Article Text
Another Trust Company Fails. BOSTON, Sept. 3.-The Suffolk Trust company, doing a general banking and mortgage loan business has gone into the hands of a receiver. Liabilities $162,000; quick asssets $160,000.
8019. Suffolk Trust Company (Boston, MA)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- trust company
- Start Date
- September 3, 1891
- Location
- Boston, Massachusetts (42.358, -71.060)
Metadata
- Model
- gpt-5-mini
- Short Digest
620b92fc
Response Measures
None
Description
Multiple contemporaneous newspaper dispatches (early September 1891) report Judge Allen granted an injunction restraining the Suffolk Trust Company from doing business and that Receiver John H. (Haskell) Butler was appointed. Cause cited consistently: unprofitable Western/Kansas farm mortgage investments and orders from the Savings Bank Commissioners to cease Western payments. No bank run or depositor panic is described. The company remained in receivership and later actions (assessments) indicate permanent closure.
Events (2)
1.
September 3, 1891
Receivership
- Newspaper Excerpt
- appointed John Haskell Butler receiver (or John H. Butler, of Boston, receiver). has gone into the hands of a receiver. appointed John Haskell Butler, of Boston, receiver.Receiver J. H. Butler...presented his first report (Aug 1892).to enforce...liability...to assess stockholders (Aug 1892).John Haskell Butler, of Boston, receiver.Receiver Haskell (Sept 26).J. H. Butler presented his first report (Aug 1892).order...to pay no money on the Western portion of their business.The company's business has been suspended.The injunction prevents the enjoined company from doing any business whatever, and the certificates must remain in the hands of Receiver Butler.Receiver J. H. Butler...presented his first report to Judge Mortonrecommended that an assessment be ordered by the Court upon each stockholder for $100The liabilities of the company are $247,000.The injunction against the Suffolk Trust company has been modified again by the supreme court.permission is given Receiver Haskell to pay the interest on certain Western mortgages held by the company, to the mortgagers.The first modification gave the receiver the right to transfer railroad certificates.The company is an offshoot of the Showalter Mortgage Company, which failed two years ago, and has been used largely as a depository for the funds of the lottery bond investment companies.It has $162,000 owing to depositors, against which the quick assets consist of $150,000 in good commercial paper and some $10,000 in cash.The guaranteed mortgage coupons for September 1 have not been paid, owing to the orders of the commissioners, and the company's business has been suspended.It has investments in Kansas have proved disastrous.Liabilities $162,000; quick assets $160,000.Receiver J. H. Butler...presented his first report to Judge Morton of the Supreme Court.Receiver recommended assessment against stockholders.The liabilities of the company are $247,000.The injunction was modified...permission is given Receiver Haskell to pay the interest on certain Western mortgages held by the company.The first modification gave the receiver the right to transfer railroad certificates.It was also identified with the Georgia and Alabama Investment Company.It has been used largely as a depository for funds of lottery investment companies.The company's statement made in April shows liabilities and assets of $489,965.The company guaranteed the interest on $560,000 outside of what appears in the statement, and this interest has been promptly paid by the companyThe commissioners demanded that its assets be increased by $25,000 or close its doors. The money was furnished by R. L. SpenceAn effort will be made by the creditors...to have the injunction recently granted modified so that a number of certificates...can be obtained from the receiverThe Commissioners express the belief that the depositors of the trust company will be paid in full.The receiver states that a large portion of the assets included in the so-called Western mortgage business...will make it necessary...to enforce against the stockholders the individual liability imposed by the corporation's chartera recommendation that an assessment be ordered by the Court upon each stockholder for $100 for every shareliabilities of the company are $247,000.Permission is given Receiver Haskell to pay interest on certain Western mortgages to the mortgagers.The first modification gave the receiver the right to transfer railroad certificates.Receiver J. H. Butler, of the Suffolk Trust Company, to-day presented his first report to Judge Morton of the Supreme Court.He recommended that an assessment be ordered by the Court upon each stockholder for $100 for every share of the capital stock.The liabilities of the company are $247,000.The injunction against the Suffolk Trust company has been modified again by the supreme Court.Permission is given Receiver Haskell to pay the interest on certain Western mortgages held by the company, to the mortgagers.The first modification gave the receiver the right to transfer railroad certificates.The company has now on hand over $70,000 of foreclosures of Western mortgages, $10,000 of tax titles and $16,000 in mortgages which have not been sold.Its capital and surplus are tied up in Western securities which, while they have value, cannot be turned into cash.It has $162,000 owing to depositors, against which the quick assets consist of $150,000 in good commercial paper and some $10,000 in cash.Judge Allen this morning granted an injunction against the Suffolk Trust Company, restraining the company from doing business, and appointed John Haskell Butler, of Boston, receiver.The company's business has been suspended.Judge Allen granted an injunction against the Suffolk Trust Company, restraining it from doing business, and appointed John Haskell Butler receiver. This company is the off-shoot of the Showsiter Mortgage Co., which failed two years ago, and has been used largely as a depository for funds of lottery investment companies.Business troubles...The Suffolk Trust Company, doing a general banking and mortgage loan business, has gone into the hands of a receiver.Another Trust Company Fails. BOSTON, Sept. 3.