3886. Illinois Trust & Savings Bank (Chicago, IL)

Bank Information

Episode Type
Run Only
Bank Type
trust
Start Date
June 6, 1893
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
3ff844e44e679d1e

Response Measures

None

Description

Multiple contemporary papers report a large run on the Illinois Trust & Savings Bank beginning June 6, 1893. The bank remained open (paid out through the night, posted notices, added tellers) and ultimately restored confidence; there is no report the bank suspended or closed as a result. Cause is consistently described as wild/unfounded rumors circulated by brokers (panic).

Events (1)
1. June 6, 1893 Run
Cause
Rumor Or Misinformation
Cause Details
Runs precipitated by wild, unfounded rumors and sensational circulation by brokers after other recent failures (e.g., Hermann Schaffner & Co.); articles call them 'wild and unfounded rumors' and 'General Lack-of-Confidence'.
Measures
Kept bank open late/overnight, posted notice to remain open until late, increased force of paying tellers (multiple windows), prominent individuals (e.g., L.Z. Leiter, Philip Armour) publicly guaranteed or reassured depositors and some deposits were cashed in gold.
Newspaper Excerpt
The Illinois Trust and Savings bank remained open till 3 o'clock this morning to give anxious depositors a chance to draw their funds; between 1,200 and 1,500 people formed in line today to withdraw their deposits.
Source
newspapers

Newspaper Articles (18)
1. February 11, 1893 The Herald Los Angeles, CA
Article from The Herald, February 11, 1893

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RECEIVER J, F, CRANK RESIGNS, An Unexpected Event in the Cable Road Case. Four Supreme Court Opinions on Southern California Cases. Thomas Lynch Convicted of Petit Larceny-Both Mon Claim the Land. Court Notes-New Suits That Were Filed Yesterday. A very unlooked for denouement took place yesterday morning in Judge Van Dyke's court, where the argument is going on in the case of the Illinois Trust and Savings bank of Chicago VS. The Pacific Railway company. It was announced that Receiver J. F. Crank, who has been occupying that difficult and onerous position for about three years past, had resigned. The news came SO suddenly that it was a great surprise to those who were not on the inside workings of the cable company. The announcement of the resignation was followed by a motion for the appointment of D. K. Trask. a well-known attorney of the city, to fill the vacancy. He was duly appointed and the court fixed his bond at $25,000. Mr. Crank announced that he would be ready to turn over his accounts to his successor on the 15th of the present month. The arguments in the case were then resumed and continued throughout the day, a large portion of the time being occupied by Attorney-General Hart, representative of the heirs of the Joshua Hendy estate of San Francisco. Mr. Hart is fighting the foreclosure of the mortgages and presented his points upon the subject in an elaborate manner. The reason for the resignation of Receiver Crank is not spoken of very freely by those concerned. As far as is known the action taken seems to be regarded as having an important bearing upon electric the systems consolidation at the of termination the cable and of the foreclosure suit. however, is were case denied about it. by The those arguments who This, in questioned the will not be concluded for a day or two further, as the attorneys for the intervenors have yet to present their views upon the big case.

