d4959ffcFull suspension, Books examined
Other: State authorities took possession; receiver later appointed (by 1932).
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Northwest Chicago Bank Closes Doors Chicago, June 10.-(AP)-The Northwestern Trust and Savings bank, one of the largest on the northwest side, failed to open its doors Wednesday morning as the result of heavy withdrawals the last two days. Deposits as of March 25 were $14,600,000. A neighboring northwest side bank and one in the south side negro district also voluntarily closed - the result of heavy withdrawals.
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CHICAGO United more Chicago neighborhood banks closed today, bringing the total for the week They were the Northwestern Trust and Savings, the Second Northwestern State, both on waukee avenue, and the Lincoln State in the black belt South State street. Their capitalization was, respectively, $350,and $400,000. The closings today were laid to heavy withdrawals coincident with the unrest which developed over the week-end with three big and the other closings. The closings tied up approximately in deposits. The Northwestern Trust and Savings had Second North$4,510,000, and the
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BID AND ASKED The following quotations in no STOCKS NEW YORK BONDS Last BONDS 145 deb 68 46 49 NEW YORK CURB New York New York by New sale due the and late Jobbing the New and cents New the On the Big CARROTS The Pier per gus in the the of New RAWBERRIES BUTTER EGGS CHEESE Pacific DRIED POULTRY POTATOES AND CABBAGE fair ZINC PRICES FIRMER 3.50 of box for 3.20 reports further it be to reduce WEATHER RETARDS BUILDING able beginning the building in this and not much headway was ing the market special 93 extra tubs Add per carton EGGS weak fancy Grade mixed mixed whit 160 CHEESE Limburser OLD Stock GRAIN MARKET Abstract 1.60 2.25 were Gen No. 1.60 26% 26% dry white 1st Fair Fair Bflo Natl Corp TRACK RECEIPTS 21 receipts hours as Tuesday do pfd Corp 18 Ford Inc FLOUR FEED PRICES 27 up Arbitrage 10 29 FLOUR per do Fair Ning Pow Standard Standard Bakers brands warrants warrants and Cream Kellogg 80c do 100 preference 1.50 12 5.50 Mortgage 1.20 20 FEED Standard East Ken Liberty Bank Cottonseed meal 415 64 meal INVESTMENT AND CORPORATIONS feed City Inv 40c YORK GRAIN NEW Share 40c BARLEY Easy young WHEAT Spot Old 89% UNLISTED and POULTRY Founders 12 Spot yellow Fuel 25 Pratt per Regis com and Bflo-Erie 108 fair Homegrown Laund 50 ASPARAGUS98 Spitzenberg Pow 106 2.40 2.25 97 Old 100 95 THREE MORE BANKS 50 BEETS per CLOSED IN CHICAGO fair Total for Week Is Brought to Twenty-Two. Md CANTALOUPES fair more Chicago Standards closed bringing the total for the 22. were the Trust & Savings the Second Milwaukee avenue and COMMODITIES the Lincoln on South CAULIFLOWER was spectively and CELERY The today laid to heavy withdrawals with the unrest over the The closings tied up approximately deposits. The Northwestern Trust & Savings had 4.00 000 the $4,510.$2.00 000 and the Lincoln $2,410,000 CUCUMBERS slow COPPER PRICES UNCHANGED NEW YORK June 10 Buying 1.00 of copper in the domestic market and abroad with fair demand unchanged Gas for and 8.525 for OXport Trade that and not bought far ahead of their Blue Ridge that fair debut that domestic probably will lag statistics for May appear later Cit 200 80 in the week So 114 34% HUCKLEBERRIES fair deBond Humble Oil SALES AND EARNINGS Imp Can fair CENTRAL AIRPORT INC. Internat Pet Central Tuesday Ch Airport rebefore of for the fiscal year ended Pow April 30, 052 for the year not include a full oper MUSHROOMS St FLORSHEIM SHOE The Florsheim net the period ended April 30 to equal to 6 75 cents share of class common new Gas war after effect the etirement of fair box, Valencias shares of Un Li&Pow A 18% 18% 18% and the proposed cancellation of 962 Cal 4.50 shares purchased for retirement and OFFER EMPLOYES STOCK providing for dividends on the remain- 5.50 NEW YORK June fair ing preferred. This with net bag of of $1,333,638 $2.52 class A share bag. proved whereby salaried in like period year ago. ployes will be the opportunity of Texas crate AMERICAN COMMONWEALTH the capital stock PARSNIPS at $25 share on monthly payment fair for dividends, surplus reserves before deductions basis. Subscriptions will be limited to crate for federal of the Com- one-third of annual salaries. with the Power corporation for exception who will fair be permitted to buy up to 1000 shares hamper was of $1,245,292 Md. hamper over 1929. of the each. hamper 2.00 Bank Building, equipped taled Dec. 31, fair box Easter compared with $184,421,008 a year preWARNS AGAINST RUMORS Easter Beurre 1.35 viously. NEW YORK June PEPPERSof managers the York Cotton crate, fancy TRUAX-TRAER has issued Truax-Traer company and sub- Over-the-Counter. ing members "against the or report net .25 dissemination of any rumors that could $347,507 for the year ended April 30 possibly be as reflecting un- bag with for the favorably the standing of 3.00 16 months ended April 30. 