8155. Middlesex National Bank (Lowell, MA)

View Charter #12343 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
12343
Charter Number
12343
Start Date
December 14, 1931
Location
Lowell, Massachusetts (42.633, -71.316)

Metadata

Model
gpt-5-mini
Short Digest
1e41bd82

Response Measures

Full suspension

Other: Closings were part of action by Comptroller/receiver; receiver later filed suits (1933).

Receivership Details

Depositor recovery rate
53.0%
Date receivership started
1932-02-03
Share of assets assessed as good
19.7%
Share of assets assessed as doubtful
73.3%
Share of assets assessed as worthless
7.0%

Description

Articles (Dec 15–16, 1931) report runs on Federal National Bank of Boston and its affiliated banks, including the Middlesex National Bank of Lowell. Directors asked the Comptroller of the Currency to take charge; a receiver was appointed the next day. Thus a run precipitated suspension and a receivership/closure. OCR errors in some articles corrected (dates inferred from publication dates).

Events (5)
1. March 31, 1923 Chartered
Source
historical_nic
2. December 14, 1931 Run
Cause
Correspondent
Cause Details
Runs developed on the Federal National Bank of Boston and its branches/affiliates, which precipitated heavy withdrawals at affiliated Middlesex National Bank
Measures
Directors voted to ask the Comptroller of the Currency to take charge; bank sought federal intervention to protect depositors.
Newspaper Excerpt
The closing of the Federal National Bank was the consequence of run that developed on the bank and its five branches in Boston yesterday
Source
newspapers
3. December 15, 1931 Suspension
Cause
Government Action
Cause Details
Directors requested Comptroller of the Currency to take charge; banks closed and state banks taken over by Bank Commissioner to conserve assets and protect depositors.
Newspaper Excerpt
Nine Massachusetts banking institutions ... were closed today. The list included four National banks ... The Federal National Bank, whose directors asked the Controller of Currency to take charge after runs at the bank and its branches yesterday
Source
newspapers
4. December 16, 1931 Receivership
Newspaper Excerpt
A receiver appointed by the comptroller of the currency to-day took charge of the affairs of the Federal National Bank of Boston... to-day he was to begin an appraisal of the Federal National's assets with a view to liquidation.
Source
newspapers
5. February 3, 1932 Receivership
Source
historical_nic

Newspaper Articles (14)
1. December 15, 1931 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, December 15, 1931

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Article Text

MIDDLESEX NATIONAL BANK OF LOWELL CLOSED TODAY LOWELL, The Middlesex National Bank, of the Federal National Bank did open for the board tors last evening order the assets of the deemed not great bonds, condition and that the local bank the to bring about the Donnel:, president the bank, out the statement in of the three and The at Merrimac the Trust Company prior when affiliated with the Federal Boston National trol. Judge presibank is member the FedReserve its listed Only alterations made the bank building.

2. December 15, 1931 The Berkshire Eagle Pittsfield, MA
Article from The Berkshire Eagle, December 15, 1931

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Article Text

FOUR NATIONAL AND FIVE STATE BANKS CLOSED Federal National Bank of Boston and Affiliated Institutions Involved Had Aggregate Deposits of in Last Statement BOSTON, banking institutions aggregate deposits, according to the latest statements of 000 were closed today. The list included four National Banks and State The central figin the closings was the Federal National Bank which has five city branches and with which all the other institutions were affiliated The Federal National whose directors voted to ask Comptroller Currency take on the bank had posits September $28,- Bank Deposits. The other and their latest Middlesex National Lowell, $4,000,000; the State National Lynn, the National Bank, Glouces$1,600,000; Bancroft Trust Company, the Trust Company, Lawrence Trust Lawrence, the Inman Trust Company, Cambridge, the Brockton Trust Company, Brockton, the Salem Trust ComSalem, Governor statement from home Westfield, said that the proper measures, for the speedy reopening could accomplished said he had structed Bank Arthur proceed with that view. Ely Hastens to left home Continued 19th Page

