19598. Chester County Trust Company (West Chester, PA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
February 13, 1933
Location
West Chester, Pennsylvania (39.961, -75.605)

Metadata

Model
gpt-5-mini
Short Digest
4e0994a4

Response Measures

None

Description

Articles report the Chester County Trust Company closed in Feb 1933 and was placed in the hands of banking authorities; federal district court appointed receivers in Aug 1933 and the bank remained under receivership with appellate litigation through 1934. There is mention of depositor uneasiness but no clear contemporaneous run; classification is a suspension (closure) with subsequent receivership.

Events (4)
1. February 13, 1933 Suspension
Cause
Government Action
Cause Details
Bank announced closed and affairs placed in hands of the State Banking Department (state intervention/closing).
Newspaper Excerpt
WEST CHESTER, Feb. 13. Announcing the Chester County Trust Company not ... placed in the hands ... State Banking department. Raymond Scott, president ... caused uneasi[ness] among our depositors.
Source
newspapers
2. August 1, 1933* Receivership
Newspaper Excerpt
The first inventory of the closed Chester County Trust Company has been made public by Robert Funkhouser, receiver. ... As of Feb. 11 last, the inventory showed assets ... liabilities ... (Aug. 23, 1933 article).
Source
newspapers
3. January 5, 1934 Other
Newspaper Excerpt
The State Banking Department challenged the authority Federal district courts to appoint the ... receivers in the Chester County Trust Co., at West Chester ... The Circuit Court took the case under advisement.
Source
newspapers
4. September 29, 1934 Other
Newspaper Excerpt
In upholding the right of the Federal District Court appoint receivers for ... in the Chester County Trust Company of West Chester, the court of appeals denied the claim of the Banking Department ... The opinion sustained the appointment of four receivers by Federal Judge George A. Welsh in Aug 1933.
Source
newspapers

Newspaper Articles (4)
1. February 14, 1933 Bristol Herald Courier Bristol, TN
Article from Bristol Herald Courier, February 14, 1933

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Article Text

STRIKE INTERESTS CHICAGO, today interested new cause, help for striking workat the Briggs Manufacturing Company plant The attorney met with delegation from Detroit ing the day and promised his aid proposed investigation strike. number workers there have been arrested for disturbing the peace. hopes that an investigation can be started, Darrow told the delegation ask federal, state and city Detroit an quiry into wages and working ditions. BANK CLOSES per cent. Thereafter the DemWEST CHESTER, Feb. 13. ocrats with large (AP) Announcing the Chester both can the necesCounty Trust Company not cut. ones up for open and reelection excuse fairs would be placed in the hands veterans the ground that they State Banking department. were bound by the action the Raymond Scott, president of the the stirring public tion of Finance thought which on for Corporation loans "caused uneasiweeks, the choice between ness among our depositors.' Innovations government. In its last statement at the One to give the president December called "dictathe bank would great very $3,168,383 and deposits choice direction strengthening

2. August 23, 1933 The News Journal Wilmington, DE
Article from The News Journal, August 23, 1933

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Article Text

SALVATION ARMY PUTS BANK'S RECEIVER ITSELF UNDER NRA LISTS INVENTORY NEW YORK, Aug. 23 (AP)-The Salvation Army has put itself under the wing of the blue cagle. Evangeline Booth. calling the NRA "worthy and ingenious' movement, announced last night that the army's paid employes have been placed under the provisions of the President's re-employment agreement. WEST CHESTER, Aug. 23.-The first inventory of the closed Chester County Trust Company has been made public by Robert Funkhouser. receiver. As of Feb. 11. last, the inventory showed assets of $2,853,068. appraised at a value of $1,604,472, and liabilities of $2,268,359 Under the heading of liabilities. demand deposits were listed at $433,744 and time deposits totaled $944.263. Principal items in the assets were reported as: secured loans. $891,408, and mortgages, $587,329.

3. January 5, 1934 The Philadelphia Inquirer Philadelphia, PA
Article from The Philadelphia Inquirer, January 5, 1934

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Article Text

STATE ASKS OUSTER OF BANK RECEIVERS An important precedent, covering receiverships in the affairs of closed building and loan associations and State banks, in the making in the Circuit Court of Appeals here The State Banking Department challenged the authority Federal district courts to appoint the petition stock and certificate holders residing outside the Commonwealth the specific test case, the Banking asking the removal of four last District Judge George Welsh for the two mortpools the closed gage Chester County Trust Co., at West Chester To sustain such receiverships, Attorney General William Schnader told the Circuit Court Appeals, make the State liquidation laws worthless. would.' he "permit the United States Court to wrest from State the assets of any State bank trust company having depositor other creditors living in another State similar situation exists building and loan associations, he He the ouster of former United States Attorney Edward Richard John M. and Louis Breitinger the receivers named by Judge Welsh The Circuit Court took the case under advisement.

4. September 29, 1934 The Evening News Harrisburg, PA
Article from The Evening News, September 29, 1934

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Article Text

COURT SUSTAINS BANK RECEIVERS International News Service PHILADELPHIA, Sept. 29.-In far-reaching decision, the United fected at the Courthouse Tuesday States Circuit Court of Appeals today had sharp buke to Dr. William D. Gordon, State Secretary of Banking. In upholding the right of the Federal District Court appoint receivers for the $4,643,640.92 con- tained in two mortgage pools in the Chester County Trust Company of West Chester, the court of appeals denied the claim of the Banking Department to "absolute and control" over the affairs of state The opinion, sustaining the pointment of four receivers by Federal Judge George A. Welsh in Au1933, was written by Judge Warren Davis In the ruling. the jurist commented that the State Department of Banking itself "violated" Ivania statute which requires the Secretary of Banking to move promptly for appointment by the State courts of "substitute trustees" for mortgage pools when the institution acting in that capacity has ceased business The jurist declared that Doctor Gordon not only failed to do this "but did nothing and continued to hold the funds in violation of the statute. The opinion also points out that "mortgage pools." are not assets of a bank acting as trustee, and therefore cannot be liquidated with its assets.