4201. Bank of America (Chicago, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
February 16, 1906
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
25f68d9a

Response Measures

None

Description

Bank of America (Chicago) was placed in the hands of a court-appointed receiver on Feb 16, 1906 after disclosures of injudicious loans, alleged fraud and misapplication of funds. Depositors gathered and made withdrawals attempts, but the controlling legal event is the receivership/suspension and the bank remained closed with a receiver and later prosecutions and asset workups reported. I classify as suspension_closure (suspension by receiver leading to closure).

Events (3)
1. February 16, 1906 Run
Cause
Bank Specific Adverse Info
Cause Details
Depositors alarmed by revelations of injudicious loans, alleged withdrawal of capital and misapplication of funds by officials (fraud charges related to President Abner Smith and others).
Measures
Assistant cashier addressed crowd reassuringly; receiver issued notice arranging to pay savings accounts and percentage to commercial depositors; bank placed under receiver to prevent further withdrawals.
Newspaper Excerpt
A crowd of depositors was gathered around the door of the Bank of America as early as 7 o'clock today in the hope of securing their money.
Source
newspapers
2. February 16, 1906 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Court-appointed receivership based on complaint alleging fraud, misapplication of funds, injudicious/ worthless loans, withdrawal of capital stock by officers and other irregularities; receiver cited insolvency and took charge of bank operations and assets.
Newspaper Excerpt
The Bank of America ... was placed in the hands of a receiver at 10 o'clock last night by Judge Chytraus of the superior court on complaint of John E. Kavanaugh, one of the stockholders.
Source
newspapers
3. February 17, 1906 Other
Newspaper Excerpt
Receiver Healy issued a notice saying that savings accounts will be paid on Monday, and that commercial depositors will receive 40 per cent of their money within a few days, and the balance in a short time thereafter. The receiver declared ... that while the depositors will be paid in full, the stockholders will lose every cent they have put into the bank.
Source
newspapers

Newspaper Articles (22)
1. February 16, 1906 Evening Star Washington, DC
Article from Evening Star, February 16, 1906

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ASKING FOR THEIR MONEY. Cashier Claims All Depositors Will Be Paid in Full. By Associated Press. CHICAGO, February 16.-A crowd of depositors was gathered around the door of the Bank of America as early as 7 o'clock today in the hope of securing their money. Among the number were many drug clerks, the bank having worked extensively through the drug stores in all parts of the city. In many drug stores notices were posted informing the public that deposits would be received at the drug store for the bank. and offers of interest in the institution were held out to the clerks as inducement to secure large deposits. The first official of the bank to put in an appearance was R. W. Howe, the assistant cash1er. He opened the doors, and a crowd of depositors swarmed after him. Mr. Howe made a speech to the depositors, saying in substance: "Within a week you will receive 35 to 40 per cent of your money and the balance within a few days after that. All depositors will be paid in full. We have $100,000 in cash on hand, and some securities that will be disposed of within a week. There is not the slightest fear that any of the depositors will lose any of their money." When asked as to the cause of the trouble, Mr. Howe replied: Injudicious Loans. "The cause of the failure is injudicious loans. All money received after 3 o'clock yesterday has been put aside, and customers can have it at any time they call for it." Receiver Healy, who appeared at the bank a short time after Mr. Howe addressed the depositors, confirmed the statements made by him. "I have no doubt," said he, "that all the depositors will be paid in full. We are making arrangements to care for the savings accounts at once, but the commercial depositors will be compelled to wait for a few days until we know just where matters stand." Deplored His Connection With Affair. President Abner Smith today deplored the fact that he should at his age have been brought into an affair of this kind. He said: "I got into this thing through my connection with some real estate loans Everything would have been all right if the stockholders had not squabbled as to who had and who had not paid in full for/stock." Later in the day Receiver Healy issued a notice saying that savings accounts will be paid on Monday, and that commercial depositors will receive 40 per cent of their money within a few days, and the balance in a short time thereafter. The receiver declared, after looking over the books today, that while the depositors will be paid in full, the stockholders will lose every cent they have put into the bank. Criminal Prosecutions May Result. Special Dispatch to The Star. CHICAGO, February 16.-Criminal prosecutions may follow the exposures alleged in the bill for receivership which caused the Bank of America, of which former Judge Abner Smith is president, to remain closed when the hour for opening for business arrived today. State Bank Examiner C. C. Jones worked all night with a crew of assistants in the bank's quarters in the rooms on the second floor of the Ashland block. After a cursory inspection of the notes, securities and paper of the bank, Examiner Jones made the following statement: "It 's too early to determine whether criminal presecutions will follow. If the banking laws of the state were violated there could hardly be any question as to what the procedure would be. I will not be ready to make any. Intelligent report for a day or two from the appearance of things now."

2. February 16, 1906 The Fargo Forum and Daily Republican Fargo, ND
Article from The Fargo Forum and Daily Republican, February 16, 1906

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CHICAGO BANK IN HANDS OF RECEIVER Chicago, Feb. 16.-The Bank of America, incorporated last December with a capital stock of $25,000, was placed in the hands of a receiver at IO o'clock last night by Judge Chytraus of the superior court, on complaint of John E. Kavanaugh, one of the stockholders. The bill asking for the receivership holds Former Judge Abner Smith, the president, and three other officials of the bank responsible for the insolvency of the institution.

