American Savings Bank & Trust Company

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: trust company
Start Date: June 16, 1932
Location: Burlington, Iowa (40.808, -91.113)

Metadata

Model: gpt-5-mini
Short Digest: 17ae56aa

Response Measures

Full suspension

Other: Receivership/dividend payments followed the suspension; merger litigation later validated.

Description

Newspaper articles describe a run on the bank on June 16, 1932 (refused to cash CDs, testimony about conversations during the run), followed by a suspension/closing reported June 19, 1932. By September 1933 the bank is in receivership paying dividends, indicating it did not reopen and was permanently closed. Cause of the run/suspension is described as depositor panic/rumors. No specific false telegram or corrected misinformation is described, so random_run is False.

Events (3)

1. June 16, 1932 Run

Cause: Rumor Or Misinformation
Cause Details: Depositor panic and rumors leading to heavy withdrawals; testimony references a run on June 16, 1932 and refusal to cash certificates of deposit.
Measures: Cashier/refusal to cash certain certificates of deposit; staff interactions recorded in trial testimony.
Newspaper Excerpt: the run on the bank. June 16, 1932, and also concerning certificates of deposits he had refused to cash.
Source: newspapers

2. June 17, 1932 Suspension

Cause: Rumor Or Misinformation
Cause Details: Bank closed (suspended) after depositor withdrawals and panic; article dated 1932-06-19 says depositors gathered Friday morning when a notice announcing suspension was posted (Friday = June 17, 1932).
Newspaper Excerpt: the notice announcing the suspension of the bank and depositors gathered in the group at the doors ... time for opening the doors. ... the notice announcing the closing suspension of the bank
Source: newspapers

3. September 15, 1933 Receivership

Newspaper Excerpt: the largest dividend being paid Sept. 15 by the American Savings Bank & Trust Co. of Burlington. The dividend of $430,641.71 amounted to 10 per cent.
Source: newspapers

Newspaper Articles (4)

1. April 27, 1932 The Daily Times Davenport, IA

Article from The Daily Times, April 27, 1932

Click image to open full size in new tab

Article Text

American Merger Is Validated by Judge's Action Scott Holds Claims of Walsh and Others Not Preferred The claims of former stockholdand of the old Citidepositors Trust Savings bank, of Walsh and cluding those others for the recovery of approximately $70,000 in stocks and tificates of deposit from the ceivers the American Savings Bank Trust Co., were denied ruling handed by Judge Scott in district court today. The action of the court also validates the the Citizens merger bank with the American it was this question which was raised by the plaintiffs in their suit to have their claims preferred. The court's ruling in the lawtried denies with two exceptions claims stockholders assets of the former Citizens' bank, part the American bank and the hands of the American bank receiver. Involved Claims Approximately 12 claims were the litigation, three claims of and eight those of former depositors in Citizens' Trust Savings bank. One claim for two shares stock amounting to $320 brought Herron upheld by the court, the claim being by the Amerbank. Herron the time bank merger Europe and not of the merin plans, the court holding that was therefore entitled cover. The attack on the bank merger made form objections to the American bank receivreport and was tried principally claim of Frank Riling Burlington, trusThe objector asked that his claim preferred and was the first the series claims and objections raised by various stockholders the Citizens bank. Merger Approved Counsel superintendent of banking and receiver in charge affairs the Ameribank, defended the merger plans the court that the merger had been approved stockholders of both and that every effort had been made to carry out the terms the merger prior the closing the American bank last fall. Interests of the claimants in the trial were represented by AttorPoor of Burlington associated with former Senator Cowles, also of Burlington. The banking department of the Ameribank was represented by Lane Waterman, Attorney James Bollinger and Hamann.

