22721. Franklin State Bank (Milwaukee, WI)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: June 17, 1931
Location: Milwaukee, Wisconsin (43.039, -87.906)

Metadata

Model: gpt-5-mini
Short Digest: 3ace6b6d

Response Measures

None

Description

The Franklin State Bank suspended business on June 17, 1931 (articles cite suspension and subsequent John Doe investigation for operating while insolvent). There is no clear contemporaneous description of a depositor run; the bank was later reorganized and expected to reopen in October 1932 as the Marquette State Bank. Criminal warrants and an examiner/receiver appointment are described. I corrected/confirmed the suspension date (June 17, 1931) from multiple articles.

Events (4)

1. June 17, 1931 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank was insolvent prior to suspension; John Doe investigation cited that officials permitted the bank to operate after it was insolvent and charges were later brought against officers and the banking commissioner for tardy action and allowing operations while insolvent.
Newspaper Excerpt: The Franklin State Bank was suspended on June 17.
Source: newspapers

2. August 7, 1931 Other

Newspaper Excerpt: Governor La Follette's request for all that George Bowman, Milwaukee district can furnish him relative the Franklin bank ... John Doe examination into the failure, Attorney Bowman said today. The governor's request for information in regard the failure was occasioned by letters to him from creditors of the bank asking that he make an inquiry into the bank's suspension. (Wisconsin State Journal, 1931-08-07).
Source: newspapers

3. September 17, 1931 Other

Newspaper Excerpt: appointment of William C. Tannhaeuser ... as special deputy commissioner of banking to take charge of the defunct Franklin State Bank ... John Doe proceedings were subsequently held ... Warrants subsequently issued against Schwenker and bank officials. (multiple AP reports Sept. 17, 1931).
Source: newspapers

4. October 5, 1932 Reopening

Newspaper Excerpt: The Franklin State Bank which suspended business in June, 1931, is expected to reopen within two weeks under the name of the Marquette State Bank ... Plans for reopening the institution were revealed ... distribution of $110,650.30 among the 8,000 depositors ... $55,000 of the necessary $100,000 new capital has been subscribed. (AP reports Oct. 5, 1932).
Source: newspapers

Newspaper Articles (13)

1. August 7, 1931 Wisconsin State Journal Madison, WI

Article from Wisconsin State Journal, August 7, 1931

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Phil's Bank Evidence Request Before Judge Governor La Follette's request for all that George Bowman, Milwaukee district can furnish him relative the Franklin bank turned over Judge George Page. of Milwaukee district court, who conducting John Doe examination into the failure, Attorney Bowman said today. The governor's request for information in regard the failure was occasioned by letters to him from creditors of the bank asking that he make an inquiry into the bank's suspension. District Attorney Bowman was one time director of the bank resigned 1928 previous to becoming district attorney,

2. August 18, 1931 The Sheboygan Press Sheboygan, WI

Article from The Sheboygan Press, August 18, 1931

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Schwenker Questioned Hearing John Doe Investigation Of Franklin Bank Transactions Is Held Behind Closed Doors Milwaukee, (UP) Calvin Schwenker, former state banking was the first witness called today as Milwaukee county officials opened John Doe investigation transactions which closed the Franklin State Bank. Walter Hofer, deputy district attorney, questioned Schwenker all morning the presence of Judge George Page. hearing, howbeing held behind closed doors and the testimony will be kept secret. Operated When Insolvent One of the questions which the expected to asked was why bank was permitted to operate some time after was found to insolvent. Thomas Herried, who has been appointed acting of banking, and Pitman, examiner charge Franklin State Bank records, others to be summoned in the hearing today. Charge Against Schroeder A few hours before the hearing opened, Oliver O'Boyle, assistant county corporation counsel, charged affidavits that president of the defunct bank, some his estate holdings intent to defraud the county. O'Boyle alleged that transfers were effected after the bank closed, June Among other matters to be vestigated during the the fact that which Schroeder was officer, from the State Bank without according to statement the state banking commission.

