4978. Exchange Bank (Lockport, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
October 21, 1903
Location
Lockport, Illinois (41.589, -88.058)

Metadata

Model
gpt-5-mini
Short Digest
3a5767bb

Response Measures

None

Description

The Exchange Bank in Lockport, IL closed its doors Oct 21-22, 1903 and did not resume business. Articles describe the bank as 'closed'/'ceased business', small depositors affected, and later refer to it as 'defunct' with a receiver issuing a dividend; there is no clear contemporaneous description of a depositor run that precipitated the closure. The cause appears to be bank-specific insolvency/ losses (speculation and shortages).

Events (3)
1. October 21, 1903 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed because of insolvency/financial failure; capitalized $25,000 and deposits about $40,000; president and cashier implicated in speculation with bank funds and reported losses of $40,000 to $75,000.
Newspaper Excerpt
The Exchange bank, the only institution of its kind at Lockport, closed its doors today, throwing the town into a state of considerable excitement, as numerous small depositors are affected.
Source
newspapers
2. October 22, 1903 Other
Newspaper Excerpt
C. H. Bacon, president of the Exchange Bank, which ceased business in Lockport yesterday, is reported at the point of death. Heart trouble and excitement over the failure are the causes.
Source
newspapers
3. * Receivership
Newspaper Excerpt
The condition of the bank will be made known in a statement to be issued by the bank inspector. (Later described as defunct with a receiver who declared a dividend.)
Source
newspapers

Newspaper Articles (7)
1. October 21, 1903 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, October 21, 1903

Click image to open full size in new tab

Article Text

comptroller of the currency to take charge. "Two weeks ago our deposits exceeded four million dollars and-until yesterday, 'when the floods came, we had maintained our full legal reserve. "When our doors elosed we had approximately $1,900,000 of deposits to secure, which we had on hand in cash, time and demand loans and other good securities, about $4,600,000. This was our condition after having paid out to depositors in addition to current receipts and disbursements over $2,000,000 within 15 days in a period of generally strenuous financial conditions." Washington, Oct. 21.-The acting comptroller of the currency was advised last night that the Federal National bank of Pittsburg would not open for business this morning. He appointed National Bank Examiner John B. Cunningham, receiver. No details are known at the comptroller's office as to the causes which led to the failure. The bank was chartered November 16, 1901, with a capital stock of $2,000,000. Joseph A. Langfitt is president and George W. Eisenbes cashier. The following is a statement of the bank's resources and liabilities, as shown by the last report of condition to the comptroller of the currency, September 9. 1203: Resources-Loans and discounts, $5,036,072; overdrafts, $463; United States bonds, $806,652; stocks and securities, etc., $17,500; real estate, $26,849; due from banks-and bankers, $1,130,592; cash and cash items, $675,652. Total, $7,693,722. Liabilities-Capital stock, $2,000.000; surplus and undivided prefits, $80.669; circulation, $700,000; due to banks and bankers, $2,375,552; unpaid dividends, $5.448; deposits, $1,932,107; bills payable, $100,000. Total, $7,693,782. JOLIET BANK CLOSES. Joliet, Ill., Oct. 21-The Exchange bank, the only institution of its kind at Lockport, closed its doors today, throwing the town into a state of considerable excitement, as numerous small depositors are affected. The bank was capitalized at $25,000. and the deposits are thought to be in the neighborhood of $40,000. The condition of the bank will be made known in a statement to be ISsued by the bank inspector. C. H. Bacon, former mayor and state senator, is president of the bank,

