3908. Lawrence Avenue National Bank (Chicago, IL)

View Charter #12873 on SPMC

Bank Information

Episode Type
Suspension → Run → Closure
Bank Type
national
Bank ID
12873
Charter Number
12873
Start Date
January 2, 1931
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
2015526bdc1aa7c9

Response Measures

Full suspension, Books examined

Other: Police were posted to keep order among worried depositors; later the comptroller appointed a receiver.

Receivership Details

Depositor recovery rate
41.2%
Date receivership started
1931-01-09
Date receivership terminated
1939-03-20
OCC cause of failure
Governance
Share of assets assessed as good
21.4%
Share of assets assessed as doubtful
65.1%
Share of assets assessed as worthless
13.5%

Description

Federal examiners closed the bank Jan. 2, 1931 pending investigation of an alleged robbery/time-lock incident. Depositors gathered and there was agitation (and an incipient run at a neighboring bank) after the suspension. The vault was opened Jan. 5 revealing major thefts and the bank was later found short and placed in receivership by the Comptroller (early January 1931). Sequence: suspension by examiners → depositor agitation/run behavior → permanent closure/receivership.

Events (6)
1. January 14, 1926 Chartered
Source
historical_nic
2. January 2, 1931 Run
Cause
Local Banks
Cause Details
Depositors gathered and threatened the closed institution after news of the Lawrence Avenue bank's suspension; the closure also triggered an 'incipient run' and crowd at nearby Albany Park National Bank.
Measures
Police posted to keep order; neighboring bank officers brought cash and reassured depositors (hired a band to calm crowd).
Newspaper Excerpt
Police were posted at the bank this morning to keep order among worried depositors who gathered at the door.
Source
newspapers
3. January 2, 1931 Suspension
Cause
Government Action
Cause Details
Federal bank examiners ordered the bank closed pending investigation of an alleged robbery and because the vault time lock prevented immediate examination.
Newspaper Excerpt
Federal bank examiners closed the doors of the Lawrence Avenue National Bank ... today, pending an investigation of the alleged robbery
Source
newspapers
4. January 5, 1931 Other
Newspaper Excerpt
the time locked vault doors ... swung open last night and revealed a scene of disorder ... a number of safety deposit boxes had been looted ... between $10,000 and $20,000 taken.
Source
newspapers
5. January 9, 1931 Receivership
Source
historical_nic
6. January 10, 1931 Receivership
Newspaper Excerpt
NAMED BANK RECEIVER ... has appointed receiver the Avenue National bank by the comptroller the Washington.
Source
newspapers

Newspaper Articles (13)
1. January 2, 1931 Evening Star Washington, DC
Article from Evening Star, January 2, 1931

Click image to open full size in new tab

Article Text

EXAMINERS CLOSE BANK AFTER THEFT Inquiry to Be Made Into AIleged Kidnaping of Chicago Assistant Cashier. By the Associated Press. CHICAGO, January 2.-Federal bank examiners closed the doors of the Lawrence Avenue National Bank. a neighborhood institution, today, pending an investigation of the alleged robbery and kidnaping of an assistant cashier yesterday by four men. Bank officials, attempting to open the vault, found the time lock on the steel doors had been set for its maximum run of 72 hours, rendering an examination impossible until Sunday afternoon. Claims He Was Held Prisoner. The robbery was reported by John E. Malloy, assistant cashier, who said he was held prisoner five hours in the bank yesterday and finally kidnaped in his own car and taken to Milwaukee by four men. The quartet had posed as bank examiners, he said, in asking him to meet them at the bank on New Year day. Malloy, reporting to Milwaukee police after his release there, said the vault was timed to open at 2 p.m., yesterday. Police were posted at the bank this morning to keep order among worried depositors who gathered at the door. Malloy told detectives the robbers took approximately $12,000 and looted

