19822. Commercial & Savings Bank (Racine, WI)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
savings bank
Start Date
September 17, 1914
Location
Racine, Wisconsin (42.726, -87.783)

Metadata

Model
gpt-5-mini
Short Digest
7350ae81c8c5edb0

Response Measures

None

Description

The Commercial & Savings Bank in Racine closed its doors in mid-September 1914 (articles give Sept. 17–18). Reports cite large decreases in deposits, heavy withdrawals and inability to collect or call large loans; stockholders later alleged large loans on worthless paper wiped out capital. The bank was closed by the state banking commissioner and did not reopen as promised, with later proceedings (bank claims in bankruptcy appearing in 1915). Thus a run/large withdrawals preceded suspension and the bank remained closed (failure).

Events (4)
1. September 17, 1914 Run
Cause
Bank Specific Adverse Info
Cause Details
Large withdrawals combined with inability to call in large loans; later allegations of large loans on worthless paper wiping out capital.
Measures
Bank closed doors; issued statement assuring solvency and called state bank examiner.
Newspaper Excerpt
taken this precautionary measure because of the large decrease in deposits, the inability to call in the larger loans, heavy withdrawals and close collections.
Source
newspapers
2. September 18, 1914 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension/closing by state banking commissioner attributed to heavy withdrawals and inability to call large loans; subsequent investigation alleged massive bad loans wiped out capital and surplus.
Newspaper Excerpt
The Commercial and Savings Bank closed here today. ... The announcement declared that the bank had taken this precautionary measure because of the large decrease in deposits ... Assurance was given that there was no danger to depositors and that the bank was solvent.
Source
newspapers
3. December 15, 1914 Other
Newspaper Excerpt
Stockholders ... agreed to contribute to a fund to engage expert accountants and attorneys to make a complete investigation of the affairs of the bank which closed Sept. 17 ... promised that the bank would reopen Nov. 9 and then Nov. 16. ... ascertain why large loans were made on alleged worthless paper that caused the wiping out of nearly $700,000 capital and surplus.
Source
newspapers
4. June 24, 1915 Other
Newspaper Excerpt
Referee in bankruptcy ... admitted claims of the Commercial and Savings Bank of Racine, totaling more than $283,000 ... evidence ... loans ... were the largest single factor in causing the bank to suspend.
Source
newspapers

Newspaper Articles (6)
1. September 19, 1914 The Fairmont West Virginian Fairmont, WV
Article from The Fairmont West Virginian, September 19, 1914

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Article Text

BANK AT RACINE CLOSES ITS DOORS. RACINE, Wis., Sept. 18. - The Commercial and Savings Bank closed here today. A statement issued late this afternoon gave the assets as $3,150,000 and the amount due deposi, or AND tors as $2,500,000. The announcement declared that the bank had taken "this precautionary measure" because of the large decrease in deposits, the inability to call in the larger loans, heavy withdrawals and close collections. Assurance was given that there was no danger to depositors and that the bank was solvent. The bank was organized in 1894 and the capital stock is given at $400,000. Two other financial institutions in the city are national banks. There has been no indication of a run on them as a result of the closing of the Commercial.

2. September 24, 1914 River Falls Journal River Falls, WI
Article from River Falls Journal, September 24, 1914

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Article Text

WISCONSIN NEWS Events of Interest From Many Parts of the State. RACINE BANK CLOSES DOORS Officials Assure Depositors Their Money Is Safe and Ask State Examiner's Aid. The closing or its doors to business by the Commercial and Savings bank at Racine caused somewhat of a sensation in financial circles but was productive of little general excitement. The officials in an announcement is. sued later declared that they had taken this precautionary measure because of "the large decrease in deposits, the inability to call in the larger loans, heavy withdrawls and close collections." Assurance was given that there was no danger to depositors and that the bank is in a solvent condition. The announcement stated that the state bank examiner had been sent for and that negotiations were under way which it hoped will result in procuring immediate relief. The bank was organized in 1894 and the capital stock is given at $400,000.

