4436. Franklin Bank (Chicago, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
September 20, 1873
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
07813adc

Response Measures

None

Description

The Franklin Bank (described repeatedly as a private banking company) closed its doors during the Sept. 1873 panic because it could not settle at the clearing house (short a small amount). There is no clear description of a depositor run; contemporaneous reports emphasize it closed for clearing-house/market reasons amid the national panic. The bank subsequently became subject to bankruptcy/receivership and extensive litigation, indicating permanent closure. Dates: suspension about 1873-09-20 (reported Sept. 20–22, 1873); bankruptcy/receivership proceedings appear in October 1873 and through 1874.

Events (4)
1. September 20, 1873 Suspension
Cause
Macro News
Cause Details
Closed during the nationwide panic of Sept. 1873 and inability to settle at the clearing house amid market dislocation (panic triggered by failures in New York).
Newspaper Excerpt
The Franklin bank a private banking company situated on the corner of Madison and Dearborn streets, closed its doors to-day being unable to settle at the clearing house; the amount short was only nine dollars.
Source
newspapers
2. September 22, 1873 Other
Newspaper Excerpt
The Franklin Bank suspended; amount short was only $9000. S. A. Briggs, Vice President, states that their embarrassment is only temporary.
Source
newspapers
3. October 9, 1873 Other
Newspaper Excerpt
Motion to Put the Franklin Bank in Bankruptcy. ... petition against the bank for it to show cause Oct. 17 why it should not be adjudged bankrupt. Petitioner states that during the panic the bank closed its doors, and that on Sept. 22 he went to draw his balance, and was refused.
Source
newspapers
4. October 25, 1873 Receivership
Newspaper Excerpt
R. W. Smith, the Receiver, has an office in the same room with the complainant's attorneys... The officers of the Franklin Bank. ... Gen. Smith, the wly-appointed Receiver, enjoying the butt-end of a cigar. Mr. Briggs, the Manager and Vice-President, and ... Fernando Jones, the President.
Source
newspapers

Newspaper Articles (17)
1. September 21, 1873 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN
Article from Memphis Daily Appeal, September 21, 1873

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THE MONEY PANIC. Continuation of the Excitement in Money Circles in New York, Philadelphia and Washington. Transactions in the Stock Ex change-Table of Comparative Fluctuations Et. erything Shaky. Additional Failures The Stock Exchange Closed, and Transactions Positively Prohibited. The Ten Million Sale of Bonds by the Government Fails Ut terly to Relieve the Panic. Secrefary-of-the-Treasury Richardson Coming Down with his Forty-Million Reserve. The Effect at Home and Abroad Business but Little Affected "Confidence" Coming, Etc., Etc. ADDITIONAL SUSPENSIONS NEW YORK, September 20. -The ded half at UnionTrust com pany past ten Ste are going up down and and lively, been made under the rules. which imply that failures taken place. though only one is known. that of firm of S. B. White & Co Western Union has touched sixty The suspension of the Union Trust likely, will make avoidable balances smaller brokers, and perhaps force them to relief from active business, for this day at least. Most of the sales of stocks are for cash and at two to three below cent regular G. White failed, not S. B. White as previously reported. The National bank of Commo wealth has ended. Saxe & Rogers have suspended, A meeting of the Jay Cooke & Co., will be held on Monday Rumors are circulating lively and one attributes the cause of the the Union Trust company to the defal cation. Edward Haight Co.,just ansuspended. Great crowds are in Wall and Broad and policemen are busy beeping free enti and exits the stock The failures of Ketchum & Belknap and E.C. Broadhead are the latest report New Louisig & Fisher, P M Myers, Miller Walsh. Lamens, Josephs, Fearing & Dellinger Williams & Bostwick. Rumor seems right this time, that defalcation exists the Union Trust company. The bank of Commonwealth run the the says National bank Fourth precipitated the run on that institution, and that Edward Haight Co their of two the account amount to hundred thousand dollars. which they did not make good to the extent one dred and eventy thousand dollars. Under the the bank thought it better to suspend. Stocks opened with an advance of from four to six per cent. but fell from two twenty-five cent the failthe Union Trust and the Bank of Com The eitement is so great that not possible the tly of the firms that have failed. Brodhead was the right name of the broker that failed not G Morehead and the proper name of White is now as White. The stock change closed subject the the president to enable the members to Vanderbilt accounts. their settle in with closeted Augustu Schell the Union Trust office immedi company ately after the suspension. More head has suspended, not Brodhead Brown Wadsworth & have failed The bank statement it said. will be ready before four o'clock then. give the usual quotations stocks possible to-day. The failures of brokers came in such quick that blocks of stock were thrown upon the market to realize PHILADELPHIA, September 20. The Union banking company has failed This company has a State charter. and bore heavy run yesterday. The bank did not open o-day and placard the stated that, owing mands suspension for few days had been resolved upon sustained run yeste heavy about out paying $700,000. State ing no notes, and the suspension only effects ST. LOUIS, September 19. Taussig this city closed their door the after ment of the failure their York house, Taussi Fischer & They confident of being able few days, and state that no lose a dollar by them. This in railroad pretty on their own account. BOSTON September 20 Wednesday last the firm of Horace Conn Wobourn, Massachus pay Their liabilities amount hundred thousand dollars, and mated their assets will reach one hundred and fifty thousand dollars. Since the suspension Horace Conn. senior partner, has disappeared, causing great saxiety to his family and friends Search has been made in all directions. ALBANY. September 20.-T. Squire & Co., bankers, have announced their temporary suspension until further ad vices from New York TORONTO. September 20.-H J Morse & Co. bankers and brokers in this city have suspended, owing to the failure Cooke & Co. and other prominent houses in New York. CHICAGO September 20. The Frank lin bank a private banking company situated on the corner of Madison and Dearborn streets, closed its doors to-day being unable to settle at the clearing house; the amount short was only nine dollars. Fernando thousand Jones is president the concern and A. Briggs The latter states that -president. their only temporary and as it is not known have been in any way connected with any of the suspended New York houses there would appear to be no reason why should not resume soon. It is stated that the majority of the teachers in the publicschools are depo sitors in the bank Its early resumption is, therefore, the more to be hoped for The suspen howement no or ever, creates feeling whatever in financial or cireles.

2. September 21, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, September 21, 1873

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The Chicago Tribune. Sunday Morning, September 21, 1873. THE SAVINGS BANKS. In the general confusion incident to the andflon interruption in the salo of all kinds of socurilice, thore is a chance that depositors, especially in savings banks, may domand their money. It la, of course, an impossibility for the soundest of those banks instantly to obtain the necessary amount of greenbacks to pay all their depositors. There is not enough currency in the West to pay one-fifth of the deposits. The law, wisoly anticipating such an event, has provided that these banks may require sixty days' notico of the withdrawal of savings deposits. Should there be any serious and sudden demand upon thom, we trust they will, for the protection of both the depositors and themselves, unitedly insist upon the notico. It may require a week, or possibly a month,-perhaps only a fow days,-to enable the banks to convert their securities into currency. To do BO all at once is an impossibility, and to require the notice, while it will impose no hardship on the depositor that lio will not have to endure anyhow, will give the banks the opportunity to sell their bonds and call in their loans without soripus loss. Up to the presont time there has boon no run on any bank in this city, and no unusual call for money. The so-called Franklin Bank closed its doors without any perceptible movemont among its dopositore.