2. January 2, 1931 Muncie Evening Press Muncie, IN
Article from Muncie Evening Press, January 2, 1931

Click image to open full size in new tab

Article Text

BANK BUSINESS SUSPENDED Jammed Locks Force Wait. CHICAGO, locked vaults the Avenue tional Bank defied mechanical today, holding fast the proof story that four emptied the safe deposit boxes, kidnaped him and drove him to Milwaukee. Bank officials, told locksmith that vaults opened now them, around doors facing wait until the time lock released. John Malloy, cashier the bank, to Chicago company of detective, though not under arrest, after appearing Central Police Station with his tale robbery and abduction. Mysterious 'Phone Call. Malloy said he spent New Year's Day at the bank, doing extra work. call to the bank, Malloy told the police, formed him that bank examiner would call with three other inspect institution's books. Malloy when peared the door, he admitted them without question. stepped inside, covered me pistols, and locked the outer Malloy asserted. mained in the bank for five hours, searching desks, Open One Vault. have two vaults, for our records and money, the other for safety They got into the safety vault, had left through its boxes, open the they finished, they to an to automobiles, and put Malloy's story telephoned the bank officials. expert examined the time on the open didn't, that the had been that would until 8:30 Sunday. Until then, could be done without the vaults. Jeffries,

3. January 3, 1931 The Tennessean Nashville, TN
Article from The Tennessean, January 3, 1931

Click image to open full size in new tab

Article Text

BEHIND VAULT'S TIME LOCK LIES MYSTERY OF "NEW YEAR HOLDUP" 'Bogus Bank Examiners' Raid,' Doubted by Officials, Can't Be Substantiated Until Sunday Morning. CHICAGO. Jan. until Sunday. when ponderous steel vault opens tomatically. officials be able to learn of the mysterious happenings the Lawrence Avenue Na tional Bank of New Year's day. The institution closed the comptroller finance today. however, while John Malloy. cashier. told being robbed by he thought were bank examiners. kidnaped and finally released Milwaukee Upon returning from Milwaukee custody he said the bank least $10,000 cash, rifled the safe deposit cash. and then the locking device on the safe until Sunday. Vault experts would utterly impossible open until then without using dynamite. With all the bank's records in the safe. with the bank reported about officials skeptical of Malloy's story. bank aminers decided to close the Institution. Malloy. handsome man In his the bank its shipment cash and place the prepara tory merger with another bank time set for o'clock yesterday afternoon able put the money the vault he said. tunately did not went the bank yesterday telephoned. nouncing himself Leyburn. chief bank examiner for this federal reserve district, and sayIng would be the bank shorttwo other. examiners. Three appeared them said admitted them. drew out revolvers forced Then they admitted another fellow through back door. when the time lock oper- (Continued on Page 3)

4. January 3, 1931 Evening Star Washington, DC
Article from Evening Star, January 3, 1931

Click image to open full size in new tab

Article Text

DECLARES CLOSED BANK IS IN SOUND CONDITION President of Institution Says Suspension Was Ordered Pending Investigation of Alleged Robbery. By the Associated Press. CHICAGO, January 3.-The Lawrence Avenue National Bank, closed pending an investigation of a reputed robbery, is in sound condition, its president, George I. Pilat, said in a statement made public today. "The sole reason for suspension of business," he said, "is the imperative need of an investigation of the robbery and the time needed to open the vaults." John E. Malloy, assistant cashier of the bank, who reported that the bank had been robbed of $12,000 by four men who kidnaped him. was questioned by detectives, but definite information was not available because the bank's time locks cannot be opened until tomorrow. Directors of the bank have been negotiating for a merger. An artificial fog, due to clouds of chemical vapor, was spread over an area of 2 miles square in one hour during a recent test in France

5. January 3, 1931 St. Joseph Gazette St. Joseph, MO
Article from St. Joseph Gazette, January 3, 1931

Click image to open full size in new tab

Article Text

WAIT LEARN LOSS IN HOLDUP Bank Time Lock Reset by Robbers After They Kidnap Employe. CHICAGO. mysof New Year's day bank tery was sealed behind the steel doors that will not open until Sunday afternoon. Apprised of the robbery by John assistant who said he was tricked into admitting four bandits bank on the holiday and then kidnaped Milwaukee, federal bank closed the Avenue National Bank today pending an examination. Directors of the bank met New Year's eve, preparing for projected merger with another neighbank. they set the time lock the vault to at m., Malloy said he was called to the bank by man himself federal bank At the bank four forced him admit them. They the vault when it opened, taking in safety deposit he said Malloy estimated the bank's cash $12,000. Officials found the time lock reset, apparently by the roblater. to open seventy-two hours

