National Bank & Trust Co. Driscoll, who has been a critic of the bank's offiduring negotiations to rethe institution, said his suit ask "100 per cent" payment his deposit. He was not preto reveal the grounds on which he will base his plea. advertisement Mr. Driscoll's name invites other depositors to join him, and explains he has withheld his suit the present in order not to Interfere with the reopening at- tempts. Now he no longer can wait for his money, he says. George S. Leisure, a life-long friend, has been engaged by Mr. Driscoll as his counsel. Mr. Leisure was counsel for the four Americans held in Hawaii in the the Thalia Massie assault case and is now counsel for Joseph W. Harriman, New York banker now on trial. The first suit against a closed bank was filed against the Westchester Trust Company by the Hill Road Realty Company, Inc., asking full return of its deposits on the grounds that the state order under which the bank suspended business was issued illegally by State Banking Superintendent Joseph W. Broderick.

11. October 26, 1933 The Herald Statesman Yonkers, NY

Article from The Herald Statesman, October 26, 1933

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New York Branch Approves Plan Of Westchester Trust Washington Hears Favorable Ruling of Board May Be Forthcoming Within Few Days DEPOSIT RELEASE EXPECTED Special Herald WASHINGTON, Oct. that loan of approximately $3,500,000 be granted to the Westchester Trust of Yonkers, to permit reopening of that Company tion early next month, have been received by the Reconstruction Finance Corporation from its New York district office, it was learned here today. A favorable decision from the RFC board of directors is expected within few days. Release of about 50 per cent of the $7,500,000 In "frozen" deposits will be made to approximately 7,500 depositors, under the terms of the latest reorganization program, it is understood. This would be in accordance with the terms of the Robinson Act, under which certificates of deposit would be issued for the remaining 50 per plan embodied in previous reorganizawhich had been laid before the Federal Reserve tion proposals Board. The loan of would include the amount necessary to establish new Westchester Trust Company in Yonkers, and another fund to aid in the liquidation of the old institution, The from New York generally believed be major factor in final cision, which lies entirely with the board directors learned that the directors address themselves almost mediately the Westchester Trust's problem, which characterised here involved matter," the intricacies having been responsible for the several weeks liberation and study in the RFC branch office in the metropolis. "RFC officers have been working day and night to the WestchesTrust Company matter to present asserted. Finance men also reported to be be liberal as possible" in the final negotiations on the Yonkers bank. The bank's application excellent progress and will be posed very soon," was added. There followed this optimistic comment: think everybody will be very happy with the outcome." Advances Reopening As soon as the RFC board directors acts favorably the of the New York office, the Westchester Trust Company may reopen within short time, believed here. campaign for stock subscriptions would be required, for the State tendent Banking, Joseph Broderick, would become mandatory upon the The decision now definitely before the RFC Washington based upon the last series thorough examinations of the Westchester Trust Company by Tyree, on the staff the New York his assignment here just before Labor Day. The appeal for RFC aid followed repeated efforts the bank, through by State Superintendent Broderick, to get both loan from the Federal Reserve and membership in the Reserve System. After Federal Reserve rejected the application of the bank. having clined to first, in with special enacted by in the Bank Act for relief banks; second, by the terms of the New York State LegisRobinson Act, which authorizes certificates deposit the reorganization state bank. Old Loans Readily Given When the Westchester Trust was open, the RFC readily loaned substantial sums. Just before the suspension of the institution May 15, following on the institution, the RFC loaned $590,000 authorized another loan of $200,000. The bank was suspended and the second amount was never utilized. In June, following the sale of maturing collateral, Westchester Trust paid off and $1,000 on outstanding RFC obligations. The suspension of the institution came orders State Banking Superintendent Broderick May 15, due to "unwarranted withdrawAlthough was announced then that the bank was "solvent" that reorganization would be effected within short time," petition to the Federal Reserve for loan inaugurated the first of long difficulties. When certificates of deposit first came into the picture, was indicated the State Department of about per cent would cash and cent in certificates. Early in July, when the Robinson Act plan was drafted and recorded the County Clerk's office at

