2812. Davenport Savings Bank (Davenport, IA)

Bank Information

Episode Type
Suspension → Run → Reopening
Bank Type
savings bank
Start Date
January 3, 1870
Location
Davenport, Iowa (41.524, -90.578)

Metadata

Model
gpt-5-mini
Short Digest
85864ebe32c563af

Response Measures

None

Description

Court injunction (Jan 3, 1870) put the Davenport Savings Institution into receivership (suspension). While in receivership there was a heavy simultaneous demand/rush on the institution in April 1870 as the receiver paid out deposits. Later (Dec 1870) the Iowa Supreme Court dissolved the injunction and directed the receiver to turn assets back to the officers (articles state officers were to take charge), indicating a reopening. Some later commentary casts doubt on immediate resumption, but the court order supports classification as reopening. Dates taken from articles; OCR minor fixes applied (e.g., Davenport Savings Institution and dates).

Events (3)
1. January 3, 1870 Suspension
Cause
Government Action
Cause Details
Court injunction filed by two stockholders led to appointment of a receiver and cessation of business.
Newspaper Excerpt
On the 3d of January last, the Davenport Savings Institution was by order of the court, enjoined from the further transaction of business, and the whole concern was placed in the hands of a receiver.
Source
newspapers
2. April 14, 1870 Run
Cause
Bank Specific Adverse Info
Cause Details
Depositors demanded funds while the institution was in receivership and being wound up amid allegations/speculation about officers' conduct; heavy withdrawals paid by the receiver.
Measures
Receiver paid out large sums ($123,000); temporarily unable to pay some depositors until assets converted to cash.
Newspaper Excerpt
Receiver Parker ... has been much troubled by a simultaneous demand of depositors for their money. He has paid out $123,000.
Source
newspapers
3. December 3, 1870 Reopening
Newspaper Excerpt
The Supreme Court ... directs the Receiver, upon a receipt of a certified copy of the order of the Court, to turn over the entire assets and property of the Institution to the officers of the same ... The officers were to take charge of the Institution to-day.
Source
newspapers

Newspaper Articles (4)
1. April 2, 1870 The Evening Argus Rock Island, IL
Article from The Evening Argus, April 2, 1870

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Article Text

THE DAVENPORT SAVINGS BANK.- - From the Gazette of this morning we take the following : Yesterday morning the office of the Dav enport Savings Institution was removed from the First National Bank, where first established and for years sustained, to the room in the rear of the Citizens' National Bank, entrance on Brady street. This means, it must be supposed, that the officers of the bank have abandoned all hope of a favorable decision from Judge Richman on the motion to dissolve the injunction and diemiss the Receiver The latter official, J. M. Parker, Esq., will, therefore, continue to wind up the affairs of the institution, and its existence will soon have an end. Every depositor will be fully paid, and a surplus left for the stockholder.

2. April 14, 1870 The Evening Argus Rock Island, IL
Article from The Evening Argus, April 14, 1870

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Article Text

RUSH ON A DAVENPORT SAVING'S BANK, Receiver Parker of the Davenport Savings institution, has been much troubled, by a sim ultaneous demand of depositors for their money. He has paid out $123,000. Yesterday a numberof depositors were disappointed in no receiving their cash. The Gazette says that; They will have to wait a few weeks until the assets, which are ample, are turned into cash. After all are paid there will be $25,000 or $30,000 left for the stockholders. So says Receiver Parker.

3. December 9, 1870 The Evening Argus Rock Island, IL
Article from The Evening Argus, December 9, 1870

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Article Text

IMPORTANT DECISION. On the 3d of January last, the Davenport Savings Institution was by order of the court, enjoined from the further transaction of business, and the whole concern was placed in the hands of a receiver. This was done at the instance of two of the stock holders, Messrs. French and Davis, lumber merchants of that city, who averred that its officers had used the funds of the Institution in certain speculations to keep control of the First National Bank, they being the officers of both concerns. The appointment of a Receiver was considered just, by many, but not so, by the outs," who accordingly rook the matter up to the Supreme Court, where by an unanimous voice of the bench, the decision in the lower court was reversed as to every point involved. The Democrat gives the proceedings of thir last decision as follows : "That the injunction be dissolved immodiately ; taxes the cost of the appeal, expenses of the Receivership, including compensation for his services, together with all other costs of litigation, upon the plain. tiffa-Messrs- French & Davies. It directs the Receiver, upon a receipt of a certified copy of the order of the Court, to turn over the entire assetts and property of the Institution to the officers of the same, without any diminution except funds put out to deposition." This is a total and complete vindication of the Davenport Savings Institution. They had built up a splendid business, and the Supreme Court of the State decides that it was assailed without warrant of law, and metes out all the reparation it could do under this action. What more that Court will grant when the question comes up in another shape remains to be seen. The officers were to take charge of the Institution to-day.

4. December 15, 1870 The Evening Argus Rock Island, IL
Article from The Evening Argus, December 15, 1870

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Article Text

THE Davenport Savings Institution case, the appointment of a receiver, has cost the plaintiffs, Mesars. French & Davies, over $10,000. The Bank officers now talk of a suit for damages, as the Savings Institution will not be able to resume business. Should this suit go againt them, twenty thousand dollars will hardly see Messrs. French & Davies clear of this little game to regain control of the 1st National Bank.