City Bank (Hartford, CT)

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SEVERAL OTHER INSTITUTIONS INVOKING THE 90-DAY CLAUSE

East Hartford Bank Also Suspends, Restraining Order Is Issued

Ct., Jan Bank and Trust today every savings bank savings department vicinity promptly evoked the notice provision tection depositors. Despite the closed bank there sign of undue uneasiness. in 1851. the City Bank and Trust, by mergers and steady total asof $30,500,000 as of its last cial

Heavy Withdrawals

The bank by ing George J. Bassett on request of the after an all-night plans were immediately taken under hopes pressed that full repayment of savings depositors be eventually effected. The bank severe more than year ago following circulation of false rumors concerning its Commissioner Bassett issued statement bility to to meet steady and heavy bank, founded and capitalized for $1,000,000, was of the largest this Its was $2,000,000, and undiv profits nearly of its deposits were in the savings depart"They had reached the limit of their liquid and unable to securities at this time except at great sacrifice, conditions in the due security said Commissioner Bassett's "Effort made during the which would supply sufficient uid capital to meet all of time made tion impossible. "The therefore, at meeting last night that in justice all the they the banking department place temporary order and this this at the moment in is will be sufficient to eventualall depositors. In meantime it is the reorganization may be effective in the result of the run on the City Bank and Trust it was today that all mutual would the in permits them demand notice of to deposits. This it the request of the bank commisorder that public may be and may be assured their being protected."

Second Bank

City Bank Trust company in the the Hartford Trust shut issued State Bank George request statement had $2,067,000 was incorporated 1916.

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Bank Liquidation Aids Decline in Security Prices

New York, Jan. 1 (AP). — The fall in security prices during the latter part of 1931 is attributed, partly, in the monthly review of the Federal Reserve Bank of New York, to an unusually heavy reduction of bank credit.

In the second week of December, the review points out, the total loans and investments of weekly reporting member banks of the federal reserve system declined to a volume of $2,500,000,000 smaller than a year previous, and the deposits of these banks showed an accompanying decline of about $3,000,000,000.

"Since September," it is stated, "the tendency toward credit reduction has been accelerated, as a decrease of investments has been added to the reduction in loans. This accelerated decline started with heavy withdrawals of deposits from banks, a considerable part of which represented the funds of foreign depositors, following the suspension of gold payments by Great Britain in September.

"The ensuing rise in money rates was accompanied by a decline in the prices of high grade securities, and this decline in security values, together with the loss of deposits, appears to have set in motion a cycle of credit reduction which continued after the immediate cause ceased to operate."

Bank Suspensions.

Hammond, Ind., Jan. 2 (AP). — The Hammond National Bank and Trust company failed today and was placed in charge of R. L. Hopkins, national bank examiner. The bank had capital and surplus of $500,000 and $2,000,000 deposits at last examination.

Hartford, Conn., Jan. 2 (AP). — The City Bank and Trust company did not open for business this morning.

The bank was incorporated in 1851. In a report to the state banking commission the savings deposits were given at $16,961,220, commercial deposits at $8,622,227, capital $1,000,000 and surplus $2,000,000.

Charleston, S. C., Jan. 2 (AP). — The People's State Bank of Charleston, with 44 branches in 41 towns and deposits at the time of its last statement of $24,443,690, did not open for business today.

Its board of directors after a meeting, last night issued a statement saying it had decided to turn the affairs of the system over to the state bank examiners for a period of 30 days pending efforts toward reorganization.

The bank, one of the oldest in the state, was capitalized at $2,000,000 and listed its total resources in its last statement, September 29, at $28,773,802.

Owensboro, Ky., Jan. 2 (AP). — The Central Trust company of Owensboro failed today. Frozen assets were said to have caused the closing. The bank, established 43 years ago, had deposits of $2,481,124.

Topeka, Kans., Jan. 2 (AP). — The closing today of the Home State bank of Junction City, was announced by the state banking department. Frozen assets was given as the reason for the closing.

The bank's October 10 statement to the department listed $25,000 capital; $7,000 surplus; $160,000 deposits; $18,145 borrowed money, and $178,000 loans.

Minneapolis Bank Stocks.

