17754. Commercial Savings Bank & Trust Company (Toledo, OH)

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: trust company
Start Date: August 15, 1931
Location: Toledo, Ohio (41.664, -83.555)

Metadata

Model: gpt-5-mini
Short Digest: 3dedeb16

Response Measures

Accommodated withdrawals, Full suspension, Books examined

Other: State banking department took custody of the institutions; 60-day notice of withdrawals had been previously posted.

Description

Directors closed the bank and turned assets to the State Superintendent Aug 15–17, 1931 after heavy withdrawals following the earlier Security-Home Trust failure. The bank was taken into state supervision and later reorganized with planned reopening/dividend payments (reopening around Dec 15, 1931). Cause of initial runs is linked to failures of other local banks (Security-Home Trust), so classified as local_banks. OCR errors in some clippings corrected (e.g., Commerce Guardian/Commerce-Guardian).

Events (3)

1. August 15, 1931 Run

Cause: Local Banks
Cause Details: Heavy withdrawals and 'hysteria' following the earlier closing of the Security-Home Trust Company; runs on Toledo banks and steady withdrawals prior to closing.
Measures: Banks had previously posted 60-day/60-day notice on withdrawals; staff of state and federal examiners began liquidation; Federal Reserve credited $11,000,000 to restore confidence.
Newspaper Excerpt: the wave hysteria which followed the closing of Home Trust Company ... has the banks and has unabated.
Source: newspapers

2. August 17, 1931 Suspension

Cause: Local Banks
Cause Details: Directors closed the bank and turned assets to the State Superintendent of Banks to conserve assets after steady withdrawals tied to earlier bank failures in the city (Security-Home Trust).
Newspaper Excerpt: Four Toledo banks with combined resources ... failed to open for business this morning ... state banking department prepared to take over their affairs.
Source: newspapers

3. December 15, 1931 Reopening

Newspaper Excerpt: a new bank and three holding companies are being organized to take over the Ohio, the Commercial and the Security-Home, December 15 ... initial dividends of 15 to 30 per cent are scheduled to be paid December 15 . . . closed banks are expecting to pay a hundred cents on the dollar. . . . Payment of the dividends by the three closed banks ... begin next [December]. (Nov23 and Dec clippings indicate planned reopening/dividend distribution).
Source: newspapers

Newspaper Articles (15)

1. August 16, 1931 The Cincinnati Enquirer Cincinnati, OH

Article from The Cincinnati Enquirer, August 16, 1931

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Silver Bar silver continued un changed at the close of the week holding at 27% an ounce New York and 12% pence in London Washington, August 15the Farm Board finally will adopt to the Southern cot farmer his low dilemma tonight the close interest of toel-Operations of steel mills in Washington the Youngstown district next week Hope been virtually abandoned will average per cent of rated for its proposal that third of the an increase of one per cent current crop be destroyed and over the past week, Dow, Jones & ization supplies held off the market Co. estimates. for year At least five actual rejections been received the Governors TOLEDO BANKS CLOSED. who were asked to join in the program. Three Savings Institutions Turned There apparently is no immediate Over To State Department. prospect of action although many to that Toledo, Ohio, August end have out. The disposit Directors of the Ohio Savings Bank seems be to leave the actual for & Trust Co., the Guard plan squarely up to the board to be Trust & Savings Bank and the worked out the counter Commercial Savings Bank & Trust proposals put forward by Governors. Co., at special meetings tonight. de- Senators and cided to close the three board members continued banks and turn their assets their efforts to reach an agreement the State Superintendent of Banks with the directors the American This action means that the three Cotton Cooperative Association on down-town banks and their 34 the amount advances to be branches throughout the ed in handling this city not be opened Monday year's The bumper morning pective crop 15,584,000 In the of said the this action for protection of all de- tions have been in process for during an unparalleled several days. TRY OUT GROUP MARKETING Salem, Ohio, August Orchardists Mahoning and Columbiana Counties today began their first in group marketing. They completed deal whereby large of the apple and peach will be sold an agency 700 and 800 cars of fruit will be shipped with East Palestine New Coford and Canfield

2. August 16, 1931 The Cincinnati Enquirer Cincinnati, OH

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TOLEDO BANKS CLOSED. Three Savings Institutions Turned Toledo, Ohio, August 15-(AP)Directors the Ohio Savings Bank Co., the Guard& Trust lan Trust Savings Bank and the Commercial Savings Bank & Trust Co., special meetings tonight. decided to close the three banks and turn their assets the State Superintendent of Banks. that the three This action means banks their down-town branches scattered throughout the not be opened Monday In making the announcement of this action for "protection of all de positors during an pehysteria,' clearly was dicated that the are considered solvent and would be able to take all normal demands in The wave hysteria which followed the of Home Trust Company June 17, how. ever, has the banks and has unabated. The three banks total resources more $100,000,000 and deposits of $80,000,000. to the published stateaccording ments of June 30.

