9028. Detroit Trust Company (Detroit, MI)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
trust company
Start Date
March 29, 1933
Location
Detroit, Michigan (42.331, -83.046)

Metadata

Model
gpt-5-mini
Short Digest
4fbc347a

Response Measures

None

Description

Conservator was appointed (state action) in March 1933 and the State Banking Advisory Committee approved a rehabilitation plan in July 1933, indicating the institution suspended operations under conservatorship and later had an approved plan to resume. Articles discuss closed status, grand-jury probes, and rehabilitation plans; there is no explicit description of a depositor run in the provided texts.

Events (5)
1. March 29, 1933 Other
Newspaper Excerpt
Mayville Banker Will Bring Action Under New Laws; ... federal conservators. ... Harry appointed conserby the for the Detroit today was in charge of that institution. In issued by the trust company was pointed out that they had asked the state bank. invoke provisions the emergency use the closing the banking esfor depositors the trust company to withdraw Four(Continued on Page Eight)
Source
newspapers
2. March 29, 1933 Suspension
Cause
Government Action
Cause Details
State conservator/commission appointed for the Detroit Trust Company; part of state actions following the February 1933 banking holiday that closed institutions and placed them under conservatorship.
Newspaper Excerpt
Detroit Trust company, Anderson, Wilcox, Lacey and Lawson.
Source
newspapers
3. July 25, 1933 Reopening
Newspaper Excerpt
State Board Gives Approval to Detroit Trust Co. Plans ... Arthur Lacy, Detroit attorney, presented plan Detroit Trust Co. ... provision has made for 100 per cent payment ... Old stock to be canceled and new stock will be issued. ... substantial assets have been liquidated by Harry Fox, conservator ... condition the company has been improved.
Source
newspapers
4. August 24, 1933 Other
Newspaper Excerpt
Father Coughlin charged ... that Detroit bankers looted the innocent Detroit Trust Company ... the Detroit Trust company - a state institution.
Source
newspapers
5. August 29, 1933 Other
Newspaper Excerpt
Records Called In. ... Conservators of the two companies, the Union Guardian Trust Co. and the Detroit Trust Co., must appear in court ... H. J. Fox, conservator for the Detroit Trust Co., was called to court and given the order.
Source
newspapers

Newspaper Articles (12)
1. March 29, 1933 Battle Creek Moon-Journal Battle Creek, MI
Article from Battle Creek Moon-Journal, March 29, 1933

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Article Text

CONSERVATORS ARE APPOINTED (Continued from Page One.) State Bank of Linwood, Linwood, Joseph A. Ouillette Lincoln State bank, Lincoln, W. G. Anderson. Rockwood State bank. RockWagar. and Merchants State bank, Wheeler. Henry Mead. Armada State bank, Armada. James Neeley. State bank, Brighton, Savings bank. MoAddison State Savings bank AdB. Zeeland State bank. Zeeland. Den Herder. State Bank of Vestaburg. Vesta burg. Andrew W. Orr Blanchard State bank, BlanchAndrew Orr. State Bank of Six Lakes. Six Lakes. Andrew Orr. Newport State bank, Newport. Thomas Rabbitt Farmers Merchants State bank. Mesick, Lewis M. Hilton First State bank. Ashley, Garland State bank, Van Dyke, Eugene Carey Saranac State bank. Saranac Charles Huhn. First State Bank of Swift First State bank, Maple Rapids, H. Annis Moline State bank, Moline. Joe Haveman. First State bank, White H. Gustin. Algonac Savings bank, Algonac, W. Folsom. American Home Security, Grand Rapids, Howard Lawrence. Appointment of the following torneys to represent conservators was announced by the commission: Flint Union Industrial bank, Guy Wilson. Genesee County Savings Neithercut and Neithercut. Detroit Trust company, Anderson, Wilcox, Lacey and Lawson.

2. March 29, 1933 The Times Herald Port Huron, MI
Article from The Times Herald, March 29, 1933

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Article Text

PLANS LEGAL FIGHT TO FREE BANK RESERVE Mayville Banker Will Bring Action Under New Laws; Detroit Suit Delayed Press) Eveof the State bank Detroit today, preparing to instigate legal proceedings an effort bring about the release bank deposits in the national banks, now under control of federal conservators. fight the of under the new tional and state legislation. He described present system of tying outstate reas making the release of funds by state ers He said his bank only deposits in two national banks here, and that now Harry who Tuesday took steps to enlist his services in of the federal of Detroit conditions Pratt, assistant United States general, met with Gregory Frederick, United States district attorand offered his services in the Harry appointed conserby the for the Detroit today was in charge of that institution. In issued by the trust company was pointed out that they had asked the state bank. invoke visions the emergency use the closing the banking esfor depositors the trust company to withdraw Four(Continued on Page Eight)