6. January 3, 1931 St. Louis Globe-Democrat St. Louis, MO
Article from St. Louis Globe-Democrat, January 3, 1931

Click image to open full size in new tab

Article Text

TIME LOCK SEALS BANK HOLDUP SECRET Cashier's Aid, Kidnaped by Bandits, Estimates Loss at $12,000. By Associated Press, CHICAGO, ILL., January mystery of New Year's Day bank robbery was sealed tonight behind the steel doors vault that will not open until Sunday afternoon. Apprised of the robbery by John E. Malloy, assistant cashier. said he tricked four to the holiday and then kidnaped to Milwaukee, federal bank examiners closed the Lawrence Avenue National Bank today pending an exDirectors of the bank met New Year's Eye jected merger with another borhood bank. set lock on the vault to open at p. Malloy to the books available if needed for further the said he called to the bank by representing himfederal bank examiner. At the four forced him admit They ransacked the vault when it opened, taking and securities, and other valuables in safety deposit boxes, he said. Malloy estimated the bank's cash loss at $12. After several hours in the bank, he said, he was taken to Officials found the time lock set, apparently the robbers to open hours later Meanwhile Federal Reserve officials. bank examiners and detectives began Investigations of the robbery.

7. January 3, 1931 News-Pilot San Pedro, CA
Article from News-Pilot, January 3, 1931

Click image to open full size in new tab

Article Text

CASHIER CHARGED EMBEZZLEMENT CHICAGO, Malloy, assistant cashier the Lawrence Avenue National Bank whose story of having been kidnaped by robbers taken to Milwaukee led the of the stitution, charged conspirembezzle $10,000 in issued today. The bank closed yesterdav pending of the cashier's story and checkup of

8. January 3, 1931 The Miami Herald Miami, FL
Article from The Miami Herald, January 3, 1931

Click image to open full size in new tab

Article Text

RUN ON CHICAGO BECOMES DANCE PARTY Chicago, Jan. notes came to the rescue bank notes today and successfully routed an incipient on the bany Park National Bank and Trust Company. Mob psychology starts runs, the bankers figured, pyschology ought stop them. When federal examiners closed the Lawrence avenue bank, neighborhood institution, the Albany bank officers wasted no time preparing threatened their bank the closed. While depositors collecting the door, they put sign, your money any time want brought $2.000,000 from downtown banks and assured patrons the bank sound. Then they hired jazz band to play and the crowd made party

9. January 4, 1931 The Springfield News-Leader Springfield, MO
Article from The Springfield News-Leader, January 4, 1931

Click image to open full size in new tab

Article Text

CASHIER ACCUSED OF BANK ROBBERY AFTER 'KIDNAPING' Faces Federal Charge of Embezzling $10,000 as Detectives read Tricks in Time Lock; See Conspiracy CHICAGO, Jan 3. John F. Mallory, handsome young assistant cashier of the Lawrence Avenue was held tonight on federal charge of embezzling $10,000 while a time lock ticked along toward the hour when the bank vault will open, solving some of the mystery of Mal lory's robbery At 30 m tomorrow when an electric clock completes 72 hour circuit releasing the vault doors bank officials will be able to check their loss Mallory's that was held up the bank New Year day, compelled by four bandits to set the time lock ahead and kidnaped. was discredited when the federal charges were brought. after 36 hour Investigation CHARGE OF CONSPIRACY The warrant. charging that Mal lory embezzled and conspired "with persons unknown" to embezzle at least $10,000 was issued without details Federal authorities said however BRITISH WOMAN FLIER that they disbelleved Mallory be. of several discrepancies, such LANDS AT BERLIN PORT R.S the fact at the time the lock BERLIN AP) Miss Amy should have opened the vault that he British woman land Mallory's explanation was coun ed Temple of ome near here pected bank examiner tered by the assertion of other of at 34 m after flight ficials that he had received no such from Cologne She attempting to instructions from them fly from England to Petping. China Miss Johnson disted off her The bank was explained was with another northward to Luebz where in merged Mallory's she was compelled to make a forced but story prevented completion of those landing After ascertaining her plans and compelled It to close whereabouts she again took off and A description of Mallory's meet- reached Berlin ing with race track betting com. missioner December and the LUCKYTIGER transfer of $3000 to the bookmaker was given by Edward Glick a de For Hair and Scalp! positor of the bank, to police Glick asked that a warrant be issued to hold Mallory and took his request to Judge John H. Lyle's GUARANTEED felony court, without success, bebench until Monday. CAUSED RUN ON BANK Confirmation of Mallory's admission that $10,000 to $12,000 is missing from the bank's vault is expected when the doors are opened tomorrow morning, police said. Mallory charged that the bank robbers took the money He also declared the four men went through safe deposit boxes, removing jewelry. securities and other valuables The safe deposit boxes are controlled by the vault time lock. The Lawrence Avenue bank's dif, ficulties proved embarrassing for time to the Albany Park National Bank and Trust company $3,500 000 firm which is two blocks away When the Lawrence Avenue clos ing became known. depositors stormed the Albany Park bank. demanding withdrawals They were assured of the bank stability. however. and operations were restored S normal GLASGOW Scotland, Jan. 3 The Clyde river is to be deepened and widened so that a giant new Cunarder can reach the ocean after being built. BOOCHOW, China, Jan. & The municipal government plans to beautify the city with wide avenue encircling It. The distance will be 20 miles.

