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SHORTAGE CAUSES CHICAGO NEGRO BANK TO BE CLOSED Chicago, Aug. Roosevelt State Bank, negro bank deposits $1,390,000 ordered closed by the State Auditor today because of cash shortage. There had been heavy withdrawals, said have been inspired by the closing of the Binga State Bank, another negro because frozen assets, largely real estate papers.
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STATE BANK CLOSES. CHICAGO, August 2 (A).-The Roosevelt State Bank, a Negro bank with desposits of $1,390,000, was ordered closed by the State auditor today because of a cash shortage. There had been heavy withdrawals, said to have been inspired by the closing of the Binga State Bank, another Negro institution, because of frozen assets, largely real estate papers.
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MISCELLEANOUS The Abraham Lincoln High School, which will be the Fall term at Ocean parkway Riverside avenue, will cost the city, including equipment, $2,500.000. will be the first to offer high school facilities to the people of that locality. The building, with annex, will provide full time commodations for all pupils in the Coney Island, Sheepshead Bay and Brighton Beach district. introduce an innovation by offering courses in household duties. Chicago announces that the Binga State Bank, built by Jesse Bings during twenty-two years to the sition of Chicago's outstanding Negro has closed its and has asked the Sate adjuster make an examination and readjustment. Frozen assets and insufficient cash are blamed by the bank's officials for its dilemma. There run on the bank but merely gradual withdrawal of deposits. Tidings from Balboa state that Vincent Sullivan, who claimed the marbles championship of the United States, ignominious defeat hands of Robert Oller, Zone the
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First National Bank of McLeansboro and Its Subsidiary Close Action of Boards of Directors Follows Heavy Withdrawals. DISPATCH TO THE ILL. August Doors of the First Bank of the First State Bank Broughton, failed open this Notices the boards directors stated action prompted desire protect that been during The the leading banks Hamilton County, listed assets liabilities of $716,050.93. The has Officers bank Val president: Sharpe, Denson, vice Adam and Assets and liabilities of the First with deposits Campbell president the subsidiary bank, and Arthur Dawes cashier. Broughton is the southern part of Hamilton County. Negro Bank Closes. By Associated CHICAGO. August Roosevelt with deposits of $1,390,000, closed the state auditor today because shortage. There had been heavy the closing the Binga State Bank, another Negro because of frozen assets, largely real estate papers. Bank Closes. By Associated Press. PA., August by past two days, Bank closed today. The runs believed the result of the closing three four banks in Connellaville within the past Affairs institution were placed in the hands of Bleakbank examiner. W. Cosgrove, fidence all ultimatebe paid in full. The bank at 000. statement reported demand deposits $8458, and time deposits of $89,764.
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CHICAGO CLOSED RUN Aug. (AP) Citizens Trust Savings bank was closed by the state auditor day following run on the bank during which deposits withdrawn. This bank the third southside bank closed within The Citizen's bank is located 55th and South State, at the edge the negro The first bank close the Binga state, deposits of more than among the negroes. The second the Roosevelt state, which also had deposits more than much of ings. The Roosevelt State was closed due cash shortage caused by heavy withdrawals after the Binga bank was closed. The bank was capital ized $200,000 and had deposits about $1,000,000.
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Another Chicago Bank Closed By State Auditor Chicago, Roosevelt State Negro bank with deposits of ordered closed the State Auditor Saturday August because cash shortage There been heavy withdrawals, said to have been inspired by the closing the Binga State Bank, another Negro institution, because of frozen assets largely estate papers.
