4721. Washington Park National Bank (Chicago, IL)

Bank Information

Episode Type
Run Only
Bank Type
national
Bank ID
3916
Charter Number
3916
Start Date
October 1, 1922*
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini
Short Digest
79842754

Response Measures

None

Description

1922 news items report deposit withdrawals (a run) after disclosure/reports that the bank president was a Ku Klux Klan member; he was forced to resign. No suspension or closure is mentioned — bank remained open. Cause is treated as bank-specific adverse information (president's affiliation) rather than random misinformation.

Events (1)

1. October 1, 1922* Run
Cause
Bank Specific Adverse Info
Cause Details
Disclosure/reports that bank president A. E. Olson was a member of the Ku Klux Klan prompted depositors (Irish, Jews, and Black customers) to withdraw funds.
Measures
Bank directors demanded President Olson's resignation; he resigned to preserve harmony.
Newspaper Excerpt
Persistent rumors that A. E. Olson, President of the Washington Park National Bank is a member of the Ku-Klux-Klan, caused a run on that institution on Friday and Saturday of last week.
Source
newspapers

Newspaper Articles (3)

Article from The Chicago Whip, October 28, 1922

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Article Text

IRISH AND JEWS CAUSE RUN ON KLAN BANK Persistent rumors that A. E. 01son. President of the Washington Park National Bank is a member of the Ku-Klux-Klan, caused a run on that institution on Friday and Saturday of last week. The bank is located at 730 East 63rd Street and is patronized mainly by Irish, Jews and colored people. A leading real estate dealer of the city recently came to blows with 01son in consequence of his affiliation with the clan. Many of the colored depositor are much concerned over this affair.


Article from Phoenix Tribune, November 18, 1922

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Article Text

CHICAGOANS FORCE RESIGNATION OF KU KLUX BANKER (Special to The Tribune) CHICAGO, III., Nov. 17-The Ku Klux Klan is on the run for good and fair. Augustus E. Olsom, President of the Washington Park National Bank of this city, was forced to resign as the executive head of that institution because it was discovered that he was a member in good standing in the Klan. Tolerance, an antiKlan periodical, was the immediate cause of Mr. Olson's resignation. No one appears to be in position to divulge in just what manner the antisheet came into possession of the facts of his connection with the 100 per cent American organization. The exPresident, however, came clean, as the saying goes, and acknowledged his relationship but contended that he had been "lured" into doing so by misstatements of the character and true purposes of the organization. When the first reports of Olson's Klan connections came to ight, slight attention was given it by the bank officials. Later developments, though compelled their attention. What amounted to a run was being made on the bank. Up to this time long lines of depositors was the order of the average business day. Matters began to take on a new appearance. Withdrawals' began to take more than an appreciable place of deposits. Inquiries as to the reasons revealed that they were the protests of clients against the Klan activities of the President of the bank. Then it was that the officials "woke up" and demanded President Olson's resignation. His 'lure" defense failed to move the directors and there was nothing left for him to do but comply with what actually amounted to a demand for a severance of his official relations with the institution of which he had been the honored head for longer than a year.


Article from Capital Journal, November 21, 1922

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Article Text

KLANSMEN OF CHICAGO (Continued from Page One.) ficial mouthpiece of the American Unity-league, founded in Chicago last summer to combat the klan and its theories. As a result of these activities of the league it became known that Augustus E. Olson, one of the best known of the younger generation of south side business men, virtually had been forced out of the presidency of the Washington Park National bank. Bank President Assailed. At that time denial was made that there had been a run on the bank as a result of the announcement that Mr. Olson was an alleged member of the Ku Klux Klan. Investigation disclosed that several weeks ago Mr. Olson had been listed as a member of the klan by the official organ of the anti-klan organization. Thereafter he was bitterly assailed at meetings of anti-klan organizations and reports were circulated that those not in sympathy with klan activities had begun to withdraw their deposits in the Washington Park bank and redeposit them in other oanks. These withdrawals were reported to have run into the thousands of dollars, most of them being made by persons of Irish descent and by Jews. At a meeting of the directors i held a week ago last Monday it was decided that it was for the n best interests of all concerned f that Mr. Olson should step out, S and he did, whereupon the antiW klan organization marked a big 0 cross on its score card. Nevertheb less it is only fair to Mr. Olson to h state that he declared he resigned to preserve harmony in the community, adding: "I signed a petition for memG bership in the klan several months a W ago, but did not know that it was anything else than an ordinary in fraternal order." in A short time before this inciP dent Judge Joseph B. David, sitas lo ting in the superior court, barred klansmen from serving on juries I n his court. On September 18, resuming the hearing of common aw cases on his calendar, Judge te ex David questioned prospective jurors on their sympathy with the ly CO ecret organization, asserting that Ba members of the klan were preH udiced by their oath, and thereore ineligible as jurors. ce "I will not tolerate any man ge cr erving as a juror in any case bech or me who is affiliated with any an uch organization," said Judge tin David. "Members of the Ku Klux die Klan have confirmed opinions, La nd they cannot serve in this ourt room." th