22674. Capital City Bank (Madison, WI)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
November 10, 1931
Location
Madison, Wisconsin (43.073, -89.401)

Metadata

Model
gpt-5-mini
Short Digest
400ac219

Response Measures

Full suspension, Books examined

Other: State took over investigation, receivership and litigation with surety companies followed.

Description

Contemporary articles report heavy withdrawals/attempts to save the bank, negotiations to obtain loans, and then the bank's suspension/closing on Nov. 10-11, 1931. Subsequent reporting describes appointment of a receiver and legal action against surety companies. I classify this as a run leading to suspension and permanent closure (receivership).

Events (4)
1. November 10, 1931 Run
Cause
Bank Specific Adverse Info
Cause Details
Loss of confidence after large state deposits, withdrawals and insolvency concerns; state withdrawals and publicity about the bank's precarious condition precipitated heavy withdrawals.
Measures
Directors/state officials attempted to obtain a $150,000 capital infusion, sought loans, negotiations with annuity board and other banks; state treasurer drew down and redeposited funds; discussions of pooling by Madison banks to bolster Capital City.
Newspaper Excerpt
The Capital City Bank of Madison ... failed today
Source
newspapers
2. November 10, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
The bank suspended after heavy withdrawals and insolvency concerns tied to large state deposits and alleged overlimit deposits; inability to secure emergency loans and failure of negotiations with potential rescuers (annuity board chair refused loan).
Newspaper Excerpt
The Capital City Bank of Madison ... failed today
Source
newspapers
3. November 11, 1931 Receivership
Newspaper Excerpt
Claims against the Capital City bank must be filed by Feb. 20 ... the state holds bonds ... to cover deposits in the Capital City bank at the time it closed, Nov. 10, 1931 (articles discussing surety claims and legal action).
Source
newspapers
4. February 17, 1932 Other
Newspaper Excerpt
LaFollette named Benjamin C. Poss as special counsel to force the payment of surety bonds issued on state money deposited in the defunct Capital City Bank of Madison. Risser opened a John Doe probe into the bank's operations and subpoenas were issued for bank records and examiners' testimony.
Source
newspapers

Newspaper Articles (19)
1. January 6, 1931 The Capital Times Madison, WI
Article from The Capital Times, January 6, 1931