3. December 15, 1931 Fort Collins Coloradoan Fort Collins, CO
Article from Fort Collins Coloradoan, December 15, 1931

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Article Text

9 Banks Close Massachusetts Boston. (AP) Nine Massachusetts banking aggregate deposits, to the latest of closed today. The list included four national and five state banks. The central figure in the closings 12t-195G was the Federal bank Boston, which has five city es and with which all the other 3t-199G stitutions were affiliated. before The Federal National bank, whose directors voted to ask the comptroller of currency to take charge after runs at the bank and had posits, on 29, of 3t-199G The other banks and their available statements of deposit were: The Middlesex National bank. 3t-200G Lowell, $4,000,000; the State National bank, Lynn, $2,013,565; the GlouNational bank, $$1,600,000; See the Trust Worcester, $5,876,474 the Trust company, Lawrence, $9,555,926; the 5t-200G Cambridge, $3,808,412; the lyn Trust Brockton, $1,508,753; the Salem Trust company, Salem, $2,115,530.

4. December 15, 1931 The Lincoln Star Lincoln, NE
Article from The Lincoln Star, December 15, 1931

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Article Text

9 BAY STATE BANKS CLOSE Institutions Had Total Deposits of 58 Million. BOSTON, Dec. 15- (AP) Massachusetts banking institutions, with aggregate deposist, according to the latest staemens, 000, were closed oday. The list included banks and five state banks. The central figure in closings was the Federal National bank of Boston, which has five city branches and with which all the other institutions were affiliated The Federal National bank, whose directors voted to ask the comptroller of to take charge its at the bank and after runs branches had deposits on September 29 of The other banks and their latest available statements of deposit were: The Middlesex National bank, Lowell, $4,000,000; State National bank, Lynn. $2,013,565; Gloucester National bank, $1,600,000 $5,876,474; Bancroft Trust Co., Trust Lawrence, Lawrence $9,555,926; Inman Trust Cambridge, Brockton Trust Trust Co., Salem, $2,115,530 Plan Speedy Reopening in stateJoseph ment Gov. from his home in Westfield. said that with proper measures, plan for the speedy reopening be accomcould plished the and said he had instructed thur Guy to proceed with that end in Three view savings banks in East BosSouth Boston were periencing and small runs today They were independent of the group fected in today's closings and ficers sought to reassure depositors that their funds were safe.

5. December 15, 1931 The Record Stockton, CA
Article from The Record, December 15, 1931

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Article Text

NINE BANKS EAST FORCED BOSTON Dec. (Associated Boston banking institutions, aggregate deposits, cording to the statements of $58,700,000 closed today The list included four national banks and five banks The central figure the closings the FedNational Bank Boston which has five city branches and with which all the other institutions The Federal National Bank whose directors voted to ask the Comptroller Currency take charge after runs the bank and its branches had deposits on September OTHER ASSETS The other banks their latest available statements of deposit were The Middlesex National Bank Lowell State National Bank Lynn. $2,013,565 Gloucester National Bank. The Bancroft Trust Company. The Trust Lawrence $9,555,926 The Inman Trust Cambridge The Brock Company Brockton, The Salem Trust ComJoseph Ely in statement. said that with proper measplan for the speedy reopening of the institutions could be complished MAY REOPEN SOON President Daniel Mulloney of the National Bank exthe with careful handling depositors in his bank would receive 100 cents on the dollar GLOUCESTER Mass. Dec. (Associated The Gloucester National Bank. founded in 1796 and one of the oldest financial institutions the United States voluntarily closed doors today after heavy demands for withdrawals is associated with Federal Reserve Bank Boston

