Article Text
Another Rotten Bank Goes Down. CHICAGO, April 22.-The Cook County Savings bank has suspended as a bank of deposit, and will immediately wind up its affairs.
4349. Cook County Savings Bank (Chicago, IL)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- savings bank
- Start Date
- April 22, 1876
- Location
- Chicago, Illinois (41.850, -87.650)
Metadata
- Model
- gpt-5-mini
- Short Digest
471d2a18
Response Measures
None
Description
Multiple contemporary newspapers (April 22–24, 1876) report the Cook County Savings Bank 'has suspended as a bank of deposit, and will immediately wind up its affairs.' Coverage describes insolvency/mismanagement (large loans to officers, deficient assets) and later pieces (July 1876) refer to an assignee and collapsed institution, indicating permanent closure and administration of assets. No run (mass external panic/withdrawal) is described in the sources provided.
Events (2)
1.
April 22, 1876
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Bank insolvent/feeble condition due to large loans and mismanagement (directors/officers loaning funds; assets insufficient vs liabilities).
- Newspaper Excerpt
- The Cook County Savings bank has suspended as a bank of deposit, and will immediately wind up its affairs.
- Source
- newspapers
2.
July 25, 1876
Receivership
- Newspaper Excerpt
- Mr. Carl Dreier, the Assignee of the bank ... As Assignee, he would work in the interests of the depositors alone ... the collapsed Cook County Savings Bank ... appoint a Committee to secure an attorney for the depositors: ... A subscription was then opened to raise a fund to retain an attorney, and quite a large amount was pledged.
- Source
- newspapers
Newspaper Articles (11)
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TELEGRAPHIC CLIPPINGS. London, April 22: The steamships Ageyria, Chins and Colombo, from New York, have arrived. New York, April 22: The creditors of Duncan, Sherman & Co. to-day elected e Charles E. Strong, lawyer, assignee. Brussels, April 22: The Bank of Bel. gium has reduced its rate of discount from three to two and a half per cent. Rockport, Maine, April 22: The bark G. Norwood, from Galveston for Bremen, is supposed lost with all on board. London, April 22: Queen Victoria and Princess Beatrice, with their suite, arrived to day at Windsor from the continent. New York, April 22: Specie shipments to-day, $345,000; $50,000 gold coin; $105,000 gold bars, and $190,000 silver bare. Berlin, April 22: It is again proposed that in the event of all other means of restoring peace in the Turkish provinces failing, Austria should interfere forcibly. Madrid, April 22: It is understood that Senor Salivera, minister of finance, will propose in the cortes a legalization of the treasury operations under the republic. Chicago, April 22: The Cook county savings bank has suspended as a bank of deposit, and will immediately wind up its affaire. It will pay dollar for dollar. Paris, April 22: A Joan of twenty-four million dollars will shortly be issued by the municipality to complete the Boulevard Saint Germaine and avenue de l'Opera. Philadelphia, April 22: President Grant is in the city, having arrived last evening for the purpose of seeing the present condition of the Centennial grounds. Calcutta, April 22: Seventeen persons implicated in the murder of Mr. Margary, of the British expedition, will be executed on the fifth of May in presence of the British escort. Paterson, N. J., April 22: The Arcade burned last night, involving a loss on the building and to occupants of seventy-five thousand dollars. Insurance twenty-two thousand. Constantinople, April 22: It is under stood Montenegro has been notified that unless she maintains the strictest neutrality, the Turkish troops will immediately cross the frontier. Washington, April 22: The Kilbourn habeas corpus case has been adjourned to Monday, as Voorhies, who is to close the argument for Kilbourn, was not ready to proceed to day. New York, April 22: The produce exchange is rejoicing over the passage by the senate or the bill continuing low tolls on canals, and it is urged that the deepening of the canals be now agitated. Wheeling, W. Ve., April 22: Josiah F. Updegraff, cashier of the People's bank of this city, who sustained & fracture of the limb by being thrown from a buggy this day one week ago, died today. Washington April 22: The house committee on Indian affairs to-day agreed to recommend the immediate appropriation of fifty thousand dollars to provide subsistence for the Arizona Indians. Washington, April 22: The commissioner of internal revenue to-day by direction of the President, wrote to Su pervisor Hedricks asking his resignaUOD. Supervisor Mathews has resigned to take effect May 1st. Barbadoes, April 22: Very serious disturbances have occurred throughout St. Joseph, St. Thomas, St. John, St. George and St. Michael parishes. Es. tates have,been pillaged, fields plundered and fires frequent. The situation is serious. Detroit, April 22: The weather at Mackinaw to-day was warm, with the thermometer above seventy. A steamer from the eastward reached there this evening. The ice in the neighborhood is broken up, but still remains firm toward Waugashace. Madrid, April 22: The inhabitants and many deputies declare if the Tueros are in anywise curtailed, the Basque provinces will seize the first favorable opportunity of definitely separating from Spain and proclaiming theirindependence under foreign protection.