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Article Text

Stoughton body of STOUGHTON. Company's Stoughton Monday salesman bed Hotel dead his found to Anderson's Monday undertaking rooms after Coroner Campbell of had pronatural causes. due to nounced funeral arrangements other made pending the expected arrival on the dead man's Tuesday Johnson. from Bartelsville, Okla. Resumes Rehearsals having enjoyed vacation from November the Stoughcity resumed practicing Monday evening in for the coming open air concert which rule opens carly in June. By starting the period this early to have its repertoire the band expects of pretty well mastered by being held June. The rehearsals are the city hall. Miss Selma Burull spent Sunday in Madison with her niece. Miss Marion Burull employed the office of the Guardian Life Insurance company. Wilson Sun Prairie A. Wilson, who recently resigned manager of the Britting & Hixon Lumber Co.'s local yard. has accepted Chase Bros. lumber and fuel yard Sun Prairie. Mr. Wilson Sun Sunday and entered his new duties Monday. His family will join him after time. Baby Son Dies baby was born Mr. and Mrs. Alvin Everson the local hospital Sunday evening but the infant lived only half hour. It was Mr. and Mrs. an Everson's first child. Welcome Daughter From Edgerton word of the birth baby daughter to Mr. and Mrs. Gordon Voog that city which occurred last Friday at the Memorial hospital. Mrs. Voog was formerly Miss Elcanor Hansen and the younger daughter and Mrs. Elius Hansen this commuinty. This Mr. and Voog's first baby and also Mr. Mrs. first grandchild. Begins Collection City Treasurer Larson went to Monday after the tax receipt books and all set relieve taxpayers of shekels are due the city, Before went to he few payments for which he to be replaced later by the regular forms. Receipt No. made Severt Hellekve. 011 Giles night officer Peter Lee of Lake received No. cn his Turner Park cript No. was made out to John Park Cars Collide Bertram of Mr. and Borrud. his Pontiac Mrs. roadster badly late Saturday evening when Willis Orvold. Utica, also driving Pontiac roadster, crashed into him as was turning into the driveway at the Borrud home just of town Orvold and presumed the latter did the to the left to ahead of him swing car enter Both left fenders. the running board and part the hood Mr. Borrud's car were wrecked and the front axic Mr. Orvold's was damaged. suffer quite said. did not much damage but the front axle was Messrs. and Mmes. Gustav Torgeson, motored and John Quam, down Sunday Torgeson gradually from the effects with his the that Sunday before on Monroe Christmas. Collar Bone Breaks Rockford who man from A young companions was number terrior skating on Lake Kegonsa Sunday forefall in which he bad noon, broke his collarbone. He was Business taken to the Stoughton clinic where his to Drs. Horn FURNACE attended by injury 2336. and Schoenbeck. Celebrates 88th Birthday MACK'S of Sarah The 88th Birthday Rosendahl. old time of Stoughterns today, celewhich occurred brated ton, Sunday with family gathering PAINTING Dunkirk ave., at home 734 the which were present four of her five children and few old friends. din- KARL afternoon was served and the 8219 pleasantly spent in social chat. Besides the son and daughter. Oscar and ChrisLET ME tine live mother. Miss bish: Geda Rosendahl. superintendent of nurses at the hosattended the gather- ASHES pital in Mrs. Sven Grease did cleaned Rosendahl. ing Madison. Miss Rosendahl Monday afternoon. returned Chicago BADGER Waterworks Supt. S. Snyder, who has been under the weather for some bed at his now confined days. is and is reportPrairie home on with pneumonia. be threatened to Interview With M. Dahl of section the page New York Times last Sunday's Gerhard M. with Stoughton resident. Dahl. old time sentative which was written by Woolf. With the write-up is picture of Mr. Dahl. Few Stoughton people safe to say are aware that our former townsman second son of the late Rev. Times. and Mrs. Dahl, now practically the head what the Times article designates greatest munithe world" for in Experienced cipal system he the board directors of the Transit and the board the Interborough Rapid Transit. the big largest systems. Mr. Dahl graduate of the U. W. and 30 or more Help left Stoughton perhaps years Druliner years' training and MODERN Wisconsin corPARTLY Motors. DUPLEX perience office Write Commercial Ave 8:30 to poration. every day and Defendant. The Capital 2336. TAKE NOTICE. That and 4th Mon- THE TORCH PLEASE every 2nd EXPERIENCED. RESPONSIBLE STENOGdesires 59 and bookkeeper Housekeeping Rooms the exery Sunday rapher. cashier which judgment not Motors. position that notice Write Box SEE THESE TWO ATTRACTIVE ROOMS. other things provides Secretary. Excellent among Gerry. Rent creditors of Heat. light. be given Telephone The Capital Times. Your Ad in the hands of The Times Want Ad Robot is 3848 days. by publication. poration OF CHILD DURTAKE CARE said WANT TO creditors a torch, guiding and lighting the way into homes, time home. TWO and Second ing day to and telSteam light. gas the Visiting until the solution of your wants is found. The Times each NEEDS WORK OF 2217. WANTS Laundry privileges. filed day Knights cordially invited to attend all WOMAN ephone. which within any kind. Want Ad Robot works wonders. 1931. being LIGHT HOUSEFRONT ROOMS FOR thereof. and default Extrom. Commander 1314 sonable Geo. WOMAN WANTS WORK BY DAY OR Everything furnished. keeping. defendant corporaHenwood. Recorder. creditors the HOUR. Washington from benefits shall precluded tion the judgment made in this action LODGE NO. LIGHT HOUSEKEEPING SEVERAL ADDITIONAL DELIGHTFUL WILL TAKE Call Badger 2200 and Put Him to Stated held the First light. such Strictly modern. students high schools university hereinafter made and Third Thursdays each month Call heat furnished. No. 4th St. 6220. tribution coaching in Now desire the Temple Freemasonry. Corner pursuant ROOMS. NEAR this 22nd day of Wisconsin and East Johnson HOUSEKEEPING Dated COZY heat. ABILITY IS DE- 1930. YOUNG WOMAN OF R. Receiver Herein. Spohn. Ross for Receiver. Attorneys Dec. BEFORE THE RAILROAD COMMISSION WISCONSIN In Michael Tierney the Railroad Commisder WP-414 fixing near Lake the City Madison. Dane County Wisconsin. ORDER FOR NOTICE OF WHEREAS Michael Tierney has filed application for an the Lake Mendota at the normal Madison. Dane near the City of NOTICE IS HERENOW. UPON YOU hearing will Madison. Wisconsin. forenoon on January o'clock the which time and place appear present parties may may be and evidence testimony that of this ORDERED the once notice be in for and the Wisconsin the Capital newspapers published the City Madison. publica- Wisthat proof such consin. and the Commission on tion with said hearing. before the Wisconsin. this 9th Dated Madison. day of COMMISSION RAILROAD WISCONSIN Adolph Kanneberg By McDonald Porter Commissioners Wm. M. Dinneen 13 and 20. 1931. January 1931 Dec. First CREDITORS NOTICE Court Dane County OTT. DeEstate of KATHARINA In Re That the Notice Hereby Regular Term the the county. and said House the first county. will claims against Katharina Oft. late the City of Madison. in county. deceased. All claims for and althe Court House, the city Madicounty. the barred. Dated 1930. By the GEORGE KRONCKE. Judge. Sauthoff & Hansen. Attorneys. doaw First Insertion Jan. last Feb. 10, 1931 CIRCUIT FOR COUNTY NOTICE OF SALE Palmiter. Anton also known Trustee Estate: Mitchell First Naing corporation: Edgerton. Wisconsin. tional and Pomcorporation. croy Paint Defendants. BY VIRTUE of the titled action on the 18th day of Decemsheriff of Dane ber. State of ground front the the City of Madito the Court House Wisconsin. on the Dane 1931. o'clock day of February. day the real the forenoon directed sold and therein debe that part the Northwest quarAll OFFICIAL PUBLICATION (NW) of Section (12) Town Five lying the highway the cepting about thereof conveyed Thomas Green (being chains chains): that portion describAnd follows. Commencing the North margin said section thence Northeast(24) and running said North margin highway point six rods from the West section (23) and tions rods, East seventhence right angle North boundary North Section twenty-four said the boundary thence to thence South said section: line along the line section the the West the containing land more less, Terms 5th, 1931 Dated January FINN. FRED Blanchard Slage. Attorneys. Jan. 1931. Dec. 30: last First insertion NOTICE TO CREDITORS and Court. Dane State HALVERSON, Estate of MARTIN Re Deceased. GIVEN. That IS HEREBY NOTICE court the Regular Term the first Tuesday city the Court sidered Halverson the Halof the estate ministrator Madison in late the City verson county. deceased: said FURTHER GIVHEREBY NOTICE said That the Regular EN. to said court May. 1931. the Tuesday and Martin Halverson, against said Deceased: HEREBY FURTHER AND NOTICE IS claims for examiThat must presented and allowance to nation county court the Court House, county the city 29th day state. Dated By the GEORGE Judge. Gunderson. Attorney. Dec. First insertion 23: last Jan. 1931. STATE WISCONSIN CIRCUIT COURT DANE COUNTY KARL McMURRY PLEASE TAKE NOTICE That judgbeen herein has defendant Wisconthe assets the ing which said judgment sin Hatchery. Inc., provides that notice other things among shall said poration publication, creditors said exhibit parties limiting the this which claims may be filed that reasonJuly 1931. default crediable time. in defendant corporation the said shall tors be precluded from all benefits action the dissuch final hereinafter be tribution pursuant this 22nd day of Dated 1930. CAPITAL CITY BANK Receiver herein. BAGLEY SPOHN. ROSS STEVENS. Attorneys for Receiver. Dec. 23 doaw First insertion Dec. 16: last Jan. STATE OF WISCONSIN SUPERIOR DANE COUNTY COURT MRS. FANNIE WILLIAMSON, Defendants. THE STATE OF Said SUMMONED to YOU HEREBY twenty (20) days pear within the ice of this and the service. the Court action failure you according demand the the Clerk of the with the which file Defendants. of foreclosure virtue judgment By entitled the of December. the 27th tion on Dane sheriff front State Wisconsin. in door of the Main Street the Madison. February. 1931. consin. the 11th the forenoon o'clock real directed said to-wit: be follows (59) Clyde Lots One Hundred lagher's Replat and Hundred and (110) Eleven (111) Farwell's Madison, Dane the City cash. this of December, Dated Harald

