4179. American Banking Association (Chicago, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
February 21, 1914
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
418dbd68

Response Measures

None

Description

Multiple articles (Feb–Mar 1914) report a stockholder's petition for a receiver and that a receiver (Central Trust Co.) was appointed; the bank is described as defunct and its president arrested. No article mentions a depositor run prior to suspension. Cause for suspension is government/court action following alleged fraud.

Events (3)

1. February 21, 1914 Other
Newspaper Excerpt
A receiver is asked for the American Banking association and charges of fraud are made in a bill filed Friday by Joseph Stout, a stockholder in the association.
Source
newspapers
2. March 5, 1914 Receivership
Newspaper Excerpt
A receiver was appointed today for the American Banking Association; Central Trust Co. receiver named; bank described as defunct and head arrested on fraud charges.
Source
newspapers
3. March 5, 1914 Suspension
Cause
Government Action
Cause Details
Court took jurisdiction after creditors filed an involuntary bankruptcy petition and stockholder alleged fraud; receiver (Central Trust Co.) appointed.
Newspaper Excerpt
The United States district court today took jurisdiction over the American Banking Association ... The court appointed the Central Trust Co. receiver.
Source
newspapers

Newspaper Articles (10)

Article from South Bend News-Times, February 21, 1914

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Article Text

RECEIVER PETITIONED FOR Bank Officials Misrepresented Condition Says Petitioner. CHICAGO, Feb. 21.-A receiver is asked for the American Banking association and charges of fraud are made in a bill filed Friday by Joseph Stout, a stockholder in the association. Stout charges that he was induced to purchase 50 shares of stock under the incorrect representations that the bank was incorporated for $500,000 and that $300,000 of the stock had been paid for in cash. John Worthington, president of the bank. is named as the chief defendant in the charges of raud.


Article from The Madisonian, February 24, 1914

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Article Text

CHICAGO BANK IN TROUBLE Receiver Asked for American Banking Association by Joseph Stout, a Stockholder. Chicago, Feb. 21.-A receiver is asked for the American Banking Association, and charges of fraud are made in, a bill filed here by Joseph Stout, a stockholder in the association. Stout charges that he was induced to purchase fifty shares of stock under the incorrect representations that the bank was incorporated for $500,000 and that $300,000 of the stock had been paid for in cash. John W. Worthington, president of the bank, is named as the chief defendant in the charges of fraud.


Article from The Greenville Journal, February 26, 1914

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Article Text

CHICAGO BANK IN TROUBLE Receiver Asked for American Banking Association by Joseph Stout, a Stockholder. | Chicago, Feb. 21.-A receiver is asked for the American Banking Association, and charges of fraud are made in a bill filed here by Joseph Stout. a stockholder in the association. Stout charges that he was induced to purchase fifty shares of stock under the incorrect representations that the bank was incorporated for $500,000 and that $300,000 of the stock had been paid for in cash John W. Worthington, president of the bank, is named as the chief defendant in the charges of fraud.


Article from Wauwatosa News, February 27, 1914

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Article Text

CHICAGO BANK IN TROUBLE Receiver Asked for American Banking Association by Joseph Stout, a Stockholder. I Chicago, Feb. 21.-A receiver is asked for the American Banking Association, and charges of fraud are made in a bill filed here by Joseph Stout, a stockholder in the association. Stout charges that he was induced to purchase fifty shares of stock under the incorrect representations that the bank was incorporated for $500,000 and that $300,000 of the stock had been paid for in cash. John W. Worthington, president of the bank, is named as the chief defendant in the charges of fraud.


Article from The Times Dispatch, March 3, 1914

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Article Text

BANKER UNDER ARREST e John W. Worthington Held on Two Warrants Charging Larceny. Chicago, III., March 2.--John W. Worthington, former head of He American Banking Association, new in a receiver's hands. was arrested 10-day on two warrants charging larceny as bailee. and his ne exeat bone was raised from $2,500 to $10,000. WorthIngton will be questioned as to his assets to-morrow, and at the same time complainants will file a number of amendments to their bill.