-The Suffolk Trust company, doing a general banking and mortgage loan business has gone into the hands of a receiver. Liabilities $162,000; quick asssets $160,000.Injunction Against Suffolk Trust Co. BOSTON, Sept. 3.-Judge Allen today granted an injunction against the Suffolk Trust Co., restraining it from doing business, and appointed John Haeckell Butler receiver.The company's capital surplus is tied up in Western securities which...cannot be turned into cash.It has $162,000 owing depositors, against which the quick assets consist of $150,000 in good commercial paper and $10,000 cash.The company's business has been suspended.The company had been warned by the Savings Bank Commissioners to pay no more money on the Western portion of their business.The guaranteed mortgage coupons for September 1 have not been paid, owing to the orders of the commissioners, and the company's business has been suspended.The injunction prevents the enjoined company from doing any business whatever, and the certificates must remain in the hands of Receiver Butler, unless the court decrees to the contrary.The Commissioners express the belief that the depositors of the trust company will be paid in full.Receiver J. H. Butler...presented his first report...recommended an assessment...liabilities $247,000.The injunction has been modified...permission is given Receiver Haskell to pay the interest on certain Western mortgagesAn effort will be made by the creditors...to have the injunction modified so that a number of certificates...can be obtained from the receiverThis company is the off-shoot of the Showalter Mortgage Co., which failed two years ago, and has been used largely as a depository for the funds of the lottery bond investment companies.It was also identified with the Georgia-Alabama Investment Company.The commissioners demanded that its assets be increased by $25,000 or close its doors.The money was furnished by R. L. Spence, of the Georgia-Alabama company.The company's statement made in April shows liabilities and assets of $489,965.The company guaranteed the interest on $560,000 outside of what appears in the statementThe guaranteed mortgage coupons for September 1 have not been paid, owing to the orders of the commissioners, and the company's business has been suspended.The company's capital and surplus are tied up in Western securities which, while they have value, cannot be turned into cash.The company has now on hand over $70,000 of foreclosures of Western mortgages, $10,000 of tax titles and $16,000 in mortgages which have not been sold.It has $162,000 owing to depositors, against which the quick assets consist of $150,000 in good commercial paper and some $10,000 in cash.Judge Allen this morning granted an injunction against the Suffolk Trust Company, restraining the company from doing business, and appointed John Haskell Butler, of Boston, receiver.The receiver states that a large portion of the assets included in the so-called Western mortgage business...will make it necessary...to enforce against the stockholders the individual liability imposed by the corporation's charter to the full limit.He therefore recommended that an assessment be ordered by the Court upon each stockholder for $100 for every share of the capital stock.The liabilities of the company are $247,000.The injunction against the Suffolk Trust company has been modified again by the supreme court. Permission is given Receiver Haskell to pay the interest on certain Western mortgages held by the company, to the mortgagers.The first modification gave the receiver the right to transfer railroad certificates.The Commissioners express the belief that the depositors of the trust company will be paid in full.The company is an off-shoot of the Showalter Mortgage Company, which failed two years ago, and has been used largely as a depository for the funds of the lottery bond investment companies.It was also identified with the Georgia-Alabama Investment Company.An effort will be made by the creditors of the Suffolk Trust Company to have the injunction modified so that a number of certificates of the Pennsylvania and West Virginia railroad held by the trust company can be obtained from the receiver, in whose hands they now are.John H. Butler recommended assessment against stockholders.Date: Sept. 3, 1891.Receiver appointed: John Haskell Butler.Liabilities reported: $162,000 (initial) rising to $247,000 (later).Receiver later sought assessments from stockholders; injunction modified to permit some payments/transfer of certificates.The company remains in receivership and effectively closed.No run or depositor panic described in the dispatches.Conclusion: suspension by injunction followed by receivership and effective closure.
