Mahomet State Bank - Mahomet, IL

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: February 1, 1929*
Location: Mahomet, Illinois (40.195, -88.404)

Metadata

Model: gpt-5-mini
Short Digest: 4a836b19

Response Measures

None

Description

The bank was declared insolvent and closed in February 1929; article (Mar 13, 1930) describes depositors asking a judge to appoint a receiver. No run is described. Cause is bank-specific insolvency/fraud allegations.

Events (3)

1. February 1, 1929* Suspension

Cause: Bank Specific Adverse Info
Cause Details: President declared the institution insolvent; agreement transferring assets and liabilities to First National of Champaign; allegations of fraud and tampering with accounts.
Newspaper Excerpt: Declared Insolvent In February. 1929, the president of the bank, H. R. Hurley, declared the institution insolvent ... The bank then closed its doors
Source: newspapers

2. March 13, 1930 Other

Newspaper Excerpt: DEPOSITORS ASK BOGGS TO NAME BANK'S RECEIVER ... two depositors filed suit yesterday ... asking Judge Boggs to appoint a receiver to take charge of the insolvent institution and force stockholders to partly repay depositors.
Source: newspapers

3. * Receivership

Newspaper Excerpt: Charging fraud in the operations of the defunct Mahomet State bank and asking Judge Boggs to appoint a receiver to take charge of the insolvent institution ... Oscar Nelson, state auditor, was charged with having failed in his duty ... by failing to appoint a receiver within a year of the bank's closing.
Source: newspapers

Newspaper Articles (1)

1. March 13, 1930 The Daily Illini Urbana, IL

Article from The Daily Illini, March 13, 1930

Click image to open full size in new tab

Article Text

DEPOSITORS ASK BOGGS TO NAME BANK'S RECEIVER Charge® Fraud in Operations of Mahomet Institution; Cite Negligence of Auditor Charging fraud in the operations of the defunct Mahomet State bