Article Text
Reveals Bank Shortage April the bank of Edwardsville by made today by president George ed run the institution.
4130. Bank of Edwardsville (Edwardsville, IL)
Bank Information
- Episode Type
- Run Only
- Bank Type
- state
- Start Date
- April 15, 1930
- Location
- Edwardsville, Illinois (38.811, -89.953)
Metadata
- Model
- gpt-5-mini
- Short Digest
4062c3cee3843ed2
Response Measures
None
Description
Multiple April 15–16, 1930 articles report a slight or persistent run triggered by discovery that the cashier Frank B. Sanders misappropriated $143,000. Funds were reimbursed/raised and cash was obtained from the St. Louis Fed; the bank remained open and able to meet withdrawals. No suspension or permanent closure is reported.
Events (1)
1.
April 15, 1930
Run
- Cause
- Bank Specific Adverse Info
- Cause Details
- Cashier Frank B. Sanders misappropriated approximately $143,000 to finance motion-picture theaters and other private ventures; discovery of shortage triggered withdrawals.
- Measures
- Sanders reimbursed part of the loss; directors raised a fund to make up the balance; additional cash shipment obtained from the Federal Reserve Bank at St. Louis; officers publicly reassured depositors.
- Newspaper Excerpt
- the announcement was made ... to restore public confidence during a slight run on the bank this morning; misappropriated $143,000
- Source
- newspapers
Newspaper Articles (10)
Click image to open full size in new tab
Click image to open full size in new tab
Article Text
LOSS MADE OFFICERS AND RESTITUTION President George W. Meyer Announces F. Sanders Has Turned in Cash and Promised More. DEPOSITOR'S LETTER LEADS TO DISCOVERY Executive Says He Started Investigation After State Auditor's Office Asked Him About Communica- tion. Announcement that Frank cashier the Bank Edwardsville at Edwardsville, had $143,000. all but $7000 of the bank's capitalization using the money finance chain of motion picture theaters other outside business ventures. made today George Meyer. president the bank. Sanders has reimbursed the bank for part of its has promised to convert sufficient of assets to pay back the remainder, said. Meanwhile, he explained, cash has been contributed the members of the Board of Directors to make the difference. Meyer said that money which had been deposited with the bank collateral by borrowers. representative of the State Auditor's fice, at the bank, announced that the sound and roborated statement that the directors had covered the $500,000 Arrives From St. Louis. The was said, to restore public confidence today during slight run the bank, one Edwardsvflle's banks and the second in size by slight margin. Shortly after noon an armored car arrived from St. Louis and in cash carried bank. President Meyer bustled about the banking room tomers, telling them that would be brought over necessary you want draw out, all right: but leave here, put in safe deposit box," he urged. Many business men, friendto bank, appeared to make large deposits conspicuously. Meyer announced that Sanders had been discharged. but would not be prosecuted. State's ney Bohm declared he would take action unless asked to do so by Meyer. At his home. Sanders made general denial of President Meyers' statement. When the reporter sought question him, he exclaimed: "Why. asking me things that wouldn't admit on stack of Bibles mile high." "That all bluff," said W. Hadley, vice president when formed of Sanders' denial. All ficers of the bank, well the State Auditor's present to President Meyer when he made the nouncement. Owns Three Theaters. Sanders, according principal owner of the United Operating Co., which owned the Princess Theater Alton, the Wildey The ater in Edwardsville and the Wood in Wood River. the latter new building worth more than $100,000. The Alton Theater recently sold the Paramount for When the shortage was discov. ered recently, Meyer said. Sanders handed $40,000 in securities and pledged himself to pay more. soon he received his share the from the theater sales. He promised to place mortgage on the Wood River theater to make up the ance of the shortage. Meyer said. Meyer he did not that anything was in his wrong bank until recently when asked him. why don't you answer the letters from the State Meyer replied that he had no such letters and began vestigation. From State Auditor Nicholson Continued on Page Column
Click image to open full size in new tab
Article Text
FUND RAISED TO MAKE UP SHORTAGE By The Associated Press EDWARDSVILLE, III., April 15.George W. Meyer, president of the Bank of Edwardsville, announced today that the bank's cashier, Frank B. Sanders, had misappropriated $143,000 of banks funds, using the money to finance several motion picture theaters and other private business ventures. Sanders has reimbursed the bank for a part of the loss, Meyer said, and the directors have raised a fund to make up the balance, under Sanders promise to raise money to pay them back in full. The announcement was made, according to Meyer, to restore public confidence during a slight run on the bank this morning.
