4251. Central Republic Trust Co. (Chicago, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
December 1, 1932*
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
7752d45a

Response Measures

Borrowed from banks or large institutions, Full suspension

Other: Deposits were assumed by the City National Bank & Trust Co.; RFC made large emergency loans in 1932 and later sued in 1934 to collect unpaid balances. Receiver appointed in Nov. 1934.

Description

Contemporary articles state a prolonged run in 1932 forced the Central Republic Bank & Trust Co. to close (deposits assumed by City National Bank & Trust Co.). In 1934 the RFC sued and a receiver was appointed (Nov 21, 1934). Thus sequence: run in 1932 → suspension/closure → receivership in 1934.

Events (3)
1. December 1, 1932* Run
Cause
Bank Specific Adverse Info
Cause Details
Prolonged depositors' run against the bank following its 1932 loan and related distress; articles link run to the bank's emergency loan and subsequent instability.
Measures
Deposit liabilities assumed by the City National Bank & Trust Co.; bank accepted RFC loan to cover deposits but still closed.
Newspaper Excerpt
A prolonged run forced the bank to close two months after the loan was made.
Source
newspapers
2. November 21, 1934 Receivership
Newspaper Excerpt
William L. O'Connell, Chicago, Is Appointed Bank's Receiver; Receivership followed by less than 48 hours the filing of a suit in federal court by the Reconstruction Finance Corporation ... to recoup a balance ... outstanding on an $80,000,000 loan ... .
Source
newspapers
3. November 21, 1934 Suspension
Cause
Government Action
Cause Details
State auditor's petition and RFC litigation prompted court action to place the Trust Co. in receivership for liquidation.
Newspaper Excerpt
Circuit Judge John Prystalski today appointed William L. O'Connell of Chicago, receiver for the Central Republic Trust Co.
Source
newspapers

Newspaper Articles (11)
1. November 20, 1934 The Washington Daily News Washington, DC
Article from The Washington Daily News, November 20, 1934

Click image to open full size in new tab

Article Text

RFC Sues Dawes Bank to Collect Balance of Loan Receivership Asked by Federal Agency to Get $14,000,000 Institution Closed in 1932; Stockholders May Have to Dig Into Their Own Pockets By United Press CHICAGO Stockholders of the Central Republic Trust Co., headed by former Vice President Charles G. Dawes, today faced the prospect of having to dig up $14,000,000 from their own pockets to pay a part of $60,476,437 due the Reconstruction Finance Corporation. The RFC filed suit in Federal District Court yesterday, asking appointment of a receiver to collect the $14,000,000, equal to the trust company's total capitalization, under the law providing double liability for bank stockholders. UNPAID BALANCE The sum due the Federal loan agency is the unpaid balance of the famous $80,000,000 loan negotiated by Gen. Dawes in 1932 for the Central Republic Bank & Trust Co., of which he was chairman, shortly after he retired as head of the RFC. A prolonged run forced the bank to close two months after the loan was made. Deposit liabilities were assumed by the City National Bank & Trust Co., the Central Republic paying over out of the RFC loan an amount equal to the deposits. Dawes now heads the City National. Other liabilities and assets of the closed bank were transferred to the Central Republic Trust Co., which for two years has been liquidating the bank's semi-frozen assets and paying debts. RECEIVERSHIP PLANNED The RFC suit stated that State Auditor E. J. Barrett planned to take over the trust company for liquidation under a state receiver. Other liabilities have for the most part been paid off, the suit safd, while the RFC debt was left to the last. The loan has been in default since Dec. 24. 1932. It was made on a temporary basis purposëly to give the RFC power to guard its funds. At the time the loan was made Dawes declined a small loan to meet the emergency of a depositors' run and said he would close the bank if the RFC refused enough cash to cover deposits fully. Other Chicago banks, fearing the effect of a major bank failure, interceded to carry his point.

