17553. Citizens Savings Bank (Lorain, OH)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
March 31, 1905
Location
Lorain, Ohio (41.453, -82.182)

Metadata

Model
gpt-5-mini
Short Digest
53620e51

Response Measures

None

Description

Bank closed (did not open) and was placed in hands of an assignee/receiver after discovery of large embezzlements by three employees (~$90k–$100k). Several hundred depositors assembled but no sustained run on other banks is described. Articles consistently date the closing/assignment March 31/April 1, 1905. I corrected minor OCR variations of 'Lorain'/'Loraine'.

Events (2)
1. March 31, 1905 Receivership
Newspaper Excerpt
placed in the hands of a receiver by the direction of the court last night / T. F. Fancher as assignee
Source
newspapers
2. March 31, 1905 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Decision to close resulted from defalcations/embezzlement by three employees (cashier and two clerks); shortage reported about $90,000–$100,000 (some reports $97,000).
Newspaper Excerpt
This bank is closed for business. The affairs of the bank have been placed in the hands of T. F. Fancher as assignee.
Source
newspapers

Newspaper Articles (14)
1. March 31, 1905 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, March 31, 1905

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FUNDS STOLEN BANK IS CLOSED Citizens' Savings Bank at Lorain, Ohio, Looted by Three Trusted Employes TO AMOUNT $90,000 THEFTS The Institution Placed in the Hands of an Assignee Today and Depositors Notified of the Suspension-Defaulting Employes to Make Some Restitution. Lorain, O., March 31.-The follow. ing notice was posted on the door of the Citizens' Savings bank today: "This bank is closed for business. The affairs of the bank have been placed in the hands of T. F. Fancher as assignee." The capital of the bank was $50,000; resources, $379,849; individual deposits. $313,949. The decision to close the bank was reached by the directors after a long session last night. While the directors were extremely reticent it is known the closing resulted from defalcations by three of its employes, and that the sum taken aggregates $90,000. President Honecker stated today the defaulting employes agreed to turn everything of value they possed to the bank.

2. March 31, 1905 The Seattle Star Seattle, WA
Article from The Seattle Star, March 31, 1905

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LORAINE, O., March 31.-President Honecker, of the Citizens' Savings bank, which was placed in the hands of a receiver by the direction of the court last night, announced today that the defaulting employes had agreed to turn everything of value in their possession over to the bank. It is stated the sum taken aggregates $90,000. Several hunded depositors, mostly foreigners, assembled in front of the bank today. The deposits amounted to $213,000. The directors say that the depositors will receive exery cent.

3. March 31, 1905 The Spokane Press Spokane, WA
Article from The Spokane Press, March 31, 1905

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(Scripps News Association.) LORAINE, O., March 31.-President Honecker of the Citizens' Savings bank, which was placed in the hands of a receiver by the decision of the directors last night, announced today that defaulting employes had agreed to turn everything of value

4. March 31, 1905 East Oregonian : E.O Pendleton, OR
Article from East Oregonian : E.O, March 31, 1905

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DEPOSITORS WILL BE PAID. President of Loraine Savings Bank Says $90,000 is Missing. Loraine, O., March 31.-President Honecker, of the Citizens' Savings bank, which was placed in the hands of a receiver by a decision of directors last night, announced today that the defaulting employes had agreed to turn over everything of value in their possession to the bank. He stated that some one had taken an aggregate of $90,000. Several hundred depositors assembled in front of the bank today, mostly foreigners. The deposits amounted to $313,000. The directors say that the depositors will receive every cent.

5. March 31, 1905 Daily Press Newport News, VA
Article from Daily Press, March 31, 1905

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OFFICIALS SPECULATED. Wherefore the Citizens' Savings Bank of Lorraine Must Suspend. (By Associated Press.) LORRAINE, O., March 30.-At a meeting of the directors and counsel of the Citizens' Savings Bank it was decided that the bank should not open for business in the morning. Ex-Mayor W. B. Thompson, counsel for the bank, is authority for the statement that the bank's liabilities will probably exceel its capital stock and surplus. The capital is $50,000 and the surplus' $13,000. Three officials of the bank are named as being responsible for the shortage and speculation in stocks is given PS the cause for their using the bank's money.

