1777. Fidelity Title & Trust Company (Stamford, CT)

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: trust company
Start Date: July 16, 1903
Location: Stamford, Connecticut (41.053, -73.539)

Metadata

Model: gpt-5-mini
Short Digest: bc4efd1e

Response Measures

Accommodated withdrawals, Full suspension, Books examined

Other: Directors obtained a 90-day injunction (court order) with consent of state commissioners to restrain payments; action described as voluntary to stop run.

Description

Small-depositor run began mid-July 1903 after press disclosures linking the firm to the Interstate Trust Company. Directors (with consent of state commissioners) obtained a 90-day injunction (posted July 17, 1903) restraining payments to stop the run; officers stated the institution was solvent and intended to resume business.

Events (2)

1. July 16, 1903 Run

Cause: Rumor Or Misinformation
Cause Details: Run triggered by news/disclosures linking Fidelity Title & Trust to the Interstate Trust Company and ensuing public alarm; small depositors rushed to withdraw savings.
Measures: Enforced sixty-day rule for withdrawals over $100; paid out not more than $100 per account; directors sought court injunction to restrain payments.
Newspaper Excerpt: When the doors of the banking house opened this morning thirty persons... were waiting to withdraw deposits... The bank honored drafts for amounts less than $100. When larger sums were demanded the depositors were informed that the bank would require sixty days' notice...
Source: newspapers

2. July 17, 1903 Suspension

Cause: Government Action
Cause Details: Directors applied for and obtained a court injunction (with consent of state bank commissioners) restraining payouts for 90 days to prevent further withdrawals.
Newspaper Excerpt: An order granted by Judge Hall... enjoining the bank from paying out any of its funds within 90 days... The restraining order was obtained late last night... with the consent of the bank commissioners.
Source: newspapers

Newspaper Articles (9)

1. July 17, 1903 The Evening World New York, NY

Article from The Evening World, July 17, 1903

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IMBODEN SENDS WORD HE'S SICK. Says He Is Under Doctor's Care in Oklahoma, but Will Come East as Scon as Possible. Leonard B. Imboden, whose financial methods are under Investigation in New Jersey and Connecticut, has sent a telegram to J. P. Perrin, who has charge of his affairs in this city, that he is sick in bed In McAlester. Okla., but will start for New York just as soon as his doctors will permit, and then he will explain the questioned affairs of the Interstate Trust Company of Jersey City, which Is now in the charge of the Banking Department. The Connecticut Bank Commissioners have started an examination of the books of the Fidelity Title and Trust Company. of Stamford. which was mentioned by the Bank Commissioners of New Jersey as being involved with the Imboden concern in New Jersey. Prestdent Fesdlek Insists that the bank is solvent and that a mistake has been made in involving the Stamford company with the Interstate, or with Imboden. There is a run on the Fidelity. but in the savings department the sixty-day rule is being enforced. and not more than $100 is being paid out on any one account. On June 9 the company reported assets of $351,878.12.

2. July 17, 1903 New-York Tribune New York, NY

Article from New-York Tribune, July 17, 1903

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BANK INQUIRY IN STAMFORD Connecticut Commissioners Busy with the Affairs of a Trust Company. [BY TELEGRAPH TO THE TRIBUNE.] Stamford, Conn., July 16.-Charles H. Noble, of New-Milford, and George F. Kendell, of Suffield, State Bank Commissioners, came here to-day with an accountant for the purpose of investigating the affairs of the Fidelity Title and Trust Company. The commissioners have not made public a statement, and it is 1 nderstood the investigation has not been completed. The directors of the bank company were in session this afternoon for several hours. President Robert A. Fosdick declined to make any statement. When the doors of the banking house opened this morning thirty persons, all but ore of whom were women, were waiting to withdraw deposits. Others came throughout the day. The bank honored drafts for amounts less than $100. When larger sums were demanded the depositors were informed that the bank would require sixty days' notice, taking advantage of a clause in the bylaws. A large number of small deposits were lately made in the savings department. Depositors were each given a little steel bank, with a clock on its front. The company. it is alleged. is connected with the Interstate Trust Company, against which charges have been made by the New-Jersey Banking Commissioner.

