Articles describe a run in mid-July 1930 after discovery of a $6,000 shortage by treasurer Ernest L. Smith (later arrested). Trustees invoked the Massachusetts 90-day moratorium (suspension) on July 17. The bank later reopened (Oct 27, 1930) under a new treasurer after state supervision and reorganization; state took possession Oct 14 temporarily. Cause of run/suspension is bank-specific adverse information (shortage/misappropriation). Dates derived from article publication dates and internal references.
Events (4)
1.July 16, 1930Run
Cause
Bank Specific Adverse Info
Cause Details
Run triggered by reports of a shortage (~$6,000) discovered in the treasurer's/mortgage accounts after an audit; treasurer Ernest L. Smith was removed.
Measures
Large sums transferred from Worcester County National to meet withdrawals; state and local police called; bank invoked Massachusetts 90-day moratorium clause allowing up to $100 payouts immediately.
Newspaper Excerpt
Reports of a run on the Millbury Savings bank at Millbury today ... reports of a shortage that followed an audit of the bank's accounts.
Source
newspapers
2.July 17, 1930Suspension
Cause
Bank Specific Adverse Info
Cause Details
Direct consequence of the run caused by discovery of shortages/irregularities in treasurer's accounts; trustees invoked statutory 90-day withdrawal notice (moratorium).
Newspaper Excerpt
The run on the Millbury Savings Bank was ended at 11 a.m. when the 90-day moratorium clause was invoked under the Massachusetts law for the protection of banks.
Source
newspapers
3.October 14, 1930Receivership
Newspaper Excerpt
Bank Commissioner R. A. Hovey took possession today of Millbury Savings bank, the doors of which are to be closed until the affairs of the institution have been straightened. It is said there is no intention of liquidating. The bank is said to be solvent if time is given to handle the assets. The doors of the bank will remain open despite all the difficulties ... (state agent placed in charge). (Oct. 14, 1930). }
Source
newspapers
4.October 27, 1930Reopening
Newspaper Excerpt
The Millbury Savings Bank ... was opened for business this afternoon under the management of a new treasurer, John H. Maxwell ... The depositors are still unable to withdraw their accounts, but are permitted to borrow up to 75 percent of their deposits.
Source
newspapers
Newspaper Articles (22)
1.July 16, 1930New Britain HeraldNew Britain, CT
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assist the officials there in handling the situation. The latest report of the bank's financial condition showed deposits of $5,050,750 and at present, according to officials, there is a surplus of about $400,000 and securities of more than $1,000,000 in value. Boston July 16 (AP-Reports of a run on the Millbury Savings bank at Millbury today was followed by announcement at the state banking department that Bank Commissioner Roy E. Hovey had ordered an audit of the institution last week. The commissioner expressed the opinion the bank was fundamentally sound but that there are discrepancies in the accounts.
2.July 16, 1930Kingsport TimesKingsport, TN
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Police Called Out In Run On Bank
WORCESTER, Mass., July 16 (AP)-The entire police force of the town of Milleciry was called out today when depositors of the Millbury Savings Bank started a run on the institution as a result of reports of a shortage that followed an audit of the bank's accounts. Although state banking officials expressed belief the bank was sound, the heavy withdrawals caused transfer of $400,000 from the Worcester County National Bank in Worcester to provide funds to meet the demands of the frightened depositors, who included scores of workers from the Millbury factories. An audit of the institution was ordered last week by State Bank Commissioner Roy E. Hovey the commissioner announced in Boston. He expressed the opinion the bank was fundamentally sound but admitted there were differences in the accounts. Although most of the withdrawals from the bank today were in small amounts, one for 11,000 was reported. The crowd finally became 50 great that Chief of Police T. A. Dolan asked aid from state police. E. L. Smith was treasurer of the bank, and Fred W. Moore, a member of the bank's board of investment, said today that "we asked Mr. Smith to resign but he declined to do SO. He is not serving as treasurer of the bank now." The latest report of the bank's financial condition showed deposits of $5,050,750 and at present, according to officials there is a surplus of about $400,000 and securities of more than $1,000,000 in value.
