14934. Cosmopolitan Bank & Trust Company (Cincinnati, OH)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
trust
Start Date
June 10, 1930
Location
Cincinnati, Ohio (39.103, -84.515)

Metadata

Model
gpt-5-mini
Short Digest
a2715c506300c6d0

Response Measures

None

Description

The Cosmopolitan Bank & Trust (Cincinnati) was closed by the state superintendent after a large shortage caused by A. W. Shafer's check-kiting/embezzlement came to light (articles dated June 10–27, 1930). Depositors swarmed and there was a run/withdrawals around the closing; the bank was placed in liquidation/receivership and did not resume independent operations (assets later handled/taken over).

Events (5)

1. June 10, 1930 Run
Cause
Bank Specific Adverse Info
Cause Details
Large shortage (approx. $575,000–$623,000 reported; possibly larger) caused by alleged check-kiting/embezzlement by A. W. Shafer, manager for Henry L. Doherty Co.
Measures
None specifically reported beyond attempts by officials/examiners to investigate; police present to guard bank after closing.
Newspaper Excerpt
Scores depositors swarmed around the bank the time the institution was scheduled to open.
Source
newspapers
2. June 10, 1930 Suspension
Cause
Government Action
Cause Details
State superintendent of banks ordered the institution closed after examiners found the large shortage in deposit accounts tied to Shafer's operations.
Newspaper Excerpt
Cosmo... Bank and Trust company was closed today by O. C. Gray, state superintendent of banks, after a shortage ... was found.
Source
newspapers
3. June 26, 1930 Receivership
Newspaper Excerpt
Ira Fulton, National Bank Examiner at Cleveland, who becomes the receiver of the bank. He took immediate charge of the bank yesterday, shortly after the official closing notice ... had been posted on the front of the bank. (Cincinnati Enquirer, June 27, 1930).
Source
newspapers
4. August 29, 1930 Other
Newspaper Excerpt
Frank J. Dorger and Clarence A. Dorger sentenced 10 years in Ohio penitentiary and fined $5,000 for charges growing out of the closing of the Cosmopolitan Bank and Trust company (Aug 29, 1931).
Source
newspapers
5. November 26, 1930 Other
Newspaper Excerpt
Accounts and business of the former Cosmopolitan Bank were transferred/moved when Fifth and Walnut office (formerly main Cosmopolitan office) was integrated into Fifth Third Union Trust Co.; liquidation matters handled by Special Superintendent of Banks of Ohio.
Source
newspapers

Newspaper Articles (14)

Article from Fort Lauderdale News, June 10, 1930

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DEPOSITORS IN EXCITED SWARM SURROUND BANK Shortage Is Caused by Official's Stock Gambling INSTITUTION IS CLOSED Cincinnati Institution Wrecked by Trusted Employee's Actions CINCINNATI, June Cosmo Bank and Trust company was closed today by Gray, state superintendent of banks, after a shortage of from $575,000 to $590,000 was found in the bank accounts of the Henry L. Doherty company Cincinnati Doherty company the depositors in the Cosmopolitan bank. Penn Gray ordered the bank to remain The closed. explaining that its affairs were in More Than Million Examiners and county officials shortage more than existed in the books Amos W. former district manager the Doherty company and clared the the emphasized by the fact the bank's capital, according to published statement last March 27, amounted to only $637,377. Officials said the caused by stock market gambling operations of Shafer. Shafer arraigned on an embezzlement charge, waived examination held the grand jury under $15,000 bond. O. Gray, superintendent of bank examiners, said affairs the Cosmopolitan bank turned to state banking commission and thorough investigation will made its books. Scores depositors swarmed around the bank the time the institution was scheduled to open. posted on the doors that the bank would remain closed. County Prosecutor Nelson Schwab corps of investigators to bank examiners audit the bank's books.


