4644. Roosevelt State Bank (Chicago, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
August 2, 1930
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
aadfa7fa

Response Measures

Full suspension

Other: Receivership and lengthy liquidation followed closure; bank often referred to as Roosevelt State / Roosevelt-Bankers State in OCR'd articles.

Description

Contemporary articles report heavy withdrawals (a run) inspired by the closing of the Binga State Bank; the state auditor ordered the Roosevelt State Bank closed on Aug 2, 1930 for cash shortage. The bank thereafter remained in receivership (receivers' reports and prosecutions appear in 1931 and later). The bank is also referred to in some pieces as Roosevelt-Bankers State Bank; used provided name Roosevelt State Bank.

Events (3)
1. August 2, 1930 Run
Cause
Local Banks
Cause Details
Heavy withdrawals (run) by depositors reportedly inspired by the prior closing of the Binga State Bank (another Negro institution).
Newspaper Excerpt
There had been heavy withdrawals, said to have been inspired by the closing of the Binga State Bank
Source
newspapers
2. August 2, 1930 Suspension
Cause
Government Action
Cause Details
State auditor ordered the bank closed (suspension/closing) because of cash shortage following heavy withdrawals.
Newspaper Excerpt
The Roosevelt State Bank ... was ordered closed by the State auditor today because of a cash shortage.
Source
newspapers
3. * Receivership
Newspaper Excerpt
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.
Source
newspapers

Newspaper Articles (22)
1. August 2, 1930 Omaha World-Herald Omaha, NE
Article from Omaha World-Herald, August 2, 1930

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Roosevelt State Bank at Chicago Is Closed Chicago, Aug Roosevelt State bank with deposits was ordered closed by the state auditor today of cash caused by heavy bank located near Negro and reported that the resulted from the closing last week the Binga State bank, Negro bank which had deposits of Connellsville, Pa., Aug. Embarrassed by runs in the last two days, First National Bank of Vanderbilt. near small institution, closed today. The runs were the result of the closing of three of the four banks here within the past month. Cosgrove, president, pressed confidence that all positors ultimately would be paid full. Scheidt, formerly of Scotia, Neb., Friday the duties of county agent for Douglas counDuring past seven years has been Scotia, and part of the time superintendent of schools there.

2. August 3, 1930 Evening Star Washington, DC
Article from Evening Star, August 3, 1930

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STATE BANK CLOSES. CHICAGO, August 2 (A).-The Roosevelt State Bank, a Negro bank with desposits of $1,390,000, was ordered closed by the State auditor today because of a cash shortage. There had been heavy withdrawals, said to have been inspired by the closing of the Binga State Bank, another Negro institution, because of frozen assets, largely real estate papers.

3. August 3, 1930 The Owensboro Messenger Owensboro, KY
Article from The Owensboro Messenger, August 3, 1930

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Negro Bank With Deposits Of $1,390,000 Is Closed Chicago, Roosevelt State bank, negro bank, with deposits of $1,390,000 was ordered closed by the state auditor today because of cash shortage. There had been heavy withdrawals said to have been inspired the closing of the Biga State bank, another negro institution, because assets, largely real estate

4. August 3, 1930 Wisconsin State Journal Madison, WI
Article from Wisconsin State Journal, August 3, 1930

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Heavy Withdrawals Force Big Chicago Bank to Close CHICAGO- (U.P.) -Heavy withforced the closing today of the Roosevelt bank on the south side, where the Binga State bank three days Deposits of the Roosevelt bank be capital $200,000 and surplus $50,000.