3.July 17, 1930New Britain HeraldNew Britain, CT
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BANK OPEN TODAY DESPITE SHORTAGE $150,000 Withdrawn in Millbury Case-Treasurer Fired Millbury, Mass., Juyl 1 7(AP) - The Millbury Savings Bank opened for business today despite a run yesterday during which 162 accounts were closed out and $150,000 was withdrawn. A shortage of $6.000 in the mortgage accounts was admitted by officials last night after a meeting attended by State Banking Commissioner Roy A. Hovey. They said they could not tell whether it was due to larceny or mismanagement. The office of Treasurer Ernest L. Smith, who refused to resign, was declared vacant and a committee was appointed to select a successor. The run assumed large proportions quickly. after rumors of the shortage became known, and state and local police aided in keeping the crowds in order. During the day large sums were brought from a Worcester bank.
4.July 17, 1930The Ithaca JournalIthaca, NY
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RUN FAILS TO CLOSE BANK Millbury, Mass., July 17-(P) The Millbury Savings Bank opened for business today despite a run yesterday during which 162 counts closed out and $150, 000 was withdrawn.
5.July 17, 1930The Boston Daily GlobeBoston, MA
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SAVINGS BANK RUN AT MILLBURY ENDS
Officers Invoke 90-Day Clause When Money Rush Continues
MILLBURY, July 17-The run on the Millbury Savings Bank was ended at 11 a m, when the 90-day moratorium clause was invoked under the Massachusetts law for the protection of banks. The run on the bank con- tinued all morning, unabated. At
11 o'clock attorney Thomas Sullivan came out of the bank with a prepared statement. Mr Sullivan summoned the depositors around him and made an explanation. He said that he was not the counsel for the bank, and that he was merely interested in it as a citizen of Millbury. Mr Sullivan proceeded to read the prepared statement. The statement asserted that a meeting of the directors of the Millbury Savings Bank had been held last night, and at the meeting It was voted to declare the 90-day clause in effect. This vote, he said, was ratified this morning by a meeting of the trustees The statement explained that each depositor might get up to $100 of his money by signing a receipt for the amount. More than 200 then filed into the bank to get the $100, or less if their deposits didn't amount to that sum. The balance is to be paid within 90 days. at 10:45. Attorney Sullivan declared, after reading the statement, that he, himself, had money on deposit in the bank, which he intended to keep there. He explained to the depositors gathered around him something about the bank's business. He told them that 70 percent of the bank's money was invested fn real estate first mortgages, and that since the first mortgages could not be converted readily into liquid cash, it would be impossible for the bank to
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6.July 17, 1930The Buffalo NewsBuffalo, NY
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MILLBURY BANK OPENS DESPITE $150,000 RUN
MILLBURY Mass. The Milibury Savings bank opened for business today despite run yesterday during which 162 accounts were closed out and was shortage of $6000 in the mortgage admitted by officials last night meeting attended by Bank Roy Hovey They said they could not tell whether was due to larceny or ment run assumed proportions quickly of became state and local the order. During the day sums were brought Worcester
RAID RUMORS DISCREDITED MILLBURY Mass. July 17 (U.P rumors holdup men planned to raid the homes of workers who had most from the Savings bank added to this today. About 700 accounts were withdrawn in yesterday's on the bank. but during the several persons returned with the deposits. State Bank Roy said there was no danger of the institu-
TO VOTE ON MERGER NEW YORK July 7.-Meetings of stockholders of Pan American PetroleTransport company and Lago Oil & Transport corporation will be held Aug. 18 to vote on an agreement to merge Under the agreement holders of Oil will receive one-half share of Class common American for each share of Lago. About 97 per the are owned now by Pan American.
7.July 17, 1930The News-StarMonroe, LA
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ALL OF POLICE FORCE CALLED BY RUN ON BANK
Reports of Shortage Follow Auditing of Books.
