4115. First National Bank & Trust Company (Bloomington, IL)

View Charter #13499 on SPMC

Bank Information

Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
13499
Charter Number
13499
Start Date
October 31, 1933
Location
Bloomington, Illinois (40.484, -88.994)

Metadata

Model
gpt-5-mini
Short Digest
a198f991

Response Measures

None

Receivership Details

Date receivership started
1933-10-27
Date receivership terminated
1934-06-06
Share of assets assessed as good
100.0%

Description

The First National Bank & Trust Co. of Bloomington was placed in receivership (Oct 1933) by the Comptroller and later reorganized; waivers and stock subscriptions allowed formation of a new National Bank of Bloomington expected to open in May 1934. Articles do not describe a depositor run prior to suspension.

Events (8)
1. November 1, 1930 Chartered
Source
historical_nic
2. October 27, 1933 Receivership
Source
historical_nic
3. October 31, 1933 Suspension
Cause
Government Action
Cause Details
Placed in receivership by order of the Comptroller of the Currency; receivership plan promulgated after prior reorganization efforts were under way.
Newspaper Excerpt
The First National Bank and Trust of Bloomington was placed in the hands of receiver, Alfred D. Hills of Pontiac, Monday on an order of O'Connor, of the currency.
Source
newspapers
4. January 26, 1934 Other
Newspaper Excerpt
First National Bank and Trust Co., also closed. sought by action of Carter Pietsch, Liberty bank receiver, under advisement ... securities alleged to be withheld assets ... held in deposit box of the First National Bank and Trust Co., also closed.
Source
newspapers
5. February 27, 1934 Other
Newspaper Excerpt
Court Orders City to Turn Over Securities to Liberty Receiver. ... held under agreement between bank and city in First National Bank Trust company, also closed.
Source
newspapers
6. May 1, 1934* Reopening
Newspaper Excerpt
Waivers on more than 75 percent of the old First National Bank Trust company's deposits been obtained, and the new National Bank of Bloomington is expected to begin functioning late in May, Grover C. Helm ... announced Wednesday.
Source
newspapers
7. June 6, 1934 Restored To Solvency
Source
historical_nic
8. August 14, 1934 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (4)
1. October 31, 1933 The Pantagraph Bloomington, IL
Article from The Pantagraph, October 31, 1933

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Article Text

RECEIVER IS NAMED FOR FIRST NATIONAL CONTINUE PLAN FOR REOPENING A. Hills of Pontiac Takes Charge; Collections Progress. The First National Bank and Trust of Bloomington was placed in the hands of ceiver, Alfred D. Hills of Pontiac, Monday on an order of O'Connor, of the currency. The order came as the final in that had been carried on since last Friday, when the receivership plan was first promulgated. The order first establishing the receivership at that time was held abeyance on the recommendation of Senator William H. Dieterich of Beardstown, in response the request of committee of Bloomington citizens. Officials Hopeful. Just what effect the receivership will have on the bank's plan for reopening, which has progressed during the last several months and had reached the point where was expected an opening might be effected at an early date, not known, but officials of the bank hopeful they will be permitted proceed. Last week officers of the bank had presented their plans the reorganization division of the national banking department Chirago, and were advised to continue their work of collecting debts owed the bank. and to make another the Chicago office within port another few weeks. Collections Delayed. Considerable advance has been made, especially within the last two weeks, toward bringing the bank's liquid position up expected levels. In the liability suit against stockholders of the old First National bank. collection from those stockholders was delayed until Oct. 17. by order of Judge D. Briggle of the United Charles States district court Springfield, entered last July 14. whose required lapse of 90 days for official publication judgment noLice. Consequently this order have just begun der With their come refinancing of farm and with the held by the under federal land bank aid plan, the officers of the bank have been hopeful enough would made within the next have been month or two to develop final plans for reopening. was with surprise, then. that receivership plan was received In effort to avoid the Friday. an receivership, committee of citiincluding Homer W. Hall. stockholder and former representative congress from this Lester H. Martin. atand to Beardstown Saturwent Senator day him full details presented to made by the bank the progress strengthening its liquid date of the plans for position and obtained his co-operto keep the bank in seeking conservator until the under could be reopened. Monstitution committee went to Springthe Senator Dietagain solicit his further aid and to