10. January 5, 1931 Imperial Valley Press El Centro, CA
Article from Imperial Valley Press, January 5, 1931

Click image to open full size in new tab

Article Text

HUGE THEFT IS DISCOVERED AS VAULT UNLOCKS Scene of Disorder Revealed When Time Locked Doors Swing Open. CHICAGO, Jan. 5. (U.P.)-While 1,000 excited depositors milled about outside, shouting threats against the institution's cashier, the time locked vault doors in the Lawrence Avenue National Bank swung open last night and revealed a scene of disorder which caused its president almost to faint. Since New Year's night when Cashier John E. Malloy, reported how four men mysteriously had robbed the bank and forced him to set the time clock so that doors could not be opened for the longest possible period, rumors had spread of what would be found inside the vault. Malloy, who faced arraignment today on a federal embezzlement warrant, was not present when the doors were opened and it was disclosed that a number of safety deposit boxes had been looted, with a loss that may run into many thousands of dollars. A smaller vault, in which the bank kept its cash supply, also had been broken open, and between $10,000 and $20,000 taken. The discovery, police said, substantiated the story which Malloy told Milwaukee police Thursday night-that four men, posing as bank examiners, had called him to the bank New Year's day, held him for a four hour automobile ride and set him free near the Wisconsin city.

11. January 9, 1931 Kearney Hub Kearney, NE
Article from Kearney Hub, January 9, 1931

Click image to open full size in new tab

Article Text

week. Steers good and choice 600 900 $10.00 14.25; 900 1300 $9.75 14.25; 1300 1500 14.00; and medium 1300 $625 10.00; helfers good and choice 550 850, $8.00 and medium $5.00 8.00; cows good choice common and medium $4.25 low cutter and cutter $3.00 4.25; bulls, yearlings excluded, good and choice beef cutter and $4.00 vealers good and choice milk fed, 11.50; medium 9.00; and feeder cattle: steers choice 1050 $7.00 common and medium $5.50 7.00. Sheep 14,000; market mostly bulk good and choice lamb 92 pounds and down $8.25; early top $8.85; some held higher; good and choice yearlings $6.75; fat native ewes 4.00: lambs good and choice 90 lbs down medium common all weights $5.50 medium to choice 90 150 cull and common all weights $1.50 feeding lamb good and choice 50 75 7.75. dent would issue to high school stndents where the right drive necessary to their school attendLegislative pay bills were introduced of those introduced two years ago and carry the same appropriations. For salaries members and officers $125,000 appropriated and for the payment salaries employes the two legislative bodies, milage members, supplies and incidentals and $17,500 for printing house and senate journals and session laws of 1931. The bills carry also an emergency clause. BANK ALREADY SHORT. Chicago, Jan. examIners discovered, they said day, that the Avenue National which robbed on New Year's Day, had been in "serious difficulties" for months and short approximate$100,000. addition to more than $70,000 taken by the robbers. John E. Malloy, assistant cashier of the bank, the only national Institution closed this district year, will be arraigned tomorrow charge of embezzlement.

12. January 10, 1931 The Post-Crescent Appleton, WI
Article from The Post-Crescent, January 10, 1931

Click image to open full size in new tab

Article Text

"WORKERS' COUNCIL" OUSTED FROM RULE OF HOME FOR NEEDY Youngstown, headed by admitted Communists last night seized control "friendly the for the this morning former rine was standing guard over portals. When Captain James Hepburn the army appeared to take charge of the former police sub-station, which been equipped with army cots blankets, the "work council" headed by Alfred Walrefused take charge. Mayor Joseph Heffermann Police Chief Lynden, called the scene, told Walton the Salva. tion army would the place, would be closed. mayor finally Wilson, veteran the and soldier tune, and him charge. mayor returned later sit yarns with employed. He distributed tobacco, tried to his Today quiet the Inn" front. TERM After paying fine for his Badtoday to the day the country in with set lines in Little Green NAMED BANK RECEIVER Chicago White, former president the Trust Savings bank, has appointed receiver the Avenue National bank by the comptroller the Washington. Mrs. Swaine, Australia's oldest colonist, died recently at Adelaide the 103.