3. July 17, 1903 The Providence News Providence, RI

Article from The Providence News, July 17, 1903

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TRUST CO. ENJOINED. Court Order Secured to Prevent Run on a Stamford Institution. Stamford, Conn., July 17.-Posted in a conspicuous position on the banking house of the Fidelity Title and Trust company today is a copy of an order granted by Judge Hall of the superior court, enjoining the bank from paying out any of its funds within 90 days, or until such time as the court may further direct. The order was granted at the request of the directors of the company, whose affairs were yesterday examined into by the state banking commission because of its connection with the Interstate Trust company, now under investigation in New Jersey. Up to this time the bank commissioners have made no statement but t heir formal report will be given to the public shortly. Officials of the Fidelity company today said that the bank had been found by the commissioners to be solvent and the directors had requsted the order of Judge Hall in order to prevent a run on the bank by small depositors. The directors hope to have matters straightened out soon and to have the bank resume business within the time named in the order. The news of the examination of the bank's affairs by the state commission reached the outlying districts last night. This morning at the usual hour for the opening of the doors quite a number of rural depositors were on hand in order to withdraw their savings, but when they were confronted with the court order they returned to their homes.

4. July 17, 1903 Alexandria Gazette Alexandria, VA

Article from Alexandria Gazette, July 17, 1903

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Lansburgh & Bro., 420 to 426 Seventh Street, WASHINGTON, D. C. TELEGRAPHIC BREVITIES. The report sent broadcast last night that Abner McKinley, brother of the late President, has been stricken with paralysis and that his condition is alarming, is without foundation. During the absence of their parents at Mahanoy City Pa., today, Mary and George Chulskey, aged 5 and 6, respectively played |with matches. The boy accidentally set fire to his sister's cloth.ing, and she was burned to death. Hazel Chapman, residing two miles east of Whitehall. N. Y., was assaulted by a mulatto Thursday morning while picking berries near her home. The girl is not quite 16 years old. The culprit, who gave the name of Peter Gillette, was captured. At a preliminary examination Gillette pleaded guilty. Owing to the sentiment of the people, the prisoner was taken to the Salem jail. In the banking house of the Fidelity Title and Trust Company, at Stamtord, Conn., today was posted a copy of an order issued by Judge Hall, of the Superior Court, granting upon application of the directors of the company, restraining it from paying out any of its funds for ninety days. It has been reported that the company was associated with the Interstate Trust Company. The order was issued that the bank might avoid a run and have time to arrange its affairs. Charles M. Schwab, president of the billion dollar United States Steel Corporation, whose presence in Philadelphia has been an open secret since last Monday, will leave tomorrow. His private car will be attached to the Western Express. By tomorrow evening he will be at Cresson, from whence Mr. Schwab will drive to his summer residence in the mountains at Loretto. No one was allowed to see him tc. day. A change of plan was made today' and Mr. Schwab and Dr. Adolph Stenzel left on a regular train, presumably for New York. Cardinal Gibbons arrived in Paris at 11:30 this morning and went to the Seminary of Saint Sulpice. He has decided to remain there until he receives news of the Pope's death. A reconciliation has been effected between Mrs. Vanderbilt, Sr., and her son and daughter-in-law, Mrs. and Mrs. Cornelius Vanderbilt.

