3684. Bank of Commerce (Chicago, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
June 25, 1932
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
eaaabd81b6a5ed79

Response Measures

None

Description

Multiple June 25, 1932 articles report an incipient run on the Chicago Bank of Commerce that Melvin Traylor quelled temporarily by public pleas; the bank was closed the same day by State Auditor Oscar Nelson at the request of its board and later placed in receivership (receivers' reports and court actions appear in later months). Classification: run leading to suspension and permanent closure with receiver assigned.

Events (3)
1. June 25, 1932 Run
Cause
Rumor Or Misinformation
Cause Details
Articles report an 'incipient run' promoted by an alleged 'well-planned plot' or 'enemies' and public fear from recent closings; Traylor publicly pleaded for confidence to stem withdrawals.
Measures
Melvin A. Traylor appeared on the banking floor, pleaded for confidence; extra tellers were put on duty and depositors who wanted money were paid.
Newspaper Excerpt
Both banking floors were crowded with customers, a large number of whom apparently intended withdrawing accounts because of fear engendered by recent closings.
Source
newspapers
2. June 25, 1932 Suspension
Cause
Government Action
Cause Details
Closed by the State Auditor (Oscar Nelson) at the request of the bank's board on June 25, 1932, following runs and banking distress in Chicago.
Newspaper Excerpt
Chicago Bank of Commerce, loop bank with deposits of $5,200,000, was closed today by State Auditor Oscar Nelson at the request of its board of directors.
Source
newspapers
3. July 1, 1932* Receivership
Newspaper Excerpt
Chicago Bank of Commerce, receiver, reports 100 per cent occupancy May 31; ... CHICAGO BANK OF COMMERCE. [Closed June 25, 1932.] ... receivers' reports on closed banks were published later in the year, and court actions against former officers are reported in December 1932 articles concerning the receiver's business and alleged diversion of funds. (Dec. 10 article.)
Source
newspapers

Newspaper Articles (11)
1. June 25, 1932 The Cleveland Press Cleveland, OH
Article from The Cleveland Press, June 25, 1932

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Article Text

FOUR MORE CHICAGO BANKS ARE CLOSED Total for Month Is 40; Loop With. drawals Are Heavy By United Press CHICAGO. June Four more Chicago and suburban banks failed to open for business today, one of them a Loop bank with $5,000,000 deposits. Heavy withdrawals continued the big Loop banks where all depositors who wanted their money were given it. Extra forces of tellers were on duty. The closings today shade a total of 40 this month The banks which closed today were: Chicago Bank of Commerce South Ashland National First Na. tional of Wilmette. and North Brook 1953

2. June 25, 1932 The Evening Journal Wilmington, DE
Article from The Evening Journal, June 25, 1932

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Article Text

FOUR CHICAGO BANKS, LARGE, CLOSED June loop with deposits of was closed today by State Auditor Oscar Nelson request its board directors This the change Loop banks although neigh boring Michigan vard. the Peoples Trust and Savings closed for liquidaasked its to for their money The Chicago Bank of Commerce had capital and $750,000 closed today were the Others Northbrook Bank situated with the South Ashland Na deposits with deposits the First National Bank North Shore with

3. June 25, 1932 The Knoxville News-Sentinel Knoxville, TN
Article from The Knoxville News-Sentinel, June 25, 1932

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FOUR CHICAGO BANKS CLOSED One Is Big Loop Institution, Heavy Run on Others. By United Press Four more Chicago and suburban banks failed to open for business Saturday one of them Loop bank with 000 posits. Heavy withdrawals continued the Loop banks where all depositors who wanted their money were given Extra forces tellers duty The closings a total of 40 month The banks which closed Saturwere Chicago Bank Commerce capital South Ashland National (SouthFirst National of Wilmette, ital deposits unavailNorthbrook State (Suburban capital deposits $

4. June 26, 1932 The Plain Dealer Cleveland, OH
Article from The Plain Dealer, June 26, 1932

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Article Text

Traylor Addresses Depositors; Balks Run on Two Banks CHICAGO June Melvin Traylor, considered by many presidential itemmed an on his First First Union Trust Sav ngs and pleading for faith. who is president of both the three largest the for demonstration against the had been laid and the had taken steps to put more liquid than Both crowded large number of intended withdraw ing fear ered by recent closings Four ings today one brought to the here this bank will during the usual and will open on Monday morning Traylor told will be willing and off any depositor who to alleged plot. Traysaid This promoted by those are not your friends friends Fortunately are the best posiin our history Please tell your neighbors will open Mon day morning and every morning at The thinned after had spoken and an bank attaches had been restored The Loop bank close was the Bank of Commerce with had absorbed the Bank of last September assets are understood deposits