3. February 16, 1906 The Roswell Daily Record Roswell, NM
Article from The Roswell Daily Record, February 16, 1906

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New Governor for Alaska. Washington, D. C., Feb. 16.-The President has / offered the governorship of Alaska to D. H. Jarvis, former ly of the revenue cutter service, but now engaged in business in Alaska. WILL PAY SAVINGS ACCOUNTS Commercial Depositors Will Receive Forty Per Cent. Chicago, Feb. 16.-Receiver Healy, of the Bank of America, whose failure was announced yesterday afternoon, issued a notice today saying that the savingsk accounts would be paid in full on Monday and that the commercial depositors will receive forty per cent of their money within a few days, and the balance in a short time thereafter. The receiver declared that after looking over the books he was convinced that while the depositors would be paid in full, the stockholders will lose every cent they had put in the bank. The cause of the failure is said to have been injudicious loans.

4. February 16, 1906 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, February 16, 1906

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BANK OF AMERICA CLOSED Court Appoints Receiver for New Chicago Financial Institution. SERIOUS CHARGES AGAINST OFFICIALS President and Directors Accused of Withdrawing Capital Stock and Making Large Loans to Themselves CHICAGO, Feb. 15.--The Bank of AmerIca, incorporated last December with a capital stock of $250,000. was placed in the hands of a receiver at 10 o'clock tonight by Judge Chytraus of the superior court on complaint of John E. Kavanaugh, one of the stockholders. The bill asking for the receivership holds former Judge Abner Smith, president, and three other officials of the bank responsible for the insolvency of the institution. In the few weeks since the opening of the bank President Smith is charged with having so manipulated securities, mortgages and notes and the stock of the bank that he has obtained amounts aggregating $146,000. The other three officials who, in connection with President Smith, are held responsible for the alleged Insolvency of the bank are G. F. Sorrow, vice president: Jerome V. Pierce, cashier. and F. E. Creelman, a stockholder and director. It is charged against these officials, together with President Smith, that they had absolute control of the bank and its funds. Officials Borrow Money. The operations of President Smith and the other officials mentioned in the bill are said to have been begun before the bank opened for business. Smith is said to then have borrowed money and placed it in the treasury to deceive the state into believing that the stock had been paid up. President Smith was one of the prime movers in the formation of the bank, having subscribed for $70,000 of the stock. In order to prevent, if possible, a panic and a possible run on the bank. it was decided to file the bill for the appointment of a receiver late tonight. Judge Chytraus and the clerk of the superior court had been asked to be in their offices and agreed to do so. Shortly before 10 o'clock attorneys representing Mr. Kavanaugh appeared with the petitions for a receiver. Notice had been served previously on President Smith, but he did not appear either in person or by attorney. After reading the bill, the court entered an order appointing Daniel J. Healy, a stockholder, receiver. Bonds of $150,000 were furnished and Mr. Healy took charge of the bank. a Capital Stock Withdrawn. Among the specific charges made against President Smith are: I That before the bank was certified by I the state auditor, President Smith borrowed money and paid it into the bank 1 to cause the requisite amount of stock subscribed for by them to appear as paid on the books so that the full amount of money represented by the capital stock was on deposit. That immediately after the examination by the auditor and after the bank had commenced to do business Snutn and others depleted the stock by withdrawing the money they had deposited in pay ing for stock subscribed by them. That President Smith borrowed $70,000 from the bank. giving in return notes signed by his wife and brother-in-law. which are declared to be of little value. That within a few weeks after the bank opened for business Smith secured $62,500 from the bank for himself. giving in return mortgages on real estate which are said to be t inadequate security, It is also alleged that President Smith entered into a contract with F. E. Creelman, a stockholder. by which the latter was to subscribe to 250 shares of the stock and was to be permitted to withdraw $150. 000 from the bank at any time he wished. This, it is stated in the bill, was done and Creelman has withdrawn nearly $200,000, giving in exchange drafts on other corporations. he was interested in. Many of these drafts, it is asserted. were sent back e unpaid, until Creelman owed the bank $80,000. President Smith. against which the serious charges are made, was a member of the Cook county bench for many years, t having retired from the court in 1904. e Mr. Creelman, who is charged with unI loading a large amount of paper of questionable value on the institution, is a Chicago lumber merchant, Three Hundred Thousand Deposits. t The bank had about $300,000 in deposits, ) of which $25,000 was in savings accounts of a working people. Attorney Clarence Darrow, who is a ) stockholder, paid up to the extent of $11,000 ; personally has coine to the rescue of the savings depositors. 'All savings depositors 1 will be paid in full.' said Attorney Darrow. i "I will buy their books as they are presented at the bank. The bank will be opened in the morning under charge of Receiver Healy

5. February 16, 1906 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, February 16, 1906

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BANK OF AMERICA. Depositors Are Assured They will Recelve Every Cent of Their Money. Chicago, Feb. 16.-A crowd of depositors gathered around the door of the Bank of America as early as 7 o'clock today In the hope of securing their money. Among the number were many drug clerks, the bank having worked extensively through the drug stores in all parts of the city. In many drug stores notices had been posted informing the public that deposits would be received at the drug store for the bank. and offers of interest in the institution were held out to the clerks as inducement to secure large deposits. The first official of the bank to put in an appearance was S. H. Howe, the assistant cashier. He opened the door and to a crowd of depositors said in substance: "Within a week you will receive 85 to 40 per cent of your money, and the balance within a few days after that. All depositors will be paid in full. We have $100,000 in cash on hand, and some securities that will be disposed of within a week. There is not the slightest fear that any of the depositors will lose any of their money." Later in the day Receiver Healy issued a notice saying that savings accounts would be paid on Monday and that Commercial depositors will receive 40 per cent of their money within a few days and the balance in a short time thereafter. The receiver declared, after looking over the books today, that while the depositors will be paid in full, the stock holders will lose every cent they have put into the bank.

