4403. Fidelity (Chicago, IL)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: July 18, 1877
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: 54ce74bd

Response Measures

Full suspension, Books examined

Other: Receiver appointed and injunction suit; bank placed in receivership and closed permanently.

Description

Newspaper reports describe a small run on July 18 that soon ceased, followed by the Fidelity's closing in late September 1877 and appointment of a receiver. The failures are linked to insolvency/mismanagement tied to the State Savings collapse and subsequent runs; court proceedings and a receiver (Dr. Turpin/Mason referenced) are reported. No evidence that the bank later reopened as an ongoing operating institution.

Events (3)

1. July 18, 1877 Run

Cause: Local Banks
Cause Details: Small run by light depositors in Chicago triggered by earlier St. Louis bank troubles and general agitation around the State Savings failure; described as a brief, limited withdrawal that ceased next day.
Measures: Bank officers continued paying ordinary withdrawals; officers stated runs would likely cease and reported having cash on hand.
Newspaper Excerpt: the run inaugurated yesterday on the Fidelity has to-day ceased.
Source: newspapers

2. September 24, 1877 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Collapse/insolvency of the Fidelity following runs and revelations tied to mismanagement/dishonesty at the State Savings Institution; reports of large deficits and inability to meet depositor claims led to closing and legal action to appoint a receiver.
Newspaper Excerpt: the closing of the Fidelity, yesterday, and the legal proceedings taken for the appointment of a receiver
Source: newspapers

3. September 25, 1877 Receivership

Newspaper Excerpt: the Fidelity...the appointment of a receiver... Receiver Turpin of the Fidelity said...it had closed yesterday, and the legal proceedings taken for the appointment of a receiver are being pursued.
Source: newspapers

Newspaper Articles (24)

1. July 18, 1877 The Rock Island Argus Rock Island, IL

Article from The Rock Island Argus, July 18, 1877

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Failure of St. Louis Banks not Affecting Chicago Banks. CHICAGO, July 18.-The - St. Louis bank troubles have produced scarcely a percep. tible impression on the banking institutions here, There has been a small run by lightdepositors to-day on the State Savings, but there is nothing like a rush, and the bank officers say they frequently pay out more in a forenoon in the ordinary course of business than they have, up to 1 o'clock to-day. It is probable that the run will cease entirely to-morrow. as that inaugurated yesterday on the Fidelity has to-day ceased.

2. July 19, 1877 New-York Tribune New York, NY

Article from New-York Tribune, July 19, 1877

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NO EXCITEMENT IN CHICAGO. CHICAGO, III., July 18.-The St. Louis bank troubles have produced scareely a perceptible impression on the banking institutions here. There bas been a small run by light depositors, to-day, on the State Savings Bank, out there is nothing like a rush. and the Bank officere say they frequently pay out more 18 a forenoon in the ordinary course of business than they did up to 1 o'clock to-day. It is prépable the run will cease to-morrow, as that begun yesterday on the Fidelity has to-day.

3. July 19, 1877 The Wheeling Daily Intelligencer Wheeling, WV

Article from The Wheeling Daily Intelligencer, July 19, 1877

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Slight Kun on Chicago Banks. CHICAGO, July 18.--The St. Louis bank troubles have produced scarcely a perceptible impression on the banking institutions here. There has been a small run by light depositors on the State Savings Bank, but there is nothing like a rush, and the bank officers say they frequently pay out more in a forenoon in the ordinary course of business than they have up to one o'clock to-day. It is prob. able that the run will cease entirely tomorrow, as that inaugurated yesterday on the Fidelity has to-day.

4. July 19, 1877 The Wheeling Daily Register Wheeling, WV

Article from The Wheeling Daily Register, July 19, 1877

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Slight Run in Chicago. CHICAGO, July 18.-The St. Louis bank troubles have produced scarcely a perceptible impression on the banking institutions here. There has been & small run by light depositors to day, on the State Savings Institution, but there is nothing like & rush, and the bank officers say that they frequently pay out more in a foreboon in the ordinary course of bus. iness than they have up to one o' clock to day. It is probable that the run will cease entirely to-morrow, as that inaugurated yesterday on the Fidelity has today.

5. August 29, 1877 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, August 29, 1877

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THE SITUATION. JOHN c. HAINES. A reporter called on John C. Haines, the President of the Fidelity, last evening, to get his views regarding the effect of the suspension. He said: "I believe the Irritation since the middle of July among the depositors In savings-banks, and their desire to draw their money, was occa. sioned largely by the distrust that existed in the minds of the community as to the solvency of the State, and particularly as to the Integrity of Its President, Mr. Spencer. Had it not been for these doubts and suspicious that surrounded him and his character, we would have had DO trouble here whatever. There would have been no run, and the exclus ment would have died out. Now, that the bubble is broken, and the true Inwardness of the thing has become known. the suspension ough: not to affect seriously the other savings banks." The other banks are not interested a dollar, I understand!" That is true. No savings bank In the city had any connection with the State, direct or remote." "Then its losses will not affect them In the least!" "No. Their capital is not impaired at all, and there is no cause for alarm as to their suivency. The Fidelity will open its doors for business in the morning, and the others will de the same." Another gentleman with whom the reporter conversed stated that Mr. Haines had known of the weakness of the State, and fearing the resuits of a failure bad been quietly making proparations for a ruu, If there was to be one. He has made no bad Investments, and is said to have $500,000 in his vaults ready to be deals out should it be called for. SYDNEY MYERS. A reporter also called on Sydney Myers, of the Merchants', Farmers' and Mechanics' Savings Bank. The gentleman was found attentively listening to the reading of a late novel, and by no means did he seem to be perturbed. The scribe, upon making his business known, diverted the gentleman's attention in a moment, and secured au Interview which may throw some light upon his expectations. He had heard, be said, a street rumor, that the State Savings Bank was in trouble, but he did not believe it. " But," added the reporter, " the institution has made an assignment, and will not open tomorrow." don't believe Ith' was his response, " for I cannot conceive of any cause for it." 'But, as a matter of fact, It has closed." "Now can that bel The President in awar." The reporter was not authorized to explain. but ventured the query as to what effect the closing of the State Savings would have on his bank. Ille response was, "None whatever. My deposits for several days, thatanding the street rumors, have been greater thau the drafts." But, supposing that the State Savings he closed, and, as Incidental (hereto, a run should be made on your Institution, what then?' Well, I have been In business fifteen years, have a perpetual charter, and am doing a sale business." Could you pay all demandal' would not answer that direct, but I am safe In any emergency. was raised a sallor, and in storms all wo have to do is to trim our sall accordingly.' " Aud this is u storm! "I do not anticipate any trouble." But, suppose a run should be made on you!" Well, I should view the situation and act accordingly." " Would you take advantage of the sixty-day proviso with depositors! "I should pay the claims of the really needy, or enough to satisfy them." " Well, what shall 1 say generally, as representing your conduct In the crent of a runbeing made ou your bank "You can say that I have bad sufficient experience to know my business, and that uo one used anticipate any trouble. I regard the out look very much as the old saltor does the coining of a squall. 1 shull trim my sails to suit the wind, and in any event I do not anticipate disaster. My loans hare been carefully made, and on short time, and all will be right." SPENCER'S UNPOPULARITY. It scens that the bankers of the city had no sympathy for Mr. Speucer personally. He had always held his head pretty high,-kept aloof from the other banks-and they had no dealings with him. When be applical to them for aid, they were disposed to help him only on one ground, and that was to avoid it run on their own instku (lous, as one was probable If he were compulled to lay down. It is said that even Dr. Smith, the Vive-President of the bank, did not know as much about Spencer other people claimed to know, and that the Doctor was actinz in good faith all the while the negotiations for asuistance were going on. He, however, it is understood, heard things about the President which convinced him that it was uscless to attempt 19

