8151. Lowell Trust Company (Lowell, MA)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
trust company
Start Date
December 16, 1931
Location
Lowell, Massachusetts (42.633, -71.316)

Metadata

Model
gpt-5-mini
Short Digest
06a0b952

Response Measures

Full suspension, Books examined

Description

Heavy withdrawals triggered by circulated rumors led directors to ask the State Bank Commissioner to take charge; the bank closed mid-December 1931 and examiners took control. Some departments were announced to reopen Dec 19. Dates derived from newspaper publication dates (run reported Dec 16, suspension taken Dec 17, partial reopening announced Dec 19).

Events (3)
1. December 16, 1931 Run
Cause
Rumor Or Misinformation
Cause Details
Unfortunate rumors circulated in the city that prompted heavy withdrawals and a growing crowd at the bank.
Measures
Bank kept open until after 2:30 pm then closed doors; directors summoned and asked State Bank Commissioner to take charge to conserve assets and protect depositors.
Newspaper Excerpt
Owing to unfortunate rumors which were circulated about this city this forenoon ... the crowd was increasing so constantly that it was felt advisable to close the doors in order to conserve the assets of the bank.
Source
newspapers
2. December 17, 1931 Suspension
Cause
Government Action
Cause Details
Directors requested the State Bank Commissioner take charge after heavy withdrawals; examiners took control and business was suspended.
Newspaper Excerpt
Examiners from the office of Commissioner Guy took charge of the Lowell Trust Company and notice to that effect was posted on the bank.
Source
newspapers
3. December 19, 1931 Reopening
Newspaper Excerpt
A state bank examiner announced tonight that the Lowell Trust company ... would reopen some of its departments. He said the bank would be prepared at that time to accept payments on loans and mortgages ... access to deposit boxes ... but deposits or withdrawals would be permitted.
Source
newspapers

Newspaper Articles (9)
1. December 17, 1931 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, December 17, 1931

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Boston, Dec 17.-(UP)-The Boston Continental National Bank, with deposits approximating $7.000,000, failed to open for business today. It was the second National bank to close in Boston this week. the much-larger Federal National Bank having closed Tuesday. According to President T. M. Ragan, the Continental National, with two in town and two suburban branches, was closed to protect the depositors in the face of unusually heavy withdrawals. A notice posted at the bank's entrance read: "Due to extraordinarily heavy withdrawals caused by general public uneasiness and in order to conserve the assets of the bank, which in the due course of an orderly liquidation should pay all depositors in full, directors of the Boston Continental National Bank have asked the controller of the currency to take possession of the institution." Boston, Dec 17.-(UP)-With deposits aggregating $61,701,238 tied up by the closing of 10 National banks and trust companies, efforts were made to-day to discourage runs on several savings banks. Reminded that never in history has a Massachusetts savings bank been obliged to close, depositors generally refused to become panicky over developments affecting the other types of banks. But in East Boston, South Boston and Lowell, runs had been reported on savings banks. "The banks in East Boston and South Boston, where the runs are being made, are two of the strongest banks in the state," said State Bank Commissioner Arthur Guy. "They are both in excellent shape and they can't possibly be tired out by a run." Deposits tied up bank closings surpassed the sixty million dollar mark yesterday afternoon when the Lowell Trust company of Lowell, with $3,961,000 on deposit, closed. This was the 10th Massachusetts bank to close within 48 hours, and the 15th New England bank to close since October 1. After the bank commissioner took charge of the Lowell Trust company at the behest of its officials, the seven savings banks in that important industrial center decided, as a precautionary measure, to invoke the 90-day privilege. Thus, during the next three months, depositors of these banks will be ableto withdraw not more than $100 each. Herbert Pearson, appointed by the controller of the currency as receiver for the Federal National Bank of Boston, to-day was directing the preliminaries to liquidation, with bank officers still asserting that depositors would be paid in full. All the closed banks except the Lowell Trust company were affiliates of the Federal National which, with its five Greater Boston branches, closed Tuesday. Hamden. Conn, Dec 17.-(UP)The Hamden Bank and Trust company was closed to-day on a restraining order issued by the state banking commissioner. The action was understood to have been taken to protect depositors. The bank's last statement listed general deposits of $570,000 and savings deposits of $688,000, capital of $200,000, surplus of $75,000 and undivided profits of $44,000. Examiner George Ogden of the state banking commission. who was examining the bank's books to-day, said the state intervened after continued withdrawals by letter had placed the institution in an unlilquid position. There was no "run" on the bank, he said. Heavy withdrawal of Christmas savings contributed to the bank's