5. August 5, 1930 Two Rivers Reporter Two Rivers, WI
Article from Two Rivers Reporter, August 5, 1930

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Three Arrested For Bank Theft RACINE, Wis., (AP)- Three men wanted for a Judson, Minn., bank robbery in Minnesota were arrested here Friday by Sheriff F. W. Cords of Blue Earth county, Minn. They are Paul Huntley, 20, his brother Earl, 26 and Thomas Lindsay 25. $1,500. The bank was robbed July 24 of RUN CLOSES BANK CHICAGO. (AP)-The Roosevelt state bank with deposits of $1,390,000 was ordered closed by the state auditor today because of a cash shortage caused by heavy withdrawals. The bank is located near a negro neighborhood and it was reported that the withdrawals resulted from the closing last week of a negro bank which had deposits of $1,200,000. Want ads buy, sell and exchange. Noll Wing had driven his last lance. He was tired: he showed it when Brander gave the whale to Willis for towing back to the ship, and raced for the Sally with Noll panting in the bow. The fire dying in the captain's eyes: he pulled Brander's coat about his great shoulders and huddled into it. He scarcely moved when they reached the Sally. Brander helped him aboard. "A great fight, sir," cried Dan'l Tobey. "Six hours and two stove boats. But you killed. Noll wagged his old head, looked around for Faith and leaned heavily upon her arm. "Take me down. Faith," he said. "Take me down. am very tired." One-eyed Mauger sought out Brander three days later. That is to say, the little man made occasion, during the work of scrubbing up after Noll's last whale, to come to Brander's feet, and while he toiled at the planking of the deck there, he looked up at the fourth mate and nodded significantly. (To Be Continued)

6. August 5, 1930 The Vicksburg Post Vicksburg, MS
Article from The Vicksburg Post, August 5, 1930

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THIRD NEGRO BANK IN CHICAGO CLOSES CHICAGO Aug third bank patronized owned by groes closed today. Citizens Trust and Savings Bank ordered shut the state auditor following during which $500.withdrawn. first negro bank to close The the Bigna State. deposits than had more frozen real estate asse's. The second was the Roosevelt State deposits more than due run negro depositors. The Citizens' Bank was capitalized and had deposits about $1,000,000.

7. August 5, 1930 The Dispatch Moline, IL
Article from The Dispatch, August 5, 1930

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CHICAGO BANK CLOSES FOLLOWING HEAVY RUN By Associated Aug. The Trust and Savings bank was the state auditor today following the bank during deposits This bank the third withdrawn. south side bank closed during the last The Citizen's bank located and South State streets, the edge the negro district. The first bank to close the Binga deposits of the The second the which had deposits than much of savings. The Roosevelt State closed due to cash shortage by heavy withdrawals after the Binga bank was closed. The Citizens bank was capitalized and had

8. August 5, 1930 Globe-Gazette Mason City, IA
Article from Globe-Gazette, August 5, 1930

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Chicago Bank Closes Following Heavy Run by Negro Depositors CHICAGO, Aug. 5. (/P)-The Citizens Trust and Savings bank was closed by the state auditor today following a run on the bank during which $500,000 in deposits were by his wife and several children. withdrawn. This bank is the third south side bank closed during the last week. The Citizen's bank is located at Fifty-fifth and South State at the edge of the Negro district. The first bank to close was the Binga State, with deposits of more than $1,200,000 among the Negroes. The second was the Roosevelt State, which also had dosposits of more than $1,000,000, much of It Negro savings. The Roosevelt State was closed due to a cash shortage caused by heavy withdrawals after the Binga bank Phone 217 was closed. The Citizen's bank was capitalized at $200,000 and had deposits of about $1,000,000.

9. August 5, 1930 The Pantagraph Bloomington, IL
Article from The Pantagraph, August 5, 1930

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Closes South Side CHICAGO. Aug Trust and Savings bank closed the state Tuesday following the bank $500,000 deposits This bank the third side bank closed during the week. Citizens bank located and South State, at of the colored district. The edge bank close the Binga with deposits more than $1,200,000 among the colored population. second the Roosevelt State. had deposits more than million dollars, much savings of colored The State closed due cash caused by heavy after the closed. bank capitalized $200,000 had deposits about million dollars.