6. September 1, 1877 Eureka Daily Sentinel Eureka, NV

Article from Eureka Daily Sentinel, September 1, 1877

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The Bank Troubles in Chiengo. CHICAGO, Aug. 30. Except a small run on the Fidelity and some of the other savings bank-, there is no unusual stir in banking circles today, and no excitement ⑉ any quarter. None of the officers of the State Savings Institution have yet turned up, and the assignee is so busy examining the affairs or the bank that nothing can be learned as to this morning's developments.

7. September 1, 1877 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, September 1, 1877

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There is every indication that the excitement among savings-bank depositors, excluding those ruined by SPENCER'S Institution, has passed. Affairs at the Fidelity and the Merchants', Farmers' & Mechnnics' have assumed a more business-like shape, and feverish depositors no longer clamor in crowds for their money. A feeling of security is taking the place of distrust, and n spirit of confidence has numped the Inte anxlous desire to pull out money regardless of consequences. The panic is over, what panic there was, and the crisis is passed. The banks have taken steps to secure their patrons, and this has encouraged them to remain quiet in the future and trust the finan. cial powers that be.

8. September 5, 1877 Ottumwa Weekly Courier Ottumwa, IA

Article from Ottumwa Weekly Courier, September 5, 1877

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All the Officers Missing. CHICAGO, Aug. 30.-Beyond a small run on the Fidelity and some of the other savings banks there is no unusual stir in banking circles, to-day, and there is no excitement in any quarter. None of the officers of the State Savings have yet turned up and the assignee is so busy examining the affairs of the bank that nothing can be learned from him as to this morning's developments.

9. September 23, 1877 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, September 23, 1877

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DON'T CROWD IT. To the Editor of The Tribune. CHICAGO, Sept. 22.-Regarding savings banks and the best method for their conduct during the present crisis there is a wide divergence of opinion amongst the people and the press. Depositors generally and the Times newspaper particularly advocate a method of settlement by the principal surviving savings institution (the Fidelity) alike at variance with the common interests of that bank and its creditors. In this matter the Times is ultra; it condemns the recently enacted by-law of " Haines, Williams & Co." as unauthorized, inimical to the best interests of the depositors, contrary to the "laws of Illino's and of God," and by implication as tantamount to a confession of insolvency. A consideration of the Times' propositions will show that they are badly taken, and that their advocacy neither aids the bank in its present situation nor secures to depositors either money or confidence. That the by-law in question is unauthorized remains to be proven: the laws of this State and of the Deity are both silent, neither condemning is nor indorsing it. That the bank has made such a by-law is prima facie evidence of its right to do so; and, if limiting draits to 10 per cent per month will prevent the runs that threw the State and the Mechanics' into the hands of a Receiver. ought not the depositors to ratify the of contract made by the party of the first part Had the Fidelity simply required sixty days' notices, a portion of its depositors would have been paid in full, the cash resources of the bank would have been speedily exhausted, and the natural and inevitable consequence of a failure, -a Receiver and the attendant expenses,would have delayed a final settlement beyond the time that, under the operations of the bylaws so objectionable to the Times, will see every depositor equitably served. If the Fidelity is solvent, its policy is indubitably for the best interests of its depositors. If the Fidelity is insolvent, its policy is certain to secure the most economical and the quickest settlement. If the depositors petition for a Receiver they will take the management of the bank's affairs from the hands of those most capable of realizing the greatest number of cente on every dollar due depositors. T. B. SEAVEY.

10. September 25, 1877 The Cincinnati Daily Star Cincinnati, OH

Article from The Cincinnati Daily Star, September 25, 1877

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The City of Unfortunate Bankers. National Associated Press to the Star. CHICAGO, Sept. 25.-The condition of bank affairs in this city since the closing of the F.delity, yesterday, and the legal proceedings taken for the appointment of a receiver, still continues to excite the deepest interest throughout the city, and the result of the numerous failures is being daily lelt by the banking institutions, who are hourly receiving notice from depositors to the effect that they desire to withdraw funds. The condition of affairs at the Fidelity is not encouraging to depositors. The amount due them is over $1,370,000. It is almost impossible to give au estimate value of assets.