3. August 17, 1931 The Indianapolis Times Indianapolis, IN

Article from The Indianapolis Times, August 17, 1931

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FOUR BANKS IN TOLEDO CLOSED 34 Branches Are Affected; $100,000,000 Resources. By United Press TOLEDO, O., Aug. 17.-Four major Toledo banks and their fourteen branches, with combined resources of more than $100,000,000 and 150,000 acounts, were closed today by orders of the state banking department and directors. The institutions were the Ohio Savings Bank and Trust Company, the Commerce Guardian Trust and Savings bank, the Commercial Savings Bank and Trust Company and the American bank. Other banks remained open and announced they were prepared to withstand heavy withdrawals. The four closures were precipitated by the closing several weeks ago of the Security Home Trust Company, it was said. As notices were posted on the windows of the institutions, every available policeman in the city was ordered on duty, but there was only one instance of disorder. An irate citizen tossed a bottle through the window. of a branch bank. Under a force of sixty men of the state banking department, augmented by six examiners of the federal reserve bank system from Cleveland, the task of liquidating the four suspended banks was immediately begun. As work of liquidation was started, crowds of anxious depositors thronged about the institutions, but there was no disorder. Traffic presented the greatest problem. Other local banks drew a steady stream of depositors, who withdrew their funds and dispersed. Withdrawals were being met promptly.

4. August 17, 1931 Quad-City Times Davenport, IA

Article from Quad-City Times, August 17, 1931

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Four Banks Are Closed Toledo $110,000,000; Police Prepare for Emergency. Toledo, Aug. Toledo banks with combined resources of more than failed to open for business this morning, while 11 savings associations ceased payments of deposits during the present financial situation. In accordance with the request of directors the four institutions, the state banking department prepared to take over their affairs conserve assets in the face of previous steady withdrawals by positors. City police and detectives troled the banking districts in preparation for any public emergency Meanwhile, there was pending meeting between Mayor W. son and Adjutant General Frank Henderson, Columbus, commanding the Ohio National guard. Late Saturday, directors an nounced closing of the Commerce Guardian Trust and Savings bank, the Ohio Savings Bank and Trust company and the Commercial Sav ings Bank Trust company. Expect to Yesterday, in the wake of these came word from directors of the fourth institution, the American bank, state bank, that it would be forced to close its doors also because its reserves were tied up in two of the banks sus pending operations. It was indicated that conferences relative to reorganization may be started within ten days. Six Close in Nebraska. Lincoln, Neb., Aug. Six Nebraska state banks today failed open their doors for business and both Gov. Charles Bryan and E. H. Luikart, secretary of the state department of trade and commerce, said the closings the result of recent bank sus. pensions in Omaha. Killed by Lightning. H. Broman, 35, of Corydon, was killed afternoon by lightning as he got out of his car to examine damage done in minor accident on highway south Roggan. His wife and small child were uninjured.

5. August 17, 1931 Des Moines Tribune Des Moines, IA

Article from Des Moines Tribune, August 17, 1931

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TOLEDO BANKS FAIL TO OPEN Had Resources of More Than 100 Million Dollars TOLEDO banks combined of more than 100 million dollars to open for business day while 11 saving sociations ceased payments of posits during the present cial The state banking department prepared the banks affairs to conserve in face of previous steady withdraw. Police and detectives patrolled the banking districts in preparation for any public emergency Late Saturday, directors announced closing of the Guardian Trust and Savings bank the Ohio Savings Bank and Trust CO. and the Commercial Savings Bank and Trust co. Directors of the fourth institution, the American bank state bank Sunday it would be forced to close its doors also because its reserves were tied up in two of the banks suspending