6. February 16, 1906 The Paducah Sun Paducah, KY
Article from The Paducah Sun, February 16, 1906

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CHICAGO BANK Closes But Savings Will Be Paid Off Monday. Chicago, Ill., Feb. 16.-Action by county officials may follow the exposure alleged in the bill for a receivership which caused the bank of America, of which Former Judge Abner Smith was president, to remain closed when the hour for opening came today. The state bank examiner worked all night on the books and charges against the bank are unusual banking methods. It has $300,000 deposits. Receiver Healy today posted this notice: "Arrangements have been made to pay or take care of savings accounts of this bank rext Monday morning."

7. February 16, 1906 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, February 16, 1906

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AFTER THEIR MONEY. Depositors of Bank of America Put Off With Usual Promise, Chicago, Feb. 16.-A crowd of depositors gathered around the door of the Bank of America, as early as 7 o'clock today in the hope of securing their money. Among the number were many drug clerks, the bank having worked extensively through the drug stores in all parts of the city. In many drug stores notlees had been posted informing the public that deposits would be received at the drug store for the bank and offers of interest in the institution were held out to the clerks as inducement to secure large deposits. The first official of the bank to put in an appearance was R. H. Howe, the assistant cashier. He opened the doors, and a crowd of depositors swarmed after him. Mr. Howe made a speech to the depositors saying in substance: "Within a week you will receive 35 to 40 per cent of your money, and the balance within a few days after that. All depositors will be paid in full. We have $100,000 in cash on hand, and some securities that will be disposed of within a week. There is not the slightest fear that any of the depositors will lose any of their money." When asked as to the cause of the trouble Mr. Howe replied: "The cause of the failure is injudicious loans. All money received after 3 o'clock yesterday has been put aside and customers can have it at any time they call for it. Receiver Healy, who appeared at the bank a short time after Mr. Howe had addressed the depositors, confirmed the statements made by him. "I have no doubt," he said, "that all the depositors will be paid in full. We are making arrangements to care for the savings accounts at once, but the commercial depositors will be compelled to wait for a few days until we know just where matters stand." President Abner Smith today deplored the fact that he should at his age have been brought into an affair of this kind. Ht said: "I got into this thing through my connection with some real estate loans. Everything would have been all right if the stockholders had not squabbled as to who had and who had not paid in full for stock."

8. February 17, 1906 Bismarck Daily Tribune Bismarck, ND
Article from Bismarck Daily Tribune, February 17, 1906

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DEPOSITORS WILL NOT LOSE. Promise Made by Receiver of Defunct Chicago Bank. Chicago, Feb. 17.-A crowd of depositors gathered around the door of the Bank of America. for which a receiver has been appointed, as early as 7 a. m. in the hope of securing their money. Among the number were many drug clerks, the bank having worked extensively through the drug stores in all parts of the city. The first official of the bank to put in an appearance was R. H. Howe, the assistant cashier. He opened the doors and a crowd of depositors swarmed after him. Mr. Howe made a speech to the depositors, saying in substance: "Within a week you will receive 35 to 4@ per cent of your money and the balance within a few days after that All depositors will be paid in full. We have $100,000 in cash on hand and some securities that will be disposed of within a week. There is not the slightest fear that any of the depositors will lose any of their money." Receiver Healy, who appeared at the bank a short time after Mr. Howe had addressed the depositors, confirmed the statements made by him. "I have no doubt," he said, "that all the depositors will be paid in full. We are making arrangements to care for the savings accounts at once, but the commercial depositors will be compelled to wait for a few days until we know just where matters stand." The receiver declared, after looking over the books, that while the depositors will be paid in full the stockholders will lose every cent they have put into the bank.