11. September 25, 1877 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, September 25, 1877

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for Tuesday and the Receiver be selected Wednesday. Mr. Merriam thought the injunction would be a great inconvenience without the Ileceiver were appointed at the same time. There was a very large amount of money on special deposit in the vaults, and he supposed the bank and the deposit-vaults were connected. Hence, If the injunction alone were issued there would be no one to handle the assets and to enable special depositors to get their funde, etc. Gen. Stiles hoped the gentleman did not suppose that the special deposits were a part of tlie assets of the bank. Mr. Merriam sald "No," but they were controlled by the bank officers, and they could not be got at. Mr. Jewett-Not necessarily. Gen. Stiles said if his watch was there he could go and get it, and the Court would not Interfere with him. The recommendation of Mr. Moran accorded with his views. No man could be chosen Receiver who would be more generally acceptable than Mr. Mason. Mr. Plummer remarked that, in order to administer the assets, the Receiver should be a thorough, active business man. He knew of no one better qualified than Dr. Turplu. He understood that certain things had been done at the bank which were not strictly straight, and a Reciver should be put in charge of its affairs without delay. Mr. Jewett said he had the misfortune to represent an unfashionable, if not a disagreo-able, clicut-one that people probably would be disposed to censure severely; but he thought he (the speaker) had been long enough in the city, and was well enough known, at least by his professional brethren, to be able to say that, so far as he had had to do, or might have to do, with advising the officers of the bank, he would counsel neither waste nor the Improper management of the bank's affairs. As soon as he had received notice that the application would be made he had told the officers of the bank to close the doors, because, if the injune-tion was granted, it would relate back to the date of the notice, and they could do nothing. It was true that there were a large number of depositors who would bo anxious about their money. It was proper, therefore, for him to state that as he under-stood it, there had been no squandering, no misappropriation, no stealing, nothing per-haps more serious than misfortune in the man-agement of the bank. There was money on hand at this time, and when Mr. Evans said that he was told by the officers of the bank that they would run on and continue to pay out money till November, he stated what nad been sald to him (Jewelt), and what he (the speaker) believed to be the fact. But that would not answer the purpose. The few thousand dollars that could be doled out to the crowd over the counters for sirty days umounted to but little, and he had advised that it was better for the bank to suspend while it had funds and assets which could be converted into money and distributed among the creditors pro rata than to go on a few days, and finally be compelled to stop, as it would be Inevitably, as every bank in the city would be compelled to if all the moner in it was drawn out in a slugie day or a week. The condition of the bank was this: It had received money and loaned it out. It must do that, and loan it in such a way that It cannot be converted into cash at any time at the option of the deposttors. A LANGE AMOUNT HAD BEEN PAID OCT. Perhaps it would have been better to have stopped weeks ago, but there was always hope in the mind of inan; and the officers of the Fidelity hoped and hoped, and expected for a long time that the run would cease, and that they would be able to go on with the ordinary amount of money which they had, and which they always kept ready for depositors, until the disturbance was over and things became qulet. There was a large amount of assets of good assets; and while the bank deemed it advisable, and he also us the attorney, that it should now stop, and a Receiver be appointed, and its allairs wound up by the Court, he did not mean to be understood that the depositors were not going to get a very large proportion of their money. They could not get it in a day, or a weck, but no believed that a large portion of it would be realized, if thnes changed, and the property and asects of the bank were safely converted for tho benetit of all the parties in Interest. If too much hasto were not used, and judgment wero exercised in the disposition of the assets, a very large proportion, if not the whole, of the depos its would ultimately be paid. It seemed to him, therefore, that everybody ought to encourage this view of the situation so far as practienbie to aliny the excitement which might grow out of the fact, if it was a fact, or the assertion of the fact, that there was nothing in the bank with which to pay. As to the appointment of a Receiver at once, he would not press it either way. He was not in a position to do it, representing the party for whom the Receiver was to be appointed. He had suggested Mr. Derickson, and would say that he had no connection with the bank, directly or indirectly. He had named him on account of his fitness. Whoever went to the bank as Receiver ought to go as soon as he conveniently can, since it was doing nothing, and he could safely say the of-ficers would give up everything. Judge Van Buren concurred in the application of Mr. Evans for time. There was no necessity for unseemly haste. The officers of the bank would take care of the nasets. His preferenco for Receiver was Dr. Turplu. A day or two ought to be granted. It looked bad to burry on the matter, as it was not usual. The parties should be given an opportunity to look around and find the most acceptable man. # THE COURT REPIJED that he was personally acquainted with nearly all the gentlemen whose names had been mentioned, and he was quite well satisfied that any one of them would attend to the uifairs of the bank fairly and squarely, and for the best inter-ests of all concerned. He thought counsel owed it to themselves, to the community, and to their clients to not do or say anything calculat-ed to create the least publie excite-ment, and he was satisfied that they would do all they could to allay any such excitement. Ifu lind not made up his of mind as to which of these five gentlemen named he would appoint, and was not ready to do it in a few minutes; although if it were absolutely necessary he could go to work and inake the ap-pointment. A few hours' delay would, how-ever, be tar preferable. 11 some man could go Into the bank as Receiver who would have the support, and whose appointment would have the approval, of all concerned, he could have a much easier tune in closing up its atlairs, and could do very much better for the depositors, than if there was any feeling of prejudice, any hostility, towards him. Under the circumstances, the Court felt disposed to afford a little oppor-tuuity for consultation among the lawyers for the purpose of seeing it they could not agree upon one man. But fu this connection he would like to have it understood that he did not sur-gest the calling of a town-meeting. He did not think that was the proper way to get the name of a proper mau to take the Recewership of such an institution as this. The depositors did not know as much about this question us thu lawyers. In fact, the reason the de-positors bad employed the lawyers was because the latter knew more about the matter than they did. In making an order for thu appointment of a Receiver he should insert a clause which he had found very useful in such cases, the effect of which was to require the Receiver to make a report of all the assets at the very earliest possible day, so that ail concerned might know what they had to realize upon. The severul attorneys chents had left the matter of selecting a man 60 those attorneys, and upon them devolved the duty of agreeing upon one name if possole. He would therefore suggest that couus meet and consult over the matter and see if they could at not agree upon a man in whom they would all have contidence, and with one everybody in-

