Franklin Trust Company (Philadelphia, PA)

Episode Information

Episode Type
Run → Suspension → Closure
Start Date
October 1, 1931*
Location
Philadelphia, Pennsylvania (39.952, -75.164)
Bank Type
trust
Routing Number
3-0100

Metadata

Notes

The articles discuss the criminal trial of bank officials and liquidation proceedings following the bank's closure in October 1931.

Events (3)

1. October 1, 1931* Run
Cause
Bank Specific Adverse Info
Cause Details
The bank was experiencing a run while officials were allegedly using bank funds to protect personal stock holdings.
Measures
President Harris claimed to have put up $45,000 of his own money to meet the run.
Newspaper Excerpt
Harris on witness stand tried philanthropic by handing $45,000 run on the bank.
Source
newspapers
2. October 5, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Insolvency and mismanagement involving stock speculation by bank officials.
Newspaper Excerpt
The bank closed its doors on October 5, 1931
Source
newspapers
3. July 31, 1935 Receivership
Newspaper Excerpt
H. Collin Minton, New Jersey receiver for the Franklin Trust Company, of Philadelphia
Source
newspapers

Newspaper Articles (3)

Article Text

ASKS JURY CONVICT BANK OFFICIALS Prosecutor Likens 3 of Franklin Trust Company to Except for the charge to the jury, which Room 646, Hall the trial three the Franklin Trust Company closed last night with Assistant Attorney Gratz for their conviction on charges of Tomorrow the jury of 10 and women will face the ing sented the deciding the officers are and funds merely mistakes The the case vehemently the defendants lawyer after Grate spoke for Belittles William Gray chief of defense an address belittled and Assistant District Attorney youthful the prosecution had failed to intent defraud Francis Bracken, attorney for ident of the bank, after the jury He easy had look backward develop foresight, but and then that mistakes ment should not be classified crimes. Bryan A Hermes spoke on behalf third Arthur B. Daupresident session of the trial Gratz made his final "There mind quotafourth act from 'So full artless in Hamlet, guilt spills in fearousy be said Gratz in ing phasizing the secrecy and deception of the defendants when formsyndicate to deal in stock of their bank. The bank closed its doors on October defendants were so ous and zealous acts from that they an that spilled document evidence reeks the of their guilt," conGratz. Demands Guilty Verdict "This jury cannot possibly find other under the evidence. We maintain that the Commonwealth has more than provthe burden its case against these men. have completed the mosale about which told you the start have fitted every piece in the jigsaw puzzle till complete picture stark ask you to find these defendguilty prosecutor attributed the closing the the which blinded of three officers blinded them to their sense "They used money the bank keep up stock prices protect their personal holdings," he Paid $75,000 Year "If the bank had closed in 1929 when was Harris would have made $150,000 salary alone ($75,000 year was his and there much the President of making the so well to run things Yes, very yet own and left the bank holding the bag the president and vice president speculating brokerage houses on money Harris on witness stand tried philanthropic by handing $45,000 run on the bank. you he put up single cent these records defense seems be these men lost everything in the bank. Defense "Preposterous" "Quite sympathetic, but you the bank and takes cash He and spends on the races goes something and brought the bar justice asks quittal because he is broke. That preposterous. The case for the defense wound up by Gray One black book in which ords of the When this Dauphinee that the but during the trial the book peared. letter from the Banking partment to sented of the but did not brand


Article Text

Show Cause Order is Issued Against Penna. Financial Authorities MILLIONS AT STAKE Trenton, July 31.—On application of John J. Stamler, counsel for H. Collin Minton, New Jersey receiver for the Franklin Trust Company, of Philadelphia, Vice Chancellor Malcolm G. Buchanan has signed an order for the Pennsylvania banking authorities to show cause before him next Tuesday why all records of New Jersey assets, debts and creditors of the trust company should not be turned over to Minton. It is understood the assets in this state total over $4,000,000 and that $3,000,000 of this is represented by a mortgage on the Chelsea hotel, Atlantic City. The proceedings are part of the suit of Edmund Goerke, of Elizabeth, against the closed financial institution. He is a creditor. Minton set forth in the application for the order that there are mortgages and real estate in the name of the trust company in both Atlantic and Camden counties and he believes also in Ocean county. Under Dr. Harr The closed bank is under the Secretary of Banking for Pennsylvania, Luther A. Harr, and the application of the New Jersey receiver said that John J. Sullivan, of Philadelphia, is in charge of the liquidation for Dr. Harr. The latter is represented by Myer L. Sakin, Camden attorney, it was stated. Minton's application stated he had exhausted his efforts to get the records which he needs for the proper administration of the interests of the trust company in this state, without obtaining the desired information.


Article Text

Bank Receiver's Plea Considered Senator Moore Figures As Counsel for Pennsylvania Commissioner Vice Chancellor Buchanan this afternoon took under advisement the request of Counselor Henry Collin Minton, Jr., of this city, that all records of New Jersey assets, debts and creditors of the Franklin Trust Company, Philadelphia, be turned over to him. Minton is receiver in this State for the institution. The application was opposed by United States Senator A. Harry Moore, representing Dr. Luther A. Harr, Pennsylvania banking secretary, who is in charge of liquidating the Franklin company. Vice Chancellor Buchanan also took under advisement until next Tuesday Senator Moore's application that Minton be restrained from acting as receiver pending an appeal before the Court of Errors and Appeals from the Vice Chancellor's appointment of Minton as receiver.