10. August 5, 1930 Belleville Daily Advocate Belleville, IL
Article from Belleville Daily Advocate, August 5, 1930

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CHICAGO BANK IS CLOSED BY AUDITOR CHICAGO. Aug. (AP) The BUSINESS Citizens Trust and Savings Bank LARGE OR SMALL was closed by the state auditor today following run on the bank during which $500,000 in deposits were withdrawn. This bank is the third South Side bank closed during the last week. The Citizen's Bank is located at 55th and South Ask State, at the edge of the negro disFor trict. The first bank to close was the Binga State. with deposits of more than $1,200,000 among the negroes. The second was the Roosevelt State, which also had deposits of more than $1,000,000 much of it negro savings. The Roosevelt State was closed due to a cash shortage caused by heavy withdrawals after the Binga Bank was closed. The Citizens Bank was capitalized at $200,000 and had deposits of about $1,000,000

11. August 5, 1930 Dixon Evening Telegraph Dixon, IL
Article from Dixon Evening Telegraph, August 5, 1930

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Third State Bank Negro Dist. Closed Chicago, Aug. zens Trust Savings Bank closed by the State Auditor today following run on the bank during in deposits were drawn This bank the third south bank closed during the week The Citizens bank located 55th and South State the edge the Negro district The first bank the Binga State with of more than among the Negroes The second was the Roosevelt State which also had deposits of more than Negro savings The Roosevelt State was closed due to cash short caused by heavy withdrawals the Binga bank was closed The Citizens Bank was capitalized and had deposits of about

12. August 5, 1930 The Daily Nonpareil Council Bluffs, IA
Article from The Daily Nonpareil, August 5, 1930

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THIRD BANK IN NEGRO SECTION IS CLOSED The Last Chicago Institution Close Paying Out Over $500,000 in Run. CHICAGO, Ill., Aug. Trust Savings bank closed by the state today on the bank during which $500,000 This bank the third south side bank closed during the last week. The Citizens bank located and South State streets, the the Negro district. The first bank close the Binga State, with deposits of more than $1,200,000 among the Negroes. The second was the RooseState, which also had deposits more than much Negro savings. The Roosevelt State closed due to cash shortage caused heavy withdrawals after the Binga bank was closed. The Citizens bank was capitalized at had deposits of about $1,000,000.

13. August 6, 1930 Leader-Telegram Eau Claire, WI
Article from Leader-Telegram, August 6, 1930

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Third Chicago Bank Closed Out by Run Associated Press) CHICAGO, citizens Trust and Savings bank closed the state auditor today following on the bank during which $500,000 deposits were withdrawn. This bank the third South bank closed during the last week. The Citizens bank located and South State, the edge the negro district. The first bank was the Binga State, with posits more than among The second the Roosevelt State, which also more than much negro savings.

14. August 9, 1930 The New York Age New York, NY
Article from The New York Age, August 9, 1930

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Another Chicago Bank Closed By State Auditor Chicago, Roosevelt State Negro bank with deposits of ordered closed the State Auditor Saturday August because cash shortage There been heavy withdrawals, said to have been inspired by the closing the Binga State Bank, another Negro institution, because of frozen assets largely estate papers.

15. April 11, 1931 New Journal and Guide Norfolk, VA
Article from New Journal and Guide, April 11, 1931

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CONTEMPT CASE POSTPONED Prominent Illinois Men Cited By Judge The case centering around the citation for contempt court against Dr. M. O. Bousfield, W. Ellis W. Louis Davis. and James Jones, postponed by Judge Gentzell Saturday namely the Chicago Trust Company, requested the action. might disposed out the reports the matter out of which tempt the the defunct Roosevelt Bank num. obligathe Cemetery and the Liberty Foundation Finance Comwhich the dents had paid, before the failure the When notes, which alleged paid, but not dered. the Chicago Trust the of the funct action was taken to payment. Attorney Earl Dickerson set the ordered tried merits The Trust Comthen applied Judge Gentzel the order cause not be in contempt respondents appeared Saturday and the filled was postponed. has out that of the the for various has already been the receiver attorneys although one penny far has the The the that the the judgdelaying them hinderthem discharging of the depositors.

16. July 23, 1931 Chicago Tribune Chicago, IL
Article from Chicago Tribune, July 23, 1931

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Bank Receivership Collections Shown cago district which are in the hands. Of in there are eleven banks for which are yet to be appointed. Most of banks in which were not included in yesterday's report closed too to have had analyses made. Reports to the public are to be made Mr. Nelson said. Three More Receivers Named. The auditor named ceivers for the Diversey the Roosevelt and Twelfth Street Glen bank the sey and & muth closed of and of of the is to as the Floyd M. attorney. The bank it closed on June resources of $222,932 and deposits of $104,373. Mr. Nelson and Mr. Kenlay were also er and for Twelfth Street bank respectively, which closed the on June 29 with resources of $385,886 and deposits of The following table, forming a part of State Auditor Nelson's report banks now in the of the state collected so far by their at date of their the and the amounts The receivers and salaries and bursements Date Total BINGA 73,673 receiver 957,875 365,196 5,136,409 3,859,919 Urion, PK. 29,313 572,213 307,489 976 Frank 25,364 CITIZENS 1,024,043 626,105 116,502 Nelson CITIZENS 1,944,458 1,193,777 CITY 4,522,881 1,735,801 receiver. 1,393,093 receiver. COMMERCE 247,433 83,518 1,741,320 559,744 TRUST 8,108 5-14-31 BANK 2,405,742 130,727 14,985 OF 457,251 106,402 85,756 VIEW 1,499,309 Green LANSING BANK 43,287 Gorman 8-16-30 LARAMIE 712,129 81,310 20,570 receiver. 3,600,000 Dunbar 8-15-30 BANK 970,656 762,883 293,690 Barrett 2,707 4-14-31 STATE 1,203,423 165,881 STEISKAL 1,107,265 616,523 PEOPLE'S 572.412 181.250 Busscher 132.870 STATE BANK 458,997 323,460 Title Co., OF 447,484 99,281 Weinfeld. BANKERS 1,249,644 133,193 119,152 5-14-31 738,059 74,508 1,898 Litsinger 1-28-30 WEST CENTRAL 805,100 Bernard Totals

17. September 17, 1931 Chicago Tribune Chicago, IL
Article from Chicago Tribune, September 17, 1931

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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.

18. September 26, 1931 The Afro-American Baltimore, MD
Article from The Afro-American, September 26, 1931

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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.

19. October 10, 1931 The Chicago Whip Chicago, IL
Article from The Chicago Whip, October 10, 1931

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Receiver Says Only $1,200 Cash At Roosevelt Bank; No Hope Of Dividends The 25,000 or more depositors were returned and are still pending whose savings were tied up in the against Samuel Flowers, president of the bank, Alexander Flowers closing of the Roosevelt-Bankers State bank. most of whom are resichairman of the board of direectors dents of the south side have but Frank Flowers, vice president, and Louis Franks, cashier of the bank. small hope of even a very small The four bank officials were tried return on the deposit in the form on one in: ment of accepting deof dividends, judging from the report of the receivers which was posits while the bank was known to (Continued on page 3) made public last week. The total resources of the bank, according to the report. total only $920,842.75 while the balance due to the deposiSTEALS $3,000 tors and other ereditors .f the bank are placed at $1,169,791.40. Of the FUND FOR NEGRO total accedets o: the bank. the receivers have b n able to realize only FLOOD RELIEF $1,200 in cash for the depositors MEMPHIS, Tenn., Oct. 7.-Mrs. during the fourteen months since Morah S. Deusing. white, former the bank was closed. While only slightly inore than a thousand dolpostmistress *at Ravenwoodd, La. was arrested here Wednesday on a lars is available for the depositors warrant charging her with having It is significant that the process of embezzled $3000 during her term of liq id.tin~ the bank the receivers office. Police has been searching for have deducted $20.000 for receivers her through Arkansas, Louisiana fees. $1.000 for tt TWS fees. and and Tenness. discovering her work$22,287.25 for clerk and stenographer compensation. Another item of ing as a cashier is her brother's "driv-yourself automobile office." expense which has not been fully Mrs. Deusing's brother, H. H explaimed in the published report is one of $26,996.79 for "miscellanSpiller. acted as her spokesman and explain I that she was the only eous expense." Thus the total exwhite person in or near Ravenwood panses.' Thus the total expenses during the 1927 flood and that she for liouidating the bank amount to had used some of the money to feed $86,328.03, in order to retrive a total the hungry and distressed Negroes of $1,200 for the depositors. there. The balance was supposed to CaPed "Grand Steal" have been burnt i: a fire whic' coAt the time when the bank was stroved her home last year. Police closed by the state auditor on August 2, 1930, It was found that the skeptical, said thev also wanted to talk to her about her possible comfinances of the institution had been plicity in the operation of auto hopelessly involved by the maneutheft ring verings of the officers. Indictments

