15033. Produce Exchange Bank (Cleveland, OH)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 22, 1904
Location
Cleveland, Ohio (41.499, -81.695)

Metadata

Model
gpt-5-mini
Short Digest
3339df98c8bccdc2

Response Measures

None

Description

Multiple contemporary articles (Jan 22–26, 1904) report the Produce Exchange Banking Company of Cleveland closed its doors and the insolvency court appointed the Cleveland Trust Company receiver. Closure followed discovery of a large defalcation ($170,000–$187,000) by Cashier George A. Rose; branches at Defiance, Hudson and Bedford were also closed. No article describes a depositor run prior to suspension; sequence is suspension with receivership/closure due to embezzlement.

Events (2)
1. January 22, 1904 Receivership
Newspaper Excerpt
The insolvency court has appointed the Cleveland Trust company as receiver for the failed bank.
Source
newspapers
2. January 22, 1904 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Large defalcation/embezzlement by cashier George A. Rose (reported $170,000–$187,000) forced closure; directors unable to cover deficiency; branches closed.
Newspaper Excerpt
The Produce Exchange Banking company closed its doors today. The insolvency court has appointed the Cleveland Trust company as receiver.
Source
newspapers

Newspaper Articles (19)
1. January 22, 1904 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, January 22, 1904

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Article Text

Defalcation of $170, 000 Too Much for Bank AT CLEVELAND OHIO Doors are Closed and a Receiver is Appointed. Cleveland. Jan. 22.-The Produce Exchange Banking company closed its doors today. The insolvency court has appointed the Cleveland Trust company as receiver. The assets and liabilities are $1,500,000. Rumors are in circulation that the failure of the bank was caused by a heavy defalcation. It is said an arrest will follow shortly. Statement Given Out. Attorney Andrew Squire, on behalf of the bank. made the following statement this afternoon "There is a defalcation of $170,000, which is more than the paid in capital and surplus combined."

2. January 22, 1904 The Minneapolis Journal Minneapolis, MN
Article from The Minneapolis Journal, January 22, 1904

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Article Text

BANK SUSPENDS Cleveland Financial Institution Closes It Doors-Liabilities $1,500,000. Cleveland, Jan. 22.-The Produce Ex change Banking company closed its door to-day. The insolvency court has ap pointed the Cleveland Trust company a receivers. The assets and liabilities 0 the bank are each placed at $1,500,000.

3. January 22, 1904 Evening Star Washington, DC
Article from Evening Star, January 22, 1904

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Article Text

CLEVELAND BANK SUSPENDS. Assets and Liabilities Each Placed at $1,500,000. CLEVELAND. January 22.-The Produce Exchange Banking Company. corner Broadway and Central avenue, closed its doors today. The insolvency court has appointed the Cleveland Trust Company as receivers. The assets and llabilities of the bank are each placed at $1,500,000.

4. January 22, 1904 The Providence News Providence, RI
Article from The Providence News, January 22, 1904

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BANK CLOSES ITS DOORS. Cleveland, O., Jan. 22-The Produce Exchange bank, corner of Broadway and Central avenue, closed Its doors today. The insolvency court has appointed the Cleveland Trust company receiver. The assets and liabilities of the bank are placed at $1,500,000 each.

5. January 23, 1904 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, January 23, 1904

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CLEVELAND BANK FAILS. George A. Rose, Cashier, Defaulter to the Extent of $170,000. CLEVELAND, O., Jan. 23.-The Produce Exchange Banking company, on Broadway and Central avenue, has closed its doors. The insolvency court has appointed the Cleveland Trust company receiver. The assets and liabilities of the bank are each placed at $1,500,000. Attorney Andrew Squire, in behalf of the bank, made the following statement: "George A. Rose, cashier of the bank, is a defaulter to the extent of $170,000." It is said that Rose is now under guard at his home and will be taken before the grand jury today. According to statements of other bank officials, he will plead guilty to the charge of embezzlement.

