7134. Lawrence Trust Company (Lawrence, MA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
trust
Start Date
December 15, 1931
Location
Lawrence, Massachusetts (42.707, -71.163)

Metadata

Model
gpt-5-mini
Short Digest
4c0e75ec4d09ebb8

Response Measures

None

Description

Articles (Dec 15, 1931) report heavy withdrawals and that the Federal National Bank of Boston suffered runs; the Federal National's closing led the State Bank Commissioner to take possession of five affiliated trust companies including the Lawrence Trust Company. That same group was described as closed; later (1934) litigation about repayment to depositors indicates the trust remained closed/placed in receivership. Classified as a run (driven by distress at the correspondent/affiliate Federal National) that led to suspension and permanent closure/receivership.

Events (3)
1. December 15, 1931 Run
Cause
Correspondent
Cause Details
Runs developed at the Federal National Bank of Boston (an affiliate/correspondent), precipitating heavy withdrawals at affiliated institutions including the Lawrence Trust Company.
Measures
None specified for Lawrence Trust Company beyond efforts to assure depositors; stockholders meeting referenced.
Newspaper Excerpt
runs at the bank and its branches yesterday ... heavy withdrawals at banks in Lawrence
Source
newspapers
2. December 15, 1931 Suspension
Cause
Government Action
Cause Details
State Bank Commissioner Arthur Guy took possession of the Lawrence Trust Company after the closing of the Federal National Bank of Boston to conserve assets and protect depositors.
Newspaper Excerpt
state bank commissioner ... have this day taken possession of the following companies: ... Lawrence Trust Co., Lawrence
Source
newspapers
3. December 9, 1934 Other
Newspaper Excerpt
STATE WINS FIRST STEP IN FEDERAL BANK LITIGATION ... to compel repayment $3,100,000 to 60,000 depositors of four closed banks ... the Lawrence Trust company ... alleged the National bank ... had taken the cash and other good assets of the trust companies ... returned straw loans; alleged fraudulent conduct by Federal National officers was alleged by counsel for the trust companies' receivers or commissioners. (court proceedings described.)
Source
newspapers

Newspaper Articles (15)
1. December 15, 1931 Springfield Evening Union Springfield, MA
Article from Springfield Evening Union, December 15, 1931

Click image to open full size in new tab

Article Text

Nine Banking Institutions in' Massachusetts Fail Open Doors for Business Federal National Bank of Boston and Eight .Affiliated Firms Are Closed Runs Start on Three Independent Greater Boston Institutions Gov. Ely Foresees Rapid Reorganizątion. BOSTON Nine banking with according the latest statements, of were closed today. The list included four national banks and state banks. Deposits $28,235,238. National Bank, whose the Comptroller Currency take charge after and its branches yes. had deposits Sept. 29 of The banks their latest other and available statements of deposit were The Middlesex National Bank. Lowell, $4,000,000: the State National Bank, Lynn, the Gloucester tional Bank. Gloucester. the Bancroft Trust Company. WorLawrence Trust Company the Inman Trust Company Cambridge, the Brockton Trust Company. Brockton. the Salem Trust $2,115,530. Gov. Joseph B. Ely in statement [Continued on Nineteenth Page.)