2. June 6, 1893 The Record-Union Sacramento, CA
Article from The Record-Union, June 6, 1893

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ANXIOUS DEPOSITORS. CHICAGO BANKERS ARE HAVING TROUBLOUS TIMES. Board of Trade Brokers Trying to Precipitate a Panie-Unusual Banking Hours. Special to the RECORD-UNION. CHICAGO, June 6.-3 A. M.-The failure of Hermann Schaffner & Co.'s Bank, which occurred last week, bore fruit yesterday in well defined runs which were precipitated on almost, if not every one of the savings banks of Chicago. First to feel the effect of the excitement was the Bank of Commerce, where a great many of the accounts. The class keep Jewish their citizens Schaffner poorer failure had alarmed them and they bore down upon the Commerce at the opening hour. Tellers were doubled up and paid checks as fast as presented throughout the day, the officials of the bank expressing no and that they to meet would alarm be whatever, able any saying demands. The Illinois Trust and Savings Bank, which has a larger line of this class of deposits than any other bank in the city, amounting at times to over $12,000,000, put on an and everyone as as extra rapidly force of tellers possible. paid At o'clock this afternoon they posted a notice on the front door that the bank would remain open until 10 o'clock to-night, and as long as the present excitement continued. The Hibernian Bank, which, as its name implies, was the depository for a large number of Irish-Americans of small means, was crowded all day, but found no difficulty meeting all demands. The Dime Savings Bank took advantage of the rule requiring, if necessary, sixty days' notice of withdrawal and paid only a percentage of deposits to-day. The Globe Savings Bank applied the thirty-day rule. The Milwaukee=avenue Savings Bank sustained a moderate run throughout the day, and they, too, kept open 9 o'clock was noted Equally housa spirited until checking to-night. upon the Price, State National and rie as well as State Savings Banks, Prai- upon the Union Trust Company and the Avenue Savings Bank, but in no case was any alarm felt by well-informed people. In many these fact, at of institutions large depositors came in during the afternoon and made heavy deposits. To-day's situation was greatly aggravated by a number of Board of Trade brokers, who for reasons of their own devoted themselves to the circulation of sensational rumors in which they involved at one time or another nearly every bank in the city and a large number of leading stock yards operators. Notwithstanding these malicious efforts no fear is felt as to the safety of any of the leading banking institutions of the city. The failure of Meadowcroft Brothers, a total of minor institution, with deposits perhaps $200,000, aroused little or no interest. At midnight the Illinois Trust and Savings Bank was still paying off, and the crowd of depositors anxious to draw was as large as money bank still ever. The officials are rather pleased than pay out the it otherwise to money, as means a big saving to the institution in interest. So far the net profit is about $35,000. At this hour it was announced that the bank would not close as long as a single depositor cared to draw out a dollar. The paying of money is being continued at seven windows. President Mitchell said: "We will right months and not here for three close stay our doors night or day if such a proceeding should become necessary. We are good for any run no matter how long it keeps up." " At 1:30 A. M. the Illinois Trust and Savings Bank was still open, the force of paying-tellers at seven windows having been relieved by fresh men and enough people are still waiting for money to keep the bank open two hours more. President Mitchell said he had plenty money on hand and plenty of men to pay it out.

3. June 6, 1893 San Antonio Daily Light San Antonio, TX
Article from San Antonio Daily Light, June 6, 1893

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FINANCIAL CRASH In Chicago-The Run Continues On the Savings Bank. CHICAGO, June 6.-Between twelve and fifteen hundred people formed in line today at the Illinois Trust and Savings bank to withdraw their deposits, although the bank had remained open until long after midnight last night, paying out money, on demand. The crowd at 10.o'clock this morning was several times larger than at any time yesterday or last night. At other savings banks, also, a run which began yesterday seemed to have grown in proportion today. .At the Illinois Trust and Savings bank last night the last depositor in line got his money at three o'clock this morning. Then the bank closed until ten o'clock this morning. The stockholders are estimated as being worth a hundred and fifty millions. The bank has not called a loan in nine years. L.Z. Leiter, who is one of the heaviest stockholders in the bank, said last night: "I have real estate enough to pay all these claims, and it is at the service of the bank. Every person who has a dollar here may have it on demand. I am able alone to make the assertion good, and two other men are willing to do the same thing. Before going to Europe I personally examined the collaterals for loans made. It could not be better. I will guarantee every loan the bank has made for every trifling percentage.