6. January 23, 1904 The St. Louis Republic Saint Louis, MO
Article from The St. Louis Republic, January 23, 1904

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BANK OFFICIAL SHORT $170,000; TO BE ARRESTED Produce Exchange Concern at Cleveland Is Closed and Numerous Small Depositors Worried. THREE BRANCHES AFFECTED. Peculations of Accused Man Have Continued for Years, Caused by Gambling in Grain. HE HAS CONFESSED FULLY. Directors Make Strenuous Efforts to Make Up Deficiency, but Are Compelled to Abandon Their Task. Cleveland. Jan. 22.-The Produce Exchange Banking Company closed its doors to-day. The insolvency court has appointed the Cleveland Trust Company as receivers. The assets and liabilities of the bank are each placed at $1,500,000. Attorney Andrew Squire, on behalf of the bank, made the following statement this afternoon: "There is a defalcation of $170,000. which is more than the paid-in capital and surplus combined. The original capital was $200,000, but only $50 per share was paid in. The depositors will be protected fully. The stockholders will have to pay in $100,000 more on their capital stock and $200,000 in stockholders' liability. "The directors worked all day trying to make up the deficiency. but the burden was too heavy, and they decided to close the bank 'For many years this official has been speculating in Chicago grain. He covered his peculations by manipulating the bank's loan accounts. He voluntarily confessed yesterday." NOW UNDER GUARD. This official is now under guard at his home. He will be taken before the Grand Jury to-morrow morning, and will, according to statements of other bank officials to-night. plead guilty to the charge of embezzlement. An indletment will be brought against him and the case hurried to trial. There is a great deal of uneasiness among the depositors, many of whom are small merchants, of various nationalities, who sell fruits and vegetables from door to door, and deposited their money in the Produce Exchange Bank. It is announced that branches of the Produce Exchange Bank at Defiance, Hudson and Bedford, O., will be closed at once as a result of the failure. The Produce Exchange Banking Company is an Ohio corporation. Its officers are: President. William H. Gabriel: vice president, D. M. Kimberly: secretary and treasurer, C. O. Evarts; cashier at Cleveland. George A. Rose, In the deed of assignment it was stated that the transfer was made for the benefit of the creditors and stockholders of the company.

7. January 23, 1904 The News & Observer Raleigh, NC
Article from The News & Observer, January 23, 1904

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Article Text

Gilt-Edged Thief. (By the Associated Press.) Cleveland, Ohio, Jan. 22.-The Produce Exchange Banking Company , corner Broadway and Central avenue, closed its deors today. The insolvency court has appointed the Cleveland Trust Company as receivers. The assets and liabilities of the bank are each placed at 31,500,000. Attorney Andrew Squire, on behalf of the bank, made the following statement: "There is a defalcation of $170,000 which is more than the paid in capital and surplus combined. The original capital was $200,000 but only $50 per share was paid in. The depositors will be protected fully The stockholders will have to pay $100,-

8. January 23, 1904 The Madison Daily Leader Madison, SD
Article from The Madison Daily Leader, January 23, 1904

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Article Text

HEAVY DEFALCATION PRODUCE EXCHANGE BANK OF CLEVELAND SUSPENDS. Official of the Institution Said to Have Defaulted in the Sum of $170,000. Cleveland. Jan. 23.-The Produce Exchange Banking company has closed its doors. The insolvency court has appointed the Cleveland Trust company as receiver. The assets and liabilities of the bank are each placed at $1,500,000. Attorney Andrew Squire, on behalf of the bank, made the following statement: "There is a defalcation of $170,000, which is more than the paid in capital and surplus combined. The original capital was $200,000, but only $50 per share was paid in. The depositors will be protected fully. The stockholders will have to pay in $100,000 more on their capital stock and $200,000 in stockholders' liability. "The directors worked all day trying to make up the deficiency, but the burden was too heavy and they decided to close the bank. "For many years the defaulting official has been speculating in Chicago grain. He covered his peculations by manipulating the bank's loan accounts. He voluntarily confessed Thursday. He will be taken into custody at once. The directors know where he is." It is announced that branches of the Produce Exchange bank at Defiance, Hudson and Bedford, O., will be closed at once as a result of the failure.

