4440. Garfield Park Bank (Chicago, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
August 16, 1906
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
309323f2

Response Measures

Full suspension

Other: Receiver appointed (receivership) and bank closed by court action; president contested insolvency and claimed he could pay if given time.

Description

Depositors withdrew funds for two days following the collapse of the Milwaukee Avenue State Bank; the Garfield Park Bank was placed in the hands of a court-appointed receiver (Henry Hiestand/Heistand) in mid-August 1906 and no reopening is reported. Bank described as private property of Ellis B. Drake, supporting classification as private. OCR names/dates corrected where obvious (appointment reported Aug 16–17, 1906).

Events (3)
1. August 16, 1906 Run
Cause
Local Banks
Cause Details
Depositors withdrew funds following the collapse/failure of the Milwaukee Avenue State Bank (Stensland scandal).
Measures
President Drake indicated intent to invoke the 30-day notice rule for savings depositors and asked for time to dispose of securities to pay creditors.
Newspaper Excerpt
There was a run of two days.
Source
newspapers
2. August 16, 1906 Suspension
Cause
Government Action
Cause Details
Court-appointed receiver (Judge Bethea appointed Henry Hiestand/Heistand) placed the bank in receivership after creditors petitioned following the run and failures related to Milwaukee Avenue State Bank.
Newspaper Excerpt
was placed in the hands of a receiver by Judge Bethea in the United States District Court.
Source
newspapers
3. August 17, 1906 Receivership
Newspaper Excerpt
Receiver Fetzer ... to pay next week 20 per cent of their claims. ... the Garfield Park Bank ... was placed in the hands of a receiver yesterday. It is asserted that the bank and its president, Ellis E. Drake, are insolvent.
Source
newspapers

Newspaper Articles (13)
1. August 17, 1906 Evening Star Washington, DC
Article from Evening Star, August 17, 1906

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Article Text

STENSLAND'S SECRETS Revealed at Chicago by the Fugitive's Daughter. Mrs. Igna Sandberg, daughter of Paul O. Stensland, wrecker of the Milwaukee Avenue State Bank, arrived in Chicago yesterday from her home at Madison, Wis. She is said to have told the authorities all she knows of hier father's affairs, especially those relating to Mrs. Leone Langdon Key, the statuesque and dashing brunette to whom her father was so generous. "I do not know where my father has gone," she said, "and I do not know much about his financial affairs. I knew he spent much money on women. He installed in his home Leone Langdon Key, whom I introduced to him, and this compelled me to go to Madison and teach music." As a result of the Stensland bank collapse, there has been so heavy a run on the Garfield Park Bank, a small institution, that it was placed in the hands of a receiver yesterday. It is asserted that the bank and its president, Ellis E. Drake, are insolvent. Mr. Drake denied this statement. There were two more tragedies yesterday as a result of the Stensland bank trouble. Gustav Turkhardt, a depositor, went mad and was locked up. Mrs. Mary Jara, another depositor, also became crazy and was locked up to prevent her from killing her children. Receiver Fetzer, the original receiver, is sending out notices to depositors that he will be prepared to pay next week 20 per cent of their claims. He has about $800,000 in sight. Walter Frantzen, formerly President Stensland's private secretary, is on his way to Chicago, and is expected to tell the police some things. Cashier Hering has publicly acused Frantzen of embezzling $40,000 from the bank, and among Stensland's papers the examiners discovered an envelope bearing the legend, "Frantzen's stealings, $69,000." This was in the fugitive president's handwriting. The police are inclined to think that the charges against Frantzen are part of a plot to discredit him.

