4647. Roseland State Savings Bank (Chicago, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
July 6, 1931
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
bf35a5df

Response Measures

None

Description

Articles state the Roseland State Savings Bank closed and a receiver was appointed (George W. Reinecke). No article describes a depositor run prior to closure or any reopening; therefore classified as a suspension that resulted in permanent closure/receivership. No clear cause for the suspension is given in the provided texts, so cause is coded as 'other'.

Events (2)

1. July 6, 1931 Suspension
Cause Details
Article notes the bank closed and a receiver was appointed; no explicit cause (e.g., run, embezzlement, correspondent failure) is given in the provided excerpts.
Newspaper Excerpt
George W. Reinecke, receiver for the Roseland State Savings bank. closed July 6, listed receipts of $395,296 and of $72,893.
Source
newspapers
2. April 1, 1932 Other
Newspaper Excerpt
Gets 10 Days in Jail... in connection with the failure of the Roseland State Savings bank. Erickson was called to testify concerning $13,000 he owed the bank ... sentenced him for contempt.
Source
newspapers

Newspaper Articles (2)

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 Chicago Tribune, April 1, 1932

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Article Text

BANKER ACCUSED OF $65,000 THEFT N TRUE BILL ontractor, Bank Debtor, Gets Ten Days. A. true bill was reported voted by the grand jury yesterday charging Louis Kaufman, 55 years old, president of the defunct Kaufman State bank, 124 North La Salle street, with embezzling $65,800 of the bank's funds during the market crash of 1929. The bank failed last Feb. 17. with an estimated loss of $150,000 to depositors. Assistant State's Attorney Wilkie Ham. who presented the case to the grand jury. said the testimony in dicated that Kaufman had employed most of the money in market specula tions and had used for alimony payments to a. former wife and for traveling of his present wife and son. Kaufman lives at 3800 Sherroad. By reason of his position as principal stockho and virtual dictator of the bank, was able to hide his peculations from bank examiners for many months. Mr. Ham said. The evidence before the grand jury was produced by in the office of State Auditor Oscar Nelson, the prosecutor added. Charges of making false statements to bank examiners and accepting deposits while aware that his bank was insolvent may be made against Kaufman later, according to Mr. Ham Since the bank closed Kaufman has made restitution of $21,000. the prose. cutor said, adding that in addition to the alleged embezzled balance, Kaufman owes the bank $34,000 on unsecured notes. Gets 10 Days in Jail. Hjalmar Erickson, a building contractor of 12315 Lowe avenue, began serving a ten days' sentence for contempt of court yesterday afternoon as the upshot of hearing before Circuit Judge Feinberg in connection with the failure of the Roseland State Savings bank. Erickson was called to testify concerning $13,000 he owed the bank and to explain why he had given his father a chattel mortgage on all contracting equipment recently. This man was victim of unsound advice," said Erickson's lawyer, Frank C. Leviton. He went to free legal information bureau and was there informed erroneously that this court was entitled only to limited information in such as his." Angered, Judge Feinberg demanded further information regarding the free legal bureau. Erickson refused to answer. The judge immediately or. derer him into custody and sentenced him for contempt. Await Word on Loan Policy. State bank receivers were word from Auditor Nelson as to whether they might pledge assets defunct banks for loans from the Reconstruction Finance corporation in view of the opinion of Attorney General Oscar E. Carlstrom that such loans are legal. The auditor is due back from Springfield this morning. It is understood that a number of knotty legal points must be settled before the loans can be made. The auditor is reported eager to authorize the contracting of such loans providing the corporation evinces willing ness to make such loans on a substantial percentage of the face value of the pledged collateral. If the corporation decides to make the loans only on small percentage of the market value of the assets, however, the auditor is reported to believe it would be move desirable to conserve the assets until a gain in market prices Easy justify an outright sale. It is said that the auditor does not regard Mr. Carlstrom's opinion as significant factor in the question. It was pointed out that on Feb. 23 the attorney submitted an opinion holding that receivers of defunct build ing and loan companies might secure loans from the reconstruction corporation. Walter T. Fisher, legal adviser to the corporation, later held that building and loan mortgages were nonnegotiable assets.