The Barre daily times. (Barre, Vt.) 1897-1959, 1920-09-27
FREMONT TRUST CO.,
DORCHESTER TRUST
FIDELITY TRUST co.
Bank Commissioner Allen
Advised Resort to the
Law Which Requires 90
Day Notice Before With
drawal of Funds-All of
Them Are Believed to Be
Able to Meet Calls.

Boston, Sept 27.--Public unrest over
banking conditions to-day caused a
run on some institutions with the re-
suit that the fremont Trust company,
the Fidelity Trust company and the
Dorchester Trust company invoked the
law which makes it possible to require
ninety days notice of Withdrawals
from the savings departments, in or
der to stop the rush OF frightened de-
positors.
The run on the fremont Trust com
pany was participated in by hundreds
and the proportions of the crowd be-
came so great that police, mounted
and afoot, were called upon to keep
the crowd in orderI The bank sought
for an hour to meet the claims against
1t. and officials announced there was
money on hand to pay all. but the
crush became so great that Vice
President Simon Swig announced that
the ninety-day notice would be re-
quired.
At the Fidelity Trust company,
which also has offices in the down
town district, the run was in smaller
volume, but the law was called upon,
it was stated. "to allow the public TO-
recover from the prevailing unrest"
There has been a run on the Dorches
ter Trust company for several days;
and the invocation of the law there
stopped the payments.
Officials of the institutions in several
instances announced by statement or
advertisement that there was no CON
nection between the Cosmopolitan,
which was the fifth bank to be closed
here within two months, and their in
stitutions, and Bank Commissioner
Joseph c. Allen declared that no other
banking institution was involved in
the Cosmopolitan troubles. Neverthe
less, recurrence of the runs was an
ticipsted in some degree, depositors
having become alarmed and, in the
case OF the fremont Trust company,
hsrng made constant Withdrawals
from morning Saturday almost to mid
night, the management having ex-
tended the closing hour from noon TO
accommodate them.
The feeling of uncertainty over the
banking situation was the subject OF
discussion by Governor Coolidge and
bankers yesterday, but without an
nouncement of any contemplated ac-
ton.
One effect of the close scrutiny of the |
affairs of local banks, which Commis-
sioner Allen has been making, was an
order from him 10 the management of |
the Old South Trust company 10 drop |
from its payroll former Governor Sam |
uel W. Mccall and four other officials,
including two vice presidents. As
chairman of the board Of directors Of
the company. Mccall, who was ap- |
pointed recently, is drawing salary |
Of $4,000 a year. and the other men |
involved are said 10 be receiving sew
earal thousand dollars each.
= The object of the order is 10 reduce |
the banks expenses. and il is the |
opinion of the bank commissioner that |
the men whom he asked to have
dropped are holding merely nominal
positions for which the salaries might |
well be saved. In each instance, they |
nav continue 10 serve in their present |
capacities without salary. according to
the order from the hank commissioner 4
TO the Old South management,
The Old South Trust company wss |
closed a year ago and re-opened re
Gently after having rehablitated its
finances without loss to the depOsitors
Several hundred persons had gath
cred outside the offices Of the fremont /
Trust company when the doors were
opened al s:45. fifteen minutes before !
the usual hour and lines quickly formed
before the several paying tellers' win
dows After Withdrawals had been
going on steadily for nearly an four.
with the crowds constantly Increasing
the bank officials announced that the
law permitting a bank 70 require 90
dsvsf notice for Withdrawals from the
savings department would BE- invoked
forthwith for the projection Of the
deposi1ors TIE regulation would b.
withdrawn as soon a. the public
aimed Itself Il was announced
We have plenty n money "a paw
rverybody. officials said and were
prepared - do ~ this morn NJ. bat Z
ihe crowd became - large that it vas
impossible 10 handle their and We in
81 I'd the law for the proier- icn n the
ispoxsors. not for our opu profec-
sson
he Fidelity Trusf company alec
terred nufire on denrzItors that it
Houid take z1Esu1aEe of fhe 30 davs
hw h was stated az ths bank thst
this wss done upon the direction 81 fhr
bank e-1misssonar AZ TIE utat of