2. August 17, 1906 The Cairo Bulletin Cairo, IL
Article from The Cairo Bulletin, August 17, 1906

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IN CHICAGO AS RESULT OF CRASH FOLLOWING STENSLAND'S GIGANTIC STEALS. RECEIVER IS APPOINTED For Garfield Park Institution But President Says It is Scivent-Fugitive Banker is Again "Seen" in Many Places. Chicago, III., Aug. 16.-The Garfield Park Bank, a small institution located at 2024 West Madison street, was placed in the hands of a receiver late this afternoon by Judge Bethea, of the United District court. Three creditors with claims amounting to several thouand dollars filed a petition asking hat Ellis E. Drake, president of the institution, as well as the bank be declared insolvent. The assets of the bank are given in the petition. The court appointed Henry Heistand receiver, fixing his bond at $10,000. The collapse of the Milwaukee Ave nue State Bank is said to have caused the doors of the smaller institution to be closed. President Drake declared tonight that he was solvent and if given time to dispose of certain securities, would pay off all creditors in full. The police are still busy trailing down clews regarding the fugitive banker. Yesterday a man said he saw him in Pittsburg, but as all efforts to find him have failed, the report is not believed. Today Stensland has been seen in numerous places.

3. August 17, 1906 The Aberdeen Democrat Aberdeen, SD
Article from The Aberdeen Democrat, August 17, 1906

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clared insolvent. The assets of the bank are not given in the petition of the creditors. The court appointed Henry Hiestand receiver and fixed his bond at $10,000. The collapse of the Milwaukee Avenue Bank is said to have caused the doors of the smaller institution to be closed. Ever since the failure of the Milwaukee Avenue Bank depositors in the Garfield Park Bank have been withdrawing their deposits. Yesterday afternoon, when the three creditors who asked for the receiver went to the bank for their money. They were given no satisfaction and the courts action followed. President Drake declared last night that he was solvent and if given time to dispose of certain securities, he would be able to pay all of the creditors in full. He attributes the run on his bank to the failure of the Milwaukee Avenue Bank. The attorneys for the crdeitors said last night that they had been unable to ascertain the amount of th ebank's liabilities, but it is not believed they are very large.

4. August 17, 1906 The Washington Times Washington, DC
Article from The Washington Times, August 17, 1906

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Another Chicago Bank Closes Its Doors Today CHICAGO, Aug. 17.-As an echo of the crash of the Milwaukee Avenue State Bank, the Garfield Park Bank has closed its doors. Deposits approximating $100,000 indicate the extent of the failure to the community on the West Side. The bank, private property of Ellis B. Drake. is in the hands of Receiver Henry Hiestind, appointed by the Federal court. There was a run of two days.

5. August 17, 1906 New-York Tribune New York, NY
Article from New-York Tribune, August 17, 1906

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FAILURE ON FAILURE. Second Chicago Bank Involved in Stensland Wreck. Chicago, Aug. 16.-The Garfield Park Bank, a small institution at No. 2024 West Madison street, was placed in the hands of Henry Hiestand, receiver, this afternoon by Judge Bethea, in the United States District Court. Three creditors, with claims amounting to several thousand dollars, filed the petition in court. asking that Ellis E. Drake, president of the institution, as well as the bank, be declared insolvent. The assets of the bank are not given in the petition of the creditors. The collapse of the Milwaukee Avenue State Bank is said to have caused the doors of the smaller bank to be closed. Ever since the failure of the Milwaukee Avenue Bank the depositors in the Garfield Park Bank have been withdrawing their deposits. This afternoon when the three creditors who asked for the receiver went to the bank for their money they got no satisfaction, and the court's action followed. President Drake said to-night that he was solvent, and if given time to dispose of certain securities, he would be able to pay all of the creditors in full. Judge Bethea, in the United States District Court, to-day appointed Charles G. Dawes, president of the Central Trust Company, receiver of the Milwaukee Avenue Co-Operative Store, the majority of the stock of which is owned by the fugitive president of the Milwaukee Avenue State Bank. The bond of the receiver was fixed at $150,000. After disposing of the co-operative store matter Judge Bethea named W. F. Ziabel receiver for the Steel Ball Company, which is another concern in which Paul O. Stensland is a large stockholder. An attempt was made to-day by Archibald Cattell, an attorney, to have Judge Patten, of the Circuit Court, set aside the Eide judgment, on which the receivership proceedings before Judge Gibbons against the Milwaukee Avenue State Bank were based. Judge Patten declined to hear the motion. Cattell then verbally informed Jacob Newman and S. O. Levinson, attorneys for Eide, that the motion would be presented again late in the day before some other judge. Suit for $50,000 damages has been filed in the Superior Court against the Milwaukee Avenue State Bank by the Polish National Alliance. John C. Fetzer, receiver for the bank, announced to-day that the actual work of paying depositors 20 per cent of their accounts had begun. The Clearing House Association of Chicago has decided to take a hand in the tangled affairs of the wrecked bank. The clearing house bank examiner has been ordered to make a thorough examination of the conditions existing in the looted institution and report his findings to the association.