9. January 23, 1904 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, January 23, 1904

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Article Text

WITH A CRASH. Doors of Big Cleveland Bank Closed With Bang. Cashier Said to Be a Defaulter to Amount of $170,000. Has Confessed and Will Be Given a Speedy Punishment. Cleveland, Ohio, Jan. 22.-The Produce Exchange Banking Co., corner of Broadway and Central avenue, closed its doors, today. The insolvency court has appointed the Cleveland Trust Co. receiver. The assets and aliabilities of the bank are placed at $1,500,000. Rumors are persistently in circulation that the failure of the bank was caused by a heavy defalcation. It is also said that an arrest will follow shortly. The officials of the bank refuse to either confirm or deny the reports. Attorney Andrew Squire on behalf of the bank made the following statement, this afternoon: "There is a defalcation of $170,000, which is more than the paid-in capital and surplus combined. The original capital was $200,000, but only $50 per share was paid in. The depositors will be paid fully. The stockholders will have to pay in $100,000 more on their capital stock and $200,000 in stockholders' liability. "The directors worked all day trying to make up the deficiency, but the burden was too heavy and they decided to close the bank. "The defaulting official has been speculating in Chicago grain. He covered his peculations by manipulating the bank's loan accounts. He voluntarily confessed, yesterday. He will be taken into custody. The directors know where he is." It is announced that branches of the Produce Exchange Bank at' Defiance, Hudson and Bedford, Ohio, will be closed at once as a result of the failure. An official of the bank is now under guard at his home. He will, according to the statements of the bank officials, tonight, plead guilty to a charge of embezzlement. An indictment' will be brought against him and the case hurried to trial. There is a great deal of uneasiness among the depositors, many of whom were small creditors, Italians and other nationalities. The irregularity has been going on for eight years, it is said, tonight.

10. January 23, 1904 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, January 23, 1904

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Article Text

DEFALCATION CAUSES FAILURE OF A BANK Cleveland Institution Misses $170-, 000 from Its Coffers-Branch Also Closed. CLEVELAND, Jan. 22.-The Produce Exchange Banking Company, corner Broadway and Central avenue, closed its doors today. The Insolvency Court has appointed the Cleveland Trust Company as receiver. The assets and liabilities of the bank are each placed at $1,500,000. The Produce Exchange Banking Company is an Ohio corporation. Its officers are: President, William H. Gabriel; vice president, D. H. Kimberly; secretary and treasurer, C. O. Evarts. In the deed of assigment it was stated that the transfer was made for the benefit of the creditors and stockholders of the company. The last financial statement made by the bank, on Oct. 1, gave its total resources at $1,759,689; total liabilities of the same amount. A statement was issued to the effect that a defalcation of $170,000 existed, due to the speculation of an official in Chicago grain. The bank has branches at Defiance, Hudson and Bedford, O. The Defiance branch has been closed and the others will be.

11. January 26, 1904 Perth Amboy Evening News Perth Amboy, NJ
Article from Perth Amboy Evening News, January 26, 1904

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Rose Is In Prison. CLEVELAND, O., Jan. 26.-Cashier George A. Rose, who is under arrest charged with embezzling $187,000 from the Produce Exchange bank, which has closed its doors, is locked up in the county jail awaiting developments in the examination of the bank's affairs by the officials of the Cleveland Trust company, which has been appointed receiver for the failed bank. One of the principal objects in examining the books will be to learn if Rose cannot be charged with a more serious offense than embezzlement, the maximum penalty for which in Ohio is but ten years' imprisonment,

12. January 26, 1904 The Bennington Evening Banner Bennington, VT
Article from The Bennington Evening Banner, January 26, 1904

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Rose Is In Prison. CLEVELAND, O., Jan. 26.-Cashier George A. Rose, who is under arrest charged with embezzling $187,000 from the Produce Exchange bank, which has closed its doors, is locked up in the county jail awaiting developments in the examination of the bank's affairs by the officials of the Cleveland Trust company, which has been appointed receiver for the failed bank. One of the principal objects in examining the books will be to learn if Rose cannot be onarged with a more serious offense than embezzlement, the maximum penalty for which in Ohio is but ten years' imprisonment.