Click image to open full size in new tab
Article Text
Taken By Cashier, Says Head of Bank At Edwardsville HOOVER'S WING OPENS SEASON President of Institution AnOfficial nounces Money To Run Theatres; Run Halted When He Pays Back Part and Directors Pledge Balance. ILL., April Meyer, president the Bank of Edwardsville, an nounced today that the bank's shier, Frank had appropriated $143,000 of bank using the money to finance several motion picture theaters and other private business ventures. Sanders reimbursed the bank for part of loss, Meyer the directors have raised fund to make up the balance, under Sanders' promise to raise the money pay them back full Slight Run Halted The cording to restore confidence during slight the bank this morning All of officers present and representative of the state auditor's office hand to corroborate Meyer's on Sanders has been discharged cashier but not under arrest When the was recently said, Sanders handed over in securities $40.000 cash. Meyer said the cashier principal owner the United Operating which own. the Princess Theater Alton Wildley Theater ville and Woodriver Theater Woodriver latter buildmore than The ing Alton Theater recently Paramount interests for $50.according to Meyer to place Woodriver to make balance his shortage. that recently an investigation of plaint by disappearance stock deposited collateral for loan Sanders public adof He 45 years old, and had been with the bank than The of Edwardsville, foundin has according to its December 31 Deposits on that date totaled $2,700,000 The (Continued to Page Nine)
Click image to open full size in new tab
Article Text
USES BANK FUNDS FOR OWN USE Edwardsvil April 15. (A.P.) George W. Moyer, president of the bank of Edw dsville, announced to day that the bank's cashier, Frank B. Sanders, has misappropriated $143,000 of bank funds, using the money to finance several motion picture theatres and other private business ventures. Sanders has reimbursed the bank for part of the loss, Meyers said, and the directors have raised a fund to make up the balance under Sanders' promise to raise the money to pay them back in full. The announcement was made, according to Meyer, to restore public confidence during a slight run on the bank this morning. All of the officers were present and a representative of the state auditor's office was on hand to coroborate Meyer's statement.
Click image to open full size in new tab
Article Text
PERSISTENT RUN IS WEATHERED Officers Plan to Open Again Today and to Pay in Full All Depositors Who Wish to Make Withdrawals. Charges against Frank Sanders, 45, cashier of the Bank of Edwardsville, whose misappropriation caused persistent the bank, will brought the bank that restitution funds been made, George Meyer, president of the bank, said last night. know about in Attorney Bohm about the prosecution of Sanders. He declined to what action, it say he would State Auditor Nelson, who has jurisdiction over all state banks, said prosecution is up to the direcand the State's Attorney. "We made an examination of the bank some time found shortage." he said. was reported to bank officials and the money has been returned." The Attorney General Oscar Carlstrom has not quested to intervene the bank case. In Illinois the practice the State's Attorney to initiate any proceedings growing out of falcations. The Attorney General does appear such cases cept in instances where the ment of special prosecutor is quested. Weathered Run. The bank weathered the run yesterday and announced this morning to paying positors to their money. The bank an tional shipment cash yesterday afternoon from the Federal Reserve Bank at St. Louis, which with the restoration of the misappropriated funds, puts in position to meet all demands upon it, officials said. Sanders made no statement. care to say anything," reply to requests for his answer to the charge. He started his banking career minor capacity with the old First National Bank of Edwardsville, but became an employe of the Bank Edwardsville fifteen years when the two institutions merged the He lives with his wife and son
Click image to open full size in new tab
Article Text
