7872. Dorchester Trust Company (Boston, MA)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
trust company
Start Date
September 27, 1920
Location
Boston, Massachusetts (42.358, -71.060)

Metadata

Model
gpt-5-mini
Short Digest
cc688ca3

Response Measures

Partial suspension

Description

Multiple contemporary articles (dated Sept 27–28, 1920) report that the Dorchester Trust Co. had been under a run for several days and invoked the 90-day notice law for savings withdrawals to stop the rush. There is no clear article here saying the Dorchester Trust permanently closed or was placed in receivership; only that the savings departments were suspended (90-day moratorium) and commercial business continued. Because no explicit reopening or permanent closure for Dorchester is reported in these items, I classify as run_suspension_unsure. Cause attributed to public unrest after the Ponzi collapse and the closing of other local banks (information about other local banks).

Events (2)
1. September 27, 1920 Run
Cause
Local Banks
Cause Details
Public uneasiness and heavy withdrawals triggered by the recent closing of several Boston banks and the Ponzi financial fiasco; runs on other local banks.
Measures
Invoked law requiring 90 days' notice for withdrawals from the savings department (moratorium to stop rush).
Newspaper Excerpt
There has been a run on the Dorchester Trust Co. for several days.
Source
newspapers
2. September 27, 1920 Suspension
Cause
Local Banks
Cause Details
Bank invoked 90-day notice requirement for savings withdrawals to halt the run caused by panic after other local bank closings and the Ponzi collapse.
Newspaper Excerpt
Three Boston banks invoked the law which makes it possible to require ninety days' notice of withdrawals from the savings departments ... the invocation of the law there stopped the payments.
Source
newspapers

Newspaper Articles (18)
1. September 27, 1920 The Brattleboro Daily Reformer Brattleboro, VT
Article from The Brattleboro Daily Reformer, September 27, 1920

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Tremont Trust and Fidelity Trust Invoke 90 Days' Notice for Withdrawal BIG RUNS STARTED THIS MORNING Ponzi Crash Clearly Reflected In Temporary Closing of Five Boston Institutions - None of Them Members of Federal Reserve System. BOSTON, Sept. 27.-Several hundred persons had gathered outside the offices of the Tremont Trust Co. when the doors were opened at 8.45 a. m., 15 minutes before the usual hour and lines quickly formed before the several paying tellers' windows. After withdrawal had been going on steadily for nearly an hour with the crowd const ntly increasing the bank officials annoanced that the law permitting a bank to require 90 days' notice for withdrawal from the savings department would be invoked forthwith "for the protection of the depositors. The regulation would be withdrawn "as soon as the public calmed itself' it was announced. "We have plenty of money to pay everybody, officials said, "and were prepared to do SO this morning, but the crowd became SO large that it was impossible to handle them and we invoked the law for the protection of the depositors, not for our own protection." Upon opening for business today the Fidelity Trust Co. served notice on depositors that it would take advantage of the law permitting them to require 90 days notice of withdrawal from the savings department. It was stated at the bank that this was done upon the direction of the bank commissioner. At the office of the latter it was said that the taking of this action was optional with the bank. The run on the Tremont Trust Co. was participated in by hundreds and the proportions of the crowd became 80 great that police were called to keep the crowd in order The bank tried for an hour to meet the claims against it and officials announced there was money on hand to pay all, but the crush became so great that Vice President Simon Swig announced that the 90-day notice would be required. At the Fidelity Trust Co. which also has offices in the downtown district the run was in smaller volume but the law I was called upon, it was stated, "to al low the public to recover from the prevailing unrest. There has been a run on the Dorchester Trust Co. for several days and the invocation of the law stopped it. f The virtual suspension of payment temporarily by the savings deposits of these three banks follows the closing of five banking institutions in this city within the past two months by Bank Commissioner Allen. In no case was e the bank a member of the federal reserve system. State officials say that the Ponzi crash i was clearly reflected in the troubles of the several banks which had been under r a run by depositors. In each case, ex cept that of the Hanover Trust and the small affiliated private banks, it has been 1 indicated that the banks were solvent but lacked ready cash to meet the de mands of alarmed depositors. At at three of the banks which suspended pay ments in their savings deposits it was an nounced that business in the commercial a departments would continue as usual. Governor Coolidge conferred with State Treasurer James Jackson and e Bank Commissioner Allen regarding the a only banking situation today. The it statement issued at the conclusion of the IS conference was by the governor, who said: "Some time ago I advised all bis banks in Boston that plans should be worked out through which there would gs ed be co-operation among all the banks. clearing house committee is now working he out details of such a plan."