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Former Binga State Bank Head Jailed (Continued from page one) ing to the members of the Board of loans Mr. Binga's absence; Harry Scott, "right hand man of Mr. Binga"; Thomas Webb, director former auditor of the Pullman Porters Benevolent Association and DeWitt Curtiss, who was vault custodian and floor walker when the bank in Binga said have had the four indicted sign when they had no financial secured on the Mr. Binga would use put through his real esThe employees are So much of the institution's money became tied these operations together with other frozen assets, that it forced to close. When the bank it had deposits $1,280,000. was organized as a state bank in 1920. Since the closing of the Binga State Bank, which caused financial the of Chicago, several reports have circulated that the be yet there materialized. The latest was during the preprimary days but had this fooled often that they considered as political gesture. Mr. Binga, according to friends, has the for arrest was effected when the officers waited at his house for the doctor who was attending him. The doctor, the story, arrived, rang the and mitted and along with the physician, went the officers and the ofttimes declared to be Chicago's rich-
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Arrested Jesse Binga, Famous Chicago, Banker, HEAD OF DEFUNCT CHICAGO BANK ARRESTED CHARGE BINGA WITH EMBEZZLEMENT OF BANK FUNDS By A.N.P. CHICAGO, March 12-Jesse Binga, former president of the defunct Binga State Bank, was arrested here Thursday charged with embezzlement of some $300,000 from the institution which he headed. The probable arrest of Mr. Binga has been rumored ever since the cease of the bank. Warrants were reported to have been gotten out for him on various charges. Reports that he could not be found and that he was in a local hospital were circulated along with the story that he had transferred all of 'earthly belongings' to his wife, who according to reports was rich in her own right. Thursday, however, rumors of arrest became a fact when Deputy sheriff's Rallihan and Feeney, laid in wait for the banker at his home, 5922 South arkway, and took him into custody. He was rushed to the Cook County Jail and bond was set at $55,000. Along with Mr. Binga, four of his former employes were taken into custody and charged with embezzlement. They were: Miss Inez Canty. secretary to Mr. Binga, who according to members of the Boar dof DIrectors, passed on loans in Mr. Binga's absence; Harry Scott, chauffeur and "right hand man of Mr. Binga," Tomas R. Webb, a director and former auditor of the Puliman Porters Benevolent Association, and DeWitt Curtiss, who was vault custodian and floor walker when the bank was in operation. Binga is said to have had the four employes indicted with him sign notes when they had no financial responsibility The money secured on the notes Mr. Binga would use to put through his numerous real estate transactions. The employes are accused of conspiracy. So much of the institution's money became tied up in these operations together with other frozen assets, that it was forced to close. When the bank suspended it had deposists of $1,280,000. It was organized as a state bank in 1920. Since the closing of the Binga State Bank. which caused a financial crisis on the Southside of Chicago, several reports have been circulated that the institution would be reopened. but as yet there have not materialized. The latest was circulated during the pre-primary days but depositors had been fooled so often that they considered this as political gesture. Mr. Binga, according to friends, has been ill in the hospital for months. His arrest was effected when the officers waited at his house for the doctor to come who was attending him. The doctor, says the story, arrived, rang the door-bell and was admitted and along with the physician, went the officers and the banker, oft-times declared to be Chicago's richest Negro, was placed under arrest and when he could not make the $10,000 bail on one of the embezzlement charges, was held in the jail hospital overnight.
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BINGA ARRESTED FOR BANK FRAUD; BOND $55,000 Continued from Page rectors, passed on loans in Mr. Binga's for in the sphere absence; Scott, and which they are now The Harry general does not man" of Mr. Binga; to school work for the docone Thomas director and degree. the finds former auditor of the Pullman Porof and judgman ters' Benevolent and Defor Witt Curtiss, who was vault custo- will send off to school year dian and floor when the bank to his in his field. in operation. new has shown that teachBinga said to have had the thus helped have later ers sign notes much than doctors no financial made order money secured on the notes Mr. their training beyond the Binga would use to put through his which they have work sphere in estate far from the removes ple that they never serve them effiThe employees are accused of conspiracy. ciently. Forced to Close Should Work with Carver So much of the institution's money The Northern universities, became tied up in these operations to- over, do work for Negroes certain when gether other frozen along forced close. When the are of otherwise circumneeds people deposits stanced. It organized as The graduate school for Negroes state bank in 1920. studying chemistry with George Since the closing of the Binga State At hunBank, which caused financial crisis should wait daily upon on the Southside of Chicago, the words of this scientist to able reports have that on to the generation unborn be pass would reopened, knowledge of agricultural great but it has Went in with Doctor chemistry. Negroes desiring to specialize in Mr. Binga, to friends, should do with in the for Campbell the Negro farmers His arrest was effected when of the Belt. the officers waited at his house for Neither Columbia nor Chicago can doctor come who was attend- an advanced course ing him. The doctor, says the story, rural education. Such work must be arrived, rang the admitted, and along the physician went the officers, and the bank- The Republic Valet declared to be Chicago's richest Negro, placed under Shop arrest. When he could not make the $10,000 1342 You St., N. W. bail on one HATS held in the jail hospital -SUITS PRESSEDover night. -SHOES SHINED
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# Jesse Binga, Chicago # Banker, Jailed By Police (Continued from Page 1) rectors, passed on loans in Mr. Binga's absence; Harry Scott, chauffeur and "right-hand man" of Binga; T. R. Webb, a director and former auditor of the Pullman Porters' Benevolent Association, and De Witt Curtiss, who was vault custodian and floor walker when the bank was in operation. Binga is said to have had the four employees sign notes when they had no financial responsibility. The money secured on the notes Mr. Binga would use to put through his numerous real estate transactions. The employees are accused of conspiracy. Forced to Close So much of the institution's money became tied up in these operations together with other frozen assets, that it was forced to close. When the bank suspended, it had deposits of $1,280.000. It was organized as a state bank in 1920. Since the closing of the Binga State Bank, which caused a financial crisis on the south side of Chicago, several reports have been circulated that the institution would be re-opened, but it has not. Mr. Binga, according to friends, has been ill in the hospital for months. His arrest was effected when the officers waited at his house for the doctor to come who was attending him. The doctor, says the story, arrived, rang the door bell and was admitted, and along with the physician went the officers, and the banker, oft-times declared to be Chicago's richest Negro, was placed under arrest. When he could not make the, $10,000 bail on one of the embezzlement charges, he was held in the jail hospital over night.
