4664. Sheridan Trust & Savings Bank (Chicago, IL)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: savings bank
Start Date: June 8, 1931
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: b0f63e76

Response Measures

Full suspension, Books examined

Description

Articles report heavy withdrawals/uneasiness tied to publicity about the Foreman group leading the Sheridan Trust & Savings Bank to fail to open on June 8, 1931 (suspension) and later consent to appointment of a receiver (July 22, 1931). Classified as run -> suspension -> permanent closure/receivership.

Events (3)

1. June 8, 1931 Run

Cause: Local Banks
Cause Details: Publicity about the Foreman group/merger and resulting depositor uneasiness and withdrawals from affiliated neighborhood banks.
Measures: Turned affairs over to federal/state examiners; failed to open (suspended payments).
Newspaper Excerpt: These three were the Washington Park National Bank, South Side Trust and Savings Bank and Sheridan Trust and Savings Bank... All six closings were declared due to depleted reserves and shrinkage of deposits. In addition, the three affiliates of the Foreman group were said to have acted to turn their affairs over to examiners because of publicity given the Foreman merger and uneasiness among depositors.
Source: newspapers

2. June 8, 1931 Suspension

Cause: Local Banks
Cause Details: Depleted reserves and deposit shrinkage following depositor uneasiness tied to Foreman group publicity; bank failed to open for business on June 8, 1931 (suspension).
Newspaper Excerpt: Six Chicago neighborhood banks... failed to open for today. ... All six closings were declared due to depleted reserves and shrinkage of deposits.
Source: newspapers

3. July 22, 1931 Receivership

Newspaper Excerpt: CONSENT TO RECEIVER CHICAGO, July 22.-Depositors of the $10,000,000 Sheridan Trust. and Savings Bank have consented to the appointment of a receiver, abandoning plans to reopen the institution.
Source: newspapers

Newspaper Articles (12)

1. June 8, 1931 Muncie Evening Press Muncie, IN

Article from Muncie Evening Press, June 8, 1931

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CHICAGO BANKS ARE CLOSED Small Institutions Report Loss in Deposits. CHICAGO, June 8.-Six Chicago neighborhood banks, two national and four state, failed to open for today. Three of the banks were affiliated with the Foreman group, involved in one of the two loop bank mergers made over the week-end. These three were the Washington Park National Bank, South Side Trust and Savings Bank and Sheridan Trust and Savings Bank. The other institutions which closed were the Cheltenham Trust and Savings Bank, Industrial State Bank and Inland-Irving National Trust and Savings Bank. Reserves Depleted. All six closings were declared due to depleted reserves and shrinkage of deposits. In addition, the three affiliates of the Foreman group were said to have acted to turn their affairs over to examiners because of publicity given the Foreman merger and uneasiness among depositors. The Washington Park National Bank had $600,000 capital and $439,000 surplus. The Inland-Irving Trust and Savings Bank reported $525,000 capital and $250,000 surplus. Figures on the deposits in these two were not available. Figures on the state banks, as announced by the state auditor's office, were: South Side Trust and Savings, capital $1,000,000, deposits $7,000,000; Sheridan Trust anl Savings, capital $1,000,000, deposits $12,242,000; Cheltenham Trust and Savings, capital $200,000, deposits $535,000; Industrial State, capital $100,000; deposits $650,000.

2. June 20, 1931 Chicago Tribune Chicago, IL

Article from Chicago Tribune, June 20, 1931

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WAUKEGAN RUN FORCES ANOTHER BANK TO CLOSE The Waukegan National bank Waukegan, III., closed its doors yes terday following run which developed after the closing of the kegan State bank on the previous day. At the request of the directors the institution was taken over by the federal bank examiner. The bank had deposits March 25, last, capital and surplus of $150,000. Officials pressed the hope that an early would be The State bank, 5939 West institution with deposits of $80,000, was closed yesterday by the state auditor at the request of the board of The bank's capital was listed as $100,000 and surplus as Depositors of the Sheridan Trust and Savings have organized comof which is headed by mittee 25 B. Herbison to look after the inter ests of depositors. The committee has in the bank' will cooperate with the state and auditor in working out a plan of liquidation of the bank's assets. A similiar has or. by the depositors of the South Side Bank and Trust company The committee is headed by Eugene Abegg. Other members are Dr. Christopher S. John B. and Lewis F. Jacobson. will investi- at. torney. The the feasibility of early gate an dend for depositors and the possibil ity of reorganization.