12. January 2, 1934 The Herald Statesman Yonkers, NY

Article from The Herald Statesman, January 2, 1934

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State Launches Plan For New Trust Firm (Continued from One) said today, in order to meet deadline. Loan Good Up to Jan. Friday noon, Jan. designated the end the period during which stock the may subscribed, for the R.F.C. announced that the loan not unless conditions are met or before Wallin pointed out that on the expire Federal organization, unless Conextends its life. Unless the ganization concluded on time, Citizens Trust opening may be Congressional debate over the R.F.C. the establishment the institution laid over definitely, the bank's counsel said. Reports that Richard Edie, associates in the Westchester Trust hope gain control of the institution through purchase large blocks stock were denied flatly today by Robert Edie, his son Edies Deny Cortrol Report the do subscribe the 20,000 shares,' he alternative liquidation." the loan made available the WestchesTrust, through the State Superintendent, Mr. Edie explained further, payment will made in full about $1,350,000 outstanding "bills This amount has been reduced, he pointed out, from about when the bank was Payment will then be made in to depositors and creditors titled to priority in payment under the banking about $800,000 will go to the full liquidation obligations the State New York and to savings banks which have commercial counts the institution. The together other liquid assets in the Westchester Trust, will into the CitiTrust. From these allowance will be made owners remaining deposits, other than those secured or preferred. To Become Reserve Member The Citizens Trust Company, Mr. Wallin declared, become member of the Federal Reserve tem will participate Deposit Insurance Corporation Officials of the new institution will chosen by the organization mittee, with the positors, and will satisfactory the the State Banking the FedReserve. The Citizens Trust will conduct chester Trust negotiations under Westchester Trust will continue operate its special trust accounts. With control assumed by the the Westchester Trust came perunder his Deputy George Porter, in charge of McQuade In Charge Deputy Porter signed to Yonkers to take charge Arthur Special Deputy who will remain here indefinitely, pending opening the Citizens Trust. The plan mailed today all depositors, clerical work for this purpose having been the holiday with staffs laborand each depositor will copy ment, proof claim and signature cards. These must be signed returned the of the Contrast In Plans Today formal plan was different from another filed just ago, when aid the had expectOn July 1933, the State Suthe institution and plan ganization office White Plains, under depositors cent, but the Trust was to be under The Feddeclined to through with that program. Mr. Broderick's statement "Joseph Broderick, Superannounces he Trust Company Jan. 1934, depositors, immediately court approval, part their deposit balances trust company under plan reorganization the Superintendent now being to the Supreme Court, Westchester County. "The of reorganization that proximately per cent posit made to general depositors 100 cent secured and preferred deposits. "Under this plan the Superintendent of Banks immediately, upon court make application Reconstruction Finance Corporation of which (loan the Superintendent has been assured) grantupon compliance with cerconditions. expected that the which has cooperating the reorganization the trust company also file very shortly ficate of organization with the Banks for this and subsequent theresteps plete the the trust company will taken. the liquidation of Superintendent Banks proceed in the usual manner order that most can be secured for depositors without munity to hardship that would result from forced liquidation. understand the organization committee planned solicit immediately from the depositors and the community for capital stock the new trust company. advised that the formed during the time that the trust under represented on the the trust company, and that the community interest provide subscription the capital The plan of be to the deposifollows: execution the subscription not by the New State ing with proof of but tial with aid must obtained this and make cash you. the ify by reorganizing and its condiSeveral days before are necthe tial that $300,000 cash for funds the new trust company raised Full Text The full text the communication from mittee and creditors the follows: extended for the Trust Company Committee. In this period pression the Reconstruction Finance necessary obtain funds to complish this The plan of is Superintendent of Banks the State New York the business property of the Westchester Trust Company and authority the Supreme Court the State New York, will borrow from the Reconstruction Finance proximately pledging therefor liquid chester Trust assets. From the the Westchester Trust Company, paid off. The liquid Trust Company's bonds having ready market and loans classed liquid good, together with cash cluding the Reconstruction Corporation remaining after the secured will be institution be known Citizens Trust of Yonkers (hereinafter called 'the Trust Company new Trust Company proposes pay for purchased sufficient for upon the order the Supreme Court the State to the depositors and creditors entitled to priorunder the provisions the Banking and approximately fifty per cent due the respective depositors and creditors (other than those to in full provided reorganization pleted promptly. made through the medium the Trust Company. proposed that the new Trust will become member the Federal System and will participate in the Federal Deposit Insurance The directors and officers of the Trust Company will to Finance Corporation the the State New The new Trust will conduct iness the cupied Westchester Trust Company. "Ability to provide for such cash payments hereinbefore indiand open new Trust Company depends large measure speed which $500,000 capital funds raised for Trust Company. The capital funds the Trust Company consist $200,000 capital stock shares, value each), $100,000 surplus and debentures be issued the Reconstruction Finance Corporation). undersigned Organization Committee desires offer the depositors creditors chester Trust Company brief period time, subscribe for shares capital stock of the new Trust each having value of the price $15 share thereof allocated to the payment capital stock and $5 theresurplus of the new Trust Company). "Necessity compels the Organization Committee reduce mum time within which subscriptions made cordingly hereby notified that, desire avail yourhereby given subscribe shares capital stock the Company the price hereinbefore your must received Benedict, Chairman the Organization Committee, Broadway Yonkers, York, on before o'clock January 1934. Paragraph the attached subscription ment explains the manner which for capital stock scribed depositors and creditors be made deduction from available you pursuant this plan zation. complete the reorganization