2. December 15, 1931 St. Louis Post-Dispatch St. Louis, MO
Article from St. Louis Post-Dispatch, December 15, 1931

Click image to open full size in new tab

Article Text

NATIONAL BOSTON AND AFFILIATES Aggregate Deposits of ConAffected cerns 000, According to Their Latest Statements. By the Associated Press.. BOSTON, Dec. Massachusetts banking houses with aggregate deposits of cording to their latest statements, were closed today. The list includes four National banks and five State banks. The central figure the Federal National Bank of which has five city branches and with which all the the other banks closed were affiliated. The Federal National Bank, whose directors voted to ask thhe Comptroller of Currency to take charge after runs at the bank and its branches yesterday, had deposits, Sept. 29, of $28,235,238. The other banks and their latest available statements of deposits follow: Middlesex National Bank, Lowell, State National Bank, Lynn, $2,013,565; Gloucester National Bank, Bancroft Trust Co., Worcester, $5,876,474; Lawrence Trust Co., Lawrence, Inman Trust Co., Cambridge, $3,Brockton Trust Co., Brockton, Salem Trust Co., Salem. $2,115,530. Gov. Ely, in statement, said that with proper measures, plan for the speedy reopening of the institutions could be arranged and further said had instructed Bank Commissioner Arthur Guy to proceed with that end in view. Three savings banks in East Boston and South Boston experienced small runs today. They are independent of the group affected by today's closings and officers sought to assure depositors that their funds were President Daniel Mulloney of the Federal National Bank expressed the opinion that with careful handling of resources. depositors in his bank would receive 100 cents the dollar. The Federal National member of the Boston Clearing House. It held State deposits of $729,889. National Bank at Marion, O., Closed: Ex-Cashier Missing. By the Associated Dec. B. Hane, president of the Marion National Bank, said apparent irregularities in the accounts of his son, H. W. Hane, former cashier, caused the closing of the bank today. The elder Hane issued statement that the directors had placed the bank in the hands of the Federal Comptroller of Currency and that national bank examiners were checking the records. nature and the amount of the apparent defalcations have not been determined.' the stateHane, cashier, in whose accounts the confusion in records has been found, resigned an officer of the bank last week. He left the city at that time and his not now known. The bank's deposits are listed

3. December 15, 1931 Lansing State Journal Lansing, MI
Article from Lansing State Journal, December 15, 1931

Click image to open full size in new tab

Article Text

BANKS CLOSED BOSTON Institutions with Aggregate Deposits of 58 Million Fail to Open ONE HAD FIVE BRANCHES Four Were National and Five Were State Banks; Runs Start on Three BOSTON, Dec. 15 (P)-Nine Massachusetts banking institutions with aggregate deposits, according to latest statements, of $58,700,000 were closed Tuesday. The list included four national banks and five state banks. The central figure in the closings was the Federal National Bank of Boston, which has five city branches and with which all the other institutions were affiliated The Federal National bank, whose directors voted to ask the comptroller of currency take charge after runs at the bank and its branches Monday, had deposits, on September 29, of $28,The other banks and their latest statements of deposit were: the National bank, Lowell, $4,000,000; the State National bank, Lynn, the Gloucester National bank, the Bancroft Trust company, Worcester, the Lawrence Trust company, Lawrence, $9,555,926: the Inman Trust company, Cambridge, the Brockton Trust company, Brockton, the Salem Trust company, Salem, Three savings banks in East Boston and South Boston were experiencing small runs Tuesday They were independent of the group affected in Tuesday's

4. December 15, 1931 The Kokomo Tribune Kokomo, IN
Article from The Kokomo Tribune, December 15, 1931

Click image to open full size in new tab

Article Text

BANKING FIRMS EAST BUSINESS Boston, Dec. banking with aggregate deposits, according to the latest of $58,700,today. The were closed 000. cluded four national banks and five central figure in The state the closings the Federal NR. tional Bank of Boston, which has and with which city branches five institutions were all the other filiated. The Federal National Bank, whose directors voted to ask the comptroller of currency to take charge after runs at the its branches yesterday, had deposits, on September 29, of $28.The other banks and their latest available statements of deposit were: The Middlesex National Bank. Lowell, $4,000,000; the State National Bank, Lynn. $2,013,565; the Gloucester National Bank, $1,600,000; The Trust cester, $5,876,474; the Lawrence Trust Company, Lawrence. $9,555,926: the Inman Trust Company, Cambridge, $3,808,412; the Brockton Trust Company, $1,508.753; the Salem Trust Company, Sa$2,115,530. Governor Joseph Ely, in statement from his home in Westfield, said that with proper measures, plan the speedy reopening of the Institutions could be accomplished and further said he had instructed Bank Commissioner Arthur Guy to proceed with that end in view. Three savings banks in East (Continued on Page Thirteen)

