1718. Central Fairfield Trust Company (Norwalk, CT)

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust company
Start Date: December 1, 1930
Location: Norwalk, Connecticut (41.118, -73.408)

Metadata

Model: gpt-5-mini
Short Digest: 28ee1bf8

Response Measures

None

Description

State Bank Commissioner issued a restraining order suspending the bank on 1930-12-01 because of a heavy shrinkage in commercial deposits; attempts at reorganization followed but the bank was placed in receivership (Dec. 9, 1930) and a temporary receiver named, indicating permanent closure rather than successful reopening.

Events (4)

1. December 1, 1930 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Heavy shrinkage in commercial deposits forced liquidation of quick assets and weakened reserves, prompting the commissioner to restrain payments and receipts.
Newspaper Excerpt: The Central Fairfield Trust Co. of this city was suspended today by means of a restraining order issued by State Bank Commissioner Lester E. Shippee. The order forbids the bank from paying out any funds or receiving deposits until a hearing is held before a judge of the superior court.
Source: newspapers

2. December 7, 1930 Other

Newspaper Excerpt: A committee of six men ... instructed to arrange for Central Fairfield Trust Company ... empowered to obtain shares from stockholders with an option to sell them ... proceedings will be given Saturday ... stockholders present that deposits would be fully protected. (Shows attempted reorganization committee work.)
Source: newspapers

3. December 9, 1930 Receivership

Newspaper Excerpt: NORWALK BANK PLACED IN HANDS OF RECEIVER Assistant Attorney General Says Assets of Institution Are 'Frozen' ... the state banking commissioner has placed a bank - the Central Fairfield Trust company of Norwalk - in receivership.
Source: newspapers

4. January 10, 1931 Other

Newspaper Excerpt: Proposed confirmation of the First National Bank & Trust Company of Bridgeport as receiver for the Central Fairfield Bank & Trust Company ... was postponed for two weeks. The stockholders' committee has already raised about $250,000 of the $300,000 needed to reorganize and reopen the bank.
Source: newspapers

Newspaper Articles (13)

1. December 1, 1930 New Britain Herald New Britain, CT

Article from New Britain Herald, December 1, 1930

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CENTRAL FAIRFIELD TRUST CO. CLOSED Norwalk Bank Business Halted by Order of Shippee DEPOSITORS BELIEVED SAFE State Commissioner Forbids Institution to Continue Until Difficulties Are Settled-Conmmercial Account Losses Blamed. Norwalk. Dec. 1 (AP)--The Central Fairfield Trust Co. of this city was suspended today by means of a restraining order issued by State Bank Commissioner Lester E. Shippee. The order forbids the bank from paying ( out any funds or receiving deposits until a hearing is held before a judge of the superior court. The ac1 tion follows an examination of the t bank. just completed, by A. F. Austin, chief examiner of the state banking department. Christmas Checks Delayed a Christmas club checks, to the r e amount of $30,000. which were to be received by depositors today, have t been held up. t The bank's present difficulties are largely the result of a heavy shrink( age in commercial deposits. This steady drain has naturally forced liquidation of quick assets and has weakened the reserve position to a point where suspension was necessary. During the past 10 days. the directors of the bank have not only made every effort to place it in a S more liquid condition. but also have pledged themselves to add $150,000 to the surplus account of the bank, C a large part of which has already been paid in in cash. This money was voluntarily advanced for the protection of depositors. Plan Reorganization According to a statement issued by Commissioner Shippee. the suspension will be a temporary one. as negotiations are already under way with well known banking interests, looking towards the reorganization of the bank. The directors today issued a statement declaring that they were bending every effort toward a speedy reorganization of the bank C along lines which will merit complete confidence. They assure depositors that they are fully protected. The bank has a capital of $200.000. The company was incorporated in 1923. A statement in the state manual for 1930 gave the company's surplus as of last year $100,000 and undivided profits of $69,594.42. The savings deposits were given at $1. 496.156.21 and the commercial deposits at $1,645,723.42. Officers of Concern The officers given were Emile Hemming, president: S. L. Weed, secretary, and I. P. Spining. treasurer. In an official statement. published on October 2. 1930, showing the condition of the institution at the close of business on Sept. 24, the deposits of the Central Fairfield Trust Co. were listed as $964,000. with as(Continued on Page Two)

