9042. Fidelity Trust Company (Detroit, MI)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
October 8, 1931
Location
Detroit, Michigan (42.331, -83.046)

Metadata

Model
gpt-5-mini
Short Digest
34619ad0

Response Measures

None

Description

The bank was taken over by the Michigan State Banking Department and closed on Oct 8, 1931; later receivers were appointed (mid-October 1931). Articles mention no depositor run prior to suspension — action appears to be government takeover leading to permanent closure/receivership.

Events (3)
1. October 8, 1931 Suspension
Cause
Government Action
Cause Details
Taken over by the State Banking Department; bank closed and did not open following takeover.
Newspaper Excerpt
DETROIT, Mich., Oct. 8.-The Fidelity Bank & Trust Co. closed yesterday, an announcement said it had been taken over by the State Banking Department to conserve assets for the depositors.
Source
newspapers
2. October 17, 1931 Other
Newspaper Excerpt
ASKS RECEIVER FOR BANK. DETROIT, Application filed in court today by Reichert receiver for Fidelity Bank & Trust company. The bank ... closed fortnight September 29 amounted to $6,507,000.
Source
newspapers
3. October 18, 1931 Receivership
Newspaper Excerpt
Appointment by Judge Hunt Ends Deadlock ... Circuit Judge Ormond Hunt Saturday appointed Walter Drake ... temporary receiver for the Fidelity Bank & Trust Co.
Source
newspapers

Newspaper Articles (16)
1. May 13, 1931 The Flint Journal Flint, MI
Article from The Flint Journal, May 13, 1931

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Article Text

BANK RECEIVERS GAIN INJUNCTION Block Sale by Fidelity Co. of Detroit of $268,900 in Collateral Bonds. and owned May replacing their high son Circuit grade securities with bonds of far Tuesday granted less stable and The defendby high of junction ants also selling the and Workbonds in by bonds profits from of to of for of The as $111.500 to the Jackson bank. The Fidelity also enjoined from attempting to collect the loan. Scott E. former president and trust officer of the Detroit bank jointly named as In their the receivers say that in 1925 as to the Farmers at salary of month. After that the is made, Lamb and the Fidelity bank traded in various bonds

2. May 13, 1931 Marshall Evening Chronicle Marshall, MI
Article from Marshall Evening Chronicle, May 13, 1931

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Jackson Bank: Receivers Enjoined JACKSON, Mich May 13 -A temporary injo netion barring the Fidelity Bank & Trust company or Detroit fre " selling $286.900 worth of bonds, held as collateral for loan 01, $111.000 w the circuit bank here, was Lined yesterday in court The injunet U asked by the strains the " etroit bank from seeking to col' ct on the loan Receivers the Farmers & Workingmen's bank also Illed bill for an AJ counting naming the Lambs, its Tormer vice president acting as Investment adviser was resp Insible for exchanging the Jackson bank's high-grade securi(ies for "leas stable" securities that The dealings OI the defunct bank were faulty.

3. October 8, 1931 The Palm Beach Post West Palm Beach, FL
Article from The Palm Beach Post, October 8, 1931

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Six Northern Panks In Hands of State Oct Medford commercial in this closed At the request of who acted on the bank bethe bank the bank The bank reported total 30 of $7,000,000 and deposits of $5,350. Philadelphia banks by state banking department Wednesday and the directors of fourth announced after meeting open Thursday The latter institution the Gir Avenue Title Trust Com pany In statement 30 reported and deposits of $2,909,619 It individual funds $937 The which were smaller Detroit Oct Fidelity Bank Trust closed Wednesday An accompany ing announcement the bank has been taken by the state banking department sets for the Alfred Wilson widow of the late John of the founders of the Dodge Motor chairman the bank's board She announced she would that depositors are in full. Deposits on September 29 amounted $6,507,000

