8197. City National Bank & Trust Company (Niles, MI)

View Charter #13307 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
13307
Charter Number
13307
Start Date
February 11, 1933
Location
Niles, Michigan (41.830, -86.254)

Metadata

Model
gpt-5-mini
Short Digest
9b11c24f61f48c2c

Response Measures

None

Receivership Details

Depositor recovery rate
99.5%
Date receivership started
1933-09-18
Date receivership terminated
1940-04-26
Share of assets assessed as good
40.8%
Share of assets assessed as doubtful
59.1%
Share of assets assessed as worthless
0.1%

Description

The articles describe the City National Bank & Trust Company of Niles as having closed under the statewide moratorium (Governor Comstock's Feb. 11 bank moratorium), placed under conservatorship/receivership, liquidated, and reorganized with a new First National Bank formed from the reorganization. The original City National remained defunct with a receiver and dividend distributions were paid in 1934. OCR errors in articles were corrected (e.g., 'comptroller' and names). There is mention that a 'heavy run' and the moratorium's psychological effect contributed to the bank's troubles, but the primary documented action was the moratorium/government action and subsequent receivership and liquidation of the City National, so classification is suspension_closure.

Events (8)
1. April 1, 1929 Chartered
Source
historical_nic
2. February 11, 1933 Suspension
Cause
Government Action
Cause Details
Statewide moratorium declared by Governor Comstock (Feb. 11, 1933) that led to the bank's closure/suspension
Newspaper Excerpt
the moratorium declared last February 11 by Governor Comstock for all banks Michigan
Source
newspapers
3. June 25, 1933 Other
Newspaper Excerpt
now closed City National Bank Trust company ... effort to sell the remaining 2,012 shares ... proposed new bank can receive its charter. committee will seek to sell the shares to persons holding deposits of less than $1,000 in the now closed City National Bank Trust company
Source
newspapers
4. September 18, 1933 Receivership
Source
historical_nic
5. September 19, 1933 Other
Newspaper Excerpt
Conservatorship of Depository definite step toward liquidating the remaining assets of the old City National Trust company ... H. Botkin appointed for the old bank by federal banking authorities. Mr. Botkin's plan will be to try to liquidate the old bank's assets quickly ... the conservator since March ... new bank in its fifth week.
Source
newspapers
6. December 7, 1933 Receivership
Newspaper Excerpt
The receivership office for the City National Bank Trust company located on the second floor of the bank building ... the bank closed two years age.
Source
newspapers
7. May 28, 1934 Other
Newspaper Excerpt
Bank Receiver Urges Filing of Deposit Claims ... Only about 800 of the 2,600 depositors of the defunct City National Bank and Trust company have filed claims in receivership. H. Botkin announced today.
Source
newspapers
8. December 21, 1934 Other
Newspaper Excerpt
1,751 depositors in the former City National Bank and Trust Company received ... another 10 per cent making total distribution of $85,840.55, from the receiver, H. R. Botkin.
Source
newspapers

Newspaper Articles (5)
1. June 25, 1933 The South Bend Tribune South Bend, IN
Article from The South Bend Tribune, June 25, 1933

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Article Text

PUSH NEW BANK PLAN IN NILES Small Depositors Will be Reached This Week by Committee. Tribune's Special Service June certed effort to sell the remaining 2,012 shares of Niles bank stock, which must be subscribed before the proposed new bank can re. ceive its charter, will be made early next week by a small depositors' committee formed this afternoon. The committee will seek to sell the shares to persons holding deposits of less than $1,000 in the now closed City National Bank Trust company, Of the 7,000 shares of common stock offered for sale, 4,988 have been purchased at $12 share for total of This amount is aug. mented by $80,000 in preferred stock which has been purchased by public bodies having deposits in City National bank Under the present plan, suggesteu by federal bank inspectors who investigated the condition of the City National bank after conservator had been appointed new bank will be formed through depositors of the City National bank 15 per cent of their frozen deposits into new bank stock. By this means the $110,000 in capital and surplus, necessary before the new bank will be chartered can be raised. The finance committee of the American legion. which approved the plan. called meeting of small depositors Fri. day night and publicly endorsed the plan. The small depositors who had agreed to the plan met this afternoon and decided to make personal calls on all small depositors who have not yet subscribed to the bank stock An extensive three-day campaign will be carried committee will canvas the rural districts This committee. headed by Will liam Wright as chairman. in composed of George Gillam, Clarence Coolidge, Frank Woods. Floyd Higgins, Richard Hain, Carl Trattles, Durlin Wheeler and Rolf Taylor.

