4256. Central Republic Trust company (Chicago, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
December 24, 1932
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
6a123eed

Response Measures

Full suspension

Other: Deposit liabilities were assumed by City National Bank & Trust; assets transferred to a trust company for liquidation and RFC sued to collect loan; receiver appointed Nov 1934.

Description

Contemporary articles state a prolonged run forced the bank to close two months after the [Dec. 24, 1932] loan, and in Nov. 1934 RFC sued and a receiver was appointed for the trust company. Thus an initial depositor run led to suspension/closure and eventual receivership/liquidation.

Events (5)
1. December 24, 1932 Other
Newspaper Excerpt
The loan has been in default since December 24, 1932. It was made on a temporary basis purposely to give the RFC power to guard its funds. (article text).
Source
newspapers
2. February 1, 1933* Run
Cause
Bank Specific Adverse Info
Cause Details
Prolonged depositor withdrawals (a run) that followed the 1932 loan and left the bank unable to meet deposits.
Measures
Deposit liabilities were assumed by the City National Bank and Trust company; assets/liabilities transferred to Central Republic Trust company for liquidation.
Newspaper Excerpt
A prolonged run forced the bank to close two months after the loan was made.
Source
newspapers
3. February 1, 1933* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed following the prolonged run and inability to cover deposits; operations were suspended and deposit liabilities assumed by another bank.
Newspaper Excerpt
A prolonged run forced the bank to close two months after the loan was made.
Source
newspapers
4. November 20, 1934 Other
Newspaper Excerpt
The RFC filed suit ... 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.
Source
newspapers
5. November 21, 1934 Receivership
Newspaper Excerpt
Circuit Judge ... appointed William L. O'Connell of Chicago receiver for the Central Republic Trust company.
Source
newspapers

Newspaper Articles (10)
1. November 20, 1934 The Independent Richmond, CA
Article from The Independent, November 20, 1934

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Article Text

U. S. SUES TO SERA PROJECT RECOVER LOAN APPROVED TO DAWES BANK CHICAGO. Nov 20 of the Central Republic Trust company, headed by Former Vice President Charles G Dawes tothe prospect of having to day faced $14,000,000 from their own dig up pockets to pay a part of $60,476,437 due the Reconstruction Finance Corporation The RFC filed suit in federal district court late 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. BALANCE OF LOAN The sum due the federal loan agency is the unpaid balance of the famous $80,000,000 loan negotiated by General Dawes in 1932 for the Central Republic Bank & Trust company of which he was chair man 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 and Trust company 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 company, which for two years has been liquidating the bank's semi-frozen assets and paying debts TO LIQUIDATE COMPANY 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 said, while the RFC debt was left to the The loan has been in default since SAN FRANCISCO new proved for in Contra Costa county report from Roy W Pilling assistant administrator The official form gives the following brief description "Construe tion of concrete retaining wall. road Pinole Fifteen persons be employed Because of the stagger system of labor employed on SERA projects necessitated by having the workers earn their budgetary deficiencies total of 45 workers can be absorbed on the project R. R. Arnold will supervise the work which Supervisor James N. Long is sponsoring Persons formerly on relief or in need of relief will earn their full budgetary requirements on this project. A sum of $1375 has been appropriated for work relief labor Most coats and suits in new Paris collections are belted December 24. 1932 It was made on a temporary basis purposely to give the RFC power to guard its At the time the loan was made Dawes declined 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. the proposed SERA project to install curbs along various El Cerrito streets with property owners purchasing the material Additional reports will be made at next Monday's meeting at ter conference with City Engineer Harry D. Chapman.

2. November 20, 1934 The Oregon Daily Journal Portland, OR
Article from The Oregon Daily Journal, November 20, 1934

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Article Text

Bankers Face Federal Suit of the Central Republic Trust company, 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 part of $60,476,437 due the Reconstruction Finance corporation. The RFC filed suit in federal district court late yesterday, asking of receiver to collect the $14,000,000. equal to the trust total under the law providing double liability stockholders. The sum due the federal loan agency the balance of the famous $80,000,000 loan negotiated by General Dawes in 1932 for the Central Republic Bank & Trust company. of which he was chairman. shortly after he retired as head of the RFC A prolonged run forced the bank to close months after the loan was made. Deposit liabilities were assumed by the City National Bank & Trust company. the Central Republic paying 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 transferred to the Central Republic Trust company, which for two years has liquidating the bank's semi-frozen assets and paying debts. The RFC suit charges that State Auditor Barrett to take over the trust company for liquida. tion under state Other liabilities have for the most part been paid off. the suit said, while the RFC debt was left the last. of The loan has been default since December 24, 1932. It was made on temporary basis purposely to give the RFC power to guard its funds.