Article from Des Moines Tribune, June 10, 1930

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Earlier Made Lows Level After From Best at Day's Recovering DOHERTY LOSS CLOSES BANK Employe Found Short in Company Account. CINCINNATI Cosmo- 000 long tons in the corresponding politan Bank and Trust company period last year. Deliveries were closed Tuesday O. Gray, 1,750,000 long tons, compared superintendent banks, with long tons in the after shortage of from $575,like period last year. to was found in the accounts of the Henry company Cincinnati Crude rubber stocks in Lonbranch. don June totaled 77,616 tons, The Doherty company was one increase of 118 tons over the of the largest depositors in the preceding week. Cosmopolitan bank Gray ordered the bank remain closed saying The American Machinist reports its affairs were in the hands of that dullness continues to be the the state. dominant characteristics of tradExaminers and county officials ing in machinery and machine said shortage of more than the counexisted the books of try. Demand light, but prices Amos W. district holding and deliveries manager of the Doherty company are immediate on stock items. and declared the seriousness of the shortage emphasized by current survey of the steel fact the bank's capital, accord- demand by the Standard Stato published statement last tistics company states that March 27, amounted to only those lines which required the major portion finished steel Officials said the shortage was during the closing months caused by stock gambling 1929 and the first quarter of operations of Shafer. Shafer the current year are yielding arraigned on an considerable and the steel industry is more the grand jury under and dependent for stabbond. ilized on increased Aside from being short nearly requirements from fresh in his with the bank, said was short at least Directors of the Loose Wiles the accounts of customers of the Biscuit Tuesday declared Doherty firm. the usual extra dividend of 10 Examiners said Shafer "kited" cents share the common checks in an effort stock in addition to the regular recoup losses suffered during the quarterly disbursements of 65 cents on the common and $1.75 collapse of the stock market.


Article from Springfield Leader and Press, June 10, 1930

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BANK IS CLOSED WHEN DEPOSITOR STEALS FORTUNE Million Dollar Embezzlement of Securities Company Manager Forces Cincinnati Trust Company to Suspend Business By The Associated Press CINCINNATI, June 10-The Cosmopolitan Bank and Thrust company was closed today by O. C. Gray, state superintendent of banks, after shortage of from $575,000 to $590,000 was found in the bank accounts of the Henry L. Doherty company Cincinnati branch. The Doherty company was one of the largest depositors in the Cosmopolitan bank. Shortage Exceeds Million Examiners and county officials said a shortage of more than $1,000,000 existed in the books of Amos W. Shafer, former district manager of the Doherty company and declared the seriousness of the shortage was emphasized by the fact the bank's capital according to published statement last March 27, amounted to only $637,377. Officials said the shortage was caused by stock market gambling operations of Shafer. Shafer was arraigned on an embezzlement charge, waived examination and held to the grand jury under $15,000 bond. Although Shafer specifically is charged with embezzlement of $10.162.50, Assistant County Prosecutor Dudley Outcalt and officials of the Doherty firm indicated the total shortage may be between $1,000,000 and $1,500,000. Arrested at Home Shafer was arrested at his home here late yesterday shortly after New York officials of the Doherty company, specializing in Cities Service securities, had announced his dismissal because of "rregularities." He was released under $30,000 bond. Oscar F. Raine, manager of the company's Detroit office. was sent here temporarily "to look after the interests of the stockholders of Cities Service company in every way." Shafer, according to information obtained by officials o the company and detectives, suffered heavy losses in the stock market collapse and attempted to recoup by "kiting" checks. By the time unpaid checks and draf's were returned unpaid. he would cover them with other papers to keep his firm's bank balance high, it was alleged. Robbed Customers Aside from being short nearly $600,000 in his accounts with the bank, examiners said Shafer was short at least $500,000 more in the accounts of customers of the Doherty firm. Examiners said Shafer "kited" customers' checks in an effort to recoup losses suffered during the collapse of the stock market. Official investigators and examiners said the Henry L. Doherty company was in no manner responsible for closing of the Cosmopolitan bank and that the situation arose from Shafer's speculations. The Doherty branch office opcrated as usual today.


Article from The Rhinelander Daily News, June 14, 1930

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Ohio Man to Face Charges CINCINNATI, O., June 13 (By A. P.)-A. W. Shefer, whose failure to regain n lost fortune by gambling in the stock market resulted in his alleged manipulation of $1,000.000 in checks and forced the closing of the Cosmopolitan Bank and Trust company, was under indictment tonight for embezzlement of $210,152.50 from the Henry L. Doherty company. Shefer was manager of the company's Cincinnati branch.