12. September 25, 1877 Chicago Daily Tribune Chicago, IL

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Inquisitor could venture. Two hardened members of the craft called him to one of the windows for the purpose of trying their luck again To a request to know about the cash on hand, Mr. United returned the ohl, old answer, and when told that the object of asking the question was to get at the prospect of nn early dividend being declared, replied that he supposed It would not be long before the depositors got something. Meagre ns the information was, It had to suffice, for up went the window, and during the rest of the afternoon Mr. Halnes could on no account be duped into holding further Interviews with the reporters. GOOD NEWS. Along about 4 o'clock one of the hors con+ nected with the bank rushed in and met Mr. Haines, Mr. Smith, and others with the ex. claination that be had some " good news for them. Good news," asked Mr. Smith, nervously, "what's that!" "Judge Moore nin't a going to appoint any Receiver. The depositors came In and said they didn't want anybody to run this bank but Mr. Haines. Mr. Smith said he didn't believe it. There must be some mistake about IL As for Mr. Hatues. Lic was soon afterwards scon to leave the place with Joe Dixon as an escort, and the presumption was that he was heading for the court. One of the Directors, Mr. Frank B. Tober, was appealed to for information. Now Mr. Tobey is a most obliging gentleman, but on this occasion, and this occasion only, be had decided not to say anything about the bank's actual condition. The reporter did learn from him, however, that he had a small amount of stock in the institution. And now for the plece of information which redeems Mr. Smith from the otherwise certain verdict which the reporters were ready to pronounce against him. to-wit: that of being an Individual whose penchant seems to be to knock the best-laid Interviewing schemes in the head. It all came about In this way: The reporter was standing around with Mr. Tobey and it brother scribe, when Mr. Smith came along and juined In the conversation. There is one thing,' said he, " that can't be said about John C. Haines. Hehasnotbeen dishonest. There may have of judgment, Indiscretions you might perhaps call them, but the man doesn't live who can bring against bim the charge of dishonesty. It has been said that his all is In this bank, and I know It to be true, As early as the 19th of September, John C. Haines deeded all his property, his homestead, everything, to this bank. lic owed the bank some money,something for a part of his stock, for which he had given his note and some other money which he got from the bank subsequent1y. When he saw that personal sacrifices were needed, he drew up a deed of all his property to the bank, more than enough to secure his obligations. and the deed was to have been recorded this morning. and would have been recorded but for this sudden movement for an injunetion and the appointment of a Receiver. Why, they fully expected to go on with business as usual this morning. and would have gone on If they hadn't been stopped by the Interference of the Court. The reporters assured Mr. Smith that the public admitted Mr. Haines' honesty to he unImpeachable, and were convinced that lile misfortunes were wholly owing to sbrinkage in values, and perhaps rather bad errors of Judgment In making his Investments. They are all honest, replied the little old man. who had been rather unconsclously, to himself, drawn into making a statement to a "chiel takin' notes," In his head, and who was sure to "prent 'em." Yes, sir, every one of 'em is honest to the backbone. Why, do you know what Charlle Haines dkl awhile ago? THIS mother has a savings account here of $1,000. Well, when the run commenced and was the chief topic of conversation everywhere, Mrs. Haines one day said to Charlie, What shall I do with my money, non: draw it out?' Never, mother. Keep It there, and If you want it, take your place in the line along with the other depositors. It shall never be said of me that one of John C. Haines' boys took ndvantage of the position be occupied in his father's bank to draw out money for his mother while other depositors were obliged to stand their chances in the ordinary way. No. Keep It there, mother. And It is there to this day. And the above is only another instance of the sterling virtue of honesty and honor which is everlastingly to Charlle's credit. It is of a piece with his carnest advice to a poor depositor on Saturday not to sell her bank-book, whatever she did, but to keep It at all hazards. In that bit of advice he effectually put a stop to the silly rumor that the bank otlfcers were trying to buy up claims, and practically assured the public that his only Interests were the depositors' interest, and bis only aim to preserve and maintain lils character for upright, honest, manly bearing. There isn't a depositor in the whole 7,500, or more, who feels the weight of this great public calamity any more deeply than Mr. Halues' sons. Every Interest they had in the world was to make the bank pull through, and they still believe it could have been done If the institution had been allowed to run on. The reporter hung about the place until about 6 o'clock, when everybody left except the guardians of the safety-deposit vaults, who remained at their accustomed places and were peered nt by the curious oyes of the gaping crowd, who would have fancled nothing better than to be allowed to go in and get at the treasures locked up in those from strong boxes. DURING THE EVENING occasional crowds of anxious depositors were seen to assemble around the closed doors of the Fidelity forthe purpose apparently of exchangIng experiences. and with the hope of obtaining consolation. They were not permitted to remain long at a time, for a pollceman was over on hand with the peremptory order to Move on." The majority of those who gathered together would have liked very well to Move on," but the move would have been in the direction of the-eafety-vaults. Once in a while some talkative individual would take the crowd by the ears, and endeavor to reason the matter with his' hearers. It is not easy, however, to reason agreeably to an audience of angry and hungry men and women, and the philosophers who voluntecred such a thankless duty soon found It convenient to go elsewhere. Shrinkage of values " and all the other excuses evoked from the listeners only an ominous growl, and were regarded as line-spun sentiment. All very well,' sald one of them "to tell ns about unfortunate investments, and so on. Who was to be-beneilted by these big risks If they turned out well! Not the deposttors. They only had their chance of 0 per cont on their savings. But who loses by your shrinkage of valuest Not John C, Haines, you bet. Only the depositors. The risk seeins all on one alde." When this kind of argument began to attract attention, the stentorian voice of the pollceman was heard to say, Move on," and 60 the sidewalk was kept reasonably clear during the evenlug. R. P. DERICKSON. HIS EXAMINATION or THE BANK. From Mr. IL P. Derickson the following statement of the assets of the bank as they stood Friday evening was gleaned yesterday. Of course, the compliation was made from a somewhat hurried examination of the books, but It will be found approximately correct, and is more complete and satisfactory than any which

13. September 26, 1877 New-York Tribune New York, NY

Article from New-York Tribune, September 26, 1877

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UNEASINESS IN CHICAGO. NOTICE GIVEN TO THE SAVINGS BANKS BY DEPOSITORS. [BY TELEGRAPH TO THE TRIBUNE.| CHICAGO, Sept. 25-To-day there seems to be more evidences of a panic among the banks than at any time since the recent suspension of the State Savings Institution. The collapse of the Fidelity, the next in importance in the city has, created more real excitement among both bankers and business men gener ally than was noticed. A thousand rumors are now affoat relative to the present condition of other savings institutions in the city. It is a matter of difficulty to settle one's belief upon what may be the present safety of any particular bank, but botn brokers and depositors a e fighting the matter over the counters and the correspondent of THE TRIBUNE has learned that almost every savings bank in Chicago has received notice from its depositors to-day stating that they desire to withdraw their funds as soon as possible. Within the last ten days this same proceeding brought financial ruin to two banks. It is not perhaps, 100 much to say that two more will soon totter and fall. Their ruin is hourly expected.

14. September 26, 1877 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, September 26, 1877

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THE LIVE BANKS. PURBUING THEIR EVEN TENOR. The closing up of the Fidelity has thus far had no noticeable effect upon the other savings banks; that is, the applications for money have not increased to such au extent as to Indicate alarm on the part of depositors. Some are paying in full, as the Illinois Trust, and Hibernian, and others, the German and Chicago only upon notice, though if the account is small and the money actually needed it is usually handed out. That confidence in savings banks is not wholly gone Is shown by the fact that all those whose stability has not been questioned are receiving deposits; and, 50 far as can be learned, all the remaining ones are fully able to weather the present simoon. The Directors of the Illinois Trust passed & resolution yesterday to reduce the rate of interest to 4 per cent after the 1st of January. The Hibernian officers propose doing the same. The reason for such action is this: At the rate of interest for which money can be safely loaned now, it is impossible for a savings bank to pay over 4 per cent, and run "strong" and make anything for the stockholders. To run stroug, & savings bank must always carry 50 per cebt of its deposits in cash or la a class of securities which will bring cash at any time. Governments will not net over 4 cent. Such bonds as Cook Counties, Chicago sixes and sevens, and others equally as good, will only det, considering the premium to be paid for them, from 01/2 to 5% per cent. Including the cash that It is necessary to keep on hand, and which draws no interest, the luvestment of 50 per cent of the deposits in first-class bonds will yield the bank only from 41/2 to ** per cent interest. The remaining 50 Der cent of the deposits could be loaned safely and Judi-