2. January 27, 1931 The Capital Times Madison, WI
Article from The Capital Times, January 27, 1931

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OFFICIAL And excepting that portion describfollows. Commencing the North margin the East West highway on West line said section twenty-four (24) and running thence Northeaston said North margin point rods the section line tions (23) and thence North seventy rods. thence angle East seven(17) rods: thence right North the North boundary said Section twenty-four thence west the boundary said section: South along the line said the the East West highway the point beginning. containing ten (10) acres more Dane County. Wisconsin. Terms Dated January 1931. FRED FINN. Sheriff. Blanchard & Slage. Attorneys. Jan. doaw First insertion Dec. Jan. 27. 1931. STATE WISCONSIN CIRCUIT COURT DANE COUNTY KARL McMURRY NOTICE WISCONSIN HATCHERY, PLEASE TAKE NOTICE. That judghas been herein ing the assets the WisconHatchery. Inc.. which said judgment among other things provides that notice shall given creditors corporation publication. requiring said creditors exhibit their become this the time within which claims be filed 1931. that time. in default credithe defendent corporation shall benefits the made this action such reference tribution shall hereinafter be made Dated this 22nd day of December, 1930. CAPITAL CITY BANK Receiver BAGLEY. SPOHN. ROSS STEVENS, for Receiver. Dec. doaw First Dec. 30: last Feb. 1931 STATE OF WISCONSIN COURT FOR DANE COUNTY HARPER, OLUF OLSON. also known OLUF OLSON FRANCES wife, OTTO MADISON CEMENT STAVE SILO COMPANY. and CAPITAL CITY INDUSTRIAL LOAN B5 virtue of judgment of foreclosure sale, the entitled tion 27th day Dane State the front door the Court House. the City Madison. Dane County, the 11th February. 1931. o'clock forenoon that day, the real estate and mortgaged ises directed by said judgment sold, therein Clyde Replat of One Hundred Hundred Addition to the City Madison, Dane County, Wisconsin. Terms sale cash. Dated this 29th of 1030. Harald Smedal. Sheriff. Edward Reynolds. Plaintiff's Dec. doaw First insertion last 1931. NOTICE PROVE and NOTICE TO CREDITORS State Wisconsin. County Court. Dane Re Estate of GUSSIE ALEXANDER NOTICE HEREBY GIVEN, That the Regular the first March, Court House the city Madison. county Dane and state Wisconsin. there will heard and considered the application of Marie Alexander admit probate the last and Testament Gussie Alexander Boothe, late of the Town of and formerly Lynbrook, NasNew said deceased. for the executor, or, with Will anNOTICE HEREBY FURTHER GIVEN. That Regular said court be held said Court House, the first Tuesday June, 1931. there heard. considered and adjusted. all claims against said Gussie Alexander Boothe, DeNOTICE IS HEREBY FURTHER said court the House. and allowance the city Madison. county and before the day 1931, barred. Dated 13th. 1931. By the GEORGE KRONCKE. Judge. Sachtjen & Braathen. Attorneys doaw First Central Wisconsin corPlaintiff. Associated Motors, Inc., Wisconsin poration, Defendant. PLEASE TAKE NOTICE. That judging AssociatMotors, said judgment other things provides that notice given of said corporation publication. creditors said defendant corporation exhibit their claims become limiting the which claims filed that being sonable thereof, creditors the said defendant corporashall precluded from all benefits made in this action final order reference tribution shall bereinafter be made pursuant said judgment. Dated this 22nd day of December, 1930. First insertion Jan. last Jan. 27, 1931. NOTICE PROVE WILL and NOTICE TO CREDITORS State Wisconsin. County Court, Dane Estate GOTTFRIED LAUFENNotice Given. That the Regular the 1931, the House in the Madison. county state Wisconthere heard considered the John Laufenburg to admit probate the last Will and Testament Gottfried Laufenburg. late the town Berry in said county. deceased. and for the appointment executor: Given, That the said court the heard. adjusted. claims against Gottfried Laufenburg. deceased. And Notice Is Hereby Further Given, That claims examination allowance must be presented to court at the Court House, the city Madison. before the day of May, barred. Dated 12th. 1931. By the GEORGE KRONCKE. Judge. First Jan. last Feb. 1931. NOTICE FOR SETTLEMENT and Inheritance Tax Adjustment State Wisconsin. County Court, Dane Re Estate of GRIFFITH RICHARDS, Deceased. NOTICE IS HEREBY GIVEN, That the Regular Term County Court. be held in and for said county. at the Court House Madison, the first Tuesday March. 1931, heard, and adjusted The application of The Central Wisconsin Trust estate Griffith Richards, late City Madison. said county, defor the of its final count such executor which account on file said court. determination inheritance tax, and for the assignment the residue said those thereto. Dated 26th. 1931. By the GEORGE KRONCKE. Judge. Bagley Spohn Ross. Attorneys. doaw First insertion last Feb. 10, 1931. NOTICE NOTICE TO CREDITORS State Wisconsin. County. Dane In Re Estate of VALENTINE ROCCA, Deceased. Notice Hereby Given, That at the Regular Term court on the Tuesday of March. 1931, Court House the city Madison, county Dane state Wisconsin, there be heard and the probate Will and Testament Valentine Rocca. late city Madcounty. deceased, and for the appointment Notice Hereby Further Given, That the Regular Term court held said Court House. the first Tuesday June, 1931. claims against said Valentine Rocca, deAnd Notice Hereby Further Given. That and allowance presented said county court the Court city Madison. county and before 26th day barred. Dated January 1931. By the GEORGE Wegener & Roick, Attorneya. Jan. doaw

3. November 13, 1931 The Atlanta Constitution Atlanta, GA
Article from The Atlanta Constitution, November 13, 1931

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Atlanta Stocks In some cases on inactive securities. prices from other Furnished by Courts & Co. Hurt Building. New York Bank Stocks Market Leaders Investment Trusts Augusta Atlantic Spg BONDS. Consti Folly Georgia Corp Kinnett Serial Macon College 1st Serial NEW YORK. Following IN CLOSING HOUR hundreds) the Stock Net P&P Daily Stock Summary. Affiliated Standard Thursday Dow-Jones Averages. Studebaker Superheater BY THE UNITED PRESS. Superior STOCKS High Chg. Utilities BONDS Rails Thermoid Industrials Tone of the Markets. NEW YORK CHICAGO. CATTLE Steady What the Market Did. Number declines Stocks 137 traded 608 BY JOHN L. COOLEY. NEW YORK, Nov. 12. disregarded the of grains during much of today's session, but lost heart in the late trading, just after the day's best rally Closing prices were irregular, with the balance. as measured by the averages, favoring the down side by nar. row margin. The was quieter than yesterday, sales totaling 1,450,482 shares. Bonds were somewhat mixed, although firmness in United States gov. ernments and many high grade loans was constructive. Silver bullion recovered almost a cent of yesterday's last minute break in New York Central. which was off points net, unsettled the list the rails. Stocks opened firm. began to saunter lower around noon and then rallied in the final hour. The late settlement resulted in changes for utility and industrial issues. United States Steel, American Telephone, American Can and Case closed from fraction to about point off. Allied Chemical, General Motors. American Tobacco and Continental Can returned gains. Radio weak in sympathy with Radio Keith Orpheum's decline. More optimistic reports concerning the prospects of German on the for new reparations basis moves toward Dairy solution of the Chinese Japanese dif feet on markets. offsetting the Westingh losses in Weekly bank figures showed decline in circulation against last week's $63,000,White 000 Foreign exchanges were rather heavy. Net losses in wheat ranged from Wrigley 1-4 to Corn's losses ran from 8 17-8 Cotton closed virtually unchanged. Yell Oats and rye were lower. Zenith Radio Prod day Foreign Markets week year January By The Associated Press two LONDON. developed on the reports the were generally higher and the Net Motors in and Japanese NEW YORK Nov and of closed under the best the dol- 83400 Central were sluggish the Motors brief inactive. NEW Fdrs Northern Stand Bankers Industry British Cumulative Foster Investors Invest CLOSED BANK TO PAY 5 PER CENT DIVIDEND DELAND. Fla., Nov. Payment per dividend to depositors of the closed Volusia County bank here will start tomorrow, E. Hanover Mickle. liquidator, said today. It will be the first payment to deposisince the bank closed in July. Gardner 1929. and will ly $52,000, Mickle announced. Bank Closes. MADISON, Wis Nov. The Capital City Bank of Madison, Trust listing deposits approx $1. failed today Treasury Statement. Dividends. for 10 days Glidden November were