WORCESTER, Mass., July 17.-The entire police force of the town of Millbury was called out today when depositors of the Millbury Savings bank started run on the institution as result of reports of shortage that followed audit of the bank's accounts. Although state banking officials expressed belief the bank was sound, the heavy withdrawals caused transfer of $400,000 from the Worcester County National bank in Worcester to provide funds to meet the demands of the frightened depositors, who included scores of workers from the Millbury An audit of the institution was ordered last week by State Bank Commissioner Roy E. Hovey, the commissioner announced in Boston. He expressed the opinion the bank was fundamentally sound but admitted there were differences in the accounts. Although most of the withdrawals from the bank today were in small amounts, one of $11,000 was reported. The crowd finally became so great that Chief of Police Thomas A. Dolan asked aid from state police.
8.July 18, 1930The Boston Daily GlobeBoston, MA
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TODAY'S GLOBE CONTENTS
Page Mystery found in taking of doors by police at Funeral of Goldsborough at New York today. Mrs Ruth Anderson, shot by her husband, who then committed suicide, improves; jealousy vause, she says. Searchers fail to find any trace Lawrence True, who disappeared Swampscott. Death Notices.
Page 8 Parade and special program to feature Brewster 300th fete. Bethlehem Steel head testifies his salary is $12,000 and "1½ percent. Earl Carroll and three others held for trial in New York on charges of giving Fire at Falmouth results in two injuries. City Treas Lehan of Cambridge says his Russell's letter to City Council charging neglect. Secretary of Navy Adams commends Lieut Lord in rebuilding "Old Ironsides. McCormick inquiry suspends for month. Atty Gen Warner assigns Louis H. Sawyer to open campaign on securities frauds and conferences are held with victims and alleged operators. Page
Replies to Briand's proposal for PanEuropean union reach 20 with arrival of British note. Mayor Russell chats across ocean with Mayor Franklin of Cambridge, Eng. Utilities Commission hears Charlestown Gas consolidation petition; Crowley in opposition. Mrs speaks Florence Vail of Arlington wins $40 week temporary support as divorce action opens. Page 10
National League Results- Pittsburg 6, Boston 2; New 12, St Louis 9; Chicago 6, Brooklyn 3; Cincinnati 14, Philadelphia.9 American League Results- Boston 12, Detroit 2; Philadelphia 12, Chicago Cleveland Washington 3; New York 16, St Louis St Mark's defeats Madden Club, 11-3, and wins Dorchester title. Hub Twi League results. Page 11 A1 Singer wins lightweight title by knocking out Sammy Mandell in first round at New York. Granite Trust defeats National Shaw. mut, 4-0. Osterville rallies in ninth to defeat Hyannis, 8-7. Malden Dorchester game ordered replayed in Greater Boston League. Page 12 Pennsylvania golfers prove real menace the women's invitation golf tournament at Shennecossett Country Club. Oyster Harbor increases lead in Cape Cod Women's Golf Club. Worthy Fletcher wins at Greenfield track. United States soccer team beats Paraguay in world series match. The Sportlight.
Page 13 Barry Wood, star, and Clitford Sutter of New Orleans clash today in Bowl tennis. East vs West in women's tennis singles on Longwood courts today. Eastern Point leads Curtis Cup junior yacht racing with eight points. Mohawk wins South Boston Y. C. twilight races for skippers. Carnera knocks out Bearcat Wright. Page 14 Opening of the fenced Wolcott-sq park in Readville urged by Councilor Norton. Run on Millbury Savings Bank nearly as moratorium of 90 days is declared.
RUN ON MILLBURY SAVINGS BANK ENDS
Depositors Withdraw About $400,000Evans in Charge Until New Treasurer Is
MILLBURY Mass. 18 the Millbury Savings bank today reported Twenty hand when opened inTwo troopers from Grafton racks McCarthy relieved further at Bank said the bank contemplated no anyresult the Clarence Evans, of the Worcester County charge the affairs the bank remain present sitinstalled. Mr. said that been withdrawn depositors. asserted. out the first day mail great as bank officials ticipated.