2. December 1, 1930 New Britain Herald New Britain, CT

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First In 10 Years Hartford, Dec. 1 (P)-Commenting on the suspension of the Central Fairfield Trust company of Norwalk, on his return from that city today. State Bank Commissioner Lester E. Shippee said it was the first instance among state banks in ten years and he did not expect the suspension would be long. Mr. Shippee said: "After analyzing the assets of this bank. we are of the opinion that the depositors are fully protected and it is anticipated that the suspension will be a temporary one, as negotiations are already under way with well known banking interests looking toward the reorganization of this bank. If such reorganization is accomfished, the bank will operate with added strength and with increased facilities, in excellent management." No Hartford Connection The change in status of the Mutual Bank & Trust Co. of Hartford, Mr. Shippee pointed out, has no Learing on the difficulties of the Central Fairfield Trust company. This explanation was occasioned by the fact that President Emil Hemming of the Central Fairfield was a director of the Mutual in Hartford whose president, A. Ray Betts, came to Hartford from Norwalk where he was secretary of the Central Fairfield. He is still a director of that institution. Although under the restraining order no deposits may be received or money paid out until the order is revoked, those having notes or other obligations to the bank will make their payments in due course, and in the usual way, and will be admitted to the banking house for that purpose, Mr. Shippee said. Mr. Shippee's action follows an all-night session with the directors which ended at 3:30 this morning. John H. King, assistant attorney general, and counsel for the banking department, also took part in the meeting. The suspension notice was posted by A. F. Austin, chief bank examiner, at 8 o'clock this morning. Assets Are Large The assets of the bank are a total of $2,900,000. while the deposits amount to $2,329,000, which are divided into $1,394,0000 in savings deposits and $335,000 in commercial deposits. The reorganization movement is expected to crystallize within two weeks.

3. December 1, 1930 Kingsport Times Kingsport, TN

Article from Kingsport Times, December 1, 1930

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BANK SUSPENDED NORWALK, Conn., Dec. 1. (AP) The Central Fairfield Trust company of this city was suspended today by state bank commissioner, Lester E. Shippe. The bank is forbidden paying out funds or receiving deposits until a court hearing is held. Christmas club checks to the amount $30,000 which were to be received by depositors today have been held up. The bank's difficulties are due largely to the result of a heavy shrinkage in commecial deposits.

4. December 1, 1930 The Journal Meriden, CT

Article from The Journal, December 1, 1930

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$30,000 In Christmas Checks Are Held Up Norwalk Bank Under Suspension On Order of Shippee Norwalk, Dec. The CanFairfield Trust company this city was suspended today by of order issued State Lester Shippee. The order forbids the bank from paying out any funds deposits hearing held before judge of the Superior court The action the affairs the just completed Austin, chief of the state banking department. Christmas checks. to the amount of be received depositors today have held The bank's present difficulties are largely the result heavy shrinkage commercial deposits. This steady drain has naturally forced liquidation quick and has weakened the reserve position to where suspension necesDuring the past 10 days the directors made effort more pledged add the sur the large already been paid cash was tarily for the protection of According to statement issued by the suspenwill temporary negotiations are already underway with banking interests, looking towards the reorganization of the The directors today issued statedeclaring that were bending every toward speedy rethe bank along lines merit complete assure that they are In bank lished on 1930. the of the institution at the YEARS WITH of September 24 the deposits of the Central Fairfield trust listed as MERIDEN BANK with assets The doors of the bank were closed today The company incorporated in When President John G. Nagel 1923 with capital $200,000. the Meriden Savings bank arrived statement the state manual bank this morning found for 1930 the gave company's surplus staff and awaiting his last $100,000 and undividcoming the desks covered profits The savings flowers reason was that today deposits were given at and the commercial deposits at The officers given were Emile HemWeed. secretary and Spinning. treasurer. the fortieth anniversary of his con nection and the ering was not to congratulate him but also present with Gillette set properly engraved. the the made by Treasurer Millens Taft from the directors the bank and from other banks who Mr. Nagel's long service. The of New Haven large basket chrysanand late flowers, there another basket chrysanthemums from the Farmer's and Mechanic's bank of and bunch roses from the Bridgeport People's Savings bank the Meriden National Mr. Nagel first connected with the bank on Monday, December clerk. He became tee and assistant treasurer July 1909. director and treasurer on July 1921 elected president December 24, 1923. When entered the bank now are nearly $12,000,000 and the the period about over happens today was the the of the bank and Mr. Nagel's long service officially minute congratulating him on the anniversary.