13. January 15, 1934 The Herald Statesman Yonkers, NY

Article from The Herald Statesman, January 15, 1934

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Reorganization Held 'Cloak' For Officers As Contest Begins Movement Launched at Depositors' Expense, Attorney Campbell As Objectors Decline To Halt Fight HEARING ON THIS AFTERNOON By REICHLER Efforts to head off opposition of independent depositors against the Trust Company reorganization plan. collapsed today when old bank account holders protested in Supreme Court against the formation of the proposed Citizens Trust Com- pany. The rebellion came to head before Supreme Court Justice Frederick Close at White Plains despite attempts conciliation made over and today by representatives of the State Banking Department, the Depositors Reorganization Committee and Supreme Court Justice William Bleakley The court hearing this morning preceded by an hour's conference in the office of Judge Bleakwhere independent depositors, headed by Joseph Dubreuil, resistinduce them to withdraw opposition the bank plan. Adjournment Demanded When the case was called in open court, counsel for these depositors asserted that the new bank plan shield ests old directors and stockholders and that the case adjourned the decision the court an adequate protest against the plan can be framed. Judge Close refused to heed this plea and ordered all papers in the submitted by Thursday indicated that quick decision will follow. The conference in Judge Bleakley's office today attended by Deputy State Banking Superintendent George A. Porter, Special Deputy Superintendent Arthur Quade, liquidator for the old bank; State Bank Examiner Crane, John Donovan. special attorney for the Banking Superintendent. Also, Dr. A. N. Benedict, chairman of the Depositors' Reorganization Committee sponsoring the new plan; Maurice S. Degenstein, counsel for Mayor Loehr's Westchester Trust Depositors' Committee: Kenneth Hoffman, an associate of Basil O'Connor, counsel for the organization committee. Also, Mr. Dubreuil and his counLouis Bassiano; Alan Campbell, counsel for Mrs. Lena Maretsky; Louis Dailey, counsel for "the Shotts family,' Adolph Grossman, counsel for small group of depositors. Also Lawson Sandford, depositor, Alexander Stolz, member of the Mayor's Depositors' Committee. R.F.C. Loan Opposed When the case called for hearing on the issue whether or not the state Banking Superintendent be permitted to borrow $2,980,000 from the R.F.C. in order to establish the proposed Citizens Trust Company, Donovan, counsel for the bank superintendent, asked that the opponents of the plan state how great the deposits they represented Mr. Dailey said he appeared for depositors having an interest of $48,000 and Mr. Grossman said his clients $9,000 in the closed bank. Other counsel did not state the amount of their interest. Mr. Bassiano, speaking for Mr. Dubreuil, stated to tain full information on the reopening plan had been rrustrated and asked the court to allow at least 10 days for the formulation of complete objections. Mr. Campbell. appearing in opposition to the plan for Mrs. Maretsky recalled the litigation of his client in connection with alleged illegal conversion old bank assets and asserted that enforcement of the new bank plan would hamper client's interests in that litigation. am looked on here with the popularity of rattlesnake,' he said,