4. June 6, 1893 Rock Island Daily Argus Rock Island, IL
Article from Rock Island Daily Argus, June 6, 1893

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WINDY CITY BANKS Gen. Lack-of-Confidence Gives Them Annoyance. RUNS ON HALF A DOZEN CONCERNS, One Bank Pays Out Money All Night, and All Declare the Scare to Have No Basis -The Hiberrian, Prairie State National, Dime Savings, Union Trust, and Illinois Trust the Institutions Attacked-A Wild Day Among Savings Depositors. CHICAGO, June 6.-The "lack of confidence" which has been cavorting around the country for some time and has already bowled over a couple of Chicago banks with numerous concerns in other lines of business seems to have settled down over the city to test the endurance of the banking institutions in earnest. Depositors began to be uneasy. rumors were sent flying about and General Lack-of-Confidence touk charge for a day. The rumors grew thicker and wiider asthey passed about and the result was runs on several institutions which were they to fail would cause widespread suffering in this city and vicinity. The Banks That Met the Run. The banks which had the storm to stand were the Prairie State National bank, the State Bank of Commerce, Hibernian Savings bank. the Dime Savings bank. the Union Trust Company's bank. and the Illinois Trust and Savings bank Under the circumstances it is no small tribute to the soundness of Chicago banks to say that they all withstood the strain. Where the rumors sprang from is a mystery. It is no mystery how they spread, for wildfire is no quicker in its flight than rumor when she takes a fling at the banks. The Hibernian Bank. The bank whose fallure would have caused the MORE trouble is the Hibernian Banking association. The officers were not at all alarmed over the run made there. It is regarded as one of the strongest savings banks in the country. The depositors are mostly Irish and it is the depository of large amounts of the funds of the various Roman Catholic parishes. Its last report showed deposits of $2,730,000 individual deposits of $750,060, undivided profits of $383,000. The capital stock is $220,000. Vice President Charles F. Ciark, who is manager of the savings department. said at 1 o'clock: "We have been paying depositors all the morning at the rate of three a minute. They are poor people who have every dollar in the world they possess with us, and naturally with the existing conditions they have gotten nervous. We do not biame them." Run ona Dime Savings Bank. Another bank that had to suffer for General Lack-of-Confidence was the Dime Savings bank. There was a big crowd outside and inside, but President Samuel G. Bailey expressed no uneasiness, no1 would he say whether the bank would enforce its thirty day rule. "We have funds sufficient on hand," he said, "for all regular purposes, and even for an emergency. No occasion exists for this alarin, except the general uneasiness in the air." The bank does solely a savings business, its last report shewing deposits of half a million, and a surplus of $51,000. The loans at the time of the same report amounted to $457,000, while United States bonds and cash on hand aggregated $2.5,000. All its loans are secured on real estate. Union Trust Has a Time. Depositors by the hundreds crowded into the Union Trust Company's bank to get their money, but soon after seeing President Rawson's coolness and even amusement, many went out again without drawing their deposits. But the crowd of witndrawers was immense, just the same. "We saw this coming," said Mr. Rawson, "and were ready for it. We'll pay 'em all." The Union Trust is a member of the Chicago clearing house. It has over $1,000.000 to draw upon above its liabilities. Still people went up and drew out their deposits as if it was the last chance, and as each received his money he drew a long breath of relief. An Ex-State Bank Examiner's View. William M. Roberts, late state bank examiner, visited the different savings banks several times during the day and assisted in allaying the fears of depositors. Speaking of the general situation he said: "I do not believe there is a state bank in Chicago that is not fully able to pay $1.10 for every $1 it owes. People have been needlessly alarmed by the collapse of private institutions." WILD PANIC ALL DAY, But Only One Failure. Private Bankers.

5. June 7, 1893 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, June 7, 1893

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THE PANIC SUBSIDING. Confidence Partly Restored Among Chicago's Saving Banks Depositors. Special to the Indianapolis Journal. CHICAGO, June. 6.-To-day's developments in the financial situation showed an increased steadiness among the monetary instructions of Chicago. True, the people continued to walk up to the wickets of the paying tellers to demand their deposits, but the numbers were reduced and a more widespread feeling of confidence assumed the place of the panicky outburst of yesterday. Those banks upon which the run was continued to-day were the Illinois Trust and Savings. the Hibernian, the Union Trust and Savings, the Globe Savings, the Dime Savings and the Bank of Commerce. Those that demanded the lawful notice of withdrawal of deposits were the Union Trust and Savings, the Dime Savings and the Globe Saving. At the Illinois Trust and Savings Bank last night the last depositor in the line got his money at 3 A. M. then the bank closed until 10 o'clock this morning. The assets of the bank are placed at $28,114,000. The stockholders are estimated as being worth $150,000,000. The bank has not called in a loan in nine years. L. Z. Leiter, who is one of the beaviest stockholders in the bank, says: "I have real estate enough to pay all these claims, and it 18 at the service of the bank. Every person who has a dollar here may have it on demand. I am able alone to make that assert a good, and two other men are willing 10 do the same thing. Before going to Europe I personally examined the collateral for loans made; it could not be better. I will guarantee every loan the bank has made for a very trifling percentage." " This afternoon it was easy to see the excitement was dying out. Philip Armour was responsible for the allaying of the fears of many of the depositors of the Illinois Trust and Savings, by walking up to the people and saying that he would guarantee their savings. About one hundred took advantage of the millionaire's offer, and some accepted a written guaranty. One woman received $1,800 in gold. The banks closed their day's business at the usual hour, and the directors make the statement that they are prepared to stand the run for an indefinite period, and are satisfied with the condition of affairs as sho wn by to-day's signs of returning confidence. Little more than the usual daily demand for currency in exchange for coin was made at the subtreasury to-day by the local banks. The Clearing House Association discussed the general situation. and gratifying reports were received, indicating that the savings banks were in good shape to meet all requisitions.