3. July 26, 1933 Detroit Free Press Detroit, MI
Article from Detroit Free Press, July 26, 1933

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Article Text

State Board Gives Approval to Detroit Trust Co. Plans LANSING, July 25-(A. organization plans for the Detroit Trust Co., the Home Savings Bank of Kalamazoo and the Alpena Trust Savings Bank were approved Tuesday by the State Banking Advisory Committee. Details were worked by bank officials with the proval the State Banking Department. Arthur Lacy, Detroit attorney, presented plan Detroit Trust Co. to the committee. He said that provision has made for 100 per cent payment all dividends can be paid to new stockholders. Old stock to celed and new stock will be issued. He said that substantial assets have been liquidated by Harry Fox, conservator, that the condition the company has been im. proved. Under the plan depositors and creditors allowed purchase preferred stock at $40 may pay for with deposited funds. The plan contemplates 100 per cent assessment of old stock, but old stockholders may purchase stock at $20 share they pay the assessment voluntarily Reichert, banking commissioner, authorized the purchase home loan bonds under the Federal Home Loan Relief Act.

4. July 27, 1933 Detroit Free Press Detroit, MI
Article from Detroit Free Press, July 27, 1933

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Article Text

Judge Indorses Accounting of Fidelity Bank Receivers Circuit Judge Ormond F. Hunt approved Wednesday the final accounting in The Fidelity Bank & Trust Co. receivership as submitted by J. Walter Drake and Harry J. Simultaneously he accepted the resignation of Fox as receiver. The hearing on the final accounting was ordered after Fox tendered his resignation June 18 to become receiver for The Detroit Trust Co. of the State Banking Commissioner did not appear at the hearing to reiterate their objections to the accounting.

5. August 24, 1933 Imperial Valley Press El Centro, CA
Article from Imperial Valley Press, August 24, 1933

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Article Text

PRIEST MAKES MORE CHARGES Father Coughlin Denies Accusation Of Detroit Paper That He Played Market. By JAMES C. AUSTIN United Press Staff Correspondent DETROIT, Aug. 24. (U.P)-Father Charles E. Coughlin charged before a grand jury investigation of collapse of Detroit banks today that "politicians" are blocking payments to depositors of closed institutions, The outspoken priest criticized American capitalism as doing more than the writings of Karl Marx to foster Communism, branded as false a published fascimile purporting to show he had a brokerage account and charged that Detroit bankers looted the innocent Detroit Trust Company. Renewing his controversy with the Detroit Free Press, he attacked as false a facsimile of a stock account published by the paper. The Free Press took the account sheets of another person, wiped out the real name, had my name put in and then charged me with being a 'stock gambler`," he chargca. Resuming his discussion of the holding companies he charged the Detroit Bankers company "looted the innccent Detroit Trust company-a state institution. (He paused, then added) They were afraid of federals." Purchased Stock Father Coughlin, under questioning of Attorney General Patrick H. O 'Brien said he had purchased Kelsey stock 'but not through any stock brokerage house-through a bank." He said the stock was purchased to the account of the Radio League of the Little Flower as 'an investment.' The priest delved into the complicated and technical records of the arious banks and holding companies charging that the Detroit bankers borrowed heavily from the Detroit Trust company when "they knew they were going under." He cited one loan of $300,000 which he said was supported by a list of collateral "now estimated to be worth only $55,000 by a reputable brokerage firm." 'What is blocking the payments to depositors of these closed banks today?'' O'Brien questioned. "It's the politicians who are blocking depositors, Father Coughlin replied. Get rid of the Connellys and the Groesbecks (receivers for the two bank holding companies) and the government will step in. Meanwhile Judge Harry B. Keidan announced he had not abandoned efforts to bring former President Herbert Hoover here as a witness.