9. February 17, 1906 Ottumwa Tri-Weekly Courier Ottumwa, IA
Article from Ottumwa Tri-Weekly Courier, February 17, 1906

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BANK OFFICIAL SAYS THERE IS NO FEAR THAT ANY WILL LOSE THEIR MONEY BANK OF AMERICA FAILS Chicago Institution Goes Into the Hands of a Receiver-Was Organ. Ized Last December-Bad Loans, Mismanagement and Many Other Ir regularities Aro Charged. / Chicago, III., Feb. 16. - A crowd of depositors was gathered around the door of the Bank of America as early as 7 o'clock this morning in the hope of securing their money. The first official of the bank to put in his appearance was Assistant Cashier Howe, who made a speech to the depositors saying in substance: "Within a week you will receive from 35 to 40 per cent of your money and the balance within a few days after that. All depositors will be paid in full. There is not the slightest fear that any of the depositors will lose their money." Howe said the cause of the failure was injudicious loans. Opened December 4. The Bank of America, which opened its doors December 4 and had deposits of $300,000 was placed in the hands of a receiver at 9:30 o'clock last night. The order permitting this action was issued by Judge Chytraus on an application by John E. Kavanagh, one of the stockholders, who charged fraud and misapplication of the funds by President Abner Smith, and followed an investigation which had been conducted by Attorney Darrow of the firm of Darrow, Masters & Wilson, begun two weeks ago. The petition for a receiver is based upon charges that from the organization the officers hired more clerks and employes than were necessary, failed to pay for the stock issued by themselves, but borrowed money from the bank with which to pay for the stock; that they filled the bank with worthless notes obtained upon worthless security; that they allowed themselves very large salaries which they secured to themselves through their own ma chinations.

10. February 17, 1906 The Salt Lake Tribune Salt Lake City, UT
Article from The Salt Lake Tribune, February 17, 1906

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NEW LO UP IN RAG TIME Former Judge Charged With Breaking All Records in Wrecking Bank. RECEIVER APPOINTED AT NIGHT TO PREVENT A RUN President of Chicago Institution Charged With "Obtaining" $146,000 in Few Weeks. CHICAGO, Feb. 16.-The Bank of America, incorporated last December, with a capital stock of $250,000. was placed in the hands of a receiver at 10 o'clock last night by Judge Chytraus of the Superior court on complaint of John E. Kavanaugh, one of the stockholders The bill asking for the receivership holds former Judge Abner Smith. president and three officers of the bank responsible for the insolvency of the Institution In the few weeks since the opening of the bank President Smith 18 charged with having so manipulated securities, mortgages and notes and the stock of the bank that he has obtained amounts aggregating $146,000. The other three of ficers, who in connection with President Smith, are held responsible for the alleged insolvency are G. F. Sorrow, vicepresident; Jerome Pierce, cashier, and F. E Creelman a stockholder and director It is charged against these officials, together with President Smith, that they had absoluté control of the bank and its funds. Began Work Early The operations of President Smith and the officiale mentioned in the bill are said to have been begun before the bank opened for business. Judge Smith is said then to have borrowed money and placed it In the treasury to deceive the State Auditor into believing that the stock had been paid up. President Smith was one of the prime movers in the formation of the bank, having subscribed for $70,000 of the stock In order to prevent, if possible, a panic and a possible run on the bank. it was decided to file the bill for a receiver late tonight Judge Chytraus and the clerk of the Superior court had been asked to be in their office and agreed to do so. Shortly before 10 o'clock attorneys representing Mr. Kavanaugh appeared with the petition for a receiver Notice had been served previously on President Smith, but he did not appear either in person or by attorney After reading the bill the court entered an order appointing Daniel J. Healy, a stockholder, receiver Bonds of $150,000 were furnished and Mr. Healy took charge of the bank Deception From the Start. Among the specific charges made against President Smith are: That before the bank was certified by the State Auditor President Smith borrowed money and paid It Into the bank to cause the requisite amount of stock subscribed for by them to appear as paid on the books so that the full amount of money represented by the capital stock was on deposit That immediately after the examination by the Auditor and after the bank had commenced to do business Smith and others depleted the stock by withdrawing the money they had deposited in payment for the stock subscribed by them That President Smith borrowed $70,000 from the bank. giving in return notes signed by his wife and brother-in-law which are declared to be of little value. That within a few weeks after the bank opened for business Smith secured $62,500 from the bank for himself. giving in return mortgages on real estate which are said to be Inadequate as security It is also alleged that President Smith entered into a contract with F. E. Creel man, a stockholder. by which the latter was to subscribe to 250 shares of the stock and was to be permitted to withdraw $150,000 from the bank at any time he wished. This, it is stated in the bill. was done and Creelman has withdrawn nearly $200,000. giving in exchange drafts on other corporations in which he was interested Many of these drafts, it le asserted, were sent back unpaid until Creelman owed the bank $80,000 President Smith, against whom the serious charges are made, was a member of the Cook county bench for many years. having retired from the court in 1904. Mr. Creelman, who is charged with unloading a large amount of paper of quesa tionable value on the institution is Chicago lumber merchant The bank had about $300,000 in deposits of which $25,000 was in savings accounts of working people Attorney Clarence Darrow who is a stockholder. paid up to the extent of $11. 000. personally has come to the rescue of the savinge depositors. 'All savings depositors will be paid in full, said Attorney Darrow "I will buy their books as they are presented at the bank The bank will be opened in the morning in charge of Receiver Healy.