6. June 7, 1893 The Anaconda Standard Anaconda, MT
Article from The Anaconda Standard, June 7, 1893

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IN BUSINESS CIRCLES. The Feeling of Uneasiness Seems to Be Increasing in the East. CHICAGO, June 6.-In spite of the fact that the Illinois Trust and Savings bank remained open till 3 o'clock this morning to give anxious depositors a chance to draw their funds. a new line began to form before 8 this morning and at 10, the hour for opening. between 1,200 and 1,500 people were waiting at the doors with their savings books. The crowd was several times larger than at any time yesterday. The bank is considered absolutely sound. The assets figure up over $28,000.000 and its stockholders are estimated to be worth in the aggregate fully $150,000,000. At other savings banks the runs which began yesterday seem to have increased in size.

7. June 7, 1893 The Herald Los Angeles, CA
Article from The Herald, June 7, 1893

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THE GREAT FINANCIAL UPHEAVAL Continued Runs on Chicago Savings Banks. The Baldwin Locomotive Works Forced to Assign. Three Banks Close Doors at Spokane, Wash -Bank Failures in Ohio, Indiana, Wisconsin and Other States. By the Associated Press. CHICAGO, June 6.-In spite of the fact that the Illinois Trust & Savings Bank remained open till 3 o'clock this morning to give anxious depositors a chance to draw funds, a new line began to form before 8 o'clock this morning, and at 10 o'clock, the hour for opening, between 1200 and 1500 people were waiting at the doors, with savings books. The crowd was several times larger than at any time yeaterday. The bank is considered absolutely sound. Its assets are figured upat over $28,000,000, and its stockholders are estimated to be worth in the aggregate fully $150,000,000. At other savings banks the runs which began yesterday seem to have increased in size. During the time when the run on the Illinois Trust bank was hottest this afternoon, Philip D. Armour, the millionaire pork packer, sent out some of his clerks to bring into his office 100 or more of the excited depositore, mostly women. To these Mr. Armour madea brief speech. assuring them that the bank was all right, and added that Armour & Co. will guarantee to each of them the full amount of their deposit; if any of them were not satisfied with this let them speak up and he would give them their money. Two women asked for the amount of their deposits, which were immediately paid in gold, while the remainder of the people went away satisfied. WASHINGTON, Jane 6.-Comptroiler Eckels said to the Associated Press this morning that 80 far as he was advised no national bank in Chicago has been affected by yesterday's financial flurry. The clearing house there stands ready to assist its members whenever necessary. The abstract of the condition of the Chicago national banks on the date of last call, shows a reserve of 29.45 per cent, 4.45 per cent above the legal requirement. The total resources are $160,864,804, R surplus of $11,510,700; undivided profits, $1,593,000.

8. June 7, 1893 The Roanoke Times Roanoke, VA
Article from The Roanoke Times, June 7, 1893

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FINANCIAL PANIC. Chicago Banks the Victims of Wild Unfounded Rumors. CHICAGO, June 6.-Wild and unfounded rumors of impending financial disaster caused a senseless run on many of the banks in Chicago. Those chiefly affected were the Prairie State National bank, the State Bank of Commerce, the Hibernian Savings bank, the Dime Savings bank, the Union Trust Company's bank and the Illinois Trust and Savings bank. Under the circumstances it is no small. tribute to the sagicy, soundness and foresight of Chicago bankers to say that all withstood the strain. Where the rumors sprang from is a mystery. It is a mystery how they spread, for wildfire is no quicker in its flight than rumor when she takes a fiing at the banks.

