3975. Peoples National Bank & Trust Company (Chicago, IL)

View Charter #13311 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
13311
Charter Number
13311
Start Date
June 22, 1932
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
7ea9cd2d3c153abc

Response Measures

Full suspension, Books examined

Receivership Details

Depositor recovery rate
63.0%
Date receivership started
1932-06-27
Share of assets assessed as good
6.6%
Share of assets assessed as doubtful
92.4%
Share of assets assessed as worthless
1.0%

Description

Articles report heavy withdrawals and collapse of the Peoples National Bank & Trust at 1542 W. 47th St., Chicago (closed June 22, 1932) and later receivership distributions (receiver W. W. Pearson distributing dividends in June 1934). A run/large withdrawals precipitated closure by the national bank examiner; the bank remained in receivership and paid dividends in 1934 after prosecution of a former vice-president for misappropriation. OCR typos in articles corrected (e.g., Peaples -> Peoples).

Events (5)
1. April 13, 1929 Chartered
Source
historical_nic
2. June 22, 1932 Run
Cause
Bank Specific Adverse Info
Cause Details
Sustained heavy withdrawals and large decline in deposits (from $12,000,000 in June 1930 to $3,007,000 at closing), reflecting bank-specific distress likely tied to misappropriation and assumption of bad liabilities.
Measures
Board asked national bank examiner to close the doors; later receiver appointed and dividends distributed.
Newspaper Excerpt
There had been heavy withdrawals in recent weeks.
Source
newspapers
3. June 22, 1932 Suspension
Cause
Government Action
Cause Details
Board requested national bank examiner to close the bank; closure executed by the examiner at directors' request.
Newspaper Excerpt
The board of directors asked A. P. Leyburn, national bank examiner, to close the doors of the bank.
Source
newspapers
4. June 27, 1932 Receivership
Source
historical_nic
5. June 8, 1934 Receivership
Newspaper Excerpt
The Peoples National Bank and Trust, according to W. W. Pearson, receiver, has started distribution of a 30 per cent dividend to depositors.
Source
newspapers

Newspaper Articles (4)
1. June 22, 1932 Chicago Tribune Chicago, IL
Article from Chicago Tribune, June 22, 1932

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Article Text

PHILLIP STATE BANK IN ROGERS PARK IS CLOSED Two National Banks of Chicago Shut Doors. The Phillip State Bank and Trust company, 7001 North Clark street, was closed by the auditor yesterday at the request of the board of directors. The bank was capitalized at $500,000 and its surplus and un. divided profit account was carried $285,000. Its deposits at the time of closing were $2,100,000. There had been heavy withdrawals in recent weeks. Trust Company Taken Over. The bank on June 2 acquired the Cook County Trust from Moe Rosenberg, side Democrat politician, through the purchase of $200,000 of preferred stock and 10,000 shares of stock. A year in July 1931, the bank assumed the liabilities of the Illinois State bank, which closed owing $385,000. The Illinois State bank was neighboring bank and the assumption of its debts was declared by Phillip bank officials to be contribution to the of Rogers Park." C. A. Beutel was president of the Phillip bank and Barnet L. Rossett was chairman of the board. Two National Banks Closed. Two national banks were closed yes. terday. One was the Peoples Bank and Trust 1542 West 47th street. The board of directors asked A. P. Leyburn, national bank examiner, to close the doors of the bank. It had deposits of $3,007,000, capital of $1,000,000, surplus of $250, 000 and undivided profits of $110,000. The bank had deposits of $12,000,000 in June, 1930. The Standard National bank of Chi. cago, 7921 South Ashland avenue, was closed. This bank had capital of $300,000, surplus of $25,000 and deposits of $300,000.

