4518. Jackson Trust & Savings Bank (Chicago, IL)

Bank Information

Episode Type: Run Only
Bank Type: savings bank
Start Date: February 20, 1906
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: 0d60597e

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Capital injected, Partial suspension, Books examined

Description

A run began Feb 20, 1906 after reports that the bank held Creelman paper and might be involved in the Bank of America failure. Directors raised cash, paid depositors, president resigned, and the bank remained open.

Events (1)

1. February 20, 1906 Run

Cause: Bank Specific Adverse Info
Cause Details: Reports that the bank held loans/paper of F. C. (Frank) Creelman and might be involved in the recent Bank of America failure; rumors exaggerated amounts of the Creelman loan.
Measures: Directors raised cash (about $800,000 reported), obtained funds from Continental National and American Trust & Savings banks (large cash shipments), paid depositors promptly; posted 60-day notice for savings but continued payments.
Newspaper Excerpt: A run was started today on the Jackson Trust and Savings Bank, it being thought by many of the depositors that the institution is involved by the failure of the Bank of America three days ago.
Source: newspapers

Newspaper Articles (12)

1. February 20, 1906 Santa Fe New Mexican Santa Fe., Santa Fe, NM

Article from Santa Fe New Mexican, February 20, 1906

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BANK RUN. Rumor That Institution Had Made Bad Loans Causes Present Financial Trouble. Chicago, Feb. 20.-A run was started today on the Jackson Trust and Savings Bank, it being thought by many of the depositors that the institution is involved by the failure of the Bank of America three days ago. It is known that the institution is the loser through loans to F. C. Creelman, whose loans from the bank of America were the immediate cause of the closing of that concern. The Jackson Trust and Savings Bank, according to recent reports of its liabilities, held savings deposits to the amount of $160,000 and commercial deposits to amount of $750,000.

2. February 20, 1906 Lewiston Evening Teller Lewiston, ID

Article from Lewiston Evening Teller, February 20, 1906

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FEAR ANOTHER BANK INVOLVED Rush Made Today by Depositors Jackson Savings & Trust Co. Chicago, Feb. 20.-There is fear that the Jackson Trust & Savings Bank is involved in the failure of the Bank of America, caused by a run on the former institution today. The bank officials, however, say they will meet all demands.

3. February 20, 1906 The Spokane Press Spokane, WA

Article from The Spokane Press, February 20, 1906

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RUN BEGAN ON TRUST COMPANY (Scripps News Association) CHICAGO, Feb. 20.-A run on the Jackson Trust & Savings bank began today as a result of its mention in connection with the failure of the Bank of America and the announcement that the state had begun to scrutinize its securities.

4. February 21, 1906 The Montgomery Advertiser Montgomery, AL

Article from The Montgomery Advertiser, February 21, 1906

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WANT THEIR MONEY DEPOSITORS START RUN ON CHICAGO BANK. Despite Promise to Keep Open Until 5 o'clock, Notice is Posted Invoking the Sixty-Day Notification Clause. Chicago, III., Feb. 20.-A run was started today on the Jackson Trust and Savings Bank, it being thought by many of the depositors that the institution is involved by the failure of the Bank of America three days ago. At the hour set for the opening of the bank, 300 depositors were in waiting, and as soon as the doors were opened they commenced to withdraw their funds. It is not known that the institution is a loser through loans to F. c. Creelman, whose loans from the Bank of America were the immediate cause for the closing of that concern. The amount of money loaned to Creelman by the Jackson Trust and Savings Bank is said by its officers to $25,000, but reports circulated, which alarmed depositors, put the amount at several times $25,000. W. H. Eagan, President of the Jackson Trust and Savings Bank, said today: "We have loaned on collateral security $25,000 to F. C. Creelman, and we believe the loan is good. Even if it is not, we cannot be injured by any run. We have ample funds and we can obtain all the outside assistance we wish, but it is not necessary for us to ask it." The bank yesterday, in an effort to cover possible losses through the Creelman loan, took over the business of the Illinois Hardwood Lumber company. a corporation in which Creelman is intereated, and attempted to sell some of the assets at a sacrifice. It was enjoined from proceeding in this work by the federal court. The Jackson Trust and Savings Bank, according to a recent report of its resources and liabilities, had savings amounting to $750,000. Its capital stock is $250,000. and a surplus fund of $50,000 was reported with undivided profits of $32,000. Among its resources were $900,000 approximately, in loans and discounts. and $284,000 in stocks and bonds. The officers are W. H. Egan, president: David Decker and B. F. Demuth. vice-presidents, and William M. Lawton, cashier. It has been clearing through the Continental bank. Judge Landis, in the federal court today appointed John J. Knickerbocker receiver for the estate of F. C. Creelman requiring bonds of $5,000. Mr. Knickbocker was also appointed receiver of the Aronson Lumber Company a corporation in which Mr. Creelman is heavily interested. The bonds in this case were fixed at $10.000. Despite the statement by the bank officers the payments to savings depositors would be made until 5 o'clock in the afternoon. a notice was posted much before that time, saying that no more withdrawals would be permitted until after the notice of sixty days, which the bank has a right to demand, has expired. Cashier Lawton said that the notice was posted not because the depositors could not be paid, but because depositors were stampeded and would only draw out their money to put it in another bank. Commercial accounts were paid out as rapidly as requested. By afternoon It was estimated by the officers of the bank that $150,000 of commercial and savings accounts had been withdrawn.