4. October 8, 1931 St. Louis Post-Dispatch St. Louis, MO
Article from St. Louis Post-Dispatch, October 8, 1931

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DETROIT BANK CLOSES; DEPOSITS $6,507,000 Woman Chairman Guarantees Payment of Savings and Trust Accounts. By the Associated Press. DETROIT, Mich.. Oct. 8.-The Fidelity Bank & Trust Co. closed yesterday, an announcement said it had been taken over by the State Banking Department to conserve assets for the depositors. Mrs. Alfred G. Wilson, widow of the late John Dodge, one of the founders of the Dodge Motor Mo., is chairman of the bank's board of directors. She announced that she would see that savings depositors and trust deposits are paid in full. Deposits on Sept. 29 amounted to $6,507,000. Fourth Bank Suspension in Two Days in Philadelphia. Baby Foods By the Associated Press. PHILADELPHIA, Oct. 8.-Three 25c Eagle Brand Milk 17c 25c Mennen's Borated Talc::: Philadelphia banks were taken 1.00 Horlick's Malted Milk: 68c 25c Zinc Stearate:: over by the State Banking Depart5.00 Horlick's Malted Milk, 1.50 Castile Soap ment yesterday and the directors 5 lb. 2.79 of a fourth announced that it 25c Imported Castile Soap:::: 65c Dryco 41c would not open today. 35c Olive Oil, 4 OZ. The latter bank is the Girard 2.50 Dryco 1.69 OTHERS will Avenue Title & Trust Co. In a 25c Hygienic Baby Talc: M 1.00 Walgreen Malted Milk, 59c statement June 30 it reported re- appreciate the 5.00 Walgreen Malted Milk, sources of $4,300,127 and deposits extensiveness of this 5 lbs 2.49 of $2,909,619. It also had individual special Sale on Baby trust funds of $937,402. Michael 1.00 Borden's Malted Milk 52c Needs Friday and J. Ryan, former City Solicitor, is 5.00 Borden's Malted Milk, 25c Pyrex Bottles: president. Saturday. Check over 5 lbs. 2.49 Tufto Bottle Brush The other three banks that this list carefully, for 1.25 S. M. A. Powder 81c closed were the Haddington Title it will mean a consid- 1.25 Lactogen: Anti-Colic Nipples: 84c & Trust Co., the Hamilton Trust erable saving to you. 50c Robinson's Barley, lb. 37c 25c Infant Syringe, 1 OZ. Co. and the Wharton Title & Trust Co. The Hamilton Trust listed deposits of $1,882,046, Haddington Trust deposits of $1,326,581, Wharton $275,000. State Secretary of Banking Gordon announced 10 leading Philadelphia bankers had agreed to serve on an Advisory Committee in liquidating closed banks. $60,901,000 of $225,975,000 Deposits Paid by Closed Banks. By the Associated Press. NEW YORK, Oct. 8.-The 11 banks which closed in Greater New York in the last year, have repaid $60,901,000 of deposits totaling $225,975,000, a survey disclosed. The Chelsea Bank and Trust Co. and the World Exchange Bank have paid depositors in full with $19,901,000. Depositors in the Bank of United States have received a 30 per cent dividend, and depositors of seven banks are expected to obtain a 50 per cent return soon.

5. October 8, 1931 The Buffalo News Buffalo, NY
Article from The Buffalo News, October 8, 1931

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FIRMER STOCK EXCHANGE Transactions on the New York Stock Exchange Majority of Issues Rise Fractionally But Trading Volume Is Lighter. NEW YORK Oct. stock pushed confidently in early transactions in sponse to the widespread approval of formation credit corbanks also by the character yesterday's under turned gains of to points appearing Steel Telephone General Motors General Electric New York Southern North sagged for few minbut Trading The approval the speed with being operation the was larly improvement was observed immedibe in the vestment months had commentators garded by thought taking without damage. was out that the ket had and give of the Banks of England and France showed gains and increases in holdings The British Central bank made its discount rate Other Bourse Sterling cables opened at 3.84 off FIDELITY BANK & TRUST. DETROIT, CLOSES DOORS Bank Trust company was closed Wednes day accompanying stating the taken over the State to for Mrs G. Wilson. late a Dodge board She that she see that and are paid in Deposits Sept. 29 to 000 PHILADELPHIA CLOSING the Avenue last the affairs bank the Banking this morning. The doors did not open bank had resources of and deposits of last 30. Former City is president the founded in 1905 under charter N Oct The National Bank of Newark closed Wednesday run two and half hours. Officials acted to protect depositors RETIRE PREFERRED NEW has made an offer its stock now BUILDING PERMITS

