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ST. PAUL BANK CLOSES ITS DOORS (By United Press)
ST. PAUL, May 3.—The Capital Trust & Savings Bank, one of the largest in St. Paul, with $5,000,000 deposits, closed its doors today.
The closing came after a practically all night session of the directors and officers with A. J. Veigel, state superintendent of banks. The difficulties, Veigel said, are due to frozen assets, in the form of North Dakota and Montana paper, which cannot now be liquidated.
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One of St. Paul’s Largest Trust Companies Closes
St. Paul, Minn., May 3.—The Capital Trust and Savings bank, one of the largest in St. Paul, with $5,000,000 deposits, closed its doors today.
The closing came after a practically all night session of the directors and officers with A. J. Veigel, state superintendent of banks.
The difficulties, Veigel said, are due to frozen assets, in form of North Dakota and Montana paper, which cannot now be liquidated.
The bank has a capital stock of $500,000 and is operated in connection with the Capital National bank. The national institution, it is said, is not affected by the closing.
Reports were that other St. Paul banks and the clearing house association, will come to the aid of the Capital Trust and Savings bank. J. L. Mitchell is president of the bank. It was organized December 16, 1890.
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DROP IN LAND VALUES HITS ST. PAUL BANK
Institution With Deposits of Five Million Closed Because of "Frozen Assets"; Merger of Two Largest Banks In City to Follow; Heavy Run Follows the Failure
St. Paul, May 3.—Two of the larger banks in St. Paul may be merged as a result of the closing of the Capital Trust and Savings bank of St. Paul today by J. Veigel, state superintendent of banks. The report of the merger emanated from a meeting of the leading bankers of the city tonight.
The Capital Trust had a capital of $500,000 and deposits of $5,000,000. It was ordered closed because of "frozen assets" in the form of North Dakota and Montana mortgages, Mr. Veigel said.
Closing of the bank caused a run on the Capital National bank which is in the same building. There is no direct financial connection between the two institutions. When the Capital National closed after its regular business today there was a long line of depositors waiting to withdraw their savings. It is not thought the run will affect that institution as officials announced tonight they would continue to do business as usual next week.
A statement issued by J. L. Mitchell, president of the Capital Trust bank said "that because of the general depression in land values it has been impossible to make collections on these mortgages.
"A large number of foreclosures has been necessary with the result that the bank has acquired a large amount of land which is a frozen asset at the present time.
"If the bank could dispose of these assets for close to the normal value it would be able to pay its liabilities in full."
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PAUL BANKS MAY CONSOLIDATE Merger May Result From Collapse of Capital Trust-Frozen Assets Blamed for Crash. ST. PAUL, May 3.-Two of the larger banks in St. Paul may be merged as a result of the closing of the Capital Trust and Savings Bank of St. Paul today by J. Veigel, state superintendent of banks. The report of the merger emanated from a meeting of the leading bankers of the city tonight. The Capital Trust had a capital of $500,000 and deposits of $5,000,000. It was ordered closed because of "frozen assets in the form of North Dakota and Montana mortgages, Mr. Veigel said Closing of the bank caused à run on the Capital National Bank, which is in the same building. There is no direct financial connection between the two institutions. When the Capital National closed after its regular business today there was a long line of depositors waiting to withdraw their savings. It is not thought the run will affect that institution, as officials announced tonight they would continue to do business as usual next week. General Depression Blamed. A statement issued by J. L. Mitchell, president of the Capital Trust Bank, said that "because of the general depression in land values it has been impossible to make collections on these mortgages." "A large number of foreclosures has been necessary with the result that the bank has acquired a large amount of land which is a frozen asset at the present time. "If the bank could dispose of these assets for close to normal value it would be able to pay its liabilities in full.
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CLOSING OF ST. PAUL BANK STARTS RUN ON AFFILIATED BANK
ST. PAUL, Minn.—Leading bankers of the city met here Saturday night to discuss the situation brought about by the closing of the Capital Trust & Savings bank of St. Paul, which had deposits of $5,000,000. It was reported merger of two of the larger banks in the city was under consideration.
The Capital Trust was ordered closed by A. J. Veigel, state superintendent of banks, because of "frozen assets" in the form of Montana and North Dakota mortgages.
Closing of the Capital Trust bank caused a run on the Capital National bank, which is in the same building. There is direct financial connection between the two institutions. The Capital National announced that it would continue to do business "as usual" next week.
