3778. Cook County Savings Bank (Chicago, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
April 22, 1876
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
cf170fb8668af228

Response Measures

None

Description

Multiple contemporaneous newspapers (Apr 22, 1876) report the Cook County Savings Bank 'has suspended as a bank of deposit' and 'will immediately wind up its affairs.' Later Chicago Tribune pieces (July 1876) refer to the institution as 'collapsed' with an assignee (Carl Dreier) handling claims, indicating permanent closure and appointment of an assignee/receiver. Cause appears to be bank-specific mismanagement/insolvency (large loans to directors/associated firm). No independent report of a depositor run prior to suspension is given in these articles.

Events (2)
1. April 22, 1876 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank in feeble condition; liabilities exceed available funds; large loans made by directors (about $60,000 loaned, $125,000 loan to an officer/firm later in suit) and alleged misuse of depositor funds.
Newspaper Excerpt
The Cook County Savings Bank has suspended as a bank of deposit, and will immediately wind up its affairs.
Source
newspapers
2. July 15, 1876 Receivership
Newspaper Excerpt
the collapsed Cook County Savings Bank ... Mr. Carl Dreier, Assignee of the Cook County Savings Bank, ...; the Assignee said ... he would work in the interests of the depositors alone (Chicago Daily Tribune, July 15, 1876).
Source
newspapers

Newspaper Articles (12)
1. April 22, 1876 The Cincinnati Daily Star Cincinnati, OH
Article from The Cincinnati Daily Star, April 22, 1876

Click image to open full size in new tab

Article Text

Minor Mentions. By American Press Association to the STAR. CHICAGO, April 22.-The Cook County Savings Bank has suspended. Liabilities $140,000. PHILADELPHIA, April 22.-George W. Ritchie, a director of the Kensington Bank, committed suicide this morning. WADSWORTH, O., April 22.-Chandler Brothers' machine-shops burned at 3 o'clock this morning. Loss $30,000; insured for $26,000. GLASGOW, April 22.-The fire in Buohanan street, last night, caused considerable damage to several buildings, but the losses are not serious. WASHINGTON, April 22.-The House Committee on Indian Affairs to-day agreed to recommend an immediate appropriation of $50,000 to provide subsistence for the Arizona Indians. PITTSBURG, April 22.-A $50,000 fire occurred at the Tarentum Camp-meeting grounds, on the Allegheny River, at midnight last night. One hundred and forty cottages were burned. It was the work of an incendiary. CONCORD, N. H., April 22.-Abbott, the murderer who killed his wife last fall by chopping her head off with an ax, yesterday pleaded guilty to murder in the second degree, and was sentenced to thirty years in State Prison. LONDON, April 22.-A terrible explosion of gunpowder occurred to-day in a mining tunnel in the town of Neath, Parish of Southwater, near Swansea. Thirteen workmen were buried in the ruins. Their bodies have not yet been recovered. CONCORD, N.H., April 22.-A fire at Heniken Village destroyed the Dillingham Paper Mills, together with the stock and machinery, causing a loss of $25,000, insured for $30,500. It was owned by the Loan Trust Savings Bank, of this city, and was in operation at the time of the fire. PHILADELPHIA, April 22.-The new building or the Academy of Fine Arts, located at Broad and Cherry streets, was formally dedicated at noon to-day, Rev. Dr. Morton opened the ceremonies with prayer and Rev. Dr. Furness delivered the address. Tueo. Augler, deceased, was to have been the orator. The new structure cost nearly $400,000.

2. April 22, 1876 The Daily Argus Rock Island, IL
Article from The Daily Argus, April 22, 1876

Click image to open full size in new tab

Article Text

Another Rotten Bank Goes Down. CHICAGO, April 22.-The Cook County Savings bank has suspended as a bank of deposit, and will immediately wind up its affairs.

3. April 23, 1876 Daily Press and Dakotaian Yankton, SD
Article from Daily Press and Dakotaian, April 23, 1876

Click image to open full size in new tab

Article Text

CHICAGO. BANK SUSPENSION. CHICAGO, April, 22.-The Cook county savings bank has suspended as a bank of deposit, and will immediately wind up its. affairs. Its liabilities are $80,000 deposits; and $60,000 which the directors . have loaned it. Its assets are $150,000, resides $15,000 in judgement notes which are of |some account. There are 600 depositors, mostly Scandinavians who the directors affirm will reoeive nearly if not -quite dollar for dollar. The bank has been in a feeble condition for a long time.

