Article Text
CO-OP SOCIETY BANKRUPT. Chicago, Oct. 7.-The Co-operative Society of America was adjudged bankrupt and Central Trust company of Chicago was appointed its receiver by Federal Judge Evan A. Evans.
4325. Co-operative Society of America (Chicago, IL)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- private
- Start Date
- October 7, 1921
- Location
- Chicago, Illinois (41.850, -87.650)
Metadata
- Model
- gpt-5-mini
- Short Digest
e98e166a
Response Measures
None
Description
The articles report that the Co-operative Society of America was adjudged bankrupt and the Central Trust Company of Illinois was appointed receiver (Oct 7, 1921). There is no mention of a depositor run or a temporary suspension/reopening — this is a receivership/closure of the concern (a common-law trust). OCR typos corrected (e.g., Co-Op Society references and sums).
Events (2)
1.
October 7, 1921
Receivership
- Newspaper Excerpt
- CO-OP SOCIETY BANKRUPT. Chicago, Oct. 7.-The Co-operative Society of America was adjudged bankrupt and Central Trust company of Chicago was appointed its receiver by Federal Judge Evan A. Evans.
- Source
- newspapers
2.
December 17, 1921
Other
- Newspaper Excerpt
- Only $16 Remains From $28,332,089 Co-Operative Society Receiver Finds President's Wife Benefited. CHICAGO, Dec. 17.-...a preliminary report of the Central Trust Company of Illinois, receiver for the enterprise.
- Source
- newspapers
Newspaper Articles (10)
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Article Text
Declares Attack on Cooperative Chain Is Blackmail Plot CHICAGO, Oct. 7.-The Co-operative Society of America, which was placed in the hands of the Central Trust company as receiver yesterday, was declared today by Harrison Parker, one of the chief figures of the organization, to have virtually been succeeded last February by the "Cooperators of America." In federal district court yesterday. Judge Evans in appointing a receiver for the $10,000,000 corporation which owned dairies, grocery stores and other Industries, declared the society was visionary. "There is nothing at all to this appointment of a receiver," said Mr. Parker. "This whole attack on the society is made by certain attorneys for blackmail. We have assets totaling $6,000,000 and do not owe a cent to any one."
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Big Grocery Concern Adjudged Bankrupt CHICAGO, Oct. 6. Judge Evan A. Evans to-day declared the Co-operative Society of America a bankrupt, and appointed the Central Trust Company receiver. The company, which says it owns 181 grocery stores, the largest wholesale grocery house in this city, a bank, a twenty-story office building, a life insurance company, several canneries and some real estate, claims assets of $5,000,000 and liabilities of not more than $2,500,000. Judge Evans estimated the liabilities at $15,000,000, and the assets seized to-day amount to only about $50,000. The decision of Judge Evans came after nearly two years of litigation. At the time it was rendered a petition in bankruptcy proceeding was being heard by Master in Chancery C. B. Morrison and an investigation, which may result in charges of fraud, was being conducted by postoffice inspectors. None of the three trustees of the society, Harrison Parker, John Coe or George Hawkinson, was located tonight. According to officials of the society more than 81,000 persons have purchased membership in the association. Judge Evans's decision placed each of these members in the category of creditors of the association.
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HOLDING THE FORT Co-operative Society of America Fights Against Receivership. Chief Declares He Will Not Turn Over Property. Chicago, Oct. 10.-Harrison M. Parker, head of the Co-operative Society of America, declared today that he will refuse to permit the Central Trust company, appointed receiver for the $20,000,000 enterprise, to take over the affairs of the society. He was "holding the fort" with a dozen employes in his downtown offices. "If they dare take possession, we will file suits," he asserted, "and we will recover in damages every dollar the trust company has." At the same time F. E. Hummwell, receivership attorney for the Central Trust, announced he intended to take actual physical possession of the society's stores, buildings and companies at once. "I do not think it will be necessary to use force," he said. Hearings in the bankruptcy proseedings before Master in Chancery Morrison, were resumed today. Meanwhile, an active hunt for more than $3,000,000 in assets of the concern, which has revealed to be missing, is under way. Simultaneously, plans to file bankruptcy action against the society in every federal jurisdiction where the society has been operating were announced. Search was being made for C. C. Higgins, declared by Parker to be trustee of the co-operative. Higgins is lescribed as the New York "capitalist" O whom most of the stock of the Great Western Security company, the City State bank, the Rochdale Wholesale Grocery company, and other subsidiaries of the Co-operative society, had been transferred.
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NEW LIGHT SHED ON STRAY BONDS President of Co-operative Society of U. S. Had Package CHICAGO, Oct. 10.-Harrison M. Parker, head of the Co-operative Society of America, admitted late today at a bankruptcy hearing that he had taken twelve packages, in appearance resembling bonds, from a safety deposit vauit on September 20, and delivered them to his wife. This admission was regarded as an important disclosure in the search for a mysterious $2,000,000 liberty bonds Didn't Know Contents. Parker said he did not know the contents of the packages. Gustav Kapp. president of the Great Western Securities company, a subsidiary of the co-operative society, testified that Mrs. Parker has in her possession a million or more dollars worth of liberty bonds, which were taloen in by the organization. Parker declared today that he will refuse to permit the Central Trust company, appoint ed receiver for the $20,000,000 enterprise, to take over the affairs of the society. He was "holding the fort" with a dozen employes in his downdown offices. "If they dare take it. we will file suit," he asserted, "and we will recover in damages every dollar the trust company has." Receiver May Use Force. At the same time F. 17 Hummwell, receivership attorney for the Central Trust, announced he intended to take actual physical possession of the society's stores, buildings and companies at once. "I do not think it with be necessary to use force," he said. Plans to file bankruptcy actions against the society in every federal jurisdiction where the society has been operating were announced Search was being made for C. C. Higgins, declared by Parker to be trustee of the co-operative Higgins is described as the New York "capitalist" to whom most of the stock of the Great Western Security company, the City State bank, the Rochdale Wholesale Grocery company and other subsidiaries of the co-operative society, had been trans. ferred.