6. April 1, 1905 Ottumwa Tri-Weekly Courier Ottumwa, IA
Article from Ottumwa Tri-Weekly Courier, April 1, 1905

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BANK LOSES THOUSANDS DEFALCATIONS BY EMPLOYES OF INSTITUTION AT LORAINE, O., CAUSE SUSPENSION. Lorain, Ohio, March 31. - The following notice was posted on the door of the Citizen's Savings bank today: "This bank is closed for business. The affairs of the bank have been placed in the hands of T. F. Ancher as assignee." The capital of the bank is $50,000, resources $379,849 and individual deposits, $313,949. The decision to close the bank was reached by the directors after a long session last night. While the directors are extremely reticent it is known that the closing resulted from defalcations by three of its employes and that the sum taken aggregates $90,000. President Honecker stated today that the defaulting employes had agreed to turn over everything of value that they possessed to the bank.

7. April 1, 1905 The Guthrie Daily Leader Guthrie, OK
Article from The Guthrie Daily Leader, April 1, 1905

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BANK EMBEZZLERS ARRESTED. Charged With Causing Suspension of An Ohio Savings Bank. EIRia, O., April 1.-Cashier W. F. Kaneen, Assistant Cashier E. F. Walker and bookkeeper Dent Walker, charge1 with embezzling funds of the Citizens Sevings bank of Lorain, were placed m the county fail today. Later they were arraigned and held in beavy bonds.

8. April 4, 1905 The Stark County Democrat Canton, OH
Article from The Stark County Democrat, April 4, 1905

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Bank Shortage Created No Run. Lorain, O., March 31.-Contrary to the expectation of the bankers of this city, the announcement of a shortage of $90,000 of the Citizens Savings Bank, at midnight last night and the closing up of the bank today did not create a run on any of the other banks of the city.

9. April 4, 1905 Twice-A-Week Plain Dealer Cresco, IA
Article from Twice-A-Week Plain Dealer, April 4, 1905

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HEAVY SHORTAGE CLOSES A BANK BUSPENSION OF FINANCIAL INSTITUTION IN LORAIN, O. IS DUE TO DEFALCATIONS Three Employes Charged with Stealing Nearly $100,000-Partial Restitution Made by the Accused. Lorain, O., April 1.-As the result of an aggregate defalcation of almost $100,000 by three employes, the Citizens' savings bank, the oldest concern in the city, has closed its doors. The decision was reached by the directors after a long session Thursday night. At the usual time for opening the doors of the bank Friday there were several hundred depositors on hand ready to draw out their money should the opportunity present itself. The crowd was made up for the most part of foreigners. Posted upon the door was a notice, which read: "This bank closed for business. The affairs of the bank have been placed in the hands of T. F. Fancher as assignee. (Signed) "THE DIRECTORS OF THE CITIZENS' SAVINGS BANK." The capital of the bank was $50,000; resources, $379,849; individual deposits, $313,949. The late C. T. Beckwith, of the defunct Citizens' national bank, of Oberlin, was president of the Citizens' savings bank here until five years ago. President Honecker, of the bank, stated Friday that the defaulting employes had agreed to turn everything of value they possessed to the bank. Mr. Honecker declared that he believed the depositors would receive every cent due them. One of the defaulting employes was under a bond of $20,000. It is understood that property of the value of probably $10,000 will be turned over by the men responsible for the wrecking of the bank. Not Caught by Mrs. Chadwick. Asked if the Chadwick operations were in any way responsible for the failure, President Honecker said: "You may state that the bank escaped Mrs. Chadwick completely, and that the closing of our bank is in no way traceable to anything like the Chadwick affair. Mrs. Chadwick came to see us and I talked with her, but she did not get any of our money." From authoritative sources it is learned that the exact amount of the shortage in the funds of the bank is $97,000. To offset this the three defaulting employes carried indemnity bonds in favor of the bank aggregating $40,000, and in addition have turned over real estate and other property to the bank to the value of $12,000, leaving the net loss to the institution $45,000.