4. April 23, 1876 The Cheyenne Daily Leader Cheyenne, WY
Article from The Cheyenne Daily Leader, April 23, 1876

Click image to open full size in new tab

Article Text

ILLINOIS. 21A2 Bank Suspension. Chicago, April 22.-The Cook County Savings Bank has suspended as a bark of deposit and will immediately wind up its affairs. Its liabilities are $80,000 in deposits and $60,000 which the directors have loaned it. Its assets are $150,000, besides fifteen thousand in judgment notes, which are of some account. There are 600 depositors, mostly Scandinavians, who, the directors affirm, will receive nearly if not quite dollar for dollar. The bank has been in a feeble condition for a long time. Chicago Municipal Affairs. It is now propose I that Hon. Thos. Hoyne, who received a large majority of the votes cast for Mayor at the recent city election, should at once apply to one of the judges of the State Supreme Court for a writ of mandamus requiring Colvin, the usurper, to surrender the office of Mayor to Mr. Hoyue. It now seems probable either that this will be done or that the new common council, as soon as it shall have organized, will declare the office vacant and elect one of their own members Mayor. as in such caso S provided by the newcity charter.

5. April 23, 1876 Pioche Daily Record Pioche, NV
Article from Pioche Daily Record, April 23, 1876

Click image to open full size in new tab

Article Text

some illegal practices in the custom service, but there will be no investigation. The World's Washington special says: Caulfield's committee sent to the Treasury Department to-day and secured the book in which the secret service accounts were audited and show by figures that in 1872 alone there were expended over $140,000 in Grant's behalf instead of $45,000. The Times Washington special says: That by the terms of the appropriation for secret service funds, the money was absolutely within the control of the Attorney General. There was, it is thought clearly, an unpardonable looseness in the disbursement since, the only vouchers that were procured are the receipts of Whiteley in gross sums. If the money has been improperly expended in New York, the responsibility must fall on the Attorney General. Davenport's testimony puts the President's action in a new and more favorable light. The Tribune's Washington special remarks: On the voting on the proposed Indian transfer bill, most of the Republican members voted no. One of the sturdiest negatives was Cox's vote which therefore, not being partisan may be taken as a condemnation of the peace o policy. a WADSWORTH, O., April 22.-TheChandler Bros. machine shop was burned this o t morning. Loss estimated at $30,000; y insured for $26,000. CHICAGO, April 22.-The Cook County a Savings Bank has suspended as a bank Bof deposit, and will immediately wind r up its affairs. Its liabilities are $80,000 Bdeposits and $60,000 loaned. Assets, t $150,000, besides $15,000 in judgments 11 which are of some account. There are le le 600 depositors, mostly Scandinavians, d the directors affirm will receive nearly, t if not quite, dollar for dollar. It has been in a feeble condition for a long t time. in PITTSBURGH, Pa., April 22.-Intelligence was received in this city this y is morning that the Methodist camp meetof ing buildings at Farentum, Pa., have been destroyed by fire, which broke out e d about 12 o'clock last night. As the cottages were all frames the flames spread ve with frightful rapidity. The Farentum ch ed grounds have been owned by the Methose dists of this vicinity for many years, and cthe cottages belonging to members of the church in this city are numerous. The rt grounds probably contained 150 cottages, d: which were generally of four or five or rooms of neat design, and many comin pletly furnished, except bed clothing. t. The only buildings saved, according to or present advices, were the Camp Hotel. itThe fire will prove a very disastrous one, h, is. and very seriously interfere with the ar. at rangements for the National Camp meeting, which was announced to be held on he the grounds in August. The origin of he the fire is at present unknown. Loss, gh $50,000; insurance, $20,000. ng

6. April 23, 1876 The Sun New York, NY
Article from The Sun, April 23, 1876

Click image to open full size in new tab

Article Text

Suspension of a Havings Bank. CHICAGO, April 22 -The Cook County Savings Bank has suspended business as a bank of deposit. and wwi immediately wind up its affairs. Its liabilities are $80,000 devosits and $60,000 which the directors have lent 11. Its assets are $150,000, Desides $13,000 in judg ment notes which are of some account. There are 600 depositors, mostly Sounda vians, WHO, the director affirm, will receive nearly if no quite dollar for dollar. The bana has been in a sucble condition for a long time.

