Brainerd State Bank (Chicago, IL)

Episode Information

Episode UID
2040371578
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
204037 routing
Routing Number
2-0403
Start Date
June 9, 1931
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
e67d19265e9d22ee

Response Measures

None

Events (3)
1. June 9, 1931 Run
Cause
Local Banks
Cause Details
Heavy withdrawals following the closing/suspension of several other Chicago neighborhood banks.
Newspaper Excerpt
Closing of the Bain banks followed the suspension of business at six other neighborhood banking institutions yesterday. Heavy withdrawals were made on the banks...
Source
newspapers
2. June 9, 1931 Suspension
Cause
Local Banks
Cause Details
Closed (suspended) due to heavy withdrawals triggered by failures/closings of other local banks.
Newspaper Excerpt
Twelve outlying Chicago banks... were closed today because of 'heavy withdrawals following closing of several other Chicago banks.' The banks which closed today are ... Brainerd State Bank
Source
newspapers
3. July 16, 1931 Receivership
Newspaper Excerpt
Gilruth Appointed Bain Bank Receiver... for the twelve banks the John Bain chain, all of which closed. Mr. Gilruth... will establish headquarters West Englewood Trust and Savings Bank ... each will be obliged to liquidate and meet individually.
Source
newspapers

Newspaper Articles (4)
1. June 9, 1931 The Washington Times Washington, DC
Article from The Washington Times, June 9, 1931

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Article Text

HEAVY DRAIN ON DEPOSITS BLAMED Bain Institutions on South Side Have $15,860,000 e in "Vaults; 6 Closed Yesterday CHICAGO, June 9 (I.N.S.). I welve outlying Chicago banks, In all of which John Bain, financial leader, is chairman of the board, were closed today because of "heavy withdrawals following closing of several other Chicago banks." The 12 banks, as of record March 25, have total deposits of $15,860,000, total cash resources of $1,239,000, and total capital, surplus and undivided profits of $6,306,737. 6 Closed Yesterday Closing of the Bain banks followed the suspension of business at six other neighborhood banking institutions yesterday. Heavy withdrawals were made on the banks in spite of the statements of financiers that two huge mergers of downtown banks, accomplished early yesterday, had "cleared up" the banking situa. tion in the city. The banks which closed today are Armitage State Bank, Auburn Park Trust and Savings Bank, Brainerd State Bank, Bryn Mawr State Bank, Chatham State Bank. Chicago Lawn State Bank, Elston State Bank, Ridge State Bank. Stony Island State Savings Bank. West Englewood Trust and Savings Bank. West Highland State Bank and the West Lawn Trust and Savings Bank. All On South Side All of the institutions are on the South and Southwest Side. Dramatic action by officers was necessary to check runs at one or two other neighborhood banks this morning. The State Savings Bank and Trust Company, which was an affiliate of the Foreman group. today was acquired by the Liberty Trust and Savings Bank.

2. July 16, 1931 South-Side News Chicago, IL
Article from South-Side News, July 16, 1931

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Article Text

Gilruth Appointed Bain Bank Receiver Will Establish Headquarters West Englewood Trust and Savings Bank State Auditor Oscar Nelson has pointed Gilruth, 100 for the twelve banks the John Bain chain, all of which closed Mr. Gilruth, after posting $1,700,000 that headquarters the will be established the West Trust and Savings bank, 1620 West 63d street, most easily accessible of the chain. has further been announced that for the banks will appointed that each will obliged liquidate and meet individually. Mr. Gilruth, statement made Monday, liquidation proceedings group will ready for presentation court by the He stated that until then no assets what found the closed institutions by State Auditor Nelson be made public. The Bain banks listed assets claimed deposits closed. The banks this group Armitage State bank, Auburn Park Trust Savings bank, Brainerd State bank, Bryn State bank, Chatham State bank, Chicago Lawn State bank, State bank. Ridge State bank, Stony Island Savings bank, West Trust Savings bank West Highland State bank and Lawn Trust Savings bank.