10. April 5, 1905 Willmar Tribune Willmar, MN
Article from Willmar Tribune, April 5, 1905

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THREE EMPLOYES ROB OHIO BANK OLDEST INSTITUTION IN LORAIN FORCED TO SUSPEND BECAUSE OF DEFALCATIONS. SHORTAGE IS SAID TO REACH ALMOST $100,000 President Declares Clerks Have Made Partial Restitution-Says Failure Is Not Due to Operations of Mrs. Chadwick. Lorain, O., April 1.-As the result of an aggregate defalcation of almost $100,000 by three employes, the Citizens' savings bank, the oldest concern in the city, has closed its doors. The decision was reached by the directors after a long session Thursday night. At the usual time for opening the doors of the bank Friday there were several hundred depositors on hand ready to draw out their money should the opportunity present itself. The crowd was made up for the most part of foreigners. Posted upon the door was a notice, which read: "This bank closed for business. The affairs, of the bank have been placed in the hands of T. F. Fancher as assignee. (Signed) "THE DIRECTORS OF THE CITIZENS' SAVINGS BANK." The capital of the bank was $50,000; resources, $379,849; individual deposits, $313,949. The late C. T. Beckwith, of the defunct Citizens' national bank, of Oberlin, was president of the Citizens' savings bank here until five years ago. President Honecker, of the bank. stated Friday that the defaulting employes had agreed to turn everything of value they possessed to the bank. Mr. Honecker declared that he believed the depositors would receive every cent due them. One of the defaulting employes was under a bond of $20,000. It is understood that property of the value of probably $10,000 will be turned over by the men responsible for the wrecking of the bank. Not Caught by Mrs. Chadwick. Asked if the Chadwick operations were in any way responsible for the failure, "President Honecker said: "You may state that the bank escaped Mrs. Chadwick completely, and that the closing of our bank is in no way traceable to anything like the Chadwick affair. Mrs. Chadwick came to see us and I talked with her, but she did not get any of our money." From authoritative sources it is learned that the exact amount of the shortage in the funds of the bank is $97,000. To offset this the three defaulting employes carried indemnity bonds in favor of the bank aggregating $40.000, and in addition have turned over real estate and other property to the bank to the value of $12,000, leaving the net loss to the institution $45,000.

11. April 6, 1905 The Monticellonian Monticello, AR
Article from The Monticellonian, April 6, 1905

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minating at the Rough Riders' reunion at San Antonio, Tex., after which he will plunge into the wilderness and live next to nature for awhile. A Naples dispatch of the 2d inst. said that Secretary of State Hay, who arrived on the steamer Cretic, spent a portion of the day there and proceeded to Genoa, was feeling greatly improved by the trip. President William F. Potter of the Long Island railroad died in New York of cerebro spinal meningitis after month's illness Thirty pieces of old silver coins, the latest decipherable date being 1725, were found by Nicholas Goetzinger while digring fence postholes at Templeton, Ia. Rear-Admiral Robley D. Evans, "Fighting Bob," is at sea again, in command of the battleship squadron of the North Atlantic fleet. He has hoisted his flag on board the Maine. John McClintock, for many years a member of the band of Angel Dancers at "The Lord's Farm," near Park Ridge, N. J., where he was known as 'John the Baptist," committed suicide by shooting. Montague White, professor of oratory at Beloit (Wis.) college, was aceidentally drowned in Rock River. On the testimony of two former employes of the defunct Storey Cotton Co., of Philadelphia, Stanley Francis, accused of being one of the promoters, has been held for irial in the United States court, with bail fixed at $50,000. Frank Byers. of Harlan, Ia. a student n the University of Michigan at Ann Arbor, was drowned while canoeing the Huron river The coroner's jury at Collinsvile, III., In the case of the killing of Barney Vassalo by John Berta, returned a verdiet of justifiable homicide. as the killng was done in defense of his (Bera's) wife who was killed by Vassalo. Eight thousand people assembled in Convention hall at Kansas City, Mo. o hear the Metropolitan opera combany produce "Parsifal." Excursion rains were run from all neighboring cities to accommodate patrons. Francis McCord. son of the late millonaire James McCord, of St. Joseph, Mo., died unexpectedly at Asheville, N. C., of tuberculosis. The will and codicil of the late Mrs. Jane L Stanford have been admitted to probate in San Francisco. Outside of specific bequests covering $4,000,000 o relatives and $125,000 to various charitable institutions, the entire esate goes to the trustees of Leland Stanford, Jr., university. Lightning struck the flagpole on the public school building at Riverview. Kas., shattering the cupola and causng a panic among the 650 children who were playing in the school yard. A few were stunned and others hurt y flying bricks and splinters. Unfortunate speculation by the ashier is alleged to have been the ause of the failure of the Citizens' savngs bank of Lorain, O. The shortage amounts to $87,000. The cashier and wo others have been arrested on charges of embezzlement. The Chicago, Milwaukee & St. Paul Railroad Co. will build an extension from Chamberlain, S. D.. west through a Lyman county, S. D., opening up new region of rich, new lands. The date of sailing of the transport Manchuria for Manila, with Secretary of War Taft and party. has been changed from July 1 to July 8. in orler to allow some of the party to fill desired engagements. By the wreck of a west-bound Great Northern passenger train, just east of Basin, Mont., by the engine running into a slide. Engineer John Weber was killed and Fireman Davis severely inured. The passengers only received shaking up. J. Morgan Smith and wife, sister and brother-in-law of Nan Patterson, vere arrested in Cincinnati on a charge of conspiracy to murder Caesar Young, n New York. An additional indictment. charging conspiracy, has been returned against Nan Patterson. The dedication of the statue of Laayette. which was to have taken lace in Washington on July 4 of this rear. has been postponed till 1906, as he statue will not be ready in time. Upwards of 500 acres of forest and brairie west of Coshocton, O., has been swept by fire, doing an immense amount of damage. Mrs. Roosevelt, accompanied by some of her children and relatives, boarded the yacht Sylph at Jacksonrille, Fla. and will take a cruise for several days. Miss Alice is mistress of the White House ad interim. M. J. Hornsby, a young negro, who as appointed postal clerk at Yazoo, liss., complains that the white people f Yazoo will not permit him to work n the office. and have whipped and breatened to lynch him. Gov. Mickey of Nebraska has veoed. on constitutional grounds, the ill passed by the legislature outlawng the practice of Christian science. Gov. Joseph W. Folk of Missouri vas the guest of honor at the annual anquet of the Missouri Society of New York city at the Waldorf Astoria. is address was on "The Missouri