2. September 27, 1920 The Barre Daily Times Barre, VT
Article from The Barre Daily Times, September 27, 1920

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THREE BOSTON BANKS, SUBJECT TO RUNS, TOOK REFUGE IN 90-DAY LAW the latter it was said that the taking of this action was optional with the Although Gold and Other CORK SHAKEN banks. This morning the Tremont Trust Money Was Piled Up in company ady tised that it would pay all depositors on demand and a crowd BY EXPLOSION Plain Sight of Depositors of hundreds flocked to its doors to get their money. Sidewalks were jammed, and the Bank Officials the streets were crowded, and an at tempt to get the people to line up Were Confident of SecurAnti-Sinn Fein Spirit Finds failed. Milling began in the front of the crowd as they were pressed to ity, the Public Formed Vent By Setting Off ward the doors and mounted policé rode through the crowd to keep it in Rush Lines. of Bomb order, while officers on foot were lost in the mass. For an hour the lines were kept movLARGE STORE WAS ing into the bank and payments were TREMONT TRUST CO., made but the crush became 80 great BADLY WRECKED that the windows were closed and noDORCHESTER TRUST tice of suspension of payment was given. FIDELITY TRUST CO. Vice-President Simon Swig, then Rifle Fire Rattled in Varimade the following announcement: "To protect the public from injury ous Parts of the City by congregating in front of the bank, Bank Commissioner Allen we have decided to invoke the law. reAfter Explosion quiring ninety days' notice for withAdvised Resort to the drawal of savings. "We have the money and are preCork, Sept. violent explosion Law Which Requires 90pared to pay anybody and everybody shook this city about two o'clock this who comes along, but in order to as morning. It was followed by the ratDay Notice Before Withsure that nobody is hurt we are taktle of rifle fire in various parts of the ing this step. business district. drawal of Funds-All of "Just as soon as calm is restored, we shall pay depositors as usual." When the townspeople ventured forth Them Are Believed to Be The small crowd that left business later in the morning, after the curfew and homes to be at the Fidelity Trust had expired, they found the main Able to Meet Calls. company at the opening hour in order thoroughfare, Patrick street, littered to get their money from its savings department, met with the notce that with glass, and the front of a large the ninety-day requirement had been department store, which is said to em Boston, Sept. 27.-Public unrest over invoked, and none was paid out this ploy a large number of young Sinn morning. The Fidelity is one of a banking conditions to-day caused a Feiners, wrecked as if by bombs. chain of banks with which President run on some institutions with the reMcKnight has been identified but no Windows were smashed in the upper sult that the Tremont Trust company, reports of protective action came from stories of almost every store in the the Fidelity Trust company and the any of the other institutions. vieinity. The statement tao Fidelity savings Dorchester Trust company invoked the At military headquarters it was said depositors was: law which makes it possible to require After consultation with Joseph C. that a preliminary report showed there ninety days' notice of withdrawals Allen, commissioner of banks, the Fiwere no military patrols near the from the savings departments, in ordelity Trust company has decided to wrecked store at the time of the exavail itself of the law which permits der to stop the rush of frightened deplesion, but that troops were hastened demanding ninety (90) days' notice for to the scene. They were fired on by positors. withdrawal of deposits in our savings snipers from the roof of the store. acThe run on the Tremont Trust com department. cording to the report, and the soldiers pany was participated in by hundreds "In order to allow the public suffireturned the fire with several volleys. and the proportions of the crowd becient time to recover from the pre; A military guard was stationed at the store. came so great that police, mounted vailing unrest and for the protection of and afoot, were called upon to keep its depositors and borrowers as a The theory of both the military and the crowd in order. The bank sought whole, the Fidelity Trust company acthe police is that a bomb was placed for an hour to meet the claims against in a show window from the inside, but cordingly announced that it will perit, and officials announced there was mit withdrawals in its savings departthis is controverted by the owner. Half money on hand to pay all. but the ment in ninety (90) days after such a dozen employes who were sleeping notice. crush became so great that Viceupstairs in the rear of the premises President Simon Swig announced that were badly shaken. but so far as is "We are prepared to take care of all the ninety-day notice would be reknown no one was hurt. either by the business in our commercial depar ent as usual." quired. explosion or the subsequent fusilades. At all three of the banks which susAt the Fidelity Trust company, Intense excitement prevails. which also has offices in the downpended payments in their savings deown district, the run was in smaller partments, it was announced that busik All Behind the Party. volume, but the law was called upon, ness in the commercial departments F The newspapers of Vermont which was stated. "to allow the public to would continue as usual. Bond offit supported candidates other than James recover from the prevailing unrest." cials, however, said that they felt that Hartness, are congratulating the There has been a run on the Dorchesthe uneasiness over recent developSpringfield man on his victory and ter Trust company for several days; ments in the banking situation here and the invocation of the law there give unmistakable signs that they will was largely among persons with small support him loyally in his contest stopped the payments. savings accounts, and that there would H against the Democratic nominee. Officials of the institutions in several be no considerable demands for conThey are taking the natural course. instances announced by statement or verting commercial accounts into cash. It was one of Mr. Hartness' hard and advertisement that there was no