1930 bag any exchange house or other institured 1.90 BLAST FURNACE BLOWN OUT bag 1.75 NEW YORK June 10 IIIIPLUMS nois blown INCORPORATIONS its Chicago giving this U. corpora- From Albany Bureau tion three furnaces at the NEWS PINEAPPLES fair South Chicago, three at Gary and one at Joliet out of Inland was incorporated RADISHES and 100 Steel has three Wisconsin Steel one and shares par STRAWBERRIES- fair de- Offices: Toronto Syracuse Rochester Sheet & Tube one. making Mary Sternberg and 12 active in Chicago district out of 28. Charlotte S. Dautch, Buffalo. $3.00 Mo., Aromas 3.75
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THREE MORE BANKS CLOSED IN CHICAGO Total for Week Is Brought to Twenty-Two. CHICAGO June 10 U.P closed bringing the total for the 22. They the Northwestern Trust & Savings the Second Northwestern State, both on Milwaukee avenue and the Lincoln State South State street respectively and laid to heavy withdrawals with the unrest over the The closings tied up The Northwestern Trust Savings had 000: the 000 and the
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Bank Założony Przez Smulskiego Przeszto Dwadzieścia Pięć Lat Temu Oraz 20 Innych Zostato Zamkniętych Dyrekcja Oświadcza, Le Bank Będzie Wypłacalny 90 Dniach. Tłumy Przed Bankami Nie Mogą Wyciągać Pieniędzy. (Depesza Własna) rano zamknał swe podwoje "The North Western Trust and Savings Bank", który został założony niemal éwieré wieku temu przez Jana F. Smulskiego. Tysiące depozytarjuszów stoi dziś przed bankiem, domagając się wypłaty deponowanych sum, lecz bez skutku, gdyż bank jest W rękach urzędników stanowych wszelka wypłata depozytów Zamknięcie banku spowodowane było przez nagly "run" na bank dniu wezorajszym. Gdy dziś run trwał W dalszym ciągu władze stanowe objely bank posiadanie wstrzymały wypłaty. Dyrekcya Banku wydała oświadczenie, ze jest pewna, ze wszelkie należytości będą wypłacone W zupełności W przeciągu 90 dni kiedy spodziewają się, iz kwidacya będzie dokonana. Chodzą pogłoski, iż śladem banku Northwestern pójdą inne banki chicagoskie. Bank North Western byt pierwszym bankiem polskim W Ameryce i należał do W ostatnich dwóch dniach zamknięto 20 banków Chicago. A dzis oprócz Banku Northwestern zytow do ostatniego dolara. gdyby wymagala tego konieczność.Ale zaden Bank ,bez względu na to jak wielki bogaty, nie może jednym dniu czy tygodniu wy dac wszystkich depozytów, jesli chce normalnie sie zystować, wha tow znajdowała sie W kasie banku. Reszte zdobywa sie sprzedazy bondów, zwrotu pożyczek innych wpływów, które przychodzą normalnie, biegiem czasu, lecz nie jednym dniu lub godzinie. dlatego wyjątkowej sy tuacji, jak obecna, prawo pozwala ograniczenie natychmiasto wej wyplaty depozytów na pewien okreslony czas. To wlasnie czyni sie obecnie W naszym Banku. Tymczasem, aby ulzyc rodzinom wogóle osobom, pozwalamy na wyciąganie pewnej sumy oszczedności, po trzebnej dla normalnego życia domowego wedlug uznania urzędnikew bankowych. Zatem dla Waszego własnego dobra prosimy Was wsrystkich cierpiiwość wspólprace dzisiaj." Następujące banki zostaly zaFirst North Western State Bank, Second North Western Bank Inland State Bank. wszystkie trzy tak zwane Smulskiego banki. Cheltenham Trust Company, Industrial State Bank, Sheridan State Bank, South Side Trust, Washington Park National, Armitage State, Auburn Park Trust Company, Breinard State Bank, Bryn Mawr Bank, Chatham State Bank, Chicago Loan Bank, Elston State Bank, Rich State Bank, Stone Illinois State Bank, West Engleton State Bank, West Highland State Bank, West Lane State Bank. Jest wiadomem, 12 W Banku Northwestern mialy depozyty najwieksze polskie organizacye, jak N. Zwiazek Polek, Zjednoczenie inne. Wszystkie pieniadze Konsulatu Polskiego Chicago lokowane byly W banku Smulskiego. Dziennik dla Wszystkich rozmowie Henclem, skarbnikiem Związku N. zyt ZNP. W Northwestern Banku innych zamknietych nie prze wyższał sumy $25,000 ze to sume spodziewają sie odebrać W calości po Sa pogłoski, iz Zjedn. P. R. K. zdołało wyciagnac większą czesc swoich depozytów przed zamknię ciem Banku North Western, tak, dzie sie bez straty. Do tego czasu Dziennik nie mógł sie skomunikować zarządem Związku Podowiedzieć się 0 stanie ich depozytów W zamkniętych bankach. Dzis calem Chicago panuje chaos thumy ludzi przed kazdym bankiem, nie tylko tak zwanym Loup, ale mieściu. Wszedzie domagaja sie wyplaty depozytów. Nawet kolosalny First National Bank, wezoraj uratował tak zwane man Banks" przechodzi