5. December 1, 1930 The Daily World Helena, AR

Article from The Daily World, December 1, 1930

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MORE FIVE BANKS FAIL OPEN UP AT BLYTHEFIRST NATIONAL CLOSES FOR MERGER VILLE AT STEPHENS ANOTHER Blytheville, Ark., did National open this morning and anmade in a posted nouncement was the bank had closed pending notice Farmers Bank with the merger Coincident and Trust Company." officers of the announcement with institutions went the two ference behind closed doors. and the FarFirst National The mers Bank and Trust Company are institutions in the only banking Blytheville. Ind., Dec. New Albany, The New Albany American Bank re-opened Trust Company and having been today after here closed since November 20. It was to safeguard by directors closed financial conafter resources disturbed by here were ditions in Kenof bank closings series tucky. Conn., Dec. Norwalk, Trust ComCentral Fairfield The towas suspended of this city Bank Commissioner State The bank Lester Shippee. funds or reout forbidden paying court hearuntil a ceiving deposits is held.

6. December 2, 1930 The Des Moines Register Des Moines, IA

Article from The Des Moines Register, December 2, 1930

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8 BANKS CLOSE GRAIN MEN FIGHT AND ONE OPENS Merger Negotiations Have Part in Two Suspensions. (By The Associated Press.) Eight banks in the United States closed their doors Monday, merger negotiations given as the cause in two instances. One bank reopened after a period of susThe First National bank of Blytheville, Ark., did not open. An announcement said it had closed "pending a merger with the Farmers Bank and Trust company At Stephens, Ark., the Peoples bank suspended for five day period. Officials said the closing was for reorganization or possible consolidation with the Bank of Stephens Three State Banks Close. Closing of three state banks in Illinois was reported to State Auditor Oscar Nelson at Springfield The banks were the Johnson City State bank, the Rock Grove State bank and the Marine Trust Bank of Carthage A Marion III., dispatch said the Marion First National bank had closed. The action was taken it was reported to protect depositors against heavy withdrawals At Chatham Va., the Chatham Savings bank. one of the oldest financial institutions in Pittsylvania county failed to open for business The bank. capitalized at $100,000 was closed by order of the state banking department. One Connecticut Closing. Distribution of Christmas club checks totaling $30,000 was halted when the Central Fairfield Trust company of Norwalk, Conn., was suspended by means of restraining order issued by state bank commissioner The bank's difficulties, the commissioner indicated. were largely the result of heavy shrinkage in commercial deposits which forced liquidation of quick The New Albany American Bank and Trust company at New Albany Ind. reopened after having been closed since Nov. 20.

7. December 2, 1930 The Times Shreveport, LA

Article from The Times, December 2, 1930

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INDIANA BANK SHUT, REOPENS Two Small Institutions in Arkansas Close Monday for Reorganization New Albany, Ind., Dec. Albany American Bank Trust company reopened Monday after 20. was closed by directors to safeguard its resources after conditions here were disturbed series of bank closings in Kentucky. Blytheville, Dec. First National bank here did not Monday and announcement made posted notice that bank closed "pending merger with the Farmers Bank and company.' Coincident the announcement officers the doors. First and the Farmers Bank Trust are only banking institutions in Blytheville. Ark., Dec. Peoples bank Monday for Officials closing was for with the Bank of Stephens. Va., Dec. oldest in Pittsylvania failed to open Monday. The bank capitalized $100,000 note the door the bank was closed by order of the banking department. Officers said approximately $25,000 of Pittmoney on deposit was protected by bond. Norwalk, Conn. Dec. Central Fairfield Trust company this city was suspended Monday State Lester Shippee. bank ing funds deposits court held. The bank's difficulties largely the result heavy shrinkage in commercial deposits.

