Brotherhood of Railway Clerks National Bank (Cincinnati, OH)

Episode Information

Episode UID
1244601566
Episode Type
Run β†’ Suspension β†’ Reopening
Bank Type
national
Bank ID
124460 national
Charter Number
12446
Start Date
June 26, 1930
Location
Cincinnati, Ohio (39.103, -84.515)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
026e100c2a8bb1fa

Response Measures

Capital injected, Full suspension, Books examined

Clearinghouse involved: Yes (loan, examination, or other measures)

Receivership Details

Date receivership started
1930-06-26
Date receivership terminated
1930-07-02
OCC cause of failure
Other

Events (8)

1. September 29, 1923 Chartered
Source
historical_nic
2. June 26, 1930 Receivership
Source
historical_nic
3. June 26, 1930 Receivership
Newspaper Excerpt
J. W. Pole, comptroller of the currency, appointed Ira Fulton...as receiver for the Brotherhood Railway Clerks Bank which closed its doors in Cincinnati. Fulton will take immediate charge.
Source
newspapers
4. June 26, 1930 Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy withdrawals triggered by revelations/rumors tied to A.W. Shafer's alleged check-kiting and forged collateral accounts
Measures
Directors voted to shut down the bank and place assets in hands of the comptroller for liquidation; bank failed to open.
Newspaper Excerpt
closed its doors after $1,000,000 in deposits had been withdrawn following the resignation of two bank officials three days
Source
newspapers
5. June 26, 1930 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors closed the bank after an unusually heavy withdrawal precipitated by the Shafer check-kiting investigation
Newspaper Excerpt
failed to open for business today... notice posted on the institution's door saying the bank was closed
Source
newspapers
6. July 2, 1930 Restored To Solvency
Source
historical_nic
7. July 5, 1930 Reopening
Newspaper Excerpt
The Brotherhood of Railway Clerks' National Bank...was reopened today as a branch of the Central Trust Co.
Source
newspapers
8. August 22, 1930 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (25)

Article from Cumberland Evening Times, June 26, 1930

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(Continued from page Democratic leader, had eliminated himself from nitely would accept the and which was urged upon understood he could amount time devote the duties were elected. Fuller Barnard, of Cumberland, candidate for the announced the News, he thought, to withdraw from the be persuaded the candidate is settled when upon the normally Republican, and Mr. Lewis was Zihlman by 10,000 feated by Mr. in the Hoover votes years ago landslide. Dennis For Treasurer Baltimore, June times state to friends make fight for his mination election to the post, learned today. No formal announcement position not elecpected, for the but selected the caucus the party legislature when the and elected joint meets, the Senate and House of To Have Opposition For the first real opposition. Part this according from banking reports, who candidates stitutions, own. Among aspirants are Charles possible president of the international league; M. vice president the Company. and Donald Symwas that Another report William Casey, organizer the committee efficiency is being groomed the lately its doors in 1923. Many said the bank. Figures Last Statement issued March bank's capital stock surplus undivided profits Deposits that date $4,740,281. sum $400,000 been made against contingent liability The loans discounts amounted Among the assets bonds and securities estimated worth $1,803,743. Total resources were given The book value of the stock was listed at share. National bank examiners Shafer account the Brotherhood Bank but did not close whether large small district attorney said he lieved the bank should pay out Nelson Schwab, Hamilton county later mating by leged forged had made Shafer by the Bank. said his him to volved in Shafer's peculations. Receiver Named Washington, June 26 Pole, the currency. appointed Ira Fulton, national bank for the Brotherhood Railway Clerks Bank which closed its doors in CinFulton will take immediate charge.


Article from Spokane Chronicle, June 26, 1930

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80 Killed in Bolivian Revolt Women and Children Mowed by PoliceCorpses Paraded. ARICA, Chile, June 26. (AP) The conductor of the international train arriving from La Paz last night said that a grave disturbance had occurred in the Bolivian capital Sunday, and that 80 persons had been killed, of whom 17 were students. Strictest censorship prevails. AREQUIPA. Chile, June 26. (AP)Travelers arriving here from Bolivia today said that police in La bers of meeting of workers and students Sunday. Among the dead were said to have been women and The demonstrators took the corpses and afterwards exhibited them in the streets. The travelers said the city was tense when they left and it was feared further trouble would occur when the victim's bodies were buried. RUN ON BANK CLOSES DOORS CINCINNATI, Ohio, June 26. (P)The Brotherhood of Railway Clerks' National bank, the majority of whose stock is owned by 120,000 members of the Brotherhood of Railway and Steamship Clerks, freight handlers and station employees, was closed today after $1,000,000 in deposits had been withdrawn following the resignation of two bank officials three days


Article from The Kansas City Star, June 26, 1930

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A BIG UNION BANK FAILS SCANDAL STRIKES 5-MILLION DEPOSITORY OF RAILWAY CLERKS. Action Follows Change in Staff and a Heavy Run of Withdrawals on Institution at Cincinnati. (By the Associated Press.) CINCINNATI, June 26.-The Brotherhood of Railway Clerks National Bank, the majority of whose stock is owned by 120,000 members of the Brotherhood of Railway and Steamship Clerks, Freight Handlers and Station Employees, was closed today after million dollars in deposits had been withdraw following the removal of three bank officials three days ago. Rumors of difficulties were reported at the bank shortly after the Cosmopolitan Bank and Trust Company closed sixteen days ago. The latter institution was closed as a result of the 1-million-dollar peculations of A. W. Shafer, discharged district manager of the Henry L. Doherty Company. AN ACCOUNT UNDER FIRE. Haveth E. Mau, United States district attorney, said an account Shafer carried in the Brotherhood bank had been under investigation two weeks. Shafer was found to be short $623,000 in his accounts with the Cos- mopolitan bank, but federal bank examiners would not disclose the size of his account with the Brotherhood bank. Mau said Shafer's collateral with the Brotherhood bank consisted of Cities Service stock certificates which bore forged indorsements. Nelson Schwab, Hamilton County prosecutor, said loans approximating $225,000 and secured by alleged forged securities had been made to Shafer by the Brotherhood bank. PRESIDENT OUT WITH OTHERS. Last Monday, after issuing a statement that the bank was in sound condition, directors said two officers had resigned. Lyman Norris was succeeded by Michael G. Heintz as vicepresident and Harry Rosenblum resigned as assistant cashier. He was succeeded by William L. Luebbe. The board announced today that J.J. Castillini had been removed as president at the same time Rosenblum and Norris were asked to resign. Ira Fulton, national bank examiher, today was appointed receiver for the bank by J. W. Pole, comptroller of the currency at Washington. He will take charge at once. RUN OF WITHDRAWALS. The Brotherhood Bank recently announced it had increased its rate of interest paid on deposits from to per cent. Deposits at the bank were said to total $4,800,000 and after the change in officials was made Monday the board of directors said depositors withdrew more than million dollars. The bank was established at convention of the brotherhood at Dallas,


