4369. Peoples Savings Bank & Trust Company (Moline, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust
Start Date
January 16, 1933
Location
Moline, Illinois (41.507, -90.515)

Metadata

Model
gpt-5-mini
Short Digest
8b3edd75f8a2b2c6

Response Measures

None

Description

Articles indicate the bank was closed during the January 1933 banking holiday (Jan 16) and subsequently placed in receivership (March–June 1933) and remained in receivership through 1934. No article describes a depositor run before suspension; sequence is suspension then permanent closure/receivership.

Events (7)
1. January 16, 1933 Suspension
Cause
Government Action
Cause Details
Banking holiday went into effect Jan. 16, 1933; bank was closed during the statewide banking holiday and city deposits were affected (city unable to access funds).
Newspaper Excerpt
The city was unable to meet its payroll and bills January 16, the date the banking holiday went into effect.
Source
newspapers
2. March 29, 1933 Receivership
Newspaper Excerpt
Frank Gustafson ... appointed receiver to collect stockholders' liability of the Peoples Savings Bank & Trust company of Moline, by Judge Paul Califf ... this afternoon.
Source
newspapers
3. April 1, 1933 Receivership
Newspaper Excerpt
Removal of William L. O'Connell of Chicago as receiver for the Peoples Savings Bank & Trust company, Moline, and appointment of receiver accountable directly to the circuit court, is the aim of petition eight depositors ... hearing ... April 19.
Source
newspapers
4. June 15, 1933 Receivership
Newspaper Excerpt
Affects Moline Bank. ... decision ... gives the state auditor authority proceed with complete control ... expected Paul Califf ... will deny filed asking of liam Chicago ceiver for the People's Savings Bank and Trust company of Moline.
Source
newspapers
5. October 5, 1933 Receivership
Newspaper Excerpt
Fred W. Allen of Evanston today relieved G. Herbert Pemberton as deputy receiver of the Moline State Trust and Savings bank; the People's Savings Bank and Trust company of Moline ... William L. O'Connell of Chicago, appointed receiver for banks which have closed ...
Source
newspapers
6. November 17, 1933 Other
Newspaper Excerpt
HEADQUARTERS of the People's Savings Bank and Trust company ... located in the Moline State Trust building will be open daily ... it is announced by Fred W. Allen, deputy receiver. ... the three banks, which are in receivership.
Source
newspapers
7. November 24, 1934 Other
Newspaper Excerpt
Judge Leonard E. Telleen ... constituting the initial step in for new RFC loan ... to cover 10 per cent dividend to depositors of the bank. ... receivership has paid the loan down ...
Source
newspapers

Newspaper Articles (10)
1. February 18, 1933 The Dispatch Moline, IL
Article from The Dispatch, February 18, 1933

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Article Text

Be to City Hopes to Meet March Payroll on Officials Discuss Plan Issuing Tax Warrants to Meet Obligations. Plans whereby the city of Moline hopes to be able to meet its payroll and other financial obligations on March were in the office of Mayor John Huey this the mayor, of morning by the committee of the city council, the city clerk and James Johnston, former city attorney, and legal adviser the city. The mayor stated that according to present plans the city probably will issue city anticipation warrants for amount sufficient month's salaries and bills pay now due and an additional two salaries and bills which will due March Details of the plan to be pursued have not been worked out, the mayor stated. The city favors this plan rather than the suance of scrip. Warrants for an amount approximating probably will be sued the plan now being considered is adopted. The now owes $14,000 in salaries to and will owe another $7000 by March or total of in salaries. Other bills now due and which will be due March will bring the total amount of indebtedness up approximately $30,000, the mayor said. The city was unable to meet its payroll and bills January 16, the date the banking holiday went into effect. was also impossible for the city to meet its payroll during the remainder of the period the banking holiday was in effect. On January the city had deposit in the People's Savings Bank and Trust company of Moline $137, The city also the bank for tax issued during the fiscal The deposit was in the special fund and the owed was by the general fund from which practically salaries are paid. According to city officials, the bank deducted the owed by the city from the general fund, which was from the posit in the special fund which left city balance of Forty percent of the which the payment immediately all depositors, will the city with total balance of Whether the city will sign waiver to obtain dollar for doloffset the owed the bank will be determined at the next meeting of the city council.

