4064. Arlington Heights State Bank (Arlington Heights, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
August 15, 1931
Location
Arlington Heights, Illinois (42.097, -87.982)

Metadata

Model
gpt-5-mini
Short Digest
adec359e

Response Measures

None

Description

Newspaper items (Aug 1931) report the Arlington Heights State Bank closed/suspended in mid‑August 1931 and subsequently went into liquidation/receivership. Articles do not describe a depositor run; the liquidation statement cites slow real‑estate market and collections problems (bad assets) — interpreted as bank‑specific asset trouble rather than a rumor or broader panic.

Events (2)
1. August 15, 1931 Receivership
Newspaper Excerpt
LIQUIDATION ... closing Aug. 15, 1931 ... furnished by Plew ... Receivers salary ... Cash on hand $1,413.45 $136,133.89 Income ... Real estate loans ... Additional assets covered ... (liquidation/receiver statement).
Source
newspapers
2. August 15, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed and was placed in receivership because of poor asset quality and slow real‑estate market delaying conversion of assets to cash; liabilities exceeded liquid resources during examination/closing process.
Newspaper Excerpt
closing Aug. 15, 1931
Source
newspapers

Newspaper Articles (4)
1. August 17, 1931 Waukegan News-Sun Waukegan, IL
Article from Waukegan News-Sun, August 17, 1931

Click image to open full size in new tab

Article Text

CHICAGO STOCKS CLOSING PRICES identified as those of Indians, it While the Dickson culture shown exhibit certainly dates back before the white man's rival, probably not more than 500 to 1,000 years old. This indicated by the excellent conditions the skeletons artifacts. There are numerous historical records the building mounds various Indian tribes. Most of the Illinois constructed prehistoric times, them are than years old, the muMounds the Dickson culture usually burials laid various levels. cating that they built ually. In sharp with the culture represented by the wellknown hopewell mounds Ohio, the Dickson culture almost copper, no platform pipes, perforated and cut BANK CLOSES DOORS The Arlington Heights Bank failed to doors the auditor Examination accounts was started. GREEN FRUITS CHICAGO. fruits; apples per bushel; peaches $1.00-1.25 per bushel. FLOUR unchanged. In carload lots, family patents quoted barrel in pound cotton sacks Shipments SILVER NEW YORK, Aug. 17. Bar silver Historians say that Richard Coeurconceived tarring and feathering Wilderness was originally written Stocks Close CHICAGO, Aug Material Serv 18% Close McGraw Electric 10% Stocks 33% McQuay Norris Abbot Merch Mfrs Acme West 17% Assoc Tel Util Midland Unit, Mid 73 Bendix Aviation 21% 19% Mid 92% Borg Warner Mo Kans Pipe 4½ Borg Modine Bruce 4% Morgan Litho Butler Bros Nat Battery 32 Ser 93 Nat Leather Pub 16% Nat Secur Inv Nat Secur pf Cent Pub Ser Nat Un Radio Cities Service Nor Pow Comwith No So Am Construct Pf Norwest Bancorp Consumers 1% Norwest Eng Cont Chicago West 86 Cont Chic 34% Cord Corp Pines Winter Corp Sec 14% Public Serv Crane Co 25 Q Crane Qrs Devry 1% Dexter Co 7½ Quaker Oats 139% 57 Rath Pack Emp Seaboard Util Fitzsimmons Con Union 6% Foote Mach West G Steinite Radio Gen Candy Corp 2½ 21 Super Maid Goldblatt Swift 25% Gt Lakes Aircraft Swift Intl 34 Gt Lakes Dredge Grigsby Grunow 3% H Tel Bond Sh 53% Hall 14% Bond Sh Pf Hart Carter. pf 6% Houdaille Her Unit Corp of Am Houdaille Her Gypsum 38 Gypsum Pf 133 Ill Brick Radio Tel Insull Util Utah Radio Invest Am Vot Iron Fireman 13 Util Ind Pf Kellogg Switch 3% Viking Pump Vortex Keystone Steel Vortex Cup A 26% Libby McNeill 10% Walgreen Co Manhat Dearborn 9½ Stock sales today 82,000 shares. Marshall Field 24 Bond sales today $24,000.