Article from San Angelo Evening Standard, June 26, 1930

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Brotherhood Bank Closed Institution for Railway Clerks at Cincinnati Fails to Open CINCINNATI, June 26.(P)-The Brotherhood of Railway Clerks Na. tional Bank failed to open for business today. First information that the institution would not open came from a notice posted on the institution's door saying the bank was closed. The notice was signed by a nationbank examiner William Taylor Cleveland, federal bank examiner, recently completed an audit of the brotherhood bank and on last Monday two changes were made in the official personnel of the bank shortly after directors said the institution was in sound Michael G. Heintz was named vice president succeed ing Lyman Norris, resigned, and William L. Luebbe was appointed assistant cashier in place of Harry Rosenblum, who also resigned. Closing of the brotherhood bank came sixteen days after another Cincinnati bank. the Cosmopolitan Bank & Trust Company, was forced to close on account of the $1,000,- 000 speculations of A. W. Shafer, former district manager of the H. L. Doherty Company. The brotherhood bank recently announced it had increased its rate of interest paid on deposits from four to five per cent. Deposits at the bank were said to total $4,800,000 and after the change in officials was made Monday the board of directors said depositors withdrew over 1,000,000. The unusually heavy withdrawal was the reason given by the directors for closing the bank. They said they voted to shut down the bank and place the assets in the hands of the comptroller of currency for liquidation. J.J. Castillini is president of the bank. The majority of the bank's stock is owned by the brotherhood of railway and steamship clerks. freight handlers. express and station employes, of which there are 120,000 members in the United States. The bank was established at a convention of the brotherhood held at Dallas in 1922. The local building was constructed immediately and opened its doors in 1923. Many labor unions were said to deposits in the bank. A statement issued March 27 gave the bank's capital stock at $400,000, surplus and undivided profits $65 Deposits on that date were $4,740,281 A sum of $400,000 had been made against contingent liability The loans and discounts amounted to 143,565. Among the assets were bonds and securities estimated worth $1,803,743. Total resources were given as $5,659,363. The book value of the stock was listed at $141 48 share. National bank examiners said Shafer had an account with the brotherhood bank but did not disclose whether it was a large or small sum. The district attorney said he believed the bank should pay out satisfactorily. WASHINGTON, June 26 (P)-J. W. Pole, comptroller of the currency, appointed Ira Fulton, a national bank examiner, today as receiver for the Brotherhood of Railway Clerks Bank which closed its doors in Fulton will take immediate charge.


Article from The Urbana Daily Citizen, June 26, 1930

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CINCINNATI FAILS TO Heavy Run on Deposits Given Today as Cause; Is Second to Close. United Press CINCINNATI, June Brotherhood Railway Clerks National Bank here failed to open its doors today. typewritten notice posted the bank door said: bank has been closed by resolution of the board directors and the assets placed in the hands the of cur the United States for liquidation. National Bank Examiner Fulton is charge." Though capitalized at only 000, the bank, according to financial issued June 14, had assets of $5,849,010 with deposits The bank was the second to close here in recent On June the Cosmopolitan Bank and Trust company, private institution, closed its doors after the arrest of Shafer, district sales manager of Henry Doherty Company, on charges of embezzlement. Shafer's alleged speculations taled more than the bank said be involved either directly indirectly to the extent of In statement issued following the closing of the bank, Haveth Mau, district said: investigation of the bank's affairs thus far indicates the bank should pay out satisfactorily. "Unusual heavy withdrawals the past three days than one million dollars cessitated closing of the institu-


Article from Ledger-Star, June 26, 1930

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LABOR CLOSED Pronounced In Sound Condition After Recent Federal Audit Cincinnati, June 26 Brotherhood of Railway Clerks National Bank failed to open for business today. First information that the bank would not open came from notice posted on the institution's door saying the bank was closed. The notice was signby national bank examiner. Taylor, Fedbank examiner, recently pleted audit of the Brotherhood Bank Monday two changes made the official personnel of the shortly after directors sound condition. Michael Heintz named Lyman Norris, resigned, and William Luebbe was pointed assistant cashier of Harry Rosenblum, who also signed. Closing of the Brotherhood Bank came days nati bank, Cosmopolitan Bank and Trust Company, was forced to close account the peculations Shafer, of the Doherty Company. The Brotherhood Bank recently had its interest paid deposits from cent. bank said total and after the change Monday, the board directors depositors withdrew The unusually heavy withdrawal reason the directors closing the bank. They said they voted shut down the bank and place the the hands of the of currency for District Attorney Haveth Mau said that Taylor Fulton, another Cleveland National bank examiner been conference with him concerning the bank's fairs weeks. Castillini president. majority of the bank's stock owned by Railway Steamship Freight handlers, express and station employes, which there 120,000 United The bank established the brotherhood held Dallas, 1922. The local mediately and opened its doors in Many labor unions were said to have deposits bank. Receiver Appointed Washington, June W. Pole, comptroller the Ira Fulton, National bank today receiver Railway Clerks Bank which closed its doors in Cincinnati. Fulton take mediate charge.


Article from The Colusa Daily Sun, June 26, 1930

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RUN CLOSES BANK (By Associated Press) CINCINNATI, O., June 26- The Brotherhood of Railway Clerks National bank, the majority of the stock of which is owned by the Brotherhood of Railway and Steamship Clerks, to. day closed its doors after 1,000,000 in deposits had been withdrawn following the resignation of two bank officials three days ago. Difficulties were rumored after the Cosmopolitan Bank and Trust company closed after 16 days as a result of the mil lion dollar peculations of A. W. Shafer, who carried an account in the Brotherhood bank.