3. September 27, 1920 The Evening World New York, NY
Article from The Evening World, September 27, 1920

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RUNS ON BOSTON BANKS CHECKED Three Trust Companies Demand 90 Days Notice of Withdrawals. BOSTON, Sept. 27.-Public uneasiness over local banking conditions to-day caused runs on some institutions with the result that the Tremont Trust Company, the Fidelity Trust Company and the Dorchester Trust Company invoke the law which makes it possible to require ninety days notice of withdrawals from the savings departments in order to stop the rush of frightened depositors. The run on the Tremont Trust Company in Court Street was participated in by hundreds, and the proportions of the crowd became so great that the police, mounted and afoot, were called to maintain order. At the Fidelity Trust Company the run was far less serious. There has been a run on the Dorchester Trust Company for several days.

4. September 27, 1920 The Caledonian-Record Saint Johnsbury, VT
Article from The Caledonian-Record, September 27, 1920

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Three Boston Banks Suspend Payments (Continued from page one) was said, the taking of this action was optional with the banks. The run on the Tremont Trust Co. was participated in by hundreds and the proportion of the crowd became so great that police mounted and afoot were called to keep the crowd in order. The bank tried for an hour to meet the claims against it and officials announced there was money on hand to pay all, but the crush became so great that vice president Simon Swig announced that the 90-day notice would be required. At the Fidelity Trust Co. which also had offices in the downtown district the run was of small volume but the law was called upon. It was stated "to allow the public to recover from the prevailing unrest." There has been a run on the Dorchester Trust Co., for several days and the invocation of the law there stopped the payments. The virtual suspension of payments of these three banks follows the closing of five banking institutions in this city within the past two months by Bank Commissioner Allen. In no case was the bank a member of the Federal Reserve system. State officials say that the Ponzi crash was clearly reflected in the trouble of the several banks which hda been under a run by depositors. In each case except that of the Hanover Trust and the small affiliated private banks it has been indicated that the banks were solvent but were lacking ready cash to meet the demands of depositors. At all three of the banks that suspended payments in its savings department is was announced that transactions in the commercial department would proceed as e usual. Gov. Coolidge conferred with State treasurer James Jackson and Bank Commissioner Allen regarding the banking situation. The only statement issued was made by the governor, who said: "Some time ago I advised all big banks in Boston that plans should be worked out through which there would be co-operation between all the banks. A clearing house committee is now working out details of such a plan."

5. September 27, 1920 The Bridgeport Times and Evening Farmer Bridgeport, CT
Article from The Bridgeport Times and Evening Farmer, September 27, 1920

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PEOPLE DEMAND SAVINGS FROM BOSTON BANKS Boston, Sept. & 27.-The Tremont Trust company and the Dorchester Trust comapny today established moratoriums, by which depositors will be required to wait 90 days before withdrawing funds. Officials of both companies declared their institutions were sound and that the moratoriums were established to "protect the people from themselves.' Payment of funds was stopped at the Tremont Trust company branch on Warren street, Roxbury, shortly after the opening hour., Crowds of apprehensive depositors had gathered outside the Tremont company's Court street office and the State street headquarters of the Fidelity hours before the opening time. will be greeted by the flower The run on the Tremont Trust Co. started Saturday following the closing by State order of the Cosmopolitan company, the fourth bank to be closed since the bursting of Charles Ponzi's get-rich-quick bubble. A crowd of men and women was lined up outside the Tremont Trust company in Courts treet today. Thirty police were on duty keeping the people in order and protecting them from pickpockets. Mounted police kept a lane through Court St. clear for traffic. The line extended in twos from the bank down Court street and Franklin avenue to Cornhill and in the other direction up Court street to Tremont Row. Smaller and somewhat less demonstrative crowds were gathered outside the Tremont Trust branch in Roxbury and the Fidelity Trust company on Summer street. Thomas J. Boynton former United State's Attorney and an officer of the Tremont Trust addressed the gathering on Court street, assuring them that the 90 day close was invoked for their protection and that all would get their money. Applause greeted soynton's re. marks but the crowd did not move away. Several more "inactive" officials connected with Boston banks are likely to be dropped it was learned today following the order of Bank Commissioner Allen that the Old South Trust company dispense with the services of former Governor Samuel W. McCall recently named on the federal tariff commission. McCall was appointed chairman of the Old South's board of directors shortly before the bank reopened on July. receives a salary of $8,000 for his services.

