Security Trust Company - Harrisburg, PA

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust company
Start Date: October 26, 1931
Location: Harrisburg, Pennsylvania (40.276, -76.885)

Metadata

Model: gpt-5-mini
Short Digest: 5e90f2bf

Response Measures

None

Description

Newspaper accounts (Oct–Nov 1931) report the Security Trust Company of Harrisburg was taken over by the state banking department and subsequently in receivership/liquidation. Articles state the bank had closed and stopped interest payments and receivers are handling claims. No explicit discrete depositor run triggering the closing is described; takeover by banking department indicates government action suspension leading to closure/receivership.

Events (4)

1. October 26, 1931 Receivership

Newspaper Excerpt: present their claims to the receivers their respective banks...letters to the certificate holders...preserve the status claims...in case pending in Philadelphia, the relation the bank and the certificate holders no more than debtor and creditor
Source: newspapers

2. October 26, 1931 Suspension

Cause: Government Action
Cause Details: State banking department took over the Security Trust Company (banking department takeover/closure).
Newspaper Excerpt: Pa., Oct 26 banking department totook over Security Trust Company of Harrisburg
Source: newspapers

3. November 12, 1931 Other

Newspaper Excerpt: At the Security Trust Company was explained that there, too, these accounts were kept separately but that no interest money has been paid out since the bank closed because the due dates are January, April, July October At the was said the mortgages are pooled. No interest payments have yet been made.
Source: newspapers

4. November 28, 1931 Other

Newspaper Excerpt: Steps were taken today to safeguard further the claims of some 1600 persons who invested their savings in guaranteed mortgage participation certificates issued the closed Security and mercial Trust companies...present their claims to the receivers their respective banks.
Source: newspapers

Newspaper Articles (3)

1. October 27, 1931 The Indianapolis Star Indianapolis, IN

Article from The Indianapolis Star, October 27, 1931

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Article Text

FRANKLIN IS ELECTED PRESIDENT OF WABASH NEW YORK Oct. S. his railroad career as platform for of the and its The major part of railroad service been the vania. time his election the vice of of ceed H. as the upon in Ivania intend close with Review Court 48.8 of the and has asked the Circuit Court als review interstate com order directing While was the Ivania of of Mr. caused Wall wonder = a street to change COTTON MARKET. was today under realizing buyers of late last January contracts to with general closing hedging and stocks Futures. cotton futures January December Range at SUGAR AND COFFEE. NEW YORK and METAL MARKETS. CHICAGO POTATOES. United WALKERTON BANK FAILS. BEND. Ind Oct Walkerten to open notice was closed by the state department protect Joseph county the Runs on period of several led to the closing The bank of Walkerton closed FOUR FAIL IN MISSOURI. Oct. open The Bank with total $467,677 and reclosed heavy withdra son closing bank of Liberty with sources of and the Bank with $77 192 The closings leave of without banking Pa., Oct 26 banking department totook over Security Trust Company of Harrisburg At its the bank listed total sources of deposits, 673, surplus, YORK

2. November 12, 1931 The Evening News Harrisburg, PA

Article from The Evening News, November 12, 1931

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Article Text

Bank Receiver Pays Interest Bonds on Interest due this payments month to the holders of mortgage bonds mortgage bond certificates issued by the Mechanics Trust Company were paid this week by W. Frank Witman, receiver of the Mechanics. It was explained at the bank that these mortgages were kept in separate trust funds, independent the regular banking business and that the interest money is paid as to the bank by the persons who gave the mortgages, the receiver turning over the holders the bonds of the participating certificates. Thus none of the bank money is being used to pay the interest to the mortgage bond holders. At the Security Trust Company was explained that there, too, these accounts were kept separately but that no interest money has been paid out since the bank closed because the due dates are January, April, July October At the was said the mortgages are pooled. No interest payments have yet been made.

3. November 28, 1931 The Evening News Harrisburg, PA

Article from The Evening News, November 28, 1931

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Article Text

Steps were taken today to safeguard further the claims of some 1600 persons who invested their savings in guaranteed mortgage participation certificates issued the closed Security and mercial Trust companies. Mark Milnor. special counsel in the bank liquidations letter to the certificate holders them present their claims to the receivers their respective banks. Each letter is to be accompanied form on which the certificate holders can stipulate in detail the value. nature the securities they hold. Filling out and filing them with the bank to their claims. This procedure compares with the way the regular depositors are presenting their claims and is urged by Milnor to preserve the status claims of the certificate holders in case the courts should decide, in case pending in Philadelphia, the relation the bank and the certificate holders no more than debtor and creditor and that claims under these certificates do not take preference over the claims common bank depositors. In the Philadelphia case the action was by the certificate holders who the court to say bank trustee for and that their claims are in the same preferred class as funds held in trust the bank. Creditors of the local banks are granted thirty days in which pretheir claims after they have been formal notice from the bank receive Certificate holders abide the notice within thirty days not run any risk of their claim against the bank being outlawed no matter the courts decide the pending case, Milnor said. It estimated that the Commercial Trust had issued approximately $400,000 worth of mortgage certificates Security about $500,000 and the Mechanics about $700,000. These cermortgages which the banks hold on real estate. As the property ownpaid the interest to the banks. the banks turn gave over the certificate less of one per cent. commission.