Article from The Cincinnati Enquirer, June 27, 1930

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No Other Banks Are Involved, Is Assurance Of State Officials Positive assurance was given the people of Cincinnati yesterday by Edward D. Schorr, Director of Commerce, that no other banks in Cincinnati are involved in the financial dealings that caused the Cosmopolitan Bank & Trust Co. to close its doors other than the Brotherhood of Railway Clerks National Bank which also ceased functioning yesterday. Mr. Schorr "There is absolutely no occasion for alarm the part of anyone conthe banks in Cincincerning any nati. The careful investigation of the affairs of the Cosmopolitan Bank Trust Co., which has been made by the State Banking Department, headGray, and by the State ed by Securities Division, headed by Geissinger, thoroughly all that banks in Cincinnati of us no other than the Bank Trust Co. and the Brotherhood of Railway Clerks National Bank are in way involved. "Rumors any other bank are absolutely unfounded and false. have, of course, had knowledge for days, fairs of the Brotherhood Bank and, therefore, it has been impossible for to make any general statement prior this concerning the banks Cincinnati. "Since the Brotherhood Bank has closed, is now possible for us say that no other banks are involved and that there is no occasion whatsoever for alarm on the part of anybody any other banks. Gray, State of Banks; Frank Assistant State of Banks: Chief of the State Divi. sion of Securities, Jack Nida, Assistant Chief the State Division Securities, fully concur with me this statement." the bank January 30. holding $425,bank for the deposit. This collateral in safe deposit vault at the bank. Hamilton County also has $400,000 deposit there, with $427,000 collateral covering it. This collateral safe deposit vault. The City of Cincinnati, however, is said have had no money deposit there. Stephen W. McGrath, City Treasurer. that he withdrew $250,000 from the bank June matter of routine, in accordance with the requirements of his office. He holds $270,000 of bank collateral in the safe deposit vaults, he said. city He said protect been by the Bank Examiners hold the securities for the present.


Article from The Cincinnati Enquirer, June 27, 1930

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No Other Banks Are Involved, Is Assurance Of State Officials Positive assurance was given the people of Cincinnati yesterday by Edward D. Schorr, Director of Commerce, that no other banks in Cincinnati are involved in the financial dealings that caused the Cosmopolitan Bank Trust Co. to close its doors other than the Brotherhood of Railway Clerks National Bank which also ceased functioning yesterday. Mr. Schorr said: "There absolutely no occasion for alarm on the part of anyone concerning any of the banks in Cincinnati. careful investigation of the affairs of the Cosmopolitan Bank Trust which has been made by the State Banking Department, headGray, and by the State Securities Division, headed by Geissinger, all us that banks in Cincinnati other than the Cosmopolitan Bank Trust Co. and the Brotherhood Railway Clerks National Bank are involved. "Rumors any other bank are absolutely unfounded and false. "We have. of course, had knowledge for days, concerning affairs the Bank and, therefore. has been impossible for to make any general statement prior to this concerning the banks Cincinnati. "Since the Brotherhood Bank has closed, is now possible for us to say that no other banks are involved and that there is no occasion whatsoever for alarm on the part anyany other banks. Gray, State Superintendent Banks: Frank Assistant State of Banks; Geissinger, Chief of the State Divi sion of Securities, and Jack Nida, Assistant Chief the State Division of Securities, fully concur with me this statement." bank January holding for the deposit. This collateral is in safe deposit vault at the bank. Hamilton County also has $400,000 deposit there, with lateral covering This collateral safe deposit vault. The City Cincinnati, however, said have had no money posit there. Stephen McGrath. City Treasurer. he withdrew $250,000 from the bank June matter of routine,' accordance with the requirements of his office. He holds $270,000 of bank the safe deposit he said, protect city He said had been by the Bank aminers hold the securities for the present.


Article from The Indianapolis Star, June 27, 1930

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BANK CLOSED Shafer Again Blamed for Check Kiting-2 Former Officials Arrested. CINCINNATI, O., June 26.-The Brotherhood of Railway Clerks National bank, of the country's largest labor banks, failed to open for business today. Haveth E. Mau, United States district attorney, said the bank's closing was direct result of the $1,000,000 check kiting operations of A. W. Shafer, who under indictment for having embezzled $210,162.50 of his firm's money and charged with having caused the closing of the Cosmopolitan Bank and Trust Company sixteen days ago by his alleged pecFifty-one per cent of the Brotherhood stock was owned by United States and Canadian members the Brotherhood of Railway and Steamship Clerks. Freight Handlers and The Brotherhood bank board of rectors voluntarily closed the institution after depositors withdrew $1,000, 000 in the last three days The run followed resignation of three high bank Monday. Two Officials Arrested. Two of those former officials, Lyman E. Norris, vice president, and Harry Rosenblum, cashier, were arrested late today warrants sworn by District Attorney Mau, which charged conspiracy to violate the national banking act. They pleaded not guilty and were held under $25,Federal county officials expressed belief that the bank probwould meet obligation fully and that the assets were turned over for liquidation the controller of the currency of the United slight run existed at the bank directors said That was the date the locked upon that Shafer, manager of the H. DoherCities Service securities dealers, was short $623,000 in his account with the bank. Deposited Forged Collateral. Mau said Shafer had deposited Cities Service collateral bearing forged indorsements with the Brotherhood bank. The exact amount disclosed but was reported to not run from $225,000 $375,000. Shafer, besides being short $623,000 with the Cosmopolitan bank. was short that much more the Doherty concern. He admitted ten ago that the money gambling the trying recoup $700.000 fortune lost in the market crash last fall. The Brotherhood bank had deposits 659 of $400,000. surplus $100,000 and undivided profits of Despite the forged with Brotherhood the instituthe tion was said by directors to be sound condition in report issued The bank was opened in 1923. MANY LOCAL DEPOSITORS. None of Funds of Indianapolis Unions on Deposit There. A number of Indianapolis had funds on deposit in the Brotherhood of Railway Clerks National bank, Flannagan, secretary of one of the locals here, said last night. Mr. Flannagan unable give depositors who in the Indianapolis, number was he able to estimate the amount None the funds the IndianapBrotherhood of locals of Steamship Clerks, Railway Handlers Station Freight ployes deposit in the bank far as he knew, said. ANDERSON FUNDS WATCHED. Ind., June 26. Approximately $40,000 in life insurance of fifty Anderson and $400 savings members of the Brotherhood of RailMail Clerks believed being or partly lost the closing of result National bank at CinBrotherhood's cinnati, O., today.