6. August 29, 1933 The Des Moines Register Des Moines, IA
Article from The Des Moines Register, August 29, 1933

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Article Text

RECORDS CALLED IN BANK PROBE Detroit Jury Prepares to Scan Books. for the records of two Detroit trust companies for the purposes of "thorough examination" went out Monday from the one-mar bank jury. It was the first move to follow charges by Senator Couzens officials had "acted iniquitously" preceding Michigan's famous banking holiday Records Called In. The call, issued by Judge Harry B. Keidan, sitting as the one-man jury, testimony of Arthur J. Lacy, Senator Couzens' personal who scored New York bankers as "coldblooded" and declared he did not believe there was anything criminal in a charge made by the senator against one trust company. Conservators of the two companies, the Union Guardian Trust Co. and the Detroit Trust Co., must appear in court, Judge Keidan said, with all the records of the two institutions. Conservators to Appear. Examination will be conducted by the with the cooperation of the state attorney general and the prosecutor's office. H. J. Fox, conservator for the Detroit Trust Co., was called to court and given the order. G. H. Kirchner for the Union Guardian will be called as soon as he returns from a business trip. Charged Fund Switching. The Michigan senator, appearing before the jury last week, had declared the Detroit Trust Co. and the First National Bank Detroit 'switched funds" between themselves to increase their respective cash positions. He charged the Union Guardian Trust Co. with jockeying the $10,000,000 children's fund of Michigan, founded by Couzens, out of $200,000 deposited there. He demanded that the jury study the books of the two companies. Doubts Criminal Action Lacy testified he did not believe there had been any criminal B.C. tion in the conduct of the Detroit trust company of which he also attorney He discussed the charge of Senator Couzens against the Union Guardian Trust Co., and reported he believed there was nothing 'criminal or illegal" in the children's fund transaction. in which Senator Couzens says $200,000 was lost. "Cold Blooded" Banking. Lacy, known in Michigan through his efforts to rehabilitate banks to the state holiday Feb 14, digressed to score what he termed "cold blooded banking "The New York banks, he declared, "were cold blooded before the national bank holiday When loans matured they sold them out If all the country had done the same thing. it would have brought on national banking collapse one year earlier, believe."

7. August 29, 1933 The Charlotte Observer Charlotte, NC
Article from The Charlotte Observer, August 29, 1933

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DETROIT BANK RECORDS DEMANDED FOLLOWS COUZENS CLAIM Call, Issued by One-Man Jury, Interrupts Testimony of Senator's Lawyer. for the records two Detroit the purposes went out today the Detroit jury, the first move follow charges Senator James Republican of Michigan, that trust company ficals iniquitously' preceding Michigan's famous banking holiday. The call. Issued by Judge Harry B. Keidan, sitting the jury, interrupted testimony of thur Lacy, Senator scored New York bankers before the jury and declared did not believe there was criminal in charge made by senator against company Conservators of two companies, the Union Guardian Trust company, and the Detroit Trust company, must appear in court, Judge Keidan with all the records of the two institutions. Ex. amination will be conducted by the conservators with the of the state attorney and prosecutor's office Harry Fox, conservator for the Detroit Trust company, was called to court today and given the order. George H. Kirchner, for the Union Guar dian, be called as soon as returns business trip. COUZENS' CHARGES. The Michigan senator, appearing before the jury last week, had declared the Detroit Trust comand the First National Bank Detroit funds" between to increase their respective cash positions, charged the Union Guardian Trust company 'jockeying' the $10,000,000 children's fund of Michigan, founded by Couzens, out of deposited there. He demanded that the jury study the books of the two companies. Lacy, from the witness stand today testifed he did not believe there had been any criminal tion the conduct the Detroit Trust company of which he also attorney. He discussed the charge of Senator against the Union Guardian Trust company, and reported he bethere was "criminal or illegal" the children's fund which Senator Couzens says $200,000 was lost. Lacy, well-known in Michigan through his efforts rehabilitate banks previous to the state holiday February 14, digressed during his presentation of detailed testimony today to what he termed banking.

8. August 30, 1933 The Niles Daily Star Niles, MI
Article from The Niles Daily Star, August 30, 1933

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McGonagle Tells Jury Padding Accounts Report Not True. DETROIT. Aug. of charges of "Iniquitous acts" the closed First National and the Detroit Trust company made recent testimony by Senator James Couzens and the Rev. Charles Coughlin, before the oneDetroit bank auditor for the First National, questioned as charges by the militant priest who tes. tified last week. said "someone been misinformed' after being read the statement Father Coughlin that accounts bank had been deliberately padded before the state banking holiday Thomas Long, counsel for the First National and the Detroit Trust denied charges made by Senator the stand last check "kiting" and reciprocal posits between the institutions which tended to show greater than acassets. McGonagle said that on Feb. 11, 1933. the day the First National open, there was least available cash in The liability the time more than The declared that there been concealment of figures, and questionwhy the statement the bank did not show the amount of pledged presented ments from various parts the try show that pledged assets did appear among them.