3. November 20, 1934 The Merrill Daily Herald Merrill, WI
Article from The Merrill Daily Herald, November 20, 1934

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Article Text

RFC Court Action Asks 60 Million From Dawes Bank Stockholders Face Prospect Of Having to Dig Into Their Own Pockets to Pay Part of Loan CHICAGO, Nov. 20 (UP) Stockholders of the Central Republic Trust company, 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 part of $60,476,437 due the Reconstruction Finance Corporation. The RFC filed suit in federal district court late yesterday, asking appointment of a receiver to collect the $14,000,000, equal to the trust company's total capitalization, under the law providing holders. double liability for bank stockThe sum due the Federal Loan Agency is the unpaid balance of the famous $80,000.00 loan nego tiated by General Dawes in 1932 for the Central Republic Bank & Trust company, of which he was chairman shortly after line 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 and Trust company, 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 company, which for two years has been liquidating the bank's semi-frozen assets and paying debts. 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 said. while the RFC debt was left to the last. The loan has been in default since December 24, 1932. It was made on a temporary basis purposedly 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.

4. November 20, 1934 Green Bay Press-Gazette Green Bay, WI
Article from Green Bay Press-Gazette, November 20, 1934

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Article Text

SUIT FILED BY RFC AGAINST CHICAGO BANK Stockholders Face Prospect of Having to Pay $14,000,000. CHICAGO of the Central Republic Trust company. headed by former Vice President Charles G. Dawes today faced the prospect of having to up 000 from their own pockets to pay part 476,437 due the Reconstruction Finance corporation The RFC filed suit in Federal district court late 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 Unpaid Balance The sum due federal loan agency is the unpaid balance of the famous 000 000 loan negotiated by General Dawes in 1932 for the Central Republic Bank and Trust company which he was chairman shortly after he retired head of the RFC A prolonged run forced the bank to close months after the loan was made. liabilities were assumed by the City National Bank and Trust the Central Republic paying over out of the RFC loan an amount equal to the deposits. Dawes now heads the City National. Other and assets of the failed were transferred the Central Republic Trust company, which for two years has been liquidating the bank's assets and paying debts. The RFC suit stated that State Auditor Barrett planned to take over the trust company for liquidation under state receiver Other liabilities have for the most part been paid off, the suit said. while the RFC debt was left to the last. Loan In Default The loan has been in default since Dec. 24, 1932. It was made on temporary 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 emergency of depositors' run and said he would close the bank if the RFC refused enough cash cover deposits fully Other Chicago banks, fearing the effect of major bank failure, interceded to carry his point. nature of holding companies as now constituted and the necessity of govThe trade commission's report on United Corporation, holding minority interests in large group of other utility holding companies. was prepared while Healy was still directing the study This report found that the United group 27 per cent of the kilowatt-ho power output of the nation: 25 per cent of the installed generating capacity, and 30 per cent of the hydro-electric capacity Declaring such group may have influence on economic progress over vast areas, the investigators said: To Prevent Its Abuse "Highly intelligent abilities must be coordinated with evenhanded justice when such power is exercised over the general public Human history strongly implies that qualified representatives of the public must supervise such power to prevent its abuse.' Other examples which the commission's record includes are Cities Service company, described as representing billion dollar empire controlled by Henry Doherty with an investment of only Electric Bond and Share, and Associated Gas and The effect of the three-point plan would be to limit the influence of holding concerns to so-called economic areas. The plan also would aim to prevent holding companies from charging "excessive management fees, and the "pyramiding" of security structure. When tobacco was first brought from the Old World to the one, it was strongly recommended as curative for head colds

5. November 20, 1934 Imperial Valley Press El Centro, CA
Article from Imperial Valley Press, November 20, 1934

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Article Text

DAWES' BANK TO FACE SUIT ON RFC LOAN Echo Of Famous $80,000,000 Transaction Bobs Up In Federal Courts. CHICAGO, Nov. 20. (U.P.)-Stockholders of the Central Republic Trust company, 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 late 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. The sum due the federal loan agency is the unpaid balance of the famous $80,000,000 loan negotiated by General 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 and Trust Co., the Central Republic paying over out of the RFC loan an amount equal to the deposits. Dawes heads the City National. Other liabilities and assets of the failed bank were transferred to the Central Republic Trust company, which for twc years has been liquidating the bank's semifrozen assets and paying debts. 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 said, while the RFC debt was left to the last. The loan has been in default since December 24, 1932. It was made on a temporary basis purposely 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.