3. September 22, 1873 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, September 22, 1873

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The Panic Reaches Chicago CHICAGO, Sept. 20.-The Franklin Bank. a private bauking institution, closed to-day being unable to settle at the clearing house. The amount short was only $9000. S. A. Briggs, Vice President, states that their embarrassment is only temporary. It is stated that a majority of the teachers of the public schools are depositors, therefore its early resumption is especially hoped for. It Reaches Canada. TORONTO, Sept. 20.-H. J. Morse & Co., bankers and brokers, have suspended, owing to the failure of Jay Cooke & Co., and other prominent houses in New Rork. MONTREAL, Sept. 20.-The only effect here of the panic in New Ygik, has been to make the bankers more cautious and less willing to let out tneir funds, which are ample for all legitimate commercial demands. The discount rate for good bills varies from seven to eight per cent. according to the standing of names. Syndicate all Right. WASHINGTON, Sept 20 -The following was received from Loudon to-day: "To Hon. William A. Richardson, Secretary of the Trensury:-The - syudicate account is in perfeet order. There is a universal kind feeling towards Jay Cooke, McCulloch & Co., who continue business as usual. (Signed,) A. G. CATTEL." The run on the Freedman's and Washington City savings banks, continues to-day, but much less than yesterday. The former paid out $65,000. There are about 75 persons, the majarity colored, awaiting turu at the counter, and the actuary says that it is about the usual Saturday afternoon crowd.

4. September 22, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, September 22, 1873

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thus adding to his fortuno, ho might have boon the founder of a house of American Rothschilds, and still would have had the opportunity to bocomo a private and public bonofactor, disponsing blossing instead of ruin in his path. Ho chono to take neither of these paths, which lay broad and straight before him. IIo had made one fortuno at n single jump, not piling it up cont per cent like the Rothschilds, and must now have another. Having ten millione, ho must have twenty, fifty, a hundred millions. and to do this, he must jump again, not climb by euro degrees. To off :ct this, he clubbod together banks, and Insurance companies, and syndicatos, and railroads, and land-grants. Forty or fifty millions of aores, largo enough for n respectable empire, lay in the extrome Northweet, and those lio went for. IIo blow bubbles of fabulous beauty, and lot looso whole flights of balloons, which wont sailing off very majestically among the clouds, and the largest balloon contained the credit of Jay Cooko & Co. At last, he lost control of his ventures. Northern Pacific fell of its own weight, and, one after the other, the bubblos burst and the balloous exploded, and in the general wreck Jay Cooko was found, with his fortuno swallowed up in his debts, the ovidoncos of which are in the hands of corporations, banks, farmors, and mechanics, dragged down with him into utter wrock or distracting ombarrassment. The wreck ought to be a lesson to other high-flyers to let well enough alone: not to jump when it is Bafor to walk not to take physio when they are well. The public will be anxious to have the officers of the Franklin Bank explain what became of all their money BO suddenly last Saturday. It is roported that they have e300,000 deposits, $100,000 of which are in the Savings Department. Yot it appears that the comparatively insignificant sum of 60,000, which appeared as a dobit balance against them in the Clearing-House, was sufficient provocation for their suspension. Wo havon't heard that the Franklin Bank had any balances in suspended Now York banks which could have occasioned a necessity for closing its doors. Wo should say that a banking house that has a deposit account of $300,000, and susponds upon a domand of $9,000, owes an immediate and intelligible 0Xplanation to its depositors and the public, and more particularly in the present condition of things than in ordinary timos. It should be understood from the outset that institutions which close their doors under such circumstances must account for their action without much delay.

5. September 25, 1873 The Wheeling Daily Register Wheeling, WV
Article from The Wheeling Daily Register, September 25, 1873

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CHICAGO. The Financial Sitnation. CHICAGO, September 24.-There - is DO esential charge in the condition of financial affairs in this city to-day. Of course money matters continue the all absorbing question in business circles and various opinions are expressed 88 to the probabilities and possibilities of the future. As yet there is no panic in Chicago. There has been no run on any institution of this city, nor has there been a single failure since the comparatively unimportant suspension of the Franklin Bank, which occurred last Saturday; yet it must be confessed a general feeling of anxiety and; uncertainty prevails. This grows out of the fact of so many failures occurring in eastern cities, and ie, in a sense, produced by the belief that our own banks are in an unhealthy condition. Orders for currency from various banks are being promptly honored. Savings banks are paying out considerable more money to their depositors than usual, but while paying to small depositors, they are receiving larger sums from another class of persons, and there seems no occasion for even an attempt to justify a run. Hogs and cattle are rapidly accumulating in the Union Stock Yards in this city, owing to the virtual paralyzation of trade on account of the scarcity of currency.

6. September 25, 1873 Ellsworth American Ellsworth, ME
Article from Ellsworth American, September 25, 1873

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General News. The Stock Panic. More Failure of Basinees but Little Affected. -PRES. GRANT AND sec. RICHARDSON IN NEW YORK-THEY REFUSE TO INTERFERE. The excitement in New York. on Saturday, was as great as ever. Several stock brokers suspended. A defalcation of $500.000 by Mr. Carlton. Secretery of the Union Trust Company. caused that Savings Institution to suspend, although it was announced it would resume on Monday. The Hoboken. N. J., Bank, which had been connected with stock-brokers, failed, although of course the bill-holders are protected. The officers of the banks met, and took measures to aid their customers. It was impossible to sell securities for cash at any price, so great was the distrust. Yet legitimate business was but little affected, although of course the money market was lightened by the general distrust. All the failures were those of stock firms. President Grant and Secretary Richardson came to New York at the urgent request of business men. and at noon had a conference with Vanderbilt, Geo. Opdyke, Clews and others. These men urged the President to order the issue of the fortyfour millions of currency withdrawn by as ne .0 Caesar law some time is according since. The some-replied Presidentthat he had no authority to do so. Secretary Richardson gave the stock-brokers to understand that "this was not his tuneral." The brokers had brought the troubles upOn themselves, and they must not run to the government for help. President Grant said be would order the purchase of as many 81' bonds as should be offered. thus giving the market so much aid; but he would not go further. By Saturday night the feeling in N. York was much better on the streets, and the excitement lessened. In Philadelpbia. it was announced that the Union Banking Company had suspended. 1 ie Pennsylvania Central Railroad Company is still safe. In Chicago a private banking house called the Franklin Bank suspended. In Washington there was a run on the Freedmen's and Washington City Bank, In Toronto and Montreal two or three firms of brokers connected with the failed-firms in New York, suspended. In Cincinnati all was quiet. In Boston the market was not disturbed. In England and Germany here was much an siety to know the worst. Thus far no business firms engaged in legular business, have suspended anywhere. [Lewiston Journal.