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DIARY THROWS 5 MORE BANKS NEW LIGHT ON SHUT DOORS IN DEATH OF GIRL CHICAGO AREA Held to Support Faithful Murder Theory; Examiner Says She Was Drowned Mineola, June 10-(P)-A diary by Starr Faithful, whose body washed ashore at Long Beach Monday, has been found DistrictAttorney Elvin E. Edwards announced tonight He declined to reveal Its contents. but said they were "very important and strengthened his theory that the 25-year-old beauty been slain. Edwards declined to say where the diary was found. but said it not been turned over to police the family of the girl. having been obtained by Lieut Theodore Magee of the missing persons bureau of the Nassau police Family Questioned On returning from Boston tonight, the spent several hours questioning members of the Faithful family, Mr. and Mrs. Stanley E. Faithful and particularly another daughter, Sylvia Tucker Faithful. At late hour tonight they were permitted to turn to their home in New York The attorney also an, nounced that Martin W. Littleton. assistant district-attorney and Detective Joseph Culkin had obtained tion from two Coast Guardsmen He declined to disclose the nature of the information. Edward's medical advisor How ever. announced that the girl died of drowning and that she was neither drunk nor drugged when Edwards took extradition papers and confession blanks to Boston with him, but when he left again for New York the blanks were still blank and his medical advisor's report seemed to indicate that the whole theory on which he had been working was faulty While Edwards in Boston was questioning Francis Peabody Ham lin. steamship company man who had known Miss Faithfull and who volunteered to tell what he knew of her recent movements Stanley gave an interview to reporters here. Denies Naming Bostonians He acknowledged having given police information that turned their attention to Boston, but denied he had mentioned any politician or physician in connection with the During the Interview the names of several Bostonians were menFaithfull said he did not know and Mrs. Faithfull's first husband, Frank Wyman. A reporter remarked that the City Department of Hospitals confirmed the report that Miss Faithfull had been taken to the psychopathic ward of Bellevue Hospital 1930. the records showing that she was detained one day for Mr. Faithfull late today. after sttending his daughter's funeral services, explained he had denied statement that Start had spent night in Bellevue Hospital in the hope of preserving her reputation. He added that he mixed four drinks for Starr and young woman friend in the Faithfull apart ment on March 30 and then left The next afterthe apartment. noon Starr was in Bellevue and he and Mrs Faithfull went there take her home He later learned from the other whom he declined young name, that Starr drank all four cocktails and was later introduced by her friend to a Joseph Collins Mr. Faithful added he had sought Collins in vain ever since. He said the drinks were diluted with water the strength of about three or dinary Dr. Means S. Gregory head of the psycropathic department Bellevue, said today that Miss Faithful was in the hospital overnight March 30-21 1930 She had been found in a hotel in West 60th Street in the presence of man who identified himself an ambu lance surgeon as her husband Records showed her listed at the hospital as Marie Collins. later corrected to Starr Faithfull. Dr. Gregory said "Helen Faithfull her mother her father Stanley E. Faithfull, came in the next morning an in sisted they take her She discharged in the custody of her parents. The diagnosis was "alcoholism acute," and under the notation was written tusions face, jaw and upper lip. Miss Faithfull made statement in which she said was drink gin as far as know This first time have drunk any thing in six months and had nothing until yesterday I don know had. don't how many remember suppose someone knocked me around bit. Large Institutions Provide Ample Funds; Uneasiness Reported on Decline Chicago, June -(Special Dispatch)- Five