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REVEAL PROGESS LIQUIDATION CLOSED BANKS Nelson Tells of Dividends Already Paid. Nelson issued the far in progress of closed assets in months the he defining proposed and their have banks up to last of which June in the of the were nine have Foreman their already 20 to per cent, Mr. of in the group similar percentages the next few he added. within of Mr. liquidate these assets as quickly as possible, with a the assets against any sacrifice of their true unnecessary The Chicago real estate marwill not continue indefinitely stag. Sees Fair as Boost. Nelson's view the Century of will prove Progress in restoring real estate level approximating their prices true the exposition draws he pointed out, realty market is be stimulated. This will pernit banks holding now classified as frozen assets to dispose at prices warranting the ex. pectation that depositors secure the return of 100 cents on the suggestion that individual deiverships be abolished in favor of receivership agency for all the state auditor declared himself opposed. Advocates of the plan entend that receivership costs would be if salaried state officer were appointed to liquidate assets or reorganize banks under direction of courts. Would Add to Expense. "I disagree with this claim," said Mr. In the first place, under the present system are unduly costly. Secondly, unified receivership system would in opinion, prove more expensive in the The auditor pointed out that the suggested state office could be created only by Moreover, he said, this office would be compelled to set its own or employ the of large trust pany in effect, would thereby gain virtual monopoly on all in county. The auditor mentioned time for fees filed by receivers and alterneys in recent bank failures. In was fee of $15,000 claimed If Attorney Edward H. Morris as for the Binga State on July 31, with deposits Attorney James B. Cashin as counfee the Binga bank receiver; and of paid to Attorney B. Fleming RS counsel for the receiver of the Exchange State bank. "In the case of the Binga bank claims, the fees of the lawyer and receiver were reduced two thirds,' Mr. Nelson explained. They filed claims for and respec. were paid $5,000 and $4,000 Paid on Dally Basis. "In the case of the Exchange State lank the record shows there was 441,000 on deposit when the bank tissed. Citing Fleming's $20,000 fee in this connection might make it seem large. But the records also show that the bank resources were 1118,000, and it must be remembered that the receiver's duties concern not merely the deposits but all the resources. On this basis, therefore, Fleming's fee to date amounts to about per cent of the total sum administering. Every receiver and attorney is paid per diem basis. the auditor exEach is required to file an of hour occupied receivership duties before being paid *penny. The fees for various banks not so much on the basis of their deposits or resources, Mr. Nel. NA as on the condition of the payment Even the was has realized After the dividend Nelson said the best record date had been made by the tressive State bank, which has paid cent dividend on deposits of There should be another from that bank said Central bank has 20 per cent According auditor, additional per People's State bank of convicted of paid 20 per cent There are further assets to there the auditor of the Central Oak are to according to the auditor, delay caused by which be settled Depositors of and bank have of receiving dollar for dol- auditor announced late of yesterday 100 as receiver for which deposits of $14,000,000 of The at announced and Savings most easily He said he each be meet liabilities was who Fullerton State appoint Attorney West Monroe on June and Bain banks bond, would open 1620 West accessible of appoint retired assets of 1423 Ful closed with
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# Binga Case Postponed # Until Fall Hearing CHICAGO. — Trial of Jesse Binga, former head of the Binga State Bank, now in the hands of the receiver, was postponed until the fall term of court when the case came up here Thursday. It is understood that the postponement was made at the instance of the prosecutors. The trial of Binga has been postponed several times before Report has it that the state's attorney desires to complete the case against the Flowers brothers, white bankers, before undertaking the trial of the colored banker, feeling that the political effect of a possible conviction of Binga before everything possible was done to punish the white bankers would be unfortunate in the Negro districts.