3. August 20, 1931 Chicago Tribune Chicago, IL
Article from Chicago Tribune, August 20, 1931

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Article Text

OPEN BAIN BANK BOOKS TODAY IN HUNT FOR FRAUD Swanson Accountants to Search Records. (Picture on back page.) State's Attorney search for of the state banking in the management of the de funct Bain banks will begin today. Henry E. Ayers, banking specialist of the state's staff, will em bark this morning on study of the records of the original Bain bank. the West Englewood Trust and Savings, at 1624 West 63d street, where John Bain made his start as financier 25 years ago and where the Bain bank receiver. Irwin T. Gilruth, now has headquarters. All Records to Be Searched. Finishing there, the and his will from bank to bank of the Bain group on the south and the twelve institutions the chain have been examined. Estimates were that the investigation would require many weeks. mode of the work the and receiver in order to expedite the investigation was agreed upon at a conference yes terday between Mr. Ayers and Mr. Gilruth. They talked for and half behind closed doors in Mr. Swanson's downtown office. Chatting afterwards with reporters, Mr. Ayers expressed himself as being gratified with the Mr. Gilruth had extended him. His remarks were taken to indicate a healing of the breach between and as Tuesday when Mr. Swanson tartly criticized State Auditor Oscar Nelson and the various bank receivers for "lack of Produces Some of Records. Mr. Gllruth some of the Bain bank records here with him,' Mr. Ayers. We discussed the said condition of the Bain banks generally Thus there appears to be no far dence of criminal violations of the bank act in those banks. Receiver Gilruth broke in at that point. of that my published report on the Bain banks made charges of criminal acts against any one,' he cautioned the reporters. During the day new light was cast the origin of the report, wherein Mr. Gilruth the $2,000,000 indebtedness of the Bain to the banks, thus precipitating the state's investigation. The receiver' purpose in issuing it had puzzled many Purpose of Report Revealed. From reliable was learned that preparation and of the report was by Auditor Nelson personally. His purpose, it is understood, was to acquaint Mr. Bain's friends with the seriousness of his plight on the theory that they would be produce cash to meet his debts to the banks, thus providing for the deposito Mr. Bain has been for 15 years of the south park board and wheel horse in the Deneen Republican organization. From an individual high in the councils of the Deneen It was learned that some of the banker's wealthy friends have at least taken cognizance of the state auditor's broad hint. There has been some discussion of raising fund to meet Mr. Bain's debts," this informant said. In other times it could have been done, but cash is scarce right now. among the so called There is talk of plan of Mr. to take over and his real holdings, but this too may come to naught.' Several hundred depositors of the Brainerd State bank, a Bain Institution. met last night in hall at 8656 South avenue to elect depositors' committee. Considerable stormy talk developed the merits of Mr. Bain's claim that with careful administration by the receiver," the banks would pay off in full. Criticism was hurled Mr. Bain. Receiver Gilruth and Auditor Nelson, indiscriminately. The depositors elected committee comprising William Schmidt, vice president of the North Beverly Improvement association; G. F. Blaul, chairman of the directors of the improvement James Cunningham president of the association: S. Freel, president of the Brainerd association: Henry Altman, William and Joseph Balluff, Mr. Schmidt presided. Probe Waukegan Bank. Circuit Judge Ralph Dady of Lake county yesterday granted petition of State's Attorney A. Smith for grand jury investigation of the affairs of the Waukegan State bank. closed on June 18 with listed deposits of 000 and only $38,000 cash on hand. Auditor Nelson announced the closing of the Arlington Heights State bank of Arlington Heights. an institution with deposits of

4. June 22, 1932 Chicago Tribune Chicago, IL
Article from Chicago Tribune, June 22, 1932

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Article Text

TELLS HOW BAINS OPENED BANK ON BORROWED FUNDS Obtained $271,000 Loan to Start Brainerd State. How the Brainerd State bank was organized capital of $320,000. of which $271,000 was money borrowed from other Bain banks, was related yesterday at the trial of John Bain. former head of the chain of twelve banks. and his two sons and The four are charged with conspiracy to loot the banks. Besides this testimony William Leslie, brother of the elder Bain, told of many deals in which he and Bain sold property to the Bain banks at many times what it cost them. In the trial, which is being heard by Judge John M. O'Connor without a jury, the by Prosecutor Edwin Raber has been bitterly contested by Francis X. Busch, the defense attorney, who has demanded that every witness point out each specific in the 886 exhibits introduced by the state. Organized in 1928. The Brainerd State bank was or ganized Nov. 1, 1928, and was located at 8646 South Ashland Hiram B. Kadish, an testimony that the property was listed on the books as having cost $335,000. The purport of other testimony was that this was $200,000 in excess of the actual Miss Rodilia Hack. 8135 Throop street, bookkeeper for the West Englewood Construction company, who purchased 10 shares of Brainerd stock with money from another bank, the itemized costs of the building. The was owned by Eric F. Wiegel, partner with Bain in many deals and heavy borrower from the Bain banks. $160 Share for Stock Raber emphasized that the Brainerd stock cost $160 a share when the bank was organized. Busch, however, on showed that all but $47,490 of the capital stock had been in when the bank was closed June 1931. The prosecutor had the witness Leslie, who was vice of the Chicago Lawn State bank and director of two other Bain banks, tell of each specific piece of property he and Bain sold to the various banks. Cost price to them and sale price to the banks on four sites were given by Leslie as follows: Cost. Selling price. $ 65,000 115,000 200,000 72,000 96,000 20,000 65,000 What was your purpose in buying