2. November 20, 1934 The Cleveland Press Cleveland, OH
Article from The Cleveland Press, November 20, 1934

Click image to open full size in new tab

Article Text

RFC SUES ON DAWES' LOAN Asks Naming of Receiver to Collect $14,000,000 From Bank's Stockholders United CHICAGO, Nov. 20-Stockholders of the Central Republic Trust Co., headed by former Vice President Charles Dawes, today faced the prospect of having to up their part of due the Finance The RFC filed Federal DisCourt late yesterday asking appointment of receiver collect equal the trust company's total capitalization, under the law providing double liabilfor bank stockholders. The sum due the federal loan agency the balance of the famous $80,000,000 loan negotiated Dawes for the Central Republic Bank Trust Co., of which after he retired as head of the RFC. Run Forces Closing prolonged run forced the bank close two months after the loan was made. Déposit liabilities assumed the City National Bank Trust Co., the Central Republic paying out of the RFC loan amount equal to the deposits. Gen. Dawes the City National. Other liabilities and assets of the failed were the Central Republic Trust which for two years liquidating the bank's assets and paying debts. RFC Debt Last The RFC suit stated that State Auditor Barrett planned over the trust company for under state receiver Other liabilities for the suit said; the RFC debt was left to the The loan has been in default since made temporary basis purposely to the RFC power guard its funds. loan was refused enough deposits Other Chicago fearing the effect failure, interceded his ALDEN DIES STAFFORD long illness resulted Ida Shaw. direct and Pris-

3. November 20, 1934 The Bismarck Tribune Bismarck, Mandan, ND
Article from The Bismarck Tribune, November 20, 1934

Click image to open full size in new tab

Article Text

DAWES BANK LOAN SUBJECT OF SUIT RFC Moves to Collect Part of $90,000,000; 4,000 Stockholders Involved Chicago, Nov. 20.-(P)-The Reconstruction Finance Corporation moved Tuesday to collect a part of over-due funds in the $90,000,000 "Dawes loan." In federal court Monday attorneys for the RFC filed suit against the 4,000 stockholders of the Central Republic Trust Co., seeking to determine their liability in the claimed $60,000,000 unpaid balance. The court was asked to determine if recovery could be made of $14,000,000, the amount of the company's capital stock. Among stockholders named is Gen. Charles G. Dawes, one-time official of the company. At the time the bill was filed Federal Judge John P. Barnes granted RFC attorneys a temporary restraining order enjoining other creditors of the stockholders from instituting similar suits pending disposal of the bill. While the central republic was extended $90,000,000 credit by the RFC, only $80,000,000 actually was borrowed by the institution. A loan of $80,000,000 being obtained on June 29, 1932, and $90,000,000 on Oct. 9, 1932. The suit alleged $7,022,000 still was unpaid on the first loan and $52,000,000, including interest, was due on the second. John L. Hopkins, an attorney for the RFC, said he understood the state auditor might be asked to take over the central republic for liquidation. William C. Freeman, vice president in active charge. of the institution, said that while the bill asked for a receiver who would handle money that might be collected from the stockholders, it did not necessarily mean a receivership for the bank. Freeman said that "there was no reason whatever for a receivership for the Central Republic Trust company and said that monies were being collected as rapidly as possible.

4. November 20, 1934 Evening Star Washington, DC
Article from Evening Star, November 20, 1934

Click image to open full size in new tab

Article Text

DAWES LOAN SUIT IS FILED BY R.F.C. Agency Moves to Collect Amounts Overdue in Advance of $90,000,000. By the Associated Press. CHICAGO, November 20.-The Reconstruction Finance Corp. moved today to collect a part of overdue funds in the $90,000,000 "Dawes loan." In Federal Court yesterday attorneys for the R. F. C. filed suit against the 4,000 stockholders of the Central Republic Trust Co. seeking to determine their liability in the claimed $60,000,000 unpaid balance. The court was asked to determine if recovery could be made of $14,000,000, the amount of the company's capital stock. Among shareholders named is Gen. Charles G. Dawes, one-time official of the company. Temporary Order Granted. At the time the bill was filed Federal Judge John P. Barnes granted R. F. C. attorneys a temporary restraining order enjoining other creditors of the stockholders from instituting similar suits pending disposal of the bill. While the Central Republic was extended $90,000,000 credit by the R. F. C., only $80,000,000 was actually borrowed by the institution. a loan of $30,000,000 being obtained on June 29, 1932, and $50,000,000 on October 5, 1932. The suit alleged $7,022,000 was still unpaid on the first loan and $52,000,000, including interest, was due on the second. John L. Hopkins, an attorney for the R. F. C., said he understood the State auditor might be asked to take over the Central Republic for liquidation. William C. Freeman, vice president in active charge of the institution, said that while the bill asked for a receiver who would handle money that might be collected from the stockholders, it did not necessarily mean a receivership for the bank. Freeman added that "there was no reason whatever for a receivership for the Central Republic Trust Co." and said that monies were being collected as rapidly as possible. Payment Twice Demanded. The R. F. C.'s bill yesterday said payment had been demanded between November 4, 1933, and July 17, 1934, but the nature of the company's reply was not made public. Also, the bill stated, the R. F. C. learned on November 17 that the company was not in position to pay its bills. Jesse Jones, chairman of the R. F. C., said not more than $11,000,000 of the security offered by the bank was of Insull issues. The contents of the security portfolio was reported to a Senate committee in December, 1933. At that time the value of the Insull securities was placed at between $8,000,000 and $9,000,000 by one member of the committee, which refused to make the complete report public.