13. January 27, 1904 The Star Reynoldsville, PA
Article from The Star, January 27, 1904

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BANK WRECKED. Defalcation of More Than the Capital and Surplus. The Produce Exchange Banking Company, Broadway and Central avenue, Cleveland, closed its doors. The insolvency court has appointed the Cleveland Trust Company receiver. The assets and liabilities of the bank are placed each at $1,500,000. Attorney Andrew Squire, on behalf of the bank, made the following statement this afternoon. "There is a defalcation of $170,000. which is more than the paid-in capital and surplus combined. The original capital was $200,000. but only $50 per share was paid in. The depositors will be protected fully. The stockholders will have to pay in $100,000 more on their capital stock and $200,000 in stockholders' liability.

14. January 27, 1904 Willmar Tribune Willmar, MN
Article from Willmar Tribune, January 27, 1904

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LATER NEWS, Tornadoes played havoc at several places in North Alabama, resulting, as far as known, in the death of thirty persons and the injury of many more. The worst was at Moundville. At North Birmingham, thirty-six houses were demolished by the storm, but no one was killed. Charles Crump, a negro, at Superior, Wis., was convicted of murdering his white son-in-law. The Produce Exehange bank at Cleveland, o., closed its doors. The sultan of Turkey has ordered that general amnesty be granted to the Bulgarians and Macedonians who have been imprisoned for participation in the disturbance of last summer. The fact that a large fleet of American warships is said to be under orders for Janampo in Korean waters is disliked by Russia. Preparations to meet what may be the worst flood in Pittsburg history are about complete. No flood ever gave more warning than the one now impending. A rceiver is appointed for the Banker's Union of the World, which has $25,000,000 of insurance ontstanding. French chamber of deputies is a scene of tumalt as the result of agitation of Alsace dispute. Associate Manager Powers of Iroquois theater puts burden of responsibilities of management on Mr. Davis. James Walker, near Elgin, Ill., shot at a cat and wounded his 8-year-old son. It is announced there will be no river and harbor bill reported at this session of congress. Leonidas Hubbard, editor of the magazine Outing, perished in the wilds of Labrador. Louis Fischer, a laborer in Chicago, has fallen heir to $250,000 by the death of his father. Evelin K. Bush, of Baltimore, became lost in a blizzard and all attempts to trace her have failed. A chemical explosion wrecked the building of the Bucklin Medical company in Chicago. A number of people had narrow escapes. At a fire in Brooklyn, N. Y., a fireman was killed by falling from a ladder. There is a serious uprising of the natives in Central Korea.

15. January 29, 1904 The Penn's Grove Record Penns Grove, NJ
Article from The Penn's Grove Record, January 29, 1904

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Cleveland Bank Fails. The Produce Exchange Banking Company, of Cleveland, Ohio, has closed its doors. The insolvency Court has appointed the Cleveland Trust Company receiver. The assets and liabilities of the bank are each placed at $1,500,000.

16. January 29, 1904 The Rice Belt Journal Welsh, LA
Article from The Rice Belt Journal, January 29, 1904

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Ohio Bank Closed. Cleveland, Ohio.-The Produce Exchange Banking Company, corner of Broadway and Central avenue, has closed its doors. The insolvency court has appointed the Cleveland Trust Company as receivers. The assets and liabilities are placed at $1,500,000 each.

17. February 4, 1904 New-York Tribune New York, NY
Article from New-York Tribune, February 4, 1904

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BANK CASHIER GETS TEN YEARS. Cleveland, Feb. 3.-George A. Rose. ex-cashier of the Produce Exchange Bank, who recently confessed to embezzling $187,000 of the bank's funds, was sentenced to-day by Judge Dissette in the Criminal Court to serve ten years in the penitentlary. The sentence was the extreme limit for the offence. With good behavior Rose can reduce his imprisonment to six years and four months. As a result of Rose's speculations, the Produce Exchange Bank was thrown into the hands of a receiver and the doors closed. Rose confessed that he had been using the bank's money for eight years in speculation.