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CHICAGO. BANK SUSPENSION. CHICAGO, April, 22.-The Cook county savings bank has suspended as a bank of deposit, and will immediately wind up its. affairs. Its liabilities are $80,000 deposits; and $60,000 which the directors . have loaned it. Its assets are $150,000, resides $15,000 in judgement notes which are of |some account. There are 600 depositors, mostly Scandinavians who the directors affirm will reoeive nearly if not -quite dollar for dollar. The bank has been in a feeble condition for a long time.
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some illegal practices in the custom service, but there will be no investigation. The World's Washington special says: Caulfield's committee sent to the Treasury Department to-day and secured the book in which the secret service accounts were audited and show by figures that in 1872 alone there were expended over $140,000 in Grant's behalf instead of $45,000. The Times Washington special says: That by the terms of the appropriation for secret service funds, the money was absolutely within the control of the Attorney General. There was, it is thought clearly, an unpardonable looseness in the disbursement since, the only vouchers that were procured are the receipts of Whiteley in gross sums. If the money has been improperly expended in New York, the responsibility must fall on the Attorney General. Davenport's testimony puts the President's action in a new and more favorable light. The Tribune's Washington special remarks: On the voting on the proposed Indian transfer bill, most of the Republican members voted no. One of the sturdiest negatives was Cox's vote which therefore, not being partisan may be taken as a condemnation of the peace o policy. a WADSWORTH, O., April 22.-TheChandler Bros. machine shop was burned this o t morning. Loss estimated at $30,000; y insured for $26,000. CHICAGO, April 22.-The Cook County a Savings Bank has suspended as a bank Bof deposit, and will immediately wind r up its affairs. Its liabilities are $80,000 Bdeposits and $60,000 loaned. Assets, t $150,000, besides $15,000 in judgments 11 which are of some account. There are le le 600 depositors, mostly Scandinavians, d the directors affirm will receive nearly, t if not quite, dollar for dollar. It has been in a feeble condition for a long t time. in PITTSBURGH, Pa., April 22.-Intelligence was received in this city this y is morning that the Methodist camp meetof ing buildings at Farentum, Pa., have been destroyed by fire, which broke out e d about 12 o'clock last night. As the cottages were all frames the flames spread ve with frightful rapidity. The Farentum ch ed grounds have been owned by the Methose dists of this vicinity for many years, and cthe cottages belonging to members of the church in this city are numerous. The rt grounds probably contained 150 cottages, d: which were generally of four or five or rooms of neat design, and many comin pletly furnished, except bed clothing. t. The only buildings saved, according to or present advices, were the Camp Hotel. itThe fire will prove a very disastrous one, h, is. and very seriously interfere with the ar. at rangements for the National Camp meeting, which was announced to be held on he the grounds in August. The origin of he the fire is at present unknown. Loss, gh $50,000; insurance, $20,000. ng
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MISCELLANEOUS. Crops on the Pacific. San FRANCISCO, April 21.-The Weekly Buletin this morning publishes a complete crop report from nearly every agricultural county in the State, All dispatches argee is reporting that the prospects for the grain crop were never better, and that an unprecedentedly large yield may be expected, with a continuance of reasonably favorable weather. Fruit also promises well, though in some districts it has suffered somewhat from late frosts. Internal Revenue Examination. General Hawley, Supervisor of internal Revenue, with Special Agents Crane and Clark. have been engaged all day in examining tax accounts and property of ColSector of Internal Revenue Sedgewick. The officials are very reticent, but the belief is strong that something important is in the wind. Pacific Mail Property Attached. The coal and stores of the Pacific Mail Steamship Company were attached to-day by the Panama Railroad Company. A Costly Kereseme Fire. PATERSON, N. J., April 22.-A kerosene lamp explosion burned the Arcado building. Loss $75,000. Paper Mill Burned. CONCORD, N. H., April 22.-The Dillinghave paper mill burned to-day. Loss $20,000. At the Centennial Grounds. PHILADELPHIA, April 22.-The President and Mrs. Grant visited the centennial grounds to-day. Get Through. The Congressional Naval Committee have concluded their labors and left the city. Prairie Fire. SEOUX CITY, April 22.-Great prairie these occurred in Iowa, Nebraaka and South Dakota. Much property was destroyed, but no lives lest. A Chicago Bank Suspended. CHICAGO, April 22.-The Cook County Savings Bank suspended. Liabilities $80,w The depositors number 600, mostly Scandiesviana of a Camp Seeding Ground. PHYNBURG, April 22 -One hundred and irame cottages on the Methodist camp meeting grounds as Tarentar burned. The collages were generally of four and of meat architroture.