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CLOSED BANKS ARE READY TO PAY DIVIDENDS Receivers Tell Condition of Six Others. Four closed banks are preparing to pay dividends depositors, State Auditor Oscar Nelson announced yesterday. the Binga State bank, 3452 South State street: the Ridgeway State bank, 3722 West Chicago the Novak Steiskal bank, 1817 South Loomis street, and the Central Oak Park State bank of Oak Park. The Binga bank, which closed July 81, 1930, will pay its first dividend to depositors. They receive checks by mail for $138,000, or approximately per cent deposit liabilities checks mailed by Morris, Practically all of the positors are people. Ridgeway Bank Dividend. A dividend 15 per cent, the Ridgeway State bank, which closed April Edward M. Olson, receiver, is to mail checks to 8,500 depositors. total of $429,000 due depositors. Clearing of court litigation during per of the Novak Steiskal bank. The was to two ago, but blocked by the intervention of The bank has cash against deposit claims and has addition bonds which can sold to insure the 15 per cent dividend. The Central Oak Park State bank awaiting court action to pay dividend per cent. suit for has been brought against the bank for rent. Master in Chancery Archie has found the bank owes $5,900. his tained be The receiver has against deposit of Other Report. State Auditor Nelson made public statements the conditions closed banks the The statements were prepared by receivers. Emil Wentslaff receiver for the State bank closed set the of assets and in version at $70,995 against creditors. He fixed during liquidation at and disbursements at His disbursements follow: Preferred claims paid $152,467 Receiver's salary 3,350 Clerical hire 4,287 expenses Auditor's closing bank. 1,485 payable 205,998 George W. Bloomgren, receiver for the Lincoln Trust and Savings bank, closed April 16, placed the which value assets against $3,247,002 due creditors. He fixed income during liquidation disbursements of His itemized disbursements follow: Preferred claims $31,167 Legal Clerical hire 4,943 closing 3,300 9,416 Charles Jenks, receiver for the Montrose and Savings bank. which May placed the book against due He fixed during liquidation of His itemized follow: 683 Receiver's salary Clerical 1,837 closing 667 Anditor's O. receiver for the Norman Second State bank, which closed the with losses of to $1,765 against due Inwas fixed $515,061 of His disbursements follow: Receiver's and expenses 666 salary the Clerical 3,198 770 Auditor's expenses closing bank. 1,050 payable met 280,379 229 in To John Carroll, receiver for the South Savings Bank and Trust which $4,295,587 the due Inagainst was set $25,359. His disbursements follow: Preferred claims paid and expenses Legal Clerical hire Miscellaneous expenses 2,567 Auditor's and Victor H. Munnecke, receiver for the State of Beverly Hills, which closed June placed the value of $1,026,147 liqui was with dis bursements of His follow: Prefererd claims paid Clerical 1,030 Auditor's closing bank payable auditor announced the appoint Edgar Olson receiver Marquette bank. 6314 887 the to be salary and time receiver Novak and bank to because Nelson the closed chain twelve Bain dicted all the banks. Irwin ceiver of the banks, the the banks and only of the paid the banks closed June
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# Hueston Sued On Note WASHINGTON. — Suit to collect $1,000 from William C. Hueston, assistant postmaster solicitor and Elks' commissioner of education, due on a promissory note, was filed in the District Municipal Court, last week, by Edward Morris, receiver of the Binga State Bank, in Chicago, through his local attorney, Armond W. Scott. The plaintiff alleges that Mr. Hueston affixed his name to a 30-day note for $1,500 on January 3, 1929. It is also alleged that Mr. Hueston paid $500 towards the note on January 30, of the same year.