2. October 22, 1903 Ottumwa Tri-Weekly Courier Ottumwa, IA
Article from Ottumwa Tri-Weekly Courier, October 22, 1903

Click image to open full size in new tab

Article Text

FEDERAL NATIONAL BANK OF PITTSBURG, PA., IS FORCED TO THE WALL. ITS STOCK WAS RAIDED 4 The Failure of the Institution Has Been Regarded As Possible for the Past Two Days as Result of Action on Board of Trade. Pittsburg, Pa., Oct. 21.-Notice was posted on the doors of the Federal National bank this morning and announcing that it was closed by order of the comptroller of the currency, who appointed Bank Examiner Canningham as receiver. Raid on Stock. The closing of the bank has been within possibilities for the past two days as the institution's stock has been subjected to sharp declines and a determined raid on the Pittsburg stock exchange this week. Report Was Good. The bank was chartered in November, 1901, with a capital stock of $2,000,000. Joseph A. Langfitt is presi-dent and George W. Eisenbest cashier. In the statement to the comptroller in September the bank showed deposits of $1,932,000; cash on hand. $667,000; due from other banks, $1,131,000; loans and discounts, $5,036,000. Effect Will Be Local. Pittsburg, Pa., Oct. 21.-In a general way banking officials of the city feel confident that the Federal Nation: al bank's troubles will be confined to itself and will not disturb any other financial institution. S Failure in Illinois. Joliet, Ill., Oct. 21. .-The Exchange bank of Lockport closed its doors tot day, throwing the town into a state of considerable excitement as numerous small depositors were affected. The S bank was capitalized at $25,000 and e the deposits are thought to be in the neighborhood of $40,000. C. H. Bacon the former mayor and state senator, was president.

3. October 23, 1903 The St. Louis Republic Saint Louis, MO
Article from The St. Louis Republic, October 23, 1903

Click image to open full size in new tab

Article Text

C. H. BACON CRITICALLY ILL. President of Suspended Bank Reported at Death's Door. Joliet, III., Oct. 22.-Charles H. Bacon, president of the Exchange Bank, which ceased business in Lockport yesterday, is reported at the point of death. Heart trouble and excitement over the failure are the causes. Investigation will be made regarding deeds by which President Bacon transferred real estate to his wife. There is nothing definite in talk of criminal prosecution.

4. October 24, 1903 Willmar Tribune Willmar, MN
Article from Willmar Tribune, October 24, 1903

Click image to open full size in new tab

Article Text

Federal National Complies with Order of Comptroller of the Currency. A RECEIVER IS PLACED IN CHARGE OF THE INSTITUTION Raid on Stock of the Concern One of the Principal Causes-The Trouble Thought to Be Confined to the One Bank-Said That Depositors Will Lose Nothing. Pittsburg, Pa., Oct. 22.-The doors of the Federal national bank were not opened for business Wednesday morning. The following notice was posted in explanation: "Closed by the authority of the comptroller of the currency. John B. Cunningham, receiver." Some such action has been within the possibilities for the past two days, forecasted by the determined raid upon the institution's stock on the Pittsburg stock exchange. The positive statements, however, of the president, J. A. Langfitt, to the effect that the bank was not in need of money, and that its losses would not affect its capital or surplus, did much toward allaying distrust on. the part of its depositors, thus preventing a run. The closing of the bank was decided upon at a meeting of the directors Tuesday night. The bank is a United States depository and reported on hand September 9 the $50,000 of United States deposits. The stock of the company has been subjected to sharp declines on the Pittsburg exchange this week. On Monday the stock sold down from 115 to 85, but was forced up again to 101. All day Tuesday it sagged and the closing quotations were 80 bid and 85 asked, a number of transactions having been made at 80. The course of the stock has attracted much attention, and numerous adverse reports were in circulation, but they were promptly and fully denied by President J. A. Langfitt. He stated Tuesday evening that the bank had suffered only one possible loss, that of $140,000, for which it held notes of the Eastern Tube company ofZanesville, O. Thatcompany is in the hands of a receiver and a plan of reorganization is being worked out, he said, and the bank's loss on that account may be small. In a general way banking officials of the city feel confident that the Federal national bank's troubles will be confined to itself and will not disturb any other financial institution. Receiver Cunningham thinks it may be two or three days before he can make a statement of the bank's condition. No Cause for Alarm. Robert S. Smith, president of the Union national bank and president of the Pittsburg Clearing House association, said: "There is not the slightest reason for any alarm, and if people will only keep cool there will be no trouble. I was assured Tuesday night by President Langfitt that every depositor would get every dollar due and I believe the statement. The bank has some excellent assets and there seems to be no reason why depositors should not get all coming to them. It is possible that some small country banks which do business through the Federal national may be temporarily embarrassed, but even at that it will be only temporary." Bankers and brokers are of the opinion that the closing of the bank until its affairs can be adjusted was the best thing to do under the circumstances. The talk about the bank affairs has been a drag to the market, and the belief is that the action of the directors will have a good effect on the general situation rather than an injurious effect. Statement Regarding Bank. Washington, Oct. 22.-The bank was chartered November 16, 1901, with a capital stock of $2,000,000. Joseph A. Langfitt is president and George W. Eisenbes, cashier. The following is a statement of the bank's resources and liabilities asshown by the last report of condition to the comptroller of the currency, September 9, 1903: Resources - Loans and discounts, $5,036,072; overdrafts, $463; United States bonds, $806,652; stocks and securities, etc., $17,500; real estate, $26,849; due from banks and bankers, $1,130,592; cash and cash items, $675,652. Total, $7,693,782. Liabilities-Capital stock, $2,000,000; surplus and undivided profits, $580,669; circulation, $700,000; due to banks and bankers, $2,375,552; unpaid dividends, $5,448; deposits, $1,932,107; bills payable, $100,000. Total, $7,693,782. Lockport, III., Bank Fails. Joliet, Ill., Oct. 22.-The Exchange bank, the only institution of its kind at Lockport, closed its doors Wednesday, throwing the town into a state of considerable excitement, as numerous small depositors are affected. The bank was capitalized at $25,000 and the deposits are thought to be in the neighborhood of $40,000. The condition of the bank will be made known in a statement to be issued by the bank inspector. C. H. Bacon, former mayor and state senator, is president of the bank. Tenders Resignation.