- Source
- newspapers
2.
September 3, 1891
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Unprofitable Western (Kansas) farm mortgages and tied-up capital; Savings Bank Commissioners ordered company to stop paying on its Western business, leading to injunction and suspension.
- Newspaper Excerpt
- Judge Allen this morning granted an injunction against the Suffolk Trust Company, restraining the company from doing business
- Source
- newspapers
Newspaper Articles (15)
Click image to open full size in new tab
Click image to open full size in new tab
Article Text
Injusction Against Sutfolk Trust Co. BOSTON, Sept. 3.-Judge Allen today granted an injunction against the Suffolk Trust Co., restraining it from doing business, and appointed John Haekell Butler receiver. This company is the off-shoot of the Showsiter Mortgage Co., which failed two years ago, and has been used largely as a depository for funds of lottery investment companies. It was also identified with the Georgia-Alabama Investment Co.
Click image to open full size in new tab
Article Text
Business Troubles. CHICAGO, Sept. 3.-The assignment of the Central Market Company of this city is announced with liabilities of $160,000, and assets of $305,000. BOSTON, Sept. -The Suffolk Trust Company, doing a general banking and mortgage loan business, has gone into the hands of a receiver. its capital surplus is tied up in Western securities which, while they have value, capnot be turned into cash. It has $162,000 owing depositors, against which the quick assets consist of $150,000 in good commercial paper and $10,000 cash. NEW YORK, Sept. 3.-A dispatch was received here today announcing the suspension of the Knickerbocker Grain and Stock Exchange Company, the main office of which is in Albany. The concern did a large business in the northern and northwestern section of the state and in New England. CHICAGO, Sept. 3.-The Central Market Company assigned today, with liabilities of $160,000 and assets $30,000. The company was organized two years ago with a capital stock of $200,000. It owned a large structure, divided into market stalls and cold storage warehouses. The failure is asserted to be merely a suspension, due to inability to command ready money. MANISTEE. Mich., Sept. 3. - The East Shore Furniture Factory has passed into the hands of a receiver. Liabilities, $70,000; assets, $100,000. The concern employs 130 men and boys.