4. November 17, 1931 Leader-Telegram Eau Claire, WI
Article from Leader-Telegram, November 17, 1931

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AT MADISON PROGRESSIVES OF INDEPENDENT GROUP HEAD Him for Not Blame State Funds Using Bolster Bank to remains unanswered The question hit were the Madito how badly in the unfortunate progressives but failure of the Capital City editorial the in strange calls on GovTimes, Editor Follette not to reappoint ernor the state annuity board, Banker John the Marshall and the banker did bank. the teachers' rush the tottering infund to save stitutions. Journal of Milwaukee has been The telling the story and part: "The state annuity board superinvestment money from the teachers' retirement fund. millions invest. More out-spoken the board bring out the members question whether istration expects the board the school money in attempt to salvage banks, accepting collateral for loans viously turned down by the entire board following careful The Capital Times that added to the heat the occasays callous indifference the big banker the condition small banker when the small banker in distress has been graphillustrated during the week the actions chairman the state annuity goes to that Mr Puelicher help loan secured first mortgages the building and then states: Tuesday afternoon Gov. La Follette, who yeoman work save the Capital City situation, called Puelicher telephone and urged Mr. Puelicher come Madison yesterday to see could not be helpful gotiations being carried on to the closing the bank. Gov. Follette urged Mr. Puelicher special meeting consider the matter. Puelicher not only come Madison yesterday, stated over the telephone that would do nothing until the regular meeting the board Friday. When ultimatum received from Puelicher the negotiations which being carried yesterday ernoon save the Capital City bank abandoned hopeless. Reappointment Is Opposed Puelicher opposed loan believed that he should least have had the decency to Madison see there any possibility being helpful way. very singular that Mr. licher, in such emergency this, should act though he the chairman town board calling town meeting. The Capital bank should not have been closed share the responsibility for the present rests on the shoulders Mr. Puelicher. hope that when term expires Gov. will fill his place the board who keener sense public Favored Bank The Capital City bank statements show that the institution public money deposits. times had $900,000 public funds. mainly state money allotted by Treasurer Levitan. Its total deposin normal times were bank used by the state department for active treasury checking account for long time. about time the surety shaved down amount bonds would for guaranteeing public deposit, the account rapidly reduced. months the state had the bank. Around money $500,000 these state funds withdrawn the treasurer's departWhen closed ment. there deposit, bond. Dedwindled draining state money, say Madibankers, than other the Capital found reason. in critical position, lacking Levitan Denies Drain' State Treasurer Levitan does agree theory the condition Capital City bank caused of funds the six state deliberately withdrawing its stated Levitan. "Sometimes funds. Sometimes had bank had much in proportion other banks. bank was to permit state up Progressive leaders Madison have unusually friendly Capital City Follette family associates did their banking the bank closed the account Follette the Capital Rogers in Capital City not memthe Clearing House had eagerly for funds the displeasure Madison banks. When its critical position became the clearing house started hoping to avoid suspension. time proposed that bank over. that audit made Commercial National bank which Treasurer Levitan chairthe board. following the gestion having bank Capital After other negotiations, the clearmet early WedRoom the Loraine Follette there. So and William Capital Times for the rectors of the Capital City room. Madison during which the the men, talked several times. governor Out in Madison four suggestions the Capital City: made That the stockholders of the Capito raise tal City stand agreeable to the $150,000. This was bank directors. That the state treasurer put back around more into bank that his state funds. agreeable Mr. Levitan. Madison banks pool and take That the slow paover around held the bank. per annuity board funds That the $150,000 note used mortgage bonds first the Capital City bank building. The governor was attempt stem the success the hinged getting crash board money. And the didn't the loan. The next mornclosed. The verdict ing the bank was the bank was such critithat that another day might shape depositors made run the bank. Loan Twice Refused the the board the office Albert Trothau director show that interests which bear the stamp politics, had sought the Capital City bonds security, far back June. "Application was made during the June meeting turned down,' stated Mr. Trothau, checking records. was presented again October, informally discussed turned down again." Reports are that pressure tinued among members the money. The pressure also stated reached point attempted coercion people ranking the administration politics. They went far as pound their on desks. facts hand to the the stated John Thiel, attorney, Mayville, member the board. came the board July and don't recall now about Folette talked to us about the the the banks was agreed that should met immediate calling of the But also voted that the board would not down the could help the banks and uphold our Othernothing doing. The governor told fine to this money help the banks, he also delivered the of "rememyou trustees'.' John superintendent schools, refused to the editorial blame the Milwaukee but said, "The first the annuity board in safe and sound and refusal of Grace Ogden, La school teacher member the board refused stating that she wished better first. Isaac Witter, Wisconsin Rapids the other the said: matter the bond issue the Capital City building in came before the June meeting again before the October meetthe state and investboard was the decision at both not make the bonds Any will probably the regular board Friday, 20. Any criticism this matter should directed the entire board, rather than any of its memThe board scheduled to meet Friday Madison. recalled that the annuity board before its with had invested 000 teachers' money in farm mortsecurities, largely bonds issued the Joint Stock Land which failed in There was such furor this loss that diversified program of investing was adopted.

5. February 9, 1932 Green Bay Press-Gazette Green Bay, WI
Article from Green Bay Press-Gazette, February 9, 1932

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BANK CHARGES ARE PROGRESSIVES Budlong Claims La Follette Knew Institution 'Was Broke'. MARINETTE Assemblyman Charles Budlong. Marinette conservative. charged Monday from the floor of the regular republican convention in Milwaukee that progressive leaders knew for year that the Capital City bank of Madison "was Mr. Budlong further charged that in April. 1931 there was on deposit in the bank $800,000 in state funds. Surety contend that the state law did not permit Sol Levitan. state treasurer. to deposit more than $250,000 in the bank. La Follette to Washington La Follette has left Madison for Washington and it is reported the purpose of the visit to the East is to discuss the Capital City bank with progressive leaders in an effort to interest new capital in reviving the closed bank Reports from Washington quoted Sen. Robert M La Follette as saying that he expected his brother some time this week, but does not know exactly when he will arrive. Feared Run on Bank "I threatened to rock the dome of the capitol several months ago," Mr Budlong said didn't rock it. was called on by my friends and told that if disclosed the facts would cause run and might break 100 banks in the state It would also break the progressive party wondered If it would not be worth It to break the progressive party am not telling where got my information. may have to disclose this in "The governor of the state started out in the campaign with the statement that one popular industry Governor Kohler brought into the state was chain banks and if he was elected he would see that they went out of the state. He said that the present banks out of the state. He said that the present laws were suffiicent to drive the chain banks out of the state and that we didn't need any new leg. islation. He was elected by an over. whelming majority. Sold Out to Chains "I made charge during the regular session of the legislature in connection with the bank situation It was in April, 1931. And when made that charge there was $1,250,000 on deposit in the Capital City bank. and $800,000 of this was the people's money There was not one dollar of assets except frozen assets Those people knew for year that the bank was broke. What saved them? They sold out to the chain banks. "One chain bank in the state of Wisconsin on that day had $4,000,000 of the state's money in the bank They turned in and saved the Capital City bank and it was going along nicely But the campaign came along and they said to the governor 'We've got to go after the chain banks. Then they calculated to go and rob the teachers of their money God bless John Puelicher He stopped them and Wisconsin can be thankful for John Puelicher wish there were more John Puelichers in Wisconsin Bank Bill Killed "The Capital City bank closed Its doors. Then we got three chain bank bills in the special session. One was introduced by Assemblyman G. Erle Ingram (progressive) of Eau Claire He told me Governor La Follette told him he did not want the bill to go through We finally passed that bill and sent over to the senate It was killed there without roll call. Sen. Glenn Roberts of Madison Senator Duncan of Milwaukee, the governor's secretary. and William T. Evjue of Madison, the progressive guardian angel. stepped into lobby room after the senate killed the antichain bank bill and patted each othon the back and laughed how they had disposed of that bill. "Another anti-chain bank bill was killed when 13 progressives stepped out of the assembly 80 there woule not be enough members present to vote on the bill. They didn't want it passed. They said 'we'll blame the legislature for killing When this bill came up the progressives were missing and they wouldn't put on call of the assembly to bring them in side the chamber to vote. I'm going to try to tell this story from the stump all over Wisconsin." STATEMENT BY REYNOLDS MILWAUKEE Wis ((P)-After an all-day conference here with surety company attorneys Attorney General John W. Reynolds departed last night without discussing the contention of the surety firms that State Treasurer Sol Levitan is personally responsible for state funds which were in the Capital City Bank of Madison when it closed The surety companies announced through attorneys that they will not make good any losses in state deposits because, they hold sums in excess of that allowed by law were placed in the Mr. Reynolds Issued a statement which did not touch on the question of liability The statement follows: State Fully Covered "The state holds bonds of two of the largest surety companies for $600.000 which fully cover the $399 286 deposited by the state in the Capital City bank at the time it closed on Nov 10. 1931 A part of these deposits consisted of interest coupons for $73,810 deposited with the bank for collection Of this amount. about $60,000 had been collected when the bank closed, leaving about $14,000 in uncollected "The state has asserted a preferred claim against the bank for $74,000. the entire amount of the coupons, and the question is raised as to whether this should be included in the claim against the surety companies. question is also raised by the surety companies whether the excess in the deposit over 000 should be made preferred claim against the bank Claim Not Yet Filed "No such claim has yet been filed with the commissioner of banking Claims against the Capital City bank must be filed by Feb. 20 and conferences have been had between the at. torney general's department and representatives of the surety companies with regard to the most satisfactory and speedy method of handling these claims so as to protect fully the interest of the state and the de"The discussions also included the possibility securing the Gargest possible dividends through reorganization or liquidation of the bank