RIOTING SWEEPS NO PROSECUTION CALCUTTA: MANY OF BANK CASHIER HURT IN CLASHES FOR USING $143,000 CALCUTTA BENGAL INDIA April 16 (AP) Rioting on the streets of Calcutta last night spent itself finally before dawn today in futile attack on the presidency of the General Hospital to which nine Europeans injured in yesterday's clash had been taken Of the nine Europeans in the hospital two were women. One was injured seriously, while another man was in grave condition from the night's fighting. Of 50 injured in the disturbances beginning yesterday morning, 15 were police and 11 Police finally routed the mob. and arrested 20 of their number nine being found on roof tops with piles of bricks and stones beside them. The city quieter today after renewal of the clashes last night when Europeans driving home after the evening out were stoned Street cars were stoned and several wrecked. THREE LEADERS JAILED KARACHI, INDIA, April 16-(P) Police today arrested six leaders of the India national congress They will be taken before a magistrate to answer charges growing out of their participation in the civil disobedience campaign by which Mahatma Gandhi and his devotees hope to win independence from Great Britain The camp of the Satyagrahas, as the Indian Nationalists are called. and the Swarja Ashram and Hindu Jati printing offices, were searched and books, flags and sign boards seized. cashier of the Bank of Edwardsville, will not be prosecuted for misappropriating $143.000 of the bank's funds, George E. Meyer president. said last night. Meyer said Sanders had made restitution of the amount Charges against Sanders, under ordinary conditions. would have to be made by the bank's directors and State's Attorney Bohm and Bohm declared all he knew of the case had been learned from reading the newspapers. He declined to say what action. if any would be taken by him Word of Sanders' shortage caused a persistent run on the bank and additional currency was obtained from the Federal Reserve bank to pay depositors Bank officials declared the bank would continue in operation The misappropriation of bank funds was said by officials to have been due to Sanders financing of string of motion picture houses in Alton, Edwardsville and Woodriver The Alton theater, however was recently sold for $50,000 while the Woodriver house occupies new $100,000 structure. Sanders. according to Meyer, put up $40,000 cash. like amount in securities with the balance coming from a mortgage on the Woodriver theater.
Click image to open full size in new tab
Article Text
Edwardsville Bank Will Not Charge Defaulting Head Officers of Institution Satisfied With Restitution Made by Cashier, President Says. Edwardsville, Ill., April 16.-(UP) Charges will not be preferred against Frank B Sanders. 45, cashier of the Bank of Edwardsville here. who is accused by bank offificials with misappropriation of $143,000. George M. Meyer. president of the bank said last night. According to Meyer full restitution has been made. A persistent run on the bank throughout the day yesterday. resulted from news of the misappropriation. The bank opened as usual this morning and officials announced that with the restored $143.000 and a shipment of cash received from the Federal Reserve Bank at St. Louis the institution is in a position to weather a continuance of the run today. Sanders' only answer to inquiries concerning the charge have been "I don't care to say anything.' Bohm Silent. The shortage was discovered when an audit of the bank's books was completed by state examiners State's Attorney Bohm. when questioned as to what action he Turn to Page 2, Column 2
Click image to open full size in new tab
Article Text
Cashier Will Make Good His Shortage Edwardsville, III., Apr. 15-(AP)George W. Meyer, President of the Bank of Edwardsville, announced today that the bank's cashier, Frank B. Sanders, had misappropriated $143,000 of bank funds, using the money to finance several motion pic ture theaters and other private busi ness Sanders has reimbursed the bank for a part of the loss, Meyer said and the directors have raised a funo to make up the balance, under San ders' promise to raise the money to pay them back in full. The announcement was made. according to Meyer. to restore publi confidence during a slight run on the bank this morning. All of the o: ficers were present and a representa tive of the State Auditor's office was on hand to corroborate Meyer's statements.
Click image to open full size in new tab
Article Text
Cashier Takes $143,000 To Back Movie Theatres EDWARDSVILLE, III., April 16. (AP)-George W. Meyer, president of the Bank of Edwardsville, announced today that the bank's cashier, Frank B., Sanders, had misappropriated $143,000 of the bank funds to finance several motion-picture theatres and other private business ventures. Sanders had reimbursed the bank for a part of the loss, Meyer said, fund to make up the balance under Sanders' promise to raise the money to pay them back in full. The announcement was made according to Meyer, to restore public confidence during a slight run on the bank this morning Mrs. F. K. Wylie, state officer Mrs. William Wrigney, representing local young people's missionary society: Mrs. E. L. Adams. delegate from Madisonville Woman's Missionary Society of the Methodist church, and others are attending the Louisville Annual Missionary Conference in Greenville this week Rim wrenches, any size, 35c a