Click image to open full size in new tab
Article Text
ABBREVIATED TELEGRAMS. Fire at The Dalles, Ore., destroyed property worth $666,000. It is feared that the differences between Nicaragua and Honduras will soon lead to war. A Philadelphia woman went mad through brooding over a clairvoyant's predictions. The Knickerbocker Grain and Stock Exchange company, of Albany, N. Y., has suspended. The National bank of McKeesport, Pa., capital $150,000, has been authorized to begin business. The Milwankee exposition was opened by Governor Peck in the presence of a great throng of people. Charley Mitchell has posted a forfeit to bind a match between him and Corbett, with bare knuckles, for $5,000. A bulletin from the census bureaushows that there are 45,233 persons confined in the penitentiaries of this country. The Suffolk Trust company, of Boston, has been placed in the hands of a receiver. has investments in Kansas have proved disastrous. The Central Market company, of Chicago, has assigned, William P. Williams being appointed receiver. Its liabilities are $160,000. The London Times is of the opinion that notwithstanding the numerous war clouds the peace of Europe is not likely to be disturbed at present. It is announced by the London Chronicle that the Prince of Wales and Emperor William of Germany have all but decided to attend the World's fair. General Balmaceda is said to be on the to cruiser Condull making HA way north Mexico or the United States. The steamers of the Congressionalists are in pursuit. Lieutenant Peary's trip to Greenland is said to have been based on misconception and misinformation, and now the explorer is in a dangeloge Jusition among the ice froes. Two-year-old Henry Buckwith, of Chicago, went out to play, and wandered around until he was lost. He was found at Austin, a suburb nine miles away,and returned to his distracted parents The monuments erected at Gettysburg in memory of the Illinois soldiers were unveiled yesterday. Ex-Governor Beveridge made the presentation speech, to which Governor Fifer responded. The modification desired in the tariff law by the World's fair commission is so that foreign exhibitors in good faith may sell their exhibits without the payment of duty in cases where the law may result in hardship to the exibitor desiring to sell. A provision of the will of the late Dr. Lyman C. Draper, of Wisconsin, gives his historical manuscripts and fine private library to the state historical society on condition that C. W. Butterfield, of Omaha, Neb., shall never have access to them. Butterfield is also a historian, and he and Draper were not on good terms.
Click image to open full size in new tab
Article Text
Swamped in Western Securities. BOSTON, Sept. 3.-The Suffolk Trust Company, chartered in 1887 by the Massachusetts Legislature and authorized to do a general banking business and a mortgage loan business, have been notified by the Savings Bank Commissioners to pay no money on the Western portion of their business. The Western farm loans located in Kansas have failed to satisfy expectations. So poor has this Western business become that the company has now on hand over $70,000 in foreclosures on mortgages, $10,000 of tax titles which is received in legal proceedings, and $160,000 in mortgages which have not been sold, but have remained in that company's assets since first bought. Its capital and surplus are tied up in Western securities which, while they have value, cannot be turned into cash. Judge Allen this morning granted au injunction against the Suffolk Trust Company, restraining the company from doing business, and appointed John Haskell Butler, of Boston, receiver.
Click image to open full size in new tab
Article Text
Restrained from Doing Business. BOSTON, MASS., September 3.-Judge Allen this morning granted an injunction against the Suffolk Trust Company. restraining the company from doing businees and appointed John Haskell Butler, of Boston, receiver.
Click image to open full size in new tab
Article Text
UNPROFITABLE INVESTMENTS. A Boston Trust Company Directed to Pay No More Money on Kansas Farm Loans. The Suffolk Trust Company of Boston, chartered in 1886 by the Massachusetts legislature and authorized to do a general banking business and a mortgage loan businews, have been notified by the savings bank commissioners to pay no more money on the western portion of their business. The western farm loans, located in Kansas, have failed to satisfy expectations. The company's statement made in April shows liabilities and assets of $489,965. The company guaranteed the interest on $560,000 outside of what appears in the statement, and this interest has been promptly paid by the company, not always with funds sent from the west, but out of its own funds. So poor has this western business been that the company has now on hand over $70,600 of foreclosures of western mortgages, $10,000 of tax titles which it has received in legal proceedings and $16,000 in mortgages which have not been sold but have remained in the company's assets since first bought. Its capital and surplus are tied up in western securities, which, while they have value, cannot be turned into cash. It has $162,000 owing to depositors, against which the quick assets consist of $150,000 in good commercial paper and some $10,000 in cash. For the 1st of September the guaranteed mortgages demanded about $5,000 for coupon interest. It has not been paid, owing to the orders of the commissioners, and the company's business has been suspended. The company is an offshoot of the Showalter Mortgage Company, which failed two years ago, and has been used largely as a depository for the funds of the lottery bonds investment companies. It was also identified with the Georgia and Alabama Investment Company. BOSTON, Sept. 3.-Judge Allen this morning granted an injunction against the Suffolk Trust Company restraining the comp any from doing business and appointed John Haskell Butler of Boston receiver.