6. February 9, 1932 The Oshkosh Northwestern Oshkosh, WI
Article from The Oshkosh Northwestern, February 9, 1932

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Dusts Off Derby Cameramen snapped this photo of former Gov Alfred E. Smith in New York few hours before he announced himself receptive candidate for the Democratic nomination for president. Smith's statement that he will not contest for delegates but is willing to be nominated created tremendous in terest throughout the country son, Senator Duncan of Milwaukee the governor's secretary. and William T. Evjue of Madison, the Progressive guardian angel, stepped into a lobby room after the senate killed the anti-chain bank bill and patted each other on the back and laughed how they had disposed of that bill BUDLONG IS APPLAUDED "Another anti-chain bank bill was killed when 13 Progressives stepped out of the assembly so there would not be enough members present to vote on the bill. They didn't want it passed. They said we'll blame the legislature for killing it When this bill came up the Progressives were missing and they wouldn' put on call of the assembly to bring them Inside the chamber to vote. Tm going to try to tell this story from the stump all over Wisconsin. When Assemblyman Budlong said that he had talked too long, he was greeted with shouts of "Go ahead, go The statement issued by Mr. Reynolds Monday followed the announcement Saturday by Charles Quarles, of Lines. Spooner and Quarles that they would try to hold Mr. Levitan for approximately $400,000 in state funds on deposit in the Capital City bank when it closed Mr Quarles asserted that Mr. Levitan knew that the bank was insolvent Mr. Reynolds said "The state holds bonds of two of the largest security companies for $600 which fully cover the $399.286.60 deposited by the state in the Capital City bank at the time it closed, Nov. 10. 1931 A part of these deposits consisted of interest coupons of $73,810 deposited with the bank for collection Of this amount, about $60,000 had been collected when the bank closed, leaving about $14,000 in uncollected coupons PREFERRED CLAIM ASSERTED "The state has asserted preferred claim against the bank for $74,000. the entire amount of the coupons, and question is raised as to whether this should be included in the claim against the security companies question is also raised by the surety companies whether the excess in the deposit over $250,000 should be made preferred claim against the bank 'No such claim has as yet been filed with the commissioner banking Claims against the Capital City bank must be filed by Feb. 20 and conferences have been had be tween the attorney general's department and representatives of the surety companies with regard to the most satisfactory and speedy method handling these claims SO as to protect fully the interest of the state and the depositors FONTAINE CHIDES LEVITAN discussions have also in cluded the possibilities in securing the largest possible dividends through a reorganization or liqui dation of the bank B. Fontaine of Green Bay chairman of the Republican confer ence, commented on Mr. Levitan's refusal to discuss the situation and Mr. Levitan's remark, "I can't talk It's in the hands of other people Mr. Levitan could talk on anything except the Capital City bank, Mr. Fontaine said. It is the first time in history that state treasurer was called on to talk and he said "other people' would do the talking for him. UPHOLDS LEVITAN The Madison Capital Times, La Follette Progressive spokesman, said in an editorial Monday on the Capital City bank case, that perhaps technically violation of law. Mr. Levitan has saved banks from being closed through the wise and judicious handling of ticklish situations." "The supreme court," The Capital Times said editorially, believe has repeatedly held that one individual cannot escape contractual obligations by attributing violation of law to somebody else. But no one knows better than the attorneys for the bonding companies the difficult position in which Mr. Levitan has been placed during the past two years. On the one hand, he was charged with the responsibility of protecting the people's money which, under our system, is in large part deposited in the state banks ACTED WITH EXTREME TACT "On the other hand, Mr. Levitan has had to act with extreme tact and care in the withdrawal of state funds from Wisconsin banks. In many cases, perhaps technically in violation of law, Mr. Levitan has saved banks from being closed. "In the case of the Capital City bank Mr. Levitan was up against delicate situation He had carried as high as $600,000 (protected by the bonding companies) in the Capital City bank. At the time of the closing of the bank, according to the books in the state treasurer's office the state had less than $300,000 on deposit in the bank It would seem therefore, in seeking to protect public funds, Mr. Levitan brought dif- ficulties to the bank in making such large withdrawals The statement issued Monday by Atty. Gen. Reynolds said that $399. Attorney General Reynolds said that $399,286.60 was deposited by the state in the Capital City bank at the time it closed.

7. February 9, 1932 The Capital Times Madison, WI
Article from The Capital Times, February 9, 1932

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Reynolds a Statement on CapitalCity The statement issued by Atty. Gen. John Reynolds Monday the Capital City bank bonds followed the announcement Saturday by Charles and that they would try hold Mr. responsible approximately in state funds on deposit in the Capital City bank when closed Mr Quarlese asserted that Mr. Levitan knew the bank was Mr. Reynolds said state holds bonds of two the largest security companies which fully cover the $399.deposited by the state in the Capital City the time closed. Nov. 10. 1931 part of these deposits consisted interes coupons $73.810 deposited with the bank for collection this about had been collected when the bank closed. leaving about $14,000 in uncollected coupons state has asserted preferred claim against the bank for the entire amount the coupons, and question raised whether this should included in the claim against the security question also raised the surety companies the excess the deposit should made preferred claim against the No such claim has as yet been filed with of bankClaims against the Capital City bank must filed by Feb. and conferences have been had between the attorney department and of the surety companies with regard the most satisfactory speedy handling claims protect fully the interest the state and the depositors.