Article from The Saginaw News, June 27, 1930

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TWO UNDER ARREST AS BANK IS CLOSED from Page One. issued saying the institution was in good condition. Directors said closing of the bank was the best way to depositors and investigators said every obligation probably would be met. Provident Savings Bank & Trust company also experienced heavy run yesterday but kept open overtime to satisfy depositors. State Director of Commerce Edward D. Schorr announced no other banks were involved by Shafer and the Cincinnati House tion of all the rest of county's Brotherhood bank was established 1923 by the Brotherhood of Railway and Steamship Clerks and 51 per cent of the stock was owned by members the un. It was capitalized at $400, 000, and had deposits of and total resources of $5


Article from The Tribune, June 27, 1930

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TWO CHICINNATI BANKS GO UNDER (Continued from page 1) Company closed because of an alleged shortage of $623,000 in Shafer's account and Shafer was arrested on R charge of embezzling more than $210,000 from the Doherty company, his former employers. The removal of the three of ficials of the bank also resulted in withdrawal of $1,000,000 by depositors although a statement was issued saying the institution was in good condition. Directors said closing of the bank was the best way to protect depositors and investigators said every obligation probably would be met. The Provident Savings Bank and Trust Company also experieneed a heavy run yesterday but kept open over time to satisfy depositors. State Director of Commerce Edward Schorr announced no other banks were Involved by Shafer and the Cineinati Clearing House Association promised support of all the rest of the count banks. The Brotherhool Bank was es. tablished in 1923 hv the Brotherhood of Railway and Steamship clerks and 51 per cent. of the stock was owned by members of the union. It was capitalized at $400,000. and had deposits of $4,800,000 and total resources of


Article from Evening Star, June 27, 1930

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TWO UNDER ARREST IN BANK'S CLOSING Ex-Vice President and Cashier of Railway Clerks' Institution Accused. By the Associated Press. CINCINNATI, Ohio, June 27.-A secend Cincinnati bank was closed and two of its former officers were under arrest today as a result of the alleged million-dollar check kiting operations of A. W. Shafer, discharged district manager for the Henry L. Doherty Co. The failure of the Brotherhood of Railway Clerks' National Bank to open yesterday was followed by the arrests of Lyman E. Norris, former vice president, and Harry Rosenblum, former cashier, on charges of conspiracy to violate the national banking act. They were held today in default of $25,000 bond each after they entered pleas of not guilty. Removed by Directors. Norris, Rosenblum and Joseph J. Castellini, president, were removed by the directors Monday. United States District Attorney Haveth E. Mau said Shafer's alleged manipulations were the direct cause of the bank's closing. Shafer, Mau said, had deposited Cities Service collateral bearing forged indorsements. It was this stock, reported to amount to between $225,000 and $375,000, that involved Norris and Rosenblum. The Brotherhood Bank came under the scrutiny of Federal investigators June 10 when it was learned the bank carried an account for Shafer. On that day the Cosmopolitan Bank & Trust Co. closed because of an alleged shortage of $623,000 in Shafer's account, and Shafer was arrested on a charge of embezzling more than $210,000 from the Doherty company, his former employers. Expect Bank to Pay. The removal of the three officials of the bank also resulted in withdrawal of $1,000,000 by depositors, although a statement was issued saying the institution was in good condition. Directors said closing of the bank was the best way to protect depositors, and investigators said every obligation probably would be met. The Provident Savings Bank & Trust Co. also experienced a heavy run yesterday, but kept open over time to satisfy depositors. State Director of Commerce Edward D. Shorr announced no other banks were involved by Shafer, and the Cincinnati Clearing House Association promised support of all the rest of the county's banks. The Brotherhood Bank was established in 1923 by the Brotherhood of Railway and Steamship Clerks, and 51 per cent of the stock was owned by members of the union. It was capitalized at $400,000 and had deposits of $4,800,000 and total resources of $5,659,363.


Article from Lansing State Journal, June 27, 1930

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BANKS CLOSED BY SHAFER DEALS Explesion Two Men Are Held for Viola. tions after Institution Fails to Open Doors HUGE RUN IS STOPPED Examiners Promise Depositors Will Be Paid When Books Are Straightened CINCINNATI, O., June 27 (P)-A second Cincinnati bank closed two of its former officers were under arrest Friday result the alleged million dollar check kiting operations of Shafer, discharged district manager for the Henry L. Doherty The failure of the Brotherhood of Railway Clerks National to Thursday was followed by the arrests of Lyman former vice ident, and Harry former cashier. charges of conspiracy to violate the act. They were held in default of $25,000 they entered pleas of not guilty. Had Been Removed Norris, Rosenblum and Joseph Castellini, president, were removed by the Monday. United States District Attorney Haveth E. Mau said Shafer's alleged manipulations were direct cause the bank's closing. Shafer, Mau said, Service forged It this to to between $375,000, that involved Norris and The bank came under the scrutiny of investigators June when was the bank carried an account for Shafer. On that day the Bank and Trust company also alleged shortage of $623,000 in Shaaccount and Shafer arrested charge of more than the Doherty company, his Million Withdrawn The removal of the three officials of bank also resulted in withdrawal of $1,000,000 by depositors although statement was issued saying the institution good Directors said closing of the bank was the best and investigators said every obligation probably would Providence Savings Bank and study of Trust company experienced heavy but Chicago law kept open time to satisfy depositors. State Director of Commerce Edward D. Schorr announced no other banks her were involved by Shafer and the Cin- son Raymond. cinnati Clearing House promised support all the rest of the banks. The brotherhood bank established in 1923 by the of STATE OF Railway and Clerks and 51 matter per cent of the stock was owned by state members of the union. was capitalized at and had deposits of $4,800,000 and total resources of $5,659,363.