3. July 3, 1931 Daily Republican-Register Mount Carmel, IL

Article from Daily Republican-Register, July 3, 1931

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securities stolen from an unspecified number of Chicago banks. Included in the recovery, it was believed, was $30,000 in bonds stolen last November from the Sheridan Trust and Savings bank, North Side institution, since closed. The robbery was not a factor in the bank's suspension.

4. July 19, 1931 Chicago Tribune Chicago, IL

Article from Chicago Tribune, July 19, 1931

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Will Appoint Receiver for Sheridan Auditor Oscar Nelson yesterday that appoint Monday the Sheridan Trust Savings bank, affiliate Foreman six deposit liabilities off $5,276,000. had officers of the Illinois the National groups come in the week to over the books Trust to their taking Mr. Nelson explained. Neither group was interested, the receivership to follow." Supplementing the auditor's anthe committee of the closed issued that the reopening of the bank at this time imhad the in new needed before the to reopen. Assets Drained Away. present of the bank best by calling tion to the fact that on the first the current year deposits amounted to slightly whereas the time closing the deposit liabill tiese the depositor's pointed approximately has the institution its of that remain, the auditor listed doubtful worthless. This does mean that these not yield substantial over period of but they are not the kind of assets which the state auditor in of the bank." Members of Committee. The committee, comprising Stanley B. John Bowers, L. E. W. Miles, Thomas D. Bell, had retained Roy D. Keehn legal The mittee that no to positors support has authorized. Finally, the announcement stated. the committee as group has not to be identified with the the group of depositors who, under the of Mr. Bell and Attorney Lewis Jacobhave been pledges to prevent receivership. Threatens Suit. Learning of the impending appoint ment receiver, Attorney Jacobissued statement threatening enjoin the receiver from rificing assets auctioning bonds if, in the opinion of depositors, better values by ordinary or It great shock to hear that the will ceiver,' Our will be stopped however. If receiver will be from as sets holding if, the opinion of depositors, better values could be obtained by ordinary realization reconstruction. Replying to Mr. Neltry son pointed out that in the case national is appointed immediately upon the closing of the banks. Statement on Noel Bank. The Noel State bank, Milwaukee North which closed voluntarily on June 18 after heavy its side that is likely to ment of its R. Noel. state on the bank's this week. Until get the audit know what the will make for reorganization, such move Mr. Noel much regret to see liquidation by see no other way out this time. am we will be found solvent will take time handling of the assets to establish this."

5. July 22, 1931 The Washington Times Washington, DC

Article from The Washington Times, July 22, 1931

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CONSENT TO RECEIVER CHICAGO, July 22.-Depositors of the $10,000,000 Sheridan Trust. and Savings Bank have consented to the appointment of a receiver, abandoning plans to reopen the institution.

6. August 23, 1931 Chicago Tribune Chicago, IL

Article from Chicago Tribune, August 23, 1931

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SUBPOENA FIRST WITNESSES FOR QUIZ ON BANKS Sheridan Trust Receiver Attacked in Court. of and M. to to grand be of in the closed and difor subsequent the bank, by Thomas D. of in United committees of Blanks for Claims. of by of among receiver from to said he to the the declared they the AudiNelson and in use by every receiver the city. Group to Ask Report. The United to Nelson for an of by The central to frozen for the announced could expect on 1. The Jr. Find Camera, Cap and Sail, Believed Andre's, in Arctic Aug. at he and he once belonged