2. December 17, 1931 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, December 17, 1931

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LOWELL TRUST CO IS CLOSED Action Results From Run Laid to "Rumors" Seven Lowell Mutual Savings Banks Limit Withdrawals Special Dispatch to the Globe I LOWELL, Dec 16-In an effort to "conserve assets and protect depositors," the directors of the Lowell Trust Company this afternoon voted to ask State Bank Commissioner Arthur Guy to take charge of their bank and tonight the officers of the seven Lowell Mutual Savings Banks voted to invoke the 90-day-clause under the State banking law and limit each depositor to withdrawal of $100 during that period. The mutual savings banks are the City Institution for Savings, the Lowell Institute for Savings, the Washington Savings Bank, the Merrimac River Savings Bank, the, Central Savings Bank, Mechanics Savings Bank and the Lowell Five Cents Savings Bank. None of these are connected with the Middlesex National Bank, subsidiary of the Federal National Bank of Boston, which did not open Tuesday morning after word of the action of the directors bank to close. The Union-Old Lowell National Bank, the largest and oldest bank in the city, and its branch office, the Wamesit Bank, and the Appleton National Bank, will be open for business as usual tomorrow. Pres John F. Sawyer of the Union-Old Lowell National Bank announced tonight that the bank is in condition to meet any demands. Notices the decision the Mutual Savings Banks to invoke the 90-day clause will be posted "at the seven banks tomorrow. The banks will otherwise be open for business but no depositor will allowed withdraw more than $100 during the next 90 days. Edward F. Lamson, treasurer the Lowell Five Cent Savings Bank, made public the decision of the officers. Tonight examiners from the office of Commissioner Guy took charge of the Lowell Trust Company and notice to effect was posted on the bank Withdrawals Force Closing The bank was closed after heavy withdrawals during the day. The president is George M. Harrigan, who some months ago, was robbed $25,000 of the institution's funds while driving in an automobile from Lowell to Boston. Mr Harrigan issued the following "Owing to unfortunate rumors which were circulated about this city this forenoon was started on the Lowell Trust Company's department. "The bank kept open until after 2:30 o'clock, when the crowd was increasing so constantly that it was felt advisable to close the doors in order to conserve the assets of the bank for the depositors. There also was demand for withdrawals from the savings The board of directors were hastily summoned and notified the Commissioner of Banks, and will send representative to take charge of the "The directors feel confident that the assets of the together with capital surplus and undivided profits more than enough to pay the depositors in full." Deposits $3,961,000 There are 3000 depositors in the bank and, the of deposits was given as and savings deposits, $2 100 The Commonwealth, according to State Treas Charles Hurley had on deposit total of $64,020.55, divided between regular time of and the motor vehicle registry account for Lowell of The city of Lowell had deposits of $150,058.1 in the bank. The vice presidents are Rutherford M Blair, James Donovan and Charles O. Hall. The directors are Charles P. Comerford, Isaac DeMaille, William F. Farrell, John C. Farrington. W. Holmes, Thomas F. Kelley L. Marren, James J. McManmon, Bernard George E. Mongeau, Morris, Charles O'Neil and Walter C. Wilson. The bank has no connection with the closed Federal National Bank of Boston or any other bank. Second to Close in Lowell The Lowell was the second Lowell bank to close within two days, the Middlesex National Bank, with deposits of $4,000,000. havIng suspended operations Tuesday. The trust company closed its doors half-hour before the regular closing time.

3. December 17, 1931 Transcript-Telegram Holyoke, MA
Article from Transcript-Telegram, December 17, 1931

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Article Text

HOOVER CREDIT (Continued from Page 1) runs on several savings banks. Reminded that never in history has a Massachusetts savings bank been obliged to close. depositors generally refused to become panicky over developments affecting the other types of banks. But in East Boston South Boston and Lowell, runs had been reported on savings "The bank in East Buston and South Boston, where the runs are being made, are two of the strongest banks in the state." said State Bank Commissioner Artitur Guy. "They are both in excellent shape and they can't possibly be tired out by a run.' Deposits tied up by bank closings surpased the sixty million dollar mark yesterday afternoon when the Lowell Trust Co. of Lowell, with $3,961,000 on deposit, closed. This was the 10th Massa. chusette bank to close within hours, and the 15th New England bank to close since October After the bank commissioner took charge of the Lowell Trust Co. at the behest of its officials. the seven savings banks in that important industrial center decided, as a precautionary measure. to invoke the 90-day privilege. Thus, during the next three months, depositors of these banks will be able to withdraw not more than $100 each. HAMDEN, Conn., Dec. 17 The Hamden Bank and Trust company was closed today on restraining order issued by the State banking commissioner. The action was understood to have been taken to protect depositors. Bank officials promised have asked the Comptroller of the Currency to take possession of the institution.' The bank's last statement listed general deposits of $570,000 and savings deposits of $688,000 capital of $200,000. surplus of $75,000 and undivided profits of $44.000. Examiner George Ogden of the State banking commission. who was BOSTON, Dec. 17-With deexamining the bank's books today. posits aggregating $61,701,238 tied said the State intervened after conup by the closing of 10 national tinued withdrawals by letter had banks and trust companies, efforts were made today to discourage placed the in an

