4323. City State Bank (Chicago, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
October 20, 1929
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
34df929b

Response Measures

Full suspension, Books examined

Other: Officials promised depositors would receive 100 cents on the dollar; later criminal prosecutions of officers followed (1933). Note: many articles describe a 'quiet' or 'virtual' run prior to closure during the October 1929 market sag.

Description

Multiple contemporaneous newspaper reports (early November 1929) state the City State Bank of Chicago experienced a virtual or quiet run during the recent stock-market sag and was closed by State Auditor Oscar Nelson and state bank examiners (closure ordered Saturday, early Nov 1929). The bank was closed by government examiners due to frozen assets on long-term loans; later reporting (1933) treats the bank as defunct and prosecutions occurred. I inferred the closure date as 1929-11-02 (Saturday before Nov. 3, 1929 papers). Run is attributed to the stock market sag (macro financial news) though examiners also found frozen assets; suspension was by government action and resulted in permanent closure.

Events (3)
1. October 20, 1929 Run
Cause
Macro News
Cause Details
Quiet/virtual run that had been in progress for about two weeks, attributed to the recent stock-market sag.
Measures
Bank officials declared depositors will receive 100 cents on the dollar.
Newspaper Excerpt
There had been a virtual run on the bank during the recent sag of the stock market.
Source
newspapers
2. November 2, 1929 Suspension
Cause
Government Action
Cause Details
State Auditor Oscar Nelson ordered closure; examiners cited frozen assets on long-time loans making ready cash unavailable.
Newspaper Excerpt
The City State bank of Chicago ... was closed by state bank examiners last Saturday. ... The bank was closed on orders of State Auditor Oscar Nelson after examiners had announced a frozen condition of a portion of its assets.
Source
newspapers
3. April 27, 1933 Other
Newspaper Excerpt
Five City State Bank officials found guilty ... of receiving deposits while knowing the bank to be (insolvent). ... The defendants were tried on the specific charge of accepting deposits ... on Nov. 10, 1929, the day that the bank closed.
Source
newspapers

Newspaper Articles (6)
1. November 3, 1929 Belvidere Daily Republican Belvidere, IL
Article from Belvidere Daily Republican, November 3, 1929

Click image to open full size in new tab

Article Text

DIXON TRUST AND SAVINGS BANK CLOSED QUIET RUN ON DIXON BANKING INSTITUTION FOLLOWED BY CLOSING OF DOORS BY STATE BANK EXAMINERS FROZEN ASSETS ON LONG TIME LOANS BLAMED. Doors of the Dixon Trust and Savings bank. an institution under the direction of the state. were closed today for, "examination and adjustment. Orders to close were issued on Saturday night by Oscar Nelson. state auditor. State bank examiners are in charge of the audit quiet run on the bank has been in progress since the death of William Albright, cashier. two weeks ago, it was stated. Large accounts have been withdrawn. according to reports. Frozen assets on long time loans made ready cash unavailable and the officers decided to close the doors, it was announced. Close Chicago Bank The City State bank of Chicago of which Cornellus R. Miller, well known to many Belvidere people, is president, was closed by state bank examiners last Saturday. Mr. Miller was former director of public works under Gov, Len Small. The bank was closed on orders of State Auditor Oscar Nelson after examiners had announced a frozen condition of a portion of its assets. Officials of the bank declared that depositors will receive 100 cents on the dollar "The last quarterly statement of the bank as of Oct. showed resources of $4 670.519 and deposits of $3,922,530. The bank was capitalized at $400,000 and had a surplus of $200,000. It was not a member of the Chicago Clearing house asThere had been a virtual run on the bank during the recent sag of the stock market.

2. November 4, 1929 The Daily Chronicle De Kalb, IL
Article from The Daily Chronicle, November 4, 1929

Click image to open full size in new tab

Article Text

Two Banks Are Closed By The State Lately tempt the City State Bank of 'hicago, closed Saturday by State Auditor Oscar Nelson. was un der way today. Seymour Stadman vice-president, said he believed the attempt would be successful. Prospects reopening another Illinois bank which Nelson ordered closed not 80 bright. It was the Dixon Trust & Savings bank at Dixon. had been quiet run on the bank for two weeks. Chronicle Want Ads Get Results

