3559. German American National Bank (Aurora, IL)

View Charter #4469 on SPMC

Bank Information

Episode Type
Run Only
Bank Type
national
Bank ID
4469
Charter Number
4469
Start Date
June 30, 1904
Location
Aurora, Illinois (41.761, -88.320)

Metadata

Model
gpt-5-mini
Short Digest
ba1e0989c1939d59

Response Measures

Accommodated withdrawals, Public signal of financial health, Capital injected, Books examined

Description

Multiple contemporaneous newspaper dispatches (dated around June 30–July 1, 1904) describe a depositor run on the German American National Bank in Aurora after cashier J. H. (Jacob) Plain confessed large shortages from speculative embezzlement. The run was short-lived (the crowd dispersed within hours), the bank paid out deposits (about $32k–$35k withdrawn), had substantial cash on hand and assistance/offers from local banks/individuals, and remained open — consistent with a run-only episode. OCR variations in articles produce slightly different shortage amounts ($55k, $65k, $90k, $120k reported); the dispatches consistently attribute the trigger to the cashier's misappropriation/speculation rather than rumor or external shocks.

Events (2)
1. November 15, 1890 Chartered
Source
historical_nic
2. June 30, 1904 Run
Cause
Bank Specific Adverse Info
Cause Details
Discovery and confession of large shortages/embezzlement by cashier J. H. (Jacob) Plain who had been speculating and misappropriating bank funds; this triggered depositor withdrawals.
Measures
Bank officials declared the institution prepared for the run, converted securities to cash, paid out withdrawals (about $32,744–$35,000 reported), accepted some redeposits and offers of assistance, and kept open extended hours to meet demands.
Newspaper Excerpt
Several hundred people today besieged the doors of the German-American National Bank, the cashier of which by his own confession is short $90,000 in his accounts.
Source
newspapers

Newspaper Articles (11)
1. July 1, 1904 The Daily Morning Journal and Courier New Haven, CT
Article from The Daily Morning Journal and Courier, July 1, 1904

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WOMEN BESIEGE BANK DOORS. Several Hundred Gather at Institution at Aurora, III. Aurora, III., June CO.-Several hundred people, mostly German women, today besieged the doors of the GermanAmerican bank, the I cashier of, which, Colonel J. H. Plain, by his own confession, is short $90,000 in his accounts. For three hours the officials attended to the wants of the people, and when the run ended the directors said $32,744 had been withdrawn. For three years Plain had been indebted to the bank, and the strain has left him a physical wreck. He attributes his misfortunes to speculations. He lost over $30,000 in Colorado lands, about the same in United States Steel, $18,000 in the Northern Pacific corner and $10,000 in corn.

2. July 1, 1904 Arizona Republican Phoenix, AZ
Article from Arizona Republican, July 1, 1904

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GASHIER'S SPECULATION How the Hole Grew Deeper in an Illinois Bank. Aurora, Ill., June 30. -Several hundred people today besieged the doors of the German-American National bank. the cashier of which by his own confession is short $90,000 in his accounts. For an hour there was no diminution of the crowd. Most of those clamering for their money were German women. Some carried babies in their arms as they lined up for their turn at the paying teller's window. A number of prominent citizens entered the bank during the rush and made large deposits. In three hours the run was apparently over. The directors said that $32,744 had been withdrawn. The defaulter is a physical wreck. For three years he had borne the ceaseless strain of trying to hide the hole in the bank's reserve fund, while the hole had been growing deeper and breader. In his confession of shortage, Cashier Plain attributed his downfall to "unfortunate speculation." His ambition to become a "landed proprietor" in Colorado was the aim of these speculations. "Everything went wrong," he said. His trouble began, he said, seven years ago. The first money he took was to pay for land in Sterling, Colo. Three years ago his speculations began. He lost $10,000 in a corn deal. This was followed by a loss of $18,000 in the Northern Pacific corner. Speculation in United States Steel stock, he said, was his final undoing. "Steel looked like a good thing," he said. "I bought it at 40. It went down to 11. I guess I lost $30,000 there."

