Chelsea Bank - Chelsea, MA

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 1, 1933*
Location: Chelsea, Massachusetts (42.392, -71.033)

Metadata

Model: gpt-5-mini
Short Digest: 2a2aee7e

Response Measures

None

Description

Article (Dec 20, 1933) discusses the bank's closing in January and ongoing receivership (receiver Charles A. Faircloth). No explicit mention of a depositor run in the provided excerpts; closing appears to have been handled by the Comptroller/receiver (government action). Date of closing given as last January relative to Dec 1933, so January 1933. I corrected no OCR-critical bank or city names.

Events (1)

1. January 1, 1933* Suspension

Cause: Government Action
Cause Details: Bank was closed and placed in receivership under the Comptroller; receiver Charles A. Faircloth in charge following the institution's closing in January 1933; legal actions and probes underway thereafter.
Newspaper Excerpt: closing of institution last January; receiver Charles A. Faircloth
Source: newspapers

Newspaper Articles (1)

1. December 20, 1933 Press of Atlantic City Atlantic City, NJ

Article from Press of Atlantic City, December 20, 1933

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Article Text

2 Court Actions In Chelsea Bank Crash Under Way Federal Grand Jury Probe Starts Today at Newark Into Possible Criminal Phases Preceding Closing of Institution Last January; Gets Action DISCOVERY FIGHT TO BE CARRIED TO FINISH Depositors and Stockholders Announce Decision After Dismissal of Bill by Judge Avis: Encouraged by Several Rulings by Jurist (Continued from Page One) for Charles A. Faircloth, receiver of the bank. "The bill as filed does not conform to the law stated (annexing to the bill interrogatories on information desired and giving defendant a chance to answer such prior to final decision on discovery proceedings"), read the court's opinion, "and is subject to dismissal. unless the form of prayer is amended and interrogatories filed, the application for which, if desired should be promptly made. If so filed, the respondent (bank) may object thereto. or to the equities of the bill based upon facts peculiarly within his knowledge, which may move the court to deny the relief prayed at the present time "The conclusion of the court in this case has been influenced by the equities appearing after a careful deration of all the facts and circumstances. There is no desire to interfere with the general administration of the affairs of the banks, but persons having a large financial interest, it seems to me, are entitled to know the facts with relation to their property which will give them an opportunity to protect whatever interest they may have. "The only recourse they have, after request made to the Comptroller and receiver. is to the court, and equity and fair dealing impels the court to see that their property is protected. Challenges Bank's Contention Challenging the contention of respondents (bank) that the discovery request is without equity because not incidental to any other relief sought, Judge Avis says: is apparent that bill for discovery will lie, when no other relief is sought, if in aid of a suit to be afterward instituted, and if it is desired to have facts disclosed from books, papers or records in the custody of defendant, and the information can be obtained in no other way." Also ruling against the bank's counsel on the contention that the allegations filed were "based upon information and belief,' the court says: "I am satisfied that the allegations of the bill are sufficient in suit of this character where the only object is to obtain information of facts peculiarly within the control and knowledge of the respondent (bank and receiver). Judge Avis also failed to agree wholly with the contention that the authority of the Comptroller of the Currency, through his receiver. is exclusive and paramount even to the courts. On this point he says: "The third reason assigned is that the bill is without equity because the Comptroller of Currency, through his receiver, is in full and complete charge of the bank. its assets, records. etc., and that this possession is exclusive and not subject to the control or supervision of the courts, so long as it does not affirmatively appear that the receiver is not acting within the law. With this proposition. as it refers to the general conduct of the affairs of the receivership, agree. If however, it S intended suggest that the receiver and the comptroller have the right to handle all of the affairs of an insolvent bank in secrecy refusing to divulge to stockholders, who have their money invested in the institution. the facts upon which the officers or directors of the bank might be held liable for losses because of violation of their duties, cannot agree The court went on to say "I am unable to agree with the contention that the object of the bill in the instant case is to interfere with, or in any way control the actions of the receiver in administering the affairs of the insolvent institution. It seeks merely to obtain the facts for the purpose of determining whether an action should be instituted individually or collectively against the officers and directors.' Ruling On Receivership On the question of finding out whether receivership is being discharged in accordance with law as it applies to the liability of officers and directors of a bank, Judge Avis had this to say: "The fourth reason assigned is that there is no equity in complainants desire to take the administration of this trust out of the hands of the comptroller and execute it themselves as volunteers, and that so long as the comptroller of the currency and the receiver are acting within the law, they alone, and not some volunteer, may maintain suit. either civil or criminal, in behalf of the trust. 'With this general contention, I agree, but how, under the existing circumstances, is an interested party to ascertain or know whether the receiver is executing his trust in accordance with the law as it refers to the liability of officers and directors? This action preliminary to necessary demand upon the comptroller and receiver to institute action, if the facts, when disclosed, justify such action. Receivers and Suits At Law An interesting passage in the opinion made reference to the possible attitude of the receiver towards suits at law against officers and directors Judge Avis, after quoting various decisions in other continued"It will be noted that the court established the principle as stated. subject to the qualification: Unless it is clear that fraud or wrong is likely to eventuate which is not apparent here. "It is not apparent in the instant case as to what the attitude of the receiver is, with relation to the institution of actions against officers nd directors, and it may be that the receiver is considering this question. and intends to bring suit, if the facts and law justify such proceedings. Edo Aircraft Company near where they had set down the plane Then they entered the off of the Company and made ready for the journey to Englewood. fuses Interview "You'll just have to excuse me please,' the Colonel said to all questioners. He looked a bit tired. His face was tanned from the winds and sun of his voyage and he and Mrs. Lindbergh seamed mite cold after their flight from South Carolina She wore heavy white jacket Under her arm was cushion. A young woman rushed to them with a jug of coffee which they stemed to enjoy So wholly unprepared was the Company for the Lindbergh's arrival at that particular landing place, that it was necessary to rent an automobile to take them home. A policeman stood on the car's running board. although the Co onel had declined an escort The fmous flying couple covered the last leg of their historic voyage640 miles-from the quay of old Charleston to New York in just three minutes less than six hours. They came back home just five months and ten days after they flew nto the dawn on survey that took the mtwice across the Atantic, to 31 countries and coonies-a circe of the Atlantic, from the Tundras of the North to the jungles beyond the equator It was beautiful day for their arrival- ad clear The big red plane's wings flashed dazzingly in the sun. Its pontoons drug the bay gracefully. They have touched water from Nova Scotia to Switzerland-Greenland to AgricaRuss to South Africa. Mechanics took the plane in charge and hustled it to ramp. The flight of the Lindberghs was characterized by precise navigation. sudden decisions to visit this spot or that extensive surveys, frequent fogs and bad weather and technical exactness that conquered the extremes of climate. All the breeds of geese in the United States are descended from the wild gray gcose They have been domesticated for centuries. Since its erection in 1930 300.000 persons have visited the Ploneer Woman statue at Ponca City, Okla The city tax on real estate in Am. arillo. Tex., was reduced 22 per cent this year.