Depositors State Bank (Chicago, IL)

Episode Information

Episode UID
2024471585
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
202447 routing
Routing Number
2-0244
Start Date
January 19, 1932
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
fba587f3dc6ea4ae

Response Measures

None

Description

Directors voluntarily closed the bank; a receiver is later referenced in coverage.

Events (2)
1. January 19, 1932 Suspension
Cause
Voluntary Liquidation
Cause Details
Directors voluntarily closed the bank to protect depositors after heavy withdrawals and inability to convert assets to cash.
Newspaper Excerpt
The Depositors' State Bank was closed today.
Source
newspapers
2. * Receivership
Newspaper Excerpt
the Judge Finnegan decision which ordered the receiver of the Depositors State bank to turn over list of bondholders to the equity owner.
Source
newspapers

Newspaper Articles (4)
1. January 19, 1932 Herald and Review Decatur, IL
Article from Herald and Review, January 19, 1932

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Article Text

DIRECTORS CLOSE CHAMPAIGN BANK Champaign AP The First National Bank of Champaign, which listed deposits in the recent bank call at $5,116,951. was voluntarily closed today by its directors. A smaller state bank. the Commercial, took similar action. Officers the First National said they hope to effect reorganization soon. N. M. Harris is president and H. S. treasurer of the University of Illinois, a vice president. Chicago-AP The Depositors' State Bank was closed today. It had $2,500,000 on deposit and capital and surplus of $400,000 and $250,000.

2. January 25, 1932 Kentucky Advocate Danville, KY
Article from Kentucky Advocate, January 25, 1932

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Article Text

HIS DEFEAT "SOMETHING MORE CREDTHAN VICTORIES" The following very interesting story, which tells of the glorious defeat former "Praying Colonel,' who seems to have come out of defeat victor, was given the Advocate by former Captain of the "Praying Colonels," Mr. Norris Armstrong, who played side by side Mathias, the subject of this sketch. Simultaneous with the above came along the story in latter from Edward Adams, of Chicago, who writes follows: Gentlemen: enclosing to you clipping from the Chicago Daily News of January 20th. Mr. Mathias has numerous friends in your city, and feel that in view of this fact the credit given him by the Daily News should be placed before the public in city where he your has connections. Appreciating in advance your help in this matter, Very EDWARD ADAMS. The Advocate appreciates the courtesy of both gentlemen. The story, related above is from the Chicago Daily News: square man, clean-cut, honest and conservative, went down in defeat in Chicago this week, amid the wreckof decade hard work. The age man is Mathias, president of the Depositors' State Bank, which closed Monday under conditions that, instead of discredit, reflect tual credit upon its officers and rectors. There was no run on the bank nor had its funds been misused in any way. There had been no speculation, and even the loans against real bete noire of many smaller banks, had been kept to msvryap small proportion of its total very sources. The institution administered in accordance with approved conservative practice. Hard times, unemployment, the genuine poverty that comes "back of the yards" when jobs. vanish, compelled the people of his district to withdraw funds which bank must depend. From deposits of $6,465,000 last March, Mr. Mathias paid out in cash, the deposits were withdrawn, near$4,000,000. Even after that was paid there still were sound assets more than sufficent to cover the remainder, but the latter could not be convertdirectly into cash the only fair step was to closs the bank and frain from accepting new money. At the time the institution closed posits had been paid down to approximately $2,500,000. In college days Mr. Mathias fullback on the famous Centre college football team, the Kentucky "praying colonels" that later humbled Harvard. During the world war he naval aviator. to Chicago in married here and worked his in the way up Depositors' State head of the new business department, assistant cashier, vice-president and finally president. Undaunted by the depression, he came to the rescue of the depositors of the Southwest State Bank, 5100 Ashland avenue, merging the latter when the banking situation grew tense last April. At that time his own deposits were more than ample and with those of the Southwest State amounted to nearly $8,000,000. The bank had been built up largely savings, however-it had $4,000,000 savings one when hard times came these were reduced. banker who has of his deposits in cash before closing and can show assets mainder seems entitled, in these hard times, to count his defeat, blow is, nevertheless something more creditable than many

