4322. City Savings Bank (Chicago, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
February 1, 1877*
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
1df1cd18

Response Measures

None

Description

Articles describe an initial suspension in February 1877, a temporary resuscitation by A. L. Amberg and Capt. Ross, and a final closing/ failure in August 1877 with a receiver later handling the estate (Sept. 1877). No explicit depositor run is reported; closure appears tied to interference with assets connected to the Protection Life-Insurance Company and insolvency. Bank type not clearly stated in articles.

Events (4)

1. February 1, 1877* Suspension
Cause Details
Initial suspension in February 1877 related to the bank's weakness and entanglement with Protection Life-Insurance Company accounts; described as a suspension (no run mentioned).
Newspaper Excerpt
Last February the concern suspended, but was resuscitated by A. L. Amberg and Capt. Ross
Source
newspapers
2. February 19, 1877 Other
Newspaper Excerpt
The City Savings Bank has closed its doors. Its deposits were about $40,000. The examiner ... says it will pay partly if not quite dollar for dollar.
Source
newspapers
3. August 25, 1877 Suspension
Cause Details
Final closing attributed to interference with the bank's assets by the Receiver of the Protection Life-Insurance Company; bank described as weak and insolvent.
Newspaper Excerpt
The City Savings Bank ... closed its doors yesterday, owing to interference with its assets the previous day by the Receiver of the Protection Life-Insurance Company.
Source
newspapers
4. September 21, 1877 Receivership
Newspaper Excerpt
The officers of the defunct City Savings Bank ... handed Mr. George W. Spofford, the Receiver of the Institution, the following statement concerning its liabilities and assets: Liabilities $10,844.28 Assets 41,244.35
Source
newspapers

Newspaper Articles (7)

Article from The Wheeling Daily Register, February 20, 1877

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Article Text

Combination or Distillers. CHICAGO, February 19.-A combination of the distilleries of the whole country, embracing nearly every important w tablishment in the United States, has been formed for the purpose of self-protection and pooling their earnings Their plan is to deposit ten cents for each gallon of taxable spirit that is made and to divide the sum thus accruing semi-monthly among all distileries, in proportion to the quantity of their several distilleries It is immaterial whether any still is in operation or not, the pro. prietor receives his proportion of this deposit the same as though he was running. It is expected that in this way the market price of whisky will be raised to a figure at which money could be made. The smaller distillers will be glad to form such an alliance, as at the present rates they are actually losing money, and the larger distilleries keep prices down below their lowest rates. The City Savings Bank has closed its doors. Its deposits were about $40,000. The examiner, in behalf of the creditors, who went through the papers and books this afternoon, says it will pay partly if not quite dollar for dollar.


Article from The Wheeling Daily Intelligencer, February 20, 1877

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B ADDITIONAL TELEGRAPH, Distillery Combination. CHICAGO, February 19.-A combina. tion of the distillers of the entire country, embracing nearly every important establishment in the United States, has been formed for the purpose of self protection and pooling their earnings. Their plan is to deposit ten cents for each gal. lon of taxable spirits that is made, and to divide the sum thus accruing semi-monthly among all distillers in proportion to the capacity of their several distilleries. It is immaterial whether any still is in op. eration or not; the proprietor receives his proportion of this deposit the same as though he was running. It is expected that in this way the market price of whisky will be raised to a figure at which money could be made. The smaller distillers will be glad to form such an alliance, as at the present rate they are actually losing money and the larger distillers keep prices down be. low their lowest rates. CLOSED ITS DOORS. The City Savings Bank has closed its doors. Its deposits were about $40,000. The examiner in behalf of the creditors who went through the papers and books this afternoon, says it will pay nearly if not quite dollar for dollar.


Article from The Daily Gazette, February 21, 1877

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ANOTHER BANK FAILURE The City Savings Bank, of Chicago, deposits about $40,000, closed its doors. The examiner in behalf of the creditore, who weal through the papers and books, says it will pay nearly, if not quite, dollar for dollar. AND STILL ANOTHER. Phoenix Savings, Loan and Trust Bank of Bloomington, Ill., owned by Corydon Weed, one of the largest money lenders in the West, operating with capital from Eastern cities has suspended. Mr. Weed says he has paid his commercial and savings deposits, and that all his bank liabilities are secured but a few thousand. His loans foot up $8,000,000, all indorsed by him, and principally secured by liens on available lands. His embar. rassment 18 caused by shrinkage in land values.


