1.
September 27, 1920
The Washington Times
Washington, DC
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BOSTON BANKS STOP PAYMENT Three Trust Companies Invoke Ninety-Day Rule to Check Threatened Runs. BOSTON, Sept. 27.-The Tremont Trust Company, the Fidelity Trust Company, and the Dorchester Trust Company today established moratoriums, by which depositors will be required to wait ninety days before withdrawing funds. Officials of all the companies declared their institutions were sound and that the moratoriums were established to "protect the people from themselves." RUN STARTED SATURDAY. Payment of funds was stopped at the Tremont Trust Company branch in Warren street, Roxbury, soon after this opening hour. The run on the Tremont Trust Company started Saturday, following the closing by State order of the Cosmopolitan Trust Company. the fourth bank to be suspended since the burst. ing of Charles Ponzi's get-rich-quick bubble. A crowd of 800 men and women was lined outside the Tremont Trust Company today. Thirty policemen were on duty keeping the throng in order and protecting them from pickpockets. Two women fainted just as the doors were opened. Men were fighting for places in the line and several were taken out of the crowd by the officers. Mounted policemen cleared A lane for traffic. Crowds of depositors outside the Dorchester Trust Company. at Uphams corner. Dorchester. caused that bank to Invoke the ninety day moratorium The Derchester Trust is one of the string of so-called McKnight banks. of which the Fidelity Trust is an other. Edwin T. McKnight, president of the State senate and vice-president of the Fidelity Trust Company said: "Our bank is sound and able to meet obligations. But this withdrawal of funds as a result of the closing of one bank is wrong. The people have lost their heads. They need to be protected from themselves."
2.
September 27, 1920
Evening Times-Republican
Marshalltown, IA
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BOSTON DEPOSITORS GROW PANICKY Another Bank Closes Doors to Pro. tect Creditors After Runs Which Closed Another Institution Saturday-Banks Pile Up Money to Meet Demands. By Associated Press. Boston, Sept. 27.-Officials of the Tremont Trust Company, following steady payments of withdrawals for an hour after opening today, announced that the law permitting a bank to require ninety days notice for withdrawals from the savings department would be invoked forcnwith "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 "we invoke the law for the protection of the depositors, not for our own protection." Similar action was taken by the Fidelity Trust Company. Several banks opened their doors with large amounts of ready cash piled high within the tellers' cages, as provision against a repetition of the runs which developed Saturday out of the closing of the Cosmopolitan Trust Company. Bank officials in several instances announced that there was no con nection between the Cosmopolitan, which was the fifth bank to be closed here within two months, and their institutions, and Bank Commissioner Allen declared that no other banking institution was involved in the Cosmopolitan troubles.
3.
September 27, 1920
Brownsville Herald
Brownsville, TX
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BANKS INVOKE 90-DAY " 'RUN" LAW BECAUSE OF / (By The Associated Press) BOSTON, Mass., Sept. 27.-The MINERS REFUSE TO Tremont Trust Company this morning announced that the law permitting the bank to require ninety days notice for RETURN TO WORK AT withdrawals from the ravings department will be invoked forthwith because crowds are withdrawing deTHURBER, TEX., MINE posits. "We have plenty of money to pay (By The Associated Tress) FORT WORTH, Tex., Sept. 27.everybody," said officials. "We are Gus Sparling, district committeeman prepared to do this this morning, but for the United Mine Workers of Amerthe crowd became so large that it was ica in this territory, returned today impossible to have paid them. We inafter conferences with six hundred voked the law for the protection of striking miners at Thurber. He andepositors, not for our own protecnounced that the men will not return tion." to work until their demands are met The Fidelity Trust Company took regarding tonnage and digging, de- similar action.
4.
September 27, 1920
The Brattleboro Daily Reformer
Brattleboro, VT
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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."
5.
