Commercial & Savings Bank

Bank Information

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

Metadata

Model: gpt-5-mini
Short Digest: 6c00d93d

Response Measures

Full suspension, Books examined

Other: State banking commissioner closed the bank; later bankruptcy/claims pursued.

Description

Contemporary reports (Sept 17–18, 1914) state the bank 'closed' after heavy withdrawals and inability to call in large loans. Stockholders later alleged large loans on worthless paper wiping out capital; bank did not reopen as promised and later appears in bankruptcy/claim proceedings (1915). Thus a run preceded suspension and the bank ultimately failed.

Events (3)

1. September 17, 1914 Run

Cause: Bank Specific Adverse Info
Cause Details: Heavy withdrawals triggered by large loans on poor/worthless paper and inability to call in loans; deposit decrease and heavy withdrawals.
Measures: None specific beyond taking precautionary measure/closing to stop withdrawals
Newspaper Excerpt: the bank had taken this precautionary measure because of the large decrease in deposits, the inability to call in the larger loans, heavy withdrawals and close collections.
Source: newspapers

2. September 17, 1914 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank closed by state banking commissioner after heavy withdrawals and poor loan quality; capital and surplus nearly wiped out by bad loans according to stockholders' later statements.
Newspaper Excerpt: The Commercial and Savings Bank closed here today. ... The announcement declared that the bank had taken this precautionary measure
Source: newspapers

3. June 24, 1915 Receivership

Newspaper Excerpt: Referee in bankruptcy ... allows Racine Bank's claim. ... testimony ... loans ... were the largest single factor in causing the bank to suspend.
Source: newspapers

Newspaper Articles (5)

1. September 19, 1914 The Fairmont West Virginian Fairmont, WV

Article from The Fairmont West Virginian, September 19, 1914

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Article Text

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

2. December 15, 1914 The Watertown Weekly Leader Watertown, WI

Article from The Watertown Weekly Leader, December 15, 1914

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Article Text

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

3. December 18, 1914 Ladysmith News-Budget Ladysmith, WI

Article from Ladysmith News-Budget, December 18, 1914

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Article Text

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

4. January 7, 1915 The Telegraph-Courier Kenosha, WI

Article from The Telegraph-Courier, January 7, 1915

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Article Text

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

5. June 24, 1915 The Telegraph-Courier Kenosha, WI

Article from The Telegraph-Courier, June 24, 1915

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Article Text

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