12. April 7, 1905 Perrysburg Journal Perrysburg, OH
Article from Perrysburg Journal, April 7, 1905

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THE LORAIN BANK FAILURE Three Officers of the Citizen's Savings Bank Stole $100,000 of Its Money. Lorain, O., April 1.-The Citizens' Savings bank did not open for business Friday. A notice saying the bank had assigned was posted on the door. President Isaac Honecker, of the bank, said that the closing was due to defalcations by Cashier E. F. Kaneen, Assistant Cashier H. B. Walker and Bookkeeper D. S. Walker. Kaneen admits that this is a fact. The shortage, according to both Kaneen and Honecker, will be nearly $100,000. Elyria, O., April 1.-The assignment of the Citizens' Savings bank, of Lorain, was made Friday by Attorney W. B. Thompson, representing the bank. T. W. Fancher, a director of the bank, was named as assignee by Probate Judge Hinman. In his statement to the court Thompson said the bank had $275,000 in deposits and $20,000 in real estate. Lorain, O., April 3.-Cashier Kaneen, Assistant Cashier H. B. Walker and Bookkeeper D. S. Walker, of the Citizens' Savings bank, who were arrested early Saturday morning on charges of embezzlement, were released on $8,000 bail for each after a. hearing before Justice Lord in the county jail at Elyria. Lorain, O., April 4.-A director of the Citizens' Banking Co. said yesterday that the total shortage in the finances of the wrecked bank would probably be much greater than at first estimated. He believes it will go to at least $130,000.

