8218. Salem Trust Company (Salem, MA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
March 31, 1933
Location
Salem, Massachusetts (42.520, -70.897)

Metadata

Model
gpt-5-mini
Short Digest
85152d7c

Response Measures

None

Description

Articles describe the Salem Trust Company as closed/defunct; no run is reported. Closure appears tied to misuse of bank funds by the president and ensuing criminal conviction and litigation to recover losses. Thus this is a suspension leading to permanent closure. Key dates from the newspapers: March 31, 1933 (president convicted; bank described as closed) and Oct 19, 1933 (litigation concerning the closed bank).

Events (3)
1. March 31, 1933 Other
Newspaper Excerpt
John A. Deery's so-called vacation at the Essex county industrial farm ... An hour after Deery, president of the closed Salem Trust company, was convicted ... ordered him taken from the jail to the county farm ... Depositors of the closed bank led protests against alleged coddling of the banker.
Source
newspapers
2. March 31, 1933 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed amid discovery/misuse of bank funds by its president (criminal conviction for misuse of funds).
Newspaper Excerpt
president of the closed Salem Trust company. was convicted Wednesday of misuse of bank funds
Source
newspapers
3. October 19, 1933 Receivership
Newspaper Excerpt
DECISIONS DUE SOON ON TWO SALEM TRUST CASES ... how much money paid of the closed Salem Trust Company ... attempting to recover $75,000 ... $90,000 ... the defunct bank, through the State Bank Commission attempting to recover ... from the Federal National Bank Boston.
Source
newspapers

Newspaper Articles (3)
1. March 31, 1933 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, March 31, 1933

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Article Text

BANK PRESIDENT MUST RETURN TO HIS JAIL CELL John A. Deerey of Salem Had Been Favored, But Depositors Kicked and He Goes Back Salem, Mass., March 31 -(UP)- John A. Deery's so-called "vacation" at the Essex county industrial farm in Middleton was ended today when the county commission, heeding widespread protests. ordered the 46-year-old banker returned to Salem county jall. An hour after Deery, president of the closed Salem Trust company. was convicted Wednesday of misuse of bank funds, the commission ordered him taken from the jail to the county farm where some "60 honor prisoners" work in the fields and barns. Depositors of the closed bank led protests against alleged "coddling" of the banker ,and a resolution had been introduced without success in the state legislature seeking an investigation into the commission's action. Commissioners Robert H. Mitchell, Raymond Trefry, and Fred Butler, in ordering Deery back to Salem jail, said that in sending him to the farm they had acted informally and without any deliberations, merely granting the request of the banker's attorney. They said transfer to the county farm was usually granted to prisoners, except those addicted to violence, and they pointed out that prisoners at the farm did more work than those at Salem jail. During his short stay at the farm Deery had been assigned to the piggery.

2. March 31, 1933 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, March 31, 1933

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Article Text

BANK PRESIDENT MUST RETURN TO HIS JAIL CELL John A. Deerey of Salem Had Been Favored, But Depositors Kicked and He Goes Back Salem, Mass. March John Deery's so-called tion" at the Essex county industrial farm in Middleton was ended today when the county commission, heeding widespread protests. ordered the 46-year-old banker returned to Salem county An hour after Deery. president of the closed Salem Trust company. was convicted Wednesday of misuse of bank funds, the ordered him taken from the jail the county farm where some honor prisoners" work in the fields and barns. Depositors of the closed bank led protests alleged "coddling" of the banker and resolution had been introduced without success in the state legislature seeking an investigation into the commission's action. Commissioners Robert H. Mitchell, Raymond Trefry, Fred Butler, in ordering Deery back to Salem jail, said that in sending him to the farm they had acted informally and without any deliberations, merely granting the request of the banker's They said transfer to the county farm was usually granted to prisoners, except those addicted to violence, and they pointed out that prisoners the farm did more work than those Salem jail During his short stay at the farm Deery had been assigned to the piggery.

3. October 19, 1933 The Boston Daily Globe Boston, MA
Article from The Boston Daily Globe, October 19, 1933

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Article Text

WRITS SERVED ON BIG STOCKHOLDERS Federal National Bank Receiver Seeks To Recover $1,500,000 Writs are being served today the Federal National Bank to ap$1,500,000 stock promissory notes. The step the filing of the actual suits Dec 19. Herbert of the the suits Comptroller of the Currency in Washington as the major drive his campaign force linquent debtors closed institusettle their debts. So the bank in only assessfraction the total against the stock of the bank. Most of this sum, learned this morning, was paid voluntarily by small had been stock in the placed their life savings in Federal National stock are paying off their The list men against whom are being follows: Daniel Theodore M. Logan, former president. John M. Emerson, Brookline. John Deery, Joseph O'Neil, former chairman Philip Baird, Brookline William Mahoney, Winthrop. Thus far suits been filed the State and Federal Courts to reand sums owed on notes. hundred and for than $1000, filed the State Court, while the being fought out in the Federal Courts. In 1932, the Comptroller of the Currency outstanding Federal National rate $20 The ordered paid June 16, 1932. Few of the major stock- holders paid their voluntarily before the prescribed date. DECISIONS DUE SOON ON TWO SALEM TRUST CASES SALEM, Oct decisions expected made soon in two results will bearing upon how much money paid of the closed Salem Trust Company. the defunct bank, through the State Bank Commissionattempting to recover $75,000 the Conibond, covering the bank against loss dishonest of its officers and employes. Trial of the latter opened auditor Charles F. Bickford and be resumed today, and decision The hearings have been held the Superior House, but the of the parties of case will be heard at Mr law second suit the local closed bank is $90,000 and from the Federal National Bank Boston. the case which it alleged Alfons Fischer, treas. urer Salem Trust Company, after hours without authority of the directors for that act, all the collateral rethe commercial department in Boston, where he turned Federal making the same time. The bill alleges knew both banks insolvent at the time only closed. The heard before Federal Jhdge Boswaiting for both sides file briefs on points after which prompt decision is expected.