4. December 17, 1931 Omaha World-Herald Omaha, NE
Article from Omaha World-Herald, December 17, 1931

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Bank Suspensions. Boston, Dec. 17 BosNational bank, with main on Devonshire street, downtown Boston, and four branches, remained closed at 9 m. today, the customary opening time. notice was posted that the comptroller of been asked to take it over to conserve assets, owing to heavy demands by depositors. At the time of the consolidation of the Boston National bank with the Continental National bank about a year ago the combined deposits of the merged institutions were given as approximat $9. and combined resources were set at $11,000,000. Hamden, Conn. Hamden. Conn., Dec. 17 (P). The Hamden Bank and Trust company closed today in the last published statement were $2,097,683.26. Lowell, Mass. Mass., Dec. 17 Business was suspended by the Lowell Trust company which recently reported and mercial deposits of $3,384 428. It was the second Lowell bank to close within two days, the Middlesex National bank with deposits of $4 000,000 having suspended operations yesterday. Burlington, C. Burlington, N. Dec. 17 (P) The First National Bank of Burlington, with assets at the time of its last statement of approximately $2,150,000. was closed by order M. Barnett national bank examiner. R. W. Malone, cashier, who in active charge, indicated the due to shrinkage in the value of bonds held. Calais, Me. Calais, Me. Dec. The InTrust and Banking company here Wednesday. It was announced the action was necessary because of heavy withdrawals by Canadian depositors. Raleigh, N. C. Raleigh, Dithe Commercial National bank, largest independent bank in the capital city, late last night voted to close the bank pending meeting of the stockholders. The September 29 statethe bank listed deposits at had a capital stock of $600,000.

5. December 17, 1931 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, December 17, 1931

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Second National Bank In Boston Is Closed To-day Action Taken to Prevent Heavy Withdrawals Hamden, Conn, Bank Also Closes, Although in Good Shape Boston National Bank. with deposits approximating $7.000, failed to open for business today. It was the second National bank to close in Boston this week. the much Federal Bank having closed Tuesday According to President T. M. Ragan, the Continental National, with two in town and two suburban branches, was closed to protect depositors in the of unusually heavy A notice posted at the bank's entrance read: "Due to extraordinarily heavy caused by general public uneasiness and in order to conserve the assets of the bank, which in the due course of derly should pay all positors in full, directors of the Boston Continental National Bank have asked the controller of the currency take possession of the Boston, Dec deposits $61,701,238 tied by closing of National banks and trust companies. efforts were made to-day to discourage runs on several savings banks. Reminded that never in history has Massa bank been obliged to close, depositors generally refused to become panicky over affecting the other types of banks. But in East Boston, Boston and Lowell, runs had been reported on savings banks. "The banks in East Boston and South Boston, where the runs are being made, are two of the strongest banks in the state,' said State Bank Arthur Guy. "They both in shape and they can't possibly be tired out by run.' Deposits tied up bank closings surpassed the million dollar mark afternoon when the Lowell Trust company of Lowell with on deposit, closed. This was the 10th Massachusetts bank to close within hours, and the 15th New England bank to October After bank commissioner took of the Lowell Trust company at the behest of its officials, the seven savings banks in that important industrial center as precautionary measure, to invoke the 90-day Thus, during the next three months, depositors of these banks will be ableto withdraw not more than $100 each. Herbert Pearson. appointed by the controller of the currency for the Federal National Bank of Boston, to-day was directing the preliminaries to liquidation, with bank officers still asserting that depositors would be paid in full. All the closed banks except the Lowell Trust company were affillates of the Federal National which, with its five Greater Boston branches, closed Tuesday. Hamden. Conn, Dec (UP) The Hamden and Trust pany closed to-day on straining order issued by the state commissioner The action was understood to have been taken to protect deposiThe bank's last statement listed general deposits and savings deposits of $688,000. tal of $200,000, of $75,000 and undivided profits $44,000. Examiner George of the state banking commission. who was the bank's books said the intervened after continued withdrawals by letter had placed the institution in an unlilquid position. was no "run" on the bank, he said. Heavy withdrawal of Christmas savings contributed to the bank's reported these charges as discovthe The article said that the committee had "secured evidence' secret payments money Columbia football that the committee had learned that athletes professional sports in the summer with knowledge of Columbia coaches. that committee had discovered that football players are favored with Columbia university scholarships and that one of the stars of the team was being supplied by money by "a friend of Columbia, president, said. He gave the following figures on the bank's funds at the time of its closing: Total deposits commercial and savings, $1,500,000, savings, $1,500,000, savings, $700,000. and undivided prefits( $44,000. Included in deposits are funds collected by the town tax collector. am convinced that depositors will receive every dollar deposited when the bank's finances are adBroadbent said. 'Inability to liquidate real estate and lateral loans and the depreciation of securities helped bring on the closing, he added. The bank has about 5,000 depositors. Hartford, Conn. Dec 17-(UP) Banking Commissioner George Bassett issued the following statement today the closing of the Hamden Bank and Trust Company. 'Due to inability to collect immediately certain loans which were in badly frozen condition and also due to the recent shrinkage in the market value of securities carried in the bank's portfolio, the officers of the bank found they unable to meet withdrawals and therefore for better protection of all their depositors the restraining order was placed. believed that the savings are well protected securities segregated in that department. Commissioner Bassett said the bank had total assets of $2,395,478.41 as of Sept 30, 1930.