7. April 23, 1876 New Orleans Republican New Orleans, LA
Article from New Orleans Republican, April 23, 1876

Click image to open full size in new tab

Article Text

MISCELLANEOUS. Crops on the Pacific. San FRANCISCO, April 21.-The Weekly Buletin this morning publishes a complete crop report from nearly every agricultural county in the State, All dispatches argee is reporting that the prospects for the grain crop were never better, and that an unprecedentedly large yield may be expected, with a continuance of reasonably favorable weather. Fruit also promises well, though in some districts it has suffered somewhat from late frosts. Internal Revenue Examination. General Hawley, Supervisor of internal Revenue, with Special Agents Crane and Clark. have been engaged all day in examining tax accounts and property of ColSector of Internal Revenue Sedgewick. The officials are very reticent, but the belief is strong that something important is in the wind. Pacific Mail Property Attached. The coal and stores of the Pacific Mail Steamship Company were attached to-day by the Panama Railroad Company. A Costly Kereseme Fire. PATERSON, N. J., April 22.-A kerosene lamp explosion burned the Arcado building. Loss $75,000. Paper Mill Burned. CONCORD, N. H., April 22.-The Dillinghave paper mill burned to-day. Loss $20,000. At the Centennial Grounds. PHILADELPHIA, April 22.-The President and Mrs. Grant visited the centennial grounds to-day. Get Through. The Congressional Naval Committee have concluded their labors and left the city. Prairie Fire. SEOUX CITY, April 22.-Great prairie these occurred in Iowa, Nebraaka and South Dakota. Much property was destroyed, but no lives lest. A Chicago Bank Suspended. CHICAGO, April 22.-The Cook County Savings Bank suspended. Liabilities $80,w The depositors number 600, mostly Scandiesviana of a Camp Seeding Ground. PHYNBURG, April 22 -One hundred and irame cottages on the Methodist camp meeting grounds as Tarentar burned. The collages were generally of four and of meat architroture.

8. April 24, 1876 Evening Star Washington, DC
Article from Evening Star, April 24, 1876

Click image to open full size in new tab

Article Text

THE COOK COUNTY SAVINGS BANK. Chicago, has suspended as a bank of deposit. Its liabilities are $80,000. There are six hundred depositors, mostly Scandinavians, who, the directors affirm, will receive nearly, if not quite, dollar for dollar.

9. July 16, 1876 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, July 16, 1876

Click image to open full size in new tab

Article Text

THE COOK COUNTY SAVINGS BANK. To the Editor or The Tribune. CHICAGO, July 15.-During the last few days the depositors of the collapsed Cook County Savings Bank have evinced considerable interest in the doings of that institution, and have expressed their sentiments touching the management of said bank in language more forcible than elegant. As may or may not be generally known, the greater portion of our Scandinavian fellow-citizens have been depositors in the late bank, and when its suspension occurred. the chagrin, mortification, and consternation of those people knew no bounds. They at once set to work devising ways and means of obtaining at least a small portion of their hard-gained earnings. A meeting was called, at which a committee selected from among the depositors, was appointed to examine into and ascertain the true state of affairs. The committee having the matter in charge have now finished their ardorous task and report the condition of the bank as follows: Total amount of indebtedness, $145,830.64 claims, now pending in Court, $125,000; banking stock, $700; claim on the firm of Henry Clews & Co., New York, $3,808.56; probable claims on stockholders, $10,000; claim on an Albany firm, $15,000. Sum total, $154,550.56. The claim for the above mentioned $125,000, is, as stated, now pending, and it is believed judgment will not be rendered until some time in October. The claim for $15,000 from Albany is of a very doubtful character, and can be reckoned for nought. The same may be said of the claim on Clews & Co., as the firm, as gone into bankruptcv. The Committee censure the Board of Directors severely for having misused the confidence reposed in them by depositors, by allowing one of the officers of the institution to use the greater part of the funds. The Scandinavians have lost not a little by this failure, and are very indignant at the turn things have taken. A meeting will be held by them Monday evening at the Scandinavian Workingmen's Hall, on Halsted street, near Chicago avenue, to which they cordially invite American and Irish depositors (of whom there were not a few) to be present. Matters of deep interest will be brought forward and legal A. opinion called for.