11. February 17, 1906 The Salt Lake Tribune Salt Lake City, UT
Article from The Salt Lake Tribune, February 17, 1906

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DEPOSITORS WILL BE PAID. Stockholders Will Lose Every Cent They Put in the Bank. CHICAGO Feb. 16-A crowd of depositors gathered around the door of the Bank of America as early as 7 o'clock today in the hope of securing their money. Among the number were many drug clerks, the bank having worked extensively through the drug stores in all parts of the city. In many drug stores notices had been posted informing the public that deposits would be received at the drug store for the bank, and offers of interest in the institution were held out to the clerks as inducement to secure large deposits. The first official of the bank to put in an appearance was S. H. Howe, the assistant cashier He opened the door, saying in substance to a crowd of depositors: "Within a week you will receive 85 to 40 per cent of your money, and the balance within a few days after that. All depositors will be paid in full. We have $100,000 in cash on hand, and some securities that will be disposed of within a week. There is not the slightest fear that any of the depositors will lose any of their money." "Injudicious" Loans. When asked as to the cause of the trouble Mr. Howe replied: "The cause of the failure is injudicious loans. All money received after 3 o'clock yesterday has been put aside, and customers can have it at any time they call for it." Receiver Healy, who appeared at the bank a short time after Mr. Howe addressed the depositors. confirmed the statements made by him. "I have no doubt," he said, "that all the depositors will be paid in full. We are making arrangements to care for the savings accounts at once, but the commercial depositors will be compelled to wait for a few days until we know just where matters stand." President Smith Explains. President Abner Smith today deplored the fact that he should at his age, have been brought into an affair of this kind. He said: "I got into this thing through my connection with some real estate loans. Everything would have been all right If the stockholders had not squabbled as to who had and who had not paid in full for stock. The receiver declared, after looking over the books today, that while the depositors will be paid in full, the stockholders will lose every cent they have put into the bank.

12. February 20, 1906 Lewiston Evening Teller Lewiston, ID
Article from Lewiston Evening Teller, February 20, 1906

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FEAR ANOTHER BANK INVOLVED Rush Made Today by Depositors Jackson Savings & Trust Co. Chicago, Feb. 20.-There is fear that the Jackson Trust & Savings Bank is involved in the failure of the Bank of America, caused by a run on the former institution today. The bank officials, however, say they will meet all demands.

13. February 21, 1906 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, February 21, 1906

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STORIES START BANK RUN Second Chicago Financial Institution Pays Depositors Rapidly and Bankers Are Not Alarmed By Associated Press. CHICAGO, Feb. 20.-A run was started on the Jackson Trust and Savings bank, it being thought by many of the depositors that the institution is involved by the failure of the Bank of Bankers America three days ago. say the run will be withstood. At the hour set for the opening 300 depositors commenced to withdraw their funds. It is known that the institution is a loser through loans to F. C. Creelman, whose loans from the Bank of America were the immediate cause of the closing of that concern. The amount loaned to Creelman by the Jackson Trust and Savings bank is said by officers to be $25,000, but stories on the streets by which the depositors were alarmed put the amount at several times $25,000. The savings bank department remained open until 5 o'clock in order to pay off depositors.

14. February 22, 1906 The Cairo Bulletin Cairo, IL
Article from The Cairo Bulletin, February 22, 1906

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Creelman, the son, and for the Aronson Lumber Company. Action on the Illino's Hardwood Company was postboned until Thursday. Pre ident William H. Eagan and Cashier Wiliam M. Lawton of the Jackson Bank vere subpoenad as witneses to testify regarding Creelman's operations. At the Bank of America it was stat ed yesterday that Creelman had $70.00 worth of doubtful paper in the Jackson Bank which pressed him for 1 settlement and the securities were immediately transferred to the wrecked concern. Atorneys Lloyd Whitman and Harry Horner, Jr., yesterday announced that they are planning to consolidate all the Creelmans' property for amicable settlement with the various creditors. The grand jury is hurrying its grist of petty docket cases in preparation to take up consideration of the charges of conspiracy and fraud against President Abner Smith Vice President G. F'. Sorrow. Cashier Jerome Pierce and Director F. E. Creelman of the Bank of America. Receiver Dan D. Healy reported stockholders are paying up delinquent subscriptions, and that good progress is being made in as sembling the assets.

15. February 22, 1906 Wood County Reporter Wisconsin Rapids, WI
Article from Wood County Reporter, February 22, 1906

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Will Pay Depositors in Full. Developments in the Bank of America failure in Chicago indicate that depositors will be paid in full and disclose serious defects in the conduct of the institution. Receiver has been appointed for the F. E. Creelman Lumber and Manufacturing Company, the head of which is the largest borrower of the failed bank.

16. February 22, 1906 The Bamberg Herald Bamberg, SC
Article from The Bamberg Herald, February 22, 1906

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QUICK BANK WRECK Organized in December and Now in Hands of Reciver. PRESIDENT UNDER BAN Allegation That Officials of the Institution Have Done as They Pleased with the Funds - Depositors May Be Saved. The Bank of America, incorporated in Chicago last December, with a capital stock of $250,000, Thursday night, was placed in the hands of a receiver on complaint of John E. Kavanaugh, a stockholder. The bill asking for the receivership holds former Judge Abner Smith, president and three other officers of the bank responsible for the alleged insolvency of the institution. In the few weeks since the opening of the bank, President Smith is charged with having so manipulated securities, mortgages and notes and stock of the bank that he has obtained amounts aggregating $146,000. The other three officers, who, in connection with President Smith are held responsible for the alleged insolvency of the bank are: G. F. Sorrow, vice president; Jerome V. Pierce, cashier, and F. E. Greelman, a stockholder and director. It is charged against these officials, together with President Smith, that they have done as they pleased with the funds of the bank, have voted themselves such salaries as they desired, and have lent the money of the incorporation on such securities as they saw fit. The bank had about $300,000 in deposits, of which $25,000 was in savings accounts of working people. The representatives of the bank declare there is 40 per cent of the cash on band and a large amount of paper, the value of which is unknown. On this paper depends the chance of the bank liquidating in full. Attorney Clarence Darrow, who is a stockholder, paid up to the extent of $11,000, personally has come to the rescue of the saving depositors. "All savings depositors will be paid in full," said Attorney Darrow. "I will buy their checks as they are presented at the bank. The bank will be opened in the morning under charge of Receiver Healey." Mr. Greelman, who is charged with unloading a large amount of paper on the institution, is a Chicago lumber merchant, and is said to have large lumber interests in Nashville, Tenn.