Article from Chicago Daily Tribune, August 26, 1877

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THE CITY SAVINGS BANK. SUSPENSION OF A WEAK AFFAIR. The City Savings Bank, corner of Halsted and Harrison streets, closed its doors yesterday, owing to interference with its assets the previous day by the Receiver of the Protection Life-Insurance Company. The City Savings Bank formerly ran two institutions.-the one above mentioned, and an office corner of Fifth avenue and Washington street. Its history has been one of serious ups and downs, and from what a TRIBUNE reporter learned yesterday the concern has never proved very profitable for those who invested their money in its stock, When Gen. John H. Hammond and Obadiah Jackson took hold of it the latter put in his fingers and experience to Gen. Hammond's $20,000. Capt. Ross, the Cashier, likewise put in $20,000. Gen. Hammond knew now to fight on the frontier, build railroads, and other like things, but didn't know how to run a bank. Last February the concern suspended, but was rescusitated by A. L. Amberg and Capt. Ross, and the office corner of Fifth avenue and Washington street closed Mr. Horton, of Messrs. Hoyne, Horton & Hoyue, is the attorney for the bank. Mr. A. L. Amberg is the present President, and Capt. Ross the Cashier. These gentlemen were all sought out by a TRIBUNETREPORTER vesterday, and Messrs. Amberg and Ross invited him to look over the books of the bank and its assets and liabilities. They allege," said Mr. Amberg, "that we have made money out of this bank, as officers. I tell you, sir, it is not so. I was merely in charge here when THE BANK FAILED, and I saved Its creditors, assisted by Capt. Ross. I have sunk $5,000 and three years' services, and Capt. Ross has sunk $20,000 in good, clean cash, which be brought here to invest, and he has invested it for good." From all that could be learned from "the three gentlemen named above (and they all seemed willing to give information, and their stories agreed), the City Savings Bank did the collecting of assessments for the Protection Life-Insurance Company, and also carried some of its


Article from Chicago Daily Tribune, September 21, 1877

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THE CITY SAVINGS. LOOKS WELL ON PAPER. The officers of the defunct City Savings Bank, located on the corner of Halsted and Harrison streets, yesterday morning handed Mr. George W. Spofford, the Receiver of the Institution, the following statement concerning its liabilities and assets: Liabilities $10,844.28 Assets 41,244.35 Mr. Spofford has been looking over the vouchers, and discovers several discrepancies. The Protection Life-Insurance Company owes the concern $24,000, and several Individuals, whose standing is anything but good, owe It sums ranging from $1,000 to $5,000. There is a total of individual balances shown by the statement of the officers of $8,262.70. Mr. Spofford will Investigate every Item. and collect every penny that he possibly can for the benefit of the depositors.


Article from Chicago Daily Tribune, September 22, 1877

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# THE CITY. ITS LITIGATION WITH THE PROTEΟΤΙΟΝ. The announcement in yesterday's TRIBUN- the statement being made to a reporter by Mr. George W. Spafford, Receiver of the defunct City Savings Bank-that the Protection Life owed the City Savings Institution $34,000 was rather Indefinite, so an effort was made to learn more about the indebtedness. It seems that when the City Bank was in trouble last February, Louis Amberg found that the Protection had a balance of $8,000 to its credit, and therefore determined to see if he could not keep the concern on its feet. Accordingly he went to the officers of the Protection, and won them over to the idea of possessing a bank in connection with their other business. They (who "they" represents could not be learned) con-luded to buy 340 shares of the stock at $100 a share, making $24,000. The certificates. It is said, were issued to Martin Ryan, trustee, he being the Actuary of the Insurance company. This stock was never paid for. When the City Savings suspended, the Protection had on deposit about $5,000. This amount Mr. Amberg put among the assets, looking upon it as an offset for eighty shares of stock, and claiming that the Protection still owed the bank $10,000. Mr. Cook, the Receiver of the Protection, doesn't look at the matter in the same way. He asserts that that $8,000 is a part of the assets of the Protection, and wants