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GET INSURANCE Other Deaths Being Investigated CLARKSDALE, Miss., June 10.-Excitement here and at Yazoo City is at fever heat following the uncovering of sensational evidence pointing to a wholesale murder plot in which five persons are believed to have been killed for their insurance and the reported confession of Dr. Lawrence Packer, a Yazoo City dentist, that he was the slayer of Norville Sanders, whose mutilated body recently found in Yazoo City by the police. Collect Insurance The various angles of the case are by District being Hugh B. is said to have informed that the dentist collected policies on persons within the of whom are to died as the result ptomaine of these Dr. Packer's Mrs. Packer, died April supposedly poisoning and their made payable to the Convinced that foul play had been Mrs had her body and that daughter exhumed and the result that both were to Mississippi college for examination by Found in Car According Sanders' body parked in front of Packhome. The of the body was made when was noticed that blood trickling down the side of Continued on Page 2. Col. An attempt will be made to oust Attorney Edward H. Morris as receiver of the Binga State bank and its properties, it became known Friday when Attorney George C. Adams, representing Dr. William H. Brummit, announced that he was going before Judge Philip J. Finnegan Saturday with a petition asking that the receiver be re- moved. The attorney explained that it will be that creditors tee or three trustees be appointed by the court to take over the estate mortgages and to liquidate, and same over period time and to stop foreclosure proceedagainst The tenure of the trusteeship would continue until the depression is there is market for real estate Attorney Adams forth the would liquidate the securities now being held by the bank in as not to cause tremendous loss to the depositors of Binga State bank. The petition divided into 12 gives various reasons for asking for the removal of the receiver. One of the chief reasons given is contained in section "The petitioner shows that certain mortgages, estimated $533,000. were made by the Binga State upon properties the depositors and tomers of the bank and of other zens living in this who had invested their as payment Many of the mortgages due at time the bank closed or have become due since that time. Unless some step is taken most of these people lose all their equity. The will result in saving more than to the the peti-
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Sues Jesse Binga in Bank Crash Receiver Edward H. Morris of the Binga State bank this week caused a writ to be executed against Jesse Binga, former president of the institution. in an effort to collect $119,426 from the erstwhile financier. Execution Clerk Frank Kaukol of the circuit court clerk's office said more than 100 executions have been sent out in the past 10 days. for $100 and Dr. H. RegiSmith Their were included in the along with number of other prominent Binga at the time is for the his first resulted the failed to ended in taken to supreme court after Judge James F. to the president controlled the bank holdings vast seeks to represents an amount of The records did Binga liable to amount equivalent amount stock in case The receiver Invoked the satisfy the liabilities Learn to Play A hint to the boys and girls Why up if for the business to play banjo, violin if are them With be the to nothing of the pleasure derive these Children play the grades schools if on The be gained First school musician finds himself in the class of those dominate the They part appear on school programs and pleasantly helps to establish one in to play note that you can assured of place in your This form of remain to your act Start and let your slogan be: this by next Easter," watch the results
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Bank Receiver Jesse Suing Binga CHICAGO, Edward H. Morris of the Binga State Bank, pushing suits against Jesse Binga and others to recover upof $150,000 The suit against wards is for $119,426, and executions have been out against 80 or more sent others among them number of othcitizens. Binga at present is under sentence for in connection with of the in bank
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Receiver Suing Binga And Others To Recover Bank Funds Chicago -(CNS)- - Reciever Edward H. Morris of the Binga State Bank, is pushing suits against Jesse Binga and others to recover upwards of $150,000. The suit against Binga is for $119,426, and executions have been sent out against 80 or more other among them a number of other prominent citizens. Binga at present is under sentence for embezzlement in connection with the failure of the bank in 1931.
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Binga Saved From Eviction Because of a favorable ruling last week in Renters Court by Judge Leon Edelman, Jesse Binga, reputed former millionaire and head of the Binga State bank, escaped eviction from his old South Parkway home where he has lived since his recent release from Joliet prison, after serving three years of a 1 to 10 year sentence for embezzlement. C. H. Albers, receiver for the defunct bank at Thirty-fifth and South State Streets, sought to obtain possession of Binga's home, claiming that Binga mortgaged the property as collateral for a $20,000 bank loan to a friend. Judge Edelman ruled in Binga's favor, citing a technicality. He said he could find no proof in the court records that due notice in writing was given Binga by the receiver. Attorney Milliam P. Greene, representing the receiver, was not in court when the ruling was handed down but said later he would file a motion to vacate the judgment within the next few days. He said written notice was served on Binga before the suit was started.
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# Chicago Court Saves Jesse Binga # From Eviction From His Old Home Chicago (ANP) - Because of a favorable ruling last week in Rentos Court by Judge Leon Edelman, Jesse Binga, reputed former millionaire and head of the Binga State bank, escaped eviction from his old South Parkway home where he has lived since his recent release from Joliet prison, after serving three years of a 1-to-10 year sentence for embezzlement. C. H. Albers, receiver for the defunct bank at 35th and South State streets, sought to obtain possession of Binga's home, claiming that Binga mortgaged the property as collateral for a $20,000 bank loan to a friend. Jude Edelman ruled in Binga's favor, citing a technicality. He said he could find no proof in the court records that due notice in writing was given Binga by the receiver. Attorney William P. Greene representing the receiver, was not in court when the ruling was handed down, but said later he would file a motion to vacate the judgment within the next few days. He said written notice was served on Binga before the suit was started.