9. June 7, 1893 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, June 7, 1893

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MORE CONFIDENT. Run on the Chicago Savings Banks About Over. CHICAGO, June 6.-Today's developments in the financial situation showed an increased steadiness among the mon etary institutions of Chicago. True, the people continued to walk up tothe wickets of the paying tellers to demand their deposits. but the num bers were reduced and a more widespread feeling of confidence assumed the place of the panicky outburst of yesterday. Those banks upon which the run was continued today were the Illinois Trust and Savings, the Hibernian, the Union Trust and Savings, the Globe Savings. the Dime Savings and the Bank of Commerce. Those that demanded the lawful notice of withdrawal of deposits were the Union Trust and Savings, the Dime Savings and the Globe Savings. This afternoon it was easy to see that the exeitement was dying out. The banks closed their day's business at the usual hour, and the directors make the statement that they are prepared to stand the run for an indefinite period, and are satisfied with the condition of affairs as shown by today's signs of returning confidence.

10. June 8, 1893 Grand Rapids Herald Grand Rapids, MI
Article from Grand Rapids Herald, June 8, 1893

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END OF THE RUNS. Chicago Hanks Have a Chance to Breathe Freely Again. CHICAGO. June 7.- With one excep tion. the Hibernian Savings bank, the runs inaugurated are not nearly so heavy today. the crowde being less than half as large as yesterday. At the Hibernian the long line of depositors was confront ed for the first time this morning by a notice to the effect that a thirty days' notice would be required on deposits of $100 or less and sixty days on amounts above that figure. Phil Ar mour, the multi-millionaire, walked up and down the line of depositors in front of the Illinois Trust & Savings bank for an hour today and assured the people that he personally know the bank to be solvent and able and willing to pay everybody on demand. At the same time he told them that a run was injurious to everybody. and especially to the deposit ore with money in a solid bank, and advised them to drop out of the line and return to their homes. He even went so far as to assure those who were in need that if they would step into his office across the street he would cash their books without discount.

11. June 8, 1893 Echo De L'ouest Minneapolis, MN
Article from Echo De L'ouest, June 8, 1893

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FAILLITES DE BANQUES L "Exchange Bank" de Glad stone, Mich., a fait faillite. C'est une conséquence de la faillite d6 la "Plankinton BaLk" de Mi'waukee. MM, SAuger, Moody et Steel de Jolliet, Ill., ont fait faillite. La "Patt r's Bak" one des plus vieilles banques du comté de Paulding, Ohio, viont de fermer ses portes. Elle avait été établie en 1874 et faisait des affairea considérables. MM Ch-vraton, Martin et Cie banquiers avenue Ogden à Chra go viennent de déposer leur bilan Passif 100.000 dollare. Lq "Merchants National Bank," la plus vieille de Tacoma, Wash., a suspendu BEB paremente. Son capital était de $250,000. La Plankin'on Bai k" de Mil waukee, a fait failli'e. MM. Hermann, Schaffner et Cie banquiers de Chicago ont déposé leur bilan On dit que Schaffner B'est suicidé. La "Bank of Beresford," S. D vient de fermer ses portes. A sa tête se trouvait A. A. Amee. La "Sandusky Savings Bank Company" de S ndueky O. a suspendu 803 paiements. La "M rchants National Bank" de Fort Wo th Texas, à fermé ses portes. La "Canyon Bank" de Spokane à fait faillite. -MM. Madowaraft frères, banquiers de Chicago, ont déposé leur bilan. A Milwaukee la "South Side Savinga Bauk" et la "Second Ward Bank" sont sur le point de suivre l'exemple d - 8 banques BUB nommée3. Il en est de meme de la "Illinois Trust & Savings Bank of Chica go."