6. October 8, 1931 The Buffalo News Buffalo, NY
Article from The Buffalo News, October 8, 1931

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Farm and Garden Produce Markets extra By DR. MAX WINKLER Copyright NEW Oct phere in the realm of and finance to assumed more encouraging aspect. While it is true that many of the difficulties confronting the United States might have avoided, had the which President Hoover has proposed been adopted year nevertheless considerable encouragement is derived from the fact that are taken in still not alone United but the rest of As has out on numerdifficulty with which the United States and to certain extent still confronted the continuance of bank failures and the resultant fear that conditions would grow before drastic steps would be taken to President Hoo above all, the formation of national with resources of chief function will be the ing banking which are not eligible at present for rediscount at the Federal Reserve In this way the financial institutions the be assured may liquidity in case and will enabled to contheir the striction of their credits or the sacrifice of their assets Considerable aid is also expected from the proposed Congress to permit the broadening of the Federal Reserve act pertaining to the eligibility should in greater liquidity for bank assets and greater to the bankers in the of credits, making for to obtain legitimate on sound securities in times of stress. Once the United States has taken to put own house order the solution the of the of America an integral part with the of at least fair of The President's message contains a the forthcoming visit to the United States of Premier Laval of France, with whom Washington him to take up the question relative to further changes in the status of as may seem pression. An the one in June is confidently anticipated Considerable benefits are to derived by the Gas. Electric Light and Power company of Baltimore as result of contract from the Pennsylvania railroad to supply all the use from the river to Havre de Grace, contract of the most substantial of the kind ever made at one and will run for 20 years It should be reflected the of the shares of Consolidated which are selling currently At about 60 per cent the high the current year reon the substantially in excess of per FIDELITY BANK & TRUST, DETROIT, CLOSES DOORS DETROIT Oct. Bank & Trust company was closed Wednesan stating the bank had taken over by the State Banking department to Mrs Alfred the late founder of Dodge Motor chairman of the She that she that savings depositors and trust are in full. Deposita on Sept. 29 amounted to $6 507 000 PHILADELPHIA CLOSING Oct of of the Girard Avenue Trust company last night decided the affairs of the to the State Department of Banking this morning. The doors did The bank had resources of $4 300 127 and deposits of $2,909,619 according last statement June 30. Former City Solicitor Michael was founded in 1905 under a charter BANK NEWARK Oct The First National Bank of Newark closed Wednesday and half hours. Officials acted to protect depositors.

7. October 8, 1931 The Roanoke Times Roanoke, VA
Article from The Roanoke Times, October 8, 1931

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BANKS IN THREE STATES ARE CLOSED Philadelphia, Oct. Philadelphia taken banking today the directors that would open latter is the Girard Avenue Title Trust statement reported and deposits individual trust funds of Detroit, Oct. Fidelity Trust closed today. stated the bank been taken over the state department for the the the Motor chairthe bank's board would see are full. Deposits to $6,507,- New banks New the last year have deposits totaling survey Medford, Mass., Oct. Med. Trust cial banking in this city, closed today. the request directors who acted after the bank began yesterday, state possession the bank. deposits of $5,350,000.

8. October 17, 1931 The Saginaw News Saginaw, MI
Article from The Saginaw News, October 17, 1931

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Article Text

ASKS RECEIVER FOR BANK. DETROIT, Application filed in court today by Reichert receiver for Fidelity Bank & Trust company. The bank, of which Mrs. Alfred Wilson chairman of the board, closed fortnight September 29 amounted to $6,507,000.

9. October 18, 1931 Detroit Free Press Detroit, MI
Article from Detroit Free Press, October 18, 1931

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DRAKE FIDELITY BANK RECEIVER Appointment by Judge Hunt Ends Deadlock Acting petition brought by Rudolph E. Reichert, state bankCircuit Judge Ormond Hunt Saturday appointWalter Drake, formerly assistant Secretary of Commerce in President Wilson's wartime cabinet. temporary receiver for the Fidelity Bank Trust Co. The ended deadwhen W. general, might not be appoint and Edward for the receivership. Mr. Lamb, already for the Trust was said Mercer be approved holders of 6,000 shares capital president of the immediately the Harry He said they with the bankapproved by Mrs. Alfred Wilson, 18,000 the shares Although Mr showed he and had bank, Voorheis explained the Michigan had and Mrs. Wilson's interests Hal Beaumont, Smith attorneys, by Mr. who Bond was set $100,000.