5. December 15, 1931 Fitchburg Sentinel Fitchburg, MA
Article from Fitchburg Sentinel, December 15, 1931

Click image to open full size in new tab

Article Text

State Bank Commissioner Gives Statement BOSTON, Dec. Arthur Guy. state bank comstatement today: result of the closing of the Federal National hank of Boston. national banking stitution. have this day taken possession of the following companies: "Bancroft Trust Co., Worces- "Brockton Trust Co., Brock- ton. "Inman Trust Co., Cambridge. "Lawrence Trust Co., Lawrence. "Salem Trist Co., Salem "These trust companies are affiliated with and controlled by the Federal National bank. The parent bank having been closed. no other course remained but to take possession of these five trust companies to conserve the assets and for the protection of depositors. "No other state banks are Boston Clearing House association has stated in the press that in their best judgment the banking situation essentially sound and safe. In the judgment of the banking department the same is to be said of the banks of the eommonwealth generally and there should be no undue apprehension on the of depositors."

6. December 15, 1931 The Santa Fe New Mexican Santa Fe, NM
Article from The Santa Fe New Mexican, December 15, 1931

Click image to open full size in new tab

Article Text

Close Nine Banks In Massachusetts Boston, Dec. 15 (/P)-Nine Massachusetts banking institutions with aggregate deposits, according to the latest statements of were closed today. The list included four national banks and five state banks. The central figure in the closings was the Federal National bank of Boston, which has five city branches and with which all the other Institutions were affiliated. The directors of the Federal National bank voted to ask the comptroller of currency to take charge after runs at the bank and its branches yesterday. The other banks and their latest available statements of deposit were: ling of resources, depositors in his bank would receive 100 cents on the dollar. Today, small runs started on three shavings banks, two in east Boston and one in south Boston, while their officers endeavored to assure depositors that the institutions were entirely indépendent of the other Institutions and their funds were safe. The Middlesex National bank, Lowell, $4,000,000; the State National bank, Lynn, $2,013,565; the Gloucester National bank, the Bancroft Trust company, Worcester, $5,876,474; the Lawrence Trust company, $9,555,926: the Inman Trust company, Cambridge, $3,808,412; the Brockton Trust company, Brockton, $1,508,753; the Salem Trust company, Salem, $2,115,530. SPEEDY REOPENING Governor Joseph B. Ely, in state- Gloucester, Mass., Dec. 15-(P)ment from his home in Westfield. The Gloucester National Bank said that with proper measures, founded in 1796 and one of the oldplan for the speedy re-opening of est financial institutions in the the institutions could be accom- United States, voluntarily closed its plish and further said he had in- doors today after heavy demands structed Bank Arthur for It associated Guy to proceed with that end in with the Federal National bank of view. President Daniel c. Mulloney of the Federal National bank expressed oHTo BANK CLOSES the opinion that with careful hand- Marion National Bank with resources of failed to open today. Frozen assets and a depleted cash reserve was given as the reason. Liberty State bank of Bidney closed today. sign on the door said deflation of values, adverse conditions and withdrawal of deposits had led to the closing. The bank's last statement showed deposits of $365,345.

7. December 15, 1931 The Chico Enterprise Chico, CA
Article from The Chico Enterprise, December 15, 1931

Click image to open full size in new tab

Article Text

Institutions BOSTON, Dec. Nine Boston institutions with aggregate deposits, according to the last statements, of $58,700,000 were closed today. The list included four national banks and five state banks. The central figure in the closings was the Federal National Bank of Boston which has five city branches and with which all the other institutions were affiliated. The Federal National Bank, whose directors voted to ask the comptroller of currency to take charge after runs at the bank and its branches yesterday, had deposits, on September 29, of $28,235,238. The other banks and their latest available statements of deposits were: The Middlesex National Bank, tional Bank, Lynn, $2,013,565; the Lowell, $4,000,000; the State NaGlouchester National. $1,600,000, the Bancroft Trust company, Worcester, $5,876,474; The Lawence Trust company, Lawrence, $9,555,926; the Inman Trust company, Cambridge, $3,808,412; the Brockton Trust company, Brocton, $1,508,753; the Salem Trust company, Salem, $2,115,530. To Reopen Soon. Governor Joseph B. Ely. in statement from his home in Westfield, said that with proper measures, plan for the speedy re-opening of the institutions could be accomplished and further said he had instructed Bank Commissioner Arthur Guy to proceed with that end in view. President Daniel C. Mulloney on the Federal National Bank Expressed the opinion that with careful handling of resources, depositors in his bank would receive 100 cents on the dollar.

