Daily Kennebec journal., 1919-12-19
HUB BANK CLOSES
Embarrasses
Many Depositors
Old South Trust Company Declared
Ahsoiutely Solvent ard viii Even
tualIy Pay 100 Cents on Dollar
Troueie Caused ny Inability TO
Continue CIearances

Boston Dec. ls.-The doors pf ne Old
South Trust 60. a 1ankIng ana savings
institution with apou- 81 osaee Il de-
posts. were closed TO-DAY. causing II
convenience . q small army 9t persons
VINO rad scri-npec for : year TO have
thear savings together at Christmas
tine state Bank Commissioner AL
gustns Z Thorraike sand -aat -he CON-
pany would ne able eventually 70 nav
dsposItors Z full with : substantial
amount LETT for stockholders. He aided
that everything possible would oe cone
20 make -he Christmas money ara-atla
70 It's owners. II was estimated mai
here were apout ssa members u ne
Christmas Savings CluE. many u them
steucg-ap pliers and other employees II
DOWNTOWN arEce buildings with agg-e-
gate -avirG u approximately s4eo.oao
Some U -hsse already mad received
their money. the checks having been
sent ogr . day or TWO agp. bnr most Of
he club members Were said 20 have
leld 1hei- checks tur Use I last-faInute
g-Tt purchases.
The bank was closed by Cornrrts-
sioner Thorndike al tie request Of
is president JOHN r dcTey. IN Z
statement Nir. AeS-ey said
The Old South Trust Company
was closed TODAY ny the bank exam
4ler Al nv request.
The rank * absolutely solvent.
and last night Commissioner Thorn
alke. after 4 conference WIZ. other
bankers. refused 70 declare the bank
unsafe. The fact that lie South
Trust was forced 20 discontinue its
clearing although Il kept within ths
egal standing reserve. caused its
eaecks 10 be paid over The counter
ssaaen thls fact was pru1tad abroad
r1in began. starting yesterday and
Increasing rapidly today.
Being unable 70 turn loans INTO
cash quickly enough 20 meet The
Withdrawals. we deemed il prudent
70 ask the rank commissioner 70 step
II and conserve the assets. ! an ab-
solC1eiy sure that al deposItors viii
receive 100 cents IN the dollar
President AcVey said that negocia-
-ic-s were slaoe- way with local bank
ers y have hem take over me trust
cc-rrZ1y and make pc ssipie a resunp-
tlon of business IN Z few days. Depu-
= Benk Cornissicner Charles W Levi
Salo tonight that these negotiations
III r. develop wl-n,n q day Or TWO. 1at
ne had no Information Is 70 details u
he g-o~nsed arrangement
The banks trouble. according 10 z
statement uy- ne 1a1k con-lssioaer
were due 70 rs inability 70 continue
rs arrangements <or cIearances. Tfles.
had 1een made, not through he Boston
Clearing House Association. ,sut th-ougr
the Webster & Atlas National Bank
officers OF w4llca said roaay .har the
nank had declined 10 rlear he checks
Al - ths OLD Sou-hs balance feil below
q figure previously stipulated With
d-Rwals Of money fu- me holiday sea-
son and iEap-4it-' q he company 4
realize ionediate!y- On loans described
ny me coTnrisslo-e- IS gocd'' bv.
rather slow. were said 10 oe the -ea-
sons for It's inability 70 maintain he
required balance with me Webster &
Atlas bank
Commenting On report thar loans
made by the company OF certificates
OF whiskey ownership had tied III
its funds. the commissioner said that
the bank rad oriy Z ''coru paraliyeiy Y
snail amount" Of such loans. as was
the case with virtually all the BANK
3nE institutions OF the city.
There were few Of the scenes Or
dinar1ly accompanying a hank run
Word OF the banks difficulties appa
Continued or Page -coi 81