17. March 1, 1906 The Manitowoc Pilot Manitowoc, WI
Article from The Manitowoc Pilot, March 1, 1906

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PUT INTO THE HANDS or A RECEIVER. POSTAL SLEUTHS ON CASE Their Investigation of Co-operative Store Leads to Application for Action by Courts. CHICAGO, III., Feb. 27.-Federal Judge S. H. Bethea has appointed Edwin C. Day receiver for the Cash Buyers' Union First National Co-operative society. The concern is a mammoth mail order house of $5,000,000 capital stock, supposed to be modeled after the Manchester Co-operative society of England. It has stockholders among farmers and laboring people throughout the country. It occupies an eight-story building at Jackson boulevard and Green street. Postal Officials on Trail. The action was taken on the petition of three creditors who acted at the direct instigation of the postal authorities, who have been conducting an investigation of the company during the last six months. Criminal prosecution depends upon the examination of the books, which will be taken up under the receivership. The postoffice inspectors say that $1. 027.000 worth of common stock has been sold. Julius Kahn, formerly with Sears, Roebuck & Co., is president. Admitted liabilities are close to $300,000, and it is estimated that the merchandise on hand it not worth more than $150,000. The open bank account of the society is $60. Seek to Block Receivership. Following this action a move to block the receivership and all court proceedings was taken at a meeting of representatives of twenty-two creditors held in the office of the society. This meeting was called for the purpose of ascertaining the condition of the society. The claims of the creditors represented were $75,000. A circular was issued in an effort to settle the affair without going to court. The petition in bankruptcy was presented by Attorney Edward Everett. representing the Wachusett Shirt company, Kirsheimer Bros.. and the United Shirt and Collar company, whose claims ag gregate $700. Defendant Asks Delay. The co-operative society was represented by Attorney Jacob Newman. He declared that the assets of the firm are close to $500,000, while the liabilities are not more than $300,000. He objeeted to the receivership on the ground that it would take but a few days to get the situation in hand. "I have received information from the postoffice authorities which leads me to believe that it will be unwise for me to wait longer." said Judge Bethea. "There is ground for suspicion from the mere fact that the postoffice men are investigating." Mr. Day was appointed in bonds of $150,000. Stock amounting to $1,027,000 sold through the mails. The stockholders paid $10 a share. They were told that a 10 per cent. dividend would be paid each year and that stockholders would receive 5 per cent. discount on all purchases made and a 5 per cent. commission on all sales made to customers. Discoveries of Inspectors. The inspectors discovered that of the $1,027,000 received from the sale of stock. $1,000,000 from sales of goods during the last year, and thousands of dollars received in other ways, all that the society now holds is placed at a high valuation by the postoffice man at $300.000. The receipts of the company during January and February are placed at $260,000. Many orders have not been filled, and many employes have not been paid. The rental of the building is $35,000 a year, and there are 150 employes. Bank Officials to Be Prosecuted. As the result of investigation it has been found that F. E. Creelman of the defunet Bank of America "kited" a $40.000 check to make it appear to the bank examiners that $250,000 had been paid in cash for bank stock. Revelations made yesterday, which exceed in importance and unsavory features anything hitherto disclosed. are believed to furnish ample basis for the criminal prosecution of the bank's officials Settle Boston Bank Failure. DENVER Colo., Feb. 27. - Representatives of the defunct Provident Savings bank of Boston and the Shenandoah Irrigation and Land company of Colorado have agreed to a basis of settlement of the claims of the bank against the Irrigating company. The agreement provides that D. II. C. Willoughby shall pay the receivers of the Provident Sayings bank $17,000 in cash and will receive the 142.000 shares of Shenandoah stock and all not 9 and bonds of the company now held as assets of the bank.

18. August 24, 1906 The Jasper Weekly Courier Jasper, IN
Article from The Jasper Weekly Courier, August 24, 1906

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# PUSH PICTURE FRAME CONCERN. Laporte Company Embarrassed by Failure of Chicago Bank. Laporte. — A petition asking that the Planett Manufacturing company, of this city, manufacturers of picture frame and room molding, be declared bankrupt has been filed in the federal court here by the American National bank of Pensacola, Fla., the Union Bank & Trust company, Montgomery, Ala., and the First National bank, Evergreen, Ala. Emmet Scott was last week appointed receiver for the company by Judge Richter, of the Laporte circuit court, upon petition of local creditors. Outside creditors were not satisfied and asked the federal court to appoint another receiver. It is estimated that the assets of the company are $175,000; liabilities, $225,000. Failure of the Bank of America, Chicago, and the Creelman Lumber company, are connected with the financial troubles of the Planett company.