Article from The Herald-Palladium, June 27, 1930

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BARE ALLEGED CHECK FRAUDS IN BANK DEAL Two Former Officers Of Cincinnati Institution Arrested (By Associated Press) CINCINNATI, O., June 27-A second Cincinnati bank was closed and two of its former officers were under arrest today as result of the al-, leged million dollar check-kiting op. erations of A. W. Shafer, discharged district manager for the Henry L. Doherty company. The failure of the Brotherhood of Railway Clerks National bank to open yesterday was followed by the arrests of Lyman E. Norris, former vice-president, and Harry Rosenblum, former cashier, on charges of conspiracy to violate the national banking act. They were held today in default of $25,000 bond each set after they entered pleas of not guilty. Officers Removed Monday The Brotherhood bank was estab. Norris, Rosenblum and Joseph J. lished in 1923 by the brotherhood of Castellini, president, were removed railway and steamship clerks and 51 by the directors Monday. per cent of the stock was owned by United States Destrict Attorney Haveth E. Mau said Shafer's alleged manipulations were the direct cause of the bank's closing. Shafer, Mau said, had deposited Cities Service collateral bearing forged indorsements. It was this stock, reported to amount to between $225,000 and $375,000, that involved Norris and Rosenblum. The Brotherhood bank came under the scrutiny of federal investigators June 10 when it was learned the bank carried an account for Shafer. On that day the Cosmopolitan Bank & Trust company closed because of an alleged shortage of $623,000 in Shafer's account and Shafer was arrested on charge of embezzling more than $210,000 from the Doherty company, his former employers. The removal of the three officials of the bank also resulted in withdrawal of $1,000,000 by depositors al. though statement was issued say. ing the institution was in good con. dition. Directors said closing of the bank was the best way to protect depositors and investigators said every obligation probably would be met. Act to Prevent Trouble The Provident Savings Bank & Trust company also experienced heavy run yesterday, but kept open over-time to satisfy depositors. State Director of Commerce Edward D. Schorr announced no other banks were involved by Shafer and the Cincinnati Clearing House association promised support of all the rest of th county's banks.


Article from The Spokesman-Review, June 27, 1930

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BIG LABOR BANK CLOSES DOORS Cincinnati Institution Suffers Through A. W. Shafer's Kiting Operations. $1,000,000 IN 3 DAYS Heavy Withdrawals by Deposftors Last Straw-Had Resources of $5,600,000. Brotherhood of Railway Clerks' National bank, one of the country's largest labor banks, failed to open for business today. Federal District Attorney Mau said the bank's closing was direct result of the check kiting under indictment for having embezzled $210,162.50 of his firm's money and charged with having caused the closing of the Cosmopolitan Bank and Trust 16 days ago by his alleged speΓ§ulaFifty-one per cent of the Brotherhood stock was owned by 122,000 United States and Canadian members of the Brotherhood of Railway Clerks, Freight Handiers and Station Employees. The Brotherhood bank board of directors voluntarily closed the institution after depositors withdrew the last three days. The run followed the resignation of three high bank officials last Two of those former officials. Lyman E. Norris, vice president, and Harry Rosenblum, cashier. were arrested on warrants by federal District Attorney H. E. Man, charged conspiracy to violate the national banking act. They pleaded not guilty and were held under $25,000 bond each. Likely to Pay in Full. Federal and county officials ex. pressed belief the bank would probably fully meet every obligation. The assets were turned over for liquidation the comptroller of the currency of the United alight run existed at the bank since June 10, directors said. That was the date the locked its doors upon disclosure that Shafer former manager of the H. L. Doherty company, Cities Service securities dealers, waseshort $623,000 in his account with the bank. Mau said Shafer had deposited Cities Service bearing forged the Brotherhood bank. The exact amount was not disclosed but was reported to run fr $225,000 to $375,000. Due to Stock Gambling. Shafer, besides being short $623.000 with the Cosmopolitan was short that much more with the Doherty He admitted days ago he lost the money gambling in the stock market trying to recoup $700,000 fortune lost in the market crash last The Brotherhood bank had desurplus of and vided profits of $65,958 Despite the forged signatures on Shafer's col. lateral with the bank, the was said by directors to be in sound condition in report Issued Monday


Article from The News and Observer, June 27, 1930

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CLOSE DOORS OF BIG LABOR BANK Brotherhood Railway Clerks Institution at Cincinnati Fails to Open Cincinnati, O., June (AP) The Brotherhood of Railway Clerks National Bank, one the country's largest labor banks, failed to open for business today. Haveth Mau, United States Dis triet attorney, said the bank's clos result of the check kiting operations of Shafer, under having of his firm's money and with having the closing of the Cos. Bank and Trust Company sixteen days ago by his alleged specuFifty one per cent of the brother was owned by 122,000 States and members the Brotherhood of Railway and Clerks, Freight Handlers and Station Employes. The brotherhood bank board of rectors voluntarily closed the institution after depositors withdrew 000,000 in the last three days. The followed the resignation of three bank officials last Monday. Two those former Liman Norris, and Harry Rosenblum, eashier, were ar rested sworn by United States District Attorney Haveth which charged conspiracy violate the national They pleaded guilty and were held $25,000 bond Federal county officials pressed belief that the bank would probably meet fully every and that the Assets turned for liquidation to the Comptroller