2. June 19, 1932 The Burlington Hawk-Eye Burlington, IA

Article from The Burlington Hawk-Eye, June 19, 1932

Click image to open full size in new tab

Article Text

THE PARADE VIEWING without or To foes, world sketch Exactly as goes. in Chicago National Convention Republican Bank American Savings the closing have been the Burlington, company, few these past in Burlington of conversation topics speakcase, except always days. public over-shadowed in the situation national affair. the attitude in take the same is cannot Why and local pollics? to national regard the election of would but realize If the public of members the city council, of members mayor, direct really more board of supervisors the of of the people the welfare happiness bearing of certain man the election than given possibly have. United States can of the president the proper man of has very direct state legislature community in the and local conditions are, local conditions bearing upon of course, all-important. convention was the interest in the Chicago for re-submission the plank calling of the of the to people prohibition question various states. out that the plank of course point Critics not definite enough. province of political It hardly the to method. The into details in its platform. to for that Nor any people select of the that majority political party firmly method thus far sugany people recent years, and has been clamor gested. the should months, that people in recent especially not they desire to decide whether or be allowed The republican continue prohibition must be its platform Chicago, says party, that any given that opportunity, question provide handling liquor method those by federal for protection manufacture and which elect to forbid the states of things in connection of the most Bank and of the American Savings with the closing the attitude Trust Friday morning, was front the bankof depositors gathered in the group the doors. to time for opening the notice announcposted suspension of of the bank and ing the closing duty perform many has had this unhappy ness, has never seen crowd times in other citles orderly and depositors conduct did these Burlingtonians, philosophical manner as Friday is what they should That man have done days the depositors themAnother remarked that only another the selves were blame opinion that just as quickly as all realized clamp will show no favoritism, banks down that the who attempting to make unusually leave rest content to large ordinary conduct of in the banks for the their money business. That is just what banks are doing and the there is no such thing as public assured that favored depositor. of the American Savings The story of the closing Bank company merely the First Iowa in February. the story the closing American deposits Two ago, began. No were the constant until great sums, at but that protect all became evident one way bank. There not the to close the depositors affairs of the bank doubt but what, when the slightest depositors receive practically but is to take time all they on deposit, going the bank's assets. liquidate transacted their business Had the depositors occasion for the there would have been usual, that befell Burlington, Friday morning. calamity to condemn persons who, This is effort having practically their all on depsit, became panicky but too when they heard others were cannot be given those who try much condemnation those who either outsmart their neighbors maliciously spread rumors that they thoughtlessly or take the trouble to confirm. do nation and the world going Burlington, the until neighborly confidence come When one neighbor cannot trust again restored. greed predominate, all when selfishness and must suffer. This lack of faith and trust in neighboring countries makes causes friendly and asted. People their minds become warped by distrust, kindly and suspicion. world needs mental and moral whole awakening. national working for CRUSADERS, organization of the Eighteenth amendment, have gone the repeal big way. the delegates began in for publicity for the Republican National assemble Chicago had labeled "Old Convention, the Crusaders dummy from an airplane into Lake Man Prohibition" thrown Parachute dropped from another Michigan. jumpers plane made rescue attempt. needed, is that big idea, case diagram hoped the convention would take simthe Crusaders drastic action the present prohibition set-up. Harly element of humor in and for The stunt had ought be thankful perhaps. There that and no humor has anger all discussions for against that neither humor fanaticism The sad fact of the matter. The problem. when the heart gets solved while opposing never or indulge in childish stunts. sides call names bitterly