5. June 26, 1932 Evening Star Washington, DC
Article from Evening Star, June 26, 1932

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Article Text

TRAYLOR CHECKS RUN ON HIS BANKS Plea for Faith Wins at Two Institutions.- Plot by "Enemies" Charged. By the Associated Press. CHICAGO, June 25.-Melvin A. Traylor, considered by many Democratic presidential timber, stemmed an incipient run on his $25,000,000 First National Bank and $10,000,000 First Union Trust & Savings Bank today by appearing on the banking floor and pleading for faith. Traylor, who is president of ooth banks-among the three largest in the city-declared a well-planned plot for a demonstration against the banks had been laid by "enemies" and said the banks had taken steps to put themselves in a more liquid condition than ever before. Able to Pay Off, He Says. Both banking floors were crowded with customers, a large number of whom aparently intended withdrawing accounts because of fear engendered by recent closings. Four closings today, one in the Loop, brought to 39 the number of banks here that have shut down this month. "The bank will be open during the usual business hours and will be open Monday morning," Traylor told patrons. "It will be willing and able to pay off any depositor who wishes to withdraw his funds." Referring to the alleged plot, Traylor said: "This was promoted by those who are not your friends or our friends. Fortunately, we are in the best position in our history. Please tell your neighbors that we will be open Monday morning and every morning at 9 o'clock." Crowds Disperse Quickly. The crowds quickly thinned after he had spoken and within an hour, bank attaches said, normalcy had been restored. The Loop bank to close was the Chicago Bank of Commerce with $5,200,000 deposits. It had absorbed the Union Bank of Chicago last September. Its assets are understood to cover deposits. Three other banks in outlying sections closed. two of them in North Shore suburbs-the First National Bank of Wilmette and the Northbrook State Bank The fourth was the South Ashland National Bank. These three together had about $1,000,000 deposits.

6. June 26, 1932 Springfield Leader and Press Springfield, MO
Article from Springfield Leader and Press, June 26, 1932

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Article Text

FLOORS CROWDED Both banking floors were crowded with customers large number of whom apparently intended withdrawing accounts because of fear engendered by recent closings. Four closings today, one the Loop, brought to 39 the number of banks here that have shut down this bank will be open during the usual business hours and will Monday Traylor told open patrons. willing and to off depositor who pay any wishes to withdraw his funds.' ALLEGES PLOT Referring to the alleged plot, Traylor said: "This was promoted by those who are not your friends nor friends. Fortunately, in the best position in our history. Please tell your neighbors that will be open Monday morning and every morning The crowds quickly thinned after he had spoken and with an hour, bank attaches said, normalcy had been restored. The loop bank close was the Chicago Bank of Commerce with $5,200,000 deposits.

7. June 26, 1932 Corpus Christi Caller-Times Corpus Christi, TX
Article from Corpus Christi Caller-Times, June 26, 1932

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Article Text

Run on Chicago Bank Stemmed as Melvin Traylor Pleads for Faith Chicago, June 25.-(P)-Melvin A. Traylor, considered by many as Democratic presidential timber, stemmed an incipient run on his $25,000,000 First National bank and $10,000,000 First Union Trust and Savings bank today by appearing on the banking floors and pleading for faith. Traylor, who is president of both banks-among the three largest in the city-declared well-planned plot for demonstration against the banks had been laid by "enemies" and said the banks had taken steps to put themselves in a liquid condition than ever before. Both banking floors were crowd. ed with customers, large number of whom apparently intended withdrawing accounts because of fear engendered by recent closings. Four closings today. one in the loop. brought to 39 of banks here that have shut down this month. Referring alleged Traylor "This promoted by not your friends or our friends. tion in our history. Please tell neighbors that we will be open Monday morning and every morning at The crowds quickly thinned after he had spoken and within an hour. bank attaches said, normaley been The loop bank to close was the Chicago Bank of Commerce with $5,200,000 It had absorbed the Union Bank of Chicago last September. Its sets are understood to cover deThree other banks in outlying sections closed, two of them in North Shore suburbs-the First National Bank of Wilmette and the Northbrook State bank. The fourth was the South Ashland National These three together had about deposits.