2. August 20, 1931 Chicago Tribune Chicago, IL
Article from Chicago Tribune, August 20, 1931

Click image to open full size in new tab

Article Text

OPEN BAIN BANK BOOKS TODAY IN HUNT FOR FRAUD Swanson Accountants to Search Records. (Picture on back page.) State's Attorney search for of the state banking in the management of the de funct Bain banks will begin today. Henry E. Ayers, banking specialist of the state's staff, will em bark this morning on study of the records of the original Bain bank. the West Englewood Trust and Savings, at 1624 West 63d street, where John Bain made his start as financier 25 years ago and where the Bain bank receiver. Irwin T. Gilruth, now has headquarters. All Records to Be Searched. Finishing there, the and his will from bank to bank of the Bain group on the south and the twelve institutions the chain have been examined. Estimates were that the investigation would require many weeks. mode of the work the and receiver in order to expedite the investigation was agreed upon at a conference yes terday between Mr. Ayers and Mr. Gilruth. They talked for and half behind closed doors in Mr. Swanson's downtown office. Chatting afterwards with reporters, Mr. Ayers expressed himself as being gratified with the Mr. Gilruth had extended him. His remarks were taken to indicate a healing of the breach between and as Tuesday when Mr. Swanson tartly criticized State Auditor Oscar Nelson and the various bank receivers for "lack of Produces Some of Records. Mr. Gllruth some of the Bain bank records here with him,' Mr. Ayers. We discussed the said condition of the Bain banks generally Thus there appears to be no far dence of criminal violations of the bank act in those banks. Receiver Gilruth broke in at that point. of that my published report on the Bain banks made charges of criminal acts against any one,' he cautioned the reporters. During the day new light was cast the origin of the report, wherein Mr. Gilruth the $2,000,000 indebtedness of the Bain to the banks, thus precipitating the state's investigation. The receiver' purpose in issuing it had puzzled many Purpose of Report Revealed. From reliable was learned that preparation and of the report was by Auditor Nelson personally. His purpose, it is understood, was to acquaint Mr. Bain's friends with the seriousness of his plight on the theory that they would be produce cash to meet his debts to the banks, thus providing for the deposito Mr. Bain has been for 15 years of the south park board and wheel horse in the Deneen Republican organization. From an individual high in the councils of the Deneen It was learned that some of the banker's wealthy friends have at least taken cognizance of the state auditor's broad hint. There has been some discussion of raising fund to meet Mr. Bain's debts," this informant said. In other times it could have been done, but cash is scarce right now. among the so called There is talk of plan of Mr. to take over and his real holdings, but this too may come to naught.' Several hundred depositors of the Brainerd State bank, a Bain Institution. met last night in hall at 8656 South avenue to elect depositors' committee. Considerable stormy talk developed the merits of Mr. Bain's claim that with careful administration by the receiver," the banks would pay off in full. Criticism was hurled Mr. Bain. Receiver Gilruth and Auditor Nelson, indiscriminately. The depositors elected committee comprising William Schmidt, vice president of the North Beverly Improvement association; G. F. Blaul, chairman of the directors of the improvement James Cunningham president of the association: S. Freel, president of the Brainerd association: Henry Altman, William and Joseph Balluff, Mr. Schmidt presided. Probe Waukegan Bank. Circuit Judge Ralph Dady of Lake county yesterday granted petition of State's Attorney A. Smith for grand jury investigation of the affairs of the Waukegan State bank. closed on June 18 with listed deposits of 000 and only $38,000 cash on hand. Auditor Nelson announced the closing of the Arlington Heights State bank of Arlington Heights. an institution with deposits of