8. February 9, 1932 The Capital Times Madison, WI
Article from The Capital Times, February 9, 1932

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Progressive Leaders Hit Budlong Tells Conference They Knew It Broke' Charles Budlong. Marinette Stalcharged Monday from the floor the regular Republican conference that leaders for that the Capital City bank broke Mr. Budlong further charged that April, 1931. there deposit the bank in state funds Surety that the state law did not permit Sol Levitan, state treasurer. deposit more than in the bank Atty Gen. John W. Reynolds. Herman Ekern. former attorney genand Mortimer Levitan. attorney and of State Treasurer Levitan. conferred Milwaukee Monday with the United legal representatives States Fidelity and and Fidelity and Deposit Co. Feared Run on Bank threatened rock the dome capitol several months Mr. Budlong didn't rock called by my friends and told that disclosed the facts would run and might break 100 banks in the state would also break the Progressive party dered would not worth break the Progressive party not telling where information. have to disclose this court governor of the state started the campaign with the statement that popular industry Gov. Kohler brought into the state chain banks he elected would see that they went out the state. He said that the present laws sufficient drive chain banks out of the state and that didn't need any new legislation. He elected an overwhelming jority. Sold Out to Chains made charge during the regsession of the in connection with the bank in April, 1931. And when made that charge there on deposit the Capital City and $800,000 this the people's There one dollar assets except frozen Those people knew year that the bank was What saved them? They sold out the chain banks chain bank in the Wisconsin on that day had 000 money the They turned in and saved the CapiCity and was going along But campaign came along they said the governor got the chain banks. Then they and rob the teachers of their monGod bless John Puelicher He stopped them and Wisconsin thankful for John Puelicher wish there more John Puelichers Wisconsin Bank Bills Killed "The Capital City bank closed its doors. Then got three chain bank bills in the special One was introduced Erle Ingram Eau Claire He told me Gov. La Follette him did not want the bill through. We finally passed that bill and the senate killed without roll call. Sen. Glenn Madison, Sen Duncan Milwaukee the secretary. William Evjue of Progressive guardian angel, stepped into lobby room the senate killed the antichain bank bill and patted each other back and laughed how they had disposed of that Budlong Is Applauded "Another anti-chain bank bill killed when progressives stepped the assembly so there would be enough members present on the They They said blame the for killing When this legislature the were came up missing and they put the assembly to bring them inside the vote tell this story from the try stump Wisconsin Fontain Chides Levitan "The discussions have also included the possibilities securing the largest possible dividends through reorganliquidaton bank Fontaine Green Bay. chairman of the republican confercommented on Mr. fusal discuss the situation and Mr Levitan's can't talk It's the hands other people. could talk anything except the Capital City Fontaine first time history that state treasurer called to talk and said "other people' would do the talking for him.'

9. February 9, 1932 Portage Daily Register Portage, WI
Article from Portage Daily Register, February 9, 1932

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PROGRESSIVES ACCUSED Leaders Madison Bank's Condition for Year is Charge Milwaukee, Feb. man Charles A. Marinette conservative, charged Monday from the floor of the regular republican convention in Milwaukee that progressive leaders knew for year that the Capital City bank of Madison "was broke." Mr. Budlong further charged that in April, 1931, there was on deposit in the bank $800,000 in state funds. Surety companies contend that the state law did not permit Sol state treasurerto than $250,000 in deposit more the bank. Phil Goes to Washington Governor LaFollette has left Madison for Washington and It reported the purpose of the visit to the East is to discuss the Capital City bank with progressive leaders in an effort to interest new capital in reviving the closed bank. Reports from Washington quoted Sen. Robert M. LaFollette say. ing that he expected his brother time this week, but does not some know exactly when he will arrive. Gen. John W. Atty. Herman Ekern, former attorney general, and Mortimer Levitan, and son of State Treasurer torney Levitan, conferred in Milwaukee Monday with legal representatives of the United States Fidelity and and the Fidelity Guaranty company and Deposit company of Maryland. of the conference Mr. At the end Reynolds issued statement which did not mention the controversy between Mr. Levitan and the surety companies. Feared Run on Bank threatened to rock the dome of the capitol several months ago,' Budlong said. didn't rock Mr. called on by my friends it. was told that if disclosed the and it would cause run and facts break 100 banks in the state. might would also break the progresswondered would party. not be worth It to break the proam not telling gressive party. where got my information. may have to disclose this in court. governor of the state startin the campaign with the ed out statement that one popular indusGovernor Kohler brought into try banks and if the state was chain elected he would see that he was of the state. He they went out that the present laws were to drive the chain banks sufficient and that we didn't out of the state need any new legislation. He was elected an overwhelming ma by jority."

10. February 17, 1932 Two Rivers Reporter Two Rivers, WI
Article from Two Rivers Reporter, February 17, 1932

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Madison robe Ordered; Phil Seeks Surety Payments Governor Appoints Special Counsel to Force Payment of Surety Bonds MADISON, Wis. La Follette today announced he has appointed Benjamin C. Poss of Milwaukee as special counsel for the state to force the payment of surety bonds issued on state money deposited in the defunct Capital City Bank of Madison. The governor issued a statement in which he said the state will demand the surety companies adhere to their contracts. Governor La Follette's statement in full follows: "Two surety companies accepted premiums on surety bonds, guaranteeing the state of Wisconsin against the loss of any of its money in the Capital City Bank up to $600,000. "At the time the Capital City Bank suspended, state deposits were far under this amount. "The two surety companies, having failed to make payment to the state within reasonable period, are not living up to their obligations to the state. "Accordingly have appointed as special counsel, Benjamin C. Poss of Milwaukee, to take such action so as to fully protect the state and to compel the surety companies to live up to their contract.

11. February 17, 1932 Marshfield News-Herald Marshfield, WI
Article from Marshfield News-Herald, February 17, 1932

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CASE Governor LaFollette Appoints Benjamin Poss to Represent State PHIL ISSUES STATEMENT Madison, Feb. LaFollette today announced he appointed Benjamin Poss Milwaukee special counsel for the state the payment surety on deposited defunct Capital City of Madison. The statement which he said the state will mand that the surety here to their contracts. It was the chief first statement bank since the institution failed several weeks Statement In Full Governor LaFollette's statement full follows: surety companies accepted on surety bonds. guaranteeing state of Wisconsin against loss of any of its money the capital city bank up to $600,the time the Capital City bank suspended, state deposits far under amount. surety companies, having failed make payment to state within reasonable period, not up their obligations the state. "Accordingly have appointed special counsel Benjamin Poss Milwaukee take such action fully protect the state and compel companies to live to their First Witnesses Thomas acting banking Jamieson, bank examiner, were subpoenaed first witnesses. One the subjects to engage attention of the prosecutor the report least one bank from bank without securing the approval other directors. Herreid has Capital and the book the directors' of Capital City bank be brought District AttorRisser opens probe intended banking of state statutes were violated with the bank which closed doors Risser said all officers the bank state would be called testify. The before Superior Judge Schein. Coincident with the announceof inquiry the city of upon the bank for about which the had on deposit. The other the loaning of money stock the bank state laws bank its own stock security for loans.

