4608. Noel State Bank (Chicago, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
June 18, 1931
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
ee519fae

Response Measures

None

Description

Noel State Bank (Chicago) closed in mid-June 1931 and a receiver was appointed; multiple articles discuss the receivership and liquidation fees. There is no description of a depositor run prior to suspension in the provided articles, so this is classified as a suspension leading to permanent closure/receivership.

Events (2)

1. June 18, 1931 Receivership
Newspaper Excerpt
Henry S Savage, receiver for the Noel State bank, closed June 18, listed total receipts of $912,954 and disbursements of $465,657. (Statements dated Aug. 31.) Also referenced in later articles concerning liquidation expenses and legal fees for the Noel State Bank receivership and losses to depositors who lost $4,000,000 and received only small dividends.)
Source
newspapers
2. June 18, 1931 Suspension
Cause
Government Action
Cause Details
Bank closed and placed in receivership (receiver named Henry S. Savage); closure reported June 18, 1931.
Newspaper Excerpt
Henry S Savage, receiver for the Noel State bank, closed June 18, listed total receipts of $912,954 and disbursements of $465,657.
Source
newspapers

Newspaper Articles (5)

Article from Chicago Tribune, September 17, 1931

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Article Text

Receivers Reveal Conditions of Five More Closed Banks State Auditor Oscar Nelson yesterday made public the conditions of five more closed banks as disclosed by reports of receivers of the various banks. The reports constitute an accounting of the stewardship of each bank receiver and are being issued as they are compiled. George Wilson, receiver for the Commercial Trust and Savings bank, which closed May 28, listed total receipts of $464,792. He placed disbursements at $193,884, including $131,500 which he had to meet as bills payable. His itemized list of disbursements follows: Legal expenses 2,500 Clerical hire. 2,933 expense 2,246 Auditor's expense in closing bank. 975 Bills payable 181,500 Henry S Savage, receiver for the Noel State bank, closed June 18, listed total receipts of $912,954 and disbursements of $465,657. He listed total resources including $447 297 in cash on hand at $5,908,017. His itemized disbursements are as follows: Preferred claims paid $152,660 694 Receiver's salary and expenses. Clerical 7,043 1,683 Miscellaneous expense Auditor's expense in closing bank 2,370 297,068 Bills payable 4,076 Contra B2. 60 Contra B3 The Chicago Trust company, receiver for the Roosevelt Bankers State bank, closed Aug. 2, 1930, listed receipts of $151,569 and disbursements at $150,293. The company itemized reports of disbursements is as follows: Preferred claims paid $ 16,965 Receiver's salary and expenses 20,000 Leganl expenses 15,543 Clerical hire. 22,287 Miscellaneous 26,996 Auditor's in closing bank. 1,500 Bills payable paid. 47,000 George W. Reinecke, receiver for the Roseland State Savings bank. closed July 6, listed receipts of $395,296 and of $72,893. His itemized list of disbursements is as follows: Preferred claims paid 66,834 Clerical hire. 2,188 Miscellaneous expense 1,011 Auditor's expense in closing bank. 1,560 Insurance advanced 1,087 Arthur A. R. Nelson, receiver for the Twelfth Street State bank, closed June 29, listed receipts of and disbursements of $16,066. His itemized list of disbursements is as follows: Receiver's salary and expenses 256 Clerical 523 Miscellaneous expenses. 154 Audtior's closing bank..... 360 Bills payable paid. 14,792 All statements are dated Aug. 31. The statements issued yesterday with the seven released Tuesday cover 12 of the 67 closed banks in this area.


