Article Text
Cleveland, O., March 31-The Fed. eral Trust Co. assigned today. Officers say depositors will lose noth. ing.
Federal Trust Company (Cleveland, OH)
Episode Information
- Episode UID
7246619491251- Episode Type
- Suspension → Closure
- Bank Type
- trust
- Bank ID
-
724661949hash - Start Date
- March 31, 1904
- Location
- Cleveland, Ohio (41.499, -81.695)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
440618d37d122594
Response Measures
None
Description
Assignment to Guardian Trust company following disappearance/shortage of treasurer; appears to be permanent.
Events (4)
1.
March 31, 1904
Other
- Newspaper Excerpt
- The Federal Trust company has made an assignment to the Guardian Trust company.
- Source
- newspapers
2.
March 31, 1904
Receivership
- Newspaper Excerpt
- The Guardian Trust Company has assumed all the business of the Federal Company.
- Source
- newspapers
3.
March 31, 1904
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Disappearance of secretary-treasurer George (G.) Clewell and discovery of shortages/embezzlement in accounts precipitated assignment.
- Newspaper Excerpt
- The Federal Trust Co. assigned today.
- Source
- newspapers
4.
April 2, 1904
Other
- Newspaper Excerpt
- Warrant out for Federal Trust Co. official; Clewell charged with embezzlement and arrested.
- Source
- newspapers
Newspaper Articles (12)
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BANKS CLOSE TWO BIG FINANCIAL INSTITUTIONS SUSPEND OPERATIONS (By Scripps News Ans'n.) CLEVELAND O., March 31.-The Federal Trust Company, supposed to be one of the strongest banking Institutions in this city, assigned this morning. Its deposits exceed $800,000. The assignment was decided on because Secretary-Treasurer Clewell is out of the city and officers are unable to locate him or to understand his absence.
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BONDS. 103% North Pac 4s ½ + AT&SFg4s.101% * Reading gen 4s 96% B & gold 4s 102 SL&S ref 4s. 82½ Chic B & 4s 94 % + SLSW con 4s.. 72% 1/4 CRI&PRR + 1/2 Un Pac conv 4s... 98% Col T 5s. 79 75% U S Steel 5s 59½ Consol Tob 4s 14 611/4 Wabash D Bs KCFS&M4s. 80% STOCK MARKET OPERATIONS. Transactions in yesterday's stock market were made up in great part of the operations of the professional element and sales by dealers who decided to convert paper profits into cash. The board room element was bearish throughout the day, and in the absence of a public demand for securities early efforts to reduce prices met considerable success, although the reaction was not effective in bringing a large amount of stock on the market. There were no news developments of sufficient importance to induce liquidation, but the room traders thought that the trust company failures in Cleveland and Boston warranted an attack on values. These failures were not large enough to be classed as influential factors in the general financial situation, but, of course, the theorizing speculator immediately saw in the trust company troubles indications of serious disturbances in similar institutions in other parts of the country. The local banks are not affected in any way by the suspension of the Federal Trust Company in Cleveland, or by the failure of an unimportant concern in Boston. As a matter of fact, the stock market was ripe for a reaction, and the decline was due to technical conditions rather than to developments outside of the Exchange. Vigorous efforts have been made in the last few days to boost prices, and moderate improvement has been recorded, but the so-called public has not responded to a noteworthy degree, while, according to the reports from commission houses, there is nó immediate prospect of enthusiastic interest in speculation from that quarter. Important market operators are undoubtedly working to bring about a higher quotation level, and for this reason the ordinary trader ought to be extremely careful in selling stocks short. It is said that there is still a large short interest in Union Pacific. In well informed circles the tip has gone forth to hold Southern Pacific, but no reason is given for the belief that a higher price will be recorded in the near future. Southern Pacific, however, is not selling at an exorbitant level, and people who own the stock may act wisely in maintaining a tight hold of the issue, although profits may be a long time in coming. St. Paul, which has enjoyed improvement in the last week, is certainly entitled to its gain, and conservative operators believe that eventually this issue will sell far above its current level. The report of a close alliance between the St. Paul company and the Union Pacific, other than the trackage alliance already in operation between the two companies, is apparently dying a natural death, and the