6. September 28, 1920 The Chattanooga News Chattanooga, TN
Article from The Chattanooga News, September 28, 1920

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Six Boston Banks Closed in 2 Months Commissioner Takes Over Affair of Fidelity Trust Company. Boston, Sept. 28.-Bank Commissioner Allen today took over the affairs of the Fidelity Trust company. His action marked the closing of the sixth banking Institution in this city within two months. The others were the Hanover Trust company. of which Charles Ponzl, the "financial wizard." was director and largest individual depositor. the Prudenital and Cosmopolitan Trust companies and two small private banks. The capital of the Fidelity is $3,000.000. and according to the latest available statement from the company. had a surplus of $700,000. Its deposits totalled about $18,000,000. James G. Ferguson, its president. is affiliated with several other financial and industrial institutions as is Edwin T. McKnight. the vice-president. The latter is president of the state senate. The Fidelity Trust company was one of three banks which yesterday invoked the law requiring ninety days' notice for withdrawal of savings deposits. The reasons for the closing of the bank, Commissioner Allen said, were "the steady withdrawals of deposits and slow and doubtful loans. At the Tremont Trust company a small crowd gathered before the opening hour, but the police had no dimculty in keeping order. The bank continued business in its commercial dedepartment were require to give ninety department were required to ninety days' notice of intention to withdraw. The same situation existed at the Dorchester Trust company.

7. September 28, 1920 Richmond Times-Dispatch Richmond, VA
Article from Richmond Times-Dispatch, September 28, 1920

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ALARMED DEPOSITORS RUSH TO BOSTON BANKS Three Institutions Invoke Law for Ninety-Day Notice of Withdrawals. LACKED CASH FOR ACCOUNTS Governor Coolidge Assures Public Funds Are Safe-Fidelity Trust Company to Be Taken Over by State Officials. (By Associated Press. BOSTON, Sept. 27.-Three Boston banks were forced today to invoke the law requiring ninety days' no. tice of withdrawals from the savings departments, as a measure of protection from depositors who had become alarmed over local banking conditions as a result of the closing of five banks in the last two months and the Ponzi financial flasco. Officers of all three. the Tremont Trust Company, The Fidelity Trust Company, and the Dorchester Trust Company. asserted that their Institutions were solvent, but lacked cash to meet the heavy demands made upon them by thousands of depositors who desired to withdraw their accounts at once. The bank officers were joined by Governor Coolidge, Bank Commissioner Joseph C. Allen, and city offlcials in statements assuring the public that the Boston banks were in sound condition and that funds intrusted to them were safe. At all three of the banks which suspended payments in their savings departments, it was announced that business in the commercial departments would continue as usual with no ban on withdrawals there. Action suspending payments in the savings departments was taken this forenoon, after hundreds had crowded the banking offices to withdraw their accounts, and the bank officials had surveyed the situation and seen frightened depositors gathering outside their offices until police details were required to keep them in control. The bank officials acted entirely upon their own initiative and without suggestion from Commissioner Allen, it was announced. The Fidelity Trust Company, one of the banks which invoked the ninety day clauses covering the withdrawal Of savings deposits today, will be taken over by the State Bank Commissioner tomorrow morning, according to a statement tonight by Commissioner Joseph C. Allen. The commissioner made the announcement at the close of a conference with officers of the trust company, State Treasurer James Jackson and Henry A. Wyman, former Attorney-General, who is acting as Mr. Allen's legal adviser. "The reasons which make necessary this step," Mr. Allen said, "are the same which brought about the closing of the Cosmopolitan Trust Company, namely, the steady withdrawal of deposits and slow, doubtful loans." Mr. Allen said that the case of the Fidelity Trust Company was the only one discussed at tonight's conference, and added that nothing was said about the several banking institutions affiliated with that bank. He expressed the belief that the general bank situation "was improving every day."