September 27, 1920
The Barre Daily Times
Barre, VT
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TREMONT TRUST CO., DORCHESTER TRUST FIDELITY TRUST CO. Bank Commissioner Allen Advised Resort to the Law Which Requires 90Day Notice Before Withdrawal of Funds-All Them Are Believed to Be Able to Meet Calls. Boston, Sept. 27 Public unrest over conditions to-day caused a some institutions rerun banking on Trust with the sult that the Tremont company the Fidelity Trust company and the Dorchester Trust company invoked the law which makes it possible to require ninety days notice of withdrawals from the savings departments, in or der to stop the rush of frightened de positors. the Tremont Trust com was in by pany The run participated on crowd hundreds bethe of the so that were called upon to and and came afoot, proportions great police, mounted keep in order! The bank sought for hour to meet the officials announced was the it. and an crowd claims all, there but against the money on hand to pay Vice crush became so great that President Simon Swig announced that the ninety-day notice would be required. At the Fidelity Trust company, which also has offices in the downtown district, the run was in smaller volume, but the law was called upon, to it was stated. "to allow the public recover from the prevailing unrest. There has been a run on the Dorches ter Trust company for several days; and the invocation of the law there stopped the payments. Officials of the institutions in several instances announced by statement or advertisement that there was no connection between the Cosmopolitan, which was the fifth bank to be closed here within two months, and their in stitutions, and Bank Commissioner Joseph C. Allen declared that no other banking institution was involved in the Coemopolitan's troubles. Nevertheless, a recurrence of the runs was an ticipated in some degree. depositors having become alarmed and, in the case of the Tremont Trust company, having made constant hdrawals from morning Saturday almost to midnight, the management having ex a tended the closing hour from noon to accommodate them. The feeling of uncertainty over the banking situation was the subject of discussion by Governor Coolidge and bankers yesterday, but without an nouncement of any contemplated ac tion. One effect of the close scrutiny of the affairs of local banks, which Commissioner Allen has been making, was an order from him to the management of the Old South Trust company to drop M from its payroll former Governor Sam uel W. McCall and four other officials, As M including two ce-presidents chairman of the board of directors of the company, McCall, who was ap pointed recently, is drawing a salary el of $8,000 a year, and the other men involved are said to be receiving sev earal thousand dollars each. a The object of the order is to reduce f the bank's expenses. and it is the opinion of the bank commissioner that D the men whom he asked to have dropped are holding merely nominal positions for which the salaries might to well be saved. In each instance, they may continue to serve in their present capacities without salary, according to the order from the bank commissioner to the Old South management. The Old South Trust company was M closed a year ago and re-opened re to cently after having rehabilitated its finances without loss to the depositors of Several hundred persons had gath ered outside the offices of the Tremont W Trust company when the doors were th opened at 8:45. fifteen minutes before as the usual hour and lines quickly formed tl before the several paying tellers' win dows. After withdrawals had been going on steadily for nearly an hour & with the crowds constantly increasing be the bank officials announced that the m law permitting a bank to require 90 days' notice for withdrawals from the savings department would be invoked forthwith "for the protection of the m depositors. The regulation would be m withdrawn "as soon as the public th calmed itself. it was announced M We have plenty of money to pay everybody. officials said. "and we're prepared to do so this morning, but at he crowd became so large that it was el impossible to handle them and we in is roked the law for the protection of the he depositors, not for our own protec iden. The Fidelity Trust company also served notice on depositors that it f would take advantage of the 90 days ke law. It was stated at the bank that ha this was done upon the direction of the bank commissioner At the office of
6.
September 27, 1920
Evening Public Ledger
Philadelphia, PA
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TWO BOSTON BANKS RESIST HEAVY RUNS Clamor of Depositors Causes Them to Enforce NinetyDay Rule FOR PATRONS' PROTECTION By the Associated Press Boston, Sept. Several hundred persons gathered outside the offices of the Tremont Trust Co. here today when the doors were opened at 8:45 a. m., fifteen minutes before the usual hour, and lines quickly formed before the several paying tellers' windows. After withdrawals had been going on steadily for nearly an hour with the crowds constantly increasing the bank officials announced that the law-permitting a bank to require ninety days notice for withdrawals from the savings departments 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 it 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 noticed on depositors that it would take advantage of the law permitting it to require ninety days' notice of withdrawals from the savings department. It was stated at the bank that this was done upon the direction of Joseph C. Allen. state bank commissioner. At his office it was said that the taking of this action was optional with the banks.' Several banks opened their doors with large amounts of ready cash piled high within the tellers' cages as provision against a repetition of the runs which developed Saturday out of the closing of the Cosmopolitan Trust Co. Bank officials in several instances announced by statement or advertisement that there was no connection between the Cosmpolitan, which was the fifth bank to be closed here within two months. and their institutions, and Bank Commissioner Allen declared that no other banking institution was involved in the Cosmopolitan's troubles. Nevertheless a, recurrence of the runs in some degree was anticipated, depositors having become alarmed, and in the case of the Tremont Trust Co., having made constant withdrawals from early morning to nearly midnight Saturday. the management extending the closing hour from noon to accommodate them. The feeling of uncertainty over the banking situation was the subject of discussion by Governor Coolidge and bankers yesterday, but without an-
7.
