17524. City Bank (Kent, OH)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
January 1, 1930*
Location
Kent, Ohio (41.154, -81.358)

Metadata

Model
gpt-5-mini
Short Digest
86f1579b

Response Measures

Full suspension, Books examined

Other: Conservator from state banking department appointed; political dispute over takeover of stock to stabilize bank. Articles do not describe an explicit depositor run on-site, but they state actions were taken 'to prevent run' and refer to the bank having 'closed' earlier and a conservator (Pleister) overseeing the bank.

Description

Articles describe Martin Davey and the Davey Investment Company taking over 435 shares and assuming obligations to prevent run on the bank after loans to a former stockholder jeopardized the bank. Text also refers to the City having closed and a conservator (W. Pleister) for the state banking department; affidavit sworn Oct 18 (1934) confirms conservatorship. Sequence: bank distressed by bad loans → effort to prevent run (share takeover) → bank closed and conservator appointed (receivership). Bank type not explicitly stated in articles, so set to unknown. Dates for the original run/suspension are not precisely given; acquisition noted in Aug (1931?) and loans/closure referenced in 1930s—I use 1930s approximations where indicated and conservator affidavit date for the receivership event.

Events (3)

1. January 1, 1930* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank had been jeopardized by loans to a former stockholder and subsequently closed (reorganization/closure referenced).
Newspaper Excerpt
after the City had closed
Source
newspapers
2. August 1, 1930* Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy loans made to a former stockholder jeopardized the bank's financial stability and triggered depositor withdrawals (effort made to assume obligations of that stockholder to prevent run).
Measures
Davey Investment Company took over 435 shares of City Bank and assumed obligations of another stockholder to prevent a run.
Newspaper Excerpt
to prevent run on the bank
Source
newspapers
3. October 18, 1934 Receivership
Newspaper Excerpt
Pleister, conservator of the Kent institution for the state banking department. Sworn and 18th October (affidavit).
Source
newspapers

Newspaper Articles (4)

Article from The Akron Beacon Journal, October 22, 1934

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Article Text

(Continued From Page One) he was chosen. as the charcampaign," and that "his the behest and the board' of the Davey said formal statement, admit, and for of the stock of the City Bank Ken: The the Co., 435 shares City bank also are malicious falsehoods, which furnish the example that statement that 'the City for many controlled Martin Davey,' delberate and qualified 'Only Shares' had owned 45 shares City bank stock for years, being knew nothing about affairs City bank permitted self elected director in 1930, after condiuary, tion unfolded 435 shares City by the Co. Aug. 1931, was part on this the officers and stock, been for Interviewed as to the original the City stock, named resident county, who owed the Kent bank said and who pledged the Cleveland collateral an $80,000 July, Davey "the rumor around that this got caused the the that his stock and that did the Offers An Affidavit "The statement, Davey InAttached the Davey statement signed and liability not for the Pleister, Kent certified that and The Davey read the formal reply to Hernot bert's that amount knowledge this real estate fiant, correct, truthful more than $300,000 statement. vestment company Davey statement follows sessment double liability called. Therefore, the deposi"My in desperate tors suffered any stave defeat, libelously alleged. politician Coalso borlumbus, one Paul Herbert, the lack perfectly fitted Trust and pledged the role for which he was that the of this the The unscrupulous attack Davey the money from the 'strategy Guardian company. board' state purchased City bank most the Guardian Trust Co. had taken on foreclosure gave unforgivable for $50,000 leaving the City deliberate falsehoods "Wrongul Implication" "He coupled admitted facts pay obvious wrongful bother plications an besmirch the and business and perforgivable record signed and deliberately carried My Brown's assassin. sonal paid the banking indebtedness, life, defaulted which Herbert freely this terrible depresand apologies for sion struck such ownership for years never failed note Bank ahead was due, The serious financial the Davey Co., were the earnest the old City City also Kent, which had other are for of clous falsehoods, furnish the century. nothing example dirty politics that precarious after have permitting myself elected years. "Unqualified "The City Bank cowardly for enough resign run also worked by Martin the City Bank Davey' deliberate and unqualiCentral Trust Co. fied Guardian Trust had owned only 45 shares of and other bank, that City for years, the were all situation shares the tangled affairs the affairs of related the City bank myelected regret in effort 1930, after which its matter itself to loyalty 435 shares City bank that actually acquired the Invest- old had ment Aug. was part nothing but worry and program designed to the that After the acquisition question, this 'should reckless of stock, the officers borrower Davey himrectors remained as they had been the conduct his for elected governor Meant Ohio, slanderous Nothing" block The Opposite" meant "In control, did not, meant have just the nothing than months reckless that except for had into put paying by other interests Few no manner better myrecord than or my companies. these the depression tied my had happenrecord before good no one became and ever not the all the edge the and credit 1930. crime the debt after long years spring the Bank and jealous for there unqualified The City the citiclosed doors, but of Ohio who are the same eight months representing the banking head covered with gray partment. this terrible closed pression its assets entirely wiped live deliberate and unqualified The ordeal again, actual find small, the people although considerable air also has turned amount because over financial 'Deliberate Distortion" brought upon them "The statement, dis- through fault own. Mayand his com- good have the panies the bank's largest someone has that menthe My personal loan was that seemed became The the Davey straight Enough Victory standing the the the people the Co. was not have shared my was obligation worries the result cruel previous owner the 435 that veloped economic shares assumed on August would enough votes this "For many years my bank victory landcould borrow money that wanted from express the ardent hope, which siderable of without campaign security. These the logical and proper my play other and was and dirty and the had be the conple "The character assassin always deposited his providing ample collateral This, do not do. Therefore, for loans in my own and to with which "The splitting of the total loan Davey and compressor was circumventing the deliberate loan was split. My personal ranged before became director. "Straight Business Loan" loan of the Davey Compresbusiness can proven the books of the company. The standing name Davey Co. was loan, merely the who had defaulted the and this was mnner my ample security in the spring 'After the bank had closed for reorganized lent financial and each consented cents on the dollar,' 'after the City had closed and when was determined that the assets not the upon pay each of bank which they There never was call for double liability. the which actively and which subscribed new the ability. Denies Charge statement, Davey cleverly caused 435 shares shares stock, had controlled held the name the Davey 435 shares. urgent request Guardian Trust company Cleveland. had taken from proceedings and wanted to dispose program the City tached this statement the sworn affidavit Pleister, conservator the City bank during period that and and the in position know the The affidavit Pleister follows: Pleister, being duly law, deposes that he has the the banking depart years 1923, 1930 and cluding present time. his employment banking department during repubdemocratic administra- Served As Conservator for Bank Ohio, appointment the intendent That his ices and loans made bank, and that this he made careful examination the made Martin Davey the which Davey affiant further says that he has read Mr. Davey the the Davey the panies Mr. male the the affiant certifies that Davey, covering the City within the knowledge correct, truthful (Eigned) PLEISTER "Sworn and 18th October, "Signed) "Notary public, county,