8. September 28, 1920 Arizona Republican Phoenix, AZ
Article from Arizona Republican, September 28, 1920

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DEPT GOV. CAMPBELL FLAYS STATE LAND Three Banks in Mining Engineer THOUSANDS GREET GIVEI IS EXECUTIVE CHIEF COX DISAPPROVES Boston Suspend Reports Mexican REPUBLICAN CHIEF Bandits Active Saving Payments A SPLENDID RECEPTION A' [Republican A. P. Leased Wire] [Republican A. P. Leased Wire] ON, MARYLAND TOUR BURLESON-KNOXBOSTON, Sept. 27-Three Bos. BISBEE, Ariz., Sept. 27ton banks were forced today to enFranklin B. Harding, chief convoke the law requiring 90 days' notice of withdrawals from the sulting engineer for the Chicago ROUSING REPUBLICAN RALLY Senator Harding Outlines Policy for Sound Business savings departments as a measure Exploration and Development corPALMER RULE IN of protection from the depositors Administration and Reconstruction Plan poration, who returned from the who had become alarmed over local company's property at Tonichi, banking conditions as a result of (Republican Associated Press Leased Wire) Ralph H. Cameron and Other Candidates Speak-E Sonora, Mexico, today stated to the the closing of five banks in the last BALTIMORE, Sept. 27-Before a throng which two months and the Ponzi finanthusiastic Crowd That Fills Every Inch of Stadiu Associated Press correspondent cial fiasco. Officers of all three, CABINET AFFAIRS taxed the capacity of the Baltimore armory and voiced that during his stay at that place With Hundreds Standing Wait Until Late Hour the Tremont Trust company, the a band of outlaws attacked the Fidelity Trust company, and the its approbation in repeated crashes of applause, Senator I Hear the Governor Give Accounting to People town, which is located south of the Dorchester Trust company, assertCox Tells Omaha Audience Warren G. Harding outlined tonight his policy for sound ed that their institutions were Past Two Years Administration of State Affairsmin,e and murdered four Mexican solvent, but lacked ready cash to He Would Support Bryan miners and carried eight women business and rehabilitated American territory. meet the heavy demands made Challenges Mit Simms to Debate Land Board Affai into the hills. If Nebraska Man Was In upon' them by thousands of deEvery place in the armory was taken and many were Or Any Other State Issues Federal soldiers from a nearby positors who desired to withdraw Campaign Today their accounts at once, standing when Senator Harding arrived. At his appeargarrison immediately took pursuit, I challenge Mit Simms to appear on any platform with me in this rescuedthe kidnaped women, and The bank officers were joined by ance the audience rose and cheered for two minutes and state and debate the land issue. I will state my case against the land returned four of the bandits to ToGovernor Coolidge, Bank Commis BIGGEST CROWD OF board and the land grabbers. Let him justify, if he can, his position sioner Allen and city officials in nichi, where they were hanged in then renewed the ovation after the band had played the statements assuring the public and let the people judge which one of us they wish to trust the next the public square as a lesson to TOUR GREETS COX that the Boston banks were in Star Spangled Banner. The nominee many times was infuture raiders. two years. sound condition and that funds According to Mr. Harding, the terrupted with cheering and when he concluded he was entrusted to them were safe. outlaws came from the state of More than 2,000 persons heard Governor Thomas I Overflow Crowd Waits For At all three banks which susSinaloa, where several "lynching" sent away with a great roar of applause. pended payments in their savings parties have recently been held by Campbell, Ralph Cameron and James R. Dunseath, co Chance to Hear DemoThe address was the fourth to be made today by Senaauthorities in an effort to rid the departments it was announced that business in the commercial state of outlawry. gressional candidates, and a half dozen candidates f cratic Nominee - South tor Harding. In Baltimore he was received by a cheering departments would continue as Mr. Harding declares that the state offices, fire the opening guns of the 1920 Republica usual. Dakota on Today's ProMexican officials are of the opinthrong at the railway station, was tumultously acclaimed Action suspending payments in ion that hte latest bandit gangs campaign in Maricopa county at the Y. M. C. A. stadiu gram the savings departments was taken are composed of soldiers, recently along a ride through the city and was personally welcomed this forenoon after hundreds had discharged from the federal army last night. [Republican A.P Leased Wire] by hundreds who filed by to shake his hands at a public crowded the banking offices to through its reorganization. OMAHA, Neb. Sept. -Governor Campaign issues were clearly defined by the respe withdraw their accounts. Cox of Ohio. Democratic presidential reception. Saural Republic

9. September 28, 1920 The Brattleboro Daily Reformer Brattleboro, VT
Article from The Brattleboro Daily Reformer, September 28, 1920