2. September 19, 1933 The Niles Daily Star Niles, MI
Article from The Niles Daily Star, September 19, 1933

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Article Text

Conservatorship of Depository definite step toward liquidating the remaining amets of the old City National Trust company where the and the First National Bank of Niles taken Monday when H. appointed for the old bank by federal banking authorities. Mr. Botkin formerly was receiver the defunct First National bank, Buchanan, lately has been for national banks Algonae Marine City, He arrived Niles Monday afternoon and relieved Farquhar, conservator the old bank since March STRONG PAYMENT SEEN Mr. Botkin's plan will be to try to liquidate the old bank's assete quickly as can done consistently with view getting the depositors 100 While only the actual liquidation will reveal what percentage of the Crozen deposits turned cash for distribution. believed the frozen assets will pay out strongly. More than half of the assets taken by the bank, addition the first 10 cent payment per allowed after the old bank was placed under management conservator. require days for the celver to check up the old maining assets. but estfaround $400,000. the moratorium declared last February 11 by Governor Comstock for all banks Michigan. believed in local bankcircles that the old City National would have weathered the economic storm. considered true that was not actually insolvent the time. the psychological effect the moratorium made certain that would have been subjected Heavy run It did reopen. The old bank had more than enough cash hand for ordinary business. and the depositors profited by the manner in which the affairs the old bank handled. NEW BANK HELPFUL The community also profited much getting sound bank storation of complete banking facille Mr. Farquhar pleased to from the he sires to give his full time his duties vice president, cashier and manager the new bank. The bank in Its fifth week. President

3. December 7, 1933 The Niles Daily Star Niles, MI
Article from The Niles Daily Star, December 7, 1933

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Article Text

Bank Receivers Are Changed at Buchanan receivers for the First change Buchanan, into National H receiver efect National Bank Trust the City ppointment Attorney Fremont leading Berrien Evans, Democrat. The latter will tinue receiver for the defunct Niles bank. Mr. Payne still is receiver for the American National bank. Benton Harthe Commercial National bank Trust company St. Joseph. The change in accord with the poltey of comptroller of the currency for consolidating the work in communities. The receivership office for the City National Bank Trust company located on the second floor of the bank building. the ground floor being occupied by the First National Bank of Niles, formed out of the reorganization the old bank. The office for the bank will be maintained in the bank building as It has since the bank closed two years age.

4. May 28, 1934 The Niles Daily Star Niles, MI
Article from The Niles Daily Star, May 28, 1934

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Article Text

Bank Receiver Urges Filing of Deposit Claims Only about 800 of the 2.600 depositors of the defunct City National Bank and Trust company have filed claims in receivership. H. Botkin announced today. Receiver Botkin urges that all per. having the defunct bank file them at once in ordet. that the, work of liquidation claims might result in many' persons not getting their claims filed under the legal requirements. he said. When the call was made some time ago for claims to be filed. Receiver Botkin expected that all would be filed before the end of this month. Many owners of deposits, it seems, cling to the erroneous belief that they do not need to file claims with the receiver. since they filed claims with the conservator before the reor ganization which resulted in formation of the First National Bank of Niles Regardless of claims filed with the conservator and the bank, all depositors must file claims with the ceiver, Mr. Botkin says. He urges all depositors n the old bank to file Apiarists say honey bees get their first nectar in the spring from elm trees which bloom exceedingly early.

5. December 21, 1934 The Kalamazoo Gazette Kalamazoo, MI
Article from The Kalamazoo Gazette, December 21, 1934

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Article Text

1,751 DEPOSITORS AT NILES GIVEN 10 PCT. NILES, Dec. 21. The 751 depositors in the former City National Bank and Trust Company received Christmas aid Thursday when they were paid another 10 per cent making total distribution of $85,840.55, from the receiver, H. R. Botkin. The first dividend was for 55 per cent. The comptroller of currency had urged the receiver to speed up the distribution that all claims might be paid by Christmas.