19. January 3, 1907 River Falls Journal River Falls, WI
Article from River Falls Journal, January 3, 1907

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BUSINESS FAILURES Jan. 14-Parsons, Snyder & Co., Cleveland, O.; liabilities, $150,000. 18-G. S. McReynolds & Co., Chicago; liabilities, $400.000. Feb. 8.-Boliver County Bank, Cleveland, Miss.; liabilities, $110,000; assets, $130,000. 15-Bank of America, Chicago, placed in receiver's hands. 26-Cash Buyers' Union, Chicago, placed in receiver's hands Williamson Libbey Lumber Co., Oshkosh, Wis.; liabilities, $500,000. Mar. 1-Southern Bank & Trust Co., Ft. Smith, Ark., owing depositors $80,000. 2-Walsh,* president defunct Chicago National bank, arrested on charge of falsifying reports. 27-National Business College, Quincy, Ill., assigns; liabilities, $30,000; assets, $100,000. 29-North Freedom (Wis.) bank closed by examiner. Apr. 2-Teis, Smith & Co., bankers, Pekin, Ill.; liabilities, $100,000. May 2-Delmont national bank, Delmont, Pa., closed Receiver for American Reserve Bond Co., St. Louis, appointed. Jun. 18-Farmers' State bank of Clearfield, Ia., closed by state bank examiner. Aug. 6-Milwaukee Ave. State bank, Chicago, closed by state bank examiner; liabilities, $4,000,000. 8-F. E. Coyne, ex-postmaster, Chicago, failed in bakery and luncheon business. 16-Garfield Park bank of Chicago closed as result of collapse of Milwaukee Ave. State bank. 28-Real Estate Trust Co., of Philadelphia, suspends business; liabilities, $7,000,000. Sep. 20--Bates National bank, of Butler, Mo., closed by directors. 29-Private bank at Middleport, O., closed. Nearly all deposits of $115,000 gone. Nov. 15-Bank of Beckwith & Co., at Evanston, Wyo., closed owing to financial troubles. 30-Three banks conducted by C. V. Chandler at Macomb, Colchester and Bardolph, Ill., closed for lack of ready cash. Dec. 1-Bank of Kiowa, I. T., closed on account of slow collections and inability to realize on assets. 12-Farmers' and Drovers' National bank of Waynesburg, Pa., closed by comptroller of currency. 13-Cummings Commission Co., one of largest brokerage houses in northwest, suspends. 17-Lincoln bank of Morton Park, susurb of Chicago, fails.

20. January 3, 1907 The Globe-Republican Dodge City, KS
Article from The Globe-Republican, January 3, 1907

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BUSINESS FAILURES Jan. 14-Parsons, Snyder & Co., Cleveland, O.; liabilities, $150,000. 18-G. S. McReynolds & Co., Chicago; liabilities, $400.000. Feb. 8.-Boliver County Bank, Cleveland, Miss.; liabilities, $110,000; assets, $130,000. 15-Bank of America, Chicago, placed in receiver's hands. 26-Cash Buyers' Union, Chicago, placed in receiver's hands Williamson Libbey Lumber Co., Oshkosh, Wis.; liabilities, $500,000. Mar. 1-Southern Bank & Trust Co., Ft. Smith, Ark., owing depositors $80,000. 2-Walsh, president defunct Chicago National bank, arrested on charge of falsifying reports. 27-National Business College, Quincy, Ill., assigns; liabilities, $30,000; assets, $100,000. 29-North Freedom (Wis.) bank closed by examiner. Apr. 2-Teis, Smith & Co., bankers, Pekin, Ill.; liabilities, $100,000. May 2-Delmont national bank, Delmont, Pa., closed Receiver for American Reserve Bond Co., St. Louis, appointed. Jun. 18-Farmers' State bank of Clearfield, Ia., closed by state bank examiner. Aug. 6-Milwaukee Ave. State bank, Chicago, closed by state bank examiner; liabilities, $4,000,000. 8-F. E. Coyne, ex-postmaster, Chicago, failed in bakery and luncheon business. 16-Garfield Park bank of Chicago closed as result of collapse of Milwaukee Ave. State bank. 28-Real Estate Trust Co., of Philadelphia, suspends business: liabilities, $7,000,000. Sep. 20-Bates National bank, of Butler, Mo., closed by directors. 29-Private bank at Middleport, O., closed. Nearly all deposits of $115,000 gone. Nov. 15-Bank of Beckwith & Co., at Evanston, Wyo., closed owing to financial troubles. 30-Three banks conducted by C. v. Chandler at Macomb, Colchester and Bardolph, Ill., closed for lack of ready cash. Dec. 1-Bank of Kiowa, I. T., closed on account of slow collections and inability to realize on assets. 12-Farmers' and Drovers' National bank of Waynesburg. Pa., closed by comptroller of currency. 13-Cummings Commission Co., one of largest brokerage houses in northwest, suspends. 17-Lincoln bank of Morton Park, susurb of Chicago, fails.