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FIDELITY TRUST STOPS BUSINESS Bank Commissioner Allen Takes Charge of Institution DECLINING DEPOSITS AND SLOW LOANS They Are Responsible for Commissioner's Action - Its Officials Affiliated With Other Financial and Industrial Concerns. BOSTON, Sept. 28.-Bank Commissioner Joseph Allen took over the affairs of the Fidelity Trust Co. here today. His action marked the closing of the sixth banking institution in this city= within two months. The others were the Hanover Trust Co., of which Charles Ponzi was a director and largest individual depositor, the Prudential and Cosmopolitan Trust companies and two private banks. The canital of the Fidelity was $3,000,000 and according to the latest available statement the company had a surplus of $700,000. Its deposits totalled about $18,000,000. James G. Ferguson, its president, is affiliated with several other financial and industrial institutions, as is Edwin T. McKnight, the vice president. The Fidelity Trust Co. was one of three banks which yesterday invoked the 90-day law for withdrawal of deposits. The reasons for the closing of the bank, Commissioner Allen said, are the steady withdrawal of deposits and slow and doubtful loans. 'Only a few persons were on hand when the formal notice announcing the closing was posted on the door of the Fidelity Trust Co. at 9 a. m. A squad of policement were on duty and extra officers patrolled the financial district but there was no excitement. At the offices of the Tremont Trust Co. a small crowd gathered before the opening hour but police had nothing to do. The bank continued to do business as usual in its commercial department but depositors in the savings department were required to file 90 days' notice of intention to withdraw. The same sitnation existed at. the Dorchester Trust Co.

10. September 28, 1920 South Bend News-Times South Bend, IN
Article from South Bend News-Times, September 28, 1920

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CHECK RUN ON BOSTON BANKS Officials of Three Institutions Invoke 90 Day Law on Depositors. BOSTON, Mass., Sept. 17.-Three Boston banks were forced Monday to invoke the law requiring ninety days notice of withdrawals from the savings departments as a measure of protection from depositors who had become alarmed over local banking conditions as a result of the closing of five banks in the last two months and the Ponzi financial fiasco. Officers of all three, the Tremont Trust company, the Fidelity Trust company and the Dorchester Trust company, asserted that their institutions were solvent, but lacked ready cash to meet the heavy demands made upon them by thousands of depositors who desired to withdraw their accounts at once. The bank officers were joined by state and city officials in statements assuring the public that the banks were in sound condition and that funds entrusted to them were safe. At all three it was announced that business in the commercial depart= ments would continue as usual. Action suspending payments in the savings departments was taken Monday forenoon after hundreds had crowded the banking offices to withdraw their accounts and the bank officials had surveyed the situation and seen frightened depositors gathering outside their offices until police details were required to keep them in control The bank officials acted entirely upon their own initiative, it was announced.

11. September 28, 1920 The Caledonian-Record Saint Johnsbury, VT
Article from The Caledonian-Record, September 28, 1920

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months. The others were the Hanover Trust Company of which Charies Ponzi, the financial wizard, was a director and one of its largest ind.vidual depositors, the Prudential and Cosmopolitan Trust Companies and two private banks. The capital of the Fidelity Trust Company is $3,000, 000 and according to the latest available statement from the company, it had a surplus of $700,000. Its deposits totalled $18,000,000. The President, James G. Ferguson is affiliated with several other financial and industrial institutions as is Edwin T. McKnight, vice-president. The Fidelity Trust Company was one of the three banks, which yesterday invoked the law requiring 90 days notice for the withdrawal of savings deposits. The reason for the closing of the bank, Commissioner Allen said was the "steady withdrawal of deposits and the slow and doubtful loans.' Only a few persons were on hand when the formal notice announcing the closing was posted on the doors of the Fidelity Trust Company at 9 a. m. A squad of policemen were on duty and extra officers patrolled the financial district but there was no excitement. At the offices of the Tremont Trust Company, a small crowd gathered shortly before the opening hour but the police had no difficulty in keeping order. The bank continued to do business in its usual commercial department but depositors in the savings department were required to give a 90 day notice of intention to withdraw. The same situation existed at - the Dorchester Trust Company. The closing of the Fidelity ties up between $50,000 and $52.000 of state funds, State Treasurer Jackson announced. On August 1, the bank held $633,023 of state money. The state treasurer expressed himself as "content that the money of thes tate on deposit at the Fidelity is safe." "I believe also that the money of all depositors is safe. This is a time for the public to remain calm and to have confidence in our banking institutions. They deserve it."