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THE COOK COUNTY SAVINGS BANK. Chicago, has suspended as a bank of deposit. Its liabilities are $80,000. There are six hundred depositors, mostly Scandinavians, who, the directors affirm, will receive nearly, if not quite, dollar for dollar.
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New York Bank Statement: Loans decrease $4,500,000, specie decrease $1,375,000, legal tenders increa-e $2,250,000, deposits decrease $2,259, 000, reserve increase $1,875,000. James Wilkinson of the firm of Brewer & Wilkinson of New Orleans was arrested at Louisville yesterday charged with frauds in Nashville, Cinciunati, New Orleans and New York to the amount of $15,000. At Chicago the Cook County Savngs Bank has suspended. Liabilities 80,000. The depositors number 600, nostly Scandinavians,
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# Bank Badly Busted. The Cook County Savings bank has suspended as a bank of deposit. Its liabilities are $90,000 deposits are $60,000 which the directors have loaned it. Its assets are one hundred and fifty thousand dollars, besides $15,000 in judgment notes, which are of the same account. There are six thousand depositors, mostly Scandinavians, who directors affirm will receive nearly if not quite dollar for dollar. The bank has been in a feeble condition for a long time.
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THE COOK COUNTY SAVINGS BANK. To the Editor or The Tribune. CHICAGO, July 15.-During the last few days the depositors of the collapsed Cook County Savings Bank have evinced considerable interest in the doings of that institution, and have expressed their sentiments touching the management of said bank in language more forcible than elegant. As may or may not be generally known, the greater portion of our Scandinavian fellow-citizens have been depositors in the late bank, and when its suspension occurred. the chagrin, mortification, and consternation of those people knew no bounds. They at once set to work devising ways and means of obtaining at least a small portion of their hard-gained earnings. A meeting was called, at which a committee selected from among the depositors, was appointed to examine into and ascertain the true state of affairs. The committee having the matter in charge have now finished their ardorous task and report the condition of the bank as follows: Total amount of indebtedness, $145,830.64 claims, now pending in Court, $125,000; banking stock, $700; claim on the firm of Henry Clews & Co., New York, $3,808.56; probable claims on stockholders, $10,000; claim on an Albany firm, $15,000. Sum total, $154,550.56. The claim for the above mentioned $125,000, is, as stated, now pending, and it is believed judgment will not be rendered until some time in October. The claim for $15,000 from Albany is of a very doubtful character, and can be reckoned for nought. The same may be said of the claim on Clews & Co., as the firm, as gone into bankruptcv. The Committee censure the Board of Directors severely for having misused the confidence reposed in them by depositors, by allowing one of the officers of the institution to use the greater part of the funds. The Scandinavians have lost not a little by this failure, and are very indignant at the turn things have taken. A meeting will be held by them Monday evening at the Scandinavian Workingmen's Hall, on Halsted street, near Chicago avenue, to which they cordially invite American and Irish depositors (of whom there were not a few) to be present. Matters of deep interest will be brought forward and legal A. opinion called for.