3. August 18, 1931 Leader-Telegram Eau Claire, WI

Article from Leader-Telegram, August 18, 1931

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Union Trust Co. at Madison Gets Schwenker When Calvin Schwenker, state banking handed his resignation Gov. Follette was reported that will become president the Union Trust at Madison, Sept. The announcement was made the governor's office and Emerson director of the trust company. confirmed the statement that Mr Schwenker would head that Mr. Schwenker who has been under criticism the crash of Franklin State bank Milwaukee, graduated from the University Wisconsin in 1911. For four years he the First National bank in Chippewa Falls. He examiner for the banking commission 10 years and made commissioner Gov Zimmerman in 1927. His present term would have expired next spring. "Glad Have Him." At Chippewa Falls Thursday afternoon Mr. Schwenker that had no formal make on the resignation. He however, that had negotiating with Union Trust Co. officials for some time. Schwenker was Chippewa "official business" said. Northwestern State bank closed there about two months ago. The Union Trust Co. officials said that they glad" to have Mr. with them. Mr. Ela said that they had tried year ago to have Mr. join their and that he had declined. This were again started April and was just within the last three Ela said. that the final arrangements were made Had Been Under Fire. Mr. Schwenker prepared statement saying that he make Madison his permanent home that he was glad to reenter active banking. understood that the governor's office will issue formal statement Friday. Thomas Herreid. deputy commissioner. act head of the department until comappointed. Mr. Schwenker Colonel Marshall Cousins of Eau Claire as banking commissioner.

4. September 6, 1931 Omaha World-Herald Omaha, NE

Article from Omaha World-Herald, September 6, 1931

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Four Out on Bond in Franklin Bank Case Milwaukee, Wis., Sept. Four of five persons named in warrants in connection with the failure the Franklin State bank were arraigned released on bond here today. The cases were continued until September 30. Calvin Schwenker, former state banking commissioner, accused of being tardy in closing the bank which he allegedly knew was insolvent, freed hundred dollar bond. Bail for William Schroeder, president of the bank set 11 thousand dolHe charged in three warrants with falsifying bank records bank examiners: of taking four hundred dollars in consideration for loan made bank client. and of buying stocks on margin bank official Raymond Maas, assistant cashier and bank director, and Emil cashier, accused of for loan were freed on one thousand dollar bond. Labudde, former ident and director. charged with buying while bank official, will be arraigned Tuesday.

5. September 10, 1931 The Daily Tribune Wisconsin Rapids, WI

Article from The Daily Tribune, September 10, 1931

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WARRANT SCHROEDER PRESIDENT OF DEFUNCT BANK CITED FOR ACCEPTING DEPOSITS AFTER INSTITUTION INSOLVENT; SCHWENKER CENSURED. Milwaukee, Sept. fourth warrant William Schroeder, president of the defunct Franklin State bank, ordered today by District Judge George Page in his report of the John Doe inquiry the failure of the institution. While name, the report censured vin Schwenker, former state banking Took Money When Insolvent The new warrant against Schroeder will charge, Judge Page said, that the former bank president permitted deposits to be accepted knew the bank was insolvent. Previously, Schroeder chargwarrants apart the John Doe with falsifying bank records deceive bank examiners, of buying stock bank officer, and of commission loans. arraigned held $11,000 bonds in connection with the three charges and his case continued til Sept. Schwenker, who resigned state banking commissioner Sept. was accused previously tardy action closing the bank. held ter arraignment $500 bond for hearing Sept. Judge Page, in the report released today, said was convinced from the testimony presented that bankofficials the institution insolvent for more than year before closed June. Sold Additional Stock was censured for permitting $50,000 bank stock to be sold to the lic for the alleged, purpose, of covering up deficiency in capital and surplus.

6. September 17, 1931 Two Rivers Reporter Two Rivers, WI

Article from Two Rivers Reporter, September 17, 1931

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Appoint Special Bank Commissioner MADISON, Wis. (AP)-The appointment of William C. Tannhaeuser, MIIwaukee, as special deputy commissioner of banking to take charge of the defunct Franklin State Bank, Milwaukee, was announced here today by Thomas Herreid, acting commissioner of bank- The Franklin State Bank was suspended on June 17. John Doe proceedings were subsequently held at which Calvin Schwenker, former commissioner of banking, was accused of permitting the bank to run after he knew it was insolvent. Warrants were subsequently issued against Mr. Schwenker and bank officials.

7. September 17, 1931 The Rhinelander Daily News Rhinelander, WI

Article from The Rhinelander Daily News, September 17, 1931

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NAMES TANNHAEUSER TO Acting Commissioner of ing Picks Milwaukeean Special Deputy. Sept. 17 appointment William C. Tannhaeuser, Milwaukee, special deputy of banking take charge of defunct Franklin State bank, Milwaukee, nounced here today by Herreid, acting of banking. The Franklin State bank suspended John proceedings held which Calvin Schwenker, former commissioner banking, was cused of permitting the bank run he knew was insolvent. Warrants subsequently issued against Mr. Schwenker and bank ficials. The bank's creditors selected creditors' committee which mended Tannhaeuser as special deputy commissioner. has been engaged various occupations Milwaukee for more than 20 years, Herreid said. together with his experience in the real estate field, and knowledge real estate values should, my opinion. be of particular the handling of the affairs of this bank, he added.