6. August 18, 1906 New-York Tribune New York, NY
Article from New-York Tribune, August 18, 1906

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MONEY FOR DEPOSITORS. Stensland's Dupes to Get 20 Per Cent To-day-Hunt Still On. Chicago, Aug. 17.-Judge Brentano issued an order this afternoon permitting Receiver Fetzer to pay a dividend of 20 per cent to all depositors in the Milwaukee Avenue State Bank. Payments will begin to-morrow morning. The Polish National Alliance of the United States of North America to-day filed a bill in the Superior Court here asking that another receiver for the Milwaukee Avenue State Bank be appointed. John C. Fetzer, present receiver of the bank, who was appointed by Judge Brentano recently, is made a party to the suit. The bill asks that Judge Brentano set aside a judgment entered in the Circuit Court by Judge Gibbons, in favor of T. T. Eide, against the bank. The bill is based on the allegation that the alliance has $48,000 deposited in the bank, that under the insurance act of 1893 these are exempt funds, being death benefits, and should be separated from other funds in the bank. The bill also alleges that the alliance represents the majority of the creditors of the bank, and that its interest should be protected by the courts. Ellis E. Drake, who was in control of the Garfield Park Bank, for which a receiver was appointed by Federal Judge Bethea yesterday, gave notice to-day that he would ask that the receivership be set aside. Drake declared that he can show ample securities and can prove the needlessness of a receiver. Receiver Heistand to-day appointed Drake custodian of the property until such time as the receiver himself can take formal charge. Notice was given to-day that the bank would take advantage of the law requiring savings depositors to give thirty days' notice before the withdrawal of funds. Drake to-day said that the obligations of the bank amount to $40,000. He says he has real estate valued at $89,000. It is declared, however, that much of the property is incumbered with mortgages. East Liverpool, Ohio, Aug. 17.-The police force are searching for Paul O. Stensland, who, it is thought, came to this city some time yesterday. Detectives from Pittsburg also are here looking for the banker. He is safi to have left Pittsburg Wednesday, and is said to have been traced to East Liverpool.

