The Sun and the New York herald., 1920-09-29
ANOTHER TRUST co.
CLOSED IN BOSTON
The Fidelity Suspended by
Banking Commissioner Az
ter Heavy Withdrawals.

Special 10 THH Sun ANN Nnw YoRk HmlLp
BohroH, Sept 2a,--,rhe Fidelity Trust
Company waH closed by the State Bank
ing Commissioner to-day which aetlor
brought quick announcement from th'
Boston Clearing House Committee thai
steps would be taken 10 prevent flirihhi
trouble among noston hanks by guar
anteelng TO come 10 the assistance OF al
solvent institutions.
While the head OF tho committee
President neal OF tho Second National
Rank, was quoted as declaring there
was no crisis, q director NJ the Fidelity
Trust Company told OF Intellectual Of
forts last nght TO prevent tho closing Of
the bank and referred 10 the "panlclty
conditions prevailing In the banking
crisis" fiH
Notice was posted OF the closing Of
the Fidelity this morning at tho open
ing hour for business, Tho cause given
was "heavy Withdrawals OF depoaltR and
slow ana doubtful loans" Tho Fidelity
was ono OF the three trust companies
that yesterday invoked the ninety daS
low on withdrawal OF savings deposits
20 stay runs, President Mcknight oi
tho Massachusetts fenato II vice-preHl
dent OF the institution.
Mr.. Mcknight ana tho other Officers
OF tho company we're summoned TO The
State pank Commissioners office laai
night They asserted that the institution
was solvent and offered 10 pledge tholi
entire personal resources 10 protect the
institution II II could DO allowed 10 re'
main Opon, State Bank Commissioned
Allen, however could SEQ no other way
than 10 close the company
sicISniEht Narrows ITS Activities
Right on tho heels Of tho closing Of
the Fidelity came the report that Mr.
Mcknight had severed Rli connection
with tho Dorchester Trust Company,
Chnrlestown Trust Company. Stoughton
Trust Company and the Atlas Trust
Company OF Springfield, lie stlll retains
his connection with the Fidelity and the
Nedford companies II In Fald,
The city, OF Boston had no money In
tho Fidelity when II was closed, nl-
though It's deposit there last December
totalled 100000, Tho state, however.
was not NO fortunate. as II has 500. 900
In the Fidelity on top Of the hundreds
Of thousanda tied up IN the closed Han
over Trust, Prudential and Cosmopoll-
tan. II should be said IN behalf Of state
Treasurer Jackson. however thar none
Of this money was placed with the trust
companies during his term OF Office,
which term dates from this month only
but on tho contrary has been gradually
reducing the amounts OF the States de-
posIta Tho money was largely placed
there by his predecessor, Mr., Burroll
who resigned as the result of'tho storm
OF criticism aroused by his conducting
nn advertising business largely with
banks while holding the office pf State
Treasurer
other Hanks Guarded.
An a result OF the unrest In banking
circles special guards have been placed
about the banking institutions until the
unrest disappears.
A crank was arrested at the State
House to-day. After invading tho bank
commissioners office and failing 10 sec
the commissioner. he declared: "It's no
use for him TO try 10 hide from ME. III
get him II he does. I'll shoot him."
Special guards were then placed about
the ONCE 20 prevent repetition OF the
scone. Mr., Allen will also be guarded
on tho street
Gov. Coolidge issued n rcassurlnp
statement to-day. saying; 'Irrom all !
can hear the banking situation Is quiet.
Ing down. l understand the demands
for deposits have practically stonped
The bank commissioner assures me
everything he hears is reassuring.
THE second thought OF tho people Il
In favor OF coming 10 the rescue OF the
situation. Tho disouleting rumors have
ceased and the ordinary confidence hda
returned. All that is needed for an ade.
Quate remedy 10 n continuation OF pub
Ito confidence. This seems to exist to-
day."