Security Trust Company

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust company
Start Date: April 27, 1922
Location: Hilo, Hawaii (19.722, -155.087)

Metadata

Model: gpt-5-mini
Short Digest: c984f9e5

Response Measures

None

Description

Territorial Treasurer Lewis took over the Commercial Trust Company April 27, 1922, petitioning for a receiver because of impaired capital and inadequate resources (losses from Kauai branch). No run is described; a receiver was sought, so the bank was effectively closed by government action and placed in receivership.

Events (2)

1. April 27, 1922 Receivership

Newspaper Excerpt: Through Attorney General Harry Irwin he petitions for the appointment of the Waterhouse Trust Company as receivers for the institutions. ... That trust company was named as receiver for the two Hilo concerns.
Source: newspapers

2. April 27, 1922 Suspension

Cause: Government Action
Cause Details: Taken over by Territorial Treasurer due to impaired capital and inadequate resources, heavy losses from Kauai branch.
Newspaper Excerpt: Territorial Treasurer Lewis today took over the affairs of the Hawaii Bank of Commerce and its allied concern, the Commercial Trust Company ... His action resulted from impairment of the capital and inadequate resources of the institutions.
Source: newspapers

Newspaper Articles (1)

1. April 28, 1922 The Maui News Wailuku, HI

Article from The Maui News, April 28, 1922

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Article Text

Bank, Trust Co. and Branch Bank Taken Over by Territory (ASSOCIATED PRESS) HONOLULU, April 27-Territorial Treasurer Lewis today took over the affairs of the Hawaii Bank of Commerce and its allied concern, the Commercial Trust Company, both promoted originally by the same interests that were identified by the People's Bank and the Security Trust Company of Hilo which went into the hands over a receiver several weeks since. His action resulted from impairment of the capital and inadequate resources of the institutions. Through Attorney General Harry Irwin he petitions for the appointment of the Waterhouse Trust Company as receivers for the institutions. That trust company was named as receiver for the two Hilo concerns. The Bank of Kauai branch was also ordered closed by Treasurer Lewis in a wireless message. Imparement of the capital amounts to about $2.50 a share, the par value of which is $20 and totals about $25,000. Bank officials said that the difficulties are due in a large measure to the burden of carrying the Kauai branch which was taken over with the formation of the Honolulu concerns. That branch has lost $40,000, officials said. Lewis states that the officials of the two institutions have been endeavor ing for some time past to effect a reorganization and to secure working capital and that every opportunity would be given them with the assistance of the receiver to carry out such plans. D. E. Metzger, former territorial treasurer, is president of both institutions which opened their doors for business on January 3, last. They are capitalized at $200,000 of which $100,000 has been paid in. It is considered unlikely that the depositors will lose anything. In Maui banking circles the news of the taking over of the two institutions occasioned no surprise. Something of the nature has been expected ever since the closing of the Hilo institutions. World financial conditions operated against the success of new banking ventures at the time the two institutions were opened and since and the former connection of the concerns with the Hilo interests involved in the bank failures there added further to difficulties that were encountered. Neither of the local banks have been in any way affected by the troubles of the Hilo or Honolulu banking concerns.