Click image to open full size in new tab
Article Text
4 BOSTON TRUST COMPANY SUSPENDS. UNPROFITABLE WESTERN FARM MORTGAGES CAUSE THE TROUBLE. Boston, Sept. 3.-Judge Allen this morning granted an injunction against the Suffolk Trust Company, restraining the company from doing business, and ap pointed John Haskell Butler, of Boston, receiver. Mr. Butler stated this afternoon that all depositors would undoubtedly be paid in full; that the stockholders were liable, just as stockholders of National banks were, and could be assessed if the quick assets were not sufficient. The company had been warned by the Savings Bank Commissioners to pay no more money on the Western portion of their business. The. Western farm loans in Kansas have failed to satisfy expectations. The company has now on hand over $70,000 of foreclosures of Western mortgages, $10,000 of tax titles and $16,000 in mortgages which have not been sold. Its capital and surplus are tied up in Western securities. It has $162,000 owing to depositors, against which the quick assets consist of $150,000 in good commercial paper and some $10,000 in cash. The guaranteed mortgage coupons for September 1 have not been paid, owing to the orders of the commissioners, and the company's business has been suspended. The company is an offshoot of the Showalter Mortgage Company, which failed two years ago, and has been used largely as a depository for the funds of the lottery bond investment companies.
Click image to open full size in new tab
Article Text
Want the Injunction Modified. BOSTON. MASS. September 4.-An effort will be made by the creditors of the Suffolk Trust Company to have the injunction recently granted modified so that a number of certificates of the Pennsylvania and West Virginia railroad held by the trust company can be obtained from the receiver, in whose hands they now are. Public interest is again aroused by the connection of the trust with the so-called Georgia-Alabama Investment Company and the lottery bond companies. About four weeks ago the company held over its checks and the commissioners demanded that its assets be increased by $25,000 or close its doors. The money was furnished by R. L. Spence, of the Georgia-Alabama company, and it is now said the Georgia-Alabama company has but $4,000 on deposit with the trust company.
Click image to open full size in new tab
Article Text
THE ENJOINED SUFFOLK TRUST COMPANY. Boston, Sept. 4.-The injunction issued by the Supreme Judicial Court against the Suffolk Trust Company has made things so unpleasant for other concerns that an effort will be made to modify the injunction in court to-morrow. The Suffolk Company held in trust, among other things, a number of certificates of the Pennsylvania and West Virginia Railroad, which the road is anxious to get possession of. The injunction prevents the enjoined company from doing any business whatever, and the certificates must remain in the hands of Receiver Butler, unless the court decrees to the contrary. The Commissioners express the belief that the depositors of the trust company will be paid in full.
Click image to open full size in new tab
Article Text
The Suffolk Trust Company. BOSTON, Sept. 26.-The injunction against the Suffolk Trust company has been modified again by the supreme court. This time permission is given Receiver Haskell to pay the interest on certain Western mortgages held by the company, to the mortgagers. The first modification gave the receiver the right to transfer railroad certificates.
Click image to open full size in new tab
Article Text
The Suffolk Trust Company. BOSTON, Sept. 26.-The injunction against the Suffolk Trust company has been modified again by the supreme court. This time permission is given Receiver Haskell to pay the interest on certain Western mortgages held by the company, to the mortgagers. The first modification gave the receiver the right to transfer railroad certificates.
Click image to open full size in new tab
Article Text
TO ASSESS SUFFOLK TRUST STOCKHOLDERS. Boston, Aug. 2.-Receiver J. H. Butler, of the Suffolk Trust Company, to-day presented his first report to Judge Morton of the Supreme Court. The receiver states that a large portion of the assets included in the so-called Western mortgage business, and in certain of the loans, is such that the ultimate loss thereon will make it necessary in order to meet claims which will be allowed by the Court, to enforce against the stockholders the individual liability imposed by the corporation's charter to the full limit. The receiver therefore recommended that an assessment be ordered by the Court upon each stockholder for $100 for every share of the capital stock. The liabillties of the company are $247,000.