3. December 15, 1914 The Watertown Weekly Leader Watertown, WI
Article from The Watertown Weekly Leader, December 15, 1914

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Article Text

STOCKHOLDERS WANT PROBE Mass Meeting Gives Bitter Criticism of Racine Bank Before and After Suspension. Racine.-Stockholders of the Commercial and Savings bank, in a mass meeting, agreed to contribute to a fund to engage expert accountants and attorneys to make a complete investigation of the affairs of the bank which closed Sept. 17 with deposits of over $2,500,000. The stockholders declared that no concrete statement has been rendered them since the bank closed, either of officers or the state bank commissioner, although they were promised that the bank would reopen Nov. 9 and then Nov. 16. If the investigation now proposed is held back by any move, or attempts made to prevent inspection of books, then the courts will be appealed to for an order which will not only permit the examination of books, but the questioning of officers in order to ascertain why large loans were made on alleged worthless paper that caused the wiping out of nearly $700,000 capital and surplus. Some of the stockholders were most bitter in their remarks relative to the bank's affairs before and after its closing. An executive committee of six stockholders was appointed to arrange the plans for investigation.

4. December 18, 1914 Ladysmith News-Budget Ladysmith, WI
Article from Ladysmith News-Budget, December 18, 1914

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Article Text

STOCKHOLDERS WANT PROBE Mass Meeting Gives Bitter Criticism of Racine Bank Before and After Suspension. Racine.-Stockholders of the Commercial and Savings bank, in a mass meeting, agreed to contribute to a fund to engage expert accountants and attorneys to make a complete investigation of the affairs of the bank which closed Sept. 17 with deposits of over $2,500,000. The stockholders declared that no concrete statement has been rendered them since the bank closed, either of officers or the state bank commissioner, although they were promised that the bank would reopen Nov. 9 and then Nov. 16. If the investigation now proposed is held back by any move, or attempts made to prevent inspection of books, then the courts will be appealed to for an order which will not only permit the examination of books, but the questioning of officers in order to ascertain why large loans were made on alleged worthless paper that caused the wiping out of nearly $700,000 capItal and surplus. Some of the stockholders were most bitter in their remarks relative to the bank's affairs before and after its closing. An executive committee of six stockholders was appointed to arrange the plans for investigation.

5. January 7, 1915 The Telegraph-Courier Kenosha, WI
Article from The Telegraph-Courier, January 7, 1915

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Article Text

SEPTEMBER. 1-Fall primary election held in Ke nosha county. Miss Esther Melaas named as teacher of Kenosha open air school. "Under the Mistletoe Bough" given by Kenosha children. Racine police defeat Kenosha police in revolver target duel. 2-Marriage of Miss Margaretta Davis and Henry W. Knapp. Glady's Nelson wins honor as champion 4y swatter of Kenosha. 3-Cardinal Della Chiesa named as leader of the Roman Catholic church takes title of Pope Benedict XV. 4-B. Kagzniski commits suicide by shooting. Death of Mrs. Anna Ludwig. 5-National Polish Bible Students association hold annual convention in Kenosha. Marriage of Mrs. Alice B. Utter and Walter H. Blood. Marriage of Miss Helen Kellman and Robert Zimmers. Trees uprooted by great storm block Kenosha streets. Marriage of Miss Sue Dawson and W. D. Sydn celebrated in Denver, Colo. 6-Angelc Tenuta electrocuted when he touched lamp chain. Marriage 6 Miss Glendora Barnes and Alwin M Eckert. 7-Death of LaFayette Cook, pionee of Somers. Kenosha has annual obser\ ance of Iabor day. 8-John B. Maloney resigns as presi dent of the school board and joins the high school teaching force. Alber Tanck elected president of school card. 9-Marriage of Miss Ellen Runals and John L. Todd. 10-Marriage of Miss Margaret Start and John Rose. 11-Mr. and Mrs. John Morrow ar. ersted on charge of attempting to extort money from J. A. Foster of Salem. Herman Raether meets death in fall at Racine. 12-Agner H.ffman paroled in municipal court escapes from home of Mrs. Hans Harbert. Miss Harriet Jean Rob+ inson named as superintendent of the Kenosha hospital. James Ander: n defeats Malcolm Kehlor in final match for championship of Kenosha Country club. 13-High Lifes win City league championship. The Rev. Peter Stair appointed for another year as partor of Park Ave. M. E. church. 14-Continuation schools reopen for the year. Marriage of Miss Lora A. Rogers and Lewis J. Morin. 15-Police raid "Love Parlor" of Miss Clara Schultz on, north side and two women are sent to prisor. 16-Marriage of Miss Mabel Stahi and A. W. Fries. Marriage of Miss Loretta Smith and Frai k Ellison. Marriage of Miss Clara Goodwin and Aug. C. Janssen at Torrington, Conn. Frank B. Loomis suicides with gas at Brassville hotel. Marriage of Miss Gladys Tipmore and Theowald Pedersen. Death of Miss Anna Gillett. 17-Burglars make rich haul at sa loon of Emil Schultz at Russell. 18-Commercial and Savings Bank in Racine closed by the state tanking commissioner. Dr. John B. Spalding is named in a breach of promise suit brought by Miss Karla Augustine. Archibald Collins, Oxford graduate, released after spending three mo the in the county jail. 19-Kenosha has notable peace dem. onstration. Chicago fails to turn out. City club starts movement to secure probation officers for juvenile court fotlowing an address by Judge C. E. Ran-

