Chelsea Bank & Trust Company (New York, NY)

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5 o'Clock News Flashes

State Takes Possession of Chelsea Bank NEW YORK, Dec. The state of banks, Joseph Broderick, today took possession of Chelsea Bank and Trust Company, a small institution largely patronized by actors and others in the theatrical business. It was capitalized at $2,500,000 has deposits of approximately $18,000,000, and total resources of $23,000,000. The closing of the bank followed a run on the institution which developed last night and continued this morning.

Broker Gets 14 Years for Embezzlement Plot WASHINGTON, Dec. G. Bryan Pitts, former chairman of the board of the F. H. Smith Company of Washington, today was sentenced to 14 years in prison for conspiracy to embezzle millions of dollars from the company. Elbert Anadale and John H. Edwards, Jr., also officers of the company, who were tried with Pitts, were given sentences of nine and four years, respectively.

Christmas Mail Rush at Peak Today WASHINGTON, Dec. 23-(AP) The gigantic Santa Claus sled of the Christmas mail was estimated to have hit peak today, and now is poised for its sharp toboggan to normalcy. If its aggregate equals last year's, as is expected by the Postoffice Department, the Christmas mails will have carried 1,670,000,000 letters, 20,000,000 package, and 17,000,000 postcards.

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CHELSEA BANK HAS BEEN TAKEN OVER

NEW YORK Dec. State Superintendent of Banks, Joseph Brodertoday took possession of the Chelsea Bank and Trust Company small institution largely patronized by actors and in the theatrical busiwas capitalized at has approximat $18,000.000 and total resources of $23 The closing of the bank followed run the institution which developed last night and continued this The Chelsea Bank and Trust Comwas in 1903 and has six offices. It a and State depository 16 not member of either the Federal Reserve or the New York Clearing House the membership of which includes virtually all of the largest financial institutions in New York The banks owns the Chelsea Exchange Safe Deposit Company and 1928 organized the Chelsea Exchange Corporation to deal in securities.

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State Takes Over Chelsea Bank In New York

State Superintendent of Banks Broderick announced to. day he had taken the Chelsea Bank and Trust Company The institution according to the latest figures, had gross of $16,323,000 on December 20th, The bank was closely identified with the motion picture industry in New York and two directors are active figures in the film world.

ANOTHER MIAMI CLOSES MIAMI BEACH Dec. 23. The City Bank of Miami Beach was closed to-day to protect depositors, officials announced, after run on the bank yesterday. The city bank had capital stock of $100,000 and of approximately $600,000. The City National Bank of Miami was closed yesterday.

CLOSE IN HARTFORD HARTFORD Dec. 23 Hartford banks, the Riverside Trust Company and Pallotti Andretta and Company, were suspended to-day by Bank Commissioner Lester E. Shippee, following runs both institutions. Pallotti Andretta and control the Riverside Trust ComThe state manual for 1930 gave the capital of the Riverside Trust Company as $400,000, surplus $600,000, undivided profits $24,229, savings deposits $643,805 and commercial deposits $3,185,455.10.

B7SSEMER (Ala.). Dec. 23 The City National Bank the Bessemer Trust and Savings Bank failed to open to-day.

RICHMOND (Va.), Dec 23 The state division of insurance and banking to-day the People's Bank of Gretna, Va., had

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SMALL NEW YORK BANK IS CLOSED NEW YORK, Dec. 23-(P)-The State Superintendent of Banks, JoBroderick. of Trust patronized by actors and theatrical business. capital at has deposits and total resources of The closing bank followed which denight and continued this Chelsea Bank and Trust Co. was founded 1903 and fices. a National and State depository.

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RUN CLOSES BANK.

NEW YORK, N. Press. Dec. The state superintendent of banks, Joseph Brodery, today took possession of the Chelsea Bank and Trust company, a small institution largely patronized by actors and others in the theatrical business. It was capitlaized at $2,500,000, has deposits of approximately $18,000,000 and total resources of $23,000,000. The closing of the bank followed a run on the institution which developed last night and continued this morning.

Associated Press.) RICHMOND, Va., Dec. 23.-The state division of insurance and banking today announced that the Peoples bank of Gretna, Va., had suspended business. The bank was capitalized at $50,000 and had deposits of $474,000.

(By The Associated Press. HARTFORD, Conn., Dec.