7. August 22, 1906 The Lamar Register Lamar, CO
Article from The Lamar Register, August 22, 1906

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Miscell neons. Alexander G. Chickholm, paying teller of the First National bank of Birmingham, Ala., has been arrested charged with the embezlement of $97,000 of the funds of the bank. The republicans of the Eighteenth Illinois congressional district have renominated Speaker Cannon for the 18th consecutive time. this being the 17th nomination by acclamation The convention also enthusiastically endorsed Mr. Cannon for president. While the governor of South Carolina was speaking to a mob recently in an effort to save the life of a negro brute, the prisoner was removed from the view of the executive and riddled with bullets. Texas democrats have nominated T. M. Campbell, a railrçad lawyer for governor. The Garfield Park bank of Chicago, has been placed in the hands of a receiver by Judge Bethea, of the United States district court. The failure was caused by the collapse of the Milwaukee Avenue State bank. R. B. Brown, of Zanesville, O., was unanimously chosen commander-inchief of the G. A. R. at the Minneapolis encampment, the other candiI dates withdrawing Archbishop Ire9 land, of St. Paul, was chosen chap- lain. Acting apparently with a definite 1 plan and at a signal terrorists and revolutionists in Russian Poland re. cently inaugurated a carnival of 0 bomb throwing in various cities of d the country. Many deaths resulted. a mostly of policmen, gendarmes and soldiers. 1 After a conference at Topeka with . Secretary Crumbine, of the state e board of health, the grocery jobbers d of Kansas agreed to stand by the g rules of the board and not handle any e stock which the chemists of the board found to contain adulterants unless the same was properly labeled. V The democrats of Nebraska have a nominated A. C. Shallenberger, of I Alma, for governor. Western railroads have decided to t call in all outstanding passes on Aue gust 28 in order to conform with the g new rate bill. Acting Attorney General Robb, has I rendered an opinion to the effect that d Mexican laborers could not be ime ported into Texas under contract to e work on railroads in that state. t The Standard Oil company has reI duced the price of western crude oil three cents a barrel. Two men were run over and killed in the Burlington yards at Lincoln, 9 Neb., recently while temporarily disP abled by the intense beat. Kansas raised more wheat this year . than Missouri, Oklahoma, California and Michigan combined. 0 Disastrous forest fires have been ravaging the northern part of Minnesota, and many settlers have aban1 doned their homes. The total casualties to the veterans a at the Minneapolis reunion is five $ killed, eight injured and 46 prostraJ tions.

8. August 23, 1906 The Plymouth Tribune Plymouth, IN
Article from The Plymouth Tribune, August 23, 1906

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Another Chicago Bank Fails. The Garfield Park Bank, a small institution, located at 2024 West Madison street, Chicago, was placed in the hands of a receiver by Judge Bethea in the United States District Court.

9. August 24, 1906 Dakota Farmers' Leader Canton, SD
Article from Dakota Farmers' Leader, August 24, 1906

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Another Chicago Failure. The Garfield Park Bank, a small Institution in West Madison Street, Chicago, was placed in the hands of a receiver late Thursday afternoon by Judge Bethea in the United States district court.

10. August 24, 1906 The Springfield Herald Springfield, CO
Article from The Springfield Herald, August 24, 1906

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Miscellneona. Alexander G. Chickholm, paying teller of the First National bank of Birmingham, Ala., has been arrested charged with the embezlement of $97,000 of the funds of the bank. The republicans of the Eighteenth Illinois congressional district have renominated Speaker Cannon for the 18th consecutive time, this being the 17th nomination by acclamation. The convention also enthusiastically endorsed Mr. Cannon for president. While the governor of South Carolina was speaking to a mob recently in an effort to save the life of a negro brute, the prisoner was removed from the view of the executive and riddled 1 with bullets. 1 Texas democrats have nominated T. , M. Campbell, a railrcad lawyer for 1 governor. . The Garfield Park bank of Chicago, has been placed in the hands of a receiver by Judge Bethea, of the United 9 States district court. The failure r was caused by the collapse of the Milwaukee Avenue State bank. V R. B. Brown, of Zanesville, Q., was 8 unanimously chosen commander-inS chief of the G. A. R. at the Minner apolis encampment, the other candid dates withdrawing. Archbishop Iree land, of St. Paul, was chosen chaplain. e Acting apparently with a definite $, plan and at a signal terrorists and 0 revolutionists in Russian Poland re, cently inaugurated a carnival of O bomb throwing in various cities of d the country. Many deaths resulted. n mostly of policmen, gendarmes and soldiers. d After a conference at Topeka with e. Secretary Crumbine, of the state e board of health, the grocery jobbers d of Kansas agreed to stand by the rules of the board and not handle any g stock which the chemists of the board e found to contain adulterants unless the same was properly labeled. w The democrats of Nebraska have a nominated A. C. Shallenberger, of I Alma, for governor. Western railroads have decided to t call in all outstanding passes on Aue gust 28 in order to conform with the g new rate bill. Acting Attorney General Robb, has of rendered an opinion to the effect that d Mexican laborers could not be ime ported into Texas under contract to work on railroads in that state. e The Standard Oil company has reit er duced the price of western crude oil three cents a barrel. Two men were run over and killed a, in the Burlington yards at Lincoln, O Neb., recently while temporarily disor abled by the intense heat. h. Kansas raised more wheat this year r than Missouri, Oklahoma, California e and Michigan combined. to Disastrous forest fires have been ravaging the northern part of Minnesota, and many settlers have abann doned their homes. 4, The total casualties to the veterans ke at the Minneapolis reunion is five is killed, eight injured and 46 prostra10 tions.