5. November 20, 1934 Santa Maria Times Santa Maria, CA
Article from Santa Maria Times, November 20, 1934

Click image to open full size in new tab

Article Text

Dawes Faces Millions CHICAGO. Nov. holders of the Central Republic Trust Co., headed by former VicePresident Charles Dawes, today faced the prospect of having to dig up from their pockto part due the Reconstruction Finance Corporation. The RFC filed suit late yesterday, asking appointment of receiver collect the $14,000,000, equal to the trust company's total capitalization. The sum due the federal loan agency the unpaid balance of the famous loan negotiated by General Dawes in 1932 for the concern. which he was chairman. prolonged run forced the bank close two months after the loan made.

6. November 20, 1934 The Cincinnati Post Cincinnati, OH
Article from The Cincinnati Post, November 20, 1934

Click image to open full size in new tab

Article Text

SUES DAWES' BANK FOR 14 MILLION Action Is Repercussion of 1932 Loan to Halt Failure By the United Press. CHICAGO, Nov. 20.-Stockholdof the Central Republic Trust Co., headed by former Vice President Charles G. Dawes, faced the prospect today of having to dig up $14,000,000 from their own pockets to pay part of $60,476,437 due the Reconstruction Finance Corporation. The RFC filed suit in federal court late yesterday, asking appointment of receiver to collect the $14,000,000. equal to the trust total under the law providing double liability for bank stockholders. The sum due the federal loan agency balance of the famous $80,000,000 loan negotiated by Dawes in 1932 for the Central Republic Bank Trust Co., of which he was chairman, shortly after he retired as head of the RFC. prolonged run forced the bank to close two months after the loan was made. Deposit liabilities were assumed by the City National Bank & Trust Co., the Central Republic paying over out of the RFC loan an amount equal to the deposits. Dawes now heads the City National

7. November 20, 1934 York News-Times York, NE
Article from York News-Times, November 20, 1934

Click image to open full size in new tab

Article Text

STOCKHOLDERS SUED BY RFC AT CHICAGO Bank Headed by Charles Dawes, Former Vice President, Is Closed; Had RFC Loan CHICAGO, Nov. 20. holders of the Central Republic Trust Co., headed by former Vice President Charles G. Dawes, today faced the prospect of having to dig up from their own poekets to pay part of due the finance poration. The RFC filed suit in federal district court late yesterday, asking apof receiver to collect equal to the trust company's total capitalization, unproviding double liabilifor bank stockholders The sum due the federal loan agency is the unpaid balance of the famous loan negotiated General Dawes in for the Central Republic Bank Trust company. of which he chairman.

8. November 21, 1934 The Free Press Carbondale, IL
Article from The Free Press, November 21, 1934

Click image to open full size in new tab

Article Text

FOLLOWED SUIT BY RFC DEMANDING REPAYMENT OF 60 MILLION William O'Connell, Chicago, Is Appointed Bank's Receiver ORIGINAL LOAN WAS 80 MILLION Obtained in 1932; Chas. Dawes, Ex-Vice Pres. Stockholder (By Associated Press) CHICAGO, III.. Nov. 21-Circuit Judge John Prystalski today appointed William L. O'Connell of Chicago, receiver for the Central Republic Trust Co. The judge made the appointment shortly after counsel for State Audifor Edward J. Barrett had presented a bill asking dissolution of the Trust company, long identified as the "Dawes" bank because General Chas. G. Dawes, former vice president of the United States, was one of its mafor stockholders and shaped the policies of the bank. Receivership followed by less than 48 hours the filing of a suit in fed. eral court by the Reconstruction Flnance Corporation in an effort to recoup a balance of $60,000,000 outstanding on an $80,000,000 loan it advanced the old Central Republic bank and Trust Co. in 1932. As collateral on its loan the RFC holds title to all the trust company's assets with a book value of $76,000,000.