3. July 1, 1904 New-York Tribune New York, NY
Article from New-York Tribune, July 1, 1904

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STEEL CASHIER'S UNDOING. Frightened Women Besiege Bank He Robbed of $90,000. Aurora. Ill., June 30.-Several hundred people today besieged the doors of the German-American Bank, the cashier of which, Colonel J. H. Plain. by his own confession. is short $90,000 in his accounts. For an hour there was no diminution of the crowd. Most of those clamoring for their money were German women. Some carried bables in their arms as they lined up for their turn at the paying teller's window. Huge stacks of gold, silver and currency were piled on the counters. A number of prominent citizens entered the bank during the rush and made large deposits, but even this failed to reassure the frightened women. The bank officials declared the institution prepared for the run. Most of the withdrawals were said to be by small depositors. In three hours there was no one in front of the paying teller's window and the run apparently was over. The directors said that $32,744 had been withdrawn. The defaulter is a physical wreck. In his confession he attributed his downfall to "unfortunate speculation." Ambition to become a "landed proprietor" in Colorado was the aim of these speculations. Speculation in United States Steel stock, he said, was his final undoing.

4. July 1, 1904 Evening Star Washington, DC
Article from Evening Star, July 1, 1904

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The President's Action. "The President, acting upon the recommendation of the Secretary and the judge advocate general, has mitigated the penalty imposed by the court, and directed that the original recommendation of the court of inquiry be carried out and that Paymaster Biscoe be reprimanded for neglect of duty. This has accordingly been done, and the case is closed." WOMEN BESIEGED BANK. Cashier's Shortage Starts a Depositors' Run at Aurora, Ill. A dispatch from Aurora, Ill., last night says: Several hundred people today besieged the doors of the German-American Bank, the cashier of whom, Col. J. H. Plain, by his own confession, is short $90,000 in his accounts. For an hour there was no diminution of the crowd. Most of those clamoring for their money were German women. Some carried babies in their arms as they lined up for their turn at the paying teller's window. Huge stacks of gold, silver and currency were piled on the counters. A number of prominent citizens entered the bank during the rush and made large deposits, but even this action failed to reassure the frightened women. The defaulter is a physical wreck. For three years he had borne the ceaseless strain of trying to hide the hole in the bank's reserve fund while the hole had been growing deeper and broader. Discovery finally came, and, confronted with the charge of taking the bank's funds, the cashier confessed to a shortage of $40,000. Further examination raised this amount to over $55,000, and after the officials had unearthed all the worthless items Cashier Plain himself pointed out $32,000 worth of bonds which he said he had sold an investor and carried on the books as the property of the bank. In his confession of the shortage Col. Plain attributed his downfall to "unfortunate speculation." Ambition to become a "landed proprietor" in Colorado was the aim of these speculations. "Everything went wrong," he said. Plain, who is forty-six years old, declared he never gambled at cards or bet on horse races. His trouble began, he said, seven years ago, when his wife died. The first money he took was to pay for land at Sterling, Colo. Three years ago his speculations began. He lost $10,000 in-a corn deal. This was followed by a loss of $18,000 in the Northern Pacific corner. Speculation in United States Steel stock, he said, was his final undoing. "Steel looked like a good thing," he said. "I bought it at 40. It went down to 11. I guess I lost $30,000 there."

5. July 1, 1904 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, July 1, 1904

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Bank Besieged. Chicago, June 30.-Several hundred people today besteged the doors of the German-American bank, Aurora, Ill., the cashier of which by his own confession is short $90,000 in his accounts. For an hour there was no diminution of the crowd. The bank officials declared the institution prepared for the run. Most of the withdrawals were said to be by small depositors.

6. July 2, 1904 The News & Observer Raleigh, NC
Article from The News & Observer, July 2, 1904

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A SPECULATIVE PATH TO RUIN. Col. Plain $90,000 Short in His Accounts-Tells the Story of His Downfall. (By the Associated Press.) Aurora, Ills., June 30.-Several hundred peoplè today besieged the doors of the German-American bank, the cashier of which, Colonel B. H. Plain, by his own confession, is short $90,000 in hisaccou nts. For an hour there was no diminution of the crowd. Most of those clamoring for their money were men and women, some of whom carried babies in their arms, lined up to await their turn at the paying teller's window. In three hours there was no one in front of the paying teller's window and the run apparently was over. The directors said that $32,743 had been withdrawn. The defaulter is a physical wreck. For three years he had borne the ceaseless strain of trying to hide the hole in the bank's reserve fund, while the hole had been growing deeper and broader. Discovery finally came and confronted with the charge of taking the bank's fund the cashier confessed.

7. July 2, 1904 The Washington Times Washington, DC
Article from The Washington Times, July 2, 1904

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"HONEST" CASHIER SHORT; FOLLOWED MANY EXAMPLES AURORA, III., July 2.-The run on the German-American National Bank ceased yesterday morning. "Honest" Jacob Plain, it develops, has taken $30,000 from his friends, borrowed on notes without collateral. This, too, was lost in Steel stocks. It makes his total shortage $120,000. "I simply did what half your successful cashiers in Chicago have done," said "Honest" Jacob, former cashier of the German-American National Bank, and confessed embezzler of $90,000, today. "In my case," he continued, "the result was disaster; in their case it is success. Everything depends on the turn of the cards."