18. February 5, 1904 The Newark Journal Newark, AR
Article from The Newark Journal, February 5, 1904

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IC4 A the Fire at Springfield, Ill., which originated in a lumber yard, destroyed business property valued at $75,000. A movement has been started at Atlanta, Ga., for the erection of a monument to the late Gen. John B. Gordon. Many members of the theatrical profession have been forced to seek other means of earning a living by the closing of Chicago theaters. A bill has been introduced in the lower house of congress giving a pension of $12 per month to every surviving union soldier of the civil war. Fire at San Antonio, Texas, destroyed store of the L. Wolfson. mammoth The department building and stock were valued at half a million dollars. The Japanese legation at Washington has received numerous apventuresome plications from Americans for commissions in the Mikado's army. All railroads centering in Chicago, have decided to forbid passengers to ride on freight trains, whichewill be a hard blow to commercial travelers. The Japanese have landed over 14,000 troops at a strategetic point and threatens to seize Korea at the first demonstration of actual war on the part of Russia. / The coroner's jury, after an in vestigation lasting several weeks, has placed the blame for the Iroquois theater disaster at Chicago on the managers and builders. 1 The Produce Exchange bank at Cleveland, Ohio, has suspended, and G.A. Rose, the cashier, has been indicted on the charge of squandering $150,000 of the bank's funds. The little town of Moundsville, Ala., was almost completely wiped out by a cyclone. Five white people and thirty-two negroes were killed and over 100 injured. The town is located on the Alabama Great Southern railroad. The storm struck about midnight, and'à heavy rain following prevented the rescue work for some time. Fire in the Masonic Temple in Chicago caused a panic among the 4,000 occupants of the building, and damaged the stock and fixtures of tenants to the extent of $20,000. All occupants of the building escaped without serious injury through the bravery of their elevator men, who remained at their posts, operating their cars while dense clouds of smoke filled the building. The urgent deficiency appropriation bill reported to the house carries a total of $11,251,308, based on estimates of the various departments aggregating $12,488,209. Some of the larger items in the bill are: $2,000,000 for armament and armor for new ships; $200,000 for the naval station at Guantanamo, Cuba; $100,000 for Alaskan boundary survey; $570,000 for construction of a new office building for the house of representatives; $145,000 for mileage for members and senators: $300,000 for rural free delivery, and $2,400,000 for collecting the customs revenues. The Mississippi legislature has re-elected United States Senators Money and McLaurin. The republican state central committee of Tennessee has indorsed President Roosevelt's candidacy. The United Mine Workers have

19. January 6, 1905 Middlebury Register Middlebury, VT
Article from Middlebury Register, January 6, 1905

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Business Failures Jan. 11-Auburn (Ind.) Farmers' bank. 16-Mt. Ayr (la.) Citizens' bank; $450,000. 22-Cleveland (O.) Produce Exchange bank and branches at Belford, Hudson and Defiance. 23-Elkhart (Ind.) Nat. bank. BO-New York, A. B. Baxter & Co., cotton brokers; $2,000,000. Feb. 2-New Orleans, Kirby Lumber Co. and Houston Oil Co. Clarksburg (W. Va.) Traders' Nat. bank. 9-McGruder (Tex.) Citizens' Nat. bank. 10-New York Equitable Nat. bank Bank of Dunn, N. C. 11-Syracuse (N. Y.) Exchange Nat. bank; $500,000. 15-Pella (Ia.) Savings bank. 28-Opelika (Ala.) bank; $150,000 Tanton (Mass.) bank: $600,000. Mar. 2-Le Sueur (Minn.) bank; $95,000. 11-Garden Grove and Coin (Ia.) banks. 18-Daniel Sully, New York cotton king; $17,000,000. 21-Lonaconing (Md.) Savings bank. 22-Riverside (Cal.) bank E. O Miller, banker, Providence, Ia National bank of Holdenville, Ind. T., suspends operations. 81-Union Trust, Boston: $1,600,000 Federal Trust, Cleveland: $1,000,000. Apr. 4-Capital Nat. bank, Guthrie, Okla.; $1,033,000 W. B. Mack, New York.