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State Takes Over Chelsea Bank In New York

NEW YORK Dec 24 --(U.P) State Superintendent of Banks British Refuse Charge Broderick announced he had taken in over the Chelsea Bank and Trust the region and Diedrichs told me Company he wanted to get the Romanoff The institution, according to the remains into the of the latest figures, had gross Grand Duke Nichols as quickly as of $16,323,000 on December 20th. possible He had asked British representatives to take charge of The bank was closely identified this but they were with the motion picture industry when they asked authority in New York and two are their government active figures in the film world was then, General Janin wrote Diedrichs asked him ANOTHER MIAMI CLOSES take charge of the relies and he MIAMI BEACH (Fla.), Dec. 24 The City Bank of Miami accepted the of his own friendship for

BAY CITRUS (By Press) SAN

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TWO CHELSEA BANK INQUIRIES STARTED Roosevelt Asked to Investigate State Office's Relation to Closings. By the Associated Press. NEW YORK, December 25.-Two inquiries are under way to find the source of rumors blamed for the closing of the Chelsea Bank & Trust Co. Tuesday. Gov. Roosevelt was petitioned by a group of small depositors in the Bank of United States to invoke the State Moreland act to investigate the relation of the State Banking Department to the closing of the Bank of United States and of the Chelsea Bank. A letter from counsel for the group of East Side depositors called attention to the manner in which the Bank of United States took over, prior to April, 1929, the affairs of a number of other banks and questioned whether this could have been done under proper supervision by the banking department. While plain clothes men sought to trace reports of rumor mongering, Assistant Attorney General Washburn issued subpoenas for the records of a dozen brokerage houses dealing in bank stocks. Washburn said he would question brokers about their handling of Chelsea Bank stock in an effort to learn whether false rumors were circulated by short sellers of the stock in search of profit. Supt. James Broderick of the bank department issued a statement saying that so far as he knew there was nothing wrong with the condition of the Chelsea Bank. He took possession of the bank's assets, he said, after a run started by rumers caused increasing withdrawals from the bank.

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Suspect Reds Plotting Runs Banks

York, Dec. ComNew and brokers munists bank stock were equally sustoday in official attempts trace to inspired sources the resulted the closing Chelsea Bank and Trust Company Tuesday. neither, however, were Against hose in authority prepared supported accusations, though intimated that the State Banking Department had information tangible enough to warattention of District Atrant torney Crain. The closing of the Chelsea Bank and Trust small institution largely by stage blamed flatly by people, Joseph Broderick, state banking upon run which gained in proportions until had be closed to safethe doors guard the institution's assets.

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Communists, Brokers Accused of Starting Run on Chelsea Bank

NEW YORK, Dec. 26. (/P)-Communists and short selling brokers of bank stock were equally suspected today in official attempts to trace to inspired sources the run which has resulted in the closing of the Chelsea Bank and Trust company early this week. Against neither group, however, were those in authority prepared to make supported accusations, altho it was intimated the state banking department had information tangible enough to warrant the attention of District Attorney Crain.

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Investigate Run On Chelsea Bank And Trust Co.

NEW YORK, Dec. 26. (P)-Communists and short-selling brokers of bank stock equally tosuspected day in official attempts to to trace inspired the run which has sulted in the closing of Chelsea bank and Trust Company Tuesday Against neither, were those authority prepared to supported accusations, although It intimated that state banking department had information tangible enough warrant the attention of District torney Crain The closing of the Chelsea bank and Trust Company. small institution patronized largely stage people, was blamed by Joseph Broderstate banking superintendent, upon which gained in propor. tions until were closed to safeguard the

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Communists And Stock Gamblers Wrecked Bank

New York, Dec. munists and brokers bank stock were equally pected today official attempts trace inspired sources the which resulted in the closing of the Chelsea Bank and Trust Company The of the Chelsea Bank and Company, small stitution patronized largely by stage was blamed flatly by Joseph Broderick, state upon which gained in until the doors be closed guard the Assistant Attorney General Washburn that operators Chelsea bank stock in its and AssistAttorney Pilatsky has been assigned to down that has been under way to start bank runs.

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the Chelsea Bank and Trust company prior to the whispering campaign which precipitated heavy withdrawals and caused the bank to be closed Records of eight brokerage houses were examined today by Watson Washburn, assistant attorney general in charge of the state securities bureau in an effort to determine for whom they sold Chelsea and other bank stocks. District Attorney Crain has as- signed an assistant to investigate the alleged communist whispering campaign. An effort is being made to trace telephone calls that warned depositors of the Cheslea bank to withdraw their funds. "That the campaign has not been without results was shown only last Saturday, when run on one bank began only two hours after information had reached us that the communists had made It their target."