14. January 16, 1934 The Herald Statesman Yonkers, NY

Article from The Herald Statesman, January 16, 1934

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HEARS BANK FIGHT Supreme will Bank petition for borrow from rehabilitate Westchester Trust the well the capital notes, total which go to the new company But the The truth that the the The seeking themselves the of the they going to pay the certain blank. turned say that the plan lutely illegal any debtor assets. The company undertakes The obligation whatexcept obligation the except limited amount. "That company doing no more than acting receiver, paying part keeping can't such transaction color legality. Apparently 'Unfair' Deal agrees credit the depositors its books. This know invest and the the Company which given away for nothing The company to occupy the facilities, estate, but word about rent. simply handing over Westchester Trust the benefits what there today detriments and burdens people are who subscribing they group. far we can see, figures, like the liquidation the the simple would realize more for would obtainthis the assets are pledged which quite obvithe Trust won't the pay six that the would me creditor give know what he put people getting out the stand who do know and find what the assets are Calls Collateral Value High Adolf attorney this suit several months lost the Westchester Trust ago against which sought judgment for depositor, that accordof the Robinthe LegisAct, adopted under which depositors would be given certificates power that of their deposits which portion unpaid. He complained collateral the the book value twice the the of the assets has reduced, the reasonable.' told the court. Regarding Trust's to the loan six ability repay months the months, but they have the of the Westchester Trust are not Yonkers. fair should have proceeding for eight on the plan. Depositors should ten provide plan, if there Subscribed Louis Dailey New York, appearing counsel for Sarah Sadie recited the obtaining any negotiaand joined other in appealing adjournment of Maurice Degenstein, secretary the Mayor's depositor committee and its opposed ad50 per the depositors have proved the Citizens Trust Campbell Bassiano challenged Kenneth Hoffman, the law office former partner President Roosevelt, whom the Trust organization engaged resent advised the court that proximately 990 persons have to shares the new Hoffman explained why the Banking Superintendent and the organization not promising to pay depositors

15. March 20, 1934 The Herald Statesman Yonkers, NY

Article from The Herald Statesman, March 20, 1934

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Public Opinion THE EDIE GUARANTEE Editor, The Herald Statesman: The publication in your newspaper the resolution sponsored me and endorsed by many depositors the Westchester Trust Company in liquidation, at meet last Wednesday evening, reference to the bond posted by Mr. Richard Edie, Jr., insure the opening of this bank. would like to find out why this bond is not declared and the proceeds used for the benefit of depositors. HAROLD E. WOLF Editor's Note: State Banking Porter declares that Mr. Edie's deposits will not called ustil "the end pretty much the end of the liquidation process, when found that depositors cannot be paid full otherwise. that the same exists with regard to stock liability assessments. FEEBLE TAX STRIKE Editor, The Herald Statesman: From the daily appearing in The Herald the tax income to the City of Yonkers during the first 1934 to date, appears as though the tax strike not receiving the general support anticipated by its sponsors. That as should be. Such movement not constructive character but, on the contrary, is decidedly destructive. nothing more than feeble gesture, which would only postpone the day reckoning and ultimate solution to the problem of the increasing cost local confronting the taxpayers. be hoped that those who able pay taxes but who have been influenced to withhold them as the result of the recent strike agitation, will upon second thought step up and pay. Many these property owners will do they consider their own interests first; not, those of the unpaid city employes and the unpaid merchants midst, who placed their faith in the people of Yonkers by extending credit to point where their own credit is jeopardy. The more ponders tax strike, the more vicious becomes to all fairminded people. Ballots, Not Ballyhoo take this position not because delight in being gouged of my money nor that satisfied with the budget with its burdensome rate not. because firmly believe that the problem confronting the taxpayer today can be solved in one way only, namely, the proper use the ballot Election Day. Ballots instead of ballyhoo can bring about the desired relief. The citizens should organize for effective action through that channel and in no other way. The success of any venture rests in to law of ganization. Every individual and of organization must with the objective set, the goal is to be attained. This fact fully by political parTheir loyalty to this principle assures victory the polls against small citizen groups who wish to reforms in Small citigroups work at purposes and nothing because they are not well organized and have no definite plan. The several civic associations which are scattered throughout the city in state of disorganization should realize this fact and cease their sniping. They should coordinate their into one association. has been done in other communities, why not here Yonkers? Lauds City Manager The success of the City Manager Plan in hundreds cities throughout the United States reducing local government expense during the depression, testimony that be done. This ment is direct contrast to the increase taxes in the majority of cities whose and has been under the control of litical parties during the same period. The City Manager Plan has been successful where tried because favoritism and politics have divorced from civic affairs and citizens of all classes have worked together for Furthermore, the influential citizen of those communities have become conscious their civic responsibilities and have accepted unselfish and active leadership in the movement. We have the same elements in our citizenry here in Yonkers. Why don't they come forward work for better day in our community affairs. WILLIAM G. MENAUCH, 550 Van Cortlandt Park Avenue.