8. September 17, 1931 The Journal Times Racine, WI

Article from The Journal Times, September 17, 1931

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Will Take Charge of Defunct Franklin Bank -The appointment of William C. cial deputy commissioner of banking to take charge of the defunct Franklin State bank Mitwaukee, here today by Thomas Herreid, acting of banking The Franklin state bank was suspended on June 17. John Doe proceedings were' subsequently held at which Calvin Schwenker, former commissioner of banking, was accused of permitting the bank to run after he knew it was insolvent Warrants subsequently issued against Schwenker and bank officials.

9. March 15, 1932 Marshfield News-Herald Marshfield, WI

Article from Marshfield News-Herald, March 15, 1932

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Merit Distinction For Scholastic Accomplishments Names students of John's Catholic school the honor roll for the which Friday. Those meriting this Martha Katherine Hass, Mary Ann Kliner, Lucille Leitner, Mildred Streveler, Grace Margaret BerghamLillian Kathleen Geraldine Cafferty, Adele Harsch, Jeannette Miedaner, Verna Palecek, Fidelia Schmitt, Adler. Caroline Curtin, Marcella Durst, Adela Durst, Ruth Boehm. Robert Felhofer, Louis Gerald Hoag, Knauf, John Rhodes, Robert Roecklein, Jeroma Taube, Winterburn, Robert Rembs, Leonard Tauschek. HOLDS BANK HEAD Milwaukee, March Judge Hedding bound William Schroeder, former the closed Franklin State bank, Milwaukee, municipal court for trial on charges receiving deposits when he institution to buying stocks margin, and of ceiving the bank's board of directors.

10. October 5, 1932 The Merrill Daily Herald Merrill, WI

Article from The Merrill Daily Herald, October 5, 1932

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Bank to Reopen At Milwaukee Under New Name MILWAUKEE. Oct. 5 (P)The Franklin State Bank which suspended business in June, 1931, is expected to reopen within two weeks under the name of the Marquette State Bank Plans for reopening the institution were revealed to Circuit Judge John J. Gregory when he authorized distribution of $110,650.3 among the 8,000 depositors yesterday. C. F. Roullier. representing the reorganization committee, said $55, 000 of the necessary $100,000 new capital has been subscribed.

11. October 5, 1932 Wausau Daily Herald Wausau, WI

Article from Wausau Daily Herald, October 5, 1932

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Suspended Franklin State Bank Reopens as Marquette Milwaukee, Oct. 5.- (AP) -The Franklin State bank which suspended business in June, 1931, is expected to reopen within two weeks under the name of the Marquette State bank. Plans for reopening the institution were revealed to Circuit Judge John J. Gregory when he authorized distribution of $110,650.30 among the 8,000 depositors yesterday C.F. Roul lier, representing the reorganization committee, said $55,000 of the necessary $100,000 new capital has been subscribed.

12. October 5, 1932 Ironwood Daily Globe Ironwood, MI

Article from Ironwood Daily Globe, October 5, 1932

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county some difficulties over the care of her father. She said he bought liquor with money she sent him and then humiliated her by applying for county aid. While preparing to leave today for St. Louis where she will join her company and continue her stage engagements, the dancer said: "I have spent several nights at my home in Cudahy with my son and my sister. It was wonderful and made me feel so good. No, we have heard nothing from my father. Somehow, I can't feel sorry." Whitehall-Miss Selma Oerke, 35, of P.geon Falls, died at a hospital here last night of burns received when an oil stove she was filling exploded. Milwaukee-The Franklin State bank which suspended business in June, 1931, 15 expected to reopen within two weeks under the name of the Marquette State bank. Plans for leopening the institution were revealed to Chcuit Judge John J. Gregory when he authorized distribution of $110,650 30 among the 8.000 depositors yesterday. C. F. dren, Eugene 8, and Irene, 6.

13. October 6, 1932 Two Rivers Reporter Two Rivers, WI

Article from Two Rivers Reporter, October 6, 1932

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CLOSED BANK WILL REOPEN MILWAUKEE. Franklin State Bank which suspended business June, 1931, is expected to reopen within two weeks under the name of the Marquette State Bank. Plans for the were revealed to Circuit Judge John Gregory when he authorized distribution of $110,650.30 among the 8,000 depositors Tuesday. WHITEHALL, Wis., (AP)Miss Selma Oerke, 35 of Pigeon Falls, died at hospital here Tuesday of burns rean oil stove she was fill-