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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Only Two Involved County Prosecuting Attorney Nelson Schwab calls upon all citizens to maintain confidence the banking institutions here. He issued the following statement: "It essential to the wellbeing of the community that all of our citizens maintain absolute confidence in our banking institutions. cannot too strongly upon the citizens of Hamilton County that my investigations show that only two banks are involved in the manipulations by Amor W. Shafer, and these are the Cosmopolitan Bank and Trust Company and the Brotherhood of Railway Clerks National Bank." when the stock market collapsed, carrying Cities Service stock into monster slump. It was said that Shafer would take stock certificates to the two bank officials and have them sold through two Cincinnati brokerage firms for his account at the bank. These stocks were "ordered out," that they were ordered to be sent to New York and transferred on the books of the company to the new purchasers. Other stocks, however, were ordered to be retained in the brokerage account collateral, and not to be transferred on the company's books in New York. These certificates carried attached powers attorney, their use collateral. The slips were pinned to the certificates. It has since that the stocks ordered out legitimately signed stocks sold for customers, but that the stocks in the account with attached powers of torney had been forged with the names of the certificate holders, alleged. This, was said, explained why number of customers having dif ficulty in obtaining delivery their stocks from the Cincinnati branch of the Doherty Company. In some cases where customers went to the company and insisted upon delivery stocks. that particular stock would be removed from the collateral list the brokerage firms and replaced with certificate for the same number of shares. The "power of torney" would be removed and the original certificate would be delivered to the customer, who had no idea it had been used as brokerage collateral. Took Profit In Sales. It also was reported that Rosenblum and Norris had been working with Shafer in these negotiations. Shafer would turn over stock to them under the market price to be sold, was learned. They would sell the stock at the market price, take two three point profit for and credit with the balance. This explains made $60,000 from their deals with him, was said. When the Cosmopolitan Bank failed to open more than weeks ago and Shafer's name was brought into the case block of 10,000 shares of the Shafer stock held by one brokerage firm was sent to New York for transfer. then was discovered that the names had been forged. The Doherty Company informed the brokers, who in turn informed the bank. Since the bank in the course of its business had guaranteed the signatures of the customers on these certificates and handled the stock it became involved. The Federal officials were called into the case and nationbank examiners began immediate examination of the books. They found the large contingent liability on the part the bank and brought it to the attention of the directors. Resignations Are Tendered. Last Monday the Directors went the with the result that the Brotherhood of Railway Clerks, which owns 51 per cent the bank, put up $300,000 backed $750,000 in collateral. Castellini, President of the bank for several years, put up $100,000 and then tendered his resignation President and Director. Rosenblum and ris put up $100,000 in property they held and also resigned. In addition the bank carries forgery bond for $150,000, making total of $650,000 immediately available to overcome the contingent liability. Also, the Brotherhood agreed to up $200,000 more necessary. The double liability of stockholders, which can be imposed if necessary, would add another $400,000, carrying the total available well over $1,000,000. This, it was said, is sufficient insure depositors of the bank against loss. Officials the bank believe they will be able to pay 100 cents on the dollar when the bank's affairs are liquidated. Receiver Takes Charge. The liquidation will be in charge of Ira Fulton, National Bank Examiner at Cleveland, who becomes the receiver of the bank. He took immediate charge of the bank yesterday, shortly after the official closing notice, written on bank letterhead, had been posted on the front of the bank. Although rumors were current for several days that the bank was volved through Shafer's operations, was not until yesterday that the actual situation known. The notice, signed by Fulton, read: "This bank has been closed by resolution the Board of Directors and the assets placed in the hands the of the Currency the United States for liquidation. National Bank Examiner Fulton in charge.' Before the notice was posted, police notified and detail on hand to guard against any demonstrations. Although of depositors and stockholders came to the bank during the day, when its plight became known, there was little need for the police, it was said. During most of the day only one patrolman was duty there. At the time that Norris and Rosenblum were removed officials of the bank, formal announcement was made that they had resigned, but no explanation was made. Nothing was said time about the resignation Mr. Castellini as President. Rumors began to appear, however, immediately afterward, and this brought two-day run, which took out of the bank Tuesday and Wednesday, The directors found that loyal friends of the bank, some with


Article from The Republic, June 27, 1930

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dorsements. It was this stock, reported to amount of 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 accounts 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, 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 would be met. The Provident Savings Bank & Trust Co. 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 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 & 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 $5,639,363.


