4266. Central Trust Company (Chicago, IL)

Bank Information

Episode Type
Run Only
Bank Type
trust company
Start Date
October 11, 1921
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
5a125943

Response Measures

No run

Other: Central Trust Company (Chicago) is repeatedly named as receiver for several failed firms (Co-operative Society of America, F. D. Dier & Co., Raymond J. Bischoff, Western Land Operators, etc.). No run or suspension of Central Trust itself is described in the articles.

Description

Central Trust Company (Chicago) appears throughout these articles as acting receiver for several failed firms (Co-operative Society of America, Bischoff, F. D. Dier & Co., etc.). There is no article saying Central Trust itself suspended or was put into receivership; however, one article (Feb 13, 1922) reports hundreds of panic-stricken investors storming the Central Trust Company (which was acting as receiver for Bischoff) and police surrounding/dispersing the crowd. That describes depositor/creditor agitation at the bank but not a suspension or permanent closure. Thus classified as run_only (a run/riot/agitation occurred while the bank remained open).

Events (6)
1. October 11, 1921 Other
Newspaper Excerpt
Central Trust Company, which has been appointed receiver, by announcing the company is not bankrupt; He said $2,600,000 of the company funds is in the possession of his wifethe authorized treasurer. Parker announced his wife would arrive today and clear up matters.
Source
newspapers
2. December 17, 1921 Other
Newspaper Excerpt
The Central Trust company of Chicago, appointed receiver by Judge Evan A. Evans months ago, reported that in addition to the $11,887,965 the society is indebted to the Great Western Securities company ... Receivers reported they found only $16 of the $31,387,965 paid into the organization.
Source
newspapers
3. February 8, 1922 Other
Newspaper Excerpt
The Central Trust Company was appointed to-day receiver for the Chicago branch of F. D. Dier & Co., brokers, by Federal Judge K. M. Landis.
Source
newspapers
4. February 12, 1922 Other
Newspaper Excerpt
The Central Trust company was yesterday appointed receiver for Bischoff.
Source
newspapers
5. February 13, 1922 Run
Cause Details
Creditors/investors of Raymond J. Bischoff (a Ponzi-like swindler) stormed the Central Trust Company while it was acting as receiver for Bischoff's affairs.
Measures
Bank grounds were surrounded by police; crowd was dispersed. (No bank suspension noted.)
Newspaper Excerpt
Hundreds of panic-stricken investors stormed the Central Trust Company, receivers for Bischoff's bankrupt affairs, and were not dispersed until the bank was surrounded by police.
Source
newspapers
6. April 17, 1922 Other
Newspaper Excerpt
The firm of O. T. Anderson & Co., a board of trade membership, is holding in the hands of a receiver, the Central Trust company of Illinois.
Source
newspapers

Newspaper Articles (11)
1. October 11, 1921 Indiana Daily Times Indianapolis, IN
Article from Indiana Daily Times, October 11, 1921

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Article Text

CLAIMS WIFE HAS 000 FUND $2, Head of Cooperatice Society Says It's Solvent. CHICAGO, Oct. 11.-Federal authorities today were awaiting Mrs. Harrison Parker, walking treasurer of the Cooperative Society of America. Parker, sponsor of the organization which owns several wholesale groceries. a life insurance company and other business ventures and has 80,000 stockholders derided the Central Trust Company, which has been appointed receiver, by announcing the company is not bankrupt, He said $2,600,000 of the company funds is in the possession of his wife-the authorized treasurer. Parker announced his wife would arrive today and clear up matters.