15. September 26, 1877 Chicago Daily Tribune Chicago, IL

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SUEING STOCKHOLDERS. GOING FOR HATNES, GAGE, AND SHUFELDT. The savings depositors in the broken banks are learning their losson with wonderful rapidity. After the State Savings Institution went under, It was A week or more before any suits were begun against its stockholders, but the Fidelity had not even had its funeral services performed before the President, J. C. Baines, the Vice-President, Jared Gage, and one of the stockholders, If. n. Shufeldt, were sned. The suit against Unines was In favor of Emma M. Speth, to recover $4,000, and Shufeldt was made defendant in seven cases; one by Edward J. Walsh for $300; by Elizabeth Adams for $500; by Annie M. Brown for $700; by Carrie W. Ball for $3,500 (In trespass); by James E. Rood for $500; by Joseph Kuncers (In trespass) for $1,000; by John Bernbardt (In trespass) for $1,000; and by Wenzel Lokotzum (In trespass) for $1,000. Some of the suits are in trespass as for wrongdoing. others in assumpsit as for a broken promise, but the object in all is the same-to recover the amount the respective depositors had In the bank. The suit against Jared Gage was by Mary II. Teed to recover $1,000. No one an yet has deemed It worth while to make Sydney Mycra defendant, probably deeming that the "bee-hive" did not have enough money to pay for the getting. Since the depositors struck the lead in the State Savings they have worked It pretty well, and D.S. Smith and Turner and Ray calculate reasonably on A visit from the Sheriff about three times n week. Just how much this lead will pan out remains to be seen. A disgusted depositor, not unknown to the newspaper world, dropped into the Superior Court Clerk's office yesterday morring and saw the suits just begun against Shufeldt. " Busted again," he exclaimed; that's the man I wanted to suc." Then he began figuring up the clerk's costs, the inevitable appeal to the Supreme Court, etc., and concluded it would not pay. A new departure Was taken yesterday in regard to the State, and some of the depositors, having seen that Turner. Ray, and Smith were getting too large a share of attention. kindly changed off. They selected Robert Bayard, and five suits by attachment were begun against him; one by Patrick Dinan for $3,433.28, another by Charles Frances Kallstrom for $1,130.85, the third by Emma E. Hall, who claims $1,211.53, the fourth by H. A. Towner for the use of Elizabeth W., Martha R., II. A. Towner, Jr., John DeK., and Elizabeth M. Towner to recover $718.88; and the fifth for $2,500 by Carl Brenner. THE STATE SAVINGS. The recent suits by numerous depositors against the stockholders of the State Savings Institution to recover their claims that way has awakened the Receiver to the fact that he is somewhat Interested in having the stockbolders pay what they are liable for into the bank, BO that all the unfortunates may share alike. To accomplish this be tiled a petition yesterday. After stating the amount of the capital stock, $500,000, he sets out that by Sec. 9 of the charter of the bank each stockholder ts individually liable as to the trust and savings funds to the amount of his stock. for all losses or deficioncics that occur while he is astockholder, and for a period of six months after be line sold his stock. The following are the persons liable under this clause, with the amount of stock held by them, respectively: Shares

16. September 30, 1877 The New Orleans Daily Democrat New Orleans, LA

Article from The New Orleans Daily Democrat, September 30, 1877

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UNEASINESS IN CHICAGO. Notice Given to the savings Banks by Depositors. [N. Y. Tribune.] CHICAGO, Sept. 25.-To-day there seems to be more evidences of a panic among the banks than at any time since the recent suspension of the State Savings Institution. The collapse of the Fidelity, the next in importance in the city, has created more real excitement among both bankers and business men generally than was noticed. A thousand rumors are now afloat relative to the present condition of other savings institutions in the city. It is a matter of difficulty to settle one's belief upon what may be the present safety of any particular bank, but both brokers and depositors are fighting the matter over the counters. Almost every savings bank in Chicago has received notice from its depositors to-day stating that they desire to withdraw their funds as soon as possible. Within the last ten days this same proceeding brought financial ruin to two banks. It is not, perhaps, too much to say that two more will soon totter and fall. Their ruin is hourly expected.

17. September 30, 1877 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, September 30, 1877

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Judge Otis had nothing to say, when getting along slowly, but didn't know Dr. was should make a report to the Court. he Receiver of the Fidelity, had no special still information Turpin, to give up. The clerks were in working away at the books, getting matters Turshape for a balance, and, as for Dr. for proper himself, he was answering questions mind, everybody pin who had a burden on his and wanted to know what the proswere for dividends and the removing most pects of that burden. Besides this labor, trying to a man's patience, in that it was necesto repeat things something less than of a thousand sary times, Dr. Turpin bad to take care the bank's correspondence and clear the decks did in that particular. The result was that he the not go into court during the day and ask for appointment of experts to appraise the property be which the bank has mortgages. This will attended to, most probably, to-morrow morn- of ing. The scheme to reorganize the bank sort rested yesterday. A few more depositors put down their names, but it is beginning to be apparent that 7,000 depositors form a body of very to unwieldy proportions. It has been proposed them together in a public meeting, but no definite steps have been taken to that end. Receiver Ward had nothing to report yesterday, either. He is quietly pegging away at his and nothing definite can be known until work, gets ready to make a report to the Court, which he he Lopes to do by the end of this week, deif possible, a little sooner. A number of allow desire him 10 ask the Court to bank positors the real estate belonging to the be sold to a stock company of to depositors who should pay for it with their It credits at the rate of 100 cents on the dollar. is claimed that such a company would gradual- in dispose of the property at good rates, and of end the creditors would make more out thereal the estate than the Receiver, who, if he sacri- sold now, would have to do 60 at ruinous fices. The trouble about any such moveis that it is hard to this get ment majority of depositors to agree to it. and as scheme may fall to the ground very much the one to reorganize the Fidelity bids fair to unless it is pushed with more vigor, INVESTMENT CERTIFICATES. The Committee appointed at the Palmer House meeting of those interested in Bee-Ilive investment certificates submit the following re port: CHICAGO, III., Sept. 20. To the holedrs of inrestment certificates in the Merchants'. Farmers', underMechanics' Sarings Bank: The public signed, and a committee appointed at a Wedheld at the Palmer House on neeting evening. the 26th inst., by those Merchants', holding investment nesday certificates issued by the and Farmers'. and Mechanics' Savings Bank, secured by trust-deeds held by George in beChandler. which are Eeq., trustee. acting certificates for and were issued. half duty of all beg we persons leave called to upon to report whom Mr. that Chandler said in the discharge on Saturday for the of our the :"0th inst., at 2 o'clock, the afternoon. of examining into the condition of of cerpurpose and found that the amount and trust, outstanding were $93,300. titicates Chandler had in his hands promissory real Mr. secured by trust-deeds upon to notes situated mostly in the City of Chicago. all estate, amount of over $95,000. The notes were examined the by us, and we found his representations number regard to the same all correct. A large due in these notes are overane. and those not will of become due within the period of one year. also consulted with Mr. Chandler settlement as to the of We to be pursued by him in the all methods such his trust, steps and as the will are securities be satisfied necessary as that speedily to he enable will as possible, before take him to a realize but some upon time must necessarily clapse full settlement can take place. M. J. HURLEY, ELLIOTT ANTHONT, J. B. DUDLEY, Committee. THE INJUNCTION SUIT brought by Judge Otis, Receiver of the State Savings Institute, to restrain further prosecu- to ion of the stockholders by depositors, storday was