Minneapolis, Jan. 2 (A. P.) — Bid. Ask. Close. First Bank Stocks 12 12 1/4 12 1/8 Northwest Bancorporation 21 1/4 21 1/2 21 1/4

Standard Statistics reports 68 unfavorable dividend changes last week compared with 86 in the preceding week. Dividends were reduced in 35 instances and omitted in 33. Favorable changes were made up of 12 extra dividends, two increased and two initial.

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CAROLINA BANK FAILS TO OPEN

By Associated Press CHARLESTON, S. C., Jan. 2.—The People's State Bank of Charleston, with 44 branches in 41 cities and towns and having deposits at the time of its last statement of $24,443,690, did not open for business today.

Its board of directors last night in a statement said it had decided to turn the affairs of the system over to the state bank examiner for a period of 30 days pending hoped for reorganization.

By International News HARTFORD, Conn., Jan. 2.—The City Bank and Trust company of this city was closed today by the State Banking department at the request of the bank directorate to preserve the assets.

Incorporated in 1851, the City Bank and Trust as of its last financial statement had capital of $1,000,000 and surplus of $2,000,000. Savings deposits were more than $16,000,000 and commercial deposits approximately $8,662,000.

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CONNECTICUT BANK CLOSED.

Hartford Conn., January 2-(AP) The City Bank & Trust Co. did not open for business this morning The bank was incorporated in 1851. In report to the State Banking Commission the savings deposits were given at $15,500,000, commercial de posits at $5,500,000, capital $1,000,000 surplus $2,000,000 and total resources $25,000,000 The East Hartford Trust Company closed at noon after heavy withdrawa the morning The State Bank who issued temporary restraining order, said the action was necessary to protect depositors The bank's assets are $3,540,000. with deposits totaling

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BANKS IN HARTFORD CLOSE AFTER RUNS

City Bank and Trust and East Hartford Trust Shut Others Will Require 90 Days' Notice Hartford, Jan. City Bank and Trust company East Hartford Trust company today because heavy withother banks here require days' notice for savings accounts of $100 or City Bank Trust company, with deposits and accounts directors asked banking department business action heavy from the East Hartford which noon protect total commercial deposits George bank comthe City Bank Trust should to pay all depositors

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BANKS IN HARTFORD CLOSE AFTER RUNS

City Bank and Trust and East Hartford Trust Shut Others Will Require 90 Days Notice Hartford, Jan. City Bank Trust company the East Hartford Trust company closed because heavy withtoday drawals, and other banks here cided require days' notice for removing savings accounts $100 more. The City Bank Trust company, commercial deposits $5,500,and savings accounts of $15,500,not after the directors asked the banking department to take over the business. The action brought heavy withdrawals from the East Hartford bank, which closed noon to protect depositors. Its savings and commercial deposits $747,000. George J. Bassett, state bank comthe City Bank and Trust in 1851, vance should able to pay all depositors eventually.

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Withholds Decision On Bank Receiver

(Continued from Page 1.) closing of the City Bank & Trust Company, Holden that would be the work of the appraisers to give the depositors correct picture of the conditions existing the closed bank. He said he believed their findings would aid in restoring confidence in the banks Hartford Mr. Holden told the court that the depositors of the closed bank number of the city's

Hearing Friday.

Mr. Holden said he felt the duty of the court aid in removing from the public mind the idea that things are being done behind closed doors. He said that list of possible praisers would submitted the court as possible. Mr. Holden told Judge Brown that to the shaken confidence of the public in banks thousands their and putting in postal trend which he said might acts to prevent suffering. Mr. Holden "when private either fail to act or not know what to do. becoming apparent that capital does not know how act. The government going once steps will never step out. These so-called capitalists ought realize it. Here an opportunity for their effort. Unless situations these are in my opinion there will not be privately owned bank in the country in Frank A. Hagarty. vice-president and counsel closed bank and Attorney Harrison B. Freeman of the board of directors agreed with Mr. Holden's position but urged that careful consideration be given naming of the Mr. said their appointment should wait until the receiver has been by the court and Mr that be needed proper appraisal of the bank's holdings He said that while the value of the bonds and securities are readily, the appraisal of the bank's require great deal of His recommendation that the appointment of appraisers be deferred until Friday with general Judge Brown indicated that if he names receiver today he would accept the of Mr. Bassett and fix bond. Tells of Withdrawals.