2. October 19, 1921 Manchester Democrat Manchester, IA
Article from Manchester Democrat, October 19, 1921

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U. S. WILL PROBE 'CO-OP' CONCERN Chicago District Attorney Says Federal Investigation May Be Ordered. GRAND JURY TO TAKE CASE Harrison M. Parker, Head of Co-Operative Society of America and Other Firms, Tries to Explain Figures to Receiver. Chicago, Oct. 19.-Immediate federal investigation of the affairs of the Co-operative Society of America, the Great Western Securities corporation and other concern affiliated with the promotions of Harrison M. Parker is to be made at once. This was announced by conference District Attorney with Federal Clyne following a Judge Evans. The result may justify grand jury action, Mr. Clyne said. Meanwhile in his offices in the Peoples Life Insurance building, Parker was attempting to explain a further entanglement between his figures and his previous statements. As Julius Moses of counsel for the Central Trust company, receiver, progressed, at least one erasure in a receipt for securities belonging to the Co-operative group was admitted, with the possibility of others. The only explanation offered was the desire to keep the property out of the hands of possible wreckers." Finds It Hard to Understand. "You know, Mr. Parker, it is hard for us to understand what is true and what is not true, because of the difference between your statements before Judge Evans on Saturday and those you made to us prior to that time," said Mr. Moses. "I know it," briefly responded Parker. The erasure came out in a further examination as to the securities held by Charles C. Higgins, vice president of the Great Western and cousin of Mrs. Edith Stubbs Parker. These supposedly were returned by mail last week and turned over to the receiver by Parker. A comparison of the securities returned and those receipted for showed some discrepancies, and Attorney Moses wanted to know why. For instance, Higgins' receipt dated August 20, 1921, acknowledged, among other things, 2,525 shares of Randolph building corporation stock, the company that owns the People's Life building. But, according to Parker's testimony today, à certificate for 310 shares of this issue was in Chicago all the time, and was found in a book of the Westerri Finance corporation. Another Peculiar Case. Again in the case of the City State bank stock-another Parker subsidiary -1,010 shares were returned by Higgins from his mysterious retreat, whereas some 121 shares never had left the Chicago offices of the Great Western company. Parker considered this largely accf dental, although he admitted that in this case, as in his previous testimony, he ad & covered up" to protect 5.0% visaso credit of his concerns. A bewfidering array of statistics of the Co-operative, Great Western and other companies was presented by Parker, some ;representing statements by individuals, others of partial relations of one company to another. This led Mr. Moses to demand of Charles Honaker, auditor of the Parker companies, a statement disregarding the different arrangements of the two main companies, but showing the specific amounts of beneficial certificates sold, supposedly about $28,000, 000: live. accounts which are being paid, said to be $11,000,000 the 20 per cent commission received by the Great Western as brokerage, perhaps $5,000, 000, and an "unaccounted for balance" of something like $1,100,000.

3. December 18, 1921 The Evening Herald Albuquerque, NM
Article from The Evening Herald, December 18, 1921

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Article Text

Receivers Find Only $16 of $11,337,965 Put Into a Firm CHICAGO, Dec. 17.-Further inquiry into the affairs of Harrison Parker started tonight following the report of receivers of the Co-operative Society of America that they found only $16 of the $31,387,965 paid into the organization by 90,000 persons. The report asserts that many stateinents made by Parker during the 10cervership require "much further investigation to determine their truth." The Central Trust company of Chimgo, appointed receiver by Judge Evan A. Evans months ago, reported that in addition to the $11,887,965. the society is indebted to the Great Western Securities company. its finanetal agent, in the sum of $1,768,478. The securities company is owned by Mrs. Emith 8. Parker. wife of the founder of the society. and her kinsman, Charles G. Higgins.

4. December 31, 1921 The Rock Island Argus and Daily Union Rock Island, IL
Article from The Rock Island Argus and Daily Union, December 31, 1921

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WAGNER BRANCH WILL SUSPEND Rock Island Office of Bankrupt Firm Closing All Open Trades -No Quotations Given. Following the suspension of E. W. Wagner & Co., stock, bond and commission brokers, it is announced that the branch office in Rock Island will close all open trades today or Tuesday, and has ceased to furnish market quotations. The announcement involves the closing of the Rock Island office after next Tuesday, as the business of the firm has been turned over to the Central Trust company, receivers for the Chicago district creditors. In New York, J. S. Shepard, Jr., was named receiver. The petition of New York creditors places the assets at $5,000.00, and the liabilities at $7,250,000. One thousand employes over the country will lose their positions as the result of the collapse. The organization maintained 33 offices in New York, Chicago and other cities. The business was conducted as a partnership consisting of Emil W. Wagner, Ernest Tietjens, E A. Johnson and F. W. Donaldson, all of Chicago. Mr. Wagner claims that he expects to pay 75 cents on the dollar. The crash is blamed upon the recent "bucket" inquiry on which reports were made by the governors of the New York stock exchange.