6. June 24, 1915 The Telegraph-Courier Kenosha, WI
Article from The Telegraph-Courier, June 24, 1915

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Article Text

# Referee in Bankruptcy After # All Day Hearing Allows # Racine Bank's Claim. # BALANCES AND OVERDRAFTS Creditors of the United Refrigerator Company got a bad bump in Racine late Thursday afternoon when after an all day hearing the referee in bankruptcy decided to admit the claims of the Commercial and Savings Bank of Racine, totaling more than $283,000, and the bank will share with the other creditors the meagre assets of the bankrupt. Trustee Rowland strongly contended that the bank had no valid claims and it was asserted that the claims had been settled by the turning over of collectable accounts. Evidence showed that the notes for which the collectable claims had been given as collateral were not covered by the claims made against the bankrupt by the bank officials. W. H. Doty of Kenosha, bookkeeper for the bankrupt firm, was on the stand the greater part of the day, and through him an attempt was made to show the various transactions which involved loans, and which the records indicate were the largest single factor in causing the bank to suspend. That the system of book-keeping by the bank at times showed a large discrepancy between the amounts to the credit of the Refrigerator company was one of the features of the examination. Mr. Doty testified that on September 30, 1914, the books of the bank showed a credit of $544.55 for the Refrigerator company, while the books of the Refrigerator company indicated that all it had was an overdraft on the same day of $183,544. The explanations of the various discrepancies were vague and the attorneys representing the bank and the trustee for the Kenosha company frequently clashed as to the correctness of statements by the witness. He was not very positive at times, being compelled to ask help from one of his assistants in regard to transactions which he had not personally handled. Mr. Doty admitted that he was not fully conversant with all the loans. Peter B. Nelson at times made the loans and did not keep his bookkeeper advised of their character. John B. Simmons, of Simmons and Walker, attorneys for the banking commissioner, entered an objection to statements made from the books of the Refrigerator company saying they merely showed how the books were kept. C. C. Gittings, attorney for the trustee of the Refrigerator company, retorted that while that might be so, the books of the Commercial and Savings Bank were no criterion of how the bank was conducted. A statement from the Commercial and Savings Bank on July 31, 1913, showed that the Refrigerator company had a balance of $40,458.80. The books of the company showed on that date it was overdrawn $48,362.42. Of all the testimony taken, the attorney for the trustee of the Refrigerator company had failed to prove his contention that the Commercial and Savings Bank claim is not valid. Employes of that company while testifying do not deny that large sums were borrowed from the bank, and not from Charles R. Carpenter, as an individual.