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DROP IN LAND VALUES HITS ST. PAUL BANK
Institution With Deposits of Five Million Closed Because of "Frozen Assets"; Merger of Two Largest Banks In City to Follow; Heavy Run Follows the Failure
St. Paul, May 5.—Two of the larger banks in St. Paul may be merged as a result of the closing of the Capital Trust and Savings bank of St. Paul today by J. Veigel, state superintendent of banks. The report of the merger emanated from a meeting of the leading bankers of the city tonight.
The Capital Trust had a capital of $500,000 and deposits of $5,000,000. It was ordered closed because of "frozen assets" in the form of North Dakota and Montana mortgages, Mr. Veigel said.
Closing of the bank caused a run on the Capital National bank which is in the same building. There is no direct financial connection between the two institutions. When the Capital National closed after its regular business today there was a long line of depositors waiting to withdraw their savings. It is not thought the run will affect that institution as officials announced tonight they would continue to do business as usual next week.
A statement issued by J. L. Mitchell, president of the Capital Trust bank said "that because of the general depression in land values it has been impossible to make collections on these mortgages.
"A large number of foreclosures has been necessary with the result that the bank has acquired a large amount of land which is a frozen asset at the present time.
"If the bank could dispose of these assets for close to the normal value it would be able to pay its liabilities in full."
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CAPITAL NATIONAL BANK OF ST. PAUL COMBINES WITH WEYERHAUSER INSTITUTION
St. Paul, Minn. May 5.—Endangered by the failure of the Capital Trust and Savings Bank, Saturday, depositors in the Capital National Bank, a sister institution, were guaranteed protection today by a Merger of the latter with the Merchants National bank of St. Paul.
John L. Mitchell, former member of the Federal Reserve board and head of the two capital institutions, said the Capital National was in an exceptionally strong cash position, but directors felt a Merger with the Merchants National at this time was the best means of fully protecting depositors. A heavy run on the Capital National was anticipated this morning, since the Capital Trust closed its doors Saturday.
Deposits of the Merchants National bank, known as the Weyerhauser bank because the Pioneer Lumber King of Wisconsin and Minnesota established it, now total more than $50,000,000. Officers and directors of the Merchants remain the same.
The Merger in no way involves the Capital Trust and Savings bank, which failed, having $5,000,000 deposits.
R. C. Lilly is president of the Merchants National and George H. Prince chairman.
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BANKS PLAN MERGER TO AID DEPOSITORS St. Paul Institutions Consolidate to Avert Possible Run by Alarmed Patrons. By the Associated Press. ST. PAUL, Minn., May 5.-A move to protect interests of depositors of the Capital National Bank of St. Paul from a possible run was taken last night when the boards of directors of the Merchants' National Bank and the Capital National Bank voted to merge. Announcement of the action said: "As a result of action taken by the boards of directors of the Capital National Bank and the Merchants' National Bank the Merchants' National Bank assumes all deposit liabilities of the Capital National Bank. All banking operations will be conducted from the office of the Merchants' National Bank." The Capital National was in the same building as the Capital Trust and Savings Bank, which was closed Saturday by the state superintendent of banks because of "frozen assets." The Capital Trust had deposits of $5,000,000. Closing of the Capital Trust started a run on the Capital National, although the two had no financial connection. With the more than $12,000,000 in deposits of the Capital National the Merchants' will have $40,000,000 in deposits.
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BIG BANKS MERGE -Capital National Bank of St. Paul Joins With Merchants Bank to Proteet its Depositors. St. Paul, May 5.-A move to protect the interests of depositors of the Capital National Bank of St. Paul from a possible run was taken last night when the board of directors of the Merchants' National bank and the Capital National voted to merge. Announcement of the action said: "As a result of action taken by the boards of directors of the Capital National band and the Merchants' Nation bank. the Merchants' National bank assumes all deposit liabilities of the Capital National bank. All banking operations will be conducted from the office of the Merchants' National bank The Capital National was in the same building at the Capital Trust and Savings bank, which was closed Saturday by the state superintendent of banks, because of "frozen assets." The Capital Trust had deposits of $5,000,000. Closing of the Capital Trust started a run on the Capital National, although the two had no financial connection. With the more than $12,000,000 in depostis of the Capital National, the Merchants wilf have $10,000,000 in deposits.
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DEPOSITORS PROTECTED BY MERGER OF BANKS AT CITY OF ST. PAUL
(By United Press.)