8. June 26, 1932 The Post-Register Idaho Falls, ID
Article from The Post-Register, June 26, 1932

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Chicago Loop Bank Closes Its Doors CHICAGO, June 25. Chicago Bank of Commerce, loop bank with deposits of $5,200,000, was closed today by State Auditor Oscar Nelson the request of its board of directors. This was the first change in loop banks year, neighboring institution Michigan boulevard, the Peoples Trust and Savings bank, closed for liquidation recently and asked its depositors to come for their money. The Chicago Bank or Commerce had $1,500,000 capital and $750,000 surplus. Others closed today were the Northbrook State bank, situated north side suburb, with $143,000 posits; the south Ashland National bank, with $110,000 deposits and the First National bank Wilmette, north shore suburb, with $800,000 posits.

9. July 13, 1932 Chicago Tribune Chicago, IL
Article from Chicago Tribune, July 13, 1932

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OUTLINE PLANS TO REFINANCE $944,000 BONDS Fourteen Issues Will Be Reorganized. BY AL CHASE. Reorganization plans for fourteen defaulted bond issues underwrit ten by the Home Mortgage and Investment pany, having total first mortgage indebtedness of $944,000, have been submitted to the bondholders by the bondholders' protective of which J. Arthur Friedlund is sectary. These range from $18,000 to $190,000, and the committee applying its to each. ARTHUR With the an[TRIBUNE ement of these fourteen the committee has submitted reorganization plans on fifty issues, totaling While all of the details pertaining to have not been completed on all of the issues, a number of them have been worked out and the committee is proceeding as quickly as possible to complete all details pertaining to the plans of re organization," said Mr. Friedlund In the larger issues the trustee will hold title to the property and will operate it under the direction of trust managers, while in the small cases the trustee will operate the property without trust managers. Will Acquire Title. In all cases the committee intends to acquire title to the property for the bondholders, either before or after the master's sale, and it'll then complete the reorganization. All net income from the property will go to the certificate in to the amount of the bonds held by them until and the then held by the trustee may be mortgaged or sold at a fair price and more substantial cash dis tribution made. Next Friday. July 15, is the day set by the committee for the consent deposit of the bonds in these issues. All bondholders who desire to join in taking over these properties should deposit their bonds with the Chicago Title and Trust company, as depositary: otherwise, they'll only receive their proportionate share of what is bid for the property, less the costs and expense of the foreclosure proceedings." Osgood Building. Following are the issues now being reorganized: The Osgood building, 3084 Milwaukee containing two store and a loft. The original was now $30,000. Howard K. Hurwith, reports 100 per cent occupancy on April 30. 1932, with monthly Income of $117 Kosh and Scadron building, at the northeast corner of Drake and Montrose, stores, offices and flats; original issue $75,000. now $56,000; managed by former who reports 78 per cent June 25 and ly income of $300 and cash on hand $3,500. Orner building, southwest corner Troy and Argyle; eighteen flats; original issue $55,000, now $53,500; Metropolitan Trust company, reciver, reports 75 per cent Feb. 2; monthly income, $475; cash on hand, $309. Harry Brown building, 1225 North Ashland: stores and offices; original issue $135,000; Metropolitan Trust company, reports 25 per cent occupancy May 21; monthly income, $200; cash on hand, $63. Germain Company Building. Germain Company building, 848 Noble street; five stores; original issue $40,000, now $37,000; Union bank of Chicago, receiver, says building is vacant; cash on hand, $31. Wallin and Greenberg building, 5222 Gr Drexel seventy-one flats; $190,000 issue, now $184,500; Citizens State bank, receiver, reports entire building leased to one tenant at $1,050 monthly rental; cash on hand, $1,370. Pike building, 1215 W Inona avenue, seven flats; $24,500 issue, now $23,000; Heitman Trust company, receiver, reports occupancy 60 per cent June monthly income, $150; cash on hand, Silverman building. 1315 East 53d; two stores and thirty-one flats; $135,000 issue, now $125,000; Chicago Bank of Commerce, receiver, reports 100 per cent occupancy May 31; monthly income. $690; cash on hand, $710. Berkman building, 4602 North Mon ticello; thirty-one flats; 000 issue. do now $106,500; Metropolitan Trust com pany, receiver, reports 65 per cent occupancy Feb. monthly income, $819; cash on hand, $574. On South Kedzie. Greenwood building, 20 South Ked zie; one store, three flats; $22,000 is. sue; Joseph J. Ossowski, receiver, reports 25 per cent occupancy on June 27; monthly income, 30;cash on hand, $200. Gunderson building, northeast corner Armitage and La Porte: two stores and ten flats; $45,000 issue: George D. Crowley, reports 92 per cent occupancy on June 1; monthly income, $400; cash on hand, $671. Lurie building, 2700 North Mozart: Gas six flats; $30,000 issue; Citizens State bank of Chicago, receiver, reports 50 per cent occupancy Jan. 25; monthly income, $70; cash on hand, $44. Dornbaugh building, 4300 Indiana avenue; nine stores, three offices; $54,000 issue; Harold J. Coleman, receiver, reports 95 per cent on June 27; monthly income, $650, cash on hand, $1,700. Knudson building, 2207 North Mangel avenue; five flats; $18,000 Albert Michael, receiver, reports 100 per cent occupancy May 21; monthly income, $230; cash on hand, $343.