7. October 3, 1873 The Jasper Weekly Courier Jasper, IN
Article from The Jasper Weekly Courier, October 3, 1873

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failures reported were the Union Trust Company (the cashier of which was said to be a defaulter to the amount of $600,000), the National Trust Company, and the National Bank of the Commonwealth. The excitement and panic which followed the announcement in the Stock Exchange of the suspension of these institutions were beyond description. The Stock Exchange resembled a mad-house, and the streets were blocked with people, all laboring under great excitement and frenzy. Prices tumbled from two to sixteen per cent., and stocks were slaughtered without any apparent regard to values. President Grant and Secretary Richardson proceeded to New York on Saturday night, and on Sunday a conference was held with some of the leading financiers at the Fifth Avenue Hotel, to endeavor to arrange some plan for governmental relief. A proposition was made that the President authorize the Secretary of the Treasury to place $30,000,000 of legal reserve in the city banks, and Commodore Vanderbilt offered to add $10,000,000 more. This proposition was declined, the President stating his belief that he had no constitutional power to afford the relief asked for in this manner. It was finally determined that the Assistant Treasurer be instructed to purchase all the government bonds offered for sale to any amount, and as the savings banks hold many millions of these bonds, it was thought probable they would sell them and deposit the proceeds in the national banks, which would give them relief. At Washington, on Saturday, there were continued runs upon the Freedmen's and City Savings Banks, but both held out. In Philadelphia the Union Banking Company suspended; in Chicago, the Franklin Bank, and at a meeting of the officers of the different savings banks, it was unanimously resolved to notify their depositors, that they will avail themselves of the privilege given them by their charter of giving sixty days' notice before paying their depositors. The managers of the Eastern railroads have come to a determination to issue return passes to stock drovers on and after October 1st. The Assistant Treasurer at New York continued purchasing all the 5-20 bonds that were offered by the banks on Monday, for the purpose of easing the money market. Both the Stock Exchange and Gold Exchange continued closed during the day. A run was commenced on the savings banks in the early part of the day, but later a feeling of greater security prevailed, and the crowds of depositors dispersed. The day closed with a general confidence that the crisis was entirely over. On Tuesday, 23d, the New York Stock Exchange continued closed, but the Gold Exchange was open and regular transactions resumed. Up to 2 o'clock p. m. the monetary situation might have been summed up in a sentence, "Confidence is restored, the banks are conducting business as usual," but just as the street was beginning to feel that the end of the panic had been reached, the painful rumor started that the house of Henry Clews & Co. had suspended payment. As soon as the announcement was made that the doors of this banking house had closed, the most intense excitement again prevailed, only equaled by the first announcement of Jay Cooke & Co.'s failure. The run on the savings banks was continued moderately throughout the day, but the time rule allowing the banks to require thirty days' notice on all sums over one hundred dollars, was generally enforced. A London telegram announced that Jay Cooke, McCulloch & Co. were throwing out drafts drawn by the American house and which have come to hand since the news of their suspension was received. A Petersburg dispatch announces that the Merchants' National Bank, Planters' and Mechanics' Bank, People's Bank, and First National Bank, all of that city, had suspended. The Citizens' Bank, although not suspended, declines payment. Rumors of heavy commercial failures were also rife in that city. It is stated that the Pennsylvania Railroad Company have reduced the hours of work for laborers and road men to eight hours per day, and the pay rolls will be reduced accordingly. The laborers, it is said, will strike against the new rule. Up to noon on Wednesday, the Government had purchased about $12,000,000 of bonds in New York City, but the financial crisis was apparently not yet over. The principal failures announced were the London house of Clews, Habecht & Co., and that of Howes & Macy, New York-both brought about by the suspension of Henry Clews & Co. on the previous day. At Philadelphia, Sept. 24, Thomas B. Parker, a wealthy retired iron merchant, shot his wife and then killed himself with

8. October 9, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, October 9, 1873

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The Dunoan-Soule Habens Corpus Case Deoided. Alleged Fraudulent Conveyances by Bankrupts. Motion to Put the Franklin Bank in Bankruptcy. The Divorce Bill--LaHache Case. THE DUNCAN-SOULE HADEAS CORPUS CASE. Judge Gary was occupied a considerable part of yeaterday in hearing the caso of Mrs. Duncan, who suod oui habeas corpus for her child, who was, and still is, in the possession of Mrs. Soule The facts were given in full in THE TRIBUNE of Monday last. A number of Indica were present related to the parties. Mrs. Duncan was, however, sick, and her deposition was read. In it she stated that the child, Jossio, was sadly neglooted while with Mrs. Soule, and she had frequently been obliged to give her clothes. She acknowledges the agreement before the Justice, and made it because she was not able to take caro of her herself. On the other aido, Mrs. Soulo and the witness in her behalf nogatived the evidonco of nogleot and bad treatment and Jessio horsolf added strong testimony to their statements by her ovident partiality for Mrs. Soule in preference to her stepfather or oven her sister, young lady of 18 or 20. who ppeared to be deeply afflicted by the elight and the adverse decision of the Judge Judge Gary called the child up to him. and questio her. His was that the child should be nded to the caro and custody of Mrs. Soule, the showing that she is the better adapte to caro for her, but ordering that the relator, Mrs. Duncan, should have access to her all reasonable times, which was acceded to by respondent Mr. E Moffott conducted the case on bohalf of Mrs. Soule. FRAUDULENT DEEDS R. E Jenkins, Assignee of the estate of Alphonse Loon Mandel, bankrupt, files his bill against Ogust Mandel, the Connecticut Mutual Life Insurance Company, and L. Silverman, stating that on the 15th day of Iarch, 1869 Ogust bought of W E. Mortimor and wife and Goorge Tupper and wife the followit described premises Lot 4. in Mortimer & Tupper's Sub division of Lota and in Droxel Subdivision of Block 30 the N. W 1/1 of See tion 22, 89, The consideration $10,500, however. paid cipally by the bankrup Five Mandel, Alphone dollars of the sum is still unpaid and mortgag for that amount held by the Connecticut Mutual Life Insurance co Company Subsequently trust doed for 81.000waa given to L. Silverman. Complainant alleges that a resulting trust arone in favor of the bankrupt that both ho and his brother refuse to executo or declaro this trust, and that the bankrupt' creditors are titled to the amount paid by him on said bond. He therefore prays that defendants may show the interest or Alponse in the land and that it may be sold for the benefit his creditors. FRAUD ANOTHER Mr Jenkins, as Assignee of Higgins & Brand, commonoed an action chancery similar to the above against Coddington Billings and wife, and Edward Brand, charging that in December 1872, Mary A Higgins, one of the bankrupts, in contemplation of insolvency conveyed to said Billings house and lot in Jersey City. Jersey June 1878. it was conv to E. Brand, and both these conve oyances the Assignee claims are fraud ilent. and assigned to hinder the creditors from realizing their just dues. Said convey were made without and last convoyance the sideration, was long subsequent to the proceed inga in bankruptov Complainant moreover alleges that Billings conveyed by deed in blank, and that Brand's name insorted John A. Hunter, an attornoy here, acting in behalf of Mary A. Higgins. Complainant therefore. prays that those two convoyances may be declared fraudulent. and a yance made to Mary A Higgins, 80 that her creditors may have the benefit of it. THE RANKLIN BANK IN BANK Goorgo L. Chapin. depositor in the Franklin Bank yesterday filed petition against the bank for it to show cause Oct. J17 why it should not be adjudged bankrup Petitioner states that during the panic the bank closed its doors, and that on Sept. 22 ho went to draw his balance, and was refused. Fourteen days now having elapsed. which makes an act of bankruptoy the petition is filed The Directors have offered to pay about $8,000 to persons unknown petitioner, but still koop their doors closed the public. THE MILL DIVORCE Judge Gary had his patience severely tried veaterday. most of his time being ocoupled in hearing divorce cases In none of them any defenses made, though in some personal service was had. The rockless mode in which divorces have been engineered through very the In case apparent Richards of Richards the states against complainant that her husband was appointed Consul to Leeds. En gland in 1866. and his term of office expired in 1870 and from this time she claims desertion for two years The attorney, Mr. Beattie, had not inlied with the law ro quiring notice to be sent to the defendant where his was known and Judge Gary refused the decree, but continued the case until now publication should be made and copy thereof sent to the defendant Counsel did not Beem to comprehend the law. but appeared to expect would be all right if the outward forms were obeyed. personal serIn the case of Fox against Fox, to vice was had, and the complainan testified acts of repeated cruelty, and also that hor husband was living in the city and enjoyed an oome of about $1,200 year. decree granted but the question of was dobrred until notic could be given to defendant the of therefor application Payne itz also had would be di vorced client, whose statement was nsupported by any other witness and, rigid by the Judge. she said the brother of hor husband lived in Chicago The Judge though that, through him, she might have ascertained the whereabouts of her husband. and ordered that he should be subpooned before decreo could be granted. Several and other cases tried. decrees were granted. Though much time is now spent on pending cases, yet, when is known that all cases will be tried in open court, it will diminish the number of now ones. T-MAKING. INJUNCTION AGAINST S. Charles F. Raco filed bill against Moses Hunting, David Bishor tilda Roynolds, Charles Hun ing. and Mark H. Reynolds. Complainant states that he owns piece of land on Eleton road and Rutled avenue, and divided part of it into lots, known as part of the Irving Park Subdivision. Defendants claim that street called Greenwood avenue was laid said plate out across but complainant donies that such was the fact. and that any such avenue was laid on said plat it was by authority On the 30th of September, 1873, defendants, with horses and plows, entered on complainant land and plowed up, and rounded up the ground in the form of street, and maintain that they will continue to use it street Complainant asks an in unction, which was granted under bond of .000. This suit roply one commenced by some of the defendants against complainant, to enjoin him from building fenco Greenwood avenue, and blocking up the access to their lots. Race. Instead of answer ne said first suit or mov. ing for dissolution of the in junction, made flank movement by commencing a new suit in another court GREAT WESTERN INSURANCE COMPANY REPORT The report of the Assignee of the Great Western Insurance Company was filed yesterday morning $28,132.00 1 Balance hand Sept. 8,043.87 during September Disbursements 2,120.00 Balance hand $34,045.80 BANKRUPTOY ITEMA. The Union Screw and Bolt Company filed its report for September, showing a balance of $103.12 on hand A rule to show cause was entered in the caso of John Myat and others. and of Isaac T. Sutherland, both involuntary CANDH.