11. January 3, 1907 The Greenville Journal Greenville, OH
Article from The Greenville Journal, January 3, 1907

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BUSINESS FAILURES Jan. 14-Parsons, Snyder & Co., Cleveland, O.; liabilities, $150,000. 18-G. S. McReynolds & Co., Chicago; liabilities, $400.000. Feb. 8.-Boliver County Bank, Cleveland, Miss.; liabilities, $110,000; assets, $130,000. 15-Bank of America, Chicago, placed in receiver's hands. 26-Cash Buyers' Union, Chicago, placed in receiver's hands Williamson Libbey Lumber Co., Oshkosh, Wis.; liabilities, $500,000. Mar. 1-Southern Bank & Trust Co., Ft. Smith, Ark., owing depositors $80,000. 2-Walsh, president defunct Chicago National bank, arrested on charge of falsifying reports. 27-National Business College, Quincy, Ill., assigns; liabilities, $30,000; assets, $100,000. 29-North Freedom (Wis.) bank closed by examiner. Apr. 2-Teis, Smith & Co., bankers, Pekin, Ill.; liabilities, $100,000. 24-First National bank. Attalla, Ala., closed by national bank examiner. May 2-Delmont national bank, Delmont, Pa., closed Receiver for American Reserve Bond Co., St. Louis, appointed. 28-Joplin (Mo.) Savings bank closed by state officials. Jun. 18-Farmers' State bank of Clearfield, Ia., closed by state bank examiner. 30-White, Dunham Shoe Co., of Brockton and Boston, failed; liabilities, $400,000. Aug. 6-Milwaukee Ave. State bank, Chicago, closed by state bank examiner; liabilities, $4,000,000. 8-F. E. Coyne, ex-postmaster, Chicago, failed in bakery and luncheon business. 16-Garfield Park bank of Chicago closed as result of collapse of Milwaukee Ave. State bank. 28-Real Estate Trust Co., of Philadelphia, suspends business; liabilities, $7,000,000. Sep. 20-Bates National bank, of Butler, Mo., closed by directors. 29-Private bank at Middleport, O., closed. Nearly all deposits of $115,000 gone. Nov. 15-Bank of Beckwith & Co., at Evanston, Wyo., closed owing to financial troubles. 30-Three banks conducted by C. v. Chandler at Macomb, Colchester and Bardolph, III., closed for lack of ready cash. Dec. 1--Bank of Kiowa, I. T., closed on account of slow collections and inability to realize on assets. 12-Farmers' and Drovers' National bank of Waynesburg, Pa, closed by comptroller of currency. 13-Cummings Commi on Co., one of largest brokerage how es in northwest, suspends. 17-Lincoln bank of Morton Park, suburb of Chicago, fails.