10.July 18, 1930Bristol Herald CourierBristol, TN
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BANK MUST GIVE 90 DAYS NOTICE TO MILLBURY INSTITUTIONS
Mass. July Roy from his office today said there may be shortage between $5,000 $6,000 the Savings scene run yesterday which resulted the calling police The run the bank threatened continue today the bank availed itself of that provision requiring 90-day notice this action approved by long line depositors waited opening of the bank this mornbut depositor only $100 the balance accounts will be paid within parties want Money to meet the rush with. drawals rushed from Worcester yesterday
11.July 18, 1930Record-JournalMeriden, CT
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Millbury Savings Bank Opens Despite Heavy Run
Millbury, Mass. July 17-(AP) The Millbury Savings bank opened for business today despite a run yesterday during which 162 accounts were closed out and $150,000 was withdrawn. A shortage of $6,000 in the mortgage accounts was admitted by of ficials last night after meeting attended by state bank commissioner Roy A. Hovey. They said they could not tell whether it was due to larceny of The office of treasurer Ernest L. Smith, who refused to resign, was declared vacant and a committee was appointed to select successor. The run assumed large proportions quickly, after rumors of the shortage became known. and state and local police aided in keeping the crowds in order. During the day large sums were brought from Worcester bank.
12.August 1, 1930The Brooklyn Daily TimesBrooklyn, NY
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EX-BANKER ARRESTED
Shortage in Accounts Placed at $6,000 by Examiner.
Worcester, Mass., Aug. 1.-Ernest L. Smith, deposed treasurer of the Millbury Savings Bank, has been arrested here on charges of misappropriation of the institution's funds. After citizens of Millbury learned last July 15 of Smith's removal, they started two-day run on the bank and withdrew more than $200,000. Later of the was redeposited and the bank's business at present is normal. Ira N. Jencks, State Bank ExamIner. estimated the shortage the Millbury Savings Bank as about $6,000.
13.August 1, 1930Mount Vernon ArgusWhite Plains, NY
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BAY STATE BANKER HELD IN SHORTAGE
Millbury Treasurer Accused of Misappropriating Funds
Worcester, Mass., Aug. 1.-(UP) -Ernest L. Smith, deposed treasurer of the Millbury Savings Bank, has been arrested here on charges of misappropriation of the Institution's funds. After citizens of Millbury leraned last July 15 of Smith's removal, they started two-day run on the bank and withdrew more than $200,000. Later most of the money was re-deposited and the bank's business at present is normal. Ira N. Jencks. State bank examiner. estimated the shortage at the Millbury Savings bank as about $6,000.
14.August 5, 1930The Springfield Daily RepublicanSpringfield, MA
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MILLBURY BANK HIRES EX-GREENFIELD MAN
R. D. Lee New Treasurer of Savings Institution Where Run Occurred Aug. 4-Richard D. Lee Malden. native of Greenfield and formerly associated with a Greenfield bank. today assumed his new duties treasurer of the Millbury Savings bank, run on the institution was climaxed by the arrest of its treasurer, Ernest L. Smith. Lee, was born at Greenfield in 1890, was teller at the Franklin bank there for many years before going to Malden assistant treasurer of the Malden Savings Smith, whose position is taken by Lee on $25,000 bail pending a hearing in central district court five counts of larceny totaling from bank. He was relieved his position by order of State Banking Commissioner Roy A. Hovey after the run on the bank started. The Smith the Worcester grand jury later this month. county
15.September 9, 1930The Boston Daily GlobeBoston, MA
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FATE OF BANK HANGS UPON 576 DEPOSITORS
Special Dispatch to the Globe Sept the good will of 576 depositors, who have signified their intention of all their funds, rests the fate of the Millbury Savings Bank which underwent a severe crisis recently during "run" that followed discovery $63,000 If these depositors will revoke their decision to withdraw their money the bank will saved, Jay Clarke counsel for the bank. tonight told 1000 persons from Millbury, Springfield and Boston who attended mass held in the Town Hall. If they persist in their purpose of withdrawing their deposits, Mr Clarke declared, the bank will probably be unable to stand the strain and will be turned over State Bank Commissioner Roy Hovey order that assets may be liquidated to meet the demands of all depositors.