Click image to open full size in new tab
Article Text
MASSACHUSETTS. Gov. William E. Russell has returned from his fishing trip to New Brunswick and is at his summer home in Magnolia. The arrangements for the celebration of Woburn's 250 anniversary are well under way. The celebration is to occupy two whole days, Thursday and Friday, October 6 and 7. Nathan A. Doe, who was suspended by Warden Lovering of the state prison at Charlestown for alleged neglect of duty as a watchman, has resigned and his resignation has been accepted. Chief Justice Mason of the superior court at Boston has rendered an important decree in the case of the Progressive Benefit order, one of the largest of the short term endowment orders. The result of the court's decision is that the number of participants in the fund in the hands of Receiver Lord is cut down from 15,000 to 5000. Judge Morton of the supreme court at Boston has ordered the stockholders of the Suffolk trust company to appear September 13 and show cause why an assessment should not be levied on them. Creditors whose claims have been disallowed are also required to appear at the the same time and show cause why their claims should not be allowed. John H. Estes and son have bought the Wyoming mill property at Fall River for $40,000. Just before the sale which was at auction, a notice was received that a writ of injunction had been applied for by one of the owners of the milt to prevent its sale. The purchase was made with the understanding that it should not hold unless a clear title could be given. The dispatch from Chicago regarding the wholesale swindling of Boston, Now York and Chicago banks by Bartels Forbes, Burnside and Anson, seems a mistake as far as Boston banks are concerned, although the dispatch states that several thousand dollars worth of worthless paper is held there. Inquiry at the Boston clearing house brought this reply "It'sall in Chicago; there's none of it here."
Click image to open full size in new tab
Article Text
TROUBLES OF ENDOWMENT SOCIETIES AN INJUNCTION AGAINST THE AMERICAN PROTECTIVE LEAGUE-NEWS OF OTHER ORGANIZATIONS. Boston, Sept. 7 (Special)."It's wicked-that's the only way to speak of it," said Insurance Commissioner Merrill to-day in giving the figures showing the manner In which the officers of the American Protective League had eaten the funds of their members. The fact that a number of members yesterday secured a temporary injunction against It led to a looking up of the figures, showing the enormous disproportion between the expenses and any possible payment to those who have put money into the concern. This League is one of the Massachusetts assessment endowment corporations which have lately been tumbling as rapidly as they were reared. Its terms for maturing of endowment is a five-year one, and an idea of what a forlorn hope the subscribers will have at the end of the term can be had from the fact that three-fifths of that time is already past, leaving the league with 5,562 certificates in force and $2,781,000 due, while the fund out of which this must be paid amounts to only $101,878. Even this latter sum cannot be counted all available, as $10,000 of it consists of stock in the Suffolk Trust Company, which, instead of being worth anything, involves an obligation of $20,000 on the holders on account of the suspension. The semi-annual statement shows that the sums paid in six months under the head of compensation to officers amount to $8,000; this is independent of travelling expenses paid to these officers. Although the principal items of what would be considered office expenses are separately specified, all these items are largely connected with influencing legislation. The officers of the American Protective League are: Dwight S. Woodworth, Governor-General: William S. Purman, Secretary-General; James M. Olmstad, Treasurer-General; Clarence S. Anthony. Auditor-General. Judge Andrich to-day appointed Henry E. Turner receiver of the Union Endowment Order. The organization has 16,000 members and a fund of $42,000. At a meeting yesterday of the members of the Order of the Helping Hand, a five-year endowment concern, It was voted to authorize the officers of the order to apply for a receiver and to close up the business. Lowell, Mass., Sept. 7.-An injunction was granted yesterday against the officers and directors of the Supreme Lodge of the American Protective League, a five-year: benefit order, who are charged with squandering and misappropriating the funds of the order. It is alleged that the order owes $2,000,000 and has only $101,000 in its benefit fund; that it can* not pay its certificates without violating the rights of contracts with its members and is therefore insolvent. A receiver is also asked for. Trenton, N. J., Sept. 7.-Thomas P. Curley, who was appointed a receiver for the Order of the Iron Hall in this State, to-day filed his bond of $200,000 in the Court of Chancery. It had seventeen signers.