Article from The Galion Inquirer, October 24, 1934

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Article Text

PAUL HERBERT ANSWERS DAVEY Counters Democrat Explanation With "Statements Admit Indictments" Oct. 24 M. Herbert. Republican candidate lieutenant governor, today answered Martin Davey's reply to his chargreflecting on the Kent gubernatorial candidate's banking transaetions with the statement that Davey's explanation "admits the indict ments." Davey, according to Herbert admits that he is "one of the men on the inside and now he attempting to place himself the other side of the picture among the half million depositors who lost money in the crash of the three banks with which Davey dealt." he continued. stand by my original charges against Davey and once more ask that he file suit against me immediately 80 that his testimony may be taken The Herbert statement ignored Davey's explanation the transaction whereby the Davey Investment Company took over 435 shares of the City Bank of Kent. and assumed the obligations of another stockholder prevent run the bank. statement which was substantiated by W. Pleister. conservator of the Kent institution for the state banking department. Davey also explained that he did not become an important factor in the conduct of the Kent bank until his services had been enlisted save the institution after its financial stability had been jeopardized by loans made to former stockholder. In his reply to the original Herbert charges Davey said that would institute libel actions


Article from The Urbana Daily Citizen, October 24, 1934

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Article Text

Republican Candidate Says He Stands By Original Charges. WANTS TESTIMONY Parties To Political Dispute To In County This Week. Paul M. Republican candidate lieutenant address Republican rally North tonight, today answered Martin reply to charges flecting Kent Demoeratic gubernatorial candidate's banking transactions statement that explanation the Herbert expected to reiterate charges the Democratic candidate for governor tonight according Herbert, Davey scheduled to address the opening Democratic rally in Champaign county in Urbana, Friday night. "admits that he is one of the men the inside, and place himself the other of picture among the half million depositors lost money crash of the three banks which Davey dealt. stand by my original charges against Davey and once more ask that he file suit against me immediately that his testimony may be taken under oath.' The Herbert statement ignored explanation of the transaction, whereby the Davey Investment took over 435 shares of City Bank of Kent. and assumobligations another stockholder to prevent run on the bank, statement which substantiated by Pleister, conservator the Kent institution for the state banking department. Davey also explained that de did not become important factor the conduct Kent bank until his had been enlisted the institution after finan stability had been loans made to former stock holder. his reply the original Herbert, Davey said would libel action against the candidate for governor and members the Republicampaign immedithe election unless the charges retracted. He too busy winning the election to spend any time prosecuting court action until after the election.


Article from Miami Union, October 25, 1934

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Article Text

FILE Declares Explanation Admits Indictments" In Ignoring Explanation Given Herbert, Republi can candidate for lieutenant nor. today answered Martin charges reflecting on Kent banking transactions with statements that Davey's planation "admits the indictments. Davey. according to Herbert. that of on the inside and now tempting place himself on other of the picture among million depositors who money crash the banks with which Davey continued. stand by my original charges against Davey more that he file suit against diately that his testimony may taken under oath." Ignores Explanation The Herbert statement ignored explanation of the transacwhereby the Davey investment took over 435 shares of the company city bank of Kent. and assumed obligations of another stockholder prevent the bank. statement which was substandiated Pleister. conservator the institution for the state banking partment. Davey also explained that he not become an important factor conduct of the Kent bank until his had been enlisted the institution after its finanstability had been jeopardized by loans made to former holder In his reply to the original bert charges Davey said that would institute libel actions against the Republican candidate for lieutenant governor and the member the Republican campaign mittee immediately following the election. unless the charges tracted He said he was too busy winning the election to spend any time prosecuting court actions the conclusion of the campaign.