5. February 21, 1906 Bismarck Daily Tribune Bismarck, ND

Article from Bismarck Daily Tribune, February 21, 1906

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RESULT OF RECENT FAILURE. Run Started on Jaokson Trust and Savings Bank of Chicago. Chicago, Feb. 21-A run was start. ed during the day on the Jackson Trust and Savings bank, it being thought by many of the depositors that the institution is involved by the failure of the Bank of America three days ago. At the hour set for the opening of the bank 300 depositors were in wait. ing and as soon as the doors were opened they began to withdraw their funds. It is known that the institution is a loser through loans to F. C. Creelman, whose loans from the Bank of America were the immediate cause of the closing of that concern. The amount of money loaned to Creelman by the Jackson Trust and Savings bank is said by its officers to be $25, 000, but reports circulated which alarmed depositors put the amount at several times $25,000. TO ENTERTAIN LONGWORTHS. Havana City Authorities Arranging Programme,

6. February 21, 1906 The Times Dispatch Richmond, VA

Article from The Times Dispatch, February 21, 1906

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RUN ON SAVINGS BANK. Jackson Trust and Savings Bank Has to Pay Out $150,000. (By Associated Press.) CHICAGO, February 20.-A run was started to-day on the Jackson Trust and Savings Bank, It is thought by many of the depositors that the Institution is involved by the failure of the Bank of America. three days ago. At the hour set for the opening of the bank. 300 depositors were in walting and as soon as the doors were opened they commenced to withdraw their funds. It is known that the Institution is a loser through loans to F. C. Creelman, whose loans from the Bank of America were the immediate cause of the closing of that concern. The amount of money loaned to CreeIman by the Jackson Trust and Savings Bank, Is said, by its officers, to be $25,000. The bank gave the usual sixty-day notice to the saving depositors. At the close of the day it was said $150,000 had been withdrawn. Officers of other banks who called at the Jackson Bank. declared there was no doubt but that the institution was in good standing and could withstand the run.