St. Paul, Minn. — Endangered by the failure of the Capital Trust and Savings bank, Saturday, depositors in the Capital National bank, a sister institution, were guaranteed protection today by a merger of the latter with the Merchants National bank of St. Paul.
John L. Mitchell, former member of the federal reserve board, and head of the two capital institutions, said the Capital National was in an exceptionally strong cash position, but directors felt a merger with the Merchants National at this time was the best means of fully protecting depositors. A heavy run on the Capital National was anticipated this morning, since the Capital Trust closed its doors Saturday.
Deposits of the Merchants National bank, known as the Weyerhauser bank because that pioneer lumber king of Wisconsin and Minnesota established it, now total more than $50,000,000. Officers and directors of the Merchants remain the same.
The merger in no way involves the Capital Trust and Savings bank, which failed, having $5,000,000 deposits.
R. C. Lilly is president of the Merchants National and George H. Prince, chairman.
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MERGER OF BANKS IS EFFECTED TO GUARD PATRONS
St. Paul, Minn.—Endangered by the failure of the Capital Trust and Savings bank Saturday, depositors in the Capital National bank, a sister institution, were guaranteed protection today by a merger of the latter with the Merchants' National bank of St. Paul.
John L. Mitchell, former member of the federal reserve board and head of the two capital institutions, said the Capital National was in an exceptionally strong cash position, but directors felt a merger with the Merchants' National at this time was the best means of fully protecting depositors. A heavy run on the Capital National was anticipated this morning since the Capital Trust closed its doors Saturday.
Deposits of the Merchants' National bank, known as Weyerhaeuser bank, because that pioneer lumber king of Wisconsin and Minnesota established it, now totals more than 40 million dollars. Officers and directors of the Merchants' remained the same.
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LATTER BANK HAS DEPOSITS OF OVER FORTY MILLION
(By United Press)
St. Paul, May 5.—Endangered by the failure of the Capital Trust and Savings bank, the depositors in the Capital National bank, a sister institution, were guaranteed protection today by a merger of the latter with the Merchants National bank of St. Paul.
John D. Mitchell, former member of the federal reserve board and head of the other capital institution, said the Capital National was in an especially strong cash position, but directors felt a merger with the Merchants National bank at this time was the best means of fully protecting depositors.
A heavy run on the Capital National was anticipated this morning since the Capital Trust closed its doors Saturday.
Deposits of the Merchants National bank, known as the Weyerhaeuser bank because that pioneer lumber king of Wisconsin and Minnesota established it, now total more than $40,000,000. Officers and directors of the Merchants remained the same.
The merger in no way involves the Capital Trust and Savings bank which failed, having $5,000,000 deposits.
R. C. Lilly is president of the Merchants National and George A. Price is chairman.
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St. Paul Banks In Panic Over Failure Of Capital Trust St. Paul, Minn. May 6.-Endangered by the failure of the Capital Trust and Savings bank Saturday, depositors in the Capital National Bank, a sister institution, were guaranted protection today by a merger of the latter with the Merchants National Bank of St. Paul. John L. Mitchell, former member of the Federal Reserve Board, and head of the two capital institutions, said the Capital National was in an exceptionally strong cash position, but directors felt a merger with the Merchants National at this time was the best means of fully protecting depositors. The merger in no way involves the Capital Trust and Savings bank which failed, having $5,000,000 deposits.
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St. Paul, Minn., May 15--Stating that under present conditions they cannot operate profitably, officers of the Wabash, National, and Midland Trust and Savings banks are preparing to liquidate, they admitted privately yesterday. All depositors are being paid in full, and no new deposits are being accepted. No public announcements are being made, the banks fearing the effect. Following the failure of the Capital Trust & Savings banks two weeks ago, heavy runs were made on smaller banks in the Twin Cities. The Wabash and Midland institutions were in the middle class.
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HOPE IS HELD OUT FOR FUND RETURN
Depositors in the wrecked Capital Trust & Savings bank, St. Paul, may be aided by the Rockefeller Foundation.
The foundation was recently quoted in news dispatches as ready to spend $1,000,000 to buy Montana farms whose owners have failed, and to turn them over to experts to run.
The bank has more than $1,000,000 sunk in mortgages on Montana farms—money which the depositors practically have bid goodby—and is ready to sell.
Therefore, A. J. Veigel, state superintendent of banks, wrote to the foundation today, urging a deal.