Article from The News Tribune, June 27, 1930

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JAIL FORMER RAIL UNION BANK HEADS Cincinnati Authorities Hold Them for $25,000 Bond Regular Programs on the Air Friday unusual number of special broadeasts which have disarranged the regular during the past few days seems to have ended for programs the and only the usual weekly features are scheduled Friday June over the two large chain networks. The novel feature in second bank closed Northwest the special program from KJR dediciated and of former officers National Guard, which will be on the air from 9 to 10 under arrest result of the kiting The Poughkeepsie regatta, the arrival of the Australian fliers at tions of New York on their trans-Atlantic flight, President Hoover's address at district manager for the Henry L. the unveiling of the statue of former Presidnt James Buchanan and sevDoherty eral other events of national interest were successfully broadeasted dur The failure of Brotherhood of the current week. Programs this nature attract many listeners Railway Clerks National Bank open yesterday was followed by care little for the usual musical and novelty features and tend to rests of Lyman E. Norris, former increase the number of radio fans. vice president. and Harry Rosen- Radio broadcasting conditions tending and affect selection of convention cities for international interest. statement tional Mr. Carlin pointed that magnetic storms great in the quality broadand that certain times the conditions are country than larger conventions blum, former cashier, charges of conspiracy to violate the national banking act. They were held today in default of $25,000 bond each after they entered pleas of not guilty. made Phillips the Norris, Rosenblum and Joseph J. were removed by United States District Attorney Haveth Mau said Shafer's alleged the direct cause of the bank's closing. Shafer, said, had deposited Service colthose charge of the study radio this ditions in for to and $375,000. that and most adNorris and Rosenblum location for radio transThe Brotherhood Bank came under mission. the scrutiny of federal investigators June 10 when learned the bank The Raleigh revue coming over the carried an account for Shafer. On and KOMO Friday company's at that day the Cosmopolitan Bank will sea Trust because of an which by will followed of in Shafer's popular and and Shafer was arrested on song just charge embezzling more than made a in England. from the Doherty Company. Sydney Dison and Betty Anderson, his former the leading artists of the NorthRemoval of the three officials of the bank also resulted in withdrawal over KJR of by ors although includes from Verdi. statement was issued saying the inand rectors said of the bank was the protect depositors Friday's Programs and investigators said every tion probably would be met. TACOMA STATIONS Provident Bank & KVI 760 records: Trust heavy run kept time State rector of Edward D. KMO 860 stock banks birthday were and the cinnati House SEATTLE STATIONS of the rest of KOMO 920 NBC lished in Brothe of Latin Tiny and per owned KJR members the talized and Corners: and program 5:45 KOL COLUMBIA BROADCASTING SYSTEM Merning Programs children For Afternoon Programs Lambert's lecture


Article from New Britain Herald, June 27, 1930

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SECOND CINCINNATI BANK SHUTS DOORS Two Former Officers Held for Kiting Operations June 27 second Cincinnati bank was closed and two of its former officers under arrest today as result of the alleged million dollar check kiting operations of W. Shafer discharged district manager for the Henry L. Doherty company The failure of the Brotherhood of Railway National bank to open followed by the arrest of Lyman Norris. former vice president and Harry Rosenblum former cashier. on charges of conspiracy to violate the national banking act They held today in default of bond set after they entered pleas of not guilty. Norris, Rosenblum and Joseph Castellini. president were removed by the directors Monday United States District Attorney Haveth E. Mau said Shafer's alleged manipulations were the direct of the bank's closing had deposited Cities Service said. collateral bearing forged indorseamount between that involved Norris and Rosenblum The Brotherhood bank came under the scrutiny of federal investigators June 10 when it learned bank carried an account for the Shafer. On that day the Cosmopolitan Bank and Trust Company closed because of an alleged short. age of in Shafer's account and Shafer was arrested on charge of embezzling more than. from the Doherty company. his former The removal of the three officials of the bank also resulted in withdrawal of $1,000,000 by depositor's although statement was issued saying the institution was good condition Directors said closing of the bank was the best way to pro-


Article from Omaha World-Herald, June 27, 1930

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LABOR BANK CLOSES AFTER A 3-DAY RUN Is Laid to Check Kiting by Ex-Official of Doherty Firm. TWO ARE ARRESTED Cincinnati, O., June 26 The Brotherhood of Railway Clerks National bank, one of the country's largest labor banks, failed to open for business today. Haveth Mau, United States district attorney, said the bank's closing direct result of the one million dollar check kiting operations of A. W. Shafer. who is under indictment for having embezzled $210,162.50 of his firm's money and charged with having caused the closing of the Cosmopolitan Bank and Trust company 16 days ago by his alleged speculations. Fifty-one per cent of the brother hood stock was owned by 122 thou sand United States and Canadian members of the Brotherhood of Railway and Steamship Clerks. Freight Handlers and Station Employes. The brotherhood bank board of directors voluntarily closed the institution after depositors withdrew one million dollars in the last three days. The run followed the resignation of three high bank officials last Monday Jail Two Ex-Officials. Two of those former officials. Lyman E. Norris. vice-president. and Harry Rosenblum, cashier, were arrested on warrants sworn by United States District Attorney


Article from The Cincinnati Post, July 2, 1930

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PLAN TO REOPEN BROTHERHOOD CONSIDERED Prospect of Reorganization Now Looming OTHER BANKS MAY BUY Status of Cosmopolitan Still Is in Confusion While state and federal banking officials continued examination of the closed Cosmopolitan Bank & Trust Co. and the Brotherhood National Bank, negotiations were in progress Wednesday for reopening of the latter institution. Two are open to the Brotherhood Bank. One is for reorganization reopening by its own stockholders. other is for some other bank to purchase the closed by its own directors last Thursday due to heavy Brotherhood directors, working with officials the Brotherhood Railway Clerks, would the bank back banks, are desirous of taking it over branch Depositors Hopeful The matter must approved by Pole, comptroller who here working on the Brotherhood examination. Brotherhood depositors are of 100 the president the Fifth Third Union Trust Co. said Wednesday his bank takes over the Brotherhood this will be assured fact. Following suit filed by Gilbert Bettman behalf the state banking seeking liability on stock owned the Dorgers and another court action the tangle was filed. Henry Doherty Co., securities asked Pleas Court for securities held by the bank chiefly Cities Service stocks bonds. To Return Securities The securities were turned over bank connection tain drafts deposited with that bank for collection, the suit said. the did its make collection has been canceled the firm, the petition Amor W. Shafer former district manager of the Doherty firm, in county jail on charge embezzling $210,000. was his transactions that the Brotherhood Banks to close Eleven drafts. totaling $45,012.61 were Judge Stanley Struble ordered the securities turned back to the firm. Confusion in Books Ed D. state disays 10 days will the banking decomplete the He serts the tangle the worst ever the department bank failure and charges records are misplaced and employes profess of transactions The grand jury inthe crash Wednesday. Twelve additional appear before the grand jury, 802 Conrad Long 3434 Lillian 920 Burton-av; Nat Wainer. 3416 Ridgeway-av; Joseph Gardner, Newton-av; Adam Momich Ferdinand-pl; Joseph 5710 William 1915 North College Hill: Jake 1417 John-st Reineker and Hugh McShane, 408 Bank's Safety Deposit Boxes Carefully Guarded Uncle Sam mighty careful about goes Brotherhood National Bank these days. Those renting deposit boxes in basement which was closed last Thursday by have but there privacy ordinarily associated safety deposit vaults. One must first tap on the front the Then deposit box He opens the door bank? owe any money? answer the negative allowed to safety bank's deposit register the regular There wait for one of the bank ring down master He sticks his in and you insert yours and the box You out what you Then the young woman who had charge the when the was open business, types ceipt listing everything taken from the box by the customer.