2. January 26, 1934 The Pantagraph Bloomington, IL
Article from The Pantagraph, January 26, 1934

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Article Text

JUDGE STUDIES PLEA FOR FUND Liberty Receiver Would Recover Securities Held for Bond. Recovery of $134,000 worth of securities alleged to be withheld assets of the closed Liberty State bank and now held in deposit box of the First National Bank and Trust Co., also closed. sought by action of Carter Pietsch, Liberty bank receiver, under advisement by Circuit Judge Chalmer C. Taylor. Defendants named by Mr. Pietsch are: Will F. Costigan, former attorney and director of the Liberty bank: Richard M. O'Connell, former city attorney; his successor Thomas S. Weldon: the municipality; Mayor Louis F. Wellmerling and John A. Cleary, city comptrolMr. Pietsch, in arguments conducted last month before Judge Taylor, asserted that although his duties authorize him to take possession of all books, records and assets of the Liberty bank and conserve them for the benefit of the bank's creditors, the defendants unlawfully interfered with this process by refusing to surrender the assets in question. Agreement Cited. The receiver's petition to the court recites that the Liberty bank's officials and the municipality entered secret agreement whereby. to protect the city' funds deposited in this bank. the latter would place in First National Bank & Trust Co. safety deposit box listed securities and notes secured by first mortgages on Bloomington real estate in the market value of $250,000. This agreement. given verbatim in the petition, explains that the arrangement was occasioned by the inability of the bank at that date to complete arangements for depository bonds in the city's behalf. Depository bonds which protected city funds in the bank for the two years prior to the agreement date expired May 21 and 22, 1931. and the Liberty had been designated as the city depository for another. two year period, the agreement stated. The agreement, the eti tion shows, bore the signatures of John W. Rodgers and Russell E. Shearer Liberty president and cashier, and of the then mayor, Ben S. Rhodes and City Clerk Herman J. Bock. Authority Delegated. The deposit box, the agreement stipulated. could not be opened save in the presence of Mr. Costigan or Mr. O'Connell. The latter's authority in this matter, the petition continues, was delegated to Mr. Weldon by council action last Aug. 4. Mr. Pietsch represented that when he became the bank's receiver last October, examination of the books showed the city had $130, 941.69 on deposit, carried as follows: Firemen's pension fund, $9.742.02; fund No. 1, $1,517.13; fund No. 2, $29,293.12: fund No. 3. $736.43 general fund, $24,007.85: library fund, $3,202.76; payroll, $995.05; police pension fund, $2,036.89; sinking fund. bonds, 1941, $56,500, and water fund, $2,910.44. Admittedly Assets. The petition recites that he also discovered worth of securities had been withdrawn from the files and vaults of the Liberty bank; that he was informed they were being held under the terms of the agreement in the First Na. tional bank's safety deposit box. No. 8. Mr. Pietsch stated "that said property so contained in said box is admittedly assets of this receiver having been withdrawn and taken from this bank and segregated in pursuance to said agreement which said agreement and the subsequent segregation and removal of the assets as aforesaid is invalid and void. "The depositors of the Liberty State bank," Mr. Pietsch told Pantagraph reporter, "are entitled to as much protection as the municipality. The appellate court's opinion in the case of the People ex rel. Nelson versus Seward State bank. handed down in October, 1932, held such secret agreement invalid and void. No Higher Rulings. This opinion said, in part: "The statute of this state gives to banking institutions no authority to enter into secret agreements for the both. benefit or preference of one depositor over another and any attempt to do so must be held void Such practice, If countenanced. might work great injustice and inflict financial loss upon the unsecured depositors and would enable large depositors to absorb all, or the greater portion, of the assets of bank. The state supreme court refused to review the case.' Mr. Weldon informed The Pantagraph that his contention is there have been no higher court decisions applicable to the local situation. "Although the state law has since been changed," he said, "at the time of the agreement, the law was that city was entitled to depository bond from the bank designated as the municipal depository as in the case of the Liberty bank. "At the time this agreement was signed, the depository bonds of the preceding two year period had expired. Thousands of banks were failing and surety companies had COLFAX Mr. and Mrs. J. B. Miller and a friend, Mrs. Gertrude Gowan of LaPlace visited Monday with Mr. and Mrs. H. W. Eagan and their family. Mrs. Miller is a sister to Mr. Eagan. Mrs. Eagan returned home Sunday from the Brokaw hospital in Normal, where she was patient for several days. Her condition is about the same. There were about 50 persons of the Mt. Glieod, community surprised Mrs. Mariam Welsh and her sons at their new home near Gridley with a potluck supper at 6:30 Tuesday. Joan, eight month old daughter of Mr. and Mrs. Claude Lawrence, recently underwent mastoid operation at the Brokaw hospital in Normal and was released Wednesday of last Mr. and Mrs. A. G. Millikan accompanied Howard Roth of Fairbury to Athens and visited Satur day and Sunday with Mr. and Mrs. Lloyd Roth and their son, Maurice Dean. Howard and Lloyd Roth are refused to write any more depository bonds to protect municipal funds. Holds Not Secret. "Although the Liberty bank had not succeeded in getting these bonds renewed at that time, it was hopeful of doing so. Since the law at the time entitled the city to this protection and since the bank was unable to get It, in lieu, the city took depositors securities and this can hardly be construed as having been secret agreement. "It should be borne in mind that these securities were not like collateral under that agreement. The agreement specifies they were held in trust by both the city and the bank and that the deposit box could be opened only in the presence of the designated representatives of "The state law has been changed so that municipalities may no longer require depositors' bonds and it also relieves the city treasurer from liability in case of loss, even though he may have recommended a bank as depository." brothers. Mrs. Roth is the daughter of Mr. and Mrs. Millikan. The winners of the Night Bridge club during the last six months entertained the losers at the home of Mrs. Fred Dale Monday night There was potluck supper and three tables of bridge. William Thom pson has been quite ill at his home for several days Drs. Lee and Cecil Thompson of Streator spent Sunday with Mr. and Mrs. Thompson. Miss Carmelita Basso, teacher of the Leonard school, spent the weekend at her home at Athens. Mrs. M. A. Hornbeck of Chicago came Sunday to spend an indefinite time with W. Thomas and his family Mrs. Thomas is daughter of Mrs. Hornbeck Mr. and Mrs. L. C. Hornbeck of Bloomington visited here Sunday Fred Scholl of Joliet returned Tuesday after visiting relatives here last week. He spent the week end in Rockford visiting at the home of his brother, William Neta May Ridgway, Corr.

