Colonial Trust & Savings Bank

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust
Start Date: June 27, 1914
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: 3c63cd3a810c5611

Response Measures

None

Description

Article reports the Colonial Trust & Savings Bank being taken over by the Central Trust Company of Illinois, which assumed all deposits and liabilities and the Colonial will 'wind up its business for the benefit of the stockholders.' No run on the Colonial itself is described (a run mentioned refers to a different institution, North Avenue State Bank). The takeover/absorption and planned winding up indicate a permanent closure/takeover rather than a temporary suspension or run-driven failure; classify cause as voluntary liquidation/absorption.

Events (1)

1. June 27, 1914 Suspension

Cause: Voluntary Liquidation
Cause Details: Absorbed by Central Trust Company which assumed all deposits and liabilities; Colonial to wind up business for stockholders (purchase/absorption rather than government seizure).
Newspaper Excerpt: The Colonial Trust & Savings bank tonight passed into possession of the Central Trust company...the Central Trust company of Illinois has absorbed the business of the Colonial Trust & Savings bank, assuming all deposits, liabilities and paying a substantial amount to the Colonial Trust & Savings bank for its good will. The Colonial will therefore proceed to wind up its business for the benefit of the stockholders.
Source: newspapers

Newspaper Articles (1)

1. June 28, 1914 Evening Capital News Boise, ID

Article from Evening Capital News, June 28, 1914

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Article Text

CENTRAL TRUST COMPANY TAKES OVER COLONIAL Big Chicago Banks Merged Into One Institution-All the Liabilities Are Assumed. Chicago, June 27.-The Colonial Trust & Savings bank tonight passed into possession of the Central Trust company. Scores of armed guards were busy removing assets from the vaults of the Colonial to the bigger bank until a late hour. The work will continue all night and Sunday. An examination of the Colonial's affairs by its stockholders and directors and a conference with Bank Examiner Harkin resulted in an announcement of the transfer. L. C. Rose, president of the Colonial, will become vice president of the Central Trust company. Rose tonight issued the following statement: "As the culmination of negotiations in progress for some time, the Central Trust company of Illinois has absorbed the business of the Colonial Trust & Savings bank, assuming all deposits, liabilities and paying a substantial amount to the Colonial Trust & Savings bank for its good will. The CoIonial will therefore proceed to wind up its business for the benefit of the stockholders." A further statement to depositors adds: Capital and Resources. "The Central Trust company is one of the strongest institutions in the country. Its capital and resources are: Capital stock paid in, $4,500,000; additional liabilities to stock holders, $4,500,000; surplus, $1,000,000; undivided profits, $1,000,000; total, $11,000,000." The Central Trust company has deposits aggregating $37,948,000 and loans, cash exchanges and bonds amounting to $4,500,000. The statement of the Colonial shows the following: Liabilities, $8,500,000; assets, $8,500,000. Police, were summoned to the North Avenue State bank during the afternoon to disperse crowds attracted by a run. All depositors in line were paid and the bank officers invited those who wished to withdraw more money to DO on hand Monday. Automobiles laden with big bags of coin and currency were sent by the clearing house banks to stop the run. The North Avenue institution has a capital stock of $200,000 and deposits amounting to $2,750,000.