Article from Evening Star, July 6, 1930

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RAILWAY CLERKS' BANK REOPENS DOORS AGAIN Is Now a Branch of Central Trust Co., One of Cincinnati's Largest State Institutions. By the Associated Press. CINCINNATI, Ohio, July 5.-The Brotherhood of Railway Clerks' National Bank, closed by its directors a week ago following a run of depositors, was reopened today as a branch of the Central Trust Co. There were some withdrawals, it was said, but these were more than offset by a large number of deposits in the first hour of business. The Central Trust Co. is one of Cincinnati's largest State banks. Its last published statement reported resources of $44,741,000.


Article from The Llano Colonist, July 19, 1930

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CLERKS BANK SOLD, DEPOSITORS SAFE CINCINNATI-(FP)- All within the period of a week the Brotherhood of Railway Clerks Natl. Bank experienced the effects of a general Cincinnati bank panic, the withdrawal of $1,500,000 by depositors, the closing of the bank, the assurance of fed ral examiners that it was solvent, the lifting of the receivership and finally its sale to the Central Trust Co. Closed on June 26, it was pronounced thoroughly sound by the comptroller of the currency and turned over to its board, which sold the institution July 2. It reopened July 5 as a Cen-


Article from The Kokomo Tribune, October 14, 1930

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VARIABLE CONDENSER RADIO INFORMATION 6:00 Songs of the Hill-Billy will be presented by the Crockett Mountaineer family, descendents of the famous pioneer. Davy Crockett, for the audiences of Columbia at ORCHESTRA 7:00 Wisconsin and Minnesota will be honored when their school songs open program the Pure chestra under direction of Wayne King will broadcast from the NBC Chicago Studios at 7:00 o'clock. DANCE TUNES 7:30 program of lively tunes from recent musical shows and talking pictures will be played by CoonSanders' dance orchestra during the Florsheim Frolic to be broad7:30 "Lucky Old Sun" will be heard for the first time on the air when it sung by the VOCAL 7:45 Mary character singer and contralto, will be the guest artist on the "Premler Salad Dressprogram over Columbia nt 7:45 The fifteen minute presentation, which will under the direction Premier Chef, who in everyday life Is Charles Premmac, tenor; will include four numbers by Claude MacArthur, conductor the Premier Salad Dressers chestra. CLASSICS 8:00 James Stanley, baritone, will the guest soloist program popular during the Eveready Program which will be broadcast at 8:00 MINUTE DRAMAS 8:00 Joseph, Mo., the next radio stop of the minute drama stock company. and will be the point sent interesting and unusual series of sketches during the program to be broadcast over ColumHenry George, Flo, Pete, and Irwin Mutch, and Cigar Band, will five during the broadcast. The cast includes Henry played by Herbert Polesie, George played Teddy Bergman, Georgia Backus Flo William Artzt as Pete, the band leader. 8:30 trio of guest composers representing three In popular music since the late Nineties will be featured as the Happy Wonder Bakers broadcast at LOUISVILLE 9:00 The commercial and educational advantages Louisville will be heard narrative and music when the Westinghouse Salute to that city is broadcast 9:00 o'clock. Various stages in the history of the municipality will be interpreted music by the ensemble directed Zoel Parenteau and Vastine. JO AND 9:00 "Foreign Exchange" is the title the playlet and program which Jo and their cast present Tuesday from to 9:15 over Columbia. "Foreign," of course, immediately recalls Nels and Hilda, embarrassingly faithful Swedlsh couple who added much spice the adventures with which and Mrs." have regularly amused the radio audience, while "exchange" holds forth hope (for Jo and that perhaps at last they have managed to rid themselves of their tenacious servitors. any rate, their efforts in that direction continue provide plenty of fun for Columbia Hsteners. Indicted in Shortage. Cincinnati, Oct. 13 last July resigned president of the of Clerks directors national bank here, after the bank closed the under tonight allegto violate laws. federal grand jury returned. three against him. The bank was closed directors after $200,000 short-