3. January 29, 1932 Chicago Tribune Chicago, IL
Article from Chicago Tribune, January 29, 1932

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Article Text

NAME COMMITTEE FOR $13,000,000 IN REALTY BONDS George D. Hopkins Will Be Chairman. shortly BY AL CHASE Investors more than $13,000,000 bonds and mortgages estate issued by the positors' State and the State bank. was merged with the former last April at 47th street and South Ashland to be that a committee been organized protect their This was announced by George Hopkins, and assist D. ant [Root will who of the new The other members of the committee who have been Include John Jurik, former vice the board of directors of the Depositors' State bank; James A. Calek, vice president of the same institution. and Percival G. Hart, realtor. The auditor of public accounts will be in yited name fifth member. While the great majority of the bonds and mortgages issued by the two banks are in good standing. said Mr. Hopkins, encouraging have the work of reorganizing the debonds and mortgages so quick under way Will Require Patience. The Depositors State bn: closed hi order to protect depositors' interesta upon of the officers and directors of that stitution The mortgages and bonds sold by this bank constitute large sum. and this committee, as soon as possible will advise the holders of such securities as to their status. The Southwest State bank was taken over by the Deposifors' State bank last April. patience on the part of the bond and mortgage as some time will be required for the committee to familiarize itself with the various Issues and make its reccommendations. The committee has been pledged the assistance of the olders and directors of the bank and will selicit the ition of the auditor of public accounts.' The office of the new protective committee has been established at 6015 South Ashland avenue. Mr. Jurik has been secretary of the committee. The Trust and Savings bank has been named depositary. Tower Castles Issue. Walter C. Palmer, secretary of the bondholders protective han dling the Lackner, Butz & Co. $325,000 first mortgage bond Issue on the Tower Castles at the thwest corner of Sherman avenue and Noyes street, Evanston, last night made public further information on that project. Ho stated that the gross income from date of receiver's appointment on Feb 26 1930, to Dec. 31, was $85 485. The total were $83. These included $19,206 operating expenses, $4,000 fees for receiver, $8,700 for fees of solicitors for for liens, 550 payment to trustee, to be applied on indebtedness as fixed by decree of foreclosure, and $5,497 general taxes for 1929 The cash balance on hand on Dec. 31, was The on Dec. was per cent, Mr. Palmer The original Issue has not been reduced. The North Town bank from to April 13, the Chicago Title and Trust company acted in that capacity. Not on the Committee. In reporting the meeting of the bondholders of the Monroe and Wells building in yesterday's TRIBUNE It was stated that one of the eight appointed on protective committee was a representative of the Greenebaum status that this is not correct. was called by the owners of the property. he said. appointed is sponby them and we desire no representation on as we feel the terests of the will best looked after by our regular commit-

4. August 8, 1932 Chicago Tribune Chicago, IL
Article from Chicago Tribune, August 8, 1932

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Article Text

CO-OP OWNERS REFUSED LIST OF BONDHOLDERS Bank Receiver Smiles at Court Ruling. BY AL CHASE. Citing a recent decision of Circuit Court Judge Philip J. Finnegan that an equity owner has a right to know whom he owes, the twenty-one tenant owners of the Essex cooperative apartment building at the northeast corner of 76th street and Essex ave. nue, asked H. C. Vernon, receiver of the Woodlawn Trust and Savings bank, for list of bondholders. This was refused by Mr. Vernon who stated that it would be turned over to a bondholders protective committee composed of himself, the forfer president and two former directors of the closed bank. None of these, It is claimed, own any Essex bonds. The full amount of interest due on June 20 on the outstanding bonds, or $2,748. was on deposit in the Woodlawn Trust and Savings bank ready for payment when that institution closed. Wishing to preserve its equity, the tenant owners, organized as the Essex Building corporation, whose stockholders are the tenant owners, raised additional funds to meet interest payments. Cash Ready for Interest. Burke F. Ward, one of the tenant owners and secretary of the Essex corporation, announces that funds are now on deposit at the Northern Trust company and bondholders may obtain payment by application at his office at 2602 East 75th street. Mr. Ward, when asking Mr. Vernon, as receiver, for the bondholders' list in order to notify the owners of the bonds that cash was on hand for interest payments, told of the Judge Finnegan decision which ordered the receiver of the Depositors State bank to turn over list of bondholders to the equity owner. Mr. Vernon said that was ridieulous no such decision had been made or would be made," said Mr. Ward. His comment was: We've beaten a number of such cases.' I persisted that my information was based on fact. Dares Him to Try. His anewsr was: If you're so sure. why don't you get an attorney and try and get the list explained that was just what I was trying to avoid, expense, so that we might continue to pay our inter est, taxes and other running expenses: that had no desire to run up needless bills that in the end would only force us into foreclosure Mr. Ward stated that since the building was built the corporation has paid $6,400 annually on the principal: also interest, taxes, repairs, and all current expenses. The original mort gage of $130,000 has been reduced to $31,600. This was due in June, 1932 We fully expect to be able to re finance the building on favorable terms and we're anxious to save possible $7,000 or $8,000 expense on a bondholders' committee so that such an amount could be used for further amortization of the bonds and pay ment of taxes," said Mr. Ward. Taxes All Paid. Following is financial statement of the Essex for twelve months ending Jan. 1, 1932: INCOME From assessments Jan. 1931. to Jan. $21,051 Interest paid Taxes, paid full. coal decorating and all other expenses 4.470 Total expenses $13.791 Prepayments made on loan 6,400 Total Cash on hand Jan. 1. 1932 860 feel that the directors of the corporation. all responsible business and professional men, are entirely capable of being an officto bond. holders' committee to work out the present difficulties which were in no way the fault of the company," said Mr. The Essex was financed originally by the Woodlawn Trust and Savings bank. The directors of the Essex Building corporation are: Cecil W. Judd, president: Andrew Todd, treasurer; Burke F. Ward, secretary; James Fox and Herbert Miller.