chances are that the attempt to convince the public that a new era of railroad consolidation is about to develop will end in miserable failure. The intrinsic value of securities, as a rule, is greater than the present market prices. Efforts to stimulate quotations through the medium of Wall Street fairy tales will injure the market and reduce the chances of a genuine bull movement in prices, and it is encouraging to note that the public shows no disposition to be gulled by the purveyors of false information. Conditions underlying the investment situation are favorable, and the time will come when the market will rise in response to the factors governing the actual worth of securities. People with ready money may find it advisable to buy stocks on all reactions. In the last hour of trading prices exhibited a rallying tendency from the low figures of the day, especially in St. Paul, Union Pacific, People's Gas and United States Steel preferred, in which the shorts appeared anxious to cover their outstanding contracts. As a result of this movement the greater number of issues recovered their early losses, closing at small fractional gains. People's Gas showed exceptional strength, ending at a net advance of 2 per cent on rumors that the company would win in its pending case in the United States Supreme Court. As to-day will be a holiday on the local exchange the weekly movement of money was compiled yesterday afternoon, and it is interesting to note that the loss of the banks to the Sub-Treasury has been offset by a gain from the interior. Unless, therefore, there has been a large increase in loans and deposits in the week, to-morrow's statement of the Clearing House banks ought to show an increase in the reserve above legal requirements.
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LEADING OFFICIAL MISSING FEDERAL TRUST COMPANY OF CLEVELAND MAKES AN ASSIGNMENT. Cleveland, April 1.-The Federal Trust company has made an assignment to the Guardian Trust company. The action is stated to have been taken as a result of the disappearance of a prominent official of the Federal Trust company. Reports are in circulation that a shortage has been found in the funds of the concern. While no statement has been filed as yet by the Federal company it is understood it will turn over about $1,000,000 in deposits to the assignee. Its total assets will be about $3,000,000. According to the last report it had $2,188,362 in loans and discounts, $15,000 real estate loans and owned $729,000 stocks, bonds and mortgages. Its last statement showed individual deposits of $1,593,328, but officials state the deposits are about $1,000,000 at present. An agreement was practically reached between the directors of the Federal Trust company and the Guardian Trust company several days ago providing for the merging of the two concerns. The disappearance of the official of the Federal company, however, precipitated matters and the drectors decided that an assignment would' probably avoid a run on the bank and protect all interests. Officials of both of the trust companies declare positively that no depositor will lose a. penny as a result of the assignment. It is also stated that the shortage in the accounts of the Federal Trust company will subsequently not exceed $20,000.
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TREASURER IS GONE. Warrant Out for Federal Trust Co. Official. Cleveland, O., April 2.-The Bankers' Surety company, which is on the bond of George T. Clewell, the missing secretary and treasurer of the assigned Foderal Trust company, has obtained a warrant for his arrest. A check for $8,100 cashed by Mr. Clewell last Sunday was found in a package of currency today marked to contain $10,000. Only $1,900 of the $10,000 remained in the package. Another discrepancy of $10,000 in the bank's accounts will be made good by the check of the Bankers' Surety company when it pays Clewell's bond for $10,000. It is believed by the officials of the Guaranty Trust company, the assignees, that no further irregularities will be discovered. Mr. Clewell has been missing from his home in this city since Saturday.
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WARRANT FOR BANK BREAKER. CLEVELAND, Ohio, April 2-The surety company which is on the bond of George F. Clewell, the missing secretary and treasurer of the assigned Federal Trust Company, was today given a warrant for his arrest.
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MISSING SECRETARY CHARGED WITH EMBEZZLEMENT. CLEVELAND, O., April 2.-A warrant charging embezzlement of $10,000 from the Federal Trust company, which assigned Thursday, was sworn out today against George Clewell, the missing secretary of the concern, by President Gilchrist.