9. October 18, 1873 The Donaldsonville Chief Donaldsonville, Gonzales, LA
Article from The Donaldsonville Chief, October 18, 1873

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bonds, it wasthought probable they would sell them and deposit the proceeds in the national banks, which would give them relief. At Washington, on Saturday, there were continued runs upon the Freedman's and City Savings Banks, but both held out In Philadelphia the Union Banking Company suspended; in Chicago, the Franklin Bank, and at a meeting of the officers of the different savings banks it was unanimously resolved to notify their depositors, that they will avail themselves of the privilege given them by their charter of giving sixty days' notice before paying their depositors. Special Commissioner Felix R. Brunot has concluded a council with the Utes, the result of which was the ceding by the Indians of some 3,000,000 acres, being most of the land lying between the 37th and 38th degrees of latitude and 107th and 109th degrees of longitude, except a narrow strip on the southern side, on which many of the Utes have farms. It is proposed to gather the Wennihus, Muache and Capote Utes, and a portion of the Jacarilla Apaches now at Tierra Acravilla, and Cimarron agencies at New Mexico. This arrangement disposes of the two troublesome sub-agencies and gathers these wandering bands of the Utes upon their reservation. The price for land most mineral is to be given for the support of the new agency and for those Indians for which there has been heretofore no regular provisions made by the Government. Thearrangement with the Utes is not a treaty, but only an article of agreement entered into in accordance with an act of Congress authorizing negotiations. The managers of the Eastern railroads have come to a determination to issue return passes to stock drovers on and after October 1st. The Assistant Treasurer at New York continued purchasing all the 5-20 bonds that were offered by the banks on Monday, for the purpose of easing the money market. Both the Stock Exchange and Gold Exchange continued closed during the day. A run was commenced on the sayings banks in the early part of the day, but later a feeling of greater security prevailed, and the crowds disThe a general persed. day closed of with depositors confidence that the crisis was entirely over. The New York Stock Exchange continued closed on Tuesday, but the Gold Exchange was open and regular transactions resumed. Up to 2 o'clock p. m. the monetary situation might have been e summed up in a sentence, Confidence is t restored, the banks are conducting business as usual;" but just as the street was beginning to feel that the end of the panic h had been reached, the pamful rumor starte ed that the house of Henry Clews & Co. y had suspended payment. As soon as the announcementwas made that the doors of this banking had closed, the most intense excitement again prevailed, only equaled by the first announcement of Jay Cooke & Co. 's failure. The run on the savings banks was continued moderately f throught the day, but the time rule allowing banks to require thirty days' notice on all sums over one hundred dollars, was generally enforced. A London tele11 gram announced that Jay Cooke, McCulloch & Co. were throwing out drafts drawn n by the American house and which have come to hand since the news of their suspension was received. A Petersburg dispatch announces that the Merchants' Nao tional Bank, Planters' and Mechanics 8 Bank, Peoples' Bank, and First National all of that city, had suspended: I Citizens' Bank, although not susis declines payment. Rumors of 96 4 heavy mmercial failures were also rife in 4 that city 5 Then Pennsylvania, Railroad Company 58 havereque dediours of work for laborers 00 00 androad men forweight day, and the 00 0 pay rolls will be accordingly. The laborers, it is saideswill strike against al the new rule. n The President has issued a proclamation d exempting French vessels from all dise, criminating duties.