Article from The Cincinnati Post, January 1, 1931

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By Donald F. Dearness Almost any way take the year 1930 surfeited with in Greater Cincinnati calambank failures, financial disasters, crime, unemployment, pestilence, miniature golf, and, depending on how you look at it, the rout ganization. the Republican orpall hung over Cincinnati the the bells and whistles new year, for less than hours before, death Charles Phelps Taft. publisher the and the city's out standing of the and patron Scarcely two months later. on March death laid low Cincinnati's most famous William Howard Taft. the only man who served his country both S. and justice of the Court On the first day 1930. death took two victims of auto accidents, the first of about 200 who succumbed during the year in injuries suffered in motor vehicle for Crime before got away to flying start, the year three hours old, Cincinnati Street Railway car barn and made off with $1134. The day entirely itous, for the rose 52 the any Year's 1916 Russell Wilson sworn mayor by his Murray with Stanley Joseph Woeste, John Druffel Alex Pat terson. Julian Charles Rose Meredith and Edward Imbus business depression was when the began carried along which ranged more less approximately failures the Cosmopolitan Bank & Trust Co., the Brotherhood National Bank and numerous and business houses Two "other banks, the Bank "Trust Co., Bank Trust peril but were by the Cincinnati Clearing House Association and their by the Central Trust The year dealt knockout blow Republican organization the Citizens mittee cessful county elections 1926 and 1928, made clean Nov with the result that Robert Gorman become prosecutor Thursday and the following filled later by his Beckman: auditor, Robert Heuck: cororner, Dr. M. Scott Kearns. Benjamin who figured sensational ne was cashier Madeira bank, was sentenced Feb. years in Ohio after he $2000 the bank's money weeks later Jack Kennedy, Dayton who been after his conviction on charges and the free Henderson had Kennedy falsely as one of his On 20. Dr. William H. Peters health in the Four days were fied of drilled Co. Fourth-st tied blew safe escaped with worth of February had the new Louis Eighth and opened Feb 26. and the next laid for the Cincinnati Suburban beautiful new building at Sevand Elm-sts. Calamity March for William Taft and Edward Dempsey mayor and Common the March witnessed the first major busifailure of the year when R. Beaman Co. with liabilities totaling $529,000 fires out March the Theater, Fountain-sq. James operator, was burned death in his booth The next day Christine Cincinnati leaped to from the story of York hotel. Her buried several days later in Spring Grove Cemetery Zwick. at least his name, reappeared March $7500 bank robbery Germantown. Other obtained $2500 March and $4000 March 29 from the Clifton branch of the Second National Bank Three men were killed March 28 when large Sixth-st and and two their March rocks the Bald Knob blasting State-av the middle the month first mention was made of Jamaica poisoning. the malady which sent and of women for relief paralysis legs and arms. Results of returns from Cincinnati in the Literary Digest nation prohibition poll showed the Queen six one in repeal or against of present The major business announce. March was that Albert H. was elected president Kroger Grocery Baking Co. succeed William H. became chairman the board. the first important event April the reappearance Zwick's name in connection with robberies April which the same was reported $50,000 and short time later $8418 The day the Brotherhood National stirred the public's interest and invoked other banks announced would pay per interest on savings banks continued to per The which played considerable part in year's made take notice throwing few August days The rose 90 ting an April heat record in Probably the most important busof the month was the sale of most the Libson theatrical Louisville and Dayton the RKO the Albee, Capitol, Strand, Family, Palace and treaters On April about 25,000 of the faithful witnessed the opening Nabaseball game, the Reds Pirates. one of the defeats that landed team in seventh place, just ahead of some obscure club fgrom the east. On April 22 Sherrill, city manager, to become the Kroger The day Cincinnati looked with desperate concern the nation's greatest disaster the year occurred the Ohio penitentiary fire About 36 Cincinnati were among the 322 lives out. The month of May was the properiod of calm that preceded days of when the the stormy Cosmopolitan and Brotherhood and temporarily danger real and May Day troubles failed materialize the city At Christ Church Episcopal dignitaries from thruout the country for the consecration Rev On May which in the Republican debacle was started meeting at Hotel. On the the Heberle was the 28th the Church began its General Assembly in Taft Auditorium. its total contributions about $35,000 short of the $2,076,894 quota. few days later the Census Bu1930 population was 447,650. On June 10. about 37,000 depositors of Bank and its seven branches were thrown into by the news that the had failed and had been seized by the state banking department milled the Dorger holder and the bank's dominating Amor W. Shafer district manafor Henry Doherty on charges money ed Shafer's had drained the Cosmopolitan Bank forced its closing. Subsequent showed the deficit to be about $2,000, 000. Word soon around that ShaBank and that uneasy forced the bank June 26. Harry cashier, and Lyman H. Norris, by charges conspiring violate the national banking Depositors in other anks became and worried. Several banks the House the tide and the other banks' The again set record in June. On the temperature to Three persons died of the effects of the heat. Otherwise the month was more except the 12th. when C. Dykstra took as city and on the river Greene, the Ann from Fernbank Dam Coney Island. July saw the Central Trust Co. take over Brotherhood Bank and the Fifth Third Union Trust Co. the Thruout the month Hamilton-co suffered the wrought parts the nation Record was reported July Lack water in many the territory became acute July The month also witnessed the beginning legal troubles for Dorger family. On July Gilbert sued Frank Dorger his Clardaughters, Ruth and Martha various double liability on their Cosmopolitan stock. During hearings before Judge Stanley Struble Common Pleas Court Frank and Martha Dorger filed in bankruptcy and was placed the charge the Western Ruth Dorger promised to pay her asOn July 21 Frank and Clarence Dorger, Russell mopolitan cashier, and Herbert were dicted on and other charges relating to the bank's failure. After the Brotherhood Bank was taken without loss depositors, Dominick recover given the bank in payment for forged worthless disposed of by Shafer. Other July events robthe Loveland Bank, which bandits about and the would build $8,000,000 freight terminal on the site bounded Fourth John and Mill streets During July the $33,000,000 Starat Fifth, Race and the phone except interiors and the finishing touches outside Considerable progress also had been made union railroad terminal project. August brought chiefly more trouble for the Dorgers, more weather drought and the sweeping county and Robert four other Democratic candidates for United States in the Aug 12 primary election. On Aug. the Dorgers were named more score ditional Other Cosmopolitan officials and employes named. On the 25th Shafer pleaded guilty to the was sentenced to ten years in Ohio penitentiary. During the month the G. A. R. held its annual and the American Legion its state Many Cincinnatians were shocked Aug. 12 by the news that Samuel Lipp. and former state legislator, had death from near Little Falls, On Sept. the city sounded off and the bell in Hall tower rang for first in years Costes and Maur Bellonte, French Cincinnati had about end of the month when Ford reliability thundered across city visited Lunken Airport Earlier in the Cincinnati was the focal the American Chemical Society The city suffered another shock Grover Smith committed suicide. October was featured by the beginning the Frank and Clarence Dorger on the another freakish weather the 20th, when the fell 26 degrees, low record for that of the On Oct. 30, Dr. Frederick T. Vall known opthalmolo gist, died election Nov. 5. brought about the the county and Democratic victory which Y. Cooper the governorship and Bulkley overwhelmed Roscoe Republican candidate for senator. Two days later investigation trregularities here began. On heels the announcement Nov. banks would an increase to savings decame the news that banks identified with had closed and others, includthe Bank Trust Covington, the Market & Trust the Co., CinHouse Association came these rescue the Central Trust Co. took over the Brighton and the and Clarence Dorger were found counts of Nov. 22, after week' On Nov. William J. Williams, of the Western & SouthInsurance died in Johns Baltimore. Day phenomena, official temperature and the defeat of the Miami University football team by the University of Cincinnati Bearcats opened with the holdup Railway Co. truck three robbers and their with about $14,000. Two later the Commercial Tribune publication. On Dec. 10 four Republican election officials were indicted on elecfraud Frank and Dorger 15 Judge Charles Bell Criminal Court to 10 in Ohio penitentiary and fined $5000 each. On Dec. 10. street car and CinRailway Co. bus near the end Eighth-st Viaduct, injuring 19 perAnnouncement was made Dec. 19 that Fritz had resigned director the Cincinnati Symphony Orchestra, effective at the close of the and that Eugene would replace him year and in direct the May Festival spring.