4468. Graham & Sons (Chicago, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
June 29, 1917
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
159daf97

Response Measures

None

Description

The private banking firm Graham & Sons abruptly closed/suspended operations June 29–30, 1917; federal receiver (Chicago Title & Trust) was appointed and an involuntary bankruptcy petition filed. Newspapers describe crowds and detectives breaking in, but the closure and immediate receivership (and later bankruptcy proceedings) indicate a suspension that led to closure rather than a mere isolated run. Causes cited include heavy real-estate loans (illiquid assets) and large withdrawals for Liberty bonds/war contributions.

Events (2)
1. June 29, 1917 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Illiquid heavy real-estate loans and investments combined with large withdrawals for Liberty bonds and Red Cross contributions drained cash and forced suspension.
Newspaper Excerpt
The old private banking firm of Graham & Sons ... closed its doors today. An involuntary petition in bankruptcy was filed an hour later. Federal Judge Carpenter appointed the Chicago Title & Trust company receiver
Source
newspapers
2. June 30, 1917 Receivership
Newspaper Excerpt
Federal Judge Carpenter appointed the Chicago Title & Trust company receiver and William C. Niblack, vice president of the company, took charge of the bank tonight.
Source
newspapers

Newspaper Articles (12)
1. June 29, 1917 The Evening Herald Albuquerque, NM
Article from The Evening Herald, June 29, 1917

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Article Text

PRIVATE BANKING FIRM IN CHICAGO CLOSES ITS DOORS Graham & Sons, With Deposits Estimated at from $3,000,000 to $5,000,00, Act for Protection of Depositors. By Associated Press. Chicago, June 29.-Doors of the private banking firm of Graham & Sons, which has heavy deposits were closed this afternoon. A police guard was requested Deposits of the bank. which as a private institution and did not make public reports, were generally estimated at from $3,000,000 to $5.000.000. One of the Grahams issued this statement "The increased cost of living and general disposition on the part of the depositors to purchase liberty bonds and make Red Cross contributions has resulted in the withdrawal of large sums of money. All of the assets of the bank are in a safe position. There has be on no high financing or fraudulent mortgages taken or given. We closed the doors of the bank so that all may be treated alike." Andrew Graham, who founded the firm died last year. His two sons have conducted the business since.

2. June 30, 1917 The Detroit Times Detroit, MI
Article from The Detroit Times, June 30, 1917

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Article Text

BIG CHICAGO BANK FAILS The 4 Graham & Sons. One of Oldest W, In City, Closes Its Doors War cond CHICAGO, June 30.-Graham & trial hazardSons' bank, oldest and largest pripossible stvate bank in the city, was in the taken to hands of the federal authorities toguard the day. The Chicago Title & Trust of the murcompany was appointed receiver worker. Thelate yesterday after the bank's offibetween 3,5cials had voluntarily closed its doors. and 4,000.00 This action by Federal Judge Carsons engagpenter anticipated voluntary prothe product geedings in circuit court. war materia State's Attorney Hoyne also had exposed to a force of officers at the bank. They Ventilation chopped down the back door with larly import axes late yesterday. when officials edmittence At the

3. June 30, 1917 The Daily Missoulian Missoula, MT
Article from The Daily Missoulian, June 30, 1917

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Article Text

OLD CHICAGO BANKING HOUSE CLOSES DOORS Chicago, June 29.-The old private banking firm of Graham & Sons, the deposits of which have been estimated from $3,000,000 to $5,000,000 and which held an important place in the financial affairs of the west side, closed its doors today. An involuntary petition in bankruptcy was filed an hour later. Federal Judge Carpenter appointed the Chicago Title & Trust company receiver and William C. Niblack, vice president of the company, took charge of the bank tonight. The preliminary examination by counsel for the creditors in the federal court indicated the bank would be able to pay its obligations in full. The bank was founded by Andrew Graham, a power in Illinois politics. He died a year ago since when his sons, Ralph and Frank have been in charge of the business. - GET IN THE SWIM -

4. June 30, 1917 The Birmingham Age-Herald Birmingham, AL
Article from The Birmingham Age-Herald, June 30, 1917

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Article Text

BIG PRIVATE BANK OF CHICAGO FAILS; POLICE ARE CALLED Chicago, June 29.-The old private banking firm of Graham & Sons, the deposits of which have been estimated from $3,000,000 to $5,000,000, and which held an important place in the financial and industrial affairs of the West Side, closed its doors today. An involuntary petition in bankruptcy was filed an hour later, after 15 detectives directed by an assistant state's attorney, broke down the rear doors of the bank with crowbars and seized all of the bank's records. The bank was founded by Andrew Graham, a power in Illinois politics. He died a year ago, since when his sons, Ralph and Frank, have been in charge of the business. The bankruptcy petition was filed by William Smale, John Kehoe and John Heiland, owners of claims under $5000 each. The petitions stated that the Grahams had admitted in writing that they were unable to meet their financial obligations and were willing to have their affairs settled by a bankruptcy court. Frank Graham said the bank was perfectly solvent and attributed to demands for war contributions a shortage in currency. Federal Judge Carpenter appointed the Title and Trust company receiver and William C. Niblack, vice president of the company, took charge of the bank tonight.