Says Depositors Hold Key Mr Clarke was the principal speaker at the His appeal in the interests of bank the other speakers, John W. chief accountant of the auditing firm which over the books; Leander president of the Mechanics Bank Dennis president of the Bancroft Trust Company of Thomas Sullivan, president the Bay State Bank Worcester, and W. Windle, new president of the Millbury Bank. deposits of the 576 in persons Mr Clarke explained, total $1,010,000. He said that order assure the complete safety of the bank will be necessary 80 percent number the Clarke before tion He estate the bank by changes in taken care of surplus. The shortage he stands covered
Says Institution Is Sound The Mr his sound mands time would tion all hardship persons ous He the forced to the liquidate its and the the expressed the mit to sound special tices will be the positors notices, to and the express the of depositors to their money in the the of meeting the 1000 persons in the officers of the institution.
16.October 14, 1930The Boston Daily GlobeBoston, MA
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BANK CLOSED AT MILLBURY
Said to Be Solvent After Assets Are Liquidated
MILLBURY, Mass, Oct 14 (A. Rahostey took Bank today of Millbury Savings Bank, the doors of which are to be closed until the affairs of the institution have been straightened. It is said to be solvent, if time is given to handle the assets. The owners of the 5,500,000 deposits which will still remain, will, it is believed, according to the bank authorities, get dollar for dollar. The bank is at present earning* its dividends, to Jay Clark who issued this on behalf of the depositors to a total of nearly $500,000 who days tomorrow notice of withdrawal will not get their gave money any sooner that other also representing $500,000 of group who days' tice and withdrew it. All depositors will share alike. Before the run on the bank which followed the discovery of irregularities the of Ernest Smith, then part treasurer in State Prison for his crimes, deposits totaled Almost immediatel upward of $50,000 withdrawn in run which started with the very quickly to the positors and holders of larger To protect depositors whole the trustees took advantage of the statute which compels 90 days' $100. withdrawals These notices will begin to expire to. morrow.
17.October 15, 1930The Springfield Daily RepublicanSpringfield, MA
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MILLBURY SAVINGS BANK IS DECLARED SOLVENT
State Commissioner Hovey Takes Charge No Losses Are Expected
Millbury, Oct. 14- (AP) -Bank Commissioner R. A. Hovey took possession today of Millbury Savings bank, the doors of which are to be closed until the affairs of the institution have been straighter-ed It is said there is no intention of liquidating. The bank is said to be solvent if time is given to handle the assets. The owners of the $5,500,000 deposits which will still remain, will, it is believed, according to the bank get dollar for dollar. The bank at earning its dividends according to Atty Jay Clark, Jr., who issued this statement on behalf of the trustees. But depositors to total of nearly $500,000 who 90 days ago tomorrow gave notice of withdrawal, will not get their money any sooner than that other group also representing $500,000 of deposits who also gave the 90 days notice and withdrew it. All depositors share alike. Before the run on the bank which followed the discovery of irregularitles on the part of Ernest L. Smith, then treasurer, now in state prison for his crimes, deposits totalled upward of $6,000,000. Almost immediately upward of $50.000 was withdrawn in a run which started with the small depositors and quickly extended to the holders of larger amounts. To depositors as a whole the trustees took advantage of the statute which compels 90 days notice of withdrawals of sums in excess of $100. These notices will begin to expire tomorrow.
18.October 15, 1930The Boston Daily GlobeBoston, MA
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STATE TAKES OVER BANK AT MILLBURY
Pres Wendle Plans to Pay Folk Out of Own Fund
MILLBURY, Oct 14-It was nounced today that the Millbury Savings Bank, which is regarded as solvent, will be taken by Bank Commissioner Roy A. Hovey and state agent will be placed in charge temporarily. The bank will still continue to action was taken early tonight after the had been in session the day. During the meetthe resignation of Richard D. Lee, formerly ing of the Malden Savings Bank, accepted. reason given. He was treasurer only two ago. William W. Wendle, president of the institution, today that he will pay $35,000 Christmas Club will posits from his own funds. He make the payments, when they come due, shortly before the holiday The doors of the bank will remain open despite all the difficulties the institution has The money of the be fully tected and, that they will receive dollar for dollar. The tire trouble followed the discovery irregularities on the of Ernest Smith, then treasurer, now in State Prison, when run on the bank was started by the small depositors.