6. August 17, 1931 The Evening Review East Liverpool, OH

Article from The Evening Review, August 17, 1931

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FOUR TOLEDO BANKS CLOSED State Takes Over Institutions in Move to Protect Assets For Depositors. TOLEDO, O., Aug. con assets for the protection of and expedite negotiations merger four major Toledo banks and their 34 banches were today the hands of state banking department for operation. Directors of Ohio Savings Bank Trust company, the Commerce Guardian & Savings bank, the Commericial Savings Bank Trust Co. and American Bank voted Saturday night to turn the institutions over Ira Fulton, state superintendent of banks. Re sources of the four total more than 60-day notice on withdrawals invoked by the Toledo banks after closing of the Security Home Trust Co. June 17. With the ex piration of that period heavy with drawals anticipated and the action today was taken avoid serious obstacles to orderly liquida tion. Negotiations for a merger among the four will be pressed with vigor is understood. and with the full co-operation of the state banking the department to restore Toledo's fin ancial structure to normal condi

7. August 17, 1931 The Iola Register Iola, KS

Article from The Iola Register, August 17, 1931

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Hundred Million in posits Tied Up In City Toledo, Ohio, Aug. 17. Four Toledo banks with combined resources of more than failed open for business this morning, while eleven savings associations ceased payments of deposduring present financial situation. accordance with the request directors the four institutions, state banking department their affairs conserve assets in the face of vious steady withdrawals by depositors. City police and detectives. acting under orders Police Chief Louis Haas. patroled the districts any public The action of directors ties for an indefinite period more than of deposits. The Security Home Trust company when closed had about deposits; Ohio Savings Bank Trust company almost Commercial Savings Bank Trust company and Commerce Guardian Trust Savings Bank There disorders when banks affected by the closings opened here There crowds. the banks. Neb., Aug. banks today failed open their business and both Bryan secretary the state trade and merce, said the closings were the result recent bank suspensions Omaha. The six banks with total deposits the State Bank Dale: Dwight State Bank of Dwight; Brinard State Bank Brinard: Bruno State Bank the Butler County Bank of Davis and the Leigh State Bank Leigh.

8. August 17, 1931 St. Albans Daily Messenger St. Albans, VT

Article from St. Albans Daily Messenger, August 17, 1931

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FOUR BANKS IN TOLEDO CLOSED Eleven Savings Asscciations Cease Payments of Deposits During Financial Crisis TOLEDO, O. Aug. 17-(P)-Four Toledo banks with combined resources of more than $100,000,000 failed to open for business this morning and eleven saving associations ceased payments of deposits during the present financial situation. In accordance with the request of directors of the four institutions, the state banking department prepared to take over their affairs to conserve assets in the face of previous steady withdrawals of depositors City police and detectives, acting under orders of Police Chief Louis Haas, patrolled the banking districts in preparation for any public emergency. Late Saturday, directors announced closing of the Commerce Guardian Trust and Savings Bank, the Ohio Savings Bank and Trust Company and the Commercial Savings Bank and Trust company. Yesterday in the wake of these announcements came word from directors of the fourth institution, the American Bank, a state bank, that it would be forced to close its doors also because its reserves were tied up in two of the banks suspending operations.

9. August 17, 1931 The Evansville Journal Evansville, IN

Article from The Evansville Journal, August 17, 1931

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4 TOLEDO BANKS AIL TO OPEN TOLEDO, O., Aug. Toledo banks combined of more than $100,000,000 failed to open for business this morning, while eleven saving associations ceased payments of deposits during the present financial situation In the request of four the state department prepared to take over their affairs to conserve assets the face of previous steady withdrawals by depositors. City police and detectives. acting under orders of Police Chief Louis Haas, patroled the in preparation for any public emer Meanwhile there was pending meeting between Mayor W. son and Adjutant General Frank D Henderson, Columbus, commanding the Ohio national guard. Last night, Mayor conferred with Safety Director A. Black and Col. Golson D. Light commanding 148th infantry. Ohio national More than 100 rural bankers of Ohio who yesterday with State Superintendent of Banks Ira J. Fulton and Charles Saffin, torney for the department, had their assurance of cooperation by state authorities in meeting local Late Saturday, directors announced closing of the Commerce Guardian Trust and Savings Bank, The Ohio Savings Bank Trust company and the Commercial Savings Bank and Trust company. Yesterday, in the wake of these ancame from directors of the fourth institution, the Bank bank, that it would be forced to close also because its tied in two of the banks suspending operations.

