4050. Washington Park National Bank (Chicago, IL)

Bank Information

Episode Type
Run Only
Bank Type
national
Bank ID
3916
Charter Number
3916
Start Date
October 20, 1922
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
0d0e9b90ffe2f7ea

Response Measures

None

Other: Management change: the bank's president (Augustus E. Olson) was forced to resign as a direct response to withdrawals and depositor protests over his Ku Klux Klan affiliation.

Receivership Details

Depositor recovery rate
70.0%
Date receivership started
1931-06-09
OCC cause of failure
Economic conditions
Share of assets assessed as good
33.5%
Share of assets assessed as doubtful
47.8%
Share of assets assessed as worthless
18.7%

Description

Multiple 1922 newspaper accounts report a depositor withdrawal episode after disclosure that President Augustus E. Olson was a Ku Klux Klan member. Officials demanded his resignation and he ultimately resigned (reported mid-November 1922). The articles describe significant withdrawals (a run) tied to adverse information about the president; there is no clear contemporaneous evidence in these items that the bank suspended payments or closed as a direct consequence of the 1922 run. A later 1930 article mentions the bank in a garbled merger/closing context but provides no clear link to the 1922 episode, so the episode is classified as run_only for 1922.

Events (3)

1. August 1, 1888 Chartered
Source
historical_nic
2. October 20, 1922 Run
Cause
Bank Specific Adverse Info
Cause Details
Disclosure and confirmation that bank president Augustus E. Olson was a member of the Ku Klux Klan led Irish, Jewish, and Black depositors to withdraw funds.
Measures
Directors demanded the resignation of President Augustus E. Olson; he resigned in mid-November 1922.
Newspaper Excerpt
Persistent rumors that A. E. Olson, President of the Washington Park National Bank is a member of the Ku-Klux-Klan, caused a run on that institution on Friday and Saturday of last week.
Source
newspapers
3. June 9, 1931 Receivership
Source
historical_nic

Newspaper Articles (4)

Article from The Chicago Whip, October 28, 1922

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Article Text

IRISH AND JEWS CAUSE RUN ON KLAN BANK Persistent rumors that A. E. 01son. President of the Washington Park National Bank is a member of the Ku-Klux-Klan, caused a run on that institution on Friday and Saturday of last week. The bank is located at 730 East 63rd Street and is patronized mainly by Irish, Jews and colored people. A leading real estate dealer of the city recently came to blows with 01son in consequence of his affiliation with the clan. Many of the colored depositor are much concerned over this affair.


Article from Phoenix Tribune, November 18, 1922

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Article Text

CHICAGOANS FORCE RESIGNATION OF KU KLUX BANKER (Special to The Tribune) CHICAGO, III., Nov. 17-The Ku Klux Klan is on the run for good and fair. Augustus E. Olsom, President of the Washington Park National Bank of this city, was forced to resign as the executive head of that institution because it was discovered that he was a member in good standing in the Klan. Tolerance, an antiKlan periodical, was the immediate cause of Mr. Olson's resignation. No one appears to be in position to divulge in just what manner the antisheet came into possession of the facts of his connection with the 100 per cent American organization. The exPresident, however, came clean, as the saying goes, and acknowledged his relationship but contended that he had been "lured" into doing so by misstatements of the character and true purposes of the organization. When the first reports of Olson's Klan connections came to ight, slight attention was given it by the bank officials. Later developments, though compelled their attention. What amounted to a run was being made on the bank. Up to this time long lines of depositors was the order of the average business day. Matters began to take on a new appearance. Withdrawals' began to take more than an appreciable place of deposits. Inquiries as to the reasons revealed that they were the protests of clients against the Klan activities of the President of the bank. Then it was that the officials "woke up" and demanded President Olson's resignation. His 'lure" defense failed to move the directors and there was nothing left for him to do but comply with what actually amounted to a demand for a severance of his official relations with the institution of which he had been the honored head for longer than a year.


Article from Capital Journal, November 21, 1922

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Article Text

KLANSMEN OF CHICAGO (Continued from Page One.) ficial mouthpiece of the American Unity-league, founded in Chicago last summer to combat the klan and its theories. As a result of these activities of the league it became known that Augustus E. Olson, one of the best known of the younger generation of south side business men, virtually had been forced out of the presidency of the Washington Park National bank. Bank President Assailed. At that time denial was made that there had been a run on the bank as a result of the announcement that Mr. Olson was an alleged member of the Ku Klux Klan. Investigation disclosed that several weeks ago Mr. Olson had been listed as a member of the klan by the official organ of the anti-klan organization. Thereafter he was bitterly assailed at meetings of anti-klan organizations and reports were circulated that those not in sympathy with klan activities had begun to withdraw their deposits in the Washington Park bank and redeposit them in other oanks. These withdrawals were reported to have run into the thousands of dollars, most of them being made by persons of Irish descent and by Jews. At a meeting of the directors i held a week ago last Monday it was decided that it was for the n best interests of all concerned f that Mr. Olson should step out, S and he did, whereupon the antiW klan organization marked a big 0 cross on its score card. Nevertheb less it is only fair to Mr. Olson to h state that he declared he resigned to preserve harmony in the community, adding: "I signed a petition for memG bership in the klan several months a W ago, but did not know that it was anything else than an ordinary in fraternal order." in A short time before this inciP dent Judge Joseph B. David, sitas lo ting in the superior court, barred klansmen from serving on juries I n his court. On September 18, resuming the hearing of common aw cases on his calendar, Judge te ex David questioned prospective jurors on their sympathy with the ly CO ecret organization, asserting that Ba members of the klan were preH udiced by their oath, and thereore ineligible as jurors. ce "I will not tolerate any man ge cr erving as a juror in any case bech or me who is affiliated with any an uch organization," said Judge tin David. "Members of the Ku Klux die Klan have confirmed opinions, La nd they cannot serve in this ourt room." th


Article from The Charlotte Observer, January 8, 1930

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Article Text

GIGANTIC CHICAGO First National Takes in Foreman Nationand stitutions CHICAGO. June the most Important mergers in Ohicago history brought about the shifting today of more than 250,000.000 bank resources and creation of the second and third largest financial Institutions in the Announcement of the consolidation made after large group of leading bankers had been in continuous conference for almost forty hours. Thru the mergers. the First Na. bank and its affiliate the Union Trust Savings bank. absorbed the National bank and its affiliate. the Trust Savings bank: and the Central Trust Co Illinois National Bank of the Republic were consolidated become the Central Republic Bank Trust company June Chicago neighborhood National and four State, failed open for business today Three of the banks were affiliated with the Foreman group, Involved in one of the two loop bank mergers made the These three the Washington Purk National bank, South Side Trust and bank and Sheridan Trust and Savings bank The other institutios which closed the Cheltenham Trust and Savings bank, Industrial State bank National Trust and Savings Under the new the First Union Trust company group becomes ranking second Size only to the Continental Illinois Bank Trust com which became Chicago's pany Concluded on Page