9. November 23, 1934 The Birmingham Post Birmingham, AL
Article from The Birmingham Post, November 23, 1934

Click image to open full size in new tab

Article Text

DAWES BANK IS SUED FOR DEBT RFC Seeks Receiver To Collect Millions In Default CHICAGO, Nov. 23.-Stockholders of the Central Republic Trust Co., headed by former Vice-President Charles G. Dawes, today faced prospect of having to dig up $14,000,000 from their own pockets to part of $60,476,347 due the Reconstruction Finance Corp. The RFC filed suit in federal district court late yesterday, asking appointment of receiver to collect the $14,000,000, equal to the trust company's total capitalization, under the law providing double liabilty for bank stockholders. The sum due the federal loan agency balance of the famous $80,000,000 loan negotiated by General Dawes in 1932 for the Central Republic Bank Trust Co., which chairman, shortly after he retired as head of the RFC. prolonged run forced the bank two months after the loan was Deposit liabilities were assumed by the City National Bank and Trust Co., the Central Republic paying over out of the RFC loan an amount equal to the deposits. Dawes now heads the City National Other liabilities and assets of the failed bank were transferred to the Central Republic Trust Co., which for two years has been liquidating the bank's -frozen assets and paying debts The RFC suit stated that State Auditor Barrett planned take over the trust company for liquidation under state receiver. Other liabilities have for the most part been off, the suit said, while the RFC debt was left to the last. The loan has been in default since 24, 1932. was made on basis purposely to give the RFC power to guard its funds. At the time the loan was made Dawes declined small loan to meet the of depositors' run and said he would close the bank if the RFC refused enough cash to cover deposits fully. Other Chicago banks, fearing effect major bank failure, interceded to carry his point.

10. December 20, 1934 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, December 20, 1934

Click image to open full size in new tab

Article Text

CONN HOLDERS OF DAWES TRUST CO. SHARES SUED Colonial Trust Company Is Trustee For One of the Defendants / New Haven, Conn., Dec 20.-(UP)-Fifteen - Connecticut stockholders of the Central Republic Trust Co., Chicago, have been named defendants in a suit brought by the government and the RFC to collect $60,476,438.25 allegedly due on two loans granted the institutoin formerly headed by former Vice President Charles G. Dawes. The action, filed in U. S. district court, was said to be the fourth in a series to reçover the loan. now overdue. Of the 140 shares, valued at $100 a share, which went to capitalize the Trust company at $14,000,000, Connecticut residents purchased 162. Loans That Were Made The complaint sets forth the RFC loaned the institutoin $30,000,000 on June 29, 1932 on which $7,722,268.93 now is due as unpaid balance and interest. The second loan of $50,000,000 was made October 6, 1932, and there remains $52,754,169.32 unpaid in principal and interest. The commercial savings and checking accounts of the bank, it was said, have been . transferred to the City National Bank & Trust Co., Chicago, and William L. O'Connell, Chicago, has been appointed receiver for the Central Republic. Appointment of a receiver in Conecticut to collect liabilities in this state was asked in the petition. (Continued on Page 4.)

11. August 14, 1935 Evening Star Washington, DC
Article from Evening Star, August 14, 1935

Click image to open full size in new tab

Article Text

R. F. C. WINS RIGHT TO ASSESS STOCK Dawes Bank Claim Totals $50,000,000-$14,000,000 Is Asked of Stockholders. By the Associated Press. CHICAGO, August 14.-The Reconstruction Finance Corp. yesterday won the first round in its court fight to assess 4,500 stockholders of the old Central Republic Trust Co. for a deficiency on an $80,000,000 loan. Federal Judge James H. Wilkerson overruled a motion to dismiss the R. F. C. suit, intended to make stockholders liable for $14,000,000. The R. F. C. made the loans. to the bank. of which Gen. Charles G. Dawes was chairman, in sums of $30,000,000 and $50,000,000 in June and October, 1932. The bank paid off depositors. and is in process of liquidation under a receiver. In refusing to dismiss the suit, Judge Wilkerson ordered the stockholders to file an answer by September 9, indicating the case will be tried before the end of the year. The most recent R. F. C. report showed about $50,000,000 of the loan debt still unpaid.