5. October 24, 1903 Willmar Tribune Willmar, MN
Article from Willmar Tribune, October 24, 1903

Click image to open full size in new tab

Article Text

is in the hands of a receiver and a plan of reorganization is being worked out, he said, and the bank's loss on that account may be small. In a general way banking officials of the city feel confident that the Federal national bank's troubles will be confined to itself and will not disturb any other financial institution. Receiver Cunningham thinks it may be two or three days before he can make a statement of the bank's condition No Cause for Alarm. Robert S. Smith, president of the Union national bank and president of the Pittsburg Clearing House association, said: "There is not the slightest reason for any alarm, and if people will only keep cool there will be no trouble. I was assured Tuesday night by President Langfitt that every depositor would get every dollar due and I believe the statement. The bank has some excellent assets and there seems to be no reason why depositors should not get all coming to them. It is possible that some small country banks which do business through the Federal national may be temporarily embarrassed, but even at that it will be only temporary." Bankers and brokers are of the opinion that the closing of the bank until its affairs can be adjusted was the best thing to do under the circumstances. The talk about the bank affairs has been a drag to the market; and the belief is that the action of the directors will have a good effect on the general situation rather than an injurious effect. Statement Regarding Bank. Washington, Oct. 22.-The bank was chartered November 16, 1901, with a capital stock of $2,000,000. Joseph A. Langfitt is president and George W. Eisenbes, cashier. The following is a statement of the bank's resources and liabilities shown by the last report of condition to the comptroller of the currency, September 9, 1903: Resources - Loans and discounts, $5,036,072; overdrafts, $463; United States bonds, $806,652; stocks and securities, etc., $17,500; real estate, $26,849; due from banks and bankers, $1,130,592; cash and cash items, $675,652. Total, $7,693,782. Liabilities-Capital stock, $2,000,000; surplus and undivided profits, $580,669; circulation, $700,000; due to banks and bankers, $2,375,552; unpaid dividends, $5,448; deposits, $1,932,107; bills payable, $100,000. Total, $7,693,782. Lockport, III, Bank Fails. Joliet, Ill., Oct. 22.-The Exchange bank, the only institution of its kind at Lockport, closed its doors Wednesday, throwing the town into a state of considerable excitement, as numerous small depositors are affected. The bank was capitalized at $25,000 and the deposits are thought to be in the neighborhood of $40,000. The condition of the bank will be made known in a statement to be issued by the bank inspector. C. H. Bacon, former mayor and state senator is president of the bank. Cabinet Tenders Resignation. Rome: Oct 22-At a ministerial