Article from Daily Kennebec Journal, March 6, 1914

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Article Text

COURT TAKES JURISDICTION OVER AM. BANKING ASS'N. Chicago, March 5.-The United States district court today took jurisdiction over the American Banking Association at the instance of three creditors who presented an involuntary petition in bankruptcy, alleging that certain certificates of deposit issued by the bank were worthless. The court appointed the Central Trust Co. receiver. John W. Worthington, president of the American Banking Association, against whom many charges of irregularities have been made, was unable to obtain a bondsman and remained in jail.


Article from The Times Dispatch, March 6, 1914

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Article Text

USE OF MAILS TO DEFRAUD Charge Against Worthington, Head of Defunct Association. Chicago, Ill., March 5.--John W. Worthington. head of the defunct American Banking Association. was arrested to-night for the seventh time in as many days. As the banker stepped from the detective bureau. where he obtained release on a $5,000 bond, he was served with a Federall warrant, charging him with using the mails to defraud. The warrant was identical with the one served on Harry H. Thomas, said to have been associated with him. It is alleged that in 1911 the two represented themselves as brokers and obtained 35.000 worth of stock and $2,000 In certificates of deposit from the Central Savings Bank at Waterloo, Iowa. The stock and certificates have disappeared, It is charged. Thomas was released on bonds. A receiver was appointed to-day for the banking association, and attorneys for the creditors estimated Worthing ton's assets at $600,000. They could not say what the loans were. Assistant District Attorney Stansbury said he would endeavor to have dropped the cases against Worthington in the State courts, 80 that the government's prosecution would not be hampered.


Article from The Pensacola Journal, March 6, 1914

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Article Text

Banker Jailed Seven Times In As Many Days BY ASSOCIATED PRESS. Chicago, March 5.-John W. Worthington, head of the defunct American Banking Association, was arrested to. night for the seventh time in as many days. As the banker stepped from a detective bureau where he obtained his release on a $5,000 bond, he was served with a federal warrant charging him with using the mails to defraud. A receiver was today appointed for the American Banking Association,


Article from Daily Kennebec Journal, March 6, 1914

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Article Text

Seventh Arrest of J. W. Worthington Chicago, March 5.-John W. Worthington, head of the defunct American Banking Association, who has been charged with many irregularities, was arrested tonight for the seventh time in as many days. As the banker stepped from the detective bureau, where he obtained release on a $5000 bond, he was served with a federal warrant charging him with using the mails to defraud. The warrant was identical with the one served on Harry H. Thomas, said to have been associated with him. It is alleged that the two represented themselves as brokers in 1911 and obtained $5000 worth of stock and $2000 in certificates of deposit from the Central Savings Bank at Waterloo, Iowa. The stock and certificates have disappeared, it is charged. Thomas was released on bonds. A receiver was appointed today for the banking association and attorneys for the creditors estimated Worthington's assets at $600,000. They could not say what the liabilities were.


Article from New-York Tribune, March 6, 1914

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Article Text

WORTHINGTON AGAIN HELD Broker Arrested Seventh Time in as Many Days. Chicago, March 5.-John W. Worthington, head of the broken American Banking Association, who has been charged with many irregularities, was arrested to night for the seventh time in as many days. As the banker stepped from the detective bureau, where he obtained release on a $5,000 bond, he was served with a federal warrant charging him with using the mails to defraud. The warrant was identical with the one served on Harry H. Thomas, said to have been associated with Worthington. It is alleged that the two represented themselves as brokers in 1911 and obtained $5,000 worth of stock and $2,000 in certificates of deposit from the Central Savings Bank, at Waterloo, Iowa. The stock and certificates have disappeared, it is charged. Thomas was released on bonds. A receiver was appointed to-day for the banking association and attorneys for the creditors estimated Worthington's assets at $600,000. They could not say what the liabilities were.