Article from Chicago Daily Tribune, November 8, 1877

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deceased any time after ne was and qualified, and during the term for which be 1938 elected. So that no such effect follows from the action of the Common Council upon the Approprintion hill for 1875 as claimed by counsel for defendant. The only other question In the case Is whether or not the office of Police Commissioner WAR abolished by the mere act of the city becoming Incorporated In May. 1875, under the General law. Up. on that question I feel bonnd by the rulings. and they are my own views also, of the Supreme Court in the case of Sherldan (decessed) VM. Colvin and the City of Chicago, 7H III.. 237. In that CAFE the question was Involved. Its decision was necessary. and. after full argument and consideration, the Court held that ench relacorporation of the city under the General law did not, 1p*o facto, abolish the office of Police Commissioners. lint the declaion is placed upon the ground that he provisions of the General law authorized the City Council to take the powers and duties given by the former charter of the city and conferred on the Board of Police CommisP1 incre from that body, and hertow them upon a City Marshal. so far as the City of Chicago WOR concerned, but the Court dented the power of the City Council to abolish the office In toto. This was on the ground that the Police Commissioners were something more than mere city officers, but were officers having powers extending beyond the territorial limits of the city. They were elected by the voters of the county, and their powers extended throughout the county. They were. therefore. county officers. So far as their powers extended beyond the territorial limits of the city, they remained unallected I by any ordinance the City Council could pare. am of the opinion that the deceased was In legal contemplation such officer until his term expired by lapse of time, the Brat Monday of December. 1875. and that the Issuer should be and they are found In favor of plaintiffs. and their damages are ******* cd at $1,750. for which judgment will be entered. HEALTH COMMISSIONER HOOK. The same reasoning WOR followed in the case of Moses Hook, Health Commissioner, against the city, to recover the amount of his salary from May 1, 1875, to Feb. 10, 1876. He was appointed to fill a vacaney In an unexpired term ending April, 1877. His sulary was fixed at $500. but the Common Council In the Appropristion bill of 1875 left the amount unexpressed. Judge MeAllister held the same reasoning would apply as to the Sheridan case. and entered up judginent III Hook's favor for $350. THE FIDELITY SAVINGS BANK. Dr. Turpin, Receiver of the Fidefity Savings Bank, had his usual number of favore to ask of the Court yesterday. He holds five notes of N. 8. Bouton for $2,000 each, and one for $3,000, secured by trust-deed on the W. ½ of Lot 14 in the Assessor's Division of the N. 1/2 of the S. E. 11 of Seca. 20, 39, 14. Bouton offers to convey thirteen-ffteenths of this property to the Recelver In full settlement of these notes. The notes are Indorsed b the Cook County National Bank, and as Mr. Bouton is Insolvent the Rccelver thought be better accept the offer and save expense. There is another Incumbrance for $2,000 on the land which, cm be paid off with the remaining two-fifteenths of the property. The Receiver was directed to close with the offer. The Receiver also presensed a bill of Mr. Dexter of $250 on account of his services and three days' time spent in shutting the bank up, and mildly suggested that the bank was liable for the amount, though it could not be charged to Receiver's expenses, and that it ought to be paid. An order was made that this should be paid out of the bank's assets. The Receiver then presented a similar hill of C. A. Oregory for exactly the same amount. This claim, to say the least. is extortionate. Mr. Gregory's client's claim IS for less than $100. The Receiver was not appointed under this bill. Mr. Gregory only talked about lifteen minutes, and his bill might just as well have been dismissed for all the good 11 did. It was filed. as Mr. Gregory said. as " safeguard in case the Johnson bill of Mr. Dexter was held not to be sufficient. As n matter of fact, it was held to be sufficient. and no action was taken on Mr. Gregory's bill. It will cost more than 10 per cent to close up the estate at this for thereare 098 more lawyers to he heard from. Mr. Dexter's services were probably worth the amount, but it does not seem that Mr. Gregory rendered a quid pro quo for his arguments. THE PROTECTION LIFE-INSURANCE COMPANY. In the Protection Life-Insurance Company case the Receiver filed a petition setting out that among the assets of the Company are two certificates of stock of the First National Bank of Carlinville, one. No. 1, for ten shares issued to A. W. Edwards, the other, No. 45. for ninety shares issued to Elizabeth R. Edwards. This stock had been placed with the City Savings Bank or Its President, A. L. Ainberg, us collateral to secure drafts to the amount of $0,570.23 drawn by Amberg on the Insurance Company. All but one of these drafts have been paid. This remaining drait for $3,500 is probably held by the Will County National Bank of Jollet. The City Savings bank in insolvent, and its officers or Ambeig are attempting to make away with the stock. An order was therefore entered, as asked, restraining Amberg or any other persons having this stock from disposing of it, and directing them to surrender it to the Clerk of the Court, subject to any rights they might have. THE CHICAGO LIFE. In the case of the Chicago Life-Insurance Company, the petition of J. K. Barry to have certain land turned over to him was granted by Judge Williams. It appears that Barry and Clapp, the Secretary of the Company, loaned out money together, and subsequently were compelled to buy In the property mortgaged to save their claims. Barry then filed a petition to have certain land turned over to him, on the ground that he had furnished the funds with which It had been bought, and his petition was granted. AN EX-CONSUL IN TROUBLE. Mrs. Mary Saltow and her son Gottlleb Neupert filed a bill yesterday against Henry Claussentus, formerly German Consul here, accusing him of somecrooked transactions. Mrs. Saltow, nee Neupert, savs that In December, 1872, she was possessed of some securities and a little inoney of the value of about $2,000. This she was desirous of investing for the benefit of her boy Gottlicb. She asked advice of Claussenius about It, and he recommended that she should convey all her property by trust-deed to the German Consul here. A deed was accordingly prepared, but it conveyed the securities to Claussenlus personally and not as German Consul. IIo has used the money and the proceeds of the trust-deed and notes in his own private banking business without giving any security, and in fraud of his agreement. The complainants, therefore, ask that Claussenius may be removed from his position as trustee.