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DEFRAUDED DEPOSITORS. THE COOK COUNTY SAVINGS-BANK. Another meeting of the depositors of the late Cook County Savings-Bank was held at the corner of Halsted street and Chicago avenue, the special object being to take steps to employ an attorney to look after their Interests in settling the affairs of the collapsed concern. The attendance was not so large as at some of the former meetings, the feature of which was the presence of several ladies. Ald. Smith was called to the chair. After the meeting had been called to order, Mr. Paulson said that, in view of the alim attendance, it would be useless to undertake to raise any money, and beside, he had about becomo satisfied that the hiring of an attorney would not advance the interests of the creditors. Mr. Carl Dreier, the Assignee of the bank, said no did not see how the employment of an attorney could be of any benefit. The attorneys employed by the Directors were doing all they could in pressing the Rhode Island suit for $125,000, and also the other claims making up theassets. As Assignce, he would work In thelnterests of thedepositorsalonc, but would suggest the appointment of a committee to co-operate with him and with Measrs. Jewett and Waite, his attorneys. Mr. Waite, representing a female creditor, sald he was In favor of employing an attorney, and was not satisfied to rely on the Assignee. Another gentleman waited to know of Mr. Drefer whether in his opinion the officers of the bank had run the business honestly, and If so, how it was that Mr. Taylor, the late President of the bank, was $125,000 ahead. Mr. Dreler responded that Mr. Taylor had loaned the $125,000 drawn from the bank to n business firm with which lic was engaged, and without the knowledge of the other officers of the bank; It was the same money that was now in suit. Several depositors spoke. stating that they had been decelved by the bank management In various ways, showing how they had been promised their money time and again, and how, finally, they had called for It, and found the Institution closed. They were in favor of prosecuting the officers of the bank, criminally, of sucing the stockholders, and employing an attorney to take charge of the whole affair, believing that delay was dangerous to their Interests. Finally, Mr. Paulson moved that a lawyer be employed. A voice-What is the lawyer going to dol We want him to watch the Assignee. We don't want any kid-gloved lawyer, or one who would become the tool of the bank as the Assignee had. [Applause.] A general experience meeting followed, In which there was considerable feeling mantfested against the Assignee, who, many of the depositors said, had lied to them repeatedly when they were inquiring at the bank. One even went so far ns to any that the Assignee had threatened to kield him when asking a civil question about the condition of affairs, and another that he would give $100 to any one If he could get a hold ou the Assignee or officers of the bank by which they could be made to suffer. The following gentlemen were appointed a Committee to secure an attorney for the depositors: A. Walte, Olo Mauland, and Gustave Nelsen. A subscription was then opened to raise a fund to retain an attorney, and quite a large amount was pledged. The meeting then adjourned, subject to the call of the above Committee.
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EXPLANATORY. The jump on July 17, 1876, from 44 to 73 was caused by the failure of the Cook County Savings Bank, and on the next day the calls fell to the average number, which is about 32. On July 16, 1S77, the first St. Louis failure was reported, and the demand for money at once increased. During the run in that city the applications ranged from 56 to 79 per day, nearly double the average. On the 24th of July the riots were inaugurated in Chicago, and during their continuance the applications fell off greatly, people apparently considering that their cash was safer in the bank than in the hands of the " distributors of property." alias the Commune. On the 29th ult. the State Savings Bank failed, and in one day the demands increased from thirty to 163. This was the highest point touched, and from that time there has been a gradual falling off until yesterday. Saturdays and Mondays the drafts are heavier than on other days, the bank being open longer. Mr. Myers, manager of the bank, being subjected to theusual pumping process, opined that people had PRETTY NEARLY COME TO THEIR SENSES AGAIN. Saturday (yesterday) the bank had received deposits to the amount of IS per cent of its payments, this being. of course, exclusive of its commercial business,-the most important part said You see," its transactions. of of a Mr. Myers, outside a bank and string. you carreople a run. That is a small matter, for in all savings banks there is a rule, without which business could not be carried on at all, demanding a thirtv or sixty day notice of withdrawal. But the thing which does try a bank's solvency is the commercial business; the drafts which are handed over the counter in a pocket-book and of which the outside folks know nothing at all. Those drafts we have to meet right away and there is no notice as to them. Where people have money drawing interest, the bank, which has loaned out that money in order to earn the interest, must have a certain time in which to convert its securities into cash, but in commercial accounts the money is supposed to be in the bank vaults, and must be produced on demand. Here is A LIST OF THE OCCUPATIONS of those who came round here on the day the State Savings Institution closed its doors hunting their money. Take it along with you; it's t quite Interesting." n The document is given, and, showing as it does the varied occupations of the depositors, may be looked upon as a contribution to , the savings-bank literature of the day: c Dry goods, 1; clerks, 6; bookkeepers, 4; shippers, 1; salesmen, 2; physicians, 1; grocers, 1; undertakers, 1; teachers, 1; music teachers, a 2; clergymen, 1; advertising agents, 1; lumber e inspectors, 2; Chicago Dock Company, 1; agent e Old People's Home, 1: school-boys, 2; ticketiagents, 1; machinists, 3; carpenters, 15; blacke smiths, 4; goldsmith, 1; coppersmith, 1 printers, 5; painters, 2; shoemakers, 6; stone cutters, 4: boarding-house keepers,2; butchers 2; upholsterers, 2; watchmen, 2; bookbinders 1; barkeepers, 1: bricklayers, 1; tailors, 2 paper-hangers, 1; saloonkeepers, 2; carriers d 2; expressmen, 3; tinner, 1; coachman, 1 sailors. 1; teamster, 1; brushmaker, 1; steam laundrymen, 1; coopers, 1; saddlers, 1; tan 1ners, 1; firemen, 1; peddlers, 1: Gas Company g 1: waiters. 2; glaziers, 1; bakers, 2; molders es 1; laborers, 4; rolling-mill, 1; women, 50 1€ total number, 163.