7. February 22, 1906 Durango Semi-Weekly Herald Durango, CO

Article from Durango Semi-Weekly Herald, February 22, 1906

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up the Idaho people that they make an attack upon the penitendary. BOISE. Feb. 20.-Attorneys from arrived here today after interests of Moyer Denver the and to Hay- look wood and were permitted to have a long interview with the prisoners. The confession of Orchard implicating Moyer. Haywood and Pettibone in the is murder of Governor Steunenberg to be very explicit. Orchard was to do the trick and on Christmas home with and watched governor's he heart said selected went Steunenberg murder night Yuletide. he to in with says the his his family celebrating the and fearing that a charge of buckshot the with which he intended to do bloody work would injure or kill the members of the family, he withdrew to think up a better plan to effect the death of the former governor and to wreak vengeance on him for the troubles. part he played in the Couer de Alene CHICAGO Feb. 20.-The Jackson Trust & Savings bank was subject and to a run today. Three hundred men women are now in line waiting to withdraw their funds. The bank's deposits are less than a million and it promises to pay in full. The run on the bank was the result of a report that the state bank examiner had begun an investigation of that the institution. Officials announced $90.the bank would not close. About 000 had been paid out by noon. VICTORIA, B. C., Feb. 20.-Mail advices report that 450 houses in Tokio were destroyed by fire Jan. this 31. DENVER Feb. 20.-Early morning the Inland Inn. corner of and Stout streets, caught and nearly seventy Eighteenth fire guests, had narrow the majority of them women. escapes from suffocation. Most of them owe their lives to the alertness of Edwin Moses, Thom McGuire and Henry Barth, who carried as many of the women to places of safety. Head Porter Robinson was badly burned. There were some thrilling rescues but no fatalities. WASHINGTON Feb. 20.-The house committee on interstate commerce has agreed upon a resolution intended to `secure the investigation of the railroads violating the inter state commerce law and bringing them to terms. WASHINGTON Feb. 20.-Another blow was aimed at the railways today by the house committee on interstate and foreign commerce reporting out resolutions instructing the insterstate commerce commission to make an examination into the subject of railroad discrimination and monopolies in coal and oil. It is a substitute for the Tillman resolution. The committee amended the resolution by substitut ing the word oil for the words other products besides coal. WASHINGTON Feb. 20 federal supreme court today granted Sen- of ator Patterson of Colorado a writ his error in the case resulting from printing matter held to reflect on the he Colorado supreme court, for which be was fined $1,000. The case will reviewed. VIENNA, Feb. 20.-The Hungarians quiet today. Ten royal comhave been remain missioners districts dispatched in case to take charge of the of trouble. LINCOLN Neb., Feb. 20.-General to has accepted an the commencement Miles make invitatin day June. address at Nebraska university in SILVERTON Feb. 20.-The regular passenger train due in Silverton last night at 7:30. and which was on time the till it ran into a snowslide at snowsheds two miles below town, did not reach its destination till 3:30 this the The slide was near and many of morning. snowsheds, The the regular passengers walked into town. mixed train coming in this morning had no difficulty or delay. TEMPLE Texas, Feb. 20.-The Temple National bank went into liguidation today. The president of states that the or institution, ex-Lieutenant the Govern- First bank of Temple. and pay the liabilities and National in all full. obligations Pendleton, The dollars each will depositors resources assume are about a half-million WASHINGTON, Feb. 20.-Representative Bourke Cockran, who is said is engaged to Mrs. Jack Gardner of Boston, declined today to eith er confirm or deny the report. TUNNEL HILL Pa., Feb. 20.-Mrs. and one Mary Grogan and three children, Patperson

8. February 22, 1906 The Cairo Bulletin Cairo, IL

Article from The Cairo Bulletin, February 22, 1906

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RUN ON THE BANK STOPPED AT LAST JACKSON TRUST AND SAVINGS BANK WILL SQUEEZE OUT OF TROUBLE. JURY HURRIES CRIST Of Petty Cases in Preparation to Take Up Charges Against F. E. Creel. man and Other Officera. Chicago, Feb. 21.-At a meeting of the directors of the Jackson Trust and Savings bank today, President William N. Egan resigned. Joy Morton, brother of Paul Morton, former secretary of the navy, and one of the directors presided at the meeting, which was at times stormy. The run on the bank is about over and it was announced from the direc tors meeting that the institution expeets to pull through their trcuble. The Creelmans, father and son. whose financial adventures are behind the double bank sensation, had the coils tightened about their careers in the bankruptcy court of Judge K. M. Landis Tuesday. Judge Landis appointed John J. Knickerbocker receiver for F. M.