5. February 9, 1922 The New York Herald New York, NY
Article from The New York Herald, February 9, 1922

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CHICAGO, Feb. 8.-The Central Trust Company was appointed to-day receiver for the Chicago branch of F. D. Dier & Co., brokers, by Federal Judge K. M. Landis, following the filing of an ancillary petition in bankruptcy in favor of Samuel C. Redman of Washington, D. C.:, Reuben Lilienfeld and Charles Hansen of New York, creditors of the firm.

6. February 13, 1922 The New York Herald New York, NY
Article from The New York Herald, February 13, 1922

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Article Text

CHICAGO. Feb. 12.-Raymond J. Bischoff, taken into custody yesterday after involuntary proceedings in bankruptcy had been instituted against him, admitted-to-day that he owes about $4. 500,000, representing the savings of 6,00€ Chicagoans, mostly foreigners. Less than $1,000,000 worth of oil and gas stock of doubtful value is available to meet the obligations, it was announced. Bischoff. whose financial operations apparently rival those of Charles Ponzi, the Boston "wizard," expressed relief when taken into custody. He had received threats from those he is alleged to have fleeced, he said, and was afraid to venture into the south and west side districts, where most of his victims live. The Central Trust Company has been appointed receiver for Bischoff. Felix Streyckmans, attorney for the creditors, said he believed Bischoff's liabilities will run near $7,000,000 and that the receiver will be lucky to realize half the face value of the stock held by him. MARDE GRAS. NEW ORLEANS. THIS YEAR, Feb. 24th-28th; Inquire SOUTH-

7. February 13, 1922 The Union Daily Times Union, SC
Article from The Union Daily Times, February 13, 1922

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PONZI'S RIVAL IS ON THE JOB Chicago, Feb. 12.-Raymond J Bischoff, taken into custody yester day after involuntary proceedings in bankruptcy had been instituted against him by creditors, today admitted that he owes about $4,500,000, representing the savings of 6,000 Chicagoans, mostly foreigners. Less than $1,000,000 worth of oil and gas stock of doubtful value is available to meet the obligations, it was announced. Bischoff, whose financial operations apparently rival those of Charles Ponzi, the Boston "wizard," expressed relief when taken into custody by deputy marshals. He had received threats from those he is alleged to have fleeced, he said, and was afraid to venture into the southside and westside districts, where most of his victims live. The Central Trust company was yesterday appointed receiver for Bischoff. Gelix Streyckmans, attorney for the creditors, said he believed Bischoff's liabilities will run near $7,000,000 and that the receiver will be lucky to realize half of the face value of the stock held by him. Bischoff is 25 years old. By paying large returns on money borrowed in a few particular instances, he gained a reputation as a financial wizard among the people with whom he dealt, according to federal agents. Profits of 50 per cent on short time loans were said to be common. According to Mr. Streyckmans, only the creditors that objected to long waits were paid in actual cash. The rest, he said, were content to accept their alleged earnings in more notes. Some of the people sold almost all they owned to give Bischoff money, Mr. Streyckmans said. One man, he said, sold his home for $7,000 and turned over $6,200 to Bischa off. James J. Kelly, attorney for Bischoff, today asserted that his client had violated no law, but has simply lost money by speculation. Creditors may receive ten cents on the dollar, Mr. Kelly said, when Bischoff's holdings are liquidated Federal authorizies intimated there was no basis for prosecution.

8. February 13, 1922 The Pensacola Journal Pensacola, FL
Article from The Pensacola Journal, February 13, 1922

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ANOTHER PONZI IS HELD IN CHICAGO Raymond Bischoff Said to Have Fleeced Foreign Laborers of Over Four Million Dollars. (By The Associated Press) CHICAGO, Feb. 12.-Raymond J. Bischoff, taken into custody yesterday after involuntary proceedings in bankruptcy had been instituted against him by creditors, today admitted that he owes about $4,500,000, representing the savings of 6,000 Chicagoans, mostly foreigners. Less than $1,000,000 worth of oil and gas stock of doubtful value is available to meet the obligations, it was announced. Bischoff, whose financial operations apparently rival those of Charles Ponzi, the Boston "wizard," expressed relief when taken into custody by deputy marshals. He had received threats from those he is alleged to have fleeced, he said, and was afraid to venture into the south and west side districts, where most of his victims live. The Central Trust company was yesterday appointed receiver for Bischoff. Felix Streyckmans, attorney for the creditors, said he believed Bischoff's liabilities will run near $7,000,000 and that the receiver will be lucky to realize half of the face value of the stock held by him. Bischoff is 25 years old. By paying large returns on money borrowed in a few particular instances, he gained a reputation as a financial wizard among the people with whom he dealt, according to federal agents. Profits of 40 per cent on short term loans were said to be common and Bischoff is said to have paid as high as 100 per cent interest. According to Mr. Streyckmans, only the creditors that objected to long waits were paid in actual cash. The rest, he said, were content to accept their alleged earnings in more notes. Some of the people sold almost all they owned to give Bischoff money, Mr. Streyckmans said. One man, he said, sold his home for $7,000 and turned over $6,200. to Bischoff. James J. Kelly, attorney for Bischoff, today asserted that his client had violated no law but has simply lost money by speculation. Creditors may receive 10 cents on the dollar, Mr. Kelly said, when Bischoff's holdings are liquidated. Federal authorities intimated there was no basis for prosecution.