Judge Brown inquired of the bank commissioner when Mr. Bassett took the stand what the of the bank when closed. Mr. Bassett said that in such condition that would been unable to secure funds pay the expected lacking the bond capamoney for loans. He said that total of $500,000 in loans had been that had been steady withdrawal of commercial deposits and that $500,000 more be taken out on January 2, the day the bank was closed.

Has Nearly $5,000,000. Mr Bassett disclosed that there was indicated an impairment of the capital of the bank, which $1,000,000. caused by the shrinkage of its securities. A more favorable side of the picture he drew was that there are between $4,000,000 and 000,000 in quick assets, that is securities readily convertible into cash, cash on hand and deposits in other banks. Mr. Freeman told the court that the bank has in mortgages and $7,000,000 in commercial loans Most of its investments are in 3AAA bonds and only one bond, for $7000. has dropped the BAA standard. Hewes Active.

Mr. Hewes, the proposed receiver for the City Bank & Trust Company, has been active in bank receiverships for more than year. In addition to playing an important in the reopening the Riverside Trust Company, which ditional capital and deposits. he actas counsel the Merchants Bank Trust Company, receiver for closed Pallotti, Andretta Bank He resigned as counsel in that case after opposition had been made by the Pallotti. Bank his fee against that On Monday the Bank Company the Trust Company. is planned stitute for the Pallotti, Andretta Bank Attorney William Mulligan and treasurer of the Merchants bank until the merger Attorney Allen E. Brosmith, who represented the depositors committee in opposing the fee granted Mr. Hewes as counsel for the Pallotti Andretta Bank receiver is now counsel for receiver, having succeedMr.

Reorganization Discussions. Plans for reorganization reCity Bank Trust opening Company gathered momentum Wednesday it can now be stated authoratively plan has been formulated the bank reopens with new capital Further that those gaged promoting the plans the bank would no Further progress was made with the plans in connection the reopening of the East Hartford statement at this time would The Bank Trust Comofficers also made further progress with their plans but regard little early to make definite statement The Travelers Bank Trust Company named as temporary receiver. Wednesday. Appraisals First. Before definite plans for can be formulated be to have appraisals made in order determine the exact condition the banks With this hand those in the the institutions can Bank Business Normal. Banking conditions were increasmore normal and any day, during periods of boom activity.

Storrs Dean Speaks.

Storrs, Jan. SumDole Connecticut Agricultural College said parents were sponsible for handicaps which hindered the work college students. talk broadcast tonight WCAC. Students he said. are often forced enter college against best interests by on their for specific and un congenial occupation He urged that early take only light work under careful supervision.

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RECEIVER IS

Jan. Thomas Hewes, attorney and banker was today appointed temporary receiver of the City Bank and Trust company of Hartford by Judge lyn Brown in Superior court. Judge Brown. who has been considering nomination Mr. Hewes overnight said he considered an excellent every way. Bonds are $200,000 of which $100,000 primary coverage and $100,000 in liability. Date for confirmation of the temporary receiver and the appointment of praisers set for Tuesday, Jan uary Notice to be sent all creditors of the bank other than depositors. The for of the ceiver presented by Assistant Attorney Kosicki. Harrison Freeman and Frank of the bank and M. Holden, certain presented this mornthe time the appointment made.

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Supreme Court Of State Decides On Bank Receivership state supreme court of rors to-day issued special cision covering four points stake in bank receiverships the state. The decision made conwith the test brought George Bassett, bank commissioner, against the City Bank and company of Hartford, decision which reserved in superior court the supreme court errors by Judge Newell Jennings. In decisions written by different justices, the court ruled Makers transferred before maturity the savings dein order compensate for depreciation in market value of investments by the department are entitled to off deposits in the savings or commerdepartments the bank against such notes. The Reserve bank of Boston cannot have other creditors the bank in behalf of owners certain for collection. In Associate Justice Avery The should not pay to the istrators deposited the department by the bank as trustee administrator. the day the ing and which customwould not have been credited until the day deposit not special deposit to be classed with general deposits.

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HARTFORD BANK DEPOSITORS TO SOME MONEY

Court Instructs City Bank Receivers to Pay 15 Per Cent Dividend

REORGANIZATION PROPOSAL FAILS.