9. February 22, 1906 The Sun New York, NY

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JACKSON TRUST CO. NOT TO QUIT. Directors Pledged to Pay Depositors -President Resigns. CHICAGO, Feb 21.-Personally pledging themselves to see that every depositor in the Jackson Trust and Savings Bank was paid dollar for dollar. the directors in that institution to-night put an end to reports that the instituton would be unable to survive the two days run which has been made upon it. The run was started by the statement that the bank held much of the paper of Frank M Creelman. whose financial trouble caused the crash of the Bank of America. The directors held a meeting to-day, after which a statement was given out that William H Eagan, president of the bank, had resigned. No reason was given, but according to Joy Morton, a director in the bank. and a brother of Paul Morton. former Secretary of the Navy, it was called for by the directors. owing to "errors in judgment," on the part of Mr. Eagan. It is understood that Mr. Eagan's errors in judgment" were accepting Creelman and other paper which is now alleged to be nearly worthless.

10. February 23, 1906 The Topeka State Journal Topeka, KS

Article from The Topeka State Journal, February 23, 1906

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EAGAN OUT OF IT. Kandas Man No Longer Connected With Jackson Savings. Bank. Chicago, Feb. 23.-W. H. Eagan, the former Hutchinson, Kan., man, is no longer president of the Jackson Trust and Savings bank. The bank is to be reorganized and he will not be in the new institution. Mr. Eagan submitted his resignation to the directors and it was accepted. In accepting the resignation of President Eagan the directors declared that the action was taken for the best interest of the bank. Mr. Eagan stated that he retired voluntarily. After the meeting of the bank directors a statement was made that notes, assets and securities held by the bank which were considered of doubtful value had been withdrawn and converted into cash. To do this, it was reported on good authority last night, the directors were compelled to raise $800,000. This amount was turned into the assets of the institution. The directors, who met in the office of Joy Morton in the Railway Exchange building, also issued the following notice: At a meeting of the directors of the Jackson Trust and Savings bank held this day in the office of Joy Morton careful scrutiny was made of the notes, bills receivable and all other assets held by the bank and all such as were considered in the slightest degree doubtful were withdrawn and cash substituted therefor without one cent of loss to the bank. Reports concerning the condition of the bank have been exaggerated and unwarranted; there has been a slight run, but all the depositors have been paid promptly on demand. The doors of the bank were kept open a half hour after the regular closing time this afternoon for the purpose of accommodating such depositors as were desirous of withdrawing their money today. The bank will be open for business as usual on Friday at 10 o'clock and will continue in the banking business. On account of the crowd in the bank

11. February 23, 1906 The Worthington Advance Worthington, MN

Article from The Worthington Advance, February 23, 1906

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RUN ON A CHICAGO BANK JACKSON TRUST SUFFERS FROM RECENT FAILURE. Cash Brought from Other Institutions Saves the Day-Payments Are Made Promptly. Chicago, Feb. 21.-Heavy withdrawals from the Jackson Trust and Savings bank, brought about by the failure of the Bank of America and the Creelman interests, began Tuesday. Depositors began demanding their money as soon as the doors of the bank opened. Several police officers formed the crowd up in a line extending through the main corridor of the premises. By noon the crowd numbered 400 depositors, and by night the line had grown considerably. Anticipating a run, the bank officials made hasty calls upon other financial institutions for aid. Messengers were hurriedly dispatched to the Continental National and the American Trust and Savings banks, where the Jackson Trust has been carrying quite extensive accounts. The messengers were taken into the offices of the presidents of the respective banks and large bundles of bills were carried from the vaults to the offices. There they were wrapped in newspapers and the messengers returned to the Jackson Trust. In this manner more than $600,000 was taken from the two banks through La Salle street and the crowds in Jackson boulevard. One package from the Continental, it is said, contained $500,000. Fresh arrivals poured into the main corridors of the Railway Exchange building during the forenoon, and there lined themselves in two rows. More than $100,000 was paid out in the first hour. Joy Morton, one of the directors of the bank, telephoned from New York. When informed of the conditions he said he would return at once. The bank closed its commercial department at three p. m., but the savings department was kept open until five o'clock in the evening. Cashier Lawton said: "We are not going to take shelter in the 60-day savingsbank rule. All depositors will be paid as rapidly as possible." The street in front of the Railway Exchange building, in which the bank is located, was filled by an excited crowd. Fist fights were frequent and several persons were injured. Numerous bankers from various parts of the city visited the bank during the morning and sat. in conference with the officer of the Jackson Trust. Investigation into the affairs of the Jackson Trust and Savings bank on account of the failure of the Bank of America was rumored Tuesday. It was reported that State Bank Examiner C. C. Jones had entered the bank's offices in the Railway Exchange building and demanded the books. It is known the bank will be loser through having loaned money to F. E. Creelman.