8. December 16, 1931 The Cincinnati Enquirer Cincinnati, OH
Article from The Cincinnati Enquirer, December 16, 1931

Click image to open full size in new tab

Article Text

NINE BANKS CLOSED. Institutions Affected By Heavy Run At Boston. Boston. December 15 group of nine Massachusetts banks, having aggregate deposits of approximately $58,700,000. and of which the Federal National Bank of Boston was the central figure, was closed today The Federal National Bank, with which the other eight were affillated. had deposits of $28,235,233. according to its most recent statement condition Three other national banks were in the group that closed today They include the Middlesex National Bank of Lowell with deposits of approximately $4,000,000 the State National Bank of Lynn, with about $2,013,565 in deposits and the Gloucester National Bank Gloucester. which has deposits of approximately $1,600,000. Five state banks trust companies. had their affairs taken over by the Bank Commissioner, who announced their deposits to be approximately as follows the Bancroft Trust Company, Worcester $6,000,000; the Lawrence Trust Company. Lawrence, $8,860,000; the Brockton Trust Company. Brockton, $1,500,000; the Inman Trust Company, Cambridge, $3,500,000 and the Salem Trust Company, Salem. $2,200,000. The Bank Commissioner estimated that 75,000 depositors were affected by the closing of the state banks Joseph B. Ely. of Massachusetts expressed the belief that If prompt action were taken by the Federal authorities. making use of the National Credit Corporation, with the aid of the state authorities, speedy plan reorganization could be accomplished for the reopening of all the institutions. He said he knew of no reason why any other banks in the state should be affected Bank Commissioner Arthur Guy, pointing out that the trust companies were "affiliated with and controlled by the Federal National Bank, no other remained but to take possession of the trust companies to conserve the assets and for the protection of depositors.' The closing of the Federal National Bank was the consequence of run that developed on the hank and its five branches in Boston yesterday, after which the Directors voted to have the Comptroller of Currency take charge of the bank's affairs.

9. December 16, 1931 Daily News New York, NY
Article from Daily News, December 16, 1931

Click image to open full size in new tab

Article Text

9 BAY STATE BANKS FAIL WITH $58,700,000 DEPOSITS Boston, Dec. 15 (A).-Nine Massachusetts banking Institutions, with aggregate deposits of $58,700,000, were closed today in the midst of the Christmas shopping season. The list included four National banks and five State banks. The central figure in the closings was the Federal National Bank of Boston, which has five city branches and with which all the other institutions were affiliated. The Federal National Bank, whose directors asked the Controller of Currency to take charge after runs at the bank and its branches yesterday, had deposits Sept. 29 of $28,235,238. Move for Reopenings. The other banks and their latest available statements of deposit were: Middlesex National Bank, Lowell, $4,000,000; State National Bank, Lynn, $2,013,565; Gloucester National Bank, $1,600,000; Bancroft Trust Company, Worcester, $5,876,474; Lawrence Trust Company, Lawrence, $9,555,926; Inman Trust Company, Cambridge, $3,808,412; Brockton Trust Company, Brockton, $1,508,753; Salem Trust Company, Salem, $2,115,530. Gov. Joseph B. Ely, in a statement from his home in Westfield, said that with proper measures a program for the speedy re-opening of the institutions could be worked out and that he had instructed Bank Commissioner Arthur Guy to proceed with that end in view. Run on Savings Banks, Three savings banks in East Boston and South Boston were experiencing small runs today. President Daniel C. Mulloney of the Federal National Bank expressed the opinion that, with careful handling of resources, depositors in his bank would receive 100 cents on the dollar. The city of Boston had $900,000 on deposit in the Federal National Bank while the State had $773,889. besides $287,000 in other banks closed today. The bank commissioner's office estimated there were 75,000 depositors in the five State banks affected.