10. November 19, 1932 Chicago Tribune Chicago, IL
Article from Chicago Tribune, November 19, 1932

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STATE AUDITOR REPORTS ON TWENTY CLOSED BANKS State Auditor Oscar Nelson yesterday made public reports of the receivers 20 more closed banks. The reports give the financial condition of the banks as of Sept. 30. The reports disclose the gross cost of receivership of the 20 banks together with that for 20 banks ly reported 8.6 per cent of the collected by the and money the net east, after deducting the operating income of the banks, is 2.8 per cent. Bank Receivers' Reports. The receivers' reports on the individual banks CHELTENHAM TRUST [June 1931.] Cash hand. Total resources 303 Losses on conversion of claims paid Paid to creditors 4.511 10,772 2,555 145 34,643 16,930 25,034 6,526 40,558 633,028 7,548 182 5,929 995,804 8,545 13,407 15,950 BANK. Legal expenses and attorneys' fees 1,008 Clerical hire. 538 Miscellaneous expense 1,473 CONGRESS TRUST AND SAVINGS BANK. [Closed June 28, 1932.] Cash on hand. Total resources Losses on conversion of assets.... 12 Preferred claims paid. 183 Balance due 959,898 Receiver's salary and expenses. 1,451 Legal and attorneys' fees 21 Clerical hire. Miscellaneous 5,131 COTTAGE GROVE STATE BANK. [Closed June 23, 1932.] Cash on hand Total resources Losses on conversion of assets 92,661 Preferred claims paid. 75,000 Balance due 1,338,414 Receiver's salary and expenses.... 875 Clerical hire... expense. 4,565 ORAGIN STATE BANK. [Closed June 10, 1931.] Cash on Total Losses on conversion of assets... 65,599 Preferred claims 20,202 Paid to creditors [10 per cent] Balance due creditors Legal expenses and attorneys' fees 5,385 Clerical CRAWFORD STATE SAVINGS BANK. [Closed Jan. 15, 1931.] Cash on hand. 39.201 Total 943.578 Losses on conversion of assets. Preferred claims paid 14,805 Paid creditors 120 per cent] Balance due creditors 798,008 Receiver's salary and expenses Legal and attorneys' fees Clerical hire. 14.935 18,847 DEPOSITORS STATE BANK. [Closed Jan. 18, 1932.] Cash on hand. Total resources. 336 Losses on conversion of Preferred claims Balance due 067 Receiver's salary and expenses. 3.617 Legal expenses and attorneys' fees Clerical hire. Miscellaneous expense 11,875 DES PLAINES STATE BANK. [Closed June 13. 1931.] Cash 23,159 on Total 1,265,468 claims paid Paid to 120 per cent] Balance due Receiver's salary and expenses. 4,590 Legal expenses and attorneys' fees 15,000 Clerical Reports on the remaining closed banks will be made public from time to time by the auditor. Balance due creditors Paid to creditors [25%] Receiver's and expenses Balance due Legal and attorneys' fees Receiver's salary and expenses. Clerical hire Legal expenses and attorneys fees expense Clerical hire CHICAGO BANK OF COMMERCE. expense. [Closed June 25, 1932.] CITY STATE BANK OF CHICAGO. Cash on Total resources Cash on hand. Losses on of Total Preferred claims paid. Losses on conversion of assets. Balance Preferred claims paid Receiver's and expenses Paid to creditors (27%) Legal expenses and attorneys' fees Balance due creditors. Clerical hire Receiver's salary and expenses Liquidation Costs Told. expense Legal and attorneys' fees CHICAGO LAWN STATE BANK. Liquidation costs of the 20 banks Clerical hire [Closed June 9, 1931.] public are summarized expense Cash on by the auditor as follows: COLUMBIA STATE SAVINGS BANK. Total Total Losses on of [Closed March 29, 1931.] Total Operating conversion claims Cash on collected. 9,505 Balance due Total Cheltenham Receiver's salary and expenses Losses on conversion of assets. Legal expenses and attorneys' fees Bank 983 Clerical hire Paid Commerce Balance due creditors. Chicago CICERO TRUST AND SAVINGS BANK. Receiver's salary and expenses 368,060 46,733 Lawn [Closed April of 1931.] Legal expenses and attorneys' fees Cicero Trust 41,784 23,649 Cash Clerical on Citizens Total expense State of assets Citizens COMMERCE TRUST AND Preferred claims 767 [Closed May 28, 1931.] Paid to creditors [10 per cent] Cash on hand Citizens Total resources and expenses on of Legal expenses and attorneys' fees claims paid Citizens Clerical hire Paid Trust expense due City STATE BANK OF AGO. Receiver's and Columbia [Closed May 25. 1932.] Legal and attorneys' Commerce Cash on hand Clerical hire Trust 37,031 Total resources Commercial of assets COMMERCIAL BANK OF CHICAGO 17,426 HEIGHTS. Balance due Common- [Closed Jan. 9, 1932.] Receiver's salary and expenses 4.136 Cash on wealth Legal and attorneys' fees Total resources Congress Clerical hire 873 Losses of assets Park Preferred claims paid Congress CITIZENS STATE BANK OF GLENCOE. Paid to creditors (25%) Trust 16,043 8,865 [Closed 1932.] Balance due Cottage Cash on hand 11,466 and Grove resources 138,032 Legal and attorneys' fees Crazin Preferred claims paid Clerical hire Crawford Balance due Miscellaneous expense Depositors Receiver salary and expenses 300 Clerical hire TRUST Des Plaines expense BANK Totals CITIZENS STATE BANK OF MELROSE Cash 20 banks PARK. Total previously [Closed Oct. 24. 1930.] on conversion of assets reported Cash 41,615 Preferred claims Total Balance due Total 40 Losses on of assets 79,669 Receiver's and expenses. banks Preferred claims paid. Clerical hire. Balace due creditors 625,693 salary and expenses Legal expenses and attorneys' fees CONGRESS PARK STATE BANK. Clerical hire [Closed Oct. 28, expense Cash on hand CITIZENS TRUST AND SAVINGS BANK. Total resources [Closed Aug. 5, 1930.] Losses conversion of assets Cash on hand 507 Preferred claims resources Paid to creditors per cent] Losses of assets Balance due Preferred claims paid 20.305 Receiver's salary and expenses. 18,706 30,654 14,992 149,239 615,823 772,593 2,186,090 40,000 300 16,613 83,081 21,318 fees 23,532 22,549 356,879 4.153 AND SAVINGS 719 000 634 690 2,568 1931.1 337 11,890 534