3. June 13, 1933 The Des Moines Register Des Moines, IA

Article from The Des Moines Register, June 13, 1933

Click image to open full size in new tab

Article Text

LAWYERS WAR IN BANK TRIAL Co-defendant Refuses to Answer Questions. Register's Iowa MOUNT PLEASANT, IA. Charges of unprofessional conduct hurled at Assistant States Attorney Carl Riepe by C. C. Clarke, of the defense counsel, Monday brought tense moment in the trial of T. W. Kreichbaum, former president of the American Savings Bank and Trust Co. of Burlington, Ia., for receiving a deposit knowing the bank was insolvent Late Monday the state called witness, E. W. Wischraeier, former assistant cashier of the closed bank and co-defendant with Kreichbaum. Wischmeier's trial will follow here. In Courtroom. Wischmeier was not subpenaed, but was sitting in the courtroom. Defense Attorney Clarke protested, branding the prosecution's conduct as "unprofessional." Judge George Dashiell of Albia, Ia., ruled Wischmeier could be questioned, but could not be forced to reply and explained his constitutional rights to refuse to answer incriminating questions. Questioned. Riding over defense objections, the prosecution queried Wischmeier relative to his conversations with Kreichbaum during the run on the bank. June 16, 1932, and also concerning certificates of deposits he had refused to cash. Wischmeier refused to answer and Judge Dashiell adjourned court after warning the jury that "the scene we have just witnessed and the conduct of counsel has nothing to do with the guilt or innocence of the defendant Four Others. "This is the first time in my long practice that have ever ex. perienced such conduct on the Stolen Car. part of opposing counsel," Clarke The bandits used car in rob. said. bing the bank that was stolen in Four witnesses in addition to Des Moines Thursday night, four days ago, from Rollin Anderson, 21, as he was parked at the side WEATHER of a road with young woman. The youth was shot and wounded. The bandits left this car, Ford sedan, when they transferred to the Buick. Late Monday afternoon, Aelis Generally fair today; warmer two daughters, about 18 and 20, in extreme west portion. and son, 15. were brought to the sheriff's office for questioning. Children love home-made root Two bandits, dressed in overalls beer. Give them all they want. It' good for them. and carrying an egg crate in which T&T Root Beer Extract is they had concealed their guns and and genuine, but costs only money sacks, entered the bank. half as much as been They forced Cashier Doughman to paying. None better at any open the vault. price. At your She Wasn't Robbed. Mrs. Sadie Myers entered the bank while the robbery was in progress to deposit more than $200. "Oh!" she exclaimed, when threatened by one of the bandits, "you are robbing the bank. But with rare presence of mind she secreted her $200, so the bandits didn't rob her.

4. October 1, 1933 The Des Moines Register Des Moines, IA

Article from The Des Moines Register, October 1, 1933

Click image to open full size in new tab

Article Text

BANK RECEIVERS PAY $1,231,000 Election Involves More Than Fate of Candidates September Dividends Fight Raises Curtain Listed by Bates. on 1934 State Iowa banks in receivership paid a total of $1,231,927.79 in divi- Campaign. dends during September, the report for the month by D. W. Bates, state superintendent of banking, showed Saturday. Seventeen banks declared dividends during the month. the largest dividend being paid Sept. 15 by the American Savings Bank & Trust Co. of Burtington. The dividend of $430,641.71 amounted to 10 per cent. The second largest dividend amounting to 38 and representing 30 per cent was paid by the Delaware County State bank of Manchester, Sept. 1. Creditors Get Payment. A dividend of 899 85 was paid by the Union Trust & Savings bank of Dubuque in a 10 per cent payment Sept. 20. The greatest percentage of the total deposits in any bank paid in a dividend during the month was 32 per cent paid Sept. 20 by the Peoples Savings bank of Des Moines. The dividend of $50,261.03 differed from the other dividends in that it went to creditors rather than depositors of the bank in connection with the merger of the People's Savings bank with the Bankers Trust Co. several years ago. Called "Satisfactory." Superintendent Bates said the dividend payment record of the one Other dividends paid by Iowa banks in September were: Corn Belt Savings bank, Cedar Rapids, 10 per cent, $60,059.69 Sept. 12; Corley Farmers Savings ers Savings bank. Cushing, 10 per cent, $7,054.64 Sept. 18; Farmers & Merchants Savings bank, Durant, 5 per cent, $40,861.65, Sept. 21. 10 Per Cent at Haskins. Farmers and Merchants Savings bank, Haskins, 10 per cent, $8.274.62, Sept. 25; Farmers & Traders Savings bank, Hillsboro, 15 per cent, $10,972.16, Sept. 19 Citizens Savings bank, Lester, 10 per cent, $18,769.8 Sept. 21. Lockridge State bank. Lock ridge, 10 per cent, $12,878.87 Sept. 21: Monteith Savings bank, Monteith, 15 per cent, $7,314.44 Sept. 22: American Savings bank Muscatine, 5 per cent, $58,519.71 Sept. 25; Thornburg Savings bank, Thornburg, 20 per cent, $11,244.59, Sept. 28. $7,640 at Truro. Truro Savings bank, Truro, 10 per cent, $7,640.90. Sept. 22; Peoples State bank, Winthrop, 10 per cent, 9,846.77 Sept. 28. One of the 17 banks paid its fourth dividend, five paid third dividends and four second dividends.