13. April 7, 1905 The Montgomery Tribune Montgomery City, MO
Article from The Montgomery Tribune, April 7, 1905

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sa Unfortunate speculation by the cashier is alleged to have been the cause of the failure of the Citizens' savings bank of Lorain, O. The shortage amounts to $87,000. The cashier and two others have been arrested on charges of embezzlement. The Chicago, Milwaukee & St. Paul Railroad Co. will build extension from Chamberlain, S. D. west through Lyman county. S. D., opening up a new region of rich. new lands. The date of sailing of the transport Manchuria for Manila, with Secretary of War Taft and party. has been changed from July 1 to July 8; in order to allow some of the party to fill desired engagements. By the wreck of a west-bound Great Northern passenger train. just east of Basin, Mont., by the engine running into a slide, Engineer John Weber was killed and Fireman Davis severely injured. The passengers only received a shaking up. J. Morgan Smith and wife, sister and brother-in-law of Nan Patterson, were arrested in Cincinnati on a charge of conspiracy to murder Caesar Young, In New York. An additional indictment, charging conspiracy, has been returned against Nan Patterson. The dedication of the statue of Laayette, which was to have taken place in Washington on July 4 of this rear, has been postponed till 1906, as he statue will not be ready in time. Mrs. Mary Brockwell, whose three children died at Paducah, Ky., under mysterious circumstances, has con(essed that she gave them morphine and coal oil. Gov. Frazier of Tennessee, who was elected senator to succeed Senator Bate, deceased. has resigned the governorship and Speaker Cox has been worn in as governor. Ambassador McCormick had a farewell audience with the ezar at Tearskee Selo, and will proceed at once to Paris. A tornado struck Louisburg. a small own in the western part of Minnesoa. Two persons are said to have been cilled and a number injured. Upwards of 500 acres of forest and rairie west of Coshocton, O., has been wept by fire, doing an immense mount of damage. The Italian ambassador is endeavorng to interest the American governnent in the international agricultural ongress to be held in Rome under the atronage of the king of Italy. M. J. Hornsby a young negro. who 10 cherk prosed permodde SUA Miss., complains that the white people if Yazoo will not permit him to work pue paddjum DAUQ puu compo 941 u hreatened to lynch him. President Roosevelt has Issued his proclamation to the nations of the world Inviting them to participate in the celebration at Jamestown, Va., and in adjacent waters, the three hundredth anniversary of the birth of the American nation through the first settle-

14. January 10, 1906 Willmar Tribune Willmar, MN
Article from Willmar Tribune, January 10, 1906

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Business Failcres Jan. 3-First national bank of Faribault, Minn., closed; receiver appointed. 9-Brott cotton mills, Massachusetts, capital $1,200,000. 23-Strauss-Green Co., Toledo, O.; liabilities $115,000, assets $100,000. 27-Standard Rope & Twine Co., N. Y., for $12,000,000. 29-Pan-American bank, Chicago; assets $17,200, liabilities $75,900. Mar. 5-Arnold Brewing Co., Saulte St. Marie, Mich.; liabilities $85,000; assets $65,000. 6-Spartansburg, Pa., bank; capital, $25,000. 7-Coe Co., Minneapolis; liabilities, $200,000. 31-Citizens' bank, Lorain, O., as result of defalcation. Apr. 3-Ladoga, Ind., bank; assets $80,000, liabilities $109,000. 16-Owosso, Mich., private bank closes. 23-Merchants' Trust Co., New York, closed. 24-Canton, O., state bank closes Lexington, Okla., First national bank fails. 26-Barberton, O., First national bank 27-R. H. York & Co.. old Cleveland, O., brokers; liabilities, $40,000. Jun. 2-Ladysmith, Wis., First national bank closed. 19-Fyfe & Munson, Chicago, placed in receiver's hands. 21-City Trust Co., Philadelphia, closes doors. 23-Vicksburg, Mich., exchange bank. 26-Knight, Donnelly & Co., Chicago. 28-Terre Haute, Ind., national bank closed doors. Jul. 5-Spring Valley, Ill., and Toluca, Ill., national banks close. 6-Hagerstown, Ind., Commercial bank; liabilities. $125,000. 13-Citizens' bank, Yellow Springs, O.; liabilities, $50,000. 19-Spring Valley, O., bank closes. 20-City national bank, Kansas City, Mo. Aug. 3-West Liberty, Ky., bank closes. 10-Four Denver, Col., Western bank officials' arrested on fraud charge. 21-Western bank, Louisville, Ky.; due to overloans. Sep. 19-Minot, S. D., national bank closes doors. 27-Johnson & Sloan, Minneapolis, Minn.; liabilities, $200,000 First national bank, Orville, O., closes doors. Oct. 6-Peoria (III.) national bank closes because of Dougherty indictments. Nov. 1-Kingfisher (Okla.) national bank closed by comptroller of currency. Dec. 18-John R. Walsh's three banks in Chicago. Chicago National, Home Savingsand Equitable company in liquidation. Local clearing house guarantees payment of $26,000,000. Public and private accounts involved. 27-Merchants Trust company, American Savings bank and Mechanics Savings bank, Memphis. Tenn., close doors; first named in liquidation.