5. July 17, 1903 The Sun New York, NY

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BANK EXAMINERSATSTAMFORD FIDELITY TITLE AND TRUST co. CONTINUES TO DO BUSINESS. Considerable Withdrawal of Deposits From Its Savings Department-Statement of Assets-Mr. Arbecam Says the Interstate Trust Co. Has Not quit. STAMFORD, Conn., July 16.-The Connecticut Bank Commissioners. who are Charles H. Noble of New Milford and George F. Kendall of Suffield. came to Stamford to-day and took hold of the affairs of the Fidelity Title and Trust Company. The bank continued to do business up to the closing hour, notwithstanding a heavy run on the savings bank department, made by small depositors, and so far as appears to-night will be running to-morrow. The State Commissioners were at work on the books from 11 o'clock this morning until after 6 to-night, but will give out no statement of the condition of the company until they have finished their work. President Robert A. Fosdick and other directors who could be reached, declined to discuss the affairs of the company. Mr. Fosdick said the directors were satisfied with the statement he made yesterday. The bank paid out to-day not more than $100 on any one account. enforcing the sixty-day rule as to larger amounts. Many depositors brought the miniature banks, of which the company holds the keys, and had their deposits extracted for them. There were not a large number of local deposits in the bank of any size, save from the shareholders. There were a great many small deposits of from $10 to $75 in the savings department. On June 9 the company reported assets of $351,878.12. including these items: Loans and discounts. $63,208.54 stocks and securities, $66,355.50; due from approved reserve agents. $39,559.17: due from other banks, bankers and trust companies. $152,477.57; United States and national bank notes. $7,484. The general deposits were $148,283.03. and the deposits in the savings department, $70,115.41. President Fosdick had a conference today with George H. Hoyt, president of the Stamford Savings Bank. which is willing to take over some of the mortgages and other securities of the Fidelity Company. There seems to be some difference of opinion between John Banigan of Providence. R. I., and Burtis L. Arbecam. formerly of Brookline, Mass., and now of New Jersey, as to whether or not the Interstate Trust Company is a going concern. Mr. Banigan is the man of money in the Banden Company of Providence, which, according to those who should know, owns the Interstate Trust Company. Mr. Arbecam is a director and used to be the treasurer of the trust company. In Providence on Wednesday Mr. Banigan said that the Interstate company, by a vote of its board of directors on Tuesday, went out of business, after paying all it owed. Inasmuch as the New Jersey Banking Department announced on Wednesday that it had taken possession of the trust company, Mr. Banigan's statement seemed to be reasonable. But Mr. Arbecam. sitting in the office of the company, at 25 Pine street, yesterday afternoon, stated very positively that the company had not gone out of business. He said that Mr. Banigan was mistaken and that the company would proceed to the transaction of the ordinary and usual business of the ordinary and usual trust company SO soon as it could make the necessary arrangements. Mr. Arbecam, in 1883, or thereabout. was employed in the Maverick Bank, Boston, which had such a disastrous failure in 1891. About 1884 he became the treasurer of the newly organized American

6. July 17, 1903 The Providence News Providence, RI

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WORKING ON BOOKS. Bank Commissioner Examines Affairs of Fidelity Title and Trust Company. Stamford, Conn., July 17.-The Connecticut Bank commissioners, who are Charles H. Noble of New Milford and George F. Kendall of Suffield, came to Stamford yesterday and took hold of the affairs of the Fidelity Title and Trust company. The bank continued to do business up to the closing hour, notwithstanding a heavy run on the savings bank end made by small depositors, and so far as appears tonight will be running tomorrow. The state commissioners were at work on the books from 11 o'clock yesterday morning until after 6 o'clock last night, but gave out no statement of the condition of the company. President Robert A. Fosdick and other directors who could be reached, declined to discuss the affairs of the company. Mr. Fosdick said the directors were satisfied with the statement he made yesterday. The bank paid out today not more than $100 on any one account. enforcing the 16-day rule as to larger amounts. Many depositors brought the miniature banks the company holds the keys of and had their deposits extracted for them. There were not a. large number of local deposits in the bank of any size, save from the shareholders. There were a great many small deposits of from $10 to $75 in the savings department. On June 9 the company reported assets of $351, 878.12, including these items: Loans and discounts, $65,206.54; stocks and securities, $66,355.56; due from approved reserve agents, $39,559.17: due from other banks, bankers and trust compantes, $252,477.57; United States and national bank notes, $7,484. The general deposits were $148,283.03 and the deposits in the savings department $70,115.41. President Fosdick had a conference today with George H. Hoyt, president of the Stamford Savings bank, which is willing to take over the mortgages and other securities of the Fidelity company

7. July 18, 1903 New-York Tribune New York, NY

Article from New-York Tribune, July 18, 1903

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RUN ON THE BANK CHECKED. Trust Company in Stamford Enjoined from Paying Out Funds for Ninety Days. for TELEGRAPH TO THE TRIBUNE.) Stamford, Conn., July 17.-The Fidelity Title and Trust Company kept its banking house open to-day. but the main business transacted was in the explanation department. The run, which had been in progress for two days, seemed likely to be continued to-day, as a large number of depositors from outlying districts were present when the doors were opened. The bank's officers had anticipated them by securing an injunction from Judge F. B. Hall. of the Superior Court, which prohibits the company paying out any of its funds for ninety days except such as are needed for ordinary running expenses. A copy of the order was posted in the bank. It was applied for by the directors after consultation with the State Bank Commissioners, who are quoted by officers of the company as saying they found the institution solvent. Robert A. Fostick, president of the trust company. said this evening that the company has no intention of discontinuing business and that the Injunction would probably be dissolved before the ninety days expired. The directors, he said, deemed it expedient yesterday to take advantage of the rule requiring sixty days' notice of withdrawal of $100 and upward from the savings department. He said: As it did not seem just to our savings depositors to continue to meet current demands against check accounts and require sixty days' notice for withdrawal of savings accounts, and in order to preserve the assets and protect the depositors, the directors obtained the injunction. This action was voluntary and with the approval of the Bank Commissioners.