12. February 17, 1932 Wausau Daily Herald Wausau, WI
Article from Wausau Daily Herald, February 17, 1932

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Probe Into Capital City Bank Failure to Open At Madison Tomorrow STATEMENT IS ISSUED Governor Says Deposits Under Insured Amount; City In Formal Demand Madison, Feb. Follette today announced he appointed Benjamin Poss of Milwaukee special counsel for the state force the payment surety bonds issued on money depositthe defunct Capital City bank Madison. The issued statement in which he said the will mand the surety here to their contracts. the chief first statement connection with the case since the institution failed several weeks ago. Governor's Statement Governor Follette's statement full follows: "Two surety companies accepted premiums surety bonds, guaranteeing the state of Wisconsin against the of any of its money Capital City bank up $600,000. time the Capital City bank suspended, state deposits were far under amount. "The two surety companies, having failed make payment the state within period, not living up to their obligations the state. "Accordingly have appointed special Benjamin to action to fully protect the state and compel surety companies to live their of the Capital City bank be brought before John Doe Thursday as Attorney Risser probe tended to banking regulations state lated the operations the bank which closed its doors last Risser said all officers of the bank and state would called testify. The hearing will before Superior Judge B. Schein. City Makes Demand Coincident yesterday, Risser's inquiry became known city of Madison made formal demand upon bank for about $42,000 which municipality had on deposit Thomas Herreid, acting banking commissioner W. Jamieson, bank examiner, were subpoenaed the first witnesses. One of the first subjects to engage the attention of the prosecutor the report least one bank in excess of $1,000 from the bank without securing the approval of the other directors. Herreid been directed to bring into court the Capital City's register of and the minbook of the directors' meetings. The also expected other including the loaning of money stock the bank state bank from its own stock security for loans.

13. February 17, 1932 The Post-Crescent Appleton, WI
Article from The Post-Crescent, February 17, 1932

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PICKS COUNSEL TO FORCE BOND FIRMS TO PAY LaFollette Says State Will Demand Payment from Surety Firms Madison Governor LaFollette today announced he has pointed Benjamin Poss of Milwaukee, as special counsel for the state to force the payment of surety bond issued on state money deposited the defunct Capital City of Madison. governor issued statement in which he said the state will mand that the surety company adtheir contracts. It was the chief executive's first statement connection the bank case since the institution failed several weeks Governor LaFollette's statement full follows: "Two surety companies accepted premiums on surety bonds, guaranteeing the of Wisconsin against the loss any its money in the Capital City bank up to time the Capital City bank suspended, state deposits were far under this surety companies, ing failed make payment the within period, are not living up to their obligations the state. Accordingly have appointed special Poss take such action as to fully protect the state and compel the surety companies to live up to their at Hearing Records of the Capital bank will be brought before John Doe Thursday District ney Fred Risser probe intended determine if regulations state were violated in with the operations of the bank which closed doors Risser said all officers of the bank state employes would called testify. The hearing will be conducted before Superior Judge B. Schein. Coincident the announcement yesterday of Risser's inquiry be came known city of Madison made formal demand upon the bank for about $42,000 which the municipality had deposit. Thomas Herreid, acting banking commissioner and G. Jamison, bank examiner, were subpenaed the first witnesses One the first subjects to engage the attention of the prosecutor will the report least one bank director excess from the bank securing the approval of the other directors. Herreid has been directed bring into court the Capital City's register loans and discounts and the minute book the director's meetings. The also expected investigate other matters, including the loaning of money stock the bank state laws prohibit bank from accepting its own stock as curity for loans.

14. February 17, 1932 Wisconsin State Journal Madison, WI
Article from Wisconsin State Journal, February 17, 1932

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Herreid, Jamieson Ordered to Probe Opening Thursday Buildings Not Adapted to Sites 'Highest and Best Use', Claim; Five Pay No Rent The present buildings on the site of the Capital City bank and Arcade building are not adapted to its "highest and best" use, the appraisers appointed by Judge A. Hoppmann maintained in their detailed report filed in circuit court today. The report explains the valuaof $133,000 placed on the tire property by the appraisal with the value of placed the curities division basis for approval bond issue with the value of more than claimed by the bank. Set Annual Returns at $28,896 The committee computed the worth of annual returns on the land, extended into perpetuity and now developed, on the assumption that "the buildings suitable improvements and actually worth cost of reproduction new less depreciation. This valuation, the report states, so as to strongly suggest that perhaps these buildings are not in and that tests should be made determine whether higher value could be developed type of building better adapted to the site. the duty appraisers to follow this course because well established rule of valuation that land must be given value arising out of its highest and best Describe Most Suitable Building The committee, consisting Paul Stark, B. Chapman, W. and G. E. Gill, pointed out that "after testing out various types structures and making valuation sheets upon them, concluded two-story building covering the entire now occupied by both buildings, with the entrance the corner nearest square, would be the most suitable for the site and would produce the largest net return on land. is obvious," the report continues, "that customers would be brought into the corner entrance, La Follette Names Poss as Special Counsel to Seek Collection on Surety Bonds Two definite moves in the Capital City bank complications developed today when Gov. La Follette appointed special counsel to seek collection surety bonds protect ing state deposits the bank while Dist. Atty. Fred E. Risser announced John Doe inquiry into the bank's starting before Judge Schein in court. Thomas Herreid, acting bank commissioner. and Jamieson, bank examiner, the first witnesses in the John Doe investigation. Names Poss Connsel Governor La Follette appointed Benjamin C. Poss. torney, special "to take such as to fully protect the state the surety companies to live up to their agreement." "Two surety companies," said the governor's statement, accepted premiums on surety bonds guaranteeing the state Wisconsin against the loss of any its money in the Capital City bank UD to Not Observing Obligation, Charge "At the time the Capital City bank suspended, state deposits were far under this amount. The two surety companies, having failed to make payment to the state within reasonable period, are not living up to their obligation the state," governor charged. The governor's statement contained no reference the excess state deposits in the Capital City bank over the maximum lowed by The inventory filed last week disclosed state deposits approximately at the time closed. The law provides that state funds in any depository shall not to exceed the total of its paid capital and surplus which, the the Capital City bank, was $250,000. The inquiry directed by Dist. Atty. Fred E. Risser follows disclosures made public last week with the filing the closed bank's inventory in circuit court. Promises Thorough Probe don't know how long the intake," Risser said today, will be thorough. The on which the inquiry is based that 'John Doe, director of the Capital City bank," did unlawfully and feloniously "borrow and otherwise cure funds from the Capital City bank in excess of $1,000 without complying with the requirements of Section 221.31 of the Wisconsin statutes and violation, in that he, the said John Doe, did borrow and procure said funds without authority by resolution of the board of directors previously made and recorded upon its minutes without one or more endorsers the responsibility of whom should have been approved by like previously. recorded resolution without collateral security the sufficiency of which should been approved by like previously recorded resolution." The subpoena directs Commissioner Herreid to bring with him the bank's register of loans and discounts and its minute book. Jamieson the examiner directly in charge of the bank since taken over by the state commission.