more outlying banks today closed their doors, yielding wave of uneasiness among depositors which has swept the city in the last few days. Since Monday 24 banks either have been closed by the state auditor, or have merged with other institutions. There were six closings or mergers Monday 13 yester day and six today. The banks closed today are: Northwestern Trust and Savings Bank, Second Northwestern State Bank (affiliated with the above). Italian Trust & Savings Bank, Cragin State Bank and Lincoln State Bank The suspension of the two Northwestern banks was an aftermath of the absorption of the ForemanState Banks Monday by the First National Bank These outlying institutions had been affiliated with the Foreman-State Banks and were "orphaned" when the big downtown institution was taken over Many other smaller banks in various parts of the city and suburbs were withstanding heavy runs, bolstered up by cash from downtown banks of larger capitalization which so far have not felt the pinch of lack of public confidence. The larger banks have sent truckload after truckload of money to their smaller contemporarie and it was said in various financial quarters that they would continue so far as is consistent with good banking principles. "We are supporting the outlying banks to the fullest extent possible, said Arthur Reynolds chairman of the Continental Illinois Bank & Trust Company the larg. est financial institution in the ity "We have sent out millions and will continue to do so until public confidence is restored. It is curious thing that some of the strongest neighborhood banks in Chicago have been subjected to the heaviest withdrawals But conditions today seem to be improving and there are signs that uneasiness is lessening Both today and Tuesday It appeared that several of the banks had closed their doors, following application to the state auditor, rather to conserve their assets than because they were in an unsound Loans on "frozen curity. good eventually but not immediately turnable into cash, reported to be the general
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Oświadczenie Prezesa Związku, J. Romaszkiewicza, W Sprawie Banku Northwestern sprawie banku North Western Prezes Zw. Chicago CO następuje: bankiem North Western Trust and "Pożałowania godny incydent Savings uwazam za wine samych depozytarjuszy, których histeryczny "run" na bank zagrozil nie tylko dobremu imieniu niezachwianej dgtychczas solidności tej jednej najpierwszych najwspanialszych polskich instytucyj Ameryce, ale zagroził przedewszystklem własnym interesom depozytarjuszy, którzy przez takie masowe nagle wyciąganie ich oszczędności mogli zachwiac egzystencją banku przez to samo mogli narazic grubo swoje whasne oszczędności na straty. W sprawie banku North Western oświadczam, CO następuje: Bank Kierują nim ludzie silny na zdrowych podstawach. ten jest zdolni zaufania godni niema najmniejszej obawy zlożone whim 0szczędności normalne prowadzenie byznesu, jesli depozytarjusze beda mied do tej instytucji powtanej należne jej zaufanie jesli pozwolą jej prowadzić normalnie interes. Dlatego wzywam wszystkich depozytarjuszy. banku North Western, zwłaszcza wszystkich związkowców towarzystwa związkowe, spobanku. Wzywam was do tego koj dalsze darzenie zaufaniem tego waszym własnym interesie. Bądzcie spokojni, nic wam nie grozi, oszczędności wasze sa pewne bezpieczne." "Nowy Swiat" zaznacza tej sprawie: Zarzad Związku Narodowego Polskiego pewnościa wie dobrze fall sprawa wygląda tej racji oświadczenie prezesa Romaszkiewicza nalezy uwazać za najbardziej sytuacji miarodajne. Histerja spowodowata zamknięcie ruine niejedenego banku podczas obecnego kryzysu gospodarczego Stanach Zjednoczonych. Najbardziej pewny odpowiedzialny bank nie wytrzyma, gdy wszyscy depozytarjusze jednoczesnie ruszą lawa zażądają swoich wkladów. Bowiem instytucje finansowe muszą mieć tylko pewną część gotówki prawem przewidzianą, którą moga rozporządzać. Reszta jest na wekslach, lub na hipotekach realnościowych zrealizowanie jej wymaga czasu. Warto tutaj przypomnieć, te bank North Western Trust and Savings omal nie padh ofiara paniki przed dziesięciu laty. Wówczas energiczna akcja Smulskiego mająca za sobą solidarne poparcie prasy, zażegnały katastrofe. Okazalo się pózniej, ze panika zostala celowo zorganizowana ** nie bylo żadnych innych powodów. Naturalnie sprawcy nigdy prawie nie sa schwytani. Lecz publicznosc winna być ostrozna nie dawac posłuchu alarmistom, bez dokladnego 1 spokojnego zbadania pogłosek, które prowadzą do katastrofy.