12. February 28, 1906 The Fulton County News McConnellsburg, PA

Article from The Fulton County News, February 28, 1906

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# LATEST NEWSIN SHORT ORDER DOMESTIC To correct a report that the date for the coming reunion of United Confederate Veterans in New Orleans had been changed from April to May, Gen. Stephen D. Lee, Commander-in-Chief of the veterans, has issued an order to the effect that the dates first named, April 25, 26 and 27, will stand for the annual gathering. Treasurer R. J. Hynicka, of Hamilton County, Cincinnati, testified before the Ohio State Senate Investigating Commission that he has received about $20,000 in gratuities from various banks for the deposit of public funds. A contract was awarded the Pennsylvania Bridge Company for the erection of shops for the Atlantic Coast Line Railroad at Waycross, Ga. The National Boot and Shoe Manufacturers' Association took important action concerning matters affecting the trade. Returning to her burning apartments to get money left behind, Mrs. John Hanley, of Chicago, met her death. Louisiana has adopted quarantine regulations against Cuba and Central America, effective March 15. Professor Montgomery, aeronaut, nearly lost his life in a flight on his aeroplane in California. Eighteen girls were injured during a panic, in which 75 fell with a platform while rehearsing their part in a human flag in the Hanover (Pa.) Opera House. The new hall of McKeesport Lodge, B. P. O. E., erected at McKeesport, Pa., at a cost of $125,000 was dedicated by the grand officers. Major A. G. Hammond, of the Third U. S. Cavalry, died at the General Hospital at the Presidio. Prof. Nott W. Flinch, teacher of English in the University of Chicago, died of tumor on the brain. Mrs. Cora Carpenter was arrested at Tiffin, O., accused of wrecking a Pennsylvania freight train. George Small, colored, has confessed that he and not Rufus Johnson, colored, murdered Miss Allinson in Moorestown, N. J., compelling Governor Stokes to reprieve Johnson until the new confession can be investigated. Hearsay evidence was given in the Patrick case that Valet Jones, the principal witness against the condemmed lawyer, had given false testimony at the trial to save himself from suspicion. Professor Stillman, of the Stevens Institute of Technology, gave a full course dinner at the Hotel Astor in which dishes of chemicals and acids were substituted for natural food. Alfred M. Bard, a nephew of Senator Bard, of California, has mysteriouly disappeared from Brussels, where he was a musical student, and it is believed that he was murdered. Gen. Charles H. Grosvenor was defeated for renomination after a service of 20 years in Congress as representative from the Eleventh Ohio district. A throng that over taxed the church attended the funeral of John A. McCall, in New York. Samuel Thomas, a pioneer pig iron manufacturer, died in Allentown, Pa. A resolution was introduced in the Iowa State Senate demanding that Governor Cummins be compelled to prove his statement that the Iowa railroads were using money to defeat the primary bill. James Dreen, the owner of a small traveling show, cut his wife's throat at Mantau, O., and then slashed his own neck. The woman is dead, but Dreen will recover. Engineer Willard and Brakeman Sheahan were killed and Fireman Rogers was injured in a head-on collision of two Iowa Central freights near Eldora, Ia. Gen, Nelson A. Miles accepted an invitation to be the orator at the annual commencement of the Nebraska State University on Thursday, June 14, next. Depositors made a run on the Jackson Trust and Savings Bank of Chicago, believing it was involved by the failure of the Bank of America. Governor Jelks appointed Samuel D. Weakley, of Birmingham, chief justice of the Supreme Court of Alabama, vice Thomas N. McClellan, dead. Travelers returning from China report that plans are being considered for the erection of a big jail in Shanghai for foreigners. The will of Mrs. Jennie T. Chase, of Swampscott, Mass., who committed suicide, was set aside by the court. President Gompers says the Federation of Labor will support the miners in whatever stand they take.