16. April 7, 1934 The Herald Statesman Yonkers, NY

Article from The Herald Statesman, April 7, 1934

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Demand Probe Of State's Acts On Trust Firm South Yonkers Residents Give Support to Move for Inquiry Into Clósing Attacking the actions of the State Banking nection with the Westchester Trust Company. Fournier, Yon kers attorney, last night demanded investigation the activities the department at meeting the sociation. The organization went record as an inquiry intc the of the the tivities the banking bureau. "That bank was first open under the moratorium. Fournier said. had been amined by the State Banking Department and found to be sound condition. opened with the consent approval the State York. The month after its opening quarterly dividend was paid the stockholders bank and the very next month banking operations WestTrust Company were pended. Blunder' feel that colossal blunder made by the State Banking De. partment in allowing the bank reopen. that intelligent, efficient and competent bank. department can bank. declare be financially sound position to on and later that bank request to be suspended? "Can it be that after the the State SuBanks can declare the bank to be sound and assure

17. April 7, 1934 The Herald Statesman Yonkers, NY

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New Executor Asked In Place Of Trust Firm An Accounting of Funds Handled by Institution Special WHITE PLAINS, April 7.-A request that the Westchester Trust Company of Yonkers be removed executor of the estate of Denis Yonkers, died March, 1928, estate about his widow, Anne, son, was made yesterday in Surrogate's Court. Surrogaet George Slater served decision on the request but indicated he would grant Ambrose McCall, attorney for the legatees, pointed out in his papers, submitted on his behalf by Irving Schneider of Yonkers, the bank liquidation and that its charter bank pended by State Banking Superintendent Joseph Broderick 1934, that, therefore, other executor ought to pointed. The Gerbereux heirs also ask that the compelled full the way has handled the funds.

18. July 26, 1934 The Herald Statesman Yonkers, NY

Article from The Herald Statesman, July 26, 1934

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State Banking Counsel Quits: Joins Law Firm Heenehan, Trust Company Here. Will Be Associate of Donovan Deputy State Banking Superin tendent James T. Heenehan of New Rochelle, who was leading figure in negotiations leading up to the Westchester Trust liquidation. will retire from the State Banking Department Aug. to resume private law practice He has been general counsel for the department. He will become associated with Sullivan Donovan, in which firm Gerald Donovan of New Rochelle is now special counsel to State Banking Superintendent Joseph Broderick in connection with the Westchester Trust liquidation. Mr. Heenehan was in personal charge of the Yonkers situation during the memorable suspension order, issued May 15, 1933, and worked directly with Federal Reserve and Reconstruction Finance Corporation authorities in vain effort to rehabilitate the institution. White to Take Post William R. White associate of Mr. Heenehan for four years in the department's legal activities in Westchester Trust negotiations, will be promoted to Mr. Heenehan's post as general counsel. Jackson S. Hutto becomes principal attorney, the office to be vacated by Mr. Mr. Heenehan has been with the Banking Department since April, 1930, and in that time the has supervised the legal phases of more than seventy banking institutions closed by the department. He had