10. January 30, 1932 Detroit Free Press Detroit, MI
Article from Detroit Free Press, January 30, 1932

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FIDELITY STOCK LEVY PLANNED Bank Receivers Move to Impose $1,000,000 Assessment Receivers of the Fidelity Bank & Trust Co. were permitted Friday by Circuit Judge Ormond F. Hunt start suit against the stockholders of the company to recover an assessment of 100 per cent on the capital stock. The company is capitalized at $1,000,000, represented by $20 par value shares. The receivers showed they faced deficit of $1,250,000 over and above the claims of the creditors and depositors. The attorneys said that 15 days' notice would be given to the stockholders to enable them to make voluntary payments if they desired. Walter Drake and Harry J. Fox were appointed co-receivers for the company by Judge Hunt. The bank was closed last October.

11. March 2, 1932 The Muskegon Chronicle Muskegon, MI
Article from The Muskegon Chronicle, March 2, 1932

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BANK RECEIVER PROBE ORDERED Governor Takes Notice of Complaints of Drain on Resources Lansing, March investithe of banks companies was ordered toby Governor Brucker petition for an was filed recently by E. Nowack. Lansing Publisher who charged that dual receiverships for the and Fidelity Trust companies of De. troit constituted an unnecessary drain upon resources of investors. investigation into complaints which have been made in the and me that there have grown up abuses which must be corrected immediately Governor Brucker said. have requested the to make inquiry take such as may to prevent their recurrence. should be the duty all public officials to safeguard the interests depositors stock holders by insisting that none competent selected as ers. that the work be expeditiously as possible. and that the fees for such services be small as possible so they will not be drain on the assets of the institution.'

12. March 3, 1932 Detroit Free Press Detroit, MI
Article from Detroit Free Press, March 3, 1932

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BANK RECEIVERS' PROBE ORDERED Gov. Brucker Acts on Charge of Abuses LANSING, March investigation into the receivership of banks and trust ordered today by Gov. Wilber M. Brucker. petition for such an inquiry recently by Nowack, Lansing publisher, who charged that receivership Metropolitan Fidelity Trust companies Detroit, constituted drain upon into which have made the press me that there grown abuses must corrected Gov. Brucker "Accordingly, requested the Attorney Genmake thorough inquiry take such action may necessary prevent their recurshould be considered the duty all public officials to safeguard the depositors and stockholders that none but that the posthat the fees for services be as they will not drain on the of the institution.'

13. March 20, 1932 Detroit Free Press Detroit, MI
Article from Detroit Free Press, March 20, 1932

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CITY OFFICIALS FOR FIDELITY CASH Action Being Planned Against Controller and Treasurer AIMS TO REGAIN FROZEN DEPOSIT $100,000 against Confor and Treasurer contemplated as the deposit of City tax Fidelity Bank Trust the failed ago, assistant said Saturday money deposited by September with the bond would Controller imnever the bank failed along with those other depositors. To Await Adjudication Mr. Dwyer said suits will not be bankruptcy prohad been terminated. Drake receiver the City has priority stated. According to Dwyer. Treasurthe legal custodian but this power has the several years. Mr. WilSaturday that 1922 the sole authority City funds. In that Henry Steffens, then City bids the bank highest interest rate redeposit. Controller's Advice Followed Mr. Williams said the treasurer's has, since 1922. the all matters said he funds with the Fidelity Trust orders from He said that either for deposits been left with controller and that his judgbe the Council Counsel Wilcox deposit like have it undermy office has nothing depositing funds,' Mr. informed council. "The that the City this bank came when the about the bank closed its The approval bond the functions my ever submitted for Banker Gave Assurance Roosevelt said that had been posted his bank the was the president of assurance that immediately be That the bond was was not ascertained was closed, Mr. RooseRoosevelt is bonded in the and Mr. Williams event the its prior event that the not sufficient the the corpora proceed against the Mr. Dwyer said. Former Official of Bank days before the AmerBank failed bank of Mr. Roosemonths before president the institution become concheck for the withthis upon hours before the taken by the PeoCounty institution honored the trial Robert M. president of the American alleged that the City's demand the run upon the its deposit the American was not bonded.