6. October 29, 1903 Iron County Register Ironton, MO
Article from Iron County Register, October 29, 1903

Click image to open full size in new tab

Article Text

B On the 20th. Gov. Dockery of MisDE souri offered a reward of $200 for the XE arrest and conviction of the murderers 9A of Mrs. Kate Lauman, in St. Louis IC county. ba The number of yellow fever cases M in Laredo, Tex., were given, on the 22d, in the official bulletin, as follows: New q7 [4] cases, 12; deaths, 1. Total cases, 497; total deaths, 39. IC The condition of Senator Foraker b who was taken ill at Sandusky, O., on 10 the 21st, was reported much improved 11 on the 22d. His physician stated that p the patient would soon leave his bed. 4 IT The convention of the Army and Navy union of the United States came 1] to a close at Pittsfield, Mass., on the .I 23d, with the election of Hugh H. Hen7 ry, of Weehawken, N. J., as national 9 commander. A 8 Notice was posted at the Youngstown B (Ohio) works of the Carnegie Steel Co., on the 23d, that operations would be M resumed on the 25th. The works have p been closed for some time. About 5,000 BI men were affected. a n Charles Kratz, the fugitive from St te Louis, under indictment for bribery and perjury, was arrested, on the 22d, II and is held for extradition, under orders from the federal government, at 8 q the City of Mexico. a On the 22d, Charles H. Bacon, presi11 dent of the Exchange bank, which a ceased business in Lockport, III., on the e 21st, was reported at the point of death. B Heart failure and excitement over the failure was given as the cause. O q The coroner's jury, at Normandy, 7 Mo., on the 21st, returned a verdict 0 finding that Mrs. Kate Lauman came 8 to her death at the hands of a person f or persons unknown to the jury. It further declared that robbery was the f motive. M Z Samuel H. Decker, for 36 years a u doorkeeper of the capitol, in WashS ington, D. C., died on the 21st. At I the battle of Perryville, October 8, 1862, q both his arms were shot off. Shortly after that he was appointed a capitol H doorkeeper for life. u u By the general shut-down of the S Amalgamated Copper Co. properties at I Butte, Mont., on the 23d, from 13,000 n to 15,000 men were directly thrown out of employment, and others were indirectly affected, SO that the grand total reached 20,000 men. I 11 The business portion of Redwood 2 Falls, Minn., suffered a $130,000 loss 1 by fire, on the 22d, which started 111 Hotel Francois. The guests of the II hotel lost all of their personal belong e ings, and some of them barely esI caped with their lives. V d Police Captain Samuel J. Boyd, indicted, on the 20th, by the St. Louis federal grand jury on 30 counts, charging participation in the naturalization frauds, was suspended, on the 21st. Chief Kiely appointed Capt. E. P 1 Creecy to succeed Capt. Boyd. $ At a meeting of the passenger rep resentatives of the western lines, held in Chicago, on the 21st, it was decided that a rate of $50 from Chicago to the Pacific coast should not be made again for any convention or gathering, and a minimum rate of $62.50 was agreed upon. Thomas Barclay of Paris and Lon don, formerly president of the British chamber of commerce, who was in -xo 24 the uo "D 'CI Mashington, pressed himself as favorable to the renewal of the efforts to secure an arbitration treaty between the United States and Great Britain. Postmaster-General Payne, on the 21st, removed from office Michael W. Louis, superintendent of supplies of the post office department; Louis Kempner, chief of the registry division of the third assistant postmaster-general's office, and C. G. Terry, a clerk in the post office department. W. H. Smith, in jail at Basin, Wyo., confessed, on the 19th, to complicity in mobbing the jail at Basin last July when Gorman and Walters, two murderers, were shot and killed by the mob and Deputy Sheriff Prince killed and Deputy Mead was wounded. Smith

7. October 1, 1904 Rock Island Argus Rock Island, IL
Article from Rock Island Argus, October 1, 1904

Click image to open full size in new tab

Article Text

JURY FREES CASHIER BUTLER Official of Defunct Lockport Bank Acquitted After Long Deliberation. Joliet, Ill., Oct. 1.-A. H. Butler, former cashier of the defunct Exchange bank at Lockport, was acquitted yesterday. The trial was notable from the fact that the defense offered no testimony, relying solely on legal arguments. The charge against Butler was that he had received deposits, knowing the bank to be insolvent, and it was proved that both Butler and the president of the concern, C. H. Bacon, had speculated with the bank's funds on the Chicago Board of Trade. There are other indictments against both men, but it is believed now that convictions are improbable. The bank, which had 400 depositors, failed a year ago for $40,000 to $75,000. One dividend of 25 per cent has been declared by the receiver.