6. November 20, 1934 Lincoln Journal Star Lincoln, NE
Article from Lincoln Journal Star, November 20, 1934

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Article Text

SUES DAWES STOCKHOLDERS RFC Wants Payment of $14,000,000 Loan. CHICAGO. (UP). Stockholders of the Central Republic Trust company, headed by Charles Dawes, face the prospect of havdig up $14,000,000 from own pockets to pay part of ReconstrucFinance corporation. The RFC filed suit in federal district court ceiver the $14,000,000, equal to company's tal under the law liability for bank The sum due the federal loan agency is unpaid balance loan negotiated by General Dawes in for the Central Republic Bank Trust company, which he chairman, shortly after he retired head the RFC. prolonged run forced the bank to close two months after the loan was made.

7. November 20, 1934 The Columbus Telegram Columbus, NE
Article from The Columbus Telegram, November 20, 1934

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Article Text

Chicago Nov. the Central Republic Trust mental headed by former Vice Presagainst ident Charles today faced prospect of having to dig $14,000,000 from their pockets to part due the Finance corporation. gangland. The RFC filed suit in federal district court late yesterday, askappointment receiver to could collect the equal the trust company's total capitalization, under law providing and double liability for bank thereafter. The sum due the federal loan Hoover agency the unpaid balance the famous $80,000,000 loan negoWilson tiated by General Dawes 1932 on their the Central Republic Bank Trust company, of which he was chairman, shortly after he retired head the RFC. New prolonged run forced the bank ernment close two months after the loan Richard made.

8. November 20, 1934 The Hanford Sentinel Hanford, CA
Article from The Hanford Sentinel, November 20, 1934

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Article Text

14 SUIT AGAINST DAWES BANKERS Chicago, (LP) holders the Central Republic Trust company 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 part of due the Reconstruction Finance Corporation. The RFC filed suit in federal district court late yesterday asking appointment of receiver to collect the equal to the trust company's total capitalization, under the law providing double liability for bank stockholders The sum due the federal loan agency is the unpaid balance of the famous $80,000,000 loan negotiated by General Dawes in 1932 for the Central Republic Bank & Trust of which he was chairman, shortly after he retired as head of the RFC. Bank Forced to Close A prolonged run forced the bank to close two months after the loan was made. Deposit liabilities were assumed by the City National Bank and Trust company, the Central Republic paying over out of the RFC (Continued on page three

9. November 21, 1934 The Kokomo Tribune Kokomo, IN
Article from The Kokomo Tribune, November 21, 1934

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Article Text

COAL CODE FINDINGS FOR HOWARD COUNTY Under Araticle V-4 D Code of Fair Competition for the Retail Solid Fuel Industry, Administrator on November 7. 1934, modified cost findings established by Divisional Code Authority No. 24 on July 24, 1934, to read as follows: Howard County. Anthracite Bituminous Domestic $2.00 $1.85 Steam. $1.40 Relief Coal $1.75 Above costs are for cash on delivery. Above costs are for curb delivery. Service Charges. Deliveries in less than four ton lots-add 50c for each load delivcred. Carrying into bins in bags-add 50c per ton. Trimming in bins-add 15c per ton. For credit on domestic salesadd 25c per ton. For credit on steam sales-add 15c per ton. Dated November 19, 1934. Approved IRA A. MINNICK, Administration Member. Divisional Code Authority No. 24, Retail Solld Fuel Industry By C. A. HOWE. The Crown Point cemetery board held a meeting at the office in the cemetery Tuesday evening for the purpose of reorganization. Officers named were: President, Frank O. Fawcett; treasurer, Charles Jinkerson: secretary, will Brown. Carl Showalter, son of the Inte E. J. Showalter, whose recent death caused a vacancy, was chosen to succeed his father as superintendent of the cemetery. The elder Mr. Showalter sreved in the capacity of superintendent for many years. Dawes Bank Receiver Chicago, Nov. 21-(/P)-Circuit Judge John Prystalski today appointed William L. O'Connell of Chicago receiver for the Central Republic Trust company.

10. November 21, 1934 Abilene Daily Reporter Abilene, TX
Article from Abilene Daily Reporter, November 21, 1934

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Article Text

NAME BANK RECEIVER Judge John today appointed William O'Connell of Chicago receiver for the Central Republic Trust company