10. July 25, 1876 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, July 25, 1876

Click image to open full size in new tab

Article Text

DEFRAUDED DEPOSITORS. THE COOK COUNTY SAVINGS-BANK. Another meeting of the depositors of the late Cook County Savings-Bank was held at the corner of Halsted street and Chicago avenue, the special object being to take steps to employ an attorney to look after their Interests in settling the affairs of the collapsed concern. The attendance was not so large as at some of the former meetings, the feature of which was the presence of several ladies. Ald. Smith was called to the chair. After the meeting had been called to order, Mr. Paulson said that, in view of the alim attendance, it would be useless to undertake to raise any money, and beside, he had about becomo satisfied that the hiring of an attorney would not advance the interests of the creditors. Mr. Carl Dreier, the Assignee of the bank, said no did not see how the employment of an attorney could be of any benefit. The attorneys employed by the Directors were doing all they could in pressing the Rhode Island suit for $125,000, and also the other claims making up theassets. As Assignce, he would work In thelnterests of thedepositorsalonc, but would suggest the appointment of a committee to co-operate with him and with Measrs. Jewett and Waite, his attorneys. Mr. Waite, representing a female creditor, sald he was In favor of employing an attorney, and was not satisfied to rely on the Assignee. Another gentleman waited to know of Mr. Drefer whether in his opinion the officers of the bank had run the business honestly, and If so, how it was that Mr. Taylor, the late President of the bank, was $125,000 ahead. Mr. Dreler responded that Mr. Taylor had loaned the $125,000 drawn from the bank to n business firm with which lic was engaged, and without the knowledge of the other officers of the bank; It was the same money that was now in suit. Several depositors spoke. stating that they had been decelved by the bank management In various ways, showing how they had been promised their money time and again, and how, finally, they had called for It, and found the Institution closed. They were in favor of prosecuting the officers of the bank, criminally, of sucing the stockholders, and employing an attorney to take charge of the whole affair, believing that delay was dangerous to their Interests. Finally, Mr. Paulson moved that a lawyer be employed. A voice-What is the lawyer going to dol We want him to watch the Assignee. We don't want any kid-gloved lawyer, or one who would become the tool of the bank as the Assignee had. [Applause.] A general experience meeting followed, In which there was considerable feeling mantfested against the Assignee, who, many of the depositors said, had lied to them repeatedly when they were inquiring at the bank. One even went so far ns to any that the Assignee had threatened to kield him when asking a civil question about the condition of affairs, and another that he would give $100 to any one If he could get a hold ou the Assignee or officers of the bank by which they could be made to suffer. The following gentlemen were appointed a Committee to secure an attorney for the depositors: A. Walte, Olo Mauland, and Gustave Nelsen. A subscription was then opened to raise a fund to retain an attorney, and quite a large amount was pledged. The meeting then adjourned, subject to the call of the above Committee.