10. October 25, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, October 25, 1873

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that he accedintally heard Thursday of the commencement of this suit, and learned il fully yesterday by the papers. 110 states, moreover, that petition in bankruptcy has been filed, and an answer put in by the bank, which Fernando Jonce, the President, stated was to gain time, which proccedings are still pending. R. W. Smith, the Receiver, has an office in the same room with the complainant' attorneys, and he bolieves the whole thing was commonced by agreement and collusion between the com. plainants and defendants. Ho neks that he and other creditors may be made defendants to this suit. The affidavit of Stephen A. Raco nots out that he is a creditor to the amount of $4,300, for money on deposit only heard of the caso a day or two ago he has read the afidavit of Colo, and knows It to be true, and further, that the assets of the bank are about $200,000 or over, and that a bond of $25,000 is grossly Insuficient. JUDGE ANDUREN THEN REMARKED that the attorney of the Company was the same as the Receiver. A stipulation was filed by him in the United States Court, in the caso of Chapin agains! the Frank lin Bank, in bankruptcy, to have the proceedings dis. missed, and such actions proved that the thing was a cut-and-dried affair. Re thon argued in support of the motion that this bill la in the nature of creditors bill. and cannot be entertained before & judgment at law has been obtained. [1 Barbour, Chancery Practico. 3 Gilman, 518, 14 Illinois, 271, 17 Illinois, 281.] To allow this would be to make a preference in favor of one creditor over another. A Court of Chancery will only interfere when Court of law cannot take cognizanco, and this injunction has been improvi dently issued, no caso being made out therefor. Again, there has been collusion between complainants and defendants to obtain delay, Which la seen by the stipulation being signed by Gen. Smith. the Receiver and attorney of the bank. This bill has been ruehed through with rapidity unknown in any place outside of New York, and it was agreed by the bank that Smith should be appointed Receiver Now do the creditors having demands amounting to $250.000 know of this? Here are creditors representing $4,000, who got a a reiver appoluted for their own pleasure. Now if dishonest man wished to get rich he could not do better than by being appointed ever of bank having $200,000, under bond of $25,000, and then have an excuse to go to Home other place. claim said the Judge, that the suit is not well brought: first because bankruptcy proceedingsare pending, lience State Courts have no jurisdiction. Second, there has no judgment been obtained to base a chancery suit on, as there is a good defenso at law, and perfect way to obtain their claims, Thirdly very improper man has been appointed. under very insufficient bond This seems to be case of bank opening its doors to make money out of the public. and it is submitted that the case cannot staud for moment hin. BACKETT, of Backett. Wilkinson Bean, ppeared on behalf of the complaining creditors He argued that party who has such & efense this could bring it by way of plca, it being again the bank These creditors, sented by Judge Van Buren, only ask to come in As defendar to this suit that is on the side of the bank. Now they only wish to come in to show that these are unlawful and cannot be sustained The object of this chancery suit is to get out of bank ruptcy,and the petitioner in bank ruptcy, Mr. Chapin, has agreed to have the proceedings dismise and a Receiver appointed, Now, relation to the fact of no judgment being obtained previously A partner in a partnership can bring case in chancery, and this le similar suit to that. and even if this were not the case, this is an agreed case, Again, there has no afildavit been filed to to the fact of Gou. Smith not being responsible If O1 his bond not being good, Let them show that. we the bond not good in the opinion of the Court, will give larger one. But it la not the rule to make a Receiver give bond for the whole amount which goca through his hands, but for bond to cover the amount he may have in his hands nt any one time. the the of by Now, bank attorney we are informed that the only cash on hand is about $2,500 or do We $3,000, that deuy United not the States District Court could oust this Court of its jurisdiction, and we shall make no objection to the bank golug through bankruptcy but it was thought best by the bank to get the assets into the hands of a Rocelver, thinking that more could be gained. JUDGE FARWELL remarked that whatover has been done 80 for in this case, has been done without any help from him. Both parties came before him. and he, supposing it was all agreeable, allowed them sucl an order as they wished, Now, may be 80, that, if the bankruptcy proceedings go on all might be taken out of the hands of this Court but he not obligod to take it for granted that some person will go on and prosecute the bankruptcy proceedings This Court has jurisdiction of the parties. they having come before it by consent but to the question of jurisdiction of subject matter, it may be different. The proceeding la rather novel one. but by the suit being instituted there must be BOTTLE cause for and he thought he would not like to dismiss the sui it absolutely and abruntly. and if is dismissed now must be by the motion of the Court If the action is not tenable here. no motion of dismissal could be tertained from anybody else. But if the Court has any power to appoint Receiver all, can control him. The question is. whether the Court has any thing to do with him any more than it would have in common law action of trover. TheJudge remarked he would like to examine the authorities. DISCUSSION Judge Van Buren then asked for a stay of proceed Ings, stating that the Receiver might go on and collect any amount and put! his pocket. and. having filed no inventory, no one would know how much he had taken. If the case was not properly before the Court, worth not his cont. bond was The Judge thought he would not need to make any order before he decided the case that the creditors would not be damaged. Judge Van Buren then asked how in God's name his client's interests would be protected. ReJudge Farwell then asked Mr. Backett what the ceiver would do Mr. Sackett replied that he had told Gen. Smith go and take charge of the bank and inventory everything be found, and he would give his word that be would do nothing ela Judge Van Buron wished the Judge to ask him his opinion of what the Receiver would do, which Judgo did. Farwell Whereupon Judge Van Buren stated that he believed that Gen. Smith would collect money, and perhape pocket it. [Lagghter. There were persons behind him at the present time who $50,000 against the bank, and they did not want Smith as Receiver No. of no. (Whispers Judge Farwell then said that he did not know but that, inasmuch as he was in doubt whether the Court had any jurisdiction at all. it might be better to make an order for stay of proceedings Mr. Sackett said he would have no objection and an order was dingl entered by consent that no further steps should be taken in the matter of a Recei ver. and that he should be for bidden to do any thing more in respect to of the until further the bank order the affairs of Court. The Court will give decision Monday morningnoxi in the case in respect to juriad lotion, and also, If he has jurisdiction with regard to whether the Receiver's bond should be increased INTERVIEW WITH THE BANK OFFICERS, Desirous of giving the whole case reporter of The TRIBUNE stepp scross the struet to the office of the Franklin Bank. Iu the door of the bank an Itn necunious-looking individual who was trying to flatter a him into complete giving Teller list the of bank the of The the reporter depositors and was his orrand, immediately made known mitted to the Banctum where were Gun. Smith, the vly-appointed Receiv enjoying the butt-end of a cigar Mr. BriggH, the Manager and Vice-President, and gentlemun with hands suggestively stowed away in his pockets, who was after wards ascertained to be the gental President. Mr. Fornando Jones. To him the public is indebted for most of the knowledge received. His tongue, like that of the historic superaunuated spinster seemed hung in the middle, and swinging at both ends. There rorter delicately instiuated that if the officers of the bank wished to give anything to the reading population of the Northweat, now was the golden moment Mr. Jones asked If he represented the Journal or Post: With a critical look to 600 that LLC insult was intended by euch mis take, the reporter replied he represented THE TRIBUNE The effect WHH magical The word was the open, seasure, and Mr. Jones begun, Reporter-1chouldlike to know what the condition the intends course to of the brake this MINDS morning DCIBILU all regard to the

11. January 11, 1874 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, January 11, 1874

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# Examination of an Unfortunate Banker Named Jones. earch of the Assignee of the Franklin Bank for Information. # Gigantic Ignorance of Mr. Jones. How the Concern Was Run for Lombard and Briggs. The Books Show Jones Owes $20,000, but He Denies All but $5,000. The following is an abstract of the testimony of Fernando Jones, the President of the Franklin Bank. The first examination in October was reported in THE TRIBUNE, but it was afterward conducted in private, so that one officer would not be able to know what another uad testified. Messrs. Lombard, Jones, and Briggs have been examined. The testimony of the former two is not so rich, showing their ignorance more than anything else, but the evidence of Mir. Briggs, the active manager, which was concluded Saturday, will give some revelations of the way a bank's books kare kept. This is not yet transcribed from the reporter's notes, but will be given as soon as it is accessible. HOW JONES GOT IN. Fernando Jones was further examined, Dec. 29, and the following is an abstract of the most Important parts of his testimony in answer to questions: I was President of the Franklin Bank at the time it closed business. I was a stockholder or Trustee at the time of Its organization as the Real Estate Loan and Trust Company. I took $5,000 of stock; have been a stockholder under both names of the bank since its organization, and a Trustee Muring the whole time. I was elected President about the time the name was changed to the" Franklin Bank." I was elected without my consent or knowledge, and only accepted it some time afterward. Here Mr. Jones was shown the record-book of the Real Estate Loan and Trust Company and basked if he recognized it as such. He supposed Et was, but did not know. On showing him his signature to the minutes, he acknowledged that it was the record-book. HIS CONJECTURES AS TO HIS DUTIES. Question-What was your duty as a Trustee of the Company-what had you to perform as such Trustee? Answer-Why, I suppose it was mainly for the purpose of continuing the organization and to attend to the general interests of the corporation. Q.-Did you not understand that the Trustees of this organization had the fuli control-direczion of the management of the bank? CHILDLIKE FAITH OF MR. JONES. A.-Why, I thought at the time that the-that the Trustees, appointing managers, and agents to continue the business cf the bank, it would pe done mainly by those parties, experts in the business of banking, and necessarily not very much under the control of the Trustees so far as running the business of the corporation was ron cerned. BOARD OF TRUSTEES. Q. Do you recollect what steps were taken to change the Board of Trustees from seven to five? A.-I don't remember when it was done, but I remember that it was done, and that wo acted under it in that way. How the record was made up I don't know. Q.-What was the duty of this Board of Trustees, as you understand it, in the management of the Franklin Bank? To have the general management and control of the business of the bank, and to direct the manner in which the Lusiness should be continued? A.-No, I don't suppose that that was, as you state it. Q.-Well, state what it was. A-I suppose it was to elect officers to take the management of the bank, who understood the business, or were supposed to, and, through them, to manage and carry on the business of the bank, the corporation. MONTHLY MEETINGS. The following by-law of the Company was then read to Mr. Jones: "The regular meeting of the Board of Trustees, a majority of whom shall be a quorum to do business, shall be held on the first Monday of each month at the office of the Company." In answer to the question whether such meetings were so held, Mr. Jones stated that they did not hold these meetings formally and make a record of them but the Vice-President, who was Manager of the bank, the Cashier, himself, and one or two of the other Trustees, were able to consult in any cases suggested by Mr. Briggs, the Vice-President, or by the Cashier, without having a formal meeting of the Board and making a record of it. They were not in the habit of it, since it waн а small Board, and they could talk up these matters without making a record of meetings. He did not consider at the time, nor now, under the circumstances, that it was the duty of each Trustee to see that these regular mectinge were held for the protection of themselves and the public. It would have been troublesome and of no essential use to have had a formai meeting when they were together frequently. Mr. Lombard, when he was President and Manager, and Messrs. Briggs and Eddy afterward, had the control of the affairs of the tank. Some one man had the general supervision of institutions of that kind. THE BOOKS GET BEYOND HIM. The President and officers were in the habit of making statements as to the condition of the bank frequently. In the early organization Mr. Jones occasionally examined the books to learn how the assets and liabilities stood; but, as the business increased, they became so complicated that he depended for information upon the explanations and reports of the officers having charge of the bank. He informed himself all along as to the condition of the bank by representations of the officers, and by reference to the books, so far as he could understand them. SOME OF HIS IMPRESSIONS. The following by-law of the Company was then read to Mr. Jones: "There shall be appointed by the Board, every three months, a committee whose duty it shall be to examine into the affairs of the bank, to count its cash, compare its assets and liabilities with the halance on the general ledger, for the purpose of ascertaining whether or not the bank is in a sound and solid condition, the result of which examination shall be reported to the Board at their next regular meeting." Mr. Jones was asked whether this by-law had been complied with. He replied that it had been complied with in cne or two instances in the early management; afterwards it was done in the manner previously mentioned, without a regular committee, but by informal reports of the officers who were running the affairs of the bank. His impression was that the first regular committee consisted of three officers of the bank. Mr. Jones himself f was never on the Committee. There never was