12. June 8, 1893 Mexico Weekly Ledger Mexico, MO
Article from Mexico Weekly Ledger, June 8, 1893

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THE Illinois Trust and Savings Bank, of Chicago, has done more to calm the troubled waters in financial circles than any other institution in the country. A run was started on this bank this week and the President, Wm. Mitchell, a brother of Capt. L. C. Mitchell, father-in-law of R. M. White and well known in Missouri, displayed a card to the depositors late in the evening stating that the "bank would be open all night to pay those who wanted their money." The bank kept its doors open till 2:30 a. m. paying all who called. The next morning it opened two hours earlier than usual and in a few minutes the run was over and confidence restored. This bank is one of the strongest in the United States and has more than eight millions of dollars out on call loans which can be realized on in twenty-four hours.

13. June 9, 1893 Morning Journal and Courier New Haven, CT
Article from Morning Journal and Courier, June 9, 1893

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BETTER BUSINESS FEELING. End of the Excitement in ChicagoMoney Going Back Into the Saving Banks-Cheerful Views of Business Men. CHICAGO, June 8.-The bank run here has entirely subsided. The Illinois Trust and Savings bank opened this morning with $600,000 more money in its vaulta than it had when the run started on Monday. At 11 o'clock this morning there was not the slightest evidence of a run, and a few of those who had previously drawn their money were redepositing. Like conditions were reported at all the banks on which runs had been made. Such business men as Marshall Field, T. W. Harvey, David Kiley, L. Z. Leiter, James H. Walker and Frank J. Kennett think that the splendid manner in which the banks stood the run will do much to restore confidence all over the country, as it shows that the legitimate banks are strong. In interviews just had by the Evening Post's correspondent with officials of banks doing a commercial business, the opinion was universally expressed that as the run is now over the banks here will be more liberal in assisting customers who show that they deserve help, and that failures will decrease. The cashier of a large national bank said that a good many of the failures that have recently occurred in commercial circles ought net to have been allowed, and had the banks with whom they did business extended their usual line of loans, the concerns would have gone through all right; but the banks cannot be blamed for their caution, as they did not know where lightning would strike, hence they wanted to be prepared. But the scare is over, and I look for a steady recovery of confidence. I also think that every reputable commercial bank in the city is stronger in cash means than at any time in six months." The manager of the Chicago department of the Bank of Montreal said: "We are taking care of our regular customers, but do not want any new ones just now. Our rates are 6 per cent."

14. June 15, 1893 The Farmers' Union Memphis, MO
Article from The Farmers' Union, June 15, 1893

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Bank Open All Night. During the recent run on Chicago banks the Illinois Trust and Savings Bank remained open till long after midnight, paying out money on demand. The last depositor in the line got his money at 3 a m., then the bank closed until 10 o'clock in the morning. The assets of the bank are $28,114.000. The stockholders are estimated as being worth $150,000.000. The bank has not called a loan in nine years

15. July 14, 1893 The Providence News Providence, RI
Article from The Providence News, July 14, 1893

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Refused to Make an Accounting. CHICAGO, July 14.-The Illinois Trust and Savings bank, administrator of the estate of Walter M. Lovett, has made application for a receiver for the Smith Corrugating company. It is claimed that a large amount of money is due to the estate of Lovett, and that John Smith, proprietor of the Smith Corrugating company, who has the firm's books in his possession, refused to make any accounting.

16. November 28, 1894 The Star Reynoldsville, PA
Article from The Star, November 28, 1894

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NO ASSETS IN SIGHT. The American Debenture Company of Chicago Has Assigned. When a corporation fails with liabilities of $2,000,000, and then turns over to the receiver one book and three second-hand desks, the prospect for the stock and bondholders cannot be considered very rosy, This is what happened in the case of the American Debenture Company, which was organized by Coffin & Stanton, of New York with offices in Chicago. It failed October 10, soon after the parent house succumbed in New York. At the request of Messrs. Trimmingham, Turner and Rlack, of New Jersey, Elias Summerfield was appointed receiver. The foreign holders of $1,000,000 or more of the debentures then stepped in and demanded that the Illinois Trust and Savings Bank be given the receivership. Mr. Summerfield was consequently relieved, and the bank was appointed. It is now six weeks since the Illinois Trust and Savings Bank took hold of the wreck of the Debenture Company. In that time the desks and the book have been all the assets the receiver could secure. The other books of the concern have disappeared, at least the receiver cannot find them. The one book turned over goes back only to last January and is very vague in important points. The Debenture Company was organized under the laws of West Virginia, one of which provides "that one corporation cannot hold the stock and bonds of another corporation." but this is just what the Debenture Company did. It took the stocks and bonds of every corporation and company it could prevall upon to give them up, and issued against them "guaranteed debentures" for investment, and they still have them. Besides the "debentures," the company floated, or had authority to float, common stock to the amount of $2,000,000. It was capitalized for that amount, and most of the stock is held in the East.