12. September 28, 1920 The Barre Daily Times Barre, VT
Article from The Barre Daily Times, September 28, 1920

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Was One of Three Boston is Banks to Invoke the 90a N I Day Law , d e "SLOW AND DOUBTFUL e LOANS" ONE CAUSE 8 i. State of Massachusetts Has Over $50,000 Deposited h in the Bank f t I Boston, Sept. 28. When Bank Com missioner Joseph C. Allen took over 1 the affairs of the Fidelity Trust comf ) pany here to-day his action marked the closing of the sixth banking institution in this city within two I months. The others were the Hanover Trust company, of which Charles i Ponzi, the "financial wizard," was a e director and largest individual depositor ; the Prudential and Cosmopolitan Trust companies and two private banks. The capital of the Fidelity was $3,000,000 and, according to the latest available statement from the company, had a surplus of $700,000. Its deposits totalled about $18,000,000. James G. Ferguson, its president, is affiliated with several other financial and in dustrial institutions. as is Edwin T. MeKnight, the vice president. The Fidelity was one of three banks which yesterday invoked the law requiring 90 days notice for withdrawal of savings deposits. The reasons for the closing of the bank. Commissioner Allen said, are "the steady withdrawals of deposits and slow and doubtful loans. Only a few persons were on hand when the notice announcing it closing was posted at 9 clock on the door A of the Fidelity Trust company squad of policemen was on duty and extra policemen patroiled the financial district, but there was no excitement. At the offices of the Tremont Trust company a small crowd gathered before the opening hour, but the police had no difficulty in keeping order. The bank continued to do business as usual in its commercial department, but depositors in the savings depart ment were required to file 90 days notice of intention to withdraw. The same situation existed at the Dorches ter Trust company. The closing of the Fidelity tied up between $50,000 and $52,000 of state funds. State Treasurer Jackson an I nounced. On August 1 the bank held $633,023 of state money. Treasurer Jackson expressed him self as "confident that the money of i the state on deposit in the Fidelity Trust company is safe." "I believe, also," he added, "that the I money of all depositors is as safe. a This is a time for the public to remain 1 calm and to have confidence in our T banking institutions. They deserve it." t The city of Boston had no money i on deposit with the Fidelity, Treasurer a Thomas W. Murray said. Half a million in city funds was in the custody 2 of the Fidelity last December. but F since that time all has been gradually h withdrawn. In none of the recent r closings of banks here has the city had 8 funds tied up. P

13. September 28, 1920 New-York Tribune New York, NY
Article from New-York Tribune, September 28, 1920

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Law Invoked to Check Runs on 3 Boston Banks Thousands of Depositors Clamor for Savings, but Are Held Off by NinetyDay Notice Requirement State Takes Action One Institution Will Be Taken Over by Examiner; Police Keep Crowds Back (Special Dispatch to The Tribune.) BOSTON, Sept. 27.-The Fidelity Trust Company, one of three banks which to-day invoked the ninety-day clause covering the withdrawal of savings deposits, will be taken over by the State Bank Commissioner at 9 o'clock to-morrow morning, according to a statement to-night by Commissioner Joseph C. Allen. Thousands of depositors, uneasy over the closing of five other banks in Boston in the last two months and the Ponzi financial bubble, were clamoring to withdraw their funds at once when three institutions resorted to the law requiring that ninety-days' notice be given before withdrawals of savings deposits can be made. Besides the Fidelity Trust Company, the banks were the Tremont Trust and the Dorchester Trust companies. Governor Coolidge held 8 conference to-day with State Treasurer James Jackson, Bank Commissioner Allen and the bank commissioner's counsel, former Attorney General Wyman, after which the Governor said he was making efforts to have all the banks join in a plan to prevent any solvent bank from being forced to close. It is understood the plan is now being worked out by the Clearing House Commission, the members of which include representatives of the Shawmut, Merchants' and First National banks and the Old Colony Trust Company. "I suggested some time ago," the Governor said, after the conference, "that the banks cooperate and support each other, so that no bank that is solvent should be forced to close its doors because it cannot get funds to meet the demands of its depositors." The Governor said that the meaning of the Federal Reserve act is that banks sustain each other. The Federal Bank also has been asked to take any action it can to clear the situation. "The money of the people of Massachusetts is safer in any banking institution in the commonwealth than in their pockets or their homes," said the Governor. "The present crisis apparently was started by the Ponzi affair. I don't know that there has been anything malicious, but it is well known that there are interests in the community that would like to break down all our institutions, whether banks or churches or institutions of government. I do not know whether these interests have had the ear of the class of people depositing in such banks as

14. September 28, 1920 Every Evening, Wilmington Daily Commercial Wilmington, DE
Article from Every Evening, Wilmington Daily Commercial, September 28, 1920

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DEPOSITORS MAKE RUN ON BANKS AT BOSTON Public Uneasiness Forces Three to Invoke 90-Day Notice Law. Boston, Sept. 27.-Public uneasiness over banking conditions yesterday caused runs on some institutions with the result that the Tremont Trust Company, the Fidelity Trust Company and the Dorchester Trust Company invoked the law which makes it possible to require 90 days' notice of withdrawals from the savings departments in order to stop the rush of frightened depositors. In the run on the Tremont Trust Company the crowd became so great that the police were called to maintain order. The virtual suspension of payments for the present by the savings departments of these three banks, follows the closing of five banking institutions in this city within the last two months by bank Commissioner Joseph C. Allen. The several closings and suspensions of payment have occurred since the collapse of Charles Ponzi's get-rich-quick scheme, which involved the Hanover Trust Com-