10. August 18, 1931 The Times Hammond, IN

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$11,000,000 QUIETENS THE DEPOSITORS of from the Cleveland was credited today with confidence in stability of Toledo's four banks which were yesterby the closing of four brother Officials the four solvent banks advised depositors that anyone wanted his money could come and get The statement resulted in the of many withdrawn acexpression of the Federal bank sent 000,000 to the four banks late yesterday. Meanwhile staff of 60 state and federal examiners continued their task of liquidating the Ohio Savings Bank Trust company, the Commerce Guardian Trust and Savings company, the Commercial Savings Bank and Trust company and the American bank, which of approximately $100,000,000.

11. August 18, 1931 Hartford Courant Hartford, CT

Article from Hartford Courant, August 18, 1931

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Four Banks Suspend In Toledo, Ohio Action Taken to Protect Depositors- Believed Solvent Business Men Plan Aid Toledo, Ohio, Aug. 17 ledo business leaders and officials tonight took steps to case the local f1nancial situation resulting from the closing four large banks today. Methods of making funds available immediately to small depositors were discussed at a number of conferences of business men. County commissioners decided to ask common pleas judges to suspend foreclosure for year providing interest on loans is met. The commissioners also asked Governor George White to help in any way possible. County Treasurer Grant A. Northrup appealed to the state tax commission to ease the burden of taxpayers by an extension of the tax paying The downtown section was crowded all day by depositors and the merely curious who read the closing notices posted on the doors of the Commerce Guardian Trust and Savings Bank the Ohio Savings Bank Trust Company, the Commercial Savings Bank and Trust Company and the Bank The four banks have combined resources of $100,000,000 and deposits of around $80,000.000. Their closing today came at the expiration of the 60-days withdrawal notice which they posted when the Security- Home Trust Company closed two months ago. The closing notices were accompanied by announcement that the banks were believed solvent, but the action was taken protect depositors Officials of the American Bank and it would have met normal conditions but its reserves were tied up with two of the closed The First National Bank. the Toledo Trust Company, the SpitzerRorick Trust and Savings Bank and the West Toledo National remained open as usual as were the Morris Plan and Industrial banks, two special plan Six Nebraska Banks Close. Lincoln, Neb. Aug. -Six small Nebraska banks failed to open for business today. Governor Charles W. Bryan and E. H. Luikart secretary of the State Department of Trade and Commerce said the closing was the result of recent bank suspensions Omaha. The six banks had total deposits of approximately $1,180,000. Suspension In Akron, Ohio. Akron, Ohio, Aug Twelve building and loan associations of Akron and Cuyahoga Falls today served their depositors with notice of temporary suspension of withdrawals. The companies Involved carry deposits of $26,000,000. A. E. Albright secretary of the largest, today said "the step is taken for

12. August 18, 1931 The News-Herald Franklin, PA

Article from The News-Herald, August 18, 1931

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RESTORED BANKS OF Arrival of $11,000,000 From Cleveland Federal Reserve Eases Situation After 4 Close. $11,000,000 from the Cleveland eral Reserve Bank was credited today with restoring confidence in the stability Toledo's four banks which were with heavy runs yesterday by the closing of four brother Officials of the four solvent banks advised they were in cure position meet any demands and that every depositor who wanted his money could come and get it. The statement resulted the return many withdrawn accounts. Horton Rorick president of the Rorick Trust and Savings Bank, reported ceipt many new accounts with withdrawals exceeding deposits by only slight margin. Meanwhile staff of 60 state and six Federal examiners continued their mammoth task of liquidating the Savings Band and Trust Company, the Commerce Guardian Trust and ings the Commercial Savings Bank and Trust Company, and the American Bank. which with combined of approximately $100,000,000. Banks in Toledo's trade area were reported in good condition today.