17. January 12, 1895 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, January 12, 1895

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CHAMPION SWINDLERS. New Move of Coffin & Stanton Who Figured in Topeka Waterworks Deal. NEW YORK, Jan. 12.-A new move regarding the American Debenture company, Coffin & Stanton's concern, is under way. When they broke up six months ago the Illinois Trust and Savings Bank of Chicago and W. K. Okley, ex-secretary of state of West Virginia, were appointed receivers. Today the news leaked out in Wall street that a quiet effort is being made to have the present receivership proceedings in West Virginia and Chicago dismissed and new ones begun. The object is to set aside the Illinois Savings Bank and Trust company, and W. H. Okley as receivers, and have two new receivers appointed. One of the men mentioned as one of the new receivers is said to be a relative of Coffin, of Coffiu & Stanton, and the other is said to be a relative of Stanton. This change, it was learned, will be made within a very few days if the creditors do not interfere. From the day on wnich the failure of Coffin & Stanton was announced the American Debenture company has been a veritable will-o'-the-wisp from a creditor's view point. Several times they have thought they had the property of the elusive company in their grasp, but each time they were mistaken. This American Debenture company, incorporated under the law of West Virginia, with its main office in Chicago and all its actual business in Europe and New York, has debenture bonds to the extent of nearly $2,000,000 in the hands of investors, and there is believed to be nothing back of the bonds but a conglomeration of worthless stock-stock of incorporations which are in the hands of receivers.

18. January 11, 1897 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, January 11, 1897

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# RECEIVER JOHN C. M'KEON. immediate payment of the greater part of the bank's capital when the money is most likely invested in such a manner that it cannot be called in at once. To save a bank in this extremity there is a provision in the banking laws by which savings banks may decline to pay depositors in full on demand, but may require a notice of 60 days. One of the most memorable runs in the history of Chicago was in 1893, when the Illinois Trust and Savings bank tried to bring its panic stricken depositors to their senses by a parade of strength. The depositors gathered by thousands and were formed into long lines running almost around the block. The bank attempted to meet all demands. The force of paying tellers was quadrupled, all rules regarding business hours were cast aside, and the money was shoved out as fast as a big corps of experts could count it. But these tactics did not have the required effect, and, although the bank was kept open nearly all night and until the last man in line had received his cash, more depositors came the next morning, and it was several days before confidence was restored. A run on a savings bank was started not long ago in New York state by the mere fact that a man had dropped dead in front of the bank. A crowd collected, depositors became frightened, and the original cause of the disturbance was forgotten in the mad rush to withdraw money. The result was so serious that the bank was eventually obliged to close its doors. While people who become so easily frightened are often called harebrained lunatics, there is really little to wonder at in their conduct. Knowing little of financial affairs, they jump at conclusions and do the very thing which will hurt their own interests. Then there are the tragic features. Connected with the Chicago failure these have been more startling than usual. First came the suicide of Banker Wasmansdorff, whose firm was pulled down in the general smash. Then came the suicide of W. A. Hammond, the second vice president of the institution which he was charged with wrecking. These developments were almost as startling as the initial catastrophe. And after the smoke has all cleared away comes the long and often tedious readjustment, when the bank examiner, with his corps of experts, spends weary hours over long columns of figures which have been juggled until they are jumbled into an almost inextricable tangle. This part of the work of the affairs of the Illinois National bank is in charge of John C. McKeon, who has been appointed receiver by Comptroller Eckels. He is one of the most expert accountants in the country and will probably be able to unravel the snarl in due time. JOHN F. WILLOUGHBY.