2. March 29, 1933 The Rock Island Argus Rock Island, IL
Article from The Rock Island Argus, March 29, 1933

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CALIFF NAMES GUSTAFSON RECEIVER Circuit Judge Appoints Officer to Collect Stockholders Liability of $650,000. Frank Gustafson, Moline police magistrate for many years, appointed receiver to collect stockholders' liability of the Peoples Savings Bank & Trust company of Moline, by Judge Paul Califf of Aledo in the Rock Island county circuit court this afternoon. Motion for the appointment presented this by Ben Bell. for the but action deferred to ternoon for modification of amount of bond to be required. The original motion suggested bond of $15,000, but Judge Califf said he regarded this too small sum, and he indicated he would fix the bond at $50,000. Capital stock of the bank was and would be subject assessment up 100 per cent. Judge Califf, in the suit of the Illinois auditor for receiver for the bank, appointed William nell of Chicago and fixed his bond at two weeks ago. Herbert Pemberton, acting for the is in charge the Peoples and also the Moline State Savings Bank Trust company of Moline. An injunction restrains other creditors and depositors from instituting suit.

3. April 1, 1933 The Rock Island Argus Rock Island, IL
Article from The Rock Island Argus, April 1, 1933

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DEPOSITORS IN PETITION SEEK RECEIVER NEW Ask to Intervene in Peoples Case and Attack Legality of Auditor's Action. Removal of William L. O'Connell of Chicago as receiver for the Peoples Savings Bank & Trust company, Moline, and appointment of receiver accountable directly to the circuit court, is the aim of petition eight depositors of the bank presented this morning in the Rock Island county circuit court before Judge J. Paul Califf of Aledo. hearing on the petition to in the suit for receivership was by Judge Califf for April 19. Judge Califf denied motion leave to amend the petition to tervene, filed Attorney Turnbaugh. Petitioners in the and the amounts of their recited in the petition, follows: Retherford, Jennie Holmgrain, $550; Ingelson. $6,000: Tooley, E. Jennisch, $100 Ellen nisch, $500; Florence B. Tool $121.28, and Mrs. Emma kamper, $150. The petition attacks constitutionality of the act under which the state auditor of public accounts, Edward Barrett designated receiver. whose appointment was confirmed by Judge Califf The point is the same as that raised in recent Waukegan case in which Judge Dennis Sullivan held the naming of receivers by the auditor be The method in which the point comes before the court is different in Rock land than in the case in which Judge Sullivan rules, attorneys say The petition to intervene asks the removal of Mr. O'Connell and of new receiver It also complains of the administrative agent under whose control as sets of the bank are being administered for the Reconstruction Finance corporation, which made an advance to the bank to permit immediate payment of 40 per cent of its deposit liability through the newly formed Moline National bank. It charges that the activities of this liquidating agent are not to the interests of the depositors. Judge Califf this morning approved the bond of Frank Gustafson. Moline police magistrate. appointed by the judge as receiver to collect stockholders liability in the Peoples Savings Bank & Trust company. bond is in the sum $50,000. written by the St. Paul Mertury Indemnity coinpany of St. Paul.

4. June 15, 1933 The Dispatch Moline, IL
Article from The Dispatch, June 15, 1933

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Article Text

He, Not Circuit Judges, Says Has Sole Power to Name Bank Receivers. Springfield, Ill., June The Illinois supreme court today ruled that the auditor of public and not circuit court accounts, has sole to appoint judges, power closed state banks. receivers of ruled in favor of State The court Auditor Edward Barrett, who granted writ of mandamus ordering Circuit Judge Edward Shurtleff Marengo expunge from his court records the appointment John Clendenin receiver of the Lake County State bank. Barrett is permitted to reinstate William Connell of Chicago as ceiver for all state banks under liquidation. The court's decision was unanimous, with Justices Stone and Heard especially concurring in the opinion Justice Dunn. issue the suit was the conof the law permitting the state auditor name receivers state banks. In order to consolicontrol and on expenses Barrett appointed William nell Chicago as receiver for all closed banks. Judge Shurtleff ousted O'Connell from the Lake county bank, at North Chicago, and put Clendenin in charge. In effect, the decision gives the state auditor authority proceed with complete control months rett asked for the resignation receivers, announcing that many would be vacant in positions effort to reduce fee charges against assets of closed banks. Affects Moline Bank. result of the decision of the upholding the right of the Illinois auditor public counts to designate receivers for closed banks, expected Paul Califf in Rock Island Judge court will deny filed asking of liam Chicago ceiver for the People's Savings Bank and Trust company of Moline. Judge after on the petition in the ple's bank deferred consideration of the matter pending the sucourt decision similar preme points those raised here. In the People's bank Ingelson and several other depositors sought removal of auditor's basing their appointee contention the claim that the banking act with reference the auditor's control of receiverships