18. November 4, 1877 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, November 4, 1877

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THE BROKEN BANKS. NOTHING PARTICULARLY NEW. At the broken-up banks yesterday there was little or no news. Receiver Turpin, of the Fidelity, said that he don't know anything, and therefore had no inclination to give it away. He had been at work all day, but there was nothing new. Judge Otis was mad; madder than a hare of March. He had been subpened to appear before the Grand Jury, and had gone over to the North Side with 125 pounds weight of account books under his arin. Then the Jury adjourned, and Otis' occupation was gone. Receiver Ward had gone out to lunch, but had left behind him a clerk who was not afraid to open his mouth. But ne had nothing to say further than that the headquarters of the bank would be forthwith removed to the Marine Building. on the corner of Lake and LaSalle streets. where J. Y. Seammon once had a bank, now, alas! bursted. Said the clerk: "For God's sake don't let them know that we have moved, for if you do we are gone up." Then the reporter came away.

19. November 15, 1877 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, November 15, 1877

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Greenbacks at the New York Stock Exchange yesterday closed at 97½. A petition to the United States Senate, praying that body to pass the bill to remit taxes upon insolvent savings banks, introduced by Senator Davis, of Illinois, was yesterday forwarded to Washington from this city. It bears the names of Messrs. Felton, Derickson, and Hutchins, a Committee representing the Fidelity depositors; of Dr. Turpin, Receiver of the Fidelity, and Mayor Heath, and City Comptroller Farwell. In view of the facts that are truthfully represented in the petition, and of the character and standing of the signers, there is little reason to doubt that Congress will grant the desired relief.

20. November 20, 1877 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, November 20, 1877

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until their full worth can be obtained, and by keeping down expense in closing the business. the estate should realize to the depositors in to 80 per cent: and we take this opportunity to warn depositors against the sale of their accounts at n much less figure than the above indicates. Todo 80 will be a positive loss to themselves The Receiver reported liabilities were S1. 315,034. 23: the Receiver's reported assets were $015,637. 21: showing a deficit of $388,516.00 Items In the assets of the Receiver might safely have been placed much higher by the appraiser, en. pecially of the real estate, and many of the nocalled worthless or Impaired Indebtedness will prove to be of more than estimated value. In fact, we think that there should he realized from this Increase a greater som than sufficient to pay all the expenses of closing the estate. Take, for instance. the bank buildings and mafe-deposit Yauits, The property in located in that part of our city where every day It inust become more and more valuable. regardiess how It may be rated by appraisers. The deposit buildings, bank building, and vaults have cust a large amount of money: the vaults are adequate. the demand for them Increases every day. and their PROCESS na an Institution of necessi. ty In Chicago has been secured, and. an shown by the answer of the Receiver to our Inquiry, they now obtain an income equal to all expense of their care, and 0 per cent upon the valuation of that property. This enterprise. on the part of the bank officials. was well devised. and would have nitimately been n surree of great profit to the bank. The property on LaSalle street, we think, has been estimated too low. It is located directly opposite the new Court House, now in process of construe tion, and must increase in value without doubt: also the property on Madison street, corner of Fifth avenue, line been estimated at $21,000 less than was paid for It by the bank. Few locations In the city are better than this. Similar considerations govern In much of the other real estate Inventoried: and In the hands of an owner not coin. pelled to sacrifice by immediate wale. would prove of far greater value than in how anticipated As to the SouthChicago property. theCommitteothink that from the Inception of the loan the transaction has been an unfavorable one to the bank, embarrassing its affairs much. and liable to cost Its depositors heavily if not handled with extreme good вение. There is now # probability of an Improvement of the selling value of the lands at an early day, for reason of Improvements that are being made near thereto, and a restoration of the fron works interests. Your Committee have suggested that this and other real estate. which can only apprectate In selling value by the lapse of time. be retained until reasonable prices can be obtained. In the estimates of the Receiver of amounts of notes and net values of same, be line only taken face values, and not added accumulated Interest, as should have been done where securities have been ample. This, also, will Increase the assets of the bank to a considerable extent, and, as all such notes continue to draw interest, much gain will be the result. The net value of the bonds and mortgages held by the bank in placed at $261,050.23: of this amount there was due at the time of making the report of the Receiver $86,070.02 $8,820 will be due prior to Jan. 1. 1878: $11, 525 from Jan. 1, INTH. to Jan. 1, 1870: $7,572. 16 from Jan. 1870, to Jan. 1, 1880: and $127,357.05 will be due during the years 1880, 1881. and 1882. The collateral and demand loans are very largely due or will become due at an early day. and your Commuttee not only think, but are advised by the Rdceiver. that there will be a second dividend declared at no remote day. The Committee think that the best Interests of the creditors will be subserved by the sale of all securities where the date of payment 14 later than Jan. 1. 1878; provided the same can be sold without encrifice. As much prejudice had resulted from the action of the bank during its last month' history. in pay. ment of claims. the Committee examined its Journat for the month of September, Its recelpts during that month- 1st to 22d, inclusive -were $21,801. 18: 11a payments were S100, 142.03, muchof which was by male of real estate and securities in settle. ment of accounts. The Receiver has promised that If he shall find that any injury has unlawfully been done to the depositors by any settlement he will cause the same to be brought to the attention of the Court. As tonching the cost of closing the business of the corporation. your Committee made verbal inquiries of the Receiver, and such written ones DM are hereto appended, and he states that be cannot make an estimate that would be reliable. We believe him to be honestly workIng In the Interest of the creditors, but are of opin. ton that he should have given such statement of the cost of his work as would better enable 114 to estimate the dividend which depositors should oh. tain. Very properly. depositors recensitive unon this subject. Creditors have been PO frequently wronged. an they think. by the extravazance and corruption of Receivers that the creditors of the Fidelity. as the only parties In Interest. think they have right to know from the Receiver somewhat of the expense be shall make In settling their burl. nere and returning to them their moneys. We think he will not neglect your Interests in the col. lection of the assets, and he should receive n good salary for his time and responsibility while 80 doing: but certainly he should state the maximum he shall require. and any what compensation he shall allow to his attorneys and connsel. The thousands of depositors of the bank. many of whom have their all In his hands, and are to-day In necessitous circum- tances, should be advised as to these inquiries, that they shall have no cause for anxiety In this matter; and without the information nsked for. every account for attorney's fees or compensation to Receiver will be serutinized with great *ensitiveness. The Receiver tells us that It in his purpose to keep the expenses down to the lowest possible figure consistent with the heat interests of the estate, but while we realize the fact that creditors can obtain comparatively little Information as to expense until his last ruport shall have been made to the bank, we can only have full confidence when he shall have given use frank statement of his proposed expense. To the Receiver we are indented for most courteous treatment as n Committee, and to the officers, also, for the frankness with which they have given un information. We have appeared hereto the questions submitted to the Receiver by the Committee and his answers thereto, which are to be regarded as part of this report. Respectfully sumblited. CHARLES E. FELTON. A. P. DERICKSON. E. HETCHINS. QUESTIONS PUT TO THE RECEIVER. Following is the report of the Interview hetween Dr. Turpin and the Committee. III which the latter Is always the questioner and the Recelver the respondent: Q.-In your report to the Court are Ibere any an. acts that are liable to depreciate If not disposed of at an early date, and, If $0, blease state what those assets are? A.-1 to not think of anything. Q.-Aro there not many assets which are liable 0 to appreciate in value If delay 10 made in their enle? A. think so: Receivers should have ample time to negotiate sales. am looking forward to better times at no for distant day. your report of securities have you given face value of indebtedness, or have you given face value with unpaid interest added? A.-1 have given face value only, except In case of past-duo coupons. Q.-Nos. 143. 145. and 147 Randolph street, Mr. John C. Ilaines says, cost about $315. 000: your estimate was $102. 000, shrinkage of n $123,000. By retaining this property for as time, any one or two years, you not think it might be sold for at least $210,0001 A.-1 think from $220, 000 to $210,000. think that the Safe De. pository is appraised too low, In this, that nothing was allowed for the good will of the business. think the good-will a worth at least $25, 000. and that this sun, 000 should be added to our valuation. of the bank building, think the appraisors' value about the real alue. or the Safe Deposit building, think it is the best property for its rating in the City of Chicago on account of pro. Income. spective 7 Q.-May not the Income from this property now be sufficient to pay expenses of Its care, taxes, etc., and u per cent per annum on your valuation? A. FO far as the Safe Depusitory, No. 143 Randolph street, is concerned. Q.-No. 78 LaSalle street Is directly opposite to the main entrance to the new Court. House. You have placed its value at $18,000. The size of the lot is ways by 80 feet: is not that property worth $1,200 per funt, or what you think it will be