3. February 27, 1934 The Pantagraph Bloomington, IL
Article from The Pantagraph, February 27, 1934

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Article Text

FUND RETURN PLEA ALLOWED Court Orders City to Turn Over Securities to Liberty Receiver. Circuit Judge Chalmer C. Taylor Tuesday granted the petition of Carter Pietsch, Liberty State bank for the recovery of $134,000 receiver, worth of securities, held under between bank city agreement officials to insure municipal dedeposit box the posits, First National Bank Trust company, also closed. Defendants named in the petition Will Costigan, former attordirector the Liberty Richard M O'Connell, former city attorney his successor, Thomas Weldon: municipaliMayor Louis Wellmerling. and John Cleary, city comptrolMr. Pietsch. in his petition argued before the several ago, contended that although his duties authorized him to take charge of all books, records and assets of the bank, and conserve them for the benefit of creditors, the interfered with this by refusing to surrender the assets in question. $130,000 Deposited. The petition recited that the bank officials municipality entered whereby, to protect the city's funds deposited the bank. the latter would place in First National Bank Trust company safety deposit box listed securities notes secured by first mortgages on real valued $250,000. Mr. Pietsch represented that when he became receiver Octothe books showed that the city deposited from varifunds Mr. Weldon. arguing the municipality's side the circuit court December, maintained the time the signed. the depository bonds of the preceding two year period had pired. said many were failing and that surety companies refused depository bonds to protect municipal funds Mr. Weldon pointed that the law that time entitled the city this protection the bank unable to get the city took The he specified the securities held trust by both the city the bank and opening the deposit box permissible only in the designated representatives of both. his Judge Taylor said: appears that the bank (Liberty State) had been the depository certain accounts prior to having by surety bonds. records do show that the bank had designated the depository by any municipal ordinance as provided by statute Agreement Made. "On the last mentioned date written made tween the city bank. their proper officials, which recited complete rangements surety rangement the agreed certain under the control the city attorney the for the these securities deposited purpose the loss the posits. apparent from the the agreement that only However, arrangement remained force until the bank closed general moratorium March The bank never after date, eventually the petitioner appointed for purpose of liquidating the thereof. "The question here (Continued 1.)

4. April 25, 1934 The Pantagraph Bloomington, IL
Article from The Pantagraph, April 25, 1934

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Article Text

SUFFICIENT WAIVERS FOR BANK OBTAINED OPENING NEXT MONTH LIKELY Sale of Stock and Other Places in Program Also Completed. Waivers on more than 75 percent of the old First National Bank Trust company's deposits been obtained, and the new National Bank of Bloomington is expected to begin functioning late in May, Grover C. Helm. chairman of the decommittee, announced Wednesday. Fifty percent waivers have been signed $1,265,000 worth of the old bank's accounts by the depositors. As such waivers were required on only 75 percent of the old bank's total of $1,630,000 deposits or the accounts which have been voluntarily waived by the depositors are $43,500 above the minimum set. telegram sent by Alfred D. Hills. First National bank receiver, to the national banking department, Washington, D. C., pointed out that federal requirements for the formation of the new bank have been met as follows: 1. More than 75 percent of the old bank's deposits have come under the waiver plan. Stockholders of the old bank have subscribed to $50,000 in stock in the new bank. Stock Oversubscribed. 3.1 The balance of the common stock has been oversubscribed. Depositors asked to purchase $62,500 worth of stock in connection with the waiving plan. This has been 10 percent, Mr. Helm Finance has to buy $75,000 in preferred stock. Two fifty thousand dollars has been on the liability of the old bank's stockholders. Application for the new bank's national charter has mailed. Assets liquidation has been sufficiently accomplished to make unnecessary the securing an RFC loan, as contemplated earlier in the organization program. Seek Waivers on All. "The depositors' committee.' said Mr. Helm. "is appreciative of the popular on the part of the depositors to the waiver program. In our with the depositors, they have shown deep of our problems. They have readily seen the advantages of the organization program over the alternative regular liquidation of the old bank "For the purpose of adding further prestige to the program and the National Bank of Bloomington it will effect, we are now anxious to get the other 25 percent of the deposits signed up with the accounts already waived. It's true depositors in whose names these 25 percent of accounts are credited are not needed to assure completion of the plan. "Just the same, we feel will be good advantage to Bloomington if waivers on 100 percent of the deposits can be obtained. It will also be favorable to the position of the new bank.' Trustees Handle Assets. The prescription outlined for formation of the new bank stipulates that when 50 percent waivers have