3. August 18, 1933 The Daily Herald Chicago, IL
Article from The Daily Herald, August 18, 1933

Click image to open full size in new tab

Article Text

LIQUIDATION Greatly of Arlington Hts. ness State Bank The following statement of disincome the State Bank, from lington closing Aug. 15, 1931, the close of June furnished by Plew. Of interest the item of of bills payable and discounts paid, much tivity the part of the bank's the bank's debts. Only about bills payable remain paid, as comparabout the bank closed. present state of the real tate market causing delay the bank's assets into cash. Expenses of foreclosures real estate have been partly avoidmaking cash defaulting mortgagors. The slow and poor market property taken over, does enable cash come in fast might be wished. $136,133.89 Adjustment 100.00 Miscl. auditor from appointment of 176.55 State Illinois, for closing bank 645.00 Salaries date, Receiver's 553.86 Receivers salary Receivers expense Fare) 38.28 Clerk salary 3,190.00 Stenographer salary 1,786.00 Janitor 938.00 Emp's. Publ. Liab. 219.22 Taxes Spec. Assts. (Bank 1,089.95 Messenger, Workmen's Ins. 141.94 Surety Bonds (Rec. Empl.) 700.00 light and water 223.91 574.24 Telephone telegraph. 182.44 Postage Box rents 71.00 Building 25.78 Stationery 110.75 supplies expense 702.14 Income expense 50.00 Auditors special report 260.00 bills payable. rediscounts 6,340.96 Bils payable redis counts paid Miscl, 23.17 Advance, Stockholders 100.00 Special collections paid 2,585.64 Expense Bldgs. ownFirst Mtgs. default where income less than expense: Insurance 202.13 Taxes 182.56 Foreclosure Fees 392.25 Cash on hand 1,413.45 $136,133.89 Income Interest received rents Commissions: Insurance and Mortgage renew312.72 Insurance, miscl. 458.91 Interest coupons 891.91 Notes Real estate loans 14,800.00 Bonds, Items, cash, Special collections 3,693.47 Additional assets covered 2,996.94

4. May 18, 1934 The Daily Herald Chicago, IL
Article from The Daily Herald, May 18, 1934

Click image to open full size in new tab

Article Text

TO KEEP SCHOOLS OPEN AND Arlington Heights High School Cuts 1932 Warrants to Palatine High School Funds Tied Up; Dark Financial Future for Palatine Village IMPROVED ACCOUNTING METHODS PROTECT INTERESTS OF CREDITORS COLLECT 1933 TAXES IN conference Wednesday attended tax collectors suburban towns, nouncement made that the 1933 tax bills will be ready December with the penalty date on the first installment JanuThe when the secinstallment 1932 paid can be foretold will be necessary refigure them all account 15 per reduction that was ordered by the courts. The collection of 1933 taxes be great taxbodies and tend to stabilize the value of the which are now circulation. Arlington Heights The time warrants the Heights high school are listed among the highest value of body. Warrants of the lage Arlington Heights close The policy limiting time rants about fifty per cent of the tax levy practically the holder early redemption. Outstanding. 1932 warrants the high and village each about With the of tax money from the utility companies. they can probably be paid within the next few months. In commenting upon the warrant Arlington Heights Wednesday. official stated, "the teachers our schools have not suffered greatly by lack school funds. Our business owners property shown fine aiding them. While are still the red, there is reason believe that careful and operation part the public, taxing bodies on the road to financial "The Arlington Heights park board defaulted bonds day. There few months lay in paying the bonds due they now. paid are funds funds both schools are segregated there borrowing "cheating" of the bond holders behalf creditors The bond fund the 1932 tax money beused 1932 interest pons and bonds but the 1933 must wait until collection those taxes. The holders of the bonds sent letters suit are now satisfied that the of business ods the financial affairs the Heights schools, are being fairly treated. Holders securities some of previous years are not such position, efforts are being made delinquent holders some lief. Among these the closed lington Heights State Bank. which many thousands of rants. The money that should have been used such up warrants used running expenses schools. Such things can not occur again.