September 27, 1920
The Evening World
New York, NY
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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.
8.
September 27, 1920
Evening Star
Washington, DC
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RUN BEGINS AGAIN ON BOSTON BANK Tremont Trust Company Invokes Ninety-Day Notice to Protect Deposits. BOSTON, September 27 (by the Associated Press).-Several hundred persons gathered outside the offices of the Tremont Trust Company here today when the doors were opened at 8:45 a.m., fifteen minutes before the usual hour, and lines quickly formed before the several paying tellers' windows. After withdrawals had been going on steadily for nearly an hour. with the crowds constantly increasing. the bank officials announced that the law permitting a bank to require ninety days' notice for withdrawals from the savings departments 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 we're 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." Notice Served on Depositors. Upon opening for business today the Fidelity Trust Company served notice on depositors that it would take advantage of the law permitting it to require ninety days' notice of withdrawals from the savings department. It was stated at the bank that this was done upon the direction of Joseph C. Allen, state bank commistioneer. At his office it was said that the taking of this action was optional with the banks. Several banks opened their doors with large amounts of ready cash piled high within the tellers' cages as provision against a repetition of the runs which developed Saturday out of the closing of the Cosmopolitan Trust Company. No Other Banks Involved. Bank officials in several instances announced by statement or advertisement that there was no connection between the Cosmopolitan, which was the fifth bank to be closed here within two months, and their banks, and Bank Commissioner Allen declared that no other banking institution was involved in the Cosmopolitan's troubles. Nevertheless, a recurrence of the runs in some degree was anticipated, depositors having become alarmed. and. in the case of the Tremont Trust Company having made constant withdrawal from early morning to nearly midnight Saturday, the management extending the closing hour from noon to accommodate them. The feeling of uncertainty over the banking situation was the schedule of discussion by Gov. Coolidge and bankers yesterday, but without announced decision of any contemplated action. McCall Ordered Dropped. As result of the close scrutiny of affairs of local banks which Commissioner Allen has been making, was an order from him to the management of the Old South Trust Company to drop from its pay roll former Gov. Samuel W. McCall and four other officials, including two vice presidents. As chairman of the board of directors of the company, Mr. McCall. who was appointed recently, is drawing a salary of $8,000 a year. The object of the order is to reduce the bank's expenses. it being the opinion of the bank commissioner that the men he asked to have dropped are holding merely nominal positions. In each instance. they may continue to strye in their present capacity without salary, according to the order from the bank commis-
9.
September 28, 1920
The Chattanooga News
Chattanooga, TN
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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.
10.
September 28, 1920
Richmond Times-Dispatch
Richmond, VA
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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."
11.
September 28, 1920
The Bismarck Tribune
Bismarck, Mandan, ND
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SIXTH BANK IN BOSTON CLOSED BY COMMISSIONER Boston, Sept. 28. - Bank Commissioner Joseph C. 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 Ponzi, the financial wizard, was a director and largest individual depositor, the Prudential and Cosmopolitan Trust companies and two smaller institutions. The capital of the Fidelity is $3,000,000, and according to the latest statement, had a surplus of $700,000. Its depostis totalled about $18,000,000. The reason for the closing of the bank, Commissioner Allen said, were "the steady withdrawals of deposits and slow and doubtful loans."
12.
September 28, 1920
The Brattleboro Daily Reformer
Brattleboro, VT
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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.
13.
September 28, 1920
The Caledonian-Record
Saint Johnsbury, VT
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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."
14.
September 28, 1920
The Barre Daily Times
Barre, VT
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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
15.