7. December 28, 1931 Chicago Tribune Chicago, IL

Article from Chicago Tribune, December 28, 1931

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Judge Asks Assembly Action to Protect Bank Deposits Circuit Judge Michael Feinberg, who for the last eight weeks has been conducting hearings to aid bank receivers to cover assets of made public yesterday letter he had written to Gov. Emmerson urging the pointment of legislative mittee to probe the state banking situation with view to in the present Illinois banking act. Conditions discovered in sixty banks, ing which he has conducted hearings, demonstrate that the safeguards now afforded bank depositors are woefully inadequate, the judge asserted. He offered to appear before any committee the governor might appoint to reveal some of the conditions coming under his observation. As a result of the hearings before me upwards of $480,000 has been collected for the benefit of depositors of closed banks,' the judge wrote. condition of affairs respecting the internal management of these banks. conditions which indicate clearly the need for protection in the future for depositors of that is woefully lacking in our present banking laws. Unless better protection is afforded the depositors of banks than is possible under the present banking act there is no guarantee against a repetition of these practices. 'May presume sufficiently to sug gest that in my opinion a committee of the house and senate be appointed by the present session of the legislature, empowered to investigate these closed banks and be prepared to submit comprehensive report to the next regular session of our legislature. My thoughts being that this work could be finished in time for the next regular session of the legislature, 80 that needed legislation may be adopt. ed without would be perfectly willing to give such a the benefit of my time and the information gathered in the hearings had before me. This morning Judge Feinberg will resume his investigation of the closed Sheridan Trust and Savings bank. Among witnesses to be heard will be David H. Jackson, former chairman of the Illinois commission; his brother, Andrew Jackson, and number of north side business men, all of whom are indebted to the bank.

8. January 1, 1932 Chicago Tribune Chicago, IL

Article from Chicago Tribune, January 1, 1932

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DIRECTOR HELD SEVERAL HOURS IN BANK PROBE Freed on Pledge to Give Answer on Debt. A. Burnette, former director of the Sheridan Trust and Savings bank, was held in the custody of for several yesterday alleged evasive replies to by Circuit Burnette, according to testimony was worth year He told the judge to pay anything on a debt he last to disclose hidden to the bank for benefit of the Deposits totaled when the bank closed. Weeps After Conference released and told to with his The was when he from the after lengthy talk with the Judge Feinberg advised him, he said that he and his wife should their assets to aid starving bank Bur nette declared would have an answer for the judge Monday. Burnette Euclid Park and president of the Cookware of America, 1105 Lawrence When his ability to pay his Burnette declared that wife now holds all his property He has given her title to their home, a acre farm near and title to all his stock in he said. Are you to hide behind the judge inquired Wants to Stage Comeback. did what could in order that comeback, the wit ness This followed by the judge's order the bailiff to Burnette Two bank debtors, who previously an pay anything agreed to turn over certain assets Samuel Keller indebted for as signed the month to building the George McCabe, indebted for $29 000, turned to the receiver a half interest in property at Fullerton and Long ave nues, title 31 apartment build ing, and $40,000 in life insurance on which he has already borrowed. Attorney Swanson yesterday that as result of the acof his office to the closed Citizens Trust and bank promised to pay and on they owe the bank debtors to the bank been examined by Mr. and his assistant, Henry Ayers. RAIDERS ARREST TWENTY. West last on and arresting 20

9. January 7, 1932 Chicago Tribune Chicago, IL

Article from Chicago Tribune, January 7, 1932

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UNABLE TO PAY DEBT OF $108,000 TO CLOSED BANK Dismissed by Court on Poverty Plea. Robert Goldstein, 65 years old, real estate operator, who is indebted to the defunct Sheridan and Sav. ings bank for pleaded poverty yesterday. before Circuit Judge The judge is to discover hidden assets for the bank receiver. former stand here and tell 1 dime, Goldstein Everything had is gone. have borrowed from my assold my and resigned from my clubs. attempting to start life anew by organizing a novelty business and am on $35 The dismissed him Debtor Gives Deed for Home. Before Goldstein director of Curto, on the stand for third time. He had previously refused to turn over $150 000 trust to meet an to the bank. Yesterday he deeded his home at Pratt boulevard to the bank and made his first payment of a month to the bank for its another director of the bank was with contempt of court for giving alleged evasive his assets Burdette has also been on the witness three times, drawing judicial on each occasion for his ation of trust funds, which the judge holds were to evade payment of an obligation in excess of $90,000. Warned of Contempt. Burdette the court that he ordained a minister in 1918. Later he organized company to promote aluminum clubs among which became, the foundation of fortune, once reputed to be $3,000,000. "You haven't forgotten the gospel teachings to treat thy as thy the judge asked. you care to follow this Burdette said he but felt that he had prior of The judge warned him that he might be held in contempt for evasive answers. R. Le Roy Huszagh, broker, the bank $51 on note, testihe could find for his 625 shares of stock in the Aragon Amusement to meet the He was told to return Monday with the Promises to Sell Realty Henry J. Kopp. enue, a tile setter told the court he would sell real he to meet his obligation of $5,500 to the bank He was praised for his helpful atti tude. The judge will resume the hearings this The Farmers and Merchants State bank of Highland suburb of Gary, closed The bank closed eleven months and was reopened when depositors rallied to reState Examiner John Meyers withheld of the deposits. Resources were given as $225,000 MENACE FIFTEEN IN ROBBERY, Three against Fohrman $807