21. January 4, 1907 The Ely Miner Ely, MN
Article from The Ely Miner, January 4, 1907

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BUSINESS FAILURES Jan. 14-Parsons, Snyder & Co., Cleveland, O.; liabilities, $150,000. 18-G. S. McReynolds & Co., Chicago; liabilities, $400.000. Feb. 8.-Boliver County Bank, Cleveland, Miss.; liabilities, $110,000; assets, $130,000. 15-Bank of America, Chicago, placed in receiver's hands. 26-Cash Buyers' Union, Chicago, placed in receiver's hands Williamson Libbey Lumber Co., Oshkosh, Wis.; liabilities, $500,000. Mar. 1-Southern Bank & Trust Co., Ft. Smith, Ark., owing depositors $80,000. 2-Walsh, president defunct Chicago National bank, arrested on charge of falsifying reports. 27-National Business College, Quincy, Ill., assigns; liabilities, $30,000; assets, $100,000. 29-North Freedom (Wis.) bank closed by examiner. Apr. 2-Teis, Smith & Co., bankers, Pekin, Ill.; liabilities, $100,000. May 2-Delmont national bank, Delmont, Pa., closed Receiver for American Reserve Bond Co., St. Louis, appointed. Jun. 18-Farmers' State bank of Clearfield, Ia., closed by state bank examiner. Aug. 6-Milwaukee Ave. State bank, Chicago, closed by state bank examiner; liabilities, $4,000,000. 8-F. E. Coyne, ex-postmaster, Chicago, failed in bakery and luncheon business. 16-Garfield Park bank of Chicago closed as result of collapse of Milwaukee Ave. State bank. 28-Real Estate Trust Co., of Philadelphia, suspends business; liabilities, $7,000,000. Sep. 20-Bates National bank, of Butler, Mo., closed by directors. 29-Private bank at Middleport, O., closed. Nearly all deposits of $115,000 gone. Nov. 15-Bank of Beckwith & Co., at Evanston, Wyo., closed owing to financial troubles. 30-Three banks conducted by C. V. Chandler at Macomb, Colchester and Bardolph, Ill., closed for lack of ready cash. Dec. 1-Bank of Kiowa, I. T., closed on account of slow collections and inability to realize on assets. 12-Farmers' and Drovers' National bank of Waynesburg, Pa., closed by comptroller of currency. 13-Cummings Commission Co., one of largest brokerage houses in northwest, suspends. 17-Lincoln bank of Morton Park, susurb of Chicago, fails.

22. March 29, 1907 The Cairo Bulletin Cairo, IL
Article from The Cairo Bulletin, March 29, 1907

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# BANK WRECKERS NOW ON TRIAL CHICAGO COURT TAKES UP CASES OF OFFICIALS OF CREELMAN BANK. # JURY MADE TO SMILE At Frank Creelman's Speech Expressing Hope That This Bank Would Be Liberal in Making Loans. In a Chicago court Wednesday the cases of the officials of the defunct Bank of America had the second inning. Daniel D. Healy testified as to notes alleged to be worthless, which were issued through the bank, the notes being produced as evidence. Bank Examiner C. C. Jones followed Mr. Healy, and stock holders of the bank were also called. The proceedings of yesterday began with a motion by Attorney Stedman to exclude from the trial the use of the books of the bank on the ground that the defendants should not be compelled to produce testimony against themselves. The motion was overruled. The remainder of the morning session was occupied by Mr. Young in outlining the charges of the state. The case was begun on Wednesday when the proceedings were more interesting, there being a lively running fire of objections, expostulations and personal comment by attorneys. That every move of the state will be fought to the last ditch by the seven lawyers who are defending former Judge Abner Smith and his three associates became clear as soon as the proceedings began. During the opening statement of Assistant State's Attorney Hobart P. Young the lawyers leaned forward eagerly, taking advantage of every opportunity to pounce upon a suspected flaw, and when Daniel D. Healy took the stand as the state's first witness much of his time was spent listening to arguments and counter arguments as to the admissibility of his testimony. At one point Judge Pinckney became impatient. "Logical cbjections," he said, "may be made to the court. This exchange of personalities must stop." Healy Tells of Bank's History. Mr. Healy, who was one of the officials of the defunct bank and was subsequently appointed its receiver, took the stand at the beginning of the afternoon session. In reply to questions from Mr. Young, he outlined briefly the circumstances of the organization and opening of the bank and began to tell of the difficulties which attended its brief career. His testimony will be continued today. At the beginning of his testimony Mr. Healy precipiated a legal wrangle which threatened to last the re-mainder of the afternoon. He told of a banquet held by the organizers of the bank at the Sherman house on the evening of November 29, 1905, a week before the opening of the institution. "Your, honor, does the jury want to hear about all the cocktails and Roman punch they had?" interposed Attorney Seymour Stedman after listening to come of the details. Mr. Healy was allowed to go on and proceeded to teil about the post-prandial speechs. Creeiman for Liberal Loans. "Frank Creelman" he said, "made a speech. He said that he hoped the bank would be more liberal than most banks in making loans." The jury smiled, and Mr. Stedman interposed a vigorous objection. After a time the storm was weathered and the hearing proceeded. "What office, if any, did you hold in the bank after it opened?" asked Attorney Young. "I was supposed to be a trust officer," Mr. Healy replied. "What did you do?" "Why, I don't know that I did much of anything except around. I was at the bank every day." Mr. Healy said that he had frequently told Mr. Smith and other officials of the bank that "h did not l'ke the way things were going," and had urged that expenses he cut down but without effect. He told of a consultation with Attorney General Stead and other officials a Springfield in regard