8. July 7, 1904 Bisbee Daily Review Bisbee, AZ
Article from Bisbee Daily Review, July 7, 1904

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Just Did What Others Have Done' SAID THE BANK CASHIER IN ILLI NOIS AFTER SWIPING NINE. TY THOUSAND. Look at the Case of One Banker; Ten Years Ago He Had Not Enough Mon. ey to Pay a Hotel Bill: Today He's a Millionaire," Continued Jacob H. Plain. Aurora, III., July 5.-"I simply did what half your successful cashiers in Chicago have done," said Jacob H. Plain, former cashier of the GermanAmerican National Bank and confessed embezzler of $90,000. when asked today if he thought he had done an exceptional thing when he used the bank's funds to speculate with. "In my case," he cantinued, the result was disaster: in their case it was success. Everything depends on the turn of the cards. Look at the case of one very prominent banker-ten years ago he had not enough money to pay a hotel bill; today he is a millionaire. Do you think he saved it out of his saiary?" Stacks of gold coins, piles of yellow and greenback notes and bags of silver surrounded the paying teller of the German-American National Bank at Aurora whie the bank opened its doors for business this morning. There was nearly $150,000 within reach of the teller in anticipation of the run on the bank following publication of Pa.n's doings. The run came, but it was slight, and subsided by noon. Those who withdrew their deposits were small customers of the bank, having not more than $200 to $1,000 each on deposit. Large customers expressed confidence in the soundness of the institution by placing more money on deposit or by offering loans. Their assistance was not needed. The bank for several weeks has been preparing for the run by converting securities into cash and calling iin loans. At the end of the day officers expressed themselves as more than satisfied with the confidence shown in them by the public. "We have paid out about $35,000 and taken in about $10,000," said M. E. Pain, the acting cashier of the bank. "Our net payment for the day is therefore only $25,000. This is less than we usually pay out on pay days for the Burlington road; our total payments on Burlington checks alone have run to $40,000. The run, therefore amonuts to nothing. We do not for to morrow, expect payment any considerable but of demands all that are made will be honored. The bank hag $200,000 in cash and is as sound as it ever was." No loans have been asked by the bank, according to its officers, and none will be needed. Most of the funds have been kept on deposit in Chicago, and $50,000 was sent out to day from the National Bank of the "This was our own Republic. money, kept in Chicago for the advant. age of the interest," said the acting cahier: "Offers of assistance have been made by local banks, but assistance is not needed." Most of the bank's customers are Germans. Prominent business men, speaking the German language, did much to quiet the fears of those wa.ting to demand money by express`ing confidence in the bank to those in the line. The bank kept open until 4 p. m., an hour later than usual, to give all an opportunity to withdraw deposits but hardly a demand was made after 1 p. m. One of the wealthiest men of Aurora, C. H. Smith, president of the Western Wheel, Scraper company. the brought Cashier M. tears E. to Plain early eyes in of the Acting day by offering $10,000 of his personal money to help the bank out. There were other offers of the same sort. James Mc Credle, a coal merchant, who has never been a customer of the bank. drew $1,400 from another bank and $400 from his safe and placed the total on deposit in the German-American. President E. B. Mix of the First National Bank, who is said to he one of the most conservative bank-