10. January 14, 1932 Chicago Tribune Chicago, IL

Article from Chicago Tribune, January 14, 1932

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AUDITOR NELSON WINS SEPARATE BANK CASE TRIAL His Plea for Early Hearing Denied. State Auditor Oscar Nelson was granted separate trial yesterday by Circuit Judge Edward D Shurtleff at on charge in connection with the failure of the Waukegan State bank last June 17. The auditor lost his plea for an early trial after heated argument State's Attorney Smith of elected to try Norman O. Geyer president of the defunct bank. and George Woodruff for. mer the National Bank of the Republic of Chicago, before Nelson is arraigned. Geyer and Wood. ruff were scheduled to go on trial Monday, plea for in behalf of Woodruff was denied. Indictments Charge Fraud. indictments against Nelson, Geyer, and Woodruff charge con spiracy to defraud in with the failure of the bank the bank's closing there were deposits of $1,224,000 and only $38,000 in cash on Prosecutor Smith has charged. Two others named at the same time are trials. William H. Miller. former vice of the Chicago bank, be tried in Lake county by Judge and John Murray former vice presi dent of the is to be tried in county by Circuit Judge Ralph Dady David Joslyn Nelson. asked that Nelson be tried first since he is candidate for reelection and the trial of oodruff and Geyer may not end until after the primaries. He months will be spent in attempting to prove the insolvency of the Waukegan bank before its actual closing. as charged by to change his decision to try the state auditor Denies Politics in Trial. "Of course, you know this insolvency applies to politics as well as other the judge then, Joslyn, are busted. We're Smith leaped to his feet to that there was in his Joslyn his charge that there was politics in the The judge smoothed over the disAttorney George T. Bucking ham, representing made plea for severance in behalf of his which Expect Sheridan Dividend. Floyd E. Britton, attorney for the of the defunct Sheridan Trust and bank, reported almost in and securities will soon be available for the bank's de positors. He made his report before Circuit Judge Michael Feinberg who Is seeking uncover assets hidden from the Britton discussed in detail trans actions between the Foreman National bank and the Sheridan Trust and Savings bank spiking rumors that in securities had been moved from the latter bank after its closing He said securi ties, as deed to loan of 780,000 moved after the closing as the deed Securities Up for Sale. of the securities $442,391 is now available for sale aid depositors. In addition, he said, there is $530,000 in on deposit with the Bank and the the judge quesMrs. Hannah Zuker 5329 Kento the Mrs. Zuker was as Hetty she reputed to have real estate holdings four and five million dollars. She told the Judge she was in default on all her properties and was on her sons for and she now lives on $20 The judge her to return this morning with her sons.