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ALLEGED ABSCONDER IS TAKEN INTO CUSTODY Clewell, of Cleveland, Tracked by Surety Company Sleuths, Is Arrested at Keokuk. FRIENDS READY TO AID CLEVELAND, O., April 4.-A telegram was received by Chief of Police Kohler late this afternoon from Chief Franz, of the St. Joseph, Mo., police department, announcing that George F. Clewell, the missing secretary and treasurer of the recently assigned Federal Trust Company of Cleveland, had been arrested there. The charge against Clewell was a shortage of $10,000 in his accounts with the Federal Trust Company. The warrant for his arrest had been sworn out by J. C. Gilchrist, the president of that company, and it was placed in the hands of the Bankers' Surety Company, which was on Clewell's bond in the sum of $10,000. The latter company immediately set its secret service to work to apprehend Clewell and have him returned to this city. Just why Clewell went to St. Joseph is not known; he is not known to have any relatives in that city. The last person who saw Clewell prior to his sudden disapperance a week ago Saturday was his brotherin-law, Arnold Kahle, who met Clewell on a street corner while the latter was waiting for a car to go down town. The conversation between Clewell and Kahle disclosed the fact that Clewell was disappointed at the pending absorption of the Federal Trust Company by the Guarand the his accorddian position Trust by Company the change. Clewell, loss of ing to Kahle, considered this a disgrace that he was unable to bear. some that It had been arranged time ago the Guardian Trust Company and the Federal Trust Company were to combine their business, the latter company to be absorbed, but rumors of irregularities in the accounts of the Federal Company made an assignment necessarry before the programme for the consolidation could be carried out. The Guardian Trust Company has assumed all the business of the Federal Company, and other than the disappearance of Clewell the matter has been regarded as a closed incident. If Clewell will return without a requisition he can be brought here within a day or two; if he demands that formality his arrival will be delayed perhaps a week. Clewell's friends have raised a fund and stand ready to make good any discrepancies he left in his accounts at the Federal Trust Company. It is said to be the purpose of Clewell's friends to prevent, if possible, prosecution by the bank. Clewell's shortage, so far as known, amounts to $18,100.
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MISSING TREASURER CAUGHT. George H. Clewell, of Cleveland, Are rested In St. Joseph, Mo. Cleveland, April 4.-A dispatch to Chief of Police Kohler of this city announces the arrest at St. Joseph, Mo., this afternoon of George H. Clewell, the massing secretary and treasurer of the assigned Federal Trust company of this city. Friends of Clewell have raised a fund and say they stand ready to make good any discrepancies he left in his accounts. The shortage so far as known amounts to $18,100.
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WILL NOW BE GOOD CASHIER OF FAILED TRUST COMPANY WILL RETURN TO CLEVELAND WITHOUT TROUBLE. Thinks His Shortage Will Amount to Eighteen or Twenty Thousand Dollars, and That He Was Led Into Irregularities to Lift Mortgage on His Home. St. Joseph, Mo., April 5.-George Caldwell, cashier of the Federal Trust company of Cleveland, O., today said he would not resist requisition. He said he thought his shortage would amount to $18,000 or $20,000, and that he was led into the irregularities to meet the mortgage on his home. Clewell fled a week ago, just before the company suspended. The warrant charges him with embezzling $18,000.
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Clewell Captured at St. Joseph. CLEVELAND, O., April 5.-A dispatch to Chief of Police Kohler of this city announces the arrest at St. Joseph, Mo., of George F. Clewell, the missing secretary and treasurer of the assigned Federal Trust company of this city.
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FORMER TRUST OFFICER HELD. George F. Clewell, Wanted at Cleveland on Embezzlement Charge, Is Arrested. Cleveland, O., April 5.-Chief of Police Kohler received a telegram from Chief Franz of St. Joseph, Mo., announcing that George F. Clewell, the missing secretary and treasurer of the recently assigned Federal Trust company of Cleveland, had been arrested there. The charge against Clewell was a shortage of $10,000 in his accounts with the Federal Trust company.