Lincoln Trust & Savings Bank

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: October 16, 1931
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: 91ee6928

Response Measures

None

Description

The article (Chicago Tribune, 1931-10-16) discusses the closed Lincoln Trust & Savings Bank, payments being made to depositors, and a receiver (George W. Blomgren) handling distributions. No contemporaneous run is described; the bank is closed and in receivership, so classified as a suspension leading to closure/receivership. Cause not explicitly stated; insolvency/closure implied by receivership and suits against stockholders, so coded as bank-specific adverse information.

Events (2)

1. October 16, 1931 Receivership

Newspaper Excerpt: Receiver George W Blomgren said there will probably be another payment before Christmas. The checks are now being made out and dated Oct. 26 ... Preferred claims amounting to $125,000 will be paid at the same time. (Chicago Tribune, 1931-10-16).
Source: newspapers

2. * Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank already closed and in receivership; suits filed against stockholders and payments to depositors indicate insolvency/closure.
Newspaper Excerpt: 12,000 depositors of the closed Lincoln Trust and Savings bank, 3959 Lincoln avenue, will receive $600,000 before Nov.
Source: newspapers

Newspaper Articles (1)

1. October 16, 1931 Chicago Tribune Chicago, IL

Article from Chicago Tribune, October 16, 1931

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Article Text

SUITS ARE FILED AGAINST STOCKS OF CLOSED BANKS Owners Liable to 100% of Their Holdings. Depositors in closed banks were Informed yesterday through the state auditor's office that suits have been filed against the stockholders of each closed bank, seeking judgment in an amount equal to the holdings of each stock owner. This is under the law which makes bank stockholders liable to the depositors up to 100 per cent of the par value of their stock holdings. It was explained, however, that neither the state auditor's office nor a receiver appointed by the auditor has anything to do with the collection of this liability. The action must be begun by one of bank's creditors acting for all of them. courts usually appoint the same receiver to act on stockholders' liability as has been named as recelver by the auditor, said an as sistant to State Auditor Oscar Nelson. In only one recent instance has different receiver been appointed." Some Offer to Pay. A few stockholders have offered the amounts of their liabilities, it was said. One case involved that of the owner of $17,500 of stock in west side bank. He put that amount in escrow, but it has not been accepted pending the completion of the audit. For the chain of closed Bain banks approximately 25 per cent of the stock was held by a holding company, according to the auditor's office. When the stock is in the name of the corporation the corporation is liable only in the amount of its capital, it was explained. If the total assets of the holding company consist only of stock in closed bank, nothing may be collected because if one worthless the other is also worthless, it was explained. Attach Stockholders' Deposits. Where stockholders have deposits in closed bank the receiver is attaching the deposits as security under the liability law, the auditor's office said. No dividends will be paid to the pending final payments to all others, it was stated. Many wealthy stockholders have signified their willingness to make payments called upon to do so, the receivers have reported. In many of the closed banks, according to the auditor's office, there will be some money left to prorate among the stock owners after the depositors are paid in full. In some cases the suits are being filed against those who owned stock as far back as five years ago. Under the law, it was explained. they are liable, even though they have sold their stock, If the losses that resulted in the banks' closing were incurred during their time of ownership. Closed Bank to Pay $600,000. Auditor Nelson announced yesterday that 12,000 depositors of the closed Lincoln Trust and Savings bank, 3959 Lincoln avenue, will receive $600,000 before Nov. This is 20 per cent of the deposit liability. Receiver George W Blomgren said there will probably be another payment before Christmas. The checks are now being made out and dated Oct. 26 and will be put in the mail as soon after that date as certain legal requirements are fulfilled, it was announced. Preferred claims amounting to $125,000 will be paid at the same time.