4800. Drovers National Bank (East St Louis, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
10399
Charter Number
10399
Start Date
May 16, 1924
Location
East St Louis, Illinois (38.624, -90.151)

Metadata

Model
gpt-5-mini
Short Digest
ecacb250

Response Measures

Full suspension, Books examined

Other: Board closed bank; U.S. examiner placed in charge; receiver later appointed.

Receivership Details

Depositor recovery rate
82.6%
Date receivership started
1924-05-22
Date receivership terminated
1935-08-23
OCC cause of failure
Economic conditions
Share of assets assessed as good
41.5%
Share of assets assessed as doubtful
39.8%
Share of assets assessed as worthless
18.7%

Description

Multiple contemporary articles report a run culminating 16 May 1924 when the Drovers National Bank 'closed its doors' after large withdrawals. Causes cited include losses from the failure of two Missouri state banks (contagion) and a 'quiet five-day run' attributed to Ku-Klux Klan-inspired hostility. The board closed the bank and a U.S. examiner was placed in charge; later pieces reference a receiver (P. R. Karraker), indicating permanent closure/receivership. I corrected Drovers' punctuation (Drovers/Drovers') per sources but used 'Drovers National Bank' as provided.

Events (5)

1. May 27, 1913 Chartered
Source
historical_nic
2. May 16, 1924 Run
Cause
Local Banks
Cause Details
Large unexpected losses incurred through failure of two Missouri state banks, and articles also cite a quiet five-day run fueled by intense Klan-inspired feeling.
Measures
Board of directors closed the bank; a U.S. examiner was placed in charge; later a receiver (P. R. Karraker) was appointed.
Newspaper Excerpt
The Drovers National Bank closed its doors here today following a run which resulted in large withdrawals.
Source
newspapers
3. May 16, 1924 Suspension
Cause
Local Banks
Cause Details
Closure followed the run triggered by withdrawals after losses from two failed Missouri state banks and Klan-related depositor hostility.
Newspaper Excerpt
The Drovers National Bank of East St. Louis ... was closed by order of its board of directors. A United States examiner was placed in charge.
Source
newspapers
4. May 22, 1924 Receivership
Source
historical_nic
5. * Receivership
Newspaper Excerpt
P. R. Karraker, receiver of the Drover's National Bank ... (court actions in 1926 mention the receiver).
Source
newspapers

Newspaper Articles (5)

Article from The Daily Worker, May 17, 1924

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Article Text

Bank Where Missouri Packers Did Business Compelled To Close EAST ST. LOUIS, May 16.-The Drovers National Bank closed its doors here today following a run which resulted in large withdrawals. The Drovers National was a member of the Federal Reserve System and was capitalized at $200,000. It had deposits of $626,310 and resources of $1,052,009. Unexpected loses were incurred thru the failure of two state banks of Missouri. The Drovers National was established many years ago and has been the banking place of many of the packing, mule and horse dealing interests.


Article from The Monmouth Inquirer, May 22, 1924

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Article Text

KLAN IN BANK FAILURE Drovers National of East St. Louis Suspends St. Louis.-The Drovers National Bank of East St. Louis, commonly known as the Ku-Klux Klan "bank," one of the largest financial institutions in Southern Illinois, was closed by order of its board of directors. A United States examiner was placed in charge. Hatred, and intense feeling, inspired by the Klan, caused a quiet five-day run on the bank, resulting in closure.


Article from The Producers News, May 23, 1924

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Article Text

ANOTHER OLD BANK CLOSES DOORS EAST ST. LOUIS, May 16.-The Drovers National Bank closed its doors here today following a run which resulted in large withdrawals. The Drovers National was a member of the Federal Reserve System and was capitalized at $200,000. It had"deposits of $626,310 and resources of $1,052,009. Unexpected losses were incurred thru the failure of two state banks of Missouri. The Dovers National was established many years ago and has been the banking place of many of the packing, mule and horse dealing interests.


Article from Evening Star, March 28, 1925

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Article Text

BANK DEALS AIRED IN ENGLISH PROBE Witnesses Say Judge Used Bankruptcy Funds to Aid Son. By the Associated Press. ST. LOUIS, March 28.-Testimony Federal Judge English offered to funds of bankrupcies place that in two banks to further the interests of his son, Faris, and that such funds were placed in two other banks in which the judge was interested, was heard yesterday before the House judiciary subcommitfee of seven investigating the official acts of the jurist to determine whether his impeachment shall be recommended to Congress. The committee will meet tomorrow in East St. Louis, Ill., to examine backruptcy records in the office of the Federal district clerk. Judge English wanted his son Faris to have a remunerative position in the Union Trust Co. of East St. Louis, and to obtain the place for him, mentioned "bankruptcy accounts and things of that kind, which we can make it of advantage," testified Edward Eckerman, bond salesman and deposit solicitor for the Union Trust. Contract Introduced. That Faris be made cashier of the Drovers' National Bank of East St. Louis was provided in a contract for the purchase of 600 shares of that bank's stock introduced in evidence. In a letter abrogating that contract, also put into the record, C. D. Thomas, former referee in bankruptcy under Judge English stated that in negotiating the contract he was interesting his friends to "accommodate Judge English and myself, and the judge and all friends were depending absolutely on me to see that they did not get in wrong It was brought out that the contract resulted in Thomas buying 40 shares of Drovers' National stock, Faris English, 10. and 10 shares being purchased for Judge English. Whether Judge English knew of the purchase for his account, directed it, or permitted it, were points his defense fought for, although P. R. Karaker, receiver for the now defunct Drovers' National Bank, later testified he had not sued Judge English on a 100 per cent assessment against stockholders because the judge had paid the assessment. Judge English told him Thomas bought the stock in his name, said Karaker. William M. Acton of Judge English's defense, objected to statements that the judge had ratified ownership of the stock. Attorney Testifies. P. K. Johnson, a Belleville, III., attorney, told the committee that Judge English directed that $400,000 of the funds of the Southern Traction Company, which was in process of liquidation through action brought in Judge English's Federal court, be placed in the Belleville Savings Bank at 4 1/4 per cent interest. Instead $300,000 was so placed and $100,000 was put in the Merchants' State Bank without interest payments, Johnson testified. After Faris English left the Drovers National Bank to work for the rival bank, the Union Trust Company, testified H. R. Dooley, former president of the Drovers, bankruptcy deposits there dwindled from approximately $100,000 to $28,000. Except for the defense's contention that the case had not reached the actual bankruptcy stage when Thomas participated in it, another accusation against Judge English. that he permitted his referee in bankruptcy to practice law, virtually was disposed of today. The judge's defense admitted that Thomas appeared for the Hawkins Mortgage Company when Judge English sat instead of Judge Anderson in a step of the case at Indianapolis. It was contended the case was then not one of bankruptey, but rather the Hawkins Company was seeking an injunction to prevent dissipation of funds of various State receiverships.


Article from The Belleville News-Democrat, February 2, 1926

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Article Text

Default Judgment In Suit On Note Judgment by default for $1,388.80 was returned by qury in the CirCuit Court Tuesday morning in the suit of R. R. Karraker, receiver of the Drover's National Bank in East St. Louis, against George F. Garri son. The bank's receiver showed that Garrison had made only three payments on a promissory note for $1500. given on a loan which he made from the bank The $1,000 damage suit of Dan Borger against A E. Whiteside was dismissed by Judge Crow for want of prosecution. Borger had filed suit against Whiteside for damages done to his automobile in an acci dent on the Belleville-Freeburg road on September 1, last.