Article from Fort Worth Record-Telegram, June 27, 1930

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Brotherhood Bank Closed, Two Ex-Officials Arrested CINCINNATI. June 26.-One of the country's largest labor banks, the Brotherhood of Railway Clerks National Bank, closed today as direct result of the $1,000,000 check kiting operations of A. W. Shafer, whose speculations also forced the Cosmopolitan Bank and Trust Company to close 16 days ago. Fifty-one per cent of the brotherhood St ck was owned by 122,000 United tates and Canadian members of De Brotherhood of Railway and Ste hiship Clerks, Freight Handlers and Station Employes. The brotherhood bank board of directors voluntarily closed the institution after depositors withdrew $1, 000,000 in the last three days. The run followed the of three high bank officials last Monday. Ex Officials Arrested. Two of those former officials, Lyman E. Norris, vice president, and Harry Rosenblum, cashier, were arrested on warrants sworn by United States District Attorney Haveth E. Mau, which charged conspiracy to violate the national banking act. They pleaded not guilty and were held under $25,000 bond each. Federal and county officials expressed belief that the bank would probably fully meet every obligation and that the assets were turned over for liquidation to the Comptroller of the Currency of the United States. A slight run existed at the bank since June 10. directors said. That was the date the Cosmopolitan locked its doors upon disclosure that Shafer, former manager of the H. L. Doherty Company City dealers. was short $623,000 in his account with the Forged Indorsements. Mau said Shafer had deposited Cities Service collateral bearing forged indorsements with the brotherhood bank. The exact amount was not disclosed but was reported to run from $225,000 to $375,000. Shafer, besides being short $623,000 with the Cosmopolitan bank, was short that much more with the Doherty He admitted 10 days ago that he lost the money gambling in the stock market trying to recoup $700,000 fortune lost in the market crash last Fall. The brotherhood bank had deposits of $4,800,000 total resources of $5, 659,363, capital stock of $400,000. surplus of $100,000. and undivided profits of $65,958. Despite the forged signatures on Shafer's collateral. with the bank, the was said by directors to be in sound condition in report issued Monday. The bank was opened in 1923.


Article from The World-News, June 27, 1930

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TWO FORMER BANK OFFICIALS ARE UNDER ARREST Are Charged With Conspiracy to Violate the National Banking Act. bank closed of its former officers were under arrest today result of the alleged million dollar check kiting operations Shafer, discharged district manager the Henry Doherty Company. The failure the Railway National Bank yesterday was followed the arrests Lyman former and Harry former cashier, charges conspiracy National Banking Act. held today default of after they entered pleas and Joseph removed by the United States District Attorney Shafer's alleged the direct cause the bank's closing. Shafer, Mau Service collateral bearing forged indorsements. It this to tween that Norris and Bank came under the of Federal investigators when was learned the bank carried an account for Shafer. that day the Cosmopolitan Bank and Trust Company closed leged shortage of in Shafer's Shafer was charge than 000 from the Doherty Company, removal the three officials of the bank resulted although statement was issued saying the Directors said closing the bank was the best and said every obligation probably Provident Savings Bank and heavy run yesterday, but kept open over time satisfy depositors. State Director Commerce Edward Schorr other banks were Shafer the Cincinnati Clearing promised support the Bank 1923 by the of RailClerks and per of the stock was owned by memthe union. deposits and total resources of $5,659.-


