Jackson Trust & Savings Bank

Bank Information

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

Metadata

Model: gpt-5-mini
Short Digest: 1b052a2d

Response Measures

Books examined

Other: Legal action (bill filed) alleging fraudulent transfer of securities and leasehold to Railway Exchange Bank; sale to trustee in 1906 contested.

Description

Article (Feb 6, 1908) describes a prior run upon the bank and alleges fraudulent transfers and an attempted takeover/transfer of securities to re-establish confidence. The piece does not state the bank suspended or was closed or placed in receivership, only that complainants charge directors with fraud and that there had been a run. Therefore classified as run_only. Date of the run is not given in the article.

Events (1)

1. * Run

Cause: Bank Specific Adverse Info
Cause Details: Allegations of purchase/transfer of alleged worthless securities and fraud by directors undermined confidence and led to a run.
Measures: Transfer of leasehold and purported sale of securities to Railway Exchange Bank and sale to Gilbert C. Pryor (trustee) described as efforts to re-establish confidence.
Newspaper Excerpt: It is charged that the transfer of the securities was in the nature of a fictitious sale for the purpose of re-establishing confidence in the bank following a run upon it
Source: newspapers

Newspaper Articles (1)

1. February 6, 1908 The Topeka State Journal Topeka, KS

Article from The Topeka State Journal, February 6, 1908

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Article Text

CHARGE OF FRAUD. Is Lodged Against Joy Morton and Others in Chicago. Chicago, Feb. 6.-Fraud in connection with the purchase of $212,813 worth of alleged worthless securities is charged again Joy Morton, B. F. Demuth, W. F. Morrison and other directors of the Jackson Trust and Savings bank in a bill filed in the circuit court by certain dissatisfied stockholders of the bank. The court is asked to vacate a transfer of the lease hold of the bank to the Railway Exchange bank organized by Morton and others for the purpose it is charged, of taking over the securities classed as worthless and with the intention of discontinuing the Jackson Trust and Savings Bank, following a refusal by the state bank examiner to approve the securities in question. It is also asked that a sale of the securities to Gilbert C. Pryor, as trustee in 1906 be declared valid and binding. It is charged that the transfer of the securities was in the nature of a fictitious sale for the purpose of re-establishing confidence in the bank following a run upon it, and that the complainants will suffer loss by a refund of money advanced by Pryor for securities.