19.October 28, 1930The Boston Daily GlobeBoston, MA
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FEW ASK FOR LOANS AT MILLBURY BANK
New Treasurer Takes Over Duties at Reopening
Special Dispatch to Globe MILLBURY, Oct 27-The Millbury Savings Bank, which suspended business on July 17, following the declaration of a 90-day moratorium against withdra resulting from run started when it was discovered that the treasurer, Earnest L. Smith, was short in his accounts, was opened for business this afternoon under the nanagement of a new treasurer, John H. Maxwell of West Somerville. The depositors are still unable to withdraw their accounts, but are permitted to borrow up to 75 percent of their deposits. About dozen depositors were when the bank doors and borrowe funds, most of them to pay taxes and other such bills. There was nothing like the number expected to make loans. Mr Maxwell, the who was elected last Saturday, was many bouquets by friends he has made town since he came here last July to conduct the investigation, which revealed Smith's shortage.
20.December 17, 1931The RepublicanSpringfield, MA
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MILLIONS PLEDGED
Continued from Page One notice posted at the bank's en caused by public the assets the due course depositors the Boston bank have asked the rency take of the institution.
Williams, chief bank examiner temporary charge closed aided Her receiver the Federal bank, was present the bank Pearson that as far could learned National affiliated closed He said that he staff that Schramm Jersey, mem Trust was the tution today The Clearing House banks sent Credit corporation. the branch of the national group. sent of sent $300,000 on deposit in the National it the State House. 90 Day Notices Posted posted today the banks in Lowell the savings department of the Trust company and the Millbury Savings bank, at the bank commisThe National bank of five city According the bank commissioner's the July last, amounted to The paid capital December, 1930, the Boston National
21.December 18, 1931The Springfield Daily RepublicanSpringfield, MA
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HAMDEN (CT.) BANK ALSO CLOSES DOORS
90-Day Clause Invoked in State ton Bank Stockholder Promises Pay in Full
Boston, Dec. banks New England closed their doors day as the result of heavy withdraw-
The institutions which either did not open for business which closed late the the nental National Boston: the Hamden Bank and Trust company of Hamden, Ct., the Arlington Trust company and the Plymouth County Trust company of Brockton. The financial status the banks at time official statements tinental, capital stock $1,000,000, surplus, ArlingTrust, deposits County, deposits of $3,816,Another Boston bank, the Grove Hall that bank open again meet The after all-day run the advice Bank Arthur Guy. Invoke Clause
The banks Lowell the saving department the Trust company Boston the Millbury Savings bank 90-day banks require notice of intent funds. The officials dinarily heavy caused by general order the assets the bank, orderly pay full. the the Bostonbank the troller currency to take possesthe president the bank, Terrell and youngest in would the ordinary on dollar would be paid depositors. We
22.December 18, 1931The Springfield Daily RepublicanSpringfield, MA
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FOUR BANKS CLOSE IN MASSACHUSETTS AND CONNECTICUT
Lawrence and Boston, Brockton Institutions Affected by Runs
HAMDEN (CT.) BANK ALSO CLOSES DOORS
Clause Invoked in State Bank Stockholder ton Promises Pay in Full
Boston. Dec. banks in New England closed their doors tothe result of heavy withdrawday als.
The institutions which either did not open for business which closed the day the nental National bank of Boston: the Hamden Bank and Trust of Hamden, company and County Trust financial status the banks at The the time their last official statements capital tinental, stock surplus, assets ArlingTrust deposits County, deposits of $3,816,Boston the Grove Another Hall Savings closed the bank would again meet action was taken after all-day and upon Arthur Guy. Bank Invoke Clause bank at Lowell The the department Trust company Boston the Millbury Savings bank the Millbury banks 90-day clause notice of intent require funds. The officials withdrawals caused dinarily heavy uneasiness and order general public conserve the assets of the bank. which. in course orderly liquidation, should pay all full, the Bostonbank the troller currency to take possesthe The president the bank, Terrell M. Ragan, 37 years old and reported the youngest president in said, would expected that through the ordinary cents on dollar would be paid depositors. We
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