Article from The Afro-American, September 26, 1931

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Article Text

CHICAGO HIT HARD BIG PRICE BANK RECEIVERS $10,000 to $20,000 Charged as Fees to Colored Depositors. WHITES SMALLER $494 Charged when Ofay Banks Failed. CHICAGO. tigation of reports of banks closed here during the past 18 months reveals that the cost of liquidation white banks has been extremely low when compared to other banks of similar standing. Large expenditures for receiver's pay, legal expense clerk hire and are noted as the reports of colored banks are compared with white banks. Three of these banks which have comparatively white depositors, are the Binga State, Roosevelt Bankers State and the Citizens' Trust Savings Edward H. Morris, receiver for the Binga Bank, reported hand against which due bank's creditors. is expected to be paid, September Spent $85,000 The receiver's report disthat has been for legal expenses and attorney's which James Cashin, Morris' partner, received $10,000; for dstenographer and miscellaneous Receipts under the listed 157.95. total disbursements at Total receipts for the RooseveltBankers State bank disbursements, $150,293 The Trust this Among the receiver's and expense account of legal $15,543; clerical hire and expenses which just about gobbled that the took Zuehls, white was appointed Savings receipts were and his this case the salary expenses flat expenses, clerical penses, Whites Spent $3,800 Reports on twelve located in are available the Diversey Trust Savings Bank with ceipts and the ments, as and penses, $465 legal expenses torney's clerk stenographer hire, and miscellanexpenses, the report of the Noel State Bank be the Citizens' and Savings The Noel receiver has in ceipts to and bursed $465,657 The ary $694; There no legal expenses listed No Pay for Morris In the the Binga bank der that he the receiver not to report salary for himself. Sometime reported that he allowed $5,000. There been complaint against the high cost of receiverships which eat up the monshow that there element in the city struck as receiverships people stand ter in and other in up the the tangled affairs of the banks.


Article from Chicago Tribune, October 18, 1931

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Article Text

N. W. FEDERATION TO HELP RELIEVE DEPOSITORS' WOE to Aid Bank Receivers. Plans for the protection of deposithe liquidation closed north west side banks will discussed at meeting to be held sometime this week of bank of the of Improvement clubs and the executive committee the United Depositors' The was ap. pointed last week, with Richard Wuerst in the tion in an effort to obtain for the of depositors whose funds tied the greatest possible bene. fit the receivership of the closed Others on Committee. members of the committee are W. Holmes, Boyle, Fouchard, John W. Alex Koehn, Edward president of the Mme. and B. of the expects to be able to cital thing the depositors closed banks, said Mr. Wuerst, the those funds are tied and second by legislation prevent occurrences in the by any Means of close all keeping in contact closed be discussed at the Mr. Wuerst indicated. In this way hoped that the will sing committee be able to cooperate with the receivers bringing about liquidations where possible of the closed bank to insure depositors the maximum return on their funds. Names Banks to Be Aided. The expects to where possible in the now under of several closed banks, including the National bank, the Albany Park Na. tional and bank, which is Noel State bank, Immel State and Elston State bank. Mr. Wuerst sald.


Article from Waukegan News-Sun, July 28, 1932

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Article Text

FILES The receiver of the Noel State bank Chicago, which failed sometime today asked judgment circuit court against Chas. Zahnle, Highland Park, note for $35,000. KEWANEE COACH DIES MACOMB, Wilson, school teacher and assistant football coach, Francis hospital here Wednesday days illness with lockjaw which developed minor injury his leg. His mother lives at Canton


Article from Chicago Tribune, February 2, 1933

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Article Text

Depositors in Noel Lesson in Fees of depositors lost their with the closing of the Noel State bank in June, terday afternoon trooped the fices of the law firm Crowe, Gorman Savage, at North La Salle street, where Master in Chancery George E Gorman was scheduled to conduct hearing into charges that $105 000 attorneys' requested by firm Judah, Reichmann, Trum& Cox are grossly The law firm based its claim for showing that 6,519 hours of legal work had been rendered in with the receivership period of 16 months. It had already collected Attorney Thaddeus R. Diadul, representing the depositors, who lost $4,000,000 and received only per cent dividend. filed objections before Judge Joseph Burke which referred to Master Gorman. Master Gorman Reads. The hearing was scheduled to start at m. and the depositors, have already attended five such ings, sat apathetically in seats along the Minutes passed. Master Gorman read a law book peacefully A stenographer whittled pencils. The smoked cigarets. At 4:12 p. m. Attorney Diadul announced that witnesses he had subpoenaed had failed to appear and he asked continuance. Master Gorman. who is paid by the hour in addition to receiving 15 cents for hundred words taken in testimony, said, "O, wait while." depositors stared into space The stenographer announced that he got paid for his time whether he worked not. At 4:35 p. witness appeared and the hearing was started. Attorney Charles E. Carpenter. questioned by Mr. Diadul, asked to give his opinion regarding the sonableness of the $105,000 fee. Fees for 'Skilled think a skilled trial lawyer should receive from $125 to $150 day for each court he said. clerk ought to get $15 to $20 day and an attorney with not much experience shouldn't get over $35 per day. For office work alone good lawyer should charge about $100 day." Upon this basis, which, he pointed out, an one argued the $105,000 fee was far too large. Attorney Carpenter was lengthy crossAttorney Randolph Thornton, the bank receiver's law firm. call asked. Eight returned the