20. October 10, 1931 The Chicago Whip Chicago, IL
Article from The Chicago Whip, October 10, 1931

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Receiver Says Only $1,200 Cash At Roosevelt Bank; No Hope Of Dividends The 25,000 or more depositors whose savings were tied up in the closing of the State bank most of whom are dents of the south side have but small hope of even very small return on the deposit in the form of dividends. judging from the port of the receivers which was made public last week The total sources of the bank the report total only $920,842.75 while the balance due to the Cepositors and other emeditors the bank are placed at $1,169,791.40 Of the ers have b n able to realize only $1,200 in cash the depositors during the the bank was closed While only is available for the depositors lin significant that the process of the bank the have deducted $20.000 for receivers expense which has not been full in the published report panses. Thus the total expense for liouidating the bank amount to $86 in order to retrive a total CaPed "Grand Steal" At the time when the bank closed by the state acditor on AuRust 2. 1930 It was found that the finances of the institutic had been hopelessly Involved by the maneu verings of the officers. Indictments theft were returned and are still pending against Samuel Flowers. president of the bank Alexander Flowers chairman of the board of direectors Frank Flowers, vice president and Louis Franks cashier of the bank The four bank officials were tried one ment of accepting dethe bank was known to Continued on page 3)

21. October 5, 1935 The Omaha Guide Omaha, NE
Article from The Omaha Guide, October 5, 1935

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Fees Eat Up Assets Of Chicago Bank Chicago, Oct. 5-(ANP)-Although depositors, the majority of them Negroes, have never received a "dividend", Master-in-Chancery Louis J. Behan, attorney for the receiver of the Roosevelt-Bankers State Bank on 47th street, has collected $15,000 in fees, investigations disclosed this week. In addition, some $59,000 has been spent here for "clerk hire and miscellaneous expense" since the bank closed five years ago. When the bank closed, depositors were owed $1,268,300.79. Although nothing has been paid to depositors, the bank's remaining assets after five years of receivership have a current book value of only $801,626.63.

22. October 10, 1935 The Northwest Enterprise Seattle, WA
Article from The Northwest Enterprise, October 10, 1935

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Fees Eat Up Assets Of Of Closed Chicago Bank CHICAGO (ANP) - Although depositors, the majority of them Negroes, have never received a "dividend," Master-in-Chancery L. J. Behan, attorney for the receiver of the Roosevelt Bankers State bank on 47th street, has collected $15,000 in fees, investigations disclosed this week. In addition some $59,000 has been spent here for "clerk hire and miscellaneous expense" since the bank closed five years ago. When the bank closed, depositors were owed $1,268,300.79. Although nothing has been paid to depositors, the bank's remaining assets after five years of receivership have a current book value of only $801,626.63.