11. December 10, 1932 Chicago Tribune Chicago, IL
Article from Chicago Tribune, December 10, 1932

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THREATENS JAIL FOR 13 CHIEFS OF CLOSED BANK Fisher Sees Contempt in Receivership Business. Walter J. Cox, president of the Chicago Bank of Commerce when closed on June 25, and 12 directors of the bank that time were threatened with jail tences for contempt of court yesterday by CirJudge Harry M. Fisher. He that in diverting funds of prop for which bank was receiver into the general funds of the bank they guilty of contempt. Attorneys for the bank rate Judge Fisher that the bank had posited $500,000 bond with the state auditor to protect funds It held in with Judge Fisher ordered Alfred K. for the to report to him on Dec. 29 on funds held by the bank at the date of closing, and also upon the tion of all fixed held under which forbade the bank to handle the funds of the trusts. Hinges on Sufficiency of Bond. If the bond is sufficient to protect of those funds fully. I'll forgive the contempt. said Judge Fisher. these men will to go to Those cited in the with Henry Delano John Clark send, Adolph G. W. Philip and John case came to on Nov whom Judge had pointed successor to the an apartment building at 4015 court with asking that the bank. as former receiver. turn over to him $856 in funds belonging to the building which It had collected for the bank informed Judge Fisher that the funds were in the hands of Mr. Foreman, the bank receiver. Cites Specific Court Order. the bank was appointed receiver.' Judge Fisher, the of the bank were directed in specific court order to keep the funds the separate from the bank general assets. He told that while separate counts had been kept for the funds the money had been put in with the bank's runds. He continued the until today when the same state. ment bank's officials are responsible for this Judge Fisher ruled. They laid themselves open to con tempt proceedings when they mingled the funds in specific court The men who were anxious to have their company apreceiver must bear the of officers of the court. and not of the bank. when they accepted the We are now facing deficits of millions due to the closing of other banks who were re. ceivers under similar circumstances.