9. February 14, 1922 Richmond Times-Dispatch Richmond, VA
Article from Richmond Times-Dispatch, February 14, 1922

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[By United News.] CHICAGO, Feb. 13.-While Lithuanlang in the stockyards district were burning "sorrow candles" in accordance with an old custom. Judge K. M. Landis In Federal court quizzed relatives of Raymond J. Bischoff, who Is alleged to have lost $4,500,000 of the foreigners' savings a la Ponzi. Landis discovered that Bischoff, who is 25, has eleven safety deposit boxes, three apartment buildings, five motor cars. and various other valuable assets. Bischoff is charged with having recelved millions from ignorant foreigners with promises to pay 60 per cent in dividends in ninety days. All of his real estate, autos, and other property, Landis found, are in the name of the young speculator's relatives. He appealed to Bischoff's mother, Mrs. Frank O. Davis, to give up the apartment building in her name. Calls for Apartment. "Don't you think you should give up your luxurious apartment building-won't your conscience trouble you when the stockyards workers pass it and say, "That's where our money went?'" Landis asked. "But put $5.000 of my own money in it." the mother replied. "What's $5,000 to a clean conscience?" said Landis. "Mrs. Davis, that building is worth $100,000." The woman was obdurate. and the court appealed to her blind husband. "It's legally hers." objected Davis. "Legally hers." stormed the judge. "I'm not talking legal matters. I'm talking square deal. There are plenty of men who should be in the penitentiary who have evaded the law." The court discovered that Bischoff's five automobiles had been "sold" to other relatives and that his deposit boxes were in the names of his. agents. The "boy Ponzi cannot be convicted by the Federal authorities, his attorneys say, because he did not use the mails, and he did not promise certain returns, but told all clients he was gambling. Hundreds of panic-stricken investors stormed the Central Trust Company, receivers for Bischoff's bankrupt affairs, and were not dispersed until the bank was surrounded by police. They later. also' tried to storm the Federal building. and when a newspaper flashlight was mistaken for the report of a bomb several were slightly injured.

10. February 15, 1922 The Rock Island Argus and Daily Union Rock Island, IL
Article from The Rock Island Argus and Daily Union, February 15, 1922

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ILLINUIS IS FINE FIELD FOR FAKERS Bischoff Case Reveals Chicago Is Stock Swindlers' Mecca. Chicago, Feb. 15.-Prompted by the lurid revelations of the operations of the "Ponzi ring" in Chicago, United States Attorney General Daugherty at Washington last "night gave out a statement urging the inauguration of a nation-wide campaign for the enactment of more stringent laws providing heavier sentences for fake stock swindlers who in the last year or two have filched $140,000,000 from the public's purse. Attorney General Daugherty revealed the northern district of Illinois (Chicago) as the most fertile field in the country for the sale of fake stock of all kinds. Swamped With Cases. "The federal government is swamped with these cases," he said. "At present there are 480 stock swindling cases pending in the federal courts, in which 874 persons have been arrested or indicted and in which more than $140,000,000 has been taken from the public. "The largest number of cases pending in any one state is fortytwo in the northern district of Illinois. It would take one judge, working 12 hours a day, a million years to clear up the docket. "The department of justice can only come into these cases through violation of the postal laws, and it is my opinion that the matter is one for prompt and sweeping state action. There should be a national conference of state blue sky commissioners to frame a uniform law carrying heavier penalties for stock swindlers." Search for Harrington, In the meanwhile the outstanding developments in the drive against the "Ponzi ring" here were: The "blue sky" squad from the detective bureau again raided the offices of Leslie Harrington at 20 East Jackson boulevard and swept it bare of records. books. and papers. Two hundred and fifty thousand shares of stock in the United C States Novaculite company and $500 0 worth of government stamps were seized. I Search for Harrington himself f turned to Philadelphia, whither he is believed to have fled. While Judge Joseph B. David was refusing to issue writs of habeas n corpus for the three Harrington S agents already under arrest, J. Yuskenas, 1842 West 26th street, a f fourth Harrington field agent, was e locked up at the detective bureau. e Landis Names Receiver. S Judge Landis appointed the Central Trust company receiver for the S, Western Land Operators' company, t 127 North Dearborn street, said to e be one of Harrington's enterprises b and in connection with which two y men already are in custody. O State's Attorney Crowe assigned Assistant State's Attorney Edward Taylor to investigate both the Harrington and Bischoff cases for violation of the blue sky law. and witnesses will be taken before the grand jury today. Warrants charging confidence game were issued by Judge Prindiville in the South Clark street court against Raymond J. Bischoff, the "stockyards wizard"; Earl G. Geer (Continued on Page Thirteen.)