9. August 30, 1933 The Saginaw News Saginaw, MI
Article from The Saginaw News, August 30, 1933

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OLD TIMERS GATHER AT "CAMP 16" SCENE BANKERS DENY Couzens and Coughlin Accusations Disputed by Long and McGonagle. CHECK 'KITING' DENIED (By Associated Press.) DETROIT. Aug. 30.-Denials of charges of "iniquitous acts" in the closed First National and the Detroit Trust company made in recent testimony by U. Sen. James Couzens and Rev. Fr Charles today from before the Detroit bank auditor for the First National, questioned to charges the militant priest testified last after read the statement Father that accounts the bank had been deliberately padded before state banking holiday February Thomas G. for the First National Detroit Trust denied charges made by Senator also the stand last check "kiting" and reciprocal deposits between the which tended show greater than assets. 62 Millions Available. McGonagle that Februday the First there was least in event run. The deposit liability the time more than The ness declared that there had been no figures. Questioned the the bank did show the amount pledged nearly from parts the country show that pledged assets not appear among charged the trust made posits with the First the being show each had more actually had. Long said "no purpose at in the declared the deposits when trust company decided to segregate its trust counts in banks. placing 000.000 in the First National. He (Continued Page Column

10. August 30, 1933 The Muskegon Chronicle Muskegon, MI
Article from The Muskegon Chronicle, August 30, 1933

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INIQUITOUS ACTS IN BANKS DENIED Two Detroit Bankers on Stand in Grand Jury Probe Detroit Denials charges "iniquitous the and the Detroit Trust Co., made in recent testimony Couzens the Rev Fr. Charles Coughlin today from two er-witnesses before the one-man Detroit bank auditor for the es the priest who said 'someone has been after being read the statement Father Coughlin that counts the bank had been deliberately padded before the state banking holiday Feb. 14. Thomas Long. counsel for the and the denied made Couzens, the stand last check "kiting" and posits between the two which tended to show greater than actual Mc Gonagle said that Feb. 11. last day the First National open. was at least 000 available cash in case run. The bank's deposit liability the time The witness declared that there had been no concealment figures, as to the ment of the bank did not show the pledged acts, nearly from various parts the show that pledged assets did not appear among McGonagle also testified that the liquidity Jan. percent. and said the same on Feb approximately the last day the bank was His testimony was made in answer another charge of Father Coughdeclared the bank's liquidity 14 that Wilson W chairman the bank board. falsified when he testified the liquidity was approximately 25 witness also testified that the The bank had least cash government and bonds Feb. meet deMills had placed the figure which Father Coughlin as. serted was falsification.

11. August 30, 1933 Lansing State Journal Lansing, MI
Article from Lansing State Journal, August 30, 1933

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OFFICERS CHARGES BY COUGHLIN Accusations by Sen. James Couzens Also Branded As False ATTORNEY IS WITNESS DETROIT, Aug. 30 of charges "iniquitous closed First National and the Detroit Trust company, made recent testimony by United States James Couzens and the Rev. Charles Coughlin, came Wednesday two one-man Detroit bank jury. McGonagle, auditor for the First questioned charges by the militant priest testified week, being the Father that accounts the bank had deliberately padded before the state banking for the First Detroit Trust company, denied charges made by Senator the stand last week, of check "kiting" reciprocal deposits between the institutions which tended show greater than actual assets. that February 1933, the last day the First National was open, there was least $62,000,000 available cash The bank's deposit liability the time more than The witness declared that there been no concealment figures, questioned the statement the bank did not show amount of pledged acts, presented nearly from various parts the country show that pledged assets did not appear among Long declared practically stock purchased in saying most exchanged stock basis each bank's assets earnings. Prosecutor Harry Toy previously announced Detroit Bankers company, the Detroit Trust another ing company, will during Besides Long, they James former director Emory Clark, former director the First National the trustees of the Detroit Trust company; Fred Alger, former director strumental in forming tentative replan after the closed: Ralph Stone, Detroit Trust auditor First Wilson chairman the board the First the Long, Mills, Murand previously appeared before jury.

12. August 30, 1933 The Ludington Daily News Ludington, MI
Article from The Ludington Daily News, August 30, 1933

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Also Repudiates Statement That Holding Company Paid Outrageous Prices Stocks It Absorbed and Passed on to Widows and Low-Salaried Employes Aug. nials of charges of in the closed First Nationand the Detroit Trust made in recent testimony by Senator James Couzens and Rev. Charles Coughlin, today from two bankerwitnesses before the Detroit bank jury. McGonagle auditor for the First National. questioned as to charges by the militant priest who testified last week, said "someone has been misinformed" after being read the statement of Father Coughlin been padded before the state banking holiday Feb. 14. Denies Check 'Kiting' Thomas Long. counsel for the First National and the Detroit Trust Co., denied charges made by Senator Couzens, also the stand last week. of check "kiting" and reciprocal deposits between the two institutions which tended to show greater than actual McGonagle said that Feb. 11. 1933. the last day the First National open. there was at least available cash case run. The bank's deposit liability at the time was more than The witness declared that there had been no of questioned as to why the of the bank not show the amount pledged acts. presented nearly bank statements from various parts the country to show that pledged assets did not pear among Senator Couzens in his testimony had the Column