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SEEK TO RECOVER $1,000,000 FOR BANK DEPOSITORS Receiver for N. W. Trust Files Claim in Court. Judge Robert E. Gentzel of the Su. perior court will be asked today to decide whether the transfer of $1,000,000 of assets of the North Western Trust and Savings bank, now in receivership, to the North Western Se. curities company, an associated cor. poration, was legal. In effect, the question at issue is whether the assets of the North Western Securities company belong to the stockholders of the bank, which was closed on June 10, 1931, or to the bank depositors. The securities affiliate is operated by former officers of the bank as trustees for the bank stock. holders. The transfer of assets was made six months before the bank's closing. Calls Transfer Illegal. A petition filed Saturday by David E. Shanahan, receiver of the bank, stated that Mr. Shanahan had been informed by the state's attorney's office that this transfer of assets and a reduction of of the seto the bank were 11legal because they were to the bank. The receiver further alleged that if the 000 of assets transferred had been properly accounted for on the books there would have been no funds available to pay dividends of 000 on Jan. and that under the Illinois banking laws the dividend payment was illegal. The same claim is made in regard to $15,000 dividend to bank stock holders on April 1, 1931. Benefit of Depositors. Altogether Mr Shanahan is requesting that Judge Gentzel order total of 170 assets and cashturned over to him for the benefit of the depositors of the North Western bank This sum is made up of the 1,000,000 of transferred assets; $120,354 which, it is alleged, was the reduction the indebtedness made by the bank for the benefit of the North Western Securities company; $10,000 which the securities company collected on loan that was in the transferred $1,000,000 and retained for its own uses, and the $40,000 in dividends. The last item is sought from bank stock. holders; the remainder from the securities company and its officers. The involved story of the transfer of the $1,000,000 from the bank to the securities affiliate is detailed in the petition of Mr. Shanahan. The document stated that on Nov. 28, 1930, the bank directors authorized a reduction in the capital stock of the institution from $1,250,000 to $625,000. Also, the directors at the same time made the transfer of the $1,000,000 of assets, called slow and undesirable," to the securities concern. Writes Off $1,000,000. By reducing the capital stock $625,000 and taking $375,000 from the undivided profits account the $1,000,000 was thus written off as bank assets and the North Western Securities company became the owner. It was stated that the securities company had assets of a sort-and its liabilities were all to the bank stockholders. This arrangement was approved by vote of the stockholders. On Jan. 13, 1931, the North Western Trust and Savings bank increased its capital stock from $625,000 to $1,000,000 and offered its stockholders the right to purchase an additional 3,750 shares, prorated according to their holdings then, at $200 share. The petition of Mr. Shanahan stated that in the transfer of assets from bank to securities company the latter received $879,645 in notes and mortgages of persons other than the securities company. At that time the securities affiliate owed the bank $170,000. Debt Is Settled. This debt was settled by allowing the securities company to take back its own note and to issue obligations to the amount only of $49,645. Thus the round million figure was reached and the securities company's indebtedness to the bank slashed by $120,355. was admitted in the petition that while Assistant State's Attorney Henry E. Ayres regarded the transactions between bank and affiliated company as illegal, other legal experts were of opinion that no illegality had occurred. The North Western Securities company is now also in the hands of a receiver, who has refused to admit that the depositors have any claims against the transferred $1,000,000 of assets. Judge Gentzel is requested to inform Mr. Shanahan what he should do.
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FILE PETITION ASKING RETURN OF BANK ASSETS The petition of the receiver for the North Western Trust and Savings bank. asking the court to decide the legality of transfer of $1,000,000 worth of assets from the bank to the North Western an affiliated corporation, few months before the bank closed on 1C, 1931, was filed with Superior Judge Robert E. Gentzel Preceding the filing attorneys for the securities for depositors of the bank, and for the bank holders who also are the argued the validity of the Then the judge all interested parties to file answers the petition and set Monday for hearing The receiver David E. Shanahan, stated that E. Ayers of the state's attorney' office had formed him the cransfer legal and that two dividends the bank during months before closing also illegal. Ayers said his examination of the bank books convinced him that statements Attorney Charles Deneen. senting the could show that the transfer proper. Attorney John counsel for the securities corporation suggested compromise and stated other assets held by bank