11. September 16, 1877 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, September 16, 1877

Click image to open full size in new tab

Article Text

EXPLANATORY. The jump on July 17, 1876, from 44 to 73 was caused by the failure of the Cook County Savings Bank, and on the next day the calls fell to the average number, which is about 32. On July 16, 1S77, the first St. Louis failure was reported, and the demand for money at once increased. During the run in that city the applications ranged from 56 to 79 per day, nearly double the average. On the 24th of July the riots were inaugurated in Chicago, and during their continuance the applications fell off greatly, people apparently considering that their cash was safer in the bank than in the hands of the " distributors of property." alias the Commune. On the 29th ult. the State Savings Bank failed, and in one day the demands increased from thirty to 163. This was the highest point touched, and from that time there has been a gradual falling off until yesterday. Saturdays and Mondays the drafts are heavier than on other days, the bank being open longer. Mr. Myers, manager of the bank, being subjected to theusual pumping process, opined that people had PRETTY NEARLY COME TO THEIR SENSES AGAIN. Saturday (yesterday) the bank had received deposits to the amount of IS per cent of its payments, this being. of course, exclusive of its commercial business,-the most important part said You see," its transactions. of of a Mr. Myers, outside a bank and string. you carreople a run. That is a small matter, for in all savings banks there is a rule, without which business could not be carried on at all, demanding a thirtv or sixty day notice of withdrawal. But the thing which does try a bank's solvency is the commercial business; the drafts which are handed over the counter in a pocket-book and of which the outside folks know nothing at all. Those drafts we have to meet right away and there is no notice as to them. Where people have money drawing interest, the bank, which has loaned out that money in order to earn the interest, must have a certain time in which to convert its securities into cash, but in commercial accounts the money is supposed to be in the bank vaults, and must be produced on demand. Here is A LIST OF THE OCCUPATIONS of those who came round here on the day the State Savings Institution closed its doors hunting their money. Take it along with you; it's t quite Interesting." n The document is given, and, showing as it does the varied occupations of the depositors, may be looked upon as a contribution to , the savings-bank literature of the day: c Dry goods, 1; clerks, 6; bookkeepers, 4; shippers, 1; salesmen, 2; physicians, 1; grocers, 1; undertakers, 1; teachers, 1; music teachers, a 2; clergymen, 1; advertising agents, 1; lumber e inspectors, 2; Chicago Dock Company, 1; agent e Old People's Home, 1: school-boys, 2; ticketiagents, 1; machinists, 3; carpenters, 15; blacke smiths, 4; goldsmith, 1; coppersmith, 1 printers, 5; painters, 2; shoemakers, 6; stone cutters, 4: boarding-house keepers,2; butchers 2; upholsterers, 2; watchmen, 2; bookbinders 1; barkeepers, 1: bricklayers, 1; tailors, 2 paper-hangers, 1; saloonkeepers, 2; carriers d 2; expressmen, 3; tinner, 1; coachman, 1 sailors. 1; teamster, 1; brushmaker, 1; steam laundrymen, 1; coopers, 1; saddlers, 1; tan 1ners, 1; firemen, 1; peddlers, 1: Gas Company g 1: waiters. 2; glaziers, 1; bakers, 2; molders es 1; laborers, 4; rolling-mill, 1; women, 50 1€ total number, 163.

12. June 22, 1879 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, June 22, 1879

Click image to open full size in new tab

Article Text

Cook County Savings Bank. To the Editor of The Tribune CHICAGO, June 31.-I have expected to see a letter from Mr. Carl Dreier, Assignee of the Cook County Savings Bank, in reply to my letter published in last Sunday's TRIBUNE, but none. has appeared. In a morning paper of Thursday appeared a report of an interview had by a reporter of that paper with Mr. Dreier. He denies the charge that the bank for two or three months just previous to its failure refused to pay out any money, although it received deposits. His denial is opposed to the statements of over thirty depositors. He says that he believes the depositors understand the condition of the affairs of the bank, and are satisfied with what he and his counsel are doing. 'What foundation is there for that statement, when the depositors, one and all, declare themselves not satisfied with what is being done, and denounce him in the bitterest terms? His explanation as to the cause of the bank's failure may be correct, but why did it continue to run when it was evident that it must some time go under? He says that the delay in winding up the concern was unavoidable, owing to the slow process of the law. He does not say when the suit against Taylor & Co. for $150,000 was commenced. An ordinary suit. can be disposed of in & year. Two years are sufficient to dispose, of the most complicated and hardly-contested case, if it is properly prosecuted. He has stated that the suit against Taylor & Co. had been decided adversely to the bank, and that Judge Blodgett had refused a new trial. Now he says that the case is still pending; by which he may mean that it is the intention to take an appeal. He does not deny that his attorneys claim $6,000 for services rendered in that case, which they lost. and for which services he has attempted to give them a first lien on the assets. He does not deny that he refused to give the list of depositors' names, or the stockholders' names, or information to the depositors. From a list of the stockholders which I have, it appears that many of them have not paid their assessments. Many of them are solvent. Mr. Dreier has given no reason why he has not compelled them to pay. Even now he could save the depositors expense and trouble by turning everything over to them, but be will not do it. He compels them to go into court to oust him. He told me that he would give up his position and let the depositors take the matter into their hands, if they would pay his attorneys $6,000, making his withdrawal conditioned on the performance of an act which the depositors can not and ought not perform. To the reporter he said that he was willing to resign his connection with the