Investigation in Case of Child Who Died After Accident in Pope Park Results in Recommendations

From Our Special Correspondent. Hartford, Sept. news week. affecting thousands of Hartford was the order by Judge Arthur Ells of the superior court for the City Bank and Trust company, to pay per cent dividend to the depositors the department. Closing the bank major tragedy in Hartford affairs; Judge Ells Thursday discussing from the bench liquidation. The difficulty has been enough There deposits about of them depositors support the whereby the depositors would their bank work own quite cent the plan and Judge not grant for committee add to the signatures. to have large majority the could commitobtain that large hand Receiver Thomas 15 cent the savings department. Plans under sell the department of the

Investigation in Hanshaw Case The has seethed the past following little Shirley 604 struck Pope ago died the doctor four hours. The the board deresulted the disCohen. dispensRosella Pope more handling and that city cases direct doctor instead leaving President report of his with the Beginning next month the banks make charge of cents for handling each check specified number (about per based in account the One element the displaces the cents charge accounts less than $100 balances and to make small near the cost of handling. probably take Hartsmaller business men little time used this check fee the check in less Indications that justice these Louis Gentile, jail for obtaining money from welfare $30 week roads Unionville. attempting the poor Paul Peter's church street. Gentile laid fraud upon his who, wanted accumulate money pay some bills, that working. Griffin offered What portends weeks before the common pleas who street board the street project. More 20 estate appraisin week and the interand by CorpoCounsel Frederic Corbett furnish contention.

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City Bank Receiver Will Be Allowed to Cut Mortgage Rate After a hearing in the Superior Court Friday, which had been continued from the previous week, Judge Newell Jennings said he would sign an order the receiver the City Bank & Trust Company to the interest rate on mortgages to the prevailing rate in Hartford. Several Hartford banks have reduced the rate from to 5½ per cent. Thomas Hewes, the receiver of the bank. Lucius F. Robinson, Sr. and Barclay Robinson, appeared in favor of the motion.

Hadassah to Present Dance Soloist Tuesday Miriam Louis, soloist of the Ruth St. Denis group of American dancers, will appear in recital at the Weaver High School auditorium Tuesday evening under the auspices of the Hartford Chapter of Hadassah. the women's Zionist organization. Proceeds will be devoted to Hadassah funds for rehabilitation work in Palestine.

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Hewes Loses Petition For Appointment of Receiver of Rents

Judge Ernest A. Inglis of the Superior Court on Tuesday denied an by Thomas Hewes, receiver of the City Bank & Trust Company for the of a receiver of rents for the 48-apartment building at 75-77 Oxford Street, now owned by the Hartford Company took over with other assets of the PalAndretta bank The receiver of rents was requested so that Thomas Hewes, receiver the City Bank, which is to bring foreclose action on its $78,000 first mortgage may have control of the which is now being spent on of the building John Caulkins, real escalled by the plaintiff valued the property at $80,000 but the defendant produced Joseph P. Kennedy who said it was worth figure was $93 800 and Albert Rome who estimated it to be worth Judge Inglis said there was sufficient equity in the place for the realization company to continue to manage it. Howard B. Phelon, Barclay and Mr Hewes appeared for the and Abraham S. Bordon and Joseph Klau for the realization company

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City Bank Receiver To Take Over Property Of New Dom Hotel

The receiver the City Bank Friday by Judge Foster of Court to take Dom Hotel property Trumbull Church streets. which the closed departfirst the of ceiver's the court in interest owed the first $7000 taxes and due for and spent take the the hotel. said was granted claims $1500 in against inactive posits reserve fund, which totals $27,000.

With his white bulldog Zealand. walking around the world arrived recently Abroath, Scotland.

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State Senator Alcorn Named Bank Receiver

HARTFORD, June (AP) State Senator Howard W. Alcorn of Suffield, minority leader of the session of the General Assembly today appointed receiver of the City Bank and Trust Company by Judge Carl Foster in the Superior Court. Senator Alcorn succeeds Thomas Hewes recently became Assistant Secretary of the Treasury in Washington.

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State Senator Alcorn Named Bank Receiver

HARTFORD. June 16-(AP) State Senator Howard W. Alcorn of Suffield. minority leader of the session of the

General Assembly. was today appoint ed receiver of the City Bank and Trust Company by Judge Carl Foster in the Superior Court. Senator Alcorn succeeds Thomas Hewes who recently became Assistant Secretary of the Treasary in Washington.