6. December 18, 1931 Omaha World-Herald Omaha, NE
Article from Omaha World-Herald, December 18, 1931

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Bank Suspensions. Boston. "he Bos-Continental National bank with main offices on Devonshire street, downtown Boston, and four branches, remained closed at today. the time was posted comptroller of currency had asked to take it over to conserve assets, owing to heavy demands by depositors. the time of the consolidation the Boston National bank with Continental National bank about year ago the combined posits the merged institutions given as approximately $9. 500,000 and the combined resources were set at $11,000,000. Hamden, Conn. Hamden, Conn. Dec. 17 The Hamden Bank and Trust pany closed today Assets in last published statement were 097 Lowell, Mass. Business was suspended Lowell Trust company which cently reported savings and mercial deposits of $3,384,428 was the second Lowell bank to close within two days. the Middlesex National bank with deposits of $4,000,000 having tions yesterday. Burlington, N. Burlington, 17 The First National Bank of Burlington, with assets at the time last statement of approximate 150,000. closed order Barnett national bank examiner. R. W. Malone, was in active charge ed the tion action was due shrinkage in the value of bonds held. Calais, Calais, Me International Trust and Banking company here closed Wednesday It was announced the action necessar because of heavy drawals by Canadian depositors. Raleigh, N. rectors the Commercial tional bank, largest bank in the capital city, night voted close the bank holders. pending meeting the The September 29 ment of the bank listed deposits had a capital stock of $600,000. 000. Board of Trade Stocks Chicago, Minneapolis Bank Stocks Minneapolis, Dec. 17 East

7. December 19, 1931 The Springfield Daily Republican Springfield, MA
Article from The Springfield Daily Republican, December 19, 1931

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Lowell Trust Company Will Soon Reopen Doors Lowell, Dec. A. state bank examiner, nounced tonight that the Lowell Trust company, which closed its doors Wednesday, would reopen some of its He said the bank would be prepared at that accept payments on loans and mortgages which it holds. Access be also, he said, to deposit boxes, but deposits or withdrawals would be permitted.

8. December 19, 1931 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, December 19, 1931

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LOWELL TRUST TO REOPEN SOME DEPARTMENTS Dec A. Crowell, State bank examiner, announced tonight that the Lowell Trust Company which closed its nesday, reopen of its Monday. He said the would be prepared that time to accept loans and Access might also, said deposit boxes but, or withdrawals would be permitted.

9. December 28, 1931 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, December 28, 1931

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LOWELL CHAMBER OF COMMERCE ASKS DELAY LOWELL, Dec 28-The of the Chamber of Commerce, at a special meeting today, took action on the plan started by group of depositors to reopen the recently closed Lowell Trust Bank. Vice Pres Thomas M. A. Higgins was authorized to represent the chamber at between depositors, Gov Ely and Bark Guy, at he will submit to the Governor the following letter, which was approved by the and signed by Pres Lincoln Clark: The directors of the Lowell Chamber of Commerce of the opinion that liquidation of the recently closed Lowell Trust Company would entail loss which not fail to most hardship upon large number of our people and upon many business of this city. "If there is any plan of reopening the Lowell Trust Company which may be to Your Excellency and the Bank the Lowell Chamber of Commerce respectfull rec. ommends that liquidation proceedings be held in abeyance for sufficient length time allow such plan to be put into operation.'