21. November 29, 1877 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, November 29, 1877

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THE BANKS. MIL II. W. JACKSON, upon whose shoulders it has been pretty generally supposed the mantic of the Receivership of the Third National would fall, received oillcial notification of lits appointment yesterday from the Comptroller of the Currency, and Inmediately set about the comparatively easy task of securing signatures to lile $50,000 bond. 'Γo many people the amount of the bond might seem ridiculously small, but the fact that the Receiver is obliged to turn over moneys as fast us ne collects them, to the Comptroller of the Currency, will explain why the bond is comparatively in 60 small an amount. At the Central National Mr. Burley still has temporary control. Nothing has been done towards acttling the question whether a Receiver shall be appointed to administer upon the nssets, or whether the bank will be allowed to liquidate. With the appointment of a Receiver for the Third National, Mr. Bank-Examiner Watson's duties at that institution will be measureably lessened, and the Central will probably receive more of his attention. THE RECEIVERS OF THE VARRIOUS SAVINGS BANKS did pretty much as usual yesterday, the only thing to relieve the monotony being the prep. arations for Thanksgiving. All the banks will be closed to-day, and the wearled Receivers and their more wearled assistants will be found at their homes, or at the houses of their next best friends, receiving other good things than money from debtors, which can be gotten, If at all,' on common days. Judge Otis was out when the reporter called at the State Savings,-probably on au expedition to the game dealers on South Water street,-but one of has assistants touchlogly remarked that to-day would be turkeyday, and added, as a sort of secondary consideration, that there were some hopes of a dividend of 10 per cent in January. At the Little Beenive, Receiver Ward, Mr. Horton, two of the Depositors' Combittee, and the clerks fully corroborated the truth of the rumor that turkeys would in all probability be laid on the altur to-day, and added that there was no ucws. Nor was there any. The two depositors aforesaid were apparently at a 1088 to know just what they wanted to know, and frankly admitted that they had not found anybody who could tell them. A short time wasspent in looking over books and papers, but visions of to-day were too much for them, and, in the language of the local chronicler, " the meeting then adjourned." At the Fidelity there Was lyde of . crowd than usual, but those