12. January 29, 1874 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, January 29, 1874

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We print this morning another chapter in the sensational story of the Franklin Bank. Of course it is a new lawsuit. The Assignee of the bankrupt institution brings suit against Briggs, the ex-Cashier, and a number of his relatives and next friends, to recover for the benefit of the creditors certain property which Briggs acquired during his management of the bank, and which, it is alleged, he fraudulently conveyed to brothers-in-law and other persons. The bill recites a large number of peculiar manipulations of accounts, and, if we may believe the charges therein set forth, Mr. Briggs was running the bank chiefly for the purpose of making a personal use of the funds which he gathered in as deposits. He had an aptitude for discounting his own notes which, if applied to customers, would have made the Franklin the most popular banking institution in Chicago. Altogether the new development adds at once to the complication of the Franklin Bank affairs, and to the discouragement of the confiding persons who placed their money under the control of Messrs. Jones, Lombard, and Briggs.

13. April 1, 1874 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, April 1, 1874

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The Practice of Speculating in School Fund Property. Proposition from A. G. Lane to Settle Up His Indebtedness. It Is Accepted by the Board--The Mechanics Institute. Trani ifers, Appointments, Etc. The Board at Education met last evening, President King in the c. hair. Present, Inspectors Bluthardt, Calkins, Hambleton, Oleson, Olinger, Reynolds, Richberg. Runyan, and Stone. SPECIAL ATING IN SOHOOL LANDS. Inspector Gogine asked If It was true that A real estate dealor hold $1,00 10 08 security for the performance of his agreement the purchase property near Sharpshooters' Park owned by the school fund. President King repk d that he had heard 80, Inspector Goggin w/n tod to know if the Board had contracted to sell the per perty. President King said 16 time last summer an offer was made for the property, and deposit of $1,000 was required as security, WA 'in a few weeks Mr. Rece, who had the money, camel 0 his (King's) office and wanted to know who:h or the city was ready to perform its part of the contract, and If so, that he wanted an abstract. 11o (King) told him he con Id not have it until the Corporation Connect had AXALA ined it, Recs told him that be had the $1,000, and 18 ready to perform bis part. He (King) went to there de of the Corporation Connect and got the abstract, will 1 an opinion regarding it, INSPECTOR BLOVER ARDT had heard n groat many remarks out this property, and he thought it was about in 10 something was done to find out how the mail's stood, If Rees & Co., or other parties, dentr. nd to speculate in the land, they about be made to pay down the price they agreed to 15 for It, Ho did not want to Bee the Board's hands Ha 50 that they could not prevent speculation in proper ty belonging to the school fund. He, therefore, moved as the Committee on School- Fund Property be directs to report at the next meeting whether Reas, or whoe or had purchased the land, had fulfilled their part of the contract: and if not, to resdvertise # 0 property for sale, The Board had walted In ag enough for the purchase money. If the property Increased in value the parties who bad control of rould take It undoubted but if it went down, they wa uld probably want to back down. Honce they should be held to their contract, and, if they did not come D to the scratch, should be made to pay the fiddlor. RUNTAN INSPRCTOR understood that Grant Goodrich had given a an It-claim deed to piece of the school-fund proparty whi ch was sold to Mr. Wisnor. PRESIDENT RING said Wisner's attorney objected to the abstract, and It WOH necessary to get quit -claim from Goodrich on account of Irregularities in a sale and took place thinty years ago. Goodrich and been pm'd $1,000 for it. Within day or two Mr. Wisner's agen' had called on him (King), and asked if the city was ready to perform us part of the contract, and ho had said they were and the agent replied that his principal would be ready in few days to consummate the trade, In regard to the other property, Rees got an abstract only about week ngo, and said he was ready to cariy out the contract; but whether he would or not he 8 uld not tell. UTHARDT INSPEATOR remarked that his reason for making the motion WILL that he had been told by responsible persons that somo one was cutting down the timber on the land near the park and hauling away. ANSWERING THE COMMITTEE. Inspector Goggin said, until he had seen A reference to the sale of the property in one of the papers, he know nothing about it. It was not right for a Committee of the Board to go off and negotiate with a real-estate agent for the sale offs tract of land worth from $60,000 to $75,000, and lot the purchaser hold the money put up to secure the formance of the contract. Was it not one of the most foollsh things that could be done to allow the purchaser to cloud the title of the proporty If a sale had been made, why did not the Board request the city authorities to make deed, tender the prop. crty, and demand the purchase-money and if it WILS not paid, cancel the contract at once? The Rece contract was a swindle, RSCS himself was an benorable man, but he had overything too much his own way in regard to the property. The land had in fact been given to him, it being discretionary with him whether he would keep 10 or not. Such procooding was n fraud on the school- fund property, and titles should not be clouded in that way. BIOHDERG INSPECTOR did not believe that contract had been executed for either piece of property. The only hold the purchasers had was this. The Board voted that they cortain a should bave the property at that price, and the Council concurred in action. There was no other cloud on the titles than that. Ite was opposed to Bluthardt's motion, for the roason that he had made that motion repeatedly, and was never able to got the Committee on School Fund Property to mgbmit a report with reference to the matter. Ho did not think there was any prospect of getting a report from them. As he understood it, Roes WILL acting 08 the agent of the Board. Inspector Blujhardt read from a report of the Committer on School-Fu Property, which showa that the property had been sold to J.H. Rees & Co. If the contract could be revoked he would be well eaths LOOK AFTER IT SHARPLY. Inspector Goggin sald unless the school roporty was looked after, there was no telling whather what remained now could be found in D few years. In all cities as large as Chicago, an attorney was employed to look after the real estate belonging to the schools. In his opinia's some competent person should be engaged. The Bar of Chicago was overstocked: and he hoped the Com. mitteo would take this into considerat The motion of Inspector Bluthardt was unanimously adopted. TEXT-BOOKS. The Committee on Text-Books and Course of Instruction submitted their annual report. They were of opinion that the books now in use in the schools should remain substantially unchanged, but recordmonded that the Board drop certain books which the Committee believed to be little advantage. The Committee on Appointment reported as follows: TRANSFERS. Emma Preston to Polk street; Mary Thompson to Kinzie School, APPOINTMENTS. Mary O. Dufflin, Assistant in Jones School: Abbie G. Wallace, Jones School: Fannie J. Crowell, Foster: Caroline A. Blodgott, Cottage Grovo; Annio Leonard. Holden; Maggie E. Woods, Agnes J. Forguson, Notstein; Emma L. Landen, Douglas Frances W. McDowell, King; R. Louise Brownell, Third Avenue. RESIGNATIONS. Martha E. Smith, Foster; Annie H. Trask, Haven; Susan S. Carpenter, King. PARTIAL CERTIFICATES. Abbie G. Wallace, Louise It. Oakman, Susie M. Hayward, Lizzio M. Cobb, Emma L. Landom, Janie S. Sanborn, Fannio J. Crowell, FULL CERTIFICATES. The Committee on Appointment of Teachers recommended that full certificates be granted Mary Ball, Mary D. LeBaron, and Kate F. Perkins, and that Mary Blackman be appointed first assistant in the Westworth School, and Louiso C. Sitka first assistant in the Burr School. Both reports were adopted. A ballot for head Assistant in the Foster School rosulted in the election of Carolino G. Adams. CICERO SOHOOL-FUND PROPERTY. Inspector Runyan, from the Committee on SchoolFund Property, submitted report in regard to the school fund in the Town of Cicero, THE MECHANICS INSTITUTE. Inspector (Richberg offered the following, which adopted was Resolved, That the Corporation Counsel be requested to take such stops AH may be necessary to have the Mechanics' Institute of Chicago declared extinct, 80 that the school-fund may realize the amount coming to it from the estate of Azal Peck. NEW BUILDINGS. Inspector Richtierg moved that the Supply Agent be directed to take charge of the crection of houses hereafter, he to act in conjunction with the Committee on Buildings and Grounds, Agreed to. ACCOUNTS, LANE'S Inspector Runyant submitted the following report Your Committee to whom was cforred the question of settlement of balance due the City of Chicago from A. L. Gane, Late School Commissioner of Cook County, would respectfully report that they have rocolved the following proposition from him to pay the city the amount now owing him The Hon. IF. 11. King, Chairman of the Special Commilled of the Board of Education: DEAR Str The balance of the amount apportioned to Township 39, Range 14 (City of Obleago). on the distribution of school funds for the year 1873, is $32,850.07. This amount was on deposit in the Franklin Bank, which suspended during the pauic, and which has since been forced into bankruptcy.

