The New York herald., 1921-02-18
FREMONT TRUST co.
IN BOSTON CLOSED
Banking Laws Violated and
Unsound Loans Made, Says
Commissioner.

BosToN, Feb. 1.-THE fremont Trust
Company, g banking institution with
savings and COMMERCIAL departments,
was closed late to-day by Joseph G.
Allen, Bank Commissioner. Commis-
sioner Allen in formally announcing his
action said:
The fremont Trust Company is
closed q "a result OF unsound and un-
authorized banking methods.
/. my action has become necessary for
two reasons: First, on account Of viola
ton of the banking laws OF the Com
monwealth; second. because the total
of bad and doubtful loans is such that
the capital Is seriously impaired. 1t is
for the protection OF depositors, stock
holders and all concerned that have
taken possession in accordance with the
ducy imposed upon me by law"
Tie fremont was established in 1914
and II has had the reputation of rapid
ly growing business. Late I 2eptember
in common with some othe i.4ttutions
1t experienced heavy Withdrawals as a
result of the alarm among depositors
after the revelation in the get rich quick
plan which subsequently landed Charles
Ponzi in Jail At that time the fremont
and other banks took advantage of the
law permitting them to require ninety
J days noticevof Withdrawals from saw
ings departments.
The president Of the fremont is Asa
j. French, who was former United
States Attorney for this district. Simon
Swig is vice-president, Charles w. Levi
secretary and vice-president and Ben
jamin III. Swig treasurer. The bank Is
not a member OF the Federal Reserve.
1t has both commercial and savings de-
partments. The capital stock Is ST.
220,5 500.
statement fined with the Bank Com
missioner on September s showed S5,-
163 165 in deposits subject to check in
the commercial banking department
The assets included demand loans with
collateral of s365.S5s. other demand
loans of s1,o56.21i. time loans with col
lateral of S392.692. and other time loans
aggregating s4.531. .S9S.
In the savings department the deposits
amounted to $11.745,711. The assets
in this department included loans on
real estate OF $3,96s.534 and loans on
persona. securities amounting TO &c.
942,415.
There had been no intimation appar-
emily of the Commissioners intention to
close the bank to-day. Gov. Cox sub
sequently commented reassuringly so far
as the banking situation of the city was
concerned.
II am sorry to hear that the fremont
Trust has not been able to overcome its
difficulties" he said. but 1 am conf
dent that the Bank Commissioner has
acted In the best interests OF the Com
monHealth and its people. ! do not
think there is any occasion for the pub
lie to become alarmed over the condition
OF other banks"
There were state deposits OF more
than a million dollars in the fremont
last May. James NJ. Jackson, State
Treasurer. said that the State funds
had been withdrawn. the nnal balance
having been removed on November 20.
Thomas W. Murray, city treasurer,
stated that the city had no funds in
the fremont.
The fremont attracted a great many
depositors. It is said, through its news
paper advertising and its practice of
paying interest monthly In It's savings
department. Vice-President Swfg has
actively advocated legislation to compel
banks In the state to pay interest
monthly on savings accounts.