12. January 3, 1907 The Elbert County Tribune Elbert, CO
Article from The Elbert County Tribune, January 3, 1907

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BUSINESS FAILURES Jan. 14-Parsons, Snyder & Co., Cleveland, O.; liabilities, $150,000. 18-G. S. McReynolds & Co., Chicago: liabilities, $400.000. Feb. 8.-Boliver County Bank. Cleveland, Miss.: liabilities, $110,000; assets. $130,000. 15-Bank of America, Chicago, placed in receiver's hands. 26-Cash Buyers' Union. Chicago, placed in receiver's hands Williamson Libbey Lumber Co., Oshkosh, Wis.; liabilities, $500,000. Mar. 1-Southern Bank & Trust Co., Ft. Smith, Ark., owing depositors $80,000. 2-Walsh, president defunct Chicago National bank, arrested on charge of falsifying reports. 27-National Business College, Quincy, III., assigns; liabilities, $30,000; assets, $100,000. 29-North Freedom (Wis.) bank closed by examiner. Apr. 2-Teis, Smith & Co., bankers, Pekin, III.; liabilities, $100,000. May 2-Delmont national bank. Delmont, Pa., closed Receiver for American Reserve Bond Co., St. Louis, appointed. Jun. 18-Farmers' State bank of Clearfield, Ia., closed by state bank examiner. Aug. 6-Milwaukee Ave. State bank, Chicago, closed by state bank examiner; Habilities, $4,000,000. 8-F. E. Coyne, ex-postmaster, Chicago, failed in bakery and lancheon business. 16-Garfield Park bank of Chicago closed as result of collapse of Milwaukee Ave. State bank. 28-Real Estate Trust Co., of Philadelphia, suspends business; liabilities, $7,000,000. Sep. 20-Bates National bank, of Butler, Mo., closed by directors. 29-Private bank at Middleport, O., closed. Nearly all deposits of $115,000 gone. Nov. 15-Bank of Beckwith & Co., at Evanston. Wyo., closed owing to financial troubles. 30-Three banks conducted by C. V. Chandler at Macomb, Colchester and Bardolph, III., closed for lack of ready cash. Dec. 1-Bank of Kiowa, I. T., closed on account of slow collections and inability to realize on assets. 12-Farmers' and Drovers' National bank of Waynesburg, Pa., closed by comptroller of currency. 13-Cummings Commission Co., one of largest brokerage houses in northwest, suspends. 17-Linceln bank of Morton Park. susurb of Chicago, fails.

13. January 5, 1907 The Garland Globe Garland, UT
Article from The Garland Globe, January 5, 1907

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BUSINESS FAILURES Jan. 14-Parsons, Snyder & Co., Cleveland, O.; liabilities, $150,000. 18-G. S. McReynolds & Co., Chicago; liabilities, $400.000. Feb. 8.-Boliver County Bank, Cleveland, Miss.; liabilities, $110,000; assets, $130,000. 10-Bank of America, Chicago, placed in receiver's hands. 26-Cash Buyers' Union, Chicago, placed in receiver's hands. Williamson Libbey Lumber Co., Oshkosh, Wis.; liabilities, $500,000. Mar. 1-Southern Bank & Trust Co., Ft. Smith, Ark., owing depositors $80,000. 2-Walsh, president defunct Chicago National bank, arrested on charge of falsifying reports. 27-National Business College, Quincy, III, assigns; liabilities, $30,000; assets, $100,000. 29-North Freedom (Wis.) bank closed by examiner. Apr. 2-Teis, Smith & Co., bankers, Pekin, Ill.; liabilities, $100,000. May 2-Delmont national bank, Delmont, Pa., closed Receiver for American Reserve Bond Co., St. Louis, appointed. Jun. 18-Farmers' State bank of Clearfield, Ia., closed by state bank examiner. Aug. 6-Milwaukee Ave. State bank, Chicago, closed by state bank examiner; liabilities, $4,000,000. 8-F. E. Coyne, ex-postmaster, Chicago, failed in bakery and luncheon business. 16-Garfield Park bank of Chicago closed as result of collapse of Milwaukee Ave. State bank. 28-Real Estate Trust Co., of Philadelphia, suspends business; liabilities, $7,000,000. Sep. 20-Bates National bank, of Butler, Mo., closed by directors. 29-Private bank at Middleport, O., closed. Nearly all deposits of $115,000 gone. Nov. 15-Bank of Beckwith & Co., at Evanston, Wyo., closed owing to financial troubles. 30-Three banks conducted by C. v. Chandler at Macomb, Colchester and Bardolph, III., closed for lack of ready cash. Dec. 1-Bank of Kiowa, I. T., closed on account of slow collections and inability to realize on assets.