3. November 4, 1929 Decatur Herald Decatur, IL
Article from Decatur Herald, November 4, 1929

Click image to open full size in new tab

Article Text

HOPE TO REORGANIZE TWO ILLINOIS BANKS CLOSED BY AUDITOR Nov attempt to reorganize the City State bank Chicago, closed Saturday by State Auditor under Monday. Seymour Stadman, vicepresident, said he believed the tempt would be successful. Prospects for reopening another Illinois bank which Nelson ordered closed Saturday were not bright was the Dixon Trust and Savings bank at Dixon There had been quiet run on the bank for two weeks KILLED IN CRASH Violet Bump of Lindenwood, was killed here Sunday when the automobile driven by her fiance, Clarence Troy of Rockford, collided with the car Clifford Clark, Chicago

4. November 5, 1929 Herald and Review Decatur, IL
Article from Herald and Review, November 5, 1929

Click image to open full size in new tab

Article Text

TO REORGANIZE TWO ILLINOIS BANKS CLOSED BY AUDITOR (By United CHICAGO, Nov. attempt to reorganize the City State bank Chicago, closed Saturday by State Auditor Oscar Nelson, under way Monday. Seymour Stadman, vicepresident, said he believed the tempt would be successful. Prospects for reopening another Illinois bank which ordered closed Saturday were not bright. the Dixon Trust and Savings bank at Dixon. There had been quiet run on the bank for two weeks.

5. November 8, 1929 Belvidere Daily Republican Belvidere, IL
Article from Belvidere Daily Republican, November 8, 1929

Click image to open full size in new tab

Article Text

QUIET RUN DIXON ING INSTITUTION BY CLOSING OF DOORS BY STATE BANK ERS FROZEN ASSETS ON LONG TIME LOANS Doors of the Dixon Trust bank, institution the direction of the state, closed today for "examination and Orders close issued Saturday night by Oscar state auditor. State bank iners are in charge of the auditquiet bank has the death William weeks was stated. Large accounts been withdrawn. cording reports. Frozen long time made ready cash unavailable and the officers decided the doors. announced. Close Chicago Bank The City State bank of Chicaof which Cornelius Miller, well known many people, president, was closed bank examiners last Mr. Miller was former rector of public works under Gov. Small. The bank closed on orders Auditor Oscar Nelson examiners had announced frozen condition portion assets. Officials of the bank declared that depositors will receive 100 on the dollar. The last statement of the bank Oct. showed of and deposits of The bank capitalized $400,000 and had surplus member day the Chicago Clearing house sociation. There had been virtual the bank during the recent stock market. Behave much indignation. What about hope good sults? concluded only thing injured little possible the runaways of other Howe's Monthly. atives this Chicago and Bounds holds government position Pierre, being registrar the land office in South Dakota. He former Belvidere boy and noted many improvements since his last

6. April 27, 1933 Chicago Tribune Chicago, IL
Article from Chicago Tribune, April 27, 1933

Click image to open full size in new tab

Article Text

FIVE CITY STATE BANK OFFICIALS FOUND GUILTY Stedman and Jarema Face Prison Terms. CRIMINAL COURT. Cameron Moore, robbery. to year to life the penitentiary by Judge Philip L. Sullivan. (Picture on back page.) Seymour 62 years once Socialist candidate for mayor. and four other officials of the defunct City State bank were found guilty yes terday by jury in the court of Judge Francis B. Allegretti on charges of receiving deposits while knowing the bank to be The jurors. who deliberated for al most nine decreed that Sted man and Alexander L. vice of the bank. must serve one to three in the penitentiary and pay fines of $210 each. Fines of $210 without prison terms. were fixed by the jury as the punishment for the other three defendants. They are Morrison H. Castle. William C. Hartray and Edwin G Rellihen. members of the board of directors of the closed bank. Fine Double Amount of Deposit. The defendants were tried on the specific charge of accepting deposit of $105 from Mrs. Louise Green. 3522 Monroe street, on Nov. 1929. the day that the bank closed. The law provides minimum punishment of fine twice the amount of the deposit accepted in such cases. motion for new trial in behalf of all the defendants. who are at liberty in bonds of $17.500 each. was set for hearing by Judge Allegretti on May The prosecution started two years ago with the of the bank officials on April 29, 1931 Stedman and his 54 continuances before the case finally was forced to trial by the state. The case was the first under the recent ruling of State's Attorney Courtney that all bank trials must be heard by a jury. Jury Takes 25 Ballots. Adolph Trapp. 7024 East End avenue, of the said 25 bal lots were The decided. he said, the bank was insolvent on the 10th the rest were needed to fix the for the indi vidual defendants. The said the jurors believed the evidence stronger against and Jarema than the other three defendants Frank D. Robinson vice president has pleaded guilty and probably will be sentenced with the other defendants the motion for new trial overruled, Frank Bergen, another vice president, and Bennett J. C. Johnson. director, who also were indicted. obtained separate trials. Both testified for state in the trial just completed.