14. April 8, 1874 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, April 8, 1874

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THE COURTS. Mr. S. A. Brigga is Asked to Give Bail Not to Run Away. A & Roid Trouble Partnership Sherwin, Closing Up the Germania Insurance Company. Judgments, New Suits, Etc. A PARTNERSHIP MUDDLE. Juding from the size of the bill filed Monday in the Gircuit Court, the firm of Parker & Hindle must be in the most deplorable condition. The suit was commenced by Samuel W. Parker against Charles L, Hindlo and others. Parker states that, on the 4th of February last, ho formod a partnership with Charles L. Hindle in the printing and lithographing business. Hindle had previously boon in business with Perry Jonkins. By the agreement made by complainant with Hindlo, both parties were to share alike, and the stock was to be owned in equal proportions by each. Hindlo guaranteed that the value of the stock book debts should be at least $30,000. and that Parker should receive at least $4,000 11, year as his share of the profits. Parker was to pay $15,000 for his half of the business, $500 cash, and the remaindor before June 1, 1874. Books of account wore to be kopt, which were to be under the charge of Parker, and ho was also to sign checks and attend to the financial part of the business, and to the printing, bookbinding, and lithographing dopartinents. The parties went into business in pursuance The of this contract, at 166 South Clark street. inventory showed the property of Hiudle to be worth $31,000, including $40.30 of book debta, which were guaranteed. Complainant has paid nearly $10,000, either in cash or giving his notes for short time. Hindle assured him that the firm property was free from all liens, but a Parker has Intely ascertained that thore is mortgage to J. B. Boyd for $2,000, and another for $1,300 to A. Crawford. Hindle, however, maintained that these mortgages were fully paid and discharged that the mortgagees were only allowed to stand to protoot the proporty from his creditors, and they would be released of record on the formation of the copartnership. Relying on these representa- and tions, Parker concluded the copartnership, when it was finally signed, Hindlo acknowledged that the mortgages were valid lions. Parker has also discovered some more incumbrances, and he charges that the incumbrances at the time, the time the partnership was formed exceeded $23,000, a groat part of which ho has been obliged to pay. The book-accounts also are not worth more than $1,500 or $2,000, Hindle, it is charged, line grossly neglected his business, sometimes not appoaring at the office for days together. Hindle has also collocted various amounts belonging to the firm, overdrawn his account, and, generally, as is alleged, broken his contract in every possible way. A judgment by confession has been entered up against the firm property, and it bas been seized. Parker allogos that Hindle has been absenting himself for somo time, and he is approhonsive his partnor is attempting to leave. Ho, therefore, osks an injunction to provent Ilindlo from longer interfering with the firm affeirs, for an account and dissolution of the partnership, and for a Receiver. And also for clan- a writ of no excat to provent Hindle from destinely leaving the city. The writs of injunotion and no exent wore granted, and an order WAB made appointing A. A. Ellsworth Receiver, under a bond for $40,000. BRIGGS PEREMPTORILY CALLED ON. J. D. Harvey. Assignee of the Franklin Bank, filed a petition in the case of that bank, setting out the circumstances attending Lombard's makiug the trust-dood and two $16.000 notes to the bank. Briggs was made Trustoe in the trustdeed, and took possession of both notes, which were dated Fob. 15, 1872, and some coupon notes for interest. The land convoyed was Lots 12 and 18 in Culver and others' subdivision of the S.W. ½ of Soc. 22, 39, 14. The Receiver has obtained possession of one of the notes, but Briggs has the other, and sometimes donies that he has it, at others claims ho has an individual Interest in it. Цо also claims ho has delivered it to one John Mcrryman, but Harvey thinks there is no such perThe petitiou then sets out the land held son. by Briggs in trust for the bank, and asks that he may be compelled to give it up. Harvey charges the that Briggs is near the city, but just on point of leaving for the East to get boyond the jurisdiction of the court. He therefore asks the that Brigga may bo compalled to doliver $25,000 and all other property belonging to the bank, and that ho may bo provented from leaving the city. A rule to show cause in five days and B warrant for Briggs' arrest wore issued and a further order that the ex-Vice-President may give bail in the sum of $5,000 if he does not choose to board with Mr. Folz. Bank BILL TO FORECLOSE. filed hill against