11. January 20, 1932 Chicago Tribune Chicago, IL

Article from Chicago Tribune, January 20, 1932

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BANK RECEIVER COMPILES BOND REPORT LIST NEW YORK CURB TRANSACTIONS Mary Manor Is First of Series If you have a defaulted real estate bond and haven't been able to get the be of may Write to Estate Service, Don't regarding than Give name of underat and full title of the must be by addressed envelope for personal reply. BY AL CHASE. Arthur M. chairman of the protective committee announced of reports on the various propis compiled by receiver of bank he first of these, JOHN HOOKER the of and Lincoln street, to the who president of the Mr. realty firm of Wirtz, Hubert & Little, that the expects to its plan of reorganization announce this property within the near The committee is composed of ture. John P. Hooker, of Hooker and Slosson, former president of the Chicago Estate board; O. P. Curran Jr., August Torpe presiof August Torpe Jr. Co. liam Ray Prince, real estate mortgages, and Ernest Ridgeway, receiver the Sheridan Trust and Savings bank. Fleming, Green Martin are the attorneys. Leo A. ter secretary The Mary Manor apartments, contwenty four suites originally by per cent bond reduced to Interest defaulted OctoThe Trust and Bavings bank obtained an of rents and operated the building until the bank closed. Committee Takes Hold. Then the bondholders' protective committee took up the situation and foreclosure suit. It was found the owner was willing to transfer the assignment of rents to the committee receivership was avoided. Following is report of the operation of the property since then by the committee: Rental Net. August, September 671.11 November The net cash on was Mr. Wirtz states. No fees have charged by the committee against the property. funds have been allocated as yet for payment of The 1928 general are partially paid and the balunpaid is subject to obJection. The 1929 taxes are unpaid. More than 90% of the bonds have deposited. The foreclosure suit been proved up as it is the hope of the committee that complete of bonds would allow reorganization without that expense. The was 85% rented the first of last month. The attitude of owner, to Mr. Wirtz, one of close Has $9,228 Cash on Hand. Williams, secretary of the for mortgage bond reports that the Deauville Manor at the corner Malden and Sunnyside avenues, cash balance on hand, Nov. 30, Eng of $9,228. The receiver's income expense statement for the period to Nov. 1931, showed of $18,166 and operating expenses of $8,613. Special assessof $324 were paid. Bank and Trust is receiver The bond issue was It has been reduced to D. Pettibone is chairman of the bondholders' committee. Fageol Foltis Gen Gulf Ital Sup Kirby Kress Shore Long Mapes Monong Nat Amer MILWAUKEE STOCKS Sales Low Shares sold today 1932 to in DOMESTIC BONDS. Creole Curtis D Dayton De Forest Durant EuroE] FOREIGN BONDS. 1% INVESTMENT TRUSTS Tuesday, Jan. 1932. Shares sold today Tuesday, Jan. 1932. 44,000 CHICAGO STOCK TRANSACTIOINS Total sales 1932

12. March 26, 1932 Chicago Tribune Chicago, IL

Article from Chicago Tribune, March 26, 1932

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SWANSON AID CALLS FEINBERG CHARGES FALSE Nonpartisan League Head Replies to Judge. Prompt answer to what he termed the scurrilous charges' made by Michael yesterday by Cornelius, president of the Men's Nonpartisan league, which is State's Attorney Swanson for reelection. Feinberg, Corcused him of accepting for his organiza. tion from crook. ed bankers,' and with being debtor to bank. The CroweHarding candidate for state's attorney also said that Cornelius' real names is Wengierski. Cornelius is a north side real estate man. Changed His Name. The first two accusations are without foundation, Cornelius replied. As to his name, it originally was Wan"Judge Feinberg says our organization is supported by crooked bankers," said Cornelius, taking up the charges in detail. defy him to show that we have approached or received aid financially or in any way from any one connected with a bank receivership, whether those bank officials were crooked or not. Judge Feinberg then makes the statement that personally money to closed bank. do not owe one cent. At the time the Sheridan Trust and Savings bank closed its doors had borrowed comparatively small sum, approximately $1,500, having given this bank Foreman National bank stock as security. With the sudden closing of the Foreman bank, the stock became practically worth. less, so lost my entire investment. However, a few weeks ago made final and full settlement with the Sheridan bank receiver. Born Wengierskl. Judge Feinberg led off his attack on me by saying that my real name is Wengierski. was born Wengierski, went through Northwestern university under that name, and twenty years ago, by legal process, adopted Cornelius as my surname, and this fact is well known to my friends. While on the subject of names," Cornelius concluded, may ask Judge Feinberg if he divorce action in 1911 in which M. Fernberg asked for a divorce, making sensational charges in his bill and act ing as his own attorney. His real name was shown to be Michael Feinberg. The divorce eventually was granted to Michael Feinberg, not to Michael Fernberg. Could it be possible that our name caller" has himself changed his name? Swanson Issues Statement. Referring to the report that his candidacy is being supported by Emanuel Eller of the Bloody Twentieth ward. State's Attorney Swanson yes. terday issued the following statement: cannot what caused the break in the long friendship between Crowe, Feinberg, and the Ellers I have neither asked nor had any un derstanding of any kind with either of the Ellers. This looks like some of smooth politics."