8. December 2, 1930 Chattanooga Daily Times Chattanooga, TN

Article from Chattanooga Daily Times, December 2, 1930

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LIVE STOCK United States Department of Agriculture. CHICAGO, Dec. 000 to head, including direct; closed below weights shippers 10,000; estimated Light choice, 140 160 200 250 350 pounds, $8.00 Packing 500 pounds, slaughter good and choice, 100 130 pounds, $8.00 fed 25c to mostly 25c lower better generous proportion comprise selling downward 900 to 1,300 600 pounds, choice, 550 comcommon and Bulls yearlings good choice (beef), cutter to medium. (milk common, Sheep- head: killclasses mostly lower; some lamb sales off fat pounds down. and 150 pounds choice, feeding and to pounds, 500 head; active: steady close last Best others. $4.50 steady heavies nominally down 800 steady: 300 mostly hogs 300 pounds best lambs bid absent Butter, Eggs and Poultry. NEW YORK, receipts. 4,457 firmer higher than packing stock current make. No. 24@ No. Eggs. receipts. cases: steady mixed colored packed selected 45@46c medium refrigerator extra firsts, seconds 18@20c medium firsts, hennery do. extra nearby western hennery selected. 44@46c average 41@42c Patreated do extra firsts Poultry, steady: chickens. by freight. express. 19@26c freight. 19@20c: express. 19@26c turkeys. freight. by express, 30c; by 16@18c dressed chickens. fresh, western ducks, CHICAGO. -Butter. 31c; 30@31c; firsts, steady: extra fresh firsts, current refrigerator future refrigerator standards. January, Rice. NEW YORK. Rough Clean rice, receipts, 2.670 bags Bank Suspensions. NORWALK Conn., Dec. (A).-The Central Fairfield Trust company of this city was suspended by State Bank E. Shippee The bank is forbidden to pay out funds or receive deposits until a court hearing held. Christmas club checks to the amount of $30,000 which were to be received by depositors today have been held up. The bank's are the result heavy in commercial deposits. BLYTHEVILLE, Ark., Dec. The First National bank here did not open this morning and announcement was in posted that the bank had closed pending the Farmers Bank and Trust company Coincident with the announcement officers the two institutions went into session behind closed doors. The First National and the Farmers Bank Trust company are the only banking institutions in Blytheville. STEPHENS Dec. The Peoples bank here suspended today for a five-day period. Officials said the closing was for reorganization possible consolidation with the Bank of Stephens. for the proposed merger are in progress, it was announced. Illinois banks were closed today, two of them as an apparent outgrowth the failure week of the Benton First National bank, of Marion, and the State closed their doors, leaving both without banking facilities other banks that failed to open today in widely separated communities were the State bank, of Rock Grove, and the Marine bank, of Carthage HARDY Ark., Dec. Farmers bank tonight announced suspension of payments for the five-day period alby Arkansas law. President A. M. Metcalfe said he hoped to reopen. The bank here. is capitalized at statement showed deposits of $106,000

9. December 2, 1930 Tulsa World Tulsa, OK

Article from Tulsa World, December 2, 1930

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BANKS IN FIVE STATES SUSPEND OPERATIONS Institution in New Abany, Ind., Closed Last Week, Is Reopened NORWALK Conn. Dec. (A checks planned was halted when the for Central Fairfield Trust company of this city suspended by of restraining order issued by bank The order forbids the bank from paying funds or deposits uncourt hearing is held The action followed an examination of the bank The bank's present difficulties statement were largely the result of heavy shrinkage in commer deposits which forced liquidation of quick statement by the bank com A would be temporary negotiations were under looking toward reor-

10. December 7, 1930 Hartford Courant Hartford, CT

Article from Hartford Courant, December 7, 1930

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Name Six to Arrange For of Central Fairfield Trust Norwalk, Dec. committee of six men. instructed range for Central Fairfield Trust Company today meeting in the bank offices. Under restraining order issued State Bank Shippee, the bank suspended payments last Monday Members reorganization committee John Warren John Lester Warren Charles Harand Keeler group will act depository body power obtain shares from stockholders with an option to sell them The was empowered to set per share upon holdings They immediately confer outside purchase control the institution. of committee proceedings will be given Saturafternoon. Edward Quinlan, attorney. who presided today's clared affairs the bank were today when Commissioner Shippee made an announcement concerning bright hopes for reorganization and reopening the bank ago. stockholders present that deposits would be fully protected. This year nearly 200 couples about marital ferences the English Divorce Court have been reunited.