10. December 16, 1931 Daily News New York, NY
Article from Daily News, December 16, 1931

Click image to open full size in new tab

Article Text

9 BAY STATE BANKS CLOSE; HAD $58,700,000 Boston, Dec. 15 (A).-Nine Massachusetts banking Institutions, with aggregate deposits of $58,700,000, were closed today in the midst of the Christmas shopping season. The list included four National banks and five State banks. The central figure in the closings was the Federal National Bank of Boston, which has five city branches and with which all the other institutions were affiliated. The Federal National Bank, whose directors asked the Controller of Currency to take charge after runs at the bank and its branches yesterday, had deposits Sept. 29 of $28,235,238. The other banks and their latest available statements of deposit were: Middlesex National Bank, Lowell, $4,000,000; State National Bank, Lynn, $2,013,565; Gloucester National Bank, $1,600,000; Bancroft Trust Company, Worcester, $5,876,474; Lawrence Trust Company, Lawrence, $9,555,926; Inman Trust Company, Cambridge, $3,808,412; Brockton Trust Company, Brockton, $1,508,753; Salem Trust Company, Salem, $2,115,530. Three savings banks in East Boston and South Boston were experiencing small runs today.

11. December 16, 1931 The Mercury Manhattan, KS
Article from The Mercury, December 16, 1931

Click image to open full size in new tab

Article Text

NINE MASSACHUSETTS ARE SHUT DOWN BANKS Includes Four National and List Five State Banks With Deposits Boston. Dec. 15 Massachusetts banking institutions, with aggregate deposits, according to the latest were closed today. The list included four national banks and five state banks. central figure in the closings The Federal National bank the which has five city branchwith which all the other inand stitutions were affiliated. Federal National whose The directors voted to ask the comptrolto take charge after ler currency the bank and its branches runs had deposits, Septemof other banks and their latest The available statements of deposit The Middlesex National bank. Lothe State National well. the Gloucesbank. Lynn. National bank. the Bancroft ter Worcester, $5,876,Trust 474: the Lawrence Trust company, Lawrence, the Inman Trust company, Cambridge,

12. December 16, 1931 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, December 16, 1931

Click image to open full size in new tab

Article Text

HEAVY WITHDRAWALS AT BANKS IN LAWRENCE Dec of the the Trust Company today heavy the other local and they tinued until the close of business this savings banks and the cial banks that affected by the withdrawals, all of the banks took customers, and officials of said tonight that take of demands that might be made The Arlington Trust Company issued statement that it had temporarily the right to require notice statement said, in part: "The Arlington Trust has ample funds and resources in its savings department. All funds so deposited are entirely Moreover, means loss of terest for six months' period Because of this the company unwise permit continual withdrawal funds large While the requiring withput 30-day period. is likely that conditions will change that it may be possible to suspend it after few Several truckloads of cash were brought during the day from other cities and of were the banks depositors their Following meeting of the stockholders of the Lawrence Trust Company, Pres Cornelius Corcoran issued the closing the Federal National Bank of Boston, the depository of the Law-

13. December 16, 1931 St. Louis Globe-Democrat St. Louis, MO
Article from St. Louis Globe-Democrat, December 16, 1931

Click image to open full size in new tab

Article Text

STUDENT WHOSE AUTO FEDERAL NATIONAL KILLED MAN INDICTED OF BOSTON CLOSES The grand jury yesterday voted an indictment charging leaving the scene an injury to person against Robert C. Behn, 25-year-old the death of Wilfred Fone, 37. flower salesman, 1407A Ange street, who was injured fatally by an automobile driven by Behn at Lindell and Euclid avenue on November In confession to the police. Behn said he unavoidably struck Fone when the flower seller stepped out from behind traffic going the opposite direction, and that he drove on to Taylor avenue and stopped and walked back. There, his confession said. he heard woman say he had been careless and speeding and became frightened and drove home without Identifying himself as the driver. He told his mother what had OCcurred. and. on advice, surrendered to the police. Governor Expects Speedy Reopening of Bank and Eight Affiliates. By Associated Press MASS., December 15.Nine Massachusetts banking institutions, with aggregate deposits, according to the latest statements. of $58 were closed today. The list included four National Banks and five state banks. The central figure in the closings was the Federal National Bank of Boston, which has five city branches and with which all the other institutions were affiliated. Gov Joseph B. Ely. in statement from his home in Westfield. said that with proper measures. plan for the speedy re-opening of the institutions could be accomplished and further said he had instructed Bank Commissioner Arthur Guy to proceed with that end in view. The Federal National Bank, whose directors voted to ask the comptroller of currency to take charge after runs the bank and its branches yesterday. had deposits, on September 29, of $28,285,238. The other banks and their latest available statements of deposit were: The Middlesex National Bank, Lowell, $4,000,000: The State National Bank, Lynn, $2,013,565; The Gloucester National Bank, The Bancroft Trust Company. Worcester. $5,876,474 The Lawrence Trust Comman Trust Company. Cambridge. $3,808,412 The Brockton Trust ComTrust $2,-