6. December 16, 1931 The Cincinnati Enquirer Cincinnati, OH
Article from The Cincinnati Enquirer, December 16, 1931

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Article Text

NINE BANKS CLOSED. Institutions Affected By Heavy Run At Boston. Boston. December 15 group of nine Massachusetts banks, having aggregate deposits of approximately $58,700,000. and of which the Federal National Bank of Boston was the central figure, was closed today The Federal National Bank, with which the other eight were affillated. had deposits of $28,235,233. according to its most recent statement condition Three other national banks were in the group that closed today They include the Middlesex National Bank of Lowell with deposits of approximately $4,000,000 the State National Bank of Lynn, with about $2,013,565 in deposits and the Gloucester National Bank Gloucester. which has deposits of approximately $1,600,000. Five state banks trust companies. had their affairs taken over by the Bank Commissioner, who announced their deposits to be approximately as follows the Bancroft Trust Company, Worcester $6,000,000; the Lawrence Trust Company. Lawrence, $8,860,000; the Brockton Trust Company. Brockton, $1,500,000; the Inman Trust Company, Cambridge, $3,500,000 and the Salem Trust Company, Salem. $2,200,000. The Bank Commissioner estimated that 75,000 depositors were affected by the closing of the state banks Joseph B. Ely. of Massachusetts expressed the belief that If prompt action were taken by the Federal authorities. making use of the National Credit Corporation, with the aid of the state authorities, speedy plan reorganization could be accomplished for the reopening of all the institutions. He said he knew of no reason why any other banks in the state should be affected Bank Commissioner Arthur Guy, pointing out that the trust companies were "affiliated with and controlled by the Federal National Bank, no other remained but to take possession of the trust companies to conserve the assets and for the protection of depositors.' The closing of the Federal National Bank was the consequence of run that developed on the hank and its five branches in Boston yesterday, after which the Directors voted to have the Comptroller of Currency take charge of the bank's affairs.

7. December 16, 1931 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, December 16, 1931

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Article Text

Boston, Dec 16.-(UP)-A receiver appointed by the comptroller of the currency to-day took charge of the affairs of the Federal National Bank of Boston, the closing of which has tied up deposits totaling $57,740,238. Herbert Pearson, the receiver, arrived from Washington last night at the end of a day which witnessed the closing of eight affiliated banks in central and eastern Massachusetts, To-day he was to begin an appraisal of the Federal National's assets with a view to liquidatoin. There were several reassuring reports, including the statement of President Daniel C. Mulloney that Federal National depositors would be paid 100 cents on the dollar, and the prediction of Gov Joseph B. Ely of Massachusetts that with "proper action" it should be possible to reopen all the closed institutions. The closed banks and their deposits follow:Federal Natoinal $28,235,238. Lawrence Trust Co, $8,000,000. Bancroft Trust Co of Worcester, $6,000,000. Middlesex National Bank of Lowell, $4,505,000. Inman Trust Co of Cambridge, $3,500,000. Lynn State National, $2,200,000. Salem Trust Co, $2,200,000. Gloucester National Bank, $1,600,000. Brockton Trust Co, $1,500,000. It was estimated that more than 75,000 depositors were affected by the bank closings. A suggestion by Governor Ely that the newly-organized National

8. December 16, 1931 Daily News New York, NY
Article from Daily News, December 16, 1931

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Article Text

9 BAY STATE BANKS FAIL WITH $58,700,000 DEPOSITS Boston, Dec. 15 (AP)Nine Massachusetts banking institutions, with aggregate deposits of $58,700,00, were closed today in the migst of the Christmas shopping season. The list included four National banks and five State banks. The central figure in the closings was the Federal National Bank of Boston, which has five city branches and with which all the other institutions were affiliated. The Federal National Bank, whose directors asked the Controller of Currency to take charge after runs at the bank and its branches yesterday, had deposits Sept. 29 of $28,235,238. Move for Reopenings. The other banks and their latest available statements of deposit were: Middlesex National Bank, Lowell, $4,000,000; State National Bank Lynn, $2,013,565; Gloucester Na tional Bank, $1,600,000; Bancroft Trust Company, Worcester, $5,876,474: Lawrence Trust Company Lawrence, $9,555,926; Inman Trust Company, Cambridge, $3,808,412 Brockton Trust Company, Brockton. $1,508,753; Salem Trust Company, Salem, $2,115,530. Gov. Joseph B. Ely, in a statement from his home in Westfield. said that with proper measures a program for the speedy re-opening of the institutions could be worked out and that he had instructed Bank Commissioner Arthur Guy to proceed with that end in view. Run on Savings Banks. Three savings banks in East Boston and South Boston were experiencing small runs today. President Daniel C. Mulloney of the Federal National Bank expressed the opinion that, with careful handling of resources, depositors in his bank would receive 100 cents on the dollar. The city of Boston had $900,000 on deposit in the Federal National Bank while the State had $773,889. besides $287,000 in other banks closed today. The bank commissioner's office estimated there were 75,000 depositors in the five State banks affected. Marion, 0., Dec. 15 (P).-The Marion National National Bank with resources of $1,911,422 failed to open today.