15. April 16, 1874 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, April 16, 1874

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THE COURTS. Miscellaneous Business Transacted Yesterday. MORE LOMBARD SUITS. The indefatigable Homer Cook, Assigneb of Benjamin Lombard, commenced another suit to tear up cortain real estate transactions, against Fernando Jones and Joel D. Harvey, Assignee of the Franklin Bank. Cook states that when the bank closed its doors, the 20th of last Septombor, Lombard was owing it about$140,000. Aspart security, he made over to the bank the property No. 8 Eighteenth street, & trust-deed being given, with Fornando Jones an Trustee. Harvey has, as Assignee of the bank, taken this property, and Cook asks that the conveyance may boset asido, AB having been made within four months of Lombard's bankruptey, and to parties who had full knowledge of the circumstances and of his insolvency. A NEW POINT AS TO THE LAW OF BEMOVING A CASE. A now question will be brought up for doclaion before Judge Blodgett this morning on the right to remove a case to the United States Court. In the well-known Young-Johnson-Keck case, arising out of an attempted pork corner in the fall of 1872, trinls were had in the Superior Court, and appeals taken to the Buprome Court. The auits were reversed and remanded, and are now pending again on the call. A motion has been made to transfer them all to the United States Court, and the record in the CARD of Young & Co. against Bradley & Keck was filed yesterday. The objection, however, is raised, whether, after one trial, R case can be transferred to the United States Circuit Court, and this question will be argued this morning. ITEMS. Judge Drummond is engaged in hearing the the case of Walker against the Cincinnati, Peru stockholders. & Chicago Bailroad Company and some of its Jacob Rohm filed a potition asking for a jury to try the question of the insauity of his cousin, Frederick Raiser. Judge Smith in hearing a trespass suit brought by Michael Barron against the Chicago, Rock Island & Pacific Railway Company, to recover $15,000 for an accident in defendant's depot. Judge Booth is busy with & condemnation case. UNITED STATES COURTS. David Riepouts, for himself and Margaret Donaldson, administratrix. commenced a suit for Dolose. $4,000 against W. H. Hutchinson and John BANKRUPTCY ITEMS. Thomas J. Foster, of Magnon, filed a potition against Joseph C. Foster, William J. Foster, Thomas M. Foster, and John M. Foster, of Chestnut Township, Knox County. Potitioner alloges that the firm owe him $1,165 on a promissory note given on money loaned and debts assumed. It is claimed that the debtors, on the 12th day of March last, made a public salo of a portion of their property, and with the procoods made several preferential payments; another similar sale was made the next day. Joseph C. Foster also sold & large amount of land to pay some mortgages and a debt to the First National Bank of Knoxville. The dobtors acknowledged the charges, and were adjudicated bankrupts by confession, and a warrant issued returnable 1874. before Register Johnson, May 14, Louis De Jonge filed a petition against William Tidd, alleging that he has allowed a judgment by confession to be entered against him in the Superior Court for the sum of $204.25. Tidd filed a confession and was adjudicated bankrupt thereon. 15. The warrant issued is returnable May An order for examination in the case of J. R. Bickerdike was made. A divividend of 20 per cent was ordered to be made in the matter of Hoartt, Watt & Co. SUPERIOR COURT IN BRIEF. J. T. Nelson, for the use of L. Wolf, commenced a suit against John Garland for $2,000. John Dawson and Thomas H. Miller begun an action against Joseph H. Shaw claiming $2,500. CIRCUIT COURT. Maria I A. Marx, by her next friend, commenced an detion against William Ettinghausen, laying damages at $2,000. THE CALL. JUDGE ROGERS-191, 194, 100, 198, 200 to 207, 210 to 212, 217, 219. JUDGE BooTH-69 to 88, except 85. JUDGE TREE-234, 235, 335, 1,820, and others. JUDGE FARWELL-No call announced. JUDGE McRoBEnTs-20 to 61, except 36, 38, 39, 40, 54, 60. JUDGE JAMESON-101, 105, 107, 100 to 112, 114, 116 to 120, 123, 124, 126, 127, 128, 130. JUDGE SMITH-Assists Judge McRoberts, JUDGMENTS. SUPERIOR COURT-

16. April 22, 1874 The Grange Advance Red Wing, MN
Article from The Grange Advance, April 22, 1874

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Chicago Cor respondence. More about Bank Swindles-Put not your trust in National Banks, or Government Inspectors-How Heathen Chinee" the " of Chicago made their 6 Assets." A short time since I gave you an account of the Franklin Bank of this city, now in the hands of a receiver. This being a small private bank and doing a small business attracts interest more of its from the bold rasoality manage ment, than from the extent of its business. The Manufacturers' National, which failed about the same time, differred from the Franklin in three particulars: first, it was a National Bank, secondly, it did a very large business, and thirdly, it practiced its chicanery more adroitly. Being a National Bank, with a capital of $500,000, no business man thought it necessary to make a special investigation; that was left for the Government Bank Inspector, Mr. Spink, to do. Every three months this official declared that he had made the proper investigation, and pronounced the Bank sound. In 1872, Mr. Buchanan, then with the National Bank of Commerce, left that institution and became Vice President of the Manufacturers. This move on his part add. ed greatly to the public confidence, as he was considered a prudent and careful bank officer. The deposits of the Manufacturers' National therefore swelled to $900,000, and all looked serene. The knowing ones, to be sure, wagged their heads wisely as the President, Ira Holmes, drove by in his dashing turnout. But though he was known to be a sporting gentleman, and a dashing speculator in real estate, no connection was supposed necessary between the Manufacturers' National Bank and the private transactions of its president. The world is learning that the moral character of the Managers of any financial institution ought to have an important bearing upon its credit. Ira was a wily manager. He sent his feelers out in all directions in search of depositors ; he buttonholed men on the street corner, and in his plausable, friendly way solicited their bank accounts. Ira Holmes is one of those Napoleonic men who havea "star" and believe in it. No " pent up Utica" of a Bank should contract his powers, so he built a splendid hotel on the corner of Wabash Avenue and Adams street. He got himself seven or eight fast horses, he attended all the races, and generally had one or more horses contesting the prize. Ira laid out a sub-division to the city of Chicago, and altogether was emphatically a man of enterprise." September crisis came and proved that dash and enterprise wouldn't sustain a rotten bank. The Manufacturers' Bank struck its flag, and on the 27th a large card displayed from the door announced that "this Bank will no longer receive deposits or pay checks." Hundreds of fear stricken depositors rushed in dismay to the bank, anxiously enquiring what they would probably pay, and what the chances were. Country bankers rushing in from different states -some from your own State of Minnesota, their own solveney perhaps depending upon their deposits with the Manufacturers' National. Toall these enquiries the reply was made: in Weare in liquidation" (the banking law \provides that a national bank may go into liquidation by turning out its assets to the creditors)-" but we have good paper and we will turn that out to satisfy your claims." So the anxious depositor, who feared he mightiget nothing if he let an opportunity slip, was shown John Smith's notes which they offered to give

17. January 27, 1875 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, January 27, 1875

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age and stability of the Intter, ought certainly to have nn equal amount of savings deposits. Instead of this, we find that Rhode Island has thirty-soven savings banks, while Cook County has but sixteen, and nearly $50,000,000 of deposits, while Cook County has not $10,000,000. In other words, Rhodo Island, with half the population, has twice as many savings banks as Cook County, with five times the amount of deposits. The reason of this marked difference must be found mainly in the difference between the laws of Rhode Island and those of Illinois. In the formerState the community feels assured of protection against loss ; in Illinois there is no protection afforded by law, andhence less general confidence feltin the savings institutions. As nn instance of this, it may be noted that the savings deposits in Rhode Island have increased $2,154,318 within the last year,-the year after the panic, when the manufacturers have been sufferors to a greater extent than any other business. On the other hand, the savings deposits of Cook County, which are now less than $10,000,000, were over $12,000,000 two years ago. It is impossible to make any comparisons between themanner in which the Rhode Island savings banks are conducted and the management of our savings banks, since the Intter are governed by no statutory rules or regulations. One item, however, may be stated approximately, and it is important. In Rhode Island it appears that about three-fifths of the deposits are invested in real estate mortgages, while less than one-third of the Cook County savings deposits are invested in this safe manner. These discrepancies will always appear so long as there is no adequate legal protection for depositors in Illinois savings banks. In Rhode Island the failure of the SPRAGUE banks-the Cranston and Franklin -will not involve any loss to depositors, whereas the failure of the Franklin Bank in this city has cost the depositors nearly every dollar they put into it. We have made this comparison for the purpose of impressing upon the Illinois Legislaturo the importance of immediately carrying out the spirit of the Constitution with regard to savings banks. Mr. CULLOM'S bill is a good starting point ; and, now that it is introduced, it may be improved till it isin a sat_ isfactory shape. It is said that legislation on this subject will be opposed by some Chicago men, who prefer to have a practical monopoly of the savings banking business on account of their personal reputation, which alone attracts business under the present system. It is better for the people, however, that the business should be more widely dis. tributed, and that they should have something more than " personal reputation to rely upon in time of financial distress. No opposition should be permitted to defeat the passage of the law whenever it is modeled upon the best laws of the other States.