8. July 18, 1903 The Washington Times Washington, DC

Article from The Washington Times, July 18, 1903

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INJUNCTION STOPS RUN ON A STAMFORD BANK Fidelity and Trust Institution Meets Depositors With Court Order. STAMFORD, Conn., July 18.-By an injunction issued by Judge Hall, of the supreme court, the run on the Fidelity and Trust Company, which started Thursday, because of disclosures in regard to the operations of the Interstate Trust Company, has been stopped. New York depositors were on hand when the bank opened yesterday morning. They found the order of the court posted in the bank, and no funds could be withdrawn. The order was issued Thursday night, on application of the directors of the company. It enjoins the concern and its officers from paying out any funds for ninety days, except for running expenses. Officers of the company declare that the institution is solvent, and add that if this were not the case they would have taken steps at once to close. Mr. Robert A. Fosdyet, president of the company, says: "There is no reasonable doubt that every depositor in this institution has ample security for his funds, more than sufficient to pay the same. The company has no intention of discontinuing business."

9. July 18, 1903 The Sun New York, NY

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COURT AIDS STAMFORD BANK. HOLDS UP FIDELITY TITLE AND TRUST CO. PAYMENTS. Orders Withdrawing Depositors to Wait 90 Days-Directors Got Injunction, Bank Examiners Consenting-Rush of Country Doubters Headed Off. STAMFORD, Conn., July 17.-The Fidelity Title and Trust Company was open to-day as usual. but it did no business because the Superior Court had issued an order restraining the company from paying any funds to depositors, and there were no customers wishing to make deposits The State Bank Commissioners, who made an official examination of the company's books yesterday. did not make any formal report. but did not issue a closing order: The Connecticut Commissioners have aushority to close any bank if they consider it a proper course. They have so far refrained from taking action. The restraining order was obtained late last night from Judge E. F. B. Hall of Bridgeport, and was issued on the application of the directors with the consent of the bank commissioners. The order was posted this morning in the bank before the doors were opened. In part it ran: Whereas it IS found that to protect the depositors of the Fidelity Title and Trust Company an order should be made and issued to the Fidelity Title and Trust Company for the period of ninety days commencing on the 17th day of July, 1903, from paying out to any depositors its funds or any portion thereof, therefore it is ordered that the Fidelity Title and Trust Company. its officers, agents and servants, be, and they hereby are, restrained. enjoined and prohibited for the period of ninety days, commencing on July 17. 1903, from paying out its funds, or any portion thereof, to any depositors or for any purpose except for the legitimate official and running expenses of said Fidelity Title and Trust Company, unless this order shall, during such period of ninety days. be modified or revoked. The order had the effect of checking the run on the bank, which has been in progress since Wednesday afternoon Many depositors in the savings department, who live in the country, had not heard of the bank's difficulties until last night and they came this morning to withdraw their deposits. They were confronted with the court order and a lot of explaining had to be done for them. A. Leland Brown, the treasurer, was kept busy all morning assuring doubters that the company would pay all its accounts in time. To-night this statement was given out by President Robert A. Fosdick: Owing to the statements published in the New York papers concerning this company, a run on the bank has been in progress during the last two days The directors deemed it expedient yesterday to take advantage of the rule requiring sixty days' notice of withdrawal of $100 and upward from its savings department. As it did not seem right or just to our savings depositors to continue to meet current demands against check accounts and require sixty days' notice in the case of withdrawal of savings accounts, and in order to preserve the assets and protect the depositors in their interests. the directors have obtained an injunction temporarily restraining the company from paying out any funds. There is no reasonable doubt that every depositor in this institution has ample security for his funds in our custody, more than sufficient to pay the same. The company has no intention of discontinuing business, and webelieve it will be only a short time before the injunction can be safely removed. The action of the directors in this matter has been entirely voluntary, and has been taken after an examination of the bank by and conference with the Bank