9. December 16, 1931 Daily News New York, NY
Article from Daily News, December 16, 1931

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Article Text

9 BAY STATE BANKS FAIL WITH $58,700,000 DEPOSITS sachusetts banking institutions, with aggregate deposits of $58,700,00, were closed today in the midst of the Christmas shopping season. The list included four National banks and five State banks. The central figure in the closings was the Federal National Bank of Boston, which has five city branches and with which all the other institutions were affiliated. The Federal National Bank, whose directors asked the Controller of Currency to take charge after runs at the bank and its branches yesterday, had deposits Sept. 29 of $28,235,238. Move for Reopenings. The other banks and their latest available statements of deposit were: Middlesex National Bank, Lowell, $4,000,000; State National Bank, Lynn, $2,013,565; Gloucester National Bank, $1,600,000; Bancroft Trust Company, Worcester, $5,876,474; Lawrence Trust Company, Lawrence, $9,555,926; Inman Trust Company, Cambridge, $3,808,412; Brockton Trust Company, Brockton, $1,508,753; Salem Trust Company, Salem, $2,115,530. Gov. Joseph B. Ely, in a statement from his home in Westfield, said that with proper measures a program for the speedy re-opening of the institutions could be worked out and that he had instructed Bank Commissioner Arthur Guy to proceed with that end in view. Run on Savings Banks. Three savings banks in East Boston and South Boston were experiencing small runs today. President Daniel C. Mulloney of the Federal National Bank expressed the opinion that, with careful handling of resources, depositors in his bank would receive 100 cents on the dollar. The city of Boston had $900,000 on deposit in the Federal National Bank while the State had $773,889. closed today. The bank commissioner's office estimated there were 75,000 depositors in the five State banks affected. Marion, O., Dec. 15 (/P).-The Marion National National Bank with resources of $1,911,422 failed to open today.

10. December 16, 1931 Daily News New York, NY
Article from Daily News, December 16, 1931

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Article Text

9 BAY STATE BANKS FAIL WITH $58,700,000 DEPOSITS Boston, Dec. 15 (/P)Nine Massachusetts banking institutions, with aggregate deposits of $58,700,00, were closed today in the midst of the Christmas shopping season. The list included four National banks and five State banks. The central figure in the closings was the Federal National Bank of Boston, which has five city branches and with which all the other institutions were affiliated. The Federal National Bank, whose directors asked the Controller of Currency to take charge after runs at the bank and its branches yesterday, had deposits Sept. 29 of $28,235,238. Move for Reopenings. The other banks and their latest available statements of deposit were: Middlesex National Bank, Lowell, $4,000,000; State National Bank, Lynn, $2,013,565; Gloucester National Bank, $1,600,000; Bancroft Trust Company, Worcester, $5,876,474; Lawrence Trust Company, Lawrence, $9,555,926; Inman Trust Company, Cambridge, $3,808,412; Brockton Trust Company, Brockton, $1,508,753; Salem Trust Company, Salem, $2,115,530. Gov. Joseph B. Ely, in a statement from his home in Westfield, said that with proper measures a program for the speedy re-opening of the institutions could be worked out and that he had instructed Bank Commissioner Arthur Guy to proceed with that end in view. Run on Savings Banks. Three savings banks in East Boston and South Boston were experiencing small runs today. President Daniel C. Mulloney of the Federal National Bank expressed the opinion that, with careful handling of resources, depositors in his bank would receive 100 cents on the dollar. The city of Boston had $900,000 on deposit in the Federal National Bank while the State had $773,889. besides $287,000 in other banks closed today. The bank commissioner's office estimated there were 75,000 depositors in the five State banks affected. Marion, 0., Dec. 15 (A).-The Marion National National Bank with resources of $1,911,422 failed to open today.