15. April 8, 1932 Two Rivers Reporter Two Rivers, WI
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MISINFORMED BUYERS, EVIDENCE State Official Testifies He Didn't Know of Claims Published STATE BLAMES LEVITAN Says Insurance Company Must Collect From Him in Bank Case MADISON, Wis. (AP) Testimony that bonds were represented as eligible for trust fund investment although the bond issue reputedly had been oversold was introduced at the opening of a preliminary hearing here for five directors of the defunct Joseph Boyd Co., investment concern. The five directors are charged with embezzlement, false advertising and violations of state securities laws. They are Joseph M. Boyd, Alfred Rogers, Dr. Harper, R. Kropf and Ray H. Farness. Shows Letter Testifying in superior court, Walter E. Bartholomew, 70, Lodi, displayed letter received from Kropf which reputedly said the bonds were eligible for trust fund investment. He said he purchased a $500 bond. A. E. Skinner, mayor of Stoughton. testified that he purchased $4,000 of bonds as trustee of an estate after Mr. Boyd informed him they were eligible. The bonds were part of $900,000 ishandled by the Boyd concern for the Beecroft Building Comapny. Official "Didn't Know" George C. Mathews, director of the securities division of the public service commission, said he would have opposed the use of circular on the Beecroft issue had he known that it contended that the issue was secured by first mortgage on the Orpheum, Parkway and Strand theater properties. The state contends that here was an underlying issue of bonds secured by first mortgage on the Orpheum theater of which issue $395,000 was outstanding when the Beecroft bonds were placed on sale. The prosecutors claim that the Boyd company dipped into the $395,000 which was to have been aside for retirement of a previous bond issue and thus sold more than the $505,000 authorized for general sale. Blame Laid on "Sol" MADISON, Wis. (AP) The state launched an action before Circuit Judge A. C. Hoppmann today to compel two bonding companies to pay for the loss of state deposits in the closed Capital City Bank, declaring that State Treasurer Soloman Levitan personally liable if the deposits exceeded the legal limit, Benjamin Poss, special counsel appointed by Governor LaFollette, argued that the bonding companies cannot escape their on $325,000 to the state but must have their recourse suing The total of state funds in the bank was slightly less than $400,000, including $74,000 in state coupon account which may or may not be determined preferred claim. The surety company charged that the legal limit of deposits, based on the bank's capital and surplus was They refused to pay more than that amount. Today's arguments were based on the application of the companies to make Levitan, the Capital City Bank and Thomas Herreid, acting banking commissioner, with the surety companies in this suit.

16. July 24, 1932 Wisconsin State Journal Madison, WI
Article from Wisconsin State Journal, July 24, 1932

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Ordered BankBolster? Edward J. Samp. Madison, regular Republican candidate for state treasurer, said Saturday that state funds were deposited in the Capital City bank an effort to maintain its stability and prevent its closing. The bank suspended business with mately $400,000 of state money on SAMP deposit. Samp that in June, 1931, the board deposits took cognizance the fact under the law only $250,000 of state money could be accepted for deposit. La FolAtty Gen. John W. Reynolds and Solomon Levitan, state treasattended the meeting, the candidate resolution passed down the balances the legal spirit of the resolution was carried out for while, and from

17. July 25, 1932 The Oshkosh Northwestern Oshkosh, WI
Article from The Oshkosh Northwestern, July 25, 1932

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SAYS STATE FUNDS WERE DEPOSITED TO HALT BANK CLOSING Wis. Samp. regular Republican candidate for state treasurer. said urday night that state funds were deposited in the Capital City bank in an effort to maintain its stability and prevent its closing The bank suspended business Nov. 11, 1931, with approximately $400,000 of state money on deposit. Samp said that in June 1931, the board of deposits took cognizance of the fact that under the law only $250,000 of state money could DE accepted for deposit Gov Phu La Follette. Atty Gen John W Rey. nolds and Solomon Levitan treasurer attended the the candidate declared resolution was pas ed instruc ing Levitan to draw down the bal ances to the legal spirit of the resolution was carried out for while, and from Oct. to Oct. 27. inclusive, not cent of state funds was deposited in the bank. "Then the financial instability of the institution must have become known. Samp continued, 'because in week's time Levitan deposited The question Who told Le and vitan to deposit that money. which was $160,000 more than was allowed by law

18. August 26, 1932 The Merrill Daily Herald Merrill, WI
Article from The Merrill Daily Herald, August 26, 1932

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IN CAPITAL-SAMP Candidate For State Treasurer Backs Indictments With Facts of Record "State Treasurer Solomon Levitan wants to hold onto his Edward Samp, of Regular candidate the for state at the Stange public park last night. the Progreswhen he ran for office the first that he could elected just time, he wouldn't run And they can't rid him. and he elected this time running again men the said Mr. Samp income for 1931 was reportat there must source revenue other than the salary paid by the Despite the threatening storm that hung over the horizon in the estimated that than 600 people had the the had and the number in the many cars approximated equally large, as the provision of speaker carried Mr Samp's modulated voice to all parts of the grounds. Dr. H. Bayer of this city, troduced the speaker, and took casion present some of viewpoints, before the said that he had not previously taken active part politics, but under existing tions he that duty rill take part this fall, if we hope he said, have been rather going far the ticket: the last time did that, voted for the president that "kept out Follette's preachment is now up to us, home well those homes, get busy them facts He said he hand not firing the when through. in Regarding the Capitol City Bank the the state board July deposits passed orderthe state withdraw deposits from any bank with more money deposited in than the amount the allows. July this bank had in state funds on deposit, but this amount decreased by October But October the state treasurer began pouring amounts of the people's large money into the Capitol City Bank The was which deposit followed by five more, aggreseven gating the bank failed, with days the state's money in over the legal limit, consisting in excess posits, $73,000 coupons posited some which were six weeks overdue and payable." said Mr. Samp. "was in direct violation of the law. The surety company refuses pay any amount above the $250,000 maximum deposit allowed by law, and expensive litigation now in proAt this point the speaker took occasion ponder the neces. sity of the having salaried attorneys fight its legal when has an and corps of assistants. He timated that this evasion of the law by the state treasurer, would cost the state from probably $10,000 to fight, and then to with no assurance all the teachers of Wisconconsider whether they want their savings in teachers tirement fund manipulated for political was done in the case the Capitol City bank, said Mr Samp. an attempt the pet, regardless of the safety of teachers' savings, the officers exerted efforts have the annuity board over $200,in bonds on the Capitol City which building was Bank five Madiappraised by real estate men as valued $133,000 consider said the "that on teachspeaker, coupons retirement bonds were among $73,000 of coupons which were due and cashable September October 1931, and which and not deposited this bank until October just in time them tied up the deposits have of this defunct where they (Continued on page

19. August 9, 1933 Green Bay Press-Gazette Green Bay, WI
Article from Green Bay Press-Gazette, August 9, 1933

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BULLETIN Wis. bert G. Schmedeman and six others who were directors of the Capital City bank at the time of its failure in 1931 ordered by today to appear as witnesses at the preliminary hearing of William J. Hobbins against whom have been filed 35 charges resulting from the bank's failure. A deputy attempted to serve the subpocna upon the governor today but failed because Schmedeman was in conference. The British mandated territory of Palestine is about the area of Massa chusetts medium low cutter and cutter good choice cull common and medium $3.Sheep slaughter lambs Tuesday's lambs down. and dium weights, common medium MILWAUKEE LIVESTOCK Hogs Receipts 180-300 higher lbs. and Steers good fair common milkers (common sell for Receipts 25 150 $3.00@ Good to bucks