5. October 5, 1933 The Dispatch Moline, IL
Article from The Dispatch, October 5, 1933

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EVANSTON MAN IN CHARGE OF CLOSED BANKS Fred W. Allen Appointed to Replace Pemberton as Deputy Receiver. OCCUPIES SKINNER HOUSE May Be Placed in Control of Commercial, Fifth Avenue Institutions. Fred W. Allen of Evanston today relieved G. Herbert Pemberton as deputy receiver of the Moline State Trust and Savings bank; the People's Savings Bank and Trust company of Moline and the Manufacturers' State bank of East Moline. William L. O'Connell of Chicago. appointed receiver for banks which have closed since Edward J. Barrett has been state auditor, made the appointment, replacing Mr. Pemberton because he has assumed his duties as president of the Rock Island Bank and Trust company. It is understood that the state auditor's office plans to establish deputy receiverships for banks within counties, which may mean that the auditor will appoint Mr. Allen as deputy receiver in charge of the closed Commercial Savings bank of Moline and the closed Fifth Avenue Trust and Savings bank of Moline. Charles J. Smith of Moline is now receiver for the Commercial bank and R. A. Cole of Moline is now receiver for the Fifth Avenue institution. Mr. and Mrs. Allen have moved to Moline, establishing their home in the Skinner residence at 1217 Eleventh avenue, Moline. They have four children, three of whom are attending Moline elementary schools and one a junior high school. Has Been Receiver. Mr. Allen has been deputy receiver of the Papanel: Kovac state bank and the Kaufman state bank during the last eighteen months. These banks have now been placed in a group with several others under one deputy receiver. For seventeen years Mr. Allen was connected with the First National bank of Chicago and for five years he was manager of the foreign exchange department of the Northern Trust company, Chicago This week all closed banks of Mercer county were placed under the supervision of one deputy receiver, J. M. Connors. The receivership of the Farmers' State bank of Reynolds, it is understood, will be placed in the Mercer county group instead of the Rock Island county group. For the time being, Harry E. Thompson of Rock Island remains in charge of the bank as receiver.

6. November 17, 1933 The Dispatch Moline, IL
Article from The Dispatch, November 17, 1933

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BANK RECEIVER OFFICE TO BE OPEN UNTIL 4 Headquarters of the People's Savings Bank and Trust company, Moline State Trust and Savings bank and Manufacturers' State bank of East Moline located in the Moline State Trust building will be open. daily including Saturday, from 9 to 4, it is announced by Fred W. Allen, deputy receiver. The office had been open from 9 to 3, except on Saturday, when it closed at noon. The change was made for the convenience of persons having business to transact with the three banks. which are in receivership. The same hours will be maintained at the Commercial bank, it is announced by C. J. Smith, receiver.

7. February 3, 1934 The Rock Island Argus Rock Island, IL
Article from The Rock Island Argus, February 3, 1934

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TO RULE TITLE Circuit Court Decision In Controversy Over Shares Indicates Receiver Victory. Judge Nels Larson in the Rock Island county circuit court afternoon indicated that he would grant an order requiring transfer of 10 shares stock in the Carse Ohlweiler company of Rock Island to William nell receiver for Peoples Savings Bank Trust company, Moline. Formal entry of the judge's cision was the request Devore Simonson attorney the defendants. who asked submit further authorities on the legal points raised. In the suit, the bank receiver sought to bar William Carse and Joseph Scherrer from interest in the shares of stock, owned Bert Ohlweiler. charged that the stock posted collateral on for $2,345 with the bank, and subsequently Mrs. Marie Dean obtained judgment against and against the stock attempted Sheriff Fred attempted to auction stock Aug. though the certificates control the ceiver. Subsequently, collateral sold on the note account, and in the bank, but, was charged, officers of the company disclaimed title the receiver and refused transfer the stock on the corporation books, claiming previously been transferred the the sherift's the execution on the judgment Mrs. Dean. The receiver represented the proceedings and the defendants by Curtis Simonson.