11. December 16, 1931 Daily News New York, NY
Article from Daily News, December 16, 1931

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9 BAY STATE BANKS FAIL WITH $58,700,000 DEPOSITS Boston, Dec. 15 (A).-Nine Massachusetts banking Institutions, with aggregate deposits of $58,700,000, were closed today in the midst of the Christmas shopping season. The list included four National banks and five State banks. The central figure in the closings was the Federal National Bank of Boston, which has five city branches and with which all the other institutions were affiliated. The Federal National Bank, whose directors asked the Controller of Currency to take charge after runs at the bank and its branches yesterday, had deposits Sept. 29 of $28,235,238. Move for Reopenings. The other banks and their latest available statements of deposit were: Middlesex National Bank, Lowell, $4,000,000; State National Bank, Lynn, $2,013,565; Gloucester National Bank, $1,600,000; Bancroft Trust Company, Worcester, $5,876,474; Lawrence Trust Company, Lawrence, $9,555,926; Inman Trust Company, Cambridge, $3,808,412; Brockton Trust Company, Brockton, $1,508,753; Salem Trust Company, Salem, $2,115,530. Gov. Joseph B. Ely, in a statement from his home in Westfield, said that with proper measures a program for the speedy re-opening of the institutions could be worked out and that he had instructed Bank Commissioner Arthur Guy to proceed with that end in view. Run on Savings Banks, Three savings banks in East Boston and South Boston were experiencing small runs today. President Daniel C. Mulloney of the Federal National Bank expressed the opinion that, with careful handling of resources, depositors in his bank would receive 100 cents on the dollar. The city of Boston had $900,000 on deposit in the Federal National Bank while the State had $773,889. besides $287,000 in other banks closed today. The bank commissioner's office estimated there were 75,000 depositors in the five State banks affected.

12. March 15, 1932 Biddeford-Saco Journal Biddeford, ME
Article from Biddeford-Saco Journal, March 15, 1932

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MARCH TRADE SHOWS GAINS EXPERT STATES Fundimentals Better Than Above Surface. Cleveland, Ohio, March conditions are better in March than they were in December, January or February, says Colonel Leonard Ayres, vice president of the Cleveland Trust company and nationally known economist. adds Colonel Ayres, "despite the fact business activity not greater now than it was then. improvement," he explains, in the rather than on the surface. present fact, though to but slight degree reflected in the figures. recent weeks there has been long series of developments that either directly conductive business improvement or are safeguards against continued decline. Even partial list of them makes impressive array. Reconstruction Finance Corporation in effective operation, and made considerable number of loans railroads financial institutions. The bill has been enacted into law, and has increased the flexibility the federal reserve system. The voluntary wage adjustments of the railroad ployes have been into effect. put Bank suspensions have greatly decreased. hoarding of money has only been checked, but the movement has been reversed, and funds that were being held out of circulation are being returned the banks. Bond prices have been rising steadily for month, and stock prices have shown renewed strength. decline in commodity prices has been less and ing recent weeks the numbers of advances in the lists have the numbers of the declines. The duction pig iron increased in February and four additional blast furnaces were blown in. There has been small but well distributed increase railroad freight loadings. There were increases February in the production textiles, leather goods, cement and tobacco products, after making allowance seasonal changes. Lowell, for the closed Middlesex National bank calls for submission of claims against the bank. Cambridge, clinic at Harvard has received reporting dreams the kidnapping of Charles Lindbergh,

13. March 14, 1933 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, March 14, 1933

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LOWELL BANK RECEIVER FILES BILL AGAINST GUY William Roelker, for the Middlesex Bank Lowell, has filed bill in equity in the United States district court against the Inman Company Cambridge and Arthur Guy, asking to void all sales of loans to the Middlesex National Bank by Inman Trust Company made in 1931 and accounting all sums paid by the bank to the Trust Company in the sales. The bank is made party to the suit because he now charge the trust company. The value of the on Dec 15, 1931, the day the company was closed. was $57,191.10.

14. October 23, 1933 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, October 23, 1933

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SUES INMAN, BANCROFT TRUST COMPANIES Bank Commissioner Guy Also Named in Action Brought by Lowell Bank Receiver Arthur Trust defendants brought receiver the Middlesex National Bank Lowel! nearly from tangled $60,000,000 Federal the two president of the Frank Farrell and John directors the National the transactions for which he is now seeking with the State the Inman listed named appears institutions are following the colthe the Controller of Currency declaration filed suit, from of the Mid. trust, and controlled Danpresident of the director the Inman Trust. that and August, the Middlesex National Inman Trust for certain notes, worth1929 notes 1931, the date which Federal and the affiliates closed their doors. these transactions, which breaches trust the persons Middlesex National, receiver seeks accounting and asks that the Bank the claims the Middlesex, which he thus far Hall & the the Middlesex these suits. Both Farrell and Mulloney, whose appear these suits, are under criminal the eral Grand for alleged banking irregularities.