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Only $16 Remains From $28,332,089 Co-Operative Society Receiver Finds President's Wife Benefited. CHICAGO, Dec. 17.-Ninety thousand persons who subscribed $28,$83,089.46 to the Co-operative Soelety of America, have only $16 in the treasury of that concern to show for their money, if the various transactions of Harrison W. Parker, its president, are to stand. This was the statement made today in a preliminary report of the Central Trust Company of Illinois, receiver for the enterprise. The receiver asked for more time in which to study the affairs of Parker's various companies before offering a solution for his tangled affairs. The report accuses Parker of false testimony under oath during the proceedings to discover assets for the thousands who subscribed 19 his concerns. The report also saye Parker's wife. Mrs. Edith Stubbs Parker, and Charles C. Higgina relative of Mrs. Parker, neither of whom paid anything for their stock, are the chief beneficlaries of Parker's deals.
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MILLIONS INVESTED; ONLY $16 REMAINS Thousands of Persons Lose Money in Co-Operative Society of America. By the Associated Press. CHICAGO, December 17.-Sixteen dollars is all that remains of over $28,000,000 subscribed to the Co-operative Society of America by 90.000 persons, according to a preliminary report filed today by the Central Trust Company of Illinois, appointed receiver for the concern. The report, made after two months spent in investigation of the concern, also says that the society is indebted to the Great Western Securities Corporation in the sum of $1,758,478.20 on its promissory notes. "Of the amount subscribed, $11,337,963.95 has been paid in to the Great Western Securities Corporation," the report said. The report accuses Harrison W. Parker, head of the co-operative society, of giving false testimony under oath Chief Beneficiaries. Parker's wife, Mrs. Edith Stubbs Parker, and Charles C. Higgins, a relative, are the chief beneficiaries of Parker's death by reason of their ownership of the Western Securities Corporation, fiscal agent for the society, the report asserts. Neither Mrs. Parker nor Higgins paid anything for their stock, the report says. Reciting transactions with a number of concerns, the report charges that Parker in each instance represented both parties in the transaction. Securities of one trust fund were transferred to other trust funds and made collateral for other loans, it is charged.
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RECEIVER SEEKS $11,000,000. Will Hunt for Missing Funds of Cooperative Society of America. CIHCAGO, Dec. 19-A new hunt for the missing funds of the Co-operative Society of America will be started this week, Julius Moses, counsel for the Central Trust Co. of Illinois, appointed receiver for the organization, announced last night. A preliminary report by the receiver Saturday stated that only $16 remained of over $11,000,000 invested in the society by 90,000 persons. Subscriptions totaling more than $28,000,000 were shown, according to the report. Mr. Moses said that an effort is to be made to verify statements of Harrison Parker, head of the society, whose testimony was questioned in the receiver's report. Mrs. Parker, an official of the Great Western Securities corporation, fiscal agent of the society, is in Canada, Mr. Moses said. He expressed a desire to question her and other officials of the securities corporation to which the society turned over large sums of money, according to the receiver's report.
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RCHEFOR 11,000,000 ANNED Money of Defunct Society CHICAGO, December 20.-A new hunt for the missing funds of the Co-operative Society of America will be started this week, Julius Moses, counsel for the Central Trust Company of Illinois, appointed receiver for the organization, announced. A preliminary report by the receivers yesterday stated that only $16 remained of more than $11,000,000 invested in the society by 90,000 persons. Subscriptions totaling more than $28,000,000 were shown, according to the report. Mr. Moses said that an effort is to be made to verify statements of Harrison Parker, head of the society. whose testimony was questioned in the receiver's report. Mrs. Parker, an official of the Great Western Securities Corporation, fiscal agent for the society, is in Canada, Mr. Moses said. He expressed a desire to question her and other officials of the securities corporation, to which the society turned over large sums of money, according to the receiver's report.
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'CO-OP' SOCIETY HEAD WINS TWO POINTS IN SUIT (By The Associated Press.) Chicago, Dec. 28.-Harrison Parker, head of the Co-operative Society of America, today won two of three points decided by the United States court of appeals which decided legal points involving bankruptcy proceedings against the society. One of the principal points brought out in the appellate court's decision was that the society is a common law trust and Parker and co-defendants in the bankruptcy proceedings are trustees. The court of appeals ruled that District Judge Evans had no right to place receivership proceedings in the hands of a master in chancery before he had passed upon the. fundamental legal points involving bankruptcy proceedings against a common law trust. The appellate court also held that the petitioners in bankruptcy had failed so far to show fraud. The contention lost by Parker was that no court had the right to hear bankruptcy proceedings against a common law trust. The decision was that courts had this right under certain circumstances. Judge Evans is directed to certify that order of reference, and to sustain the defendant's motion to dismiss the complaint. The district court is given permission to fix the time and terms of filing an amended complaint. Upon the district court's decision depends the continuance of the investigation conducted by attorneys representing the Central Trust company of Illinois, receiver. A week ago a preliminary receiver's report asserted that the co-operative society had a bank balance of $16 and that its assets had been transferred to various interlocking enterprises, chiefly the Great Western Securities company of which Mrs. Edith S. Parker, Harrison Parker's wife, is the controlling factor, according to the report. The original petition in bankruptcy was filed August 3 by William Hartman, Sarah Smith and Alexander C. Friedman. The appellate court's decision was on the petition of Parker and his cotrustees, N. A. Hawkinson and John Coe, to review the orders entered by Judge Evans relative to chancery proceedings.