13. October 7, 1932 The Coolidge Examiner Coolidge, AZ
Article from The Coolidge Examiner, October 7, 1932

Click image to open full size in new tab

Article Text

MOST SPECTACULAR OF FEDERAL AGENCIES swindler who avails himself of the violation of the national banking Bureau of Investigation Is loopholes in the bankruptcy laws, and bankruptcy laws. thefts from Least Advertised. the bureau investigators are coninterstate shipments, bribery. stantly busy checking the schedules crimes on Indian reservations, es of bankrupt petitioners. Thousands Washington.-One of the least adcaped federal prisoners, civil rights. of dollars in hidden assets have vertised yet most spectacular of and domestic violence, and others been returned through this agency. all federad agencies is the bunot assigned to a specific agency. All violations of the national reau of investigation of the United In two fields, especially, the DeStates Department of Justice. To banking act come under the jurispartment of Justice agency is the most casual citizens the bureau is diction of the bureau. One of the protector of civil rights and liberjust a name, if It is known at all. most noted Chicago cases of recent ties. As a co-ordinating policy The credit for famous cases in years was the arrest and convicagency the bureau aids in the capwhich the clinching evidence tion of John E. Malloy, assistant ture and conviction of thousands cashier of the Lawrence Avenue against an International thief, a of state and national laws. At National bank. Malloy misapprodefaulting banker, or a confidence Washington the most complete man on the high seas was furnished priated funds and showed up in fingerprint bureau In the world Is by an agent from the bureau is Milwaukee, claiming to have been maintained for the aid of all pothe victim of a holdup in the bank. generally given the police. lice agencies. The bureau agents, credited as Through the reconstruction of pracNot only are the prints of fedbeing the ace detectives in the tically the entire ledger system of eral violators maintained but the United States and American posthe bank his story was proven false prints of any fugitive wanted by sessions, avoid the limelight. Aland Malloy was sentenced four any police department for any though every agent is trained in years in prison and fined $5,000 on crime from leaving the scene of law and accounting their work is a charge of making false entries an accident to robbery with a gun highly secretive. Publicity Is avoidand embezzling $59,960. are kept. A free "posting" system. as in contrast to the courting Investigation and search for the by which any police chief can have of publicity by most investigating fugitive is never given up by the the fingerprints of a fugitive placed bodies. Department of Justice investigators. on file is maintained. The prints Some of the most dramatic One of the longest successful of every arrested man is checked crimes, made famous in play and searches ended in the arrest and each time against the files and coconviction of Grover S. Elam. a story, come under the jurisdiction operation given the corresponding bank embezzler from the First Naof this body. Their field includes police chief. crimes on the high seas, treason, tional bank of Highland, Wis. The arrest and conviction of The bank failed in 1931 and an Gene Elins for murder is a case 11investigation by the bureau showed lustrative of this work. On Feb$50,000 unaccounted for. Elam was WITH PLAID GUIMPE uary 7, 1931, the bureau received indicted. but because he was sufferBy CHERIE NICHOLAS from the police department at ing from a bad gasoline burn a Tulsa. Okla., the fingerprints of warrant was not served pending Gene Elmis with a notation that he his recovery. In the meantime he was wanted for the murder of a disappeared. Special agents of the police officer. Checking the files it bureau of Investigation instituted a was ascertained that two days presearch for him and a few weeks viously a fingerprint card was re ago he was located in Chicago unceived from St. Paul, Minn., statder the name of Albert S. Nagel ing that one Raymond Parker had and is being returned to Wisconsin been arrested for investigation. for trial. The two prints were Identical and The bureau has been in existElms was tried on the murder ence for 24 years and comprises 22 charge in Oklahoma and sentenced filed offices located throughout the to life Imprisonment. United States and its possessions. The other field In which the buIn each office there is stationed a reau comes most in contact with staff of trained investigators unbusiness and civic leaders is in the der the supervision of an investiinvestigation of all bankruptcy gator in chief. The national difrauds. Practically the only prorector of the bureau is J. Edgar tection legitimate business has Hoover. with the Chicago office beagainst the confidence man and Ing in charge of W. A. McSwain.