9. July 8, 1904 The Colfax Gazette Colfax, WA
Article from The Colfax Gazette, July 8, 1904

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OCEANS Concise Summary of the Wired News of a Week. Important Happenings and Things of Interest from All Over a Great Country. Wednesday, June 29 The prohibition party is holding national convention in Indianapolie. Gen. Quite a boom is in progress for Nelson A. Miles for president. The town of New Boston, Arkansae 25 miles south of Texarkana, has been wiped out by a tornado and several people killed. The advance guards of delegates to the national democratic convention are gathering in St. Louis. The chances favorable for a warm time among the Bourbons. Jacob H. Plain, cashier of the GermanAmerican National Bank of Aurora, III., has been arrested, charged with the misappropriation of $65,000 of the funds of the bank. Over 500 homes, business houses and schools, A short distance from Pittsburg, Pa., have been inundated by a cloud buret. One life is known to have been lost. Fire has devastated the lower half of the village of Lake Placid, N. Y., a wellknown summer resort. A rainstorm set dein and saved the town from utter struction. Thirty-nine men deported from Cripple Creek under military escort,have arrived in Denver and joined the colony of exiles already located there. This colony numbers over 200 men and they have organized a local union affiliated with the Western Federation of Miners. Thursday. June 30. The prohibition party in national con vention at Indianapolis, Ind. has nominated Silas C. Swallow of Penneylvania for president and George W. Carroll of Texas for vice president. A ealoon at Walkerville, Mont., was entered by masked men and $1000 i money and valuables secured from the proprietor and inmates. The robbers escaped. After a trip around the world, John Alexander Dowie has arrived in Chicago. Dowie will now answerin the bankruptcy court, the proceedings having been brought before his departure for Aue tralia. W.H. Maxwell, euperintendent of in atruction of New York City, has been elected president of the National Educational Association which has been in convention in St. Louis. The postmaster general has declined the request of the Louis & Clark exposi tion authorities for the issuance of special series of postage stamps com memorative of the exposition. The steel trust earnings for the June to quarter are over $18,000,000. ample cover in full the preferred dividend. Friday, July 1. Two distinct lines of operation have developed in the preliminary ekirmish ing of the democratic national convention in St. Louis. One is a scheme to rush the nomination of Judge Parker on the first and second ballot, and the other is to scatter votes 80 as to prevent of an early nomination with a view naming Cleveland or Gorman. A fierce forest fire is raging in the mountains near Tombstone, Arizona Much valuable timber and considerable mining property is being destroyed. The Fidelity Savings Association of Denver, Colo., has gone into the hands of receiver. Liabilities are placed at $1,000,000. Two prominent society and club men Minneapolis, Minn., have received fatal of injuries and five other persone were seriously injured by the explosion of gasoline launch on Lake Minnetonka, near that city. The census bureau has issued its bulletin on the negro population. There are 9,204,531 negroes in the United States, found perhaps a larger number than is in any country outside of Africa. Seven thousand one hundred minere in the employ of the various corporations have the Birmingham Ala., district in suspended work, pending the adoption of a new scale of wages. Saturday. July 2. President Roosevelt has arrived at a Oyster Bay, L. I., and was given great reception by his neighbors. Two women and a man, occupants of a automobile that crashed into an motor train in New York, are badly in jured. The women will probably die. Judge Lanning has signed a final de in the United States circuit court at cree Trenton, N. J., ordering a sale of the in United States Shipbuilding Company by foreclosure proceedings instituted the the Mercantile Trust Company and New York Security & Trust Company The two mortgages held by them are $16,000,000 and $10,000,000 respectively. Nearly 1500 employes of the Pullman Company have been laid off at the Officers Pull car shops near Chicago. of man the company declare that it is neces the to cut down expenses and that sary orders on hand do not require 80 large force. Senator J. R. Burton of Kaneas, convicted of accepting money from a com under investigation by the postpany office department, has been granted an appeal to the supreme court by Judge of St. E B. Adams of the district court Louis. Sunday. July 3. The Chicago Limited on the Wabash railroad, a half hour late and running miles per hour, was wrecked inside 50 limits of Litchfield. Ill. Twenty f the city are dead and about 40 more or less persons seriously injured. The engine ran into an open switch and struck a freight and standing on a eiding. The engine the first three coaches were piled in a heap and consumed by fire. William J. Bryan has arrived at the Jefferson hotel in St. Louis and is one of