22. December 12, 1877 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, December 12, 1877

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Receiver three days after. He has authority, on the order of Court, among other things, to com- pound doubtful debts, and he asks for the direc- tion of the Court as to the disposition to make of the following securities: Nov. 21 J. H. Clough deposited in the bank a check for $5,000, payable out of the Union National Bank. He received credit therefor, and the check was refused at the Union National on account of want of funds, and it was charged back to him. Similar accidents happened on all the following checks: Babcock Bros., check for $100; R. B. Cuson, Special Agent, check for $56.43; A. Knisely & Co., $225; Holly, Easton & Allen, $323; Fisher Bros., $221.25; Holly, Easton & Allen, $1,000; McDonald & Stimpson, $100; and Nation- al Cigar Company, two checks for $130 each. These checks have all been charged back to the parties making or presenting them, and they have asked to have them given back to them. All the parties also have balances at the bank to their credit, and none of them are in debt to the bank, except A. Knisely & Co., so that no damage or loss can re- sult to the bank. An order was therefore entered allowing the Receiver to surrender the checks as asked. # THE DEAD SAVINGS-BANKS yield little or nothing to the newsgatherer. Judge Otis wants to sell the State Savings Institution, but neither he nor any depositor is willing to have it sold at too great a sacrifice. The proposed sale has accordingly been abandoned for the present, and the Judge will wait for better days, when peo- ple are more settled on the money question, busi- ness improves, and real estate takes a rise. In the State Savings-Hans case Judge Williams yesterday entered an order allowing the Receiver to sell to James F. Joy, President of the Michigan Central Railroad Company, an undivided 7-24 in- terest in 60.383 acres, being parts of secs. 22 and 27, Township 37, Range 14, owned by the bank. The sale is at the rate of $312.50 an acre, one-quarter cash, and the balance in one, two, and three years, with interest at 5 per cent. The Receiver is also authorized to lease certain strips of land near the above property to the railroad to enable it to get water from Calumet Lake. The petition for the purpose was filed several days ago, and several witnesses were examined to ascertain whether the proposed sale and lease was advantageous. The Fidelity is still paying out that 10 per cent dividend. Something near $100 was doled out yesterday. The big fish have come and get their wealth, but the little ones who had deposits from $1 up to $20 do not press forward with any noticeable amount of anxiety to draw the moiety coming to them. The approach of the Christmas holidays will no doubt suggest to some of them that even a small amount will go a little towards buying presents. What is left after the paying-out falls off to noth- ing will be set apart as a first dividend fund, and kept for those who do not want their money now, but prefer to let it accumulate. The deadest of all the banks, savings or Nation- al, is the Beehive. The voice of the mourners isn't exactly heard in its midst, for "merrier men, within the limits of becoming mirth," than those same clerks and the jolly Receiver, one "never spent an hour's talk withal." But, for all that, there is no news.

23. August 31, 1878 Daily Globe Saint Paul, MN

Article from Daily Globe, August 31, 1878

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CHICAGO JUSTICE. How the Swindling Savings Bank Officers of that City Have Been Punished. It being a year since the failure of the State Savings institution through the dishonesty of its president, which precipitated the other bank failures in that city, the Chicago Times reviews the work accomplished in settling up the affairs follows: of the bankrupt concerns, and sums up as .And now at the end of a year, what is the fate of the twenty-five thousand victims of Spencer, Josaphat, Myers, Haines, and Greenebaum? As miserable as villainy can make it. One dividend of 10 per cent. has been paid by Receiver Otis of the State; one by Receiver Turpin of the Fidelity; none by the Bee-hive, none by the German Savings, none by either of the two smaller swindles. But meanwhile the receivers are all drawing from $5,000 to $10,000 a year out of the depositors' money, and not one of these officials professes to know when as will be able to pay the depositors another cent. Old age has suffered the winter cold and the summer heat while its little hoard has been consumed by strangers. The widow and the orphan have despaired of their petty allowance, and self-denying poverty has learned in a terrible experience that economy may be purchased in heroic ways-for the benefit of bankers and receivers. A few of the swindled victims committed suicide. They preferred death to starvation. Doubtless many were hurried to the grave by the deprivations inflicted upon them, and the impossibility of replacing the small but ample store of which they have been robbed. And what is the fate of the robbers? Spencer's hiaing place has never been discovered. Bulkley and Guild were indicted nearly a year ago, but on account of services rendered the bank, they have never been brought to trial. Myers, as stated, was ndicted but has not been tried. Haines was not indicted; why he was not, since Myers and Spencer were, no one has yet satisfactorily explained, but since none of those indicted have been brought to trial it may have been just as well not to play the farce again in Haines' case. Thieves who steal small amounts are tried and convicted every day. Crime clothed in rags is punished, but against the thieves who have robbed twenty-five thousand people of Chicago of the savings of their lives. the "strong lance of justice" has not even been hurled. If it be, doubtless it will "hurtless break." In other parts of the country, bank thieves have been uniformly sent to the penitentiaries. In Chicago not one of them has been tried. The year has been full of misery for their victims, but in their suffering they would at least have enjoyed the spectacle of seeing the majesty of the law sitting in judgmsnt upon the chief criminals in the greatest crime ever committed in our American city.

24. September 4, 1878 The Princeton Union Princeton, MN

Article from The Princeton Union, September 4, 1878

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CHICAGO JUSTICE. How the Swindling Savings Bank Officers of that City Have Been Punished. It being a year since the failure of the State Savings institution through the dishonesty of its president, which precipitated the other bank failures in that city, the Chicago Times reviews the work accomplished in settling up the affairs of the bankrupt concerns, and sums up as follows: And now at the end of a year, what is the fate of the twenty-five thousand victims of Spencer, Josaphat, Myers, Haines, and Greenebaum? As miserable as villainy can make it. One dividend of 10 per cent. has been paid by Receiver Otis of the State; one by Receiver Turpin of the Fidelity; none by the Bee-hive, none by the German Savings, none by either of the two smaller swindles. But meanwhile the receivers are all drawing from $5,000 to $10,000 a year out of the depositors' money, and not one of these officials professes to know when as will be able to pay the depositors another cent. Old age has suffered the winter cold and the summer heat while its little hoard has been consumed by strangers. The widow and the orphan have despaired of their petty allowance, and self-denying poverty has learned in a terrible experience that economy may be purchased in heroic ways-for the benefit of bankers and receivers. A few of the swindled victims committed suicide. They preferred death to starvation. Doubtless many were hurried to the grave by the deprivations inflicted upon them, and the impossibility of replacing the small but ample store of which they have been robbed. And what is the fate of the robbers? Spencer's hiding place has never been discovered. Bulkley and Guild were indicted nearly a year ago, but on account of services rendered the bank, they have never been brought to trial. Myers, as stated, was indicted but has not been tried. Haines was not indicted; why he was not, since Myers and Spencer were, no one has yet satisfactorily exS plained, but since none of those indicted have been brought to trial it may have e been just as well not to play the farce again in Haines' case. Thieves who steal small amounts e are tried and convicted every day. Crime a clothed in rags is punished, but against the t thieves who have robbed twenty-five thousand people of Chicago of the savings of their lives. the "strong lance of justice" has not even been hurled. If it be, doubtless it will "hurtless break." In other parts of the country, bank thieves have been uniformly sent to the penitentiaries. In Chicago not one t of them has been tried. The year has beer h full of misery for their victims, but in their 0 suffering they would at least have enjoyed the e spectacle of seeing the majesty of the law sit n ting in judgmsnt upon the chief criminals in d the greatest crime ever committed in out d American city.