14. December 16, 1931 The Cincinnati Enquirer Cincinnati, OH
Article from The Cincinnati Enquirer, December 16, 1931

Click image to open full size in new tab

Article Text

NINE BANKS CLOSED. Institutions Affected By Heavy Run At Boston. Boston. December 15 group of nine Massachusetts banks, having aggregate deposits of approximately $58,700,000. and of which the Federal National Bank of Boston was the central figure, was closed The Federal National Bank, with which the other eight ated. had deposits of $28,235,238. ac: cording to its most recent statement Three other national banks were in the that closed today. They include the Middlesex National Bank of with deposits of approxis mately $4,000,000; the State National Bank of Lynn, with about $2,013,565 in deposits and the Gloucester Name tional Bank, Gloucester, which has deposits of approximately $1,600,000 Five state banks, trust companies had their affairs taken over by the Bank Commissioner, who announced their deposits to be approximately as follows: the Bancroft Trust Come pany, Worcester. $6,000,000; the Laws rence Trust Company, Lawrence $8,860,000; the Brockton Trust Come pany, Brockton, $1,500,000; the Inman Trust Cambridge, $3,500,000, and the Salem Trust pany, Salem, $2,200,000. The Bank estimated that 75,009 depositors were affected by the closing of the state banks. Governor Joseph B. Ely of Massa chusetts, expressed the belief that prompt action were taken by the Federal authorities. making use the National Credit Corporation, with the aid of the state authorities, a speedy plan reorganization cculd be for the reopening of all the institutions. said he knew of no reason why any other banks in the state should be affected. Bank Commissioner Arthur Guy, pointing out that the trust companies were "affiliated with and controlled by the Federal National Bank, no other course remained but to take possession of the trust companies conserve the assets and for the protection of The closing of the Federal National Bank was the run that developed on the bank and its five branches in Boston yesterday, after which the Directors voted to have the Comptroller Currency take charge of the bank's affairs.

15. December 9, 1934 The Springfield Daily Republican Springfield, MA
Article from The Springfield Daily Republican, December 9, 1934

Click image to open full size in new tab

Article Text

STATE WINS FIRST STEP IN FEDERAL BANK LITIGATION Judge Brewster Overrules Motion to Dismuss Case and Orders Heard on Its Merits in Federal Court Boston, Dec. State Bank Arthur Guy tonight won the first step in his efforts compel repayment $3,100,000 to 60,000 depositors of four closed banks which alleged illegally taken the closed Federal National bank Judge Elisha H. Brewster in United States district court tion counsel for the Federal Nathe and ordered be heard merits. four banks involved. now in possession of the state commissioner, Inman Trust of Cambridge, Bankcroft Trust company the Trust of Brockton the Lawrence Trust company Neil Leonard, counsel the companies, alleged the National bank of trust companies through the medium the Federal National ment trust. He contended legal national to and alleged the officers the cash and other good assets the trust companies and gave in return straw loans. By these are added, the four banks lost thousands of dolfurther alleged that the Federal the these from trust for the worthless loans corporations and over these loans to the trust compahis decision, Judge Brewster would bank party fraudulent, would least breach trust the part those charged with administering the affairs the trust allegations also would comthe conclusions the bank, indirect means tained control trust outright capital stock of the trust Poli's) Counsel Federal National called bank contended that could not account for the alleged in much did not directly own stock in trust companies.