2. July 28, 1932 Richmond Times-Dispatch Richmond, VA
Article from Richmond Times-Dispatch, July 28, 1932

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Article Text

Leader of Ring Sought by Police Agitators in Michigan, Ohio and Illinois Said to Be Supervised by Man Named in Writ [By The Associated Press.] PONTIAC, MICH., July plot against banks the described by State police officer who "bold scheme structure major circulating false rumors, was here today coincident with order for the arrest of the ected its activities George Rowland. said be the rector of ring seeking to failure banks by runs resulting from rumors that they were in unsound condition. the object of the search. Captain Ira Marmon of the police raided his hotel and letters and the methods of operation of the ring, described of radicals seeking revolution Smith prosecuting Oakland County declared the plot was by Commungroups the United States and backed Soviets in Russia Directed Activities States. Marmon Rowland the and director of tation for Ohio, and Illinois the ring was the First Bank which cently depositors to support the bank after assuring them was sound Letters Rowland's room seized Captain Marmon revealed the ring were active CleveChicago reported Letters written Rowland the operati in those two cities for the the campaign and asked for president the National Bank Chicago, that city that refrom practically every city country similar campaigns rumors have been directed banks advices the spreadof such rumors banks the attention the United States Service. Secret Service agents already number Moran. chief the said, and every found that the stories untrue the were financial Close operation with State officials cases was promised Letters Rowland's room told the activities of Rowland's agents in Cleveland against the Union Trust Company and Cleveland Trust Company and the "Big Five" Chicago, the Bank and other there Practically the letters contained the "Yours for the revolution. One. written by Comrade HG, referring the circulation the false did not have trouble in convincing the agitation bureau that this important work the sooner strip petty bourgeois the white-collar his faith banks will about the unrest that will lead to the Another written by Rowland "Comrade plans of the to about run many parts the country apparently was considered this program simultaneous against institutions and other key institutions through the country and Continued on Page Five. Harmonious Conference Between the Candidate and Bay State Chief Assures Formal Stand Cermak Claims Entire Midwest Mass. Executive to Give Statement After Nominee's Speech Saturday [By The Associated Press NEW YORK July last Smith leaders was over Roosevelt cause today Smith in the Middle reported in and own set for August Ohio. Governor who remained the one "happy warrior's' chieftains on record favor the New York spent two and half hours with Roosevelt the executive manAlbany When the session was over. was evident from the conferees replies queries, that harmonious agreement had been reached. whereby Ely will statement and will the fight for the ticket Cermas Claims Midwest. Mayor Cermak Chicago on his here that quick Democratic plank and his master of fiying Chicago ringing speech had him support throughout Middle At Democratic headquarters would opening gun campaign Ohio, August before Demofrom parts the State The gathering will be under the auspices Democratic State and will come President Hoover delivered his acceptspeech. has gone Republican in the last the States the Roosevelt said determined When placed Smith came "place meeting with the party was asked will you support Roosevelt?" "I'll tell about that statement to issued Monday then he from the which deal with the Democratic platEly the radio talk would have This was mean assure Democrats talk that the declaration repeal the Eight eenth not ordinated other and that Ely would then come out dorsement the basis of such declaration Outcome is Surprise The outcome which had been hailed peace in quarthe presibeen his James trip for that presence he had said the Bay after talking Ely had said nothing When he the executive mansion Albany today, he was "Do you expect the people Massachusetts he said, without Mayor who stopped New York for few on his way from his had nothing but predictions make about Democracy's chances in his section the country "Illinois will Democratic vember by vast said Iowa will be column. We are all amazed the Roose- Continued on Page Five

3. June 8, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 8, 1934

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Article Text

PEOPLES BANK TO PAY 30 PER CENT DIVIDEND Suit Against Six Indemnity Companies Pressed by Receiver. By Times Special CHICAGO, June 8.-The Peoples National Bank and Trust, according to W. W. Pearson, receiver, has started distribution of a 30 per cent dividend to depositors. The total payment is estimated to be about $1,000,000. Suits against six indemnity companies for $185,000 allegedly misappropriated by the former vicepresident of the bank is being pressed by Mr. Pearson. The former vice-president was convicted of this charge a short time ago and was sent to prison. Notices will be sent to the depositors by the bank informing them when they can call for their funds. Mr. Pearson stated that the prospects for further distributions would depend entirely upon the real estate market.

4. June 9, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 9, 1934

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Article Text

PEOPLES BANK TO PAY 30 PER CENT DIVIDEND Suit Against Six Indemnity Companies Pressed by Receiver. By Times Special CHICAGO, June 9.-The Peaples National Bank and Trust, according to W. W. Pearson, receiver, has started distribution of a 30 per cent dividend to depositors. The total payment is estimated to be about $1,000,000. Suits against six indemnity companies for $185,000 allegedly misappropriated by the former vicepresident of the bank is being pressed by Mr. Pearson. The former vice-president was convicted of this charge a short time ago and was sent to prison. Notices will be sent to the depositors by the bank informing them when they can call for their funds. Mr. Pearson stated that the prospects for further distributions would depend entirely upon the real estate market.