5. June 30, 1917 South Bend News-Times South Bend, IN
Article from South Bend News-Times, June 30, 1917

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Article Text

Graham and Sons, Private Bankers, Close Their Doors CHICAGO, June 30.-The old private banking firm of Graham & Sons, the deposits of which have been estimated from $3,000,000 to $5,000,000, and which held an important place in the financial and industrial affairs of the west side, closed its doors Friday. An involuntary petition in bankruptcy was filed an hour later, after 15 detectives, directed by an assistant state's attorney, broke down the rear doors of the bank with crowbars and seized all of the bank's records. The bank was founded by Andrew Graham, a power in Illinois politics. He died a year ago, since when his sons, Ralph and Frank, have been in charge of the business. Fail On Obligations. The bankruptcy petition was filed by William Smale, John Kehoe and John Heiland, owners of claims under $5,000 each. The petitions stated that the Grahams had admitted in writing that they were unable to meet their financial obligations and were willing to have their affairs settled by a bankruptcy court. Frank Graham said the bank was perfectly solvent and attributed to demands for war contributions a shortage in currency. Federal Judge Carpenter appointed the Chicago Title & Trust Co., receiver, and William C. Niblack, vice president of the company, took charge of the bank. Had Court Funds. August W. Miller, clerk of the circuit court, also filed a petition for a receiver in the state courts. It alleges that he had $143,000 of funds belonging to the court on deposit when the bank closed. The hearing

6. June 30, 1917 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, June 30, 1917

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Article Text

BANK CLOSED IS SOLVENT, BELIEF Private Institution of Graham & Sons Thought to Have Assets in Excess of Liabilities. THREE INQUIRIES ARE STARTED Two Courts and State's Attorney's Office Begin Looking Into Case— Were 27,000 Depositors. Chicago, June 30.-Two courts and the state's attorneys' office today began looking into the affairs of Graham & Sons, a private bank which closed its doors yesterday. A receiver appointed by the United States district court is in charge of the institution. The circuit court issued subpoenas for an inquiry today into what has become of $143,000 of county money on deposit in the bank. Maclay Hoyne, state's attorney, whose assistants and deputies broke down the door of the bank after it closed yesterday, announced that all documents seized would be turned over to representatives of the United States court, but that his office would continue to watch for evidence which might give basis for criminal action. Bank Believed Solvent. Optimistic opinions concerning the possible straightening out of the bank's

7. June 30, 1917 Evening Star Washington, DC
Article from Evening Star, June 30, 1917

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Article Text

CHICAGO BANK CLOSES DOORS. Private House of Graham & Sons Had Large Deposits. CHICAGO, June 30.-The old private banking firm of Graham & Sons. the deposits of which have been estimated from $3,000,000 to $5,000,000, and which held an important place in the financial and industrial affairs of the west side, has closed its doors. The bank was founded by Andrew Graham, a power in Illinois politics. He died a year ago, since when his sons, Ralph and Frank, have been in charge of the business. Frank Graham said the bank was perfectly solvent and attributed its difficulties to demands for war contributions and a shortage in currency. Federal Judge Carpenter appointed the Chicago Title and Trust Company receiver and William C. Niblack, vice president of the company. took charge of the bank.

8. June 30, 1917 The Detroit Times Detroit, MI
Article from The Detroit Times, June 30, 1917

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Article Text

BIG CHICAGO BANK FAILS Graham & Sons, One of Oldest In City, Closes Its Doors CHICAGO, June 80.-Graham & Sons' bank, oldest and largest private bank in the city, was in the hands of the federal authorities today. The Chicago Title & Trust company was appointed receiver late yesterday after the bank's officials had voluntarily closed its doors. This action by Federal Judge Car penter anticipated voluntary proceedings in circuit court. State's Attorney Hoyne also had a force of officers at the bank. They chopped down the back door with axes late yesterday, when officials refused them admittance. At the time police reserves were preserving order among hundreds of depositors crowded about the institution. The bank is understood to have over $4,000,000 in deposits divided between 27,000 depositors. Its assets are estimated at $6,000,000 and liabilities $5,750,000.