September 28, 1920
The Commonwealth
Scotland Neck, NC
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eignty mires III one nour and SIX minutes Raynham the only British representative was forced to withdraw after the first lap. Estampes, France, Sept. 28.Both American entrants in International airplane race Major Schroeder and Howard Rinehart were eliminated by engine trouble soon after the race started today and the winner lies between England and France only one flier from each being left. 1 London, Sept. 28.-Lord May or Macswiney is beginning his forty seventh day hunger strike is reported as having passed a bet ter night and he is slightly refreshed this morning, altohugh still very weak and exhausted. Turin, Italy, Sept. 28.-The industrial plants which has been OCcupied by workermen were returned to the owners today. Before the evacuation the men filled the trenches thy had dug around the plants and removed the barbed wire entanglements and filled the loop holes dug in the walls and carried away their arms and ammunition. The own, ers reported a big waste of materials during the occupation. Cleveland, Sept. 28.-With the opening formalities and the parade over the delegates of the , American Legion convention 'got down to business today. The resolutions committee had more than five hundred resolutions befort it. Kansas is said to be favI ored for the next convention, through a number of cities, inclu. ding several in the South are after it. Boston, Sept. 28.-The Fidelity Trusts Company with deposits totaling eighteen million was closed t today by the State bank commis d sioner. making the sixth bank e closed here since the get rich [- quick scheme of Charles Ponz exploded. The steady withdrawel of deposits and the poor loans are responsible for the closing e The other banks were forced to n seek protection of the ninety days le law for the withdrawal savings. 1- Baltimore, Sept. 28.-Senator ic Harding today carried his cam S- aign into West Va. where h - makes an address in most of th e. Jarger cities before returning t y Marion tomorrow. All his speec g- es today except at Wheeling wil re he from the rear platform of hi eoach.
16.
September 28, 1920
El Paso Herald
El Paso, TX
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COMMISSIONER CLOSES SIXTH BOSTON BANK Boston, Mass., Sept. 28.-Bank commissioner Joseph C. 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 Ponzi, the "financial wizard' was a director and largest individual depositor, the Prudential 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 totaled 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 yesterday invoked the law requiring 90 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."
17.
September 28, 1920
New-York Tribune
New York, NY
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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
18.
September 28, 1920
The Washington Herald
Washington, DC
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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
19.
September 29, 1920
The Caledonian-Record
Saint Johnsbury, VT
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SIMON SWIG PROMISES STARTLING EXPOSURE BOSTON, Sept. 28-The runs on local banks within the past few days as the result of which two have been closed and two others have suspended payments in their savings department was due to a plot Simon Swig, vice president of the Tremont Trust Co. charged in a statement given out today after an interview with Bank Commissioner Joseph Allen. "It is a case of business rivalry of lion eat lion," he asserted. He announced, his intention in a day or two to expose publicly one of the greatest plots known in the banking history of the U. S. In this exposure he said a director of the Fidelity Trust Co., which was closed yesterday, would join with him.
20.
September 29, 1920
Omaha Daily Bee
Omaha, NE
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Sixth Boston Bank Ordered Closed Fidelity Trust Company, That Experienced Run Monday, Taken Over. Boston, Sept. 28.-Bank Commissioner Joseph C. Allen today took over the affairs of the Fidelity Trust company. His action marked the closing of the sixth bank 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 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 yesterday invoked the law requiring 90 days' notice for withdrawal of savings deposits. The reasons for the closing of the bank, Commissioner Allen said, were "the steady withdrawal of deposits, and slow and doubtful loans."
21.
September 29, 1920
Grand Forks Herald
Grand Forks, ND
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Banking Situation in Boston Tending to a A Normal Soundness Boston, Sept. 28.-The banking situation here today to all appearances was tending toward a return to normal. There was no recurrence of yesterday's runs on several institutions, and the essential soundness of all banks was emphasized by Governor Coolidge and other officials in statements. N The Fidelity Trust company was closed today in accordance with the announcement last night of Bank Commissioner J. C. Allen, that he would take such action because of the 's eady withdrawal of deposits and slow and doubtful loans."
22.
September 30, 1920
The Nenana Daily News
Nenana, AK
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BOSTON, Sept. 30.-Bank Commissioner Allen has closed the Fidelity Trust company, the sixth bank to become involved in financial difficulties since the collapse of the Ponzi get-rich-quick scheme. Commissioner Allen explains that the heavy withdrawal of deposits from the Fidelity bank, combined with slow and doubtful loans, has rendered the institution unsound. Public Alarmed. The closing of six local banks has filled the public with alarm and withdrawals from other banks have been very heavy during the past week, and the situation is regarded as very grave. There was a heavy run on the Tremont Trust company
23.
September 30, 1920
Burlington Weekly Free Press
Burlington, VT
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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.