15. September 28, 1920 The Washington Herald Washington, DC
Article from The Washington Herald, September 28, 1920

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(By Universal Service.) Boston, Sept. 27.-Following the action of three Boston trust companies in halting withdrawal of savings deposits today, Gov. Coolidge hurriedly summoned State officials to a conférence to consider the threatening banking situation. The institutions which under the ninety-day clause halted payments on savings accounts were the Tremont Trust Company, the Fidelity Trust Company, and the Dorchester Trust Company. They had been subjected to unusually heavy withdrawals by depositors, made apprehensive by the recent closing of the Hanover. Prudential and Cosmopolitan Trust companies. Suggests Co-operating. Gov. Coolidge said: "I understand the larger banks are considering what they can do to save the situation by concerted action. I have suggested that the

16. September 29, 1920 The Abbeville Press and Banner Abbeville, SC
Article from The Abbeville Press and Banner, September 29, 1920

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BANKS IN BOSTON HOLD ON TO MONEY Depositors Alaarmed And Seek To Withdraw Savings Boston, Sept. 28.-Three Boston banks were forced today to invoke the law requiring ninety days' notice of withdrawals from the savings departments, as a measure of protection from depositors who had become alarmed over local banking conditions as a result of the closing of five banks in the last two months and the Ponzi financial fiasco. Officers of all three, the Tremont Trust Company the Fidelity Trust Company and the Dorchester Trust Company, asserted that their institutions were solvent, but lacked ready cash to meet the heavy demands made upon them by thousands of depositors who desired to withdraw their accounts at once. The bank officers were joined by Governor Coolidge, Bank Commissioner Jos. C. Allen and city officials in statements assuring the public that the Boston banks were in sound condition and that funds entrusted to them were safe. At all three of the banks which suspended payment in their savings departments it was announced, that business in the commerical departments would continue as usual with no ban on withdrawals there.

17. September 30, 1920 Burlington Weekly Free Press Burlington, VT
Article from Burlington Weekly Free Press, September 30, 1920

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FIDELITY TRUST CO. OF BOSTON IS CLOSED Boston, Sept. 28.-Bank Commissigner Joseph C. Allen took over the affairs of the Fidelity Trust company here to-day. his action marked the closing of the sixth banking institution in this city within two months. The others were the Hanover Trust company, of which Charles Ponzi. the "financial wizard." was a director and largest individual depositor: the Prudential and Cosmopolitan Trust companies. and two private banks. The capital of the Fidelity was 82,000,000 and, according to the latest available statement from the company. had a surplus of $700.000. Its deposits totalled about $18,000,000. James G. Ferguson. Its president, is affiliated with several other financial and industrial institutions. ns is Edwin T. McKnight. the vice-president. The Fidelity was one of the three banks which yesterday invoked the law requiring DO days' notice before withdrawal of savings deposits. The reasons for the closing of the bank, Commissioner Allen said are "the steady withdrawals of deposits. and slow and doubtful loane." Only a. few persons were on hand when the notice announcing the closing was posted nt nine o'elock on the door of the Fidelity Trust company. A squad of policemen was on duty and extra officers patrolled the financial district. but there was no excitement. At the offices of the Tremont Trust company a small crowd gathered before the opening hour. but the police had no difficulty in keeping order The bank continued to do business as usual in its commercial department. but depositors in the savings department were required to file DC days' notice of intention to withdraw The same situation extated nt the Dorahester Trust company.

18. September 30, 1920 The Bennington Evening Banner Bennington, VT
Article from The Bennington Evening Banner, September 30, 1920

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THREE BOSTON BANKS ARE SUBJECT TO RUNS Institutions Resort to 90 Day Law, and Cease to Make Any More Payments. Bo ton, Sept. 27.-Public unrest over banking conditions today caused a runon some inst tutions with the re ult that the Tremont Trust company the Fidelity Trust company and the Dorchester Trust company invoked the law which makes it possible to re quire ninety days' notice of withdraw als from the savings departments, in order to stop the rush of frightened depositors. The run on the Tremont Trust company was participated in by hundreds and the proportions of the crowd became so great that police, mounted and afoot, were called upon to keep the crowd in order. The bank sought for an hour to meet the claims against it, and officials announced there was money on hand to pay all, but the crush became so great that Vice- President Simon Swig announced that the ninety-days notice would 00 required. At, the Fidelity Trust company, which also has offices in the down town district, the run was in smaller volume, but the law was called upon, t was stated, "to allow the public to recover from the prevailing unrest." There has been a run on the Dorchester Trust company for several days, and the invocation of the law there stopped the payments.