13. August 27, 1931 The Plain Dealer Cleveland, OH

Article from The Plain Dealer, August 27, 1931

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WILBUR TO BE TOLEDO BANK CZAR State Superintendent Appoints Clevelander to Reorganize Finances. Rollin A. Wilbur of Cleveland long prominent in financial circles, is to take of the Toledo banking charge situation out of the closing growing recently three banks in that city, in an effort to extricate them from their Fulton. superintendent of banks of Ohio. yesterday named Wilbur as his deputy The was then given approval by Gov. George White and by the Federal Reserve Bank of Cleveland According to orders of Supt. Fulton Wilbur will immediately take of the Ohio Savings Bank charge Trust Co., the Commerce Guardian Trust Savings Bank and the Commercial Savings Bank & Trust Co. whose closing tied up total resources of around Under the orders appointing will immediately direct his attention to reorganization problems with the purpose of best results the circumthe stances will permit in the quickest possible time The Ohio law provides that member the department of the of intendent of banks cannot have any official connection with any bank under its supervision. Upon receiving the appointment the for ings and director of the Central United Bank, immediately sent in his resignation to the InstiWilbur is director of the Union Joint Stock Land Bank of Detroit and the New York Stock Land Bank he not required to relinquish do not come the class of bank. ing institutions affected by the inhibition clause 'My sole aim will be to untangle the situation and do my best to help ers concerned. Wilbur said Just what steps will be taken will not know until have had time to investigate Wilbur was pushed into the financial limelight as of the leading conservative minds of the financial world quote the expression of David Lawrence publisher of the United States Daily by his speech made as president of the Investment Bankers Association of America at the 1929 convention in Quebec. The speech was made about ten days before the crash came on the New York Stock Exchange It was taken as warning against the orgy of speculation borrowed money and was widely quoted after the crash. Wilbur born on farm near Wellington, O., and after graduation from high school worked in banks there. studying law in his spare time. He was admitted to the Ohio bar 1897. Coming to later he attended Reserve Law School, being graduated in 1900. and then attended Harvard Law School for two He was general counsel for the Utah Power Light Co. Salt Lake City, from 1913 to 1915. Then he returned to and as. sociated with Herrick James Parmelee and Parmely W. Herrick. He now vice president of Mitchell, Herrick & Co. Wilbur was chairman of the northern Ohio group of the Investment Bankers Association in 1924 and 1925 and served as a member of the board of governors in 1925-26 and as vice president from 1926 to 1928, when me was elected president of the national He a member of several leading clubs.

14. November 23, 1931 Evening Star Washington, DC

Article from Evening Star, November 23, 1931

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PROSPERITY PLAN WORKS IN TOLEDO Set-up Devised to Make Good All Deposits in Four Big Banks Which Closed. By the Associated Press. TOLEDO, Ohio, November 23.-Without waiting for a return of Nation-wide prosperity to give it a helping boost, this city, hard hit by a series of large bank failures, is pulling itself out of the mire "by its boot-straps." Although approximately $100,000,000 was tied up in the four big banks which closed several months ago, Toledo has kept the wheels of commerce running steadily, and 'now at last things are getting better. Factories are working faster and longer, retail trade is picking up, people on the streets are smiling again, and best of all-the closed banks are expecting to pay a hundred cents on the dollar. The initial dividends of 15 to 30 per cent are scheduled to be paid December 15. Ingenious Scheme Devised. The four large banks which closed, and their approximate deposits, were: Ohio Savings & Trust Co., $36,000,000; Commercial Savings Bank & Trust Co., $17,000,000; Security-Home Trust Co., $20,000,000, and the Commerce-Guardian Trust & Savings Bank, $18,000,000. An ingenious scheme was devised to cope with the problems of these closed institutions. Instead of selling their assets at "distress-sale" prices, special financial machinery is being set up to give the depositors all the ready cash possible, yet save them from the losses of a hasty liquidation. Under the salvaging plan, approved by the State banking department, a new bank and three holding companies are being organized to take over the Ohio, the Commercial and the Security-Home, December 15. Fourth to Be Reorganized. All available cash and prime securities are to be transferred that day to the new bank and credited pro-rata to the old despositors. The initial credit from the old banks will average 20 per cent. The rest of the assets will be deposited separately with the holding companies. The new bank is to be capitalized at not less than $2,500,000, of which half is to come voluntarily from the depositors themselves. The fourth bank, the Commerce-Guardian, will be reorganized under a new name, independently of the others. Its successor also will open December 15, and will put 30 per cent of each old deposit in new accounts.

15. December 18, 1931 The News-Messenger Fremont, OH

Article from The News-Messenger, December 18, 1931

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PAY DIVIDENDS FOR CHRISTMAS TOLEDO, Dec. the way for the distribution of $6,500,000 depositors of three closed Toledo banks before Christmas, Common Pleas Judge Martin today approved the plans for dividend payments arranged by banking officials, per cent dividend payment be made the Commercial Savings Bank Trust Company, and cent dividends paid by the Ohio Savings Bank Trust Company, the Home Trust Company, it anPayment of the dividends by the three closed banks, which recently abandoned plans for consolidating single institution because support from begin next