11. December 9, 1930 New Britain Herald New Britain, CT

Article from New Britain Herald, December 9, 1930

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NORWALK BANK PLACED IN HANDS OF RECEIVER Assistant Attorney General Says Assets of Institution Are "Frozen" Hartford, Dec. 9 (UP)-For the first time in more than a decade, the state banking commissioner has placed a bank-the Central Fairfield Trust company of Norwalk-in receivership. Assistant Attorney General John H. King, acting for Commisioner Lester E Shippee, appeared before Superior Court Judge Newell Jennings here yesterday and obtained

12. January 10, 1931 Hartford Courant Hartford, CT

Article from Hartford Courant, January 10, 1931

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Receivership Action For Norwalk Bank Deferred 2 Weeks Bridgeport. Jan. -Proposed confirmation of the First National Bank & Trust Company of Bridgeport as receiver for the Central Fairfield Bank & Trust Company of Norwalk recently closed by State Bank Commissioner Lester E. Shippee, was postponed for two today by Judge E. M. Yeomans in Superior Court here. The Bridgeport bank had been named as temporary receiver for the Norwalk bank and the hearing today was to confirm the receivership Attorney Edward Quinlan of Norwalk representing the stockholders of the Norwalk bank. declared that the stockholders' committee has already raised about $250,000 of the $300,000 needed to reorganize and reopen the bank He was confident that if continuance was granted for two weeks the remaining $50,000 would be obtained and the appointment of receiver will not be nece sary If the required additional $50.000 is obtained in the next two weeks motion will be made in the Superior Court for the dismissal of the temporary receiver When the bank is reopened. 000 in Christmas club funds will be distributed to depositors Rumania has prohibited the Im portation of all goods of Russian origin.

13. February 19, 1931 The Waterbury Democrat Waterbury, CT

Article from The Waterbury Democrat, February 19, 1931

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Final Proceedings In The Legislature And Measures Passed Republicans Force Through the Bill That Hits at Levitt and Then Began Recriminations of Members included one to appropriate $2,500,Hartford, Feb 19.-(UP)-The : re000 to the Fairfield state hospital at publicans "should hang their heads Newtown. in shame" if the measure were Another created the Lafayette passed, declared Rep Wallace N. Jewett, dem, East Hampton's poetstate highway between New Milford farmer. He was referring to the and Torrington. dispute on the Levitt controversy. Under suspension of the rules, the He charged the bill was partisan and house passed a bill changing the challenged the majority to permit a name of the Central Fairfield Trust roll call vote to show it. This moCompany of Norwalk to the Mertion was defeated. chants Bank and Trust Company. The amendment was defeated on The measure was transmitted to the a rising vote. Then the bill was senate which concurred. The Central Fairfield Trust was closed. on passed. "Now," said Johnson, turning toorder of. the banking commissioner ward Jewett, "I know where my several months ago and is in process valentine came from." He referred of reorganization. to a valentine ne displayed yesterUnder suspension of the rules the day, which read "Why the devil don't house passed measures reimbursing you-' on the outside and "become the Cheshire Reformatory $1,254.50 a democrat?" on the inside. for goods sent to the State Board of "You aren't the only one who got Health and authorizing Belden and a valentine," shouted Jewett, BranBrothers, Incorporated, Waterbury truckers, to move to Putnam. The dishing an envelope. Rep Markham senate concurred in the latter. moved the valentines be transmitted to the seante but the chair ruled the The senate passed measures creatmotion out of order. ing the General Israel Putnam State The grade crossing measure then Highway in Windham county, in honor of the Connecticut Revolupassed without opposition. Other bills passed from calendar tionary War hero and establishing the harbor lines on Mill river, New Haven. A favorable report on a bill to raise the salary of the deputy judge of Waterbury district common n Lauded pleas court from $4,000 to $6,000 a year was tabled for calendar. The senate voted to retire Louise Schmall and Katherin T. Harty, vetBarr eaker eran school teachers, on a pension. The teachers had sought retirement with pension from education officials without success. Will in Them for