14. March 24, 1932 Detroit Free Press Detroit, MI
Article from Detroit Free Press, March 24, 1932

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SURETY BOND QUIZ ORDERED Firm's Failure Brings Action by City Drastic changes in regulations governing posting surety bonds upon City officials and contracts, will ployees, and upon investigation of all follow the bonds now standing. the Common Council indicated, Wednesday. instructed City Controller G. Hall Roosevelt Assistant Corporation Counsel Paul submit upon all bonds not than for complete The check of all bonds made by Councilman John S. Hall, result of the failure New York Southern Surety Co. This the holds the bonds upon several firm millions in City contracts. seized, Tuesday, by the New York State Insurance Department. Under present provisions of the City all officials having charge of dealings are bond. Mr. Roosequired post told the Council, Wednesday, that had endeavored some months provide insurance public officials, addition to the bond. but that no insurance comwould take the risk. Lloyds pany Inc., large British insurance company. was approached, but declined risk. Mr. Dwyer was questioned by Dr. Hall and Councilman John W. Smith the City's deposit $100,000 the Fidelity Bank Trust Co., which money is now held result the appointment for that concern. The City is awaiting the final counting this receivership before taking action to recover the money lost, Mr. Dwyer said.

15. April 4, 1932 The Muskegon Chronicle Muskegon, MI
Article from The Muskegon Chronicle, April 4, 1932

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MAY COURT OPINION Savings Depositors Have Prior Claims, State Supreme Justices Rule DECISION WAS AWAITED Commercial Depositors and Other Creditors Entitled to Equal Payment Lansing, April The supreme court held today that savings depositors in closed state banks have preferred claims against the as. sets of the savings department. The court decided that in effect the assets of the savings department must be set aside to first satisfy claims of savings depositors. After they have their distribution savings reference ends and thereafter commercial depositors and other creditors are entitled payment the other the bank permit such distribution. Court Is Divided. The opinion the court three Four justices signed the ways. opinion Justice Walter prepared North Although that number constitute Chief Justice George Clark said the North opinion would be construed controling Separate opinions written liam Potter. may millions dollars in closed banks which not been because receivers were waiting for the court decision. The ruling made the case Reichert against the Workingmen's Savings The settled in controling were: Stockholders state banks may offset bank against assessments their stock. that stockbe assessed amount equal twice the value their stock mandatory and not affected by deposits other considerations. Deposits in either commercial savings accounts offset obligations depositors in either department the A receiver may dividends than the affairs the bank volved the savings are distinguishable retains sufficient to protect savings depositors. Entitled To Share. If there insufficient proceeds savings vestments pay depositors full such entitled in providing sufficient ratable with payments to basis as compared savings depositors Investments savings departments solely state banks held the benefit of depositors to assets represented savings and investments from capital not cover Assets carried by the bank bined or ratably all case the illustrated its ruling relative offsets by holding that the Paw Paw offset in closed Fidelity Bank Trust company, Detroit, against 734 loan. loan been the commercial trust departments and the savings court held the offset should

16. June 18, 1932 Detroit Free Press Detroit, MI
Article from Detroit Free Press, June 18, 1932

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MRS. WILSON'S Court Upholds Plea of Bank Receivers Receivers for the Fidelity Bank Trust Co. Friday filed supplemental report in Circuit Court terially reducing the allowances on claims against the company Mrs Matilda Dodge Wilson, who was chairman of the board and largest stockholder and depositor The request of the receivers, Walter Drake and Harry that the bank's of Horace Dodge, automobile from $632,294 granted by Circuit Judge Ormond Hunt. Bank Deposits Heavy Mrs. Wilson the time of the bank's closing deposit In addition she the holder shares of stock val$174,000. She liable 100 cent assessment under and the declare she the 10,000 shares contracted for, but money ever paid. Mrs. Wilson denies that she liable for this stock. The stated that no satisfactory agreement been reached the status of $351 000 in bonds placed the bank's disposal by safeguard State Highway Department deposit like amount. When the bank closed the turned over and Mrs. Wilson has as yet not been reimbursed receivers stated Friday that the present value the bonds but and they are ready claim that amount if presented by Mrs. Wilson. Dispute Halts Settlement No effort has been made Mrs. Wilson, they told court. pay her stock liability This was blamed the dispute over the contested 10,000 shares. Small have been in meeting their responsibility, the receivers reported. Mrs. Wilson's first claim against the closed filed May 10 and was for $632,294 The shrinkthe receivers explained. the discovery her additional liability as an officer and stockholder.