8. May 2, 1934 The Rock Island Argus Rock Island, IL
Article from The Rock Island Argus, May 2, 1934

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SUITS ON BONDS OF EAST MOLINE HEARD IN COURT Bank and Receiver for Two Others Begin Actions: Aggregate Is Beyond Legal Limit. With two new accounting suits against the city of East Moline filed yesterday and today, formal hearings began in the Rock Island county circuit court today before Judge Leonard E. Telleen on claims of a large number of holders of local improvement bonds of the city. Ray I. Klingbiel, city attorney, appeared but offered no defense behalf of the city, and judgments will be entered by Judge Telleen upon completion of the formal Plaintiffs appearing today include Dr. Ralph Dart, Elizabeth Ehleb. Frank III, Alice Moore, Marie Howe, William F. Johnson, the Lincoln National Life Insurance company Fort Wayne, Ind., James E. McConnell, Edward W. Martin, the State Bank of East Moline and William L. O'Connell as receiver for the Peoples Savings Bank & Trust company and the Moline State Trust & Savings bank. Plaintiffs are represented by Stafford & Schoede, Murphy & Murphy, S. E. Long and Clyde S. Walker. As receiver for the Moline banks, Mr. O'Connell this morning filed one of the suits, involving bonds of $1,200 held by the Moline State bank, $1,200 held by the Peoples bank and $1,000 by the Peoples bank as trustee for the estate of John E Poole. Mr. Martin, joining in the suit the bank receiver. makes claim on $700 worth of the bonds. In a suit filed yesterday afternoon and called for hearing today, the State Bank of East Moline asks on 29 bonds aggregating $7,200 principal and more than $1.200 interest There are 10 classifications of the bonds, involving from one to 11 of the securities and ranging from $200 to $1,000 on each bond. Mr. Klingbiel said today that the judgments against the city will exceed the limit for bonded indebtedness of the city, and he indicated that study will be made of the bankruptcy provisions of the new federal law adopted vesterday to permit municipalities to go through receivership process with consent of 75 cent the creditors. Mr. Klingbiel says that if the city general bond issue to cover the judgments does not carry in the special election the city will be compelled to operate on only current license and fee income and will be unable to borrow any money or anticipate any taxes. The bond issue would spread the debt over a 10-year period. Judgments will aggregate more than $110,000. The limit of tax rate for the city will produce only about $34,000 annually, regardless of the amount which

9. July 13, 1934 The Rock Island Argus Rock Island, IL
Article from The Rock Island Argus, July 13, 1934

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ESTATE FUNDS AS BANK CLAIM PUZZLE COURT Money Held for Missing Heir and Deposited in 1917 Brings Up Many Law Questions. One of the most puzzling legal questions in connection with claims against the Peoples Savings Bank & Trust company. Moline, in receivership proceedings in the Rock Island county circuit court. was presented yesterday afternoon to Judge J. Paul Califf in connection with a deposit of money in an estate in which the heir has not been found. The county is acting in an effort to get the funds into the hands of the county treasurer, as escheated money which may eventually become the property of the county. On June 7. 1917. the probate court ordered $2,297 deposited in the Peoples bank to draw interest at 4 per cent and to remain on deposit till further order of the court Interest accumulations now amount to $1,228 The bank receiver on advice of the legal department of the auditor's office. planned to have the deposit go through for approval by the court as a preference claim The county view is that the deposit was a trust fund. and subject to allowance 100 per cent from money on hand when the bank closed, and not subject to pro-rating. as preferred claims might be, from cash on hand. Questions involved are whether the court ordered the money deposited under the trust act. in which case it might not be subject to interest: whether the probate court had power to order the deposit in the bank instead of ordering it turned over to the county treasurer as escheated money: whether the order relative to interest placed the deposit in the position of savings account: whether the reference to further order of the court keeps the deposit as preferred claim subject to interest; and whether reopening of the estate and naming of Walter W Kittilsen, county auditor. as administrator in order to press the county claim, was proper procedure. The funds were part of the estate of Kjersti Fagerstrom. and the former administrato was Laurence W. Larson When the estate was closed. one heir was missing. and it was his share that involved Had the funds been in the county treasurer's hands seven years the county might claim them. but the status of funds deposited in the bank is not clear, After lengthy discussion be- tween attorneys and représentatives of the receiver, the question, went over to September for further consideration. Clyde S. Walker appeared for the receiver. William L. O'Connell. Assistant State's Attorney Forest Dizotell. handling claim for the county and Mr. Kittilsen, was not in court.

10. November 24, 1934 The Rock Island Argus Rock Island, IL
Article from The Rock Island Argus, November 24, 1934

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PEOPLES BANK RECEIVER ASKS Set for Dec. on Plan to Borrow to Cover Another 10 Per Cent Payment. Judge Leonard E. Telleen in the Rock Island county circuit court yesterday afternoon signed an orconstituting the initial step in for new RFC loan assets of the former People Savings Bank & Trust company, Moline, to cover 10 per cent dividend to depositors of the bank. The judge set petition for authority to apply for the loan for hearing on Dec. at o'clock in the morning. not expected that there will be any opposition to granting the authority for the application. is proposed to borrow $675,000 from the RFC the new dividend, and those charge of the receivership of the bank hope that the loan will be put through so that the payment may be made to depositors by the first of the year. Originally, the time the bank suspende business, the RFC advanced $2,750,000 on its assets, to enable the bank to make an immediate 40 per cent payoff. Since that time, the receivership has paid the loan down to 000, and the new loan would init again to The crease willing to make the loan if RFC approved by the court order sought in the Dec. hearing. Petition for authorizing of the filed on behalf of application William O'Connell. Walker attorney.