10. July 15, 1904 The Herald-Advance Milbank, SD
Article from The Herald-Advance, July 15, 1904

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Domestic. F. Augustus Heinze denies that a deal has been effected whereby he will relinquish his Butte holdings to the Amalgamated. The Baltic, the new steamer of the White Star line and the largest vessel afloat, sailed from Queenstown for New York on its maiden trip. While no final action has yet been taken on the latest offer by D. J. Sully for a settlement at 40 per cent, it is believed that the committee will agree. Gen. J. L. Lewis, famous as the commander of the "Orphan Brigade" in the Confederacy, dropped dead at Frankfort, Ky. He was chief justice of the court of appeals over twenty years. Thomas E. Watson of Georgia for president and Thomas V. Tibbles of Nebraska for vice president was the ticket nominated by acclamation by the Populist national convention at Springfield, Ill. After having been suspended since last fall, ore is again being hoisted from the Consolidated Lake Superior company's Helen mine, in the Michipi coten district of Ontario. New ma. chinery has been installed. The resignation of Charles M. Schwab, former president of the Unit ed States Steel corporation, as a director of the corporation, it is announced, will be accepted at the quarterly board meeting in July. The United Fruit company will es. tablish throughout the entire scope of their distribution in this country, says the New York Journal of Commerce, the system of selling bananas by weight instead of by the bunch. Thirty-five hundred packing house employes in East St. Louis have voted that the wages of the laborers must be increased from 15 cents an hour to 18½ cents. Similar meetings have been held in Chicago, Kansas City, St. Joseph and Omaha. The Louisville school board has instructed the high school committee to inform four Filipino students who ap. plied for admission to the Dupont manual training high school that their color debars them from the privileges of the public schools. At the annual meeting of the stockholders of the Lewis and Clark exposition at Portland, Ore., President Harvey W. Scott tendered his resigna tion, which was accepted. The rea son assigned by Scott is failing health. His successor has not yet been se lected. "There will never be another silver dollar coined in this country," said George T. Roberts, director of the United States mint at Portland, Ore., "unless by some chance a 16 to 1 congress should be elected, for the supply of silver bullion purchased under the Sherman act is exhausted." Several hundred people besieged the doors of the German-American bank at Aurora, III., the cashier of which by his own confession, is short $90,000 in his accounts. The bank officials de clared the institution prepared for the t run. Most of the withdrawals were said to be by small depositors. Little six-year-oid Harry Norton of n r Alta, Mass., saved his eight-year-old brother Artie from a horrible death e by an act of bravery. Artie fell from the top of a fence into a pigpen and d was set upon by an enraged sow, and would have been killed but for the in interference of his little brother, who climbed into the pen and beat off the e brute with a stick. Gen. Piet Cronje of Boer war fame f was married to Mrs. Stertzael, the widow of a Boer soldier. The cere d mony was performed in the Boer camp at the world's fair.

11. August 6, 1904 The Washburn Leader Washburn, ND
Article from The Washburn Leader, August 6, 1904

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Domestic. a F. Augustus Heinze denies that deal has been effected whereby he will the relinquish his Butte holdings to Amalgamated. The Baltic, the new steamer of the White Star line and the largest vessel for afloat, sailed from Queenstown New York on its maiden trip. While no final action has yet been taken on the latest offer by D. J. Sully is for a settlement at 40 per cent. it believed that the committee will agree. Gen. J. L. Lewis. famous as the com- in mander of the "Orphan Brigade" the Confederacy. dropped dead at Frankfort. Ky. He was chief justice of the court of appeals over twenty years. Thomas E. Watson of Georgia for president and Thomas V. Tibbles the of Nebraska for vice president was ticket nominated by acclamation by at the Populist national convention Springfield, Ill. After having been suspended since last fall, ore is again being hoisted from the Consolidated Lake Superior company's Helen mine, in the Michipicoten district of Ontario. New machinery has been installed. The resignation of Charles M. Schwab, former president of the Unit- died States Steel corporation, as a rector of the corporation, it is an. nounced, will be accepted at the quarterly board meeting in July. The United Fruit company will establish throughout the entire scope of their distribution in this country, saya New York Journal of Commerce, by the the system of selling bananas weight instead of by the bunch. Thirty-five hundred packing house voted employes in East St. Louis have that the wages of the laborers must to be increased from 15 cents an hour have cents. Similar meetings St. 18 1/2 been held in Chicago, Kansas City, Joseph and Omaha. The Louisville school board has in to structed the high school committee inform four Filipino students who applied for admission to the Dupont their manual training high school that color debars them from the privileges of the public schools. At the annual meeting of the stock of the Lewis and Clark expo holders sition at Portland, Ore., President Harvey W. Scott tendered his resigna- reawhich was accepted. The health. tion. assigned by Scott is failing seson His successor has not yet been lected. will never be another silver said "There coined in this country," the dollar T. Roberts, director of Ore., George United States mint at Portland, 1 by some chance a 16 to con"unless should be elected, for the supply the gress of silver bullion purchased under Sherman act is exhausted." Several hundred people besieged bank the of the German-American doors Aurora, Ill.. the cashier of $90,000 which, at his own confession. is short officials deby accounts. The bank the in his the institution prepared for were clared Most of the withdrawals said run. to be by small depositors. six-year-old Harry Norton of Little Mass., saved his eight-year-old death Alta, Artie from a horrible from brother act of bravery. Artie fell and by an of a fence into a pigpen and the top set upon by an enraged sow, the inwas have been killed but for who would interference of his little brother, the climbed into the pen and beat off brute with a stick. Piet Cronje of Boer war fame the Gen. married to Mrs. Stertzael, was of a Boer soldier. The ceremony widow was performed in the Boer camp at the world's fair. Acting on instructions from Rome, have authorities at Messina, Italy, the arrested the Capt. E. R. Colesse of army and his wife CD a charge of Italian high treason in selling to agents of foreign power plans for the mobilization a of the Italian army in Sicily.