4133. Farmers State Bank (Cabery, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
March 1, 1930*
Location
Cabery, Illinois (40.996, -88.205)

Metadata

Model
gpt-5-mini
Short Digest
d1d46248

Response Measures

None

Description

Newspaper articles discuss the closed Farmers State Bank of Cabery and its administration by a receiver (Gus J. Johnson). No run or depositor panic is described. The bank was closed and placed in receivership (article references closure in March 1930); therefore this is classified as a suspension resulting in permanent closure/receivership. Dates are taken from article text (March 1930) and publication (1933) identifying the ongoing receivership.

Events (3)

1. March 1, 1930* Receivership
Newspaper Excerpt
appointment of Gus J. Johnson of Paxton as receiver of the closed Farmers State bank of Cabery. ... reports of the receiver are first submitted to and approved by the state auditor, then referred to the circuit judge for his 'rubber stamp' approval. - The Pantagraph, 1933-06-01 , The Pantagraph investigator found ... The affairs of this bank ... receiver Johnson has in administering the affairs ... incurred expenses totaling approximately $26,000 ... ,
Source
newspapers
2. March 1, 1930* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank was closed and placed in receivership (appointed receiver Gus J. Johnson); preferred and common claims being handled and paid from assets.
Newspaper Excerpt
closed Farmers State bank of Cabery
Source
newspapers
3. * Other
Source
newspapers

Newspaper Articles (2)

Article from The Pantagraph, June 1, 1933

Click image to open full size in new tab

Article Text

CALLS HIMSELF RUBBER STAMP Judge Lindley Defends Action in Bank Receivership Controversy. Taking the stand that the banking laws of Illinois make of the circuit court judge presiding in a bankruptcy or receivership case merely "rubber stamp. Judge Frank Lindley of Paxton has struck back at critics who in published statements have sought discredit his approval of the administration of Gus J. Johnson of Paxton as receiver of the closed Farmers State bank of Cabery. Speaking to Pantagraph staff representative Wednesday in the course of an investigation of the charges against the Cabery receivership Judge Lindley said: "Here's the meat of the whole thing: the present banking law of Illinois makes a judge only a rubber stamp. He has no course other than to approve what the receivers' attorneys present to him." Judge Lindley, Republican candidate for re-election as circuit judge, quoted the state law to show how appointment of bank receiver is mnde by the state auditor of public accounts of the state of Illinois and how the reports of the receiver are first submitted to and approved by the state auditor, then referred to the circuit judge for his "rubber stamp" approval. The system. he said, is wrong in that it tends to destroy public confidence in the courts. Says Johnson Earned Money. "If we do not save the courts we do not save anything, he added. "The fact of the matter is Gus Johnson made darned good thing of this (the Cabery bank receivership): $4,000 in three years out of one bank is not so bad. is'it? In times like these there are lot of persons would like. to make as much. That's why some of them are jealous of Gus. But he got it on the square. The state banking department approved It. He earned it according to the law. While Judge Lindley was defending his approval of the Cabery bank reports, his opponents and those of Mr. Johnson were preparing a new attack to be delivered through the (Continued on Page 14, Col. 1.)


Article from The Pantagraph, June 1, 1933

Click image to open full size in new tab

Article Text

Shall Be Rubber Stamp? a Judge a On of the campaign for the election judges this attention to been focused the public made by Judge Frank Lindley of Paxton, who with Judge Radliff of Bloomington Judge Stevens R. Baker of Pontiac, seeking election to the circuit bench. himself explains the extra attention which he is Judge Lindley ceiving the hands of Democratic opponents by alleging that in the of Democratic managers get control the courts strategy figured that they had no chance of beating wherever possible, they Judge Radliff in McLean or Judge Baker in Livingston, they are candidates in the larger counties and therefore have the edge in of the Judge Lindley therefore was by the total vote board of as the weak spot in the the eleventh state strategy district, owing to his home county being smallest and his personal fol lowing perhaps less numerous. Whether Judge Lindley is right or wrong in his diagnosis, there making vigorous attack no denying the fact that the are his conduct in the matter of bank making judicial Twice within the week ad the special target of their oppositon. the Ford county Democratic committee have vertisements sponsored by Judge Lindley with political bias appeared in that county charging the of and attorneys for his alleged acts of approving reports Farmers State Bank of Cabery. This closed banks, particularly the in March, 1930. Johnson state bank went into in Ford has as receiver since sentative and political power then, with the firm of Pacey Johnson, or Pacey and Nobel John son, son Johnson, individually acting as attorneys: William Bach of Bloomington also did some work as attorney. The Pantagraph spent much time investigating A staff member of the records at Paxton. seeking to arrive at the truth in the figures the affairs of this bank and to straighten the administration of over the name of Recontradictions between reports made apparent ceiver Johnson and those made by the Democratic committee, L. Boyle, chairman. the records voluminous The Pantagraph investigator found containing many errors, or discrepancies, and difficult to fit into of the whole affair. picture Without here going into too much detail, it appears that $65,000 preferred claims against the bank when closed have since been paid "common" the receiver: $76,000 approximately in full by elaims paid from bank assets, and another $10,948 paid on the common from The perclaims from funds secured by collections centage of payments to date on the common claims has been approximately 40 percent. of the Receiver Johnson has inIn administering the affairs $26,000 including his own curred expenses totaling approximately attorney fees, etc. although the exact figures of his reports and those of the Democratic committee do not agree. The expenses of ad 30 of the sum thus far therefore total not less than percent ministration "common" claimants of the bank. to all this and is he criticized What has Judge Lindley to do with in this campaign? that he favored his political friends of his former law firm, one of including members own and associates, Nobel son of the is statements by saying that the receiver Judge Lindley replies to these by the state auditor. according to the Cabery bank was appointed himself designate shall attorneys that the receiver may of the must be made and clerks for his work: that reports be passed back to court the state and on his approval All accounts in the receivership are for final decree and order. expense and likewise passed to the court first approved by the state auditor payment. In other words, Judge Lindley that the law makes judge of the court a mere "rubber stamp" for nets of the auditor blame him for any management of the therefore claims that to unfair and must be due to misunder fairs of the bank in receivership to misrepresent on the part of those standing of the law or the wish such charges. of $175 per month for part of Receiver Johnson received salary the period of his work. and later $150 per month to date: n. total of something over to date. This and all other items of expense were by the state auditor. approved Judge Lindley asserts that the banking law in this respect should materially altered. giving the home court more strict accountability closed and such work business of administering from the purview of the state auditor Springfield. On the other hand. It seems that Judge Lindley has laid himself himself to become closely affil to first by allowing friendly interests in the conduct of his court with political and business: and second, in assuming the attitude that certain of his ju. duties are bound as to make him "rubber stamp." the so statute states that all of bank receiverships, approved by the expenses state shall be paid out of the bank's assets, nevertheless the opinion of the best legal advice obtainable that trial court shall judge whether such fees are The statute further states that receiver "shall file with the auditor of public of each copy report which he makes to the court thereby throwing the upon court's responsibility the approval or disapproval of the original report. While the percentage of costs allowed in the Cabery bank case may may not be considered it nevertheless must weaken Judge Lindley' candidacy for him to fail to assume the responsibility of mak ing such determination on the reports submitted to him.