9. June 30, 1917 New-York Tribune New York, NY
Article from New-York Tribune, June 30, 1917

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Big Chicago Bank Suddenly Suspends; Detectives Break In Graham & Sons Say Realty Loans and Liberty Bonds Forced Close [By Telegraph to The Tribune) Chicago, June 29.- The bank of Graham & Sons, 659 West Madison Street, which was believed to be the strongest private bank in Illinois, suspended today. The bank was founded by Andrew Graham, once a power in Illinois politics. Early in the afternoon the doors were swung shut and locked from the inside. No explanation was given. Employes returning from luncheon were stopped by the massive brass barriers. Forty policemen were rushed to the scene to handle the crowds. A dozen detectives from the office of State's Attorney Hoyne quickly arrived. They rapped for admittance, but got no response. They hastened to the rear door and found a heavy iron grate, locked and barred. They got axes and crowbars and smashed their way in. At about the same moment George M. Reynolds, president of the Continental and Comercial Bank, through which the Graham Bank had cleared, gave out a statement in which he said: "The Graham Bank had loaded up heavily on real estate loans and real estate investments. The agitation against private banks, the heavy taking of Liberty bonds by depositors and small depositors taking out their funds drained the bank. "Scaling down some of the real estate securities as much as 70 per cent would still leave the assets of the bank $250,000 in excess of the liabilities. There is nothing of doubtful nature in the management of the bank-no crookedness-and there has been no skyrocketing of investments." Bankers familiar with the condition of Graham & Sons Bank to-day declared that the assets of the bank would total $6,000,000 and that the liabilities would not exceed $5,750,000. This is after the "scaling down" process of fixing a conservative value on the securities.

10. July 1, 1917 Albuquerque Morning Journal Albuquerque, NM
Article from Albuquerque Morning Journal, July 1, 1917

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BANK THAT FAILED HAD $3,845,000 IN DEPOSITS (BY MORNING JOURNAL SPECIAL LEASED WIRE) Chicago, June 30.-Preliminary investigation today showed that deposits in the private bank of Graham & Sons, closed yesterday, amounted to $3,845,000 and that the bank had $142.000 in cash when it decided to suspend business. The bank is in the hands of a receiver appointed by the United States dtsirtet court. Application by an attorney for depositors, seeking to have the assets of the Graham estate, said to be more than $2,000,000. held in trust in favor of creditors whose deposits were listed before the elder Graham's death in 1916, was refused by United States Judge Carpenter, William C. Niblack, counsel for the receivers, announced that he had found no irregularities in his investigation of the bank.

11. July 2, 1917 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, July 2, 1917

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GOVERNMENT AND STATE TO UNITE IN BANK INQUIRY CHICAGO, July 2. - Two courts and the state's attorney office today began an investigation of the affairs of Graham & Sons, one of the oldest private banks in the city which closed its doors Friday. A receiver appointed by the United States district court is in charge of the institution. Being a private bank, no reports were issued, but unofficial statements by those connected with the concern, placed the assets at $6,000,000. liabilities at $5,000,000, and deposits at $4,000,000. County Money in Bank The state circuit court issued subpoenas for an inquiry today into what has become of $143,000 of county money on deposit in the bank. Maclay Hoyne, state's attorney, whose assistants and deputies broke down the door of the bank after it closed yesterday, announced that all documents seized would be turned over to the United States court, but that his office would continue to watch for evidence which might give basis for grand jury action. Optimistic opinions concerning the possible straightening out of the bank's affairs came from several sources. James G. Condon, attorney for the Chicago Title & Trust company, receiver. announced that a preliminary investigation indicated that assets would exceed liabilities by perhaps $600,000. Bank is Solvent George M. Reynolds, a banker, was quoted as saying that figures he had seen "would indicate that the bank was solvent." There were about 27,000 depositors, many of whom were foreigners who conducted small shops on the west side. The Graham bank was regarded as one of the strongest private institutions in the state. Andrew J. Graham, its founder, died a year ago, and his two sons succeeded to the management. Since that time, bankers said, the non-liquid nature of the bank's assets, chiefly paper on west side real estate, and of late, heavy with drawals of cash due to war investments and charities, had conspired to make the institution's position difficult. It was said that the Graham family had made strong efforts to save the bank.

12. July 2, 1917 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, July 2, 1917

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MAY HOLD ASSETS OF GRAHAM ESTATE Attorney Wants $2,000,000 Held in Trust to Meet Demands of Depositors in Failed Bank. Chicago, III., July 1.-Preliminary investigation today shows that deposits in the private bank of Graham & Sons, closed yesterday, amounted to $3,845,000 and that the bank had $142,000 in cash when it decided to suspend business. Subpoeanes were issued for Mrs. Minnie Graham, widow of Andrew J. Graham, founder of the bank, and her three sons, Ralph R., Frank J. and John B. Graham, to appear before a referee in bankruptcy Monday morning. The bank is in the hands of a receiver appointed by the United States district court. Application by an attorney for depositors seeking to have the assets of the Graham estate, said to be more than $2,000,000, held in trust in favor of creditors, whose deposits were listed before the elder Graham's death in 1916, was refused by United States Judge Carpenter.