Article from Tulsa World, June 28, 1930

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OFFICERS ARRESTED WHEN BANK CLOSES Second Cincinnati Institution Closed; Charge Officials With Check Kiting CINCINNATI. Ohio, June second Cincinnati bank was closed and two of its former officers were under arrest today as result of the alleged check kiting of A. W. Shafer. discharged district manager for the Henry L. Doherty The failure of the Brotherhood of Clerks National bank to was by the of Lyman E. Norris. former president, and Harry Rosenblum, former charges conspiracy to violate the act. They were held today default of $25, 000 bond each set they entered pleas Officers Removed. Norris, Rosenblum and Joseph president, removed by the Monday. United States District Attorney Haveth E. Mau said Shafer's leged manipulations the dibank's closing Shafer Mau said, had deposited Cities bearing forged was this reported to amount tween and $875,000. that Norris Rosenblum. The bank under the scrutiny of federal investiwhen was learned the bank carried an account for Shafer. On that day the Cosmopolitan Bank and Trust company closed because an alleged shortage $623,000 in Shafer's account, and Shafer arrested on charge embezzling more than $210,000 from the Doherty company, his former employers. Stays Open Late. The removal of the three officials of the bank also resulted withdrawal of $1,000,000 by depositors, statement was issued saying the institution was in Directors said closing of the bank was the best way protect depositors, and investigators said every obligation probably would be met. The Provident Savings Bank and Trust also heavy run yesterday, but kept depositors. State Director of Commerce Edward D. Schorr no other banks involved by Shafer and the Cincinnati Clearing House all the rest the banks. 1923 by the Brotherhood of Railway and Steamship Clerks, and 51 per cent of the stock owned by members the capitalized had deposits and total resources of $5.-


Article from The Cincinnati Enquirer, November 26, 1930

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TO CLOSE BANK BRANCH. Business Of Fifth And Walnut Of. fice Is To Be Transferred. Announcement was made yesterday by Edward F. Romer, Vice President of the Fifth Third Union Trust Company, that the accounts and business of the Fifth and Walnut office would be moved to the Fourth and Walnut office at the close of business Saturday, December The Fifth and Walnut office of the Fifth Third Union Trust Company formerly the main office of the Cosmopolitan Bank and Trust Company, and, when that bank was taken by the Fifth Third. it advisable maintain the fifth and Walnut office temporarily speeding up the tion of the former Cosmoplitan Bank and Mr. Romer stated that more efficould be to the fthe Fifth and Walnut office by the business of office to the commodious banking home the Fourth and Walnut office, where the customers will the benefit of the most The task of moving the equipment to the Fourth Walnut office be after banking hours Saturday and Sunday, that and after Monday, December the of the Fifth and Walnut office will be served without interruption the northwest corner of Fourth and Walnut Streets. All pertaining to the liquidation of former Cosmopolitan Bank and Trust will be handled in special quarters on the Seventh will remain in charge of Edward F. Special Superintendent of Banks of Ohio.


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.


Article from The Creighton News, July 16, 1931

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TWO FORMER BANK OFFICIALS ARE UNDER ARREST Are Charged With Conspiracy to Violate the National Banking Act. bank closed of its former officers were under arrest today result of the alleged million dollar check kiting operations Shafer, discharged district manager the Henry Doherty Company. The failure the Railway National Bank yesterday was followed the arrests Lyman former and Harry former cashier, charges conspiracy National Banking Act. held today default of after they entered pleas and Joseph removed by the United States District Attorney Shafer's alleged the direct cause the bank's closing. Shafer, Mau Service collateral bearing forged indorsements. It this to tween that Norris and Bank came under the of Federal investigators when was learned the bank carried an account for Shafer. that day the Cosmopolitan Bank and Trust Company closed leged shortage of in Shafer's Shafer was charge than 000 from the Doherty Company, removal the three officials of the bank resulted although statement was issued saying the Directors said closing the bank was the best and said every obligation probably Provident Savings Bank and heavy run yesterday, but kept open over time satisfy depositors. State Director Commerce Edward Schorr other banks were Shafer the Cincinnati Clearing promised support the Bank 1923 by the of RailClerks and per of the stock was owned by memthe union. deposits and total resources of $5,659.-


Article from The Piqua Daily Call, August 29, 1931

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CINCINNATI BANKERS PLEAD FOR REVIEW Columbus, O., Aug. state supreme court was asked to review the case of Frank J. Dorger and Clarence A. Dorger on charges "rowing out of the closing 01 the Cosmopolitan Bank and Trust com"iny, Cincinnati of which they were officials. Each was sentenced 10 years In Onio penitentiary and fined $5,000.