11. April 18, 1922 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, April 18, 1922

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Chicago Grain By CHARLES D. MICHAELS. Omaha Ree Leased Wire, Chicago, April 17.-Sufficient long wheat came out on an early bulge not only to check the advance, but / temporarily relieve the tight situation ) which has developed in that delivery. After a range of 5 1-44. the close for May wheat was at net losses of 2e. Deferred deliveries were off 1 1-8@ 1-4c. Corn closed easy with a loss of 5-8@3-4c. Oats were 1-4@3-8c lower: rye unchanged. Stop loss orders were uncovered in May wheat early, with an advance to $1.45. prices varying 1-4@1-2e be tween trades, Above $1.44 there was persistent selling by commission houses. While shorts were free buyers throughout the day, the pressure continued and made a good reaction. Buying of May and selling of July Widened the difference to 18 cents at one time. At the last the difference was around 15 3-4c, against 16 1-2@ 17c Saturday. The market was a big broad affair throughout the day. Change in Sentiment. Some change in sentiment was noted the deferred deliveries Longs sold rather in freely on the belief that there in had brea advance enough. No change conditions was noted in the southcrop west. Export demand was slow because Aires of the holiday abroad. Buenos is opened 202% higher. A decrease for expected in grain in ocean passage the week. owing to light world shipments which aggregated around 9,000,000 bushels or nearly 7,000,000 less than the previous week. Early in the day corn and oats were firmer with weat and on continued wet weather over the grain belt. Later they off sharply on profit taking by commission eased houses. There was some investment buying of July oats by houses with country connections Longs in May corn transferred their holdings to the July. of Cash demand was slow with receipts 171 cars and 114 care oats. Houses with seaboard connections were good buyers of rye while the selling was mainly of a local character and for Duluth. No export sales were reported. Pit Notes. leading cash man expressed the view A with present premiums prevailing for that May wheat there would be plenty of wheat in many places where now there he was supposed to be little. Moreover. stated that there would be plenty the of storage room available, ocntrary to view of some traders who were long be May on the theory that there would that room for wheat. It was evident no shorts who threatened to bring wheat here from outside markets were being forced to make good on their threat. More wheat. about 130.000 bushels. was bought after the close Saturday to come here and today it was understood that more wheat had been also at Kansas There City and other Missouri points. was but little export business. The firm of o. T. Anderson & Co., a board of trade membership. is holding in the hands of a receiver, the Central firm's Trust company of Illinois. The business was mostly in stocks and its open untrades on the board were small and important. with no losses sustained. Minneapolis reported cash wheat relatively lower and said that the flour trade could not be worse. Winnipeg reported an active trade there, with the market tight. Cash prices were relatively steady. Des Moines reported a heavy snow there. with farm work further retarded by weather conditions. The semimonthly crop report for crop Illinois says that floods caused some loss in several southwestern counties. About 150.000 bushels more Omaha wheat was sold to come here Saturday. Shipments of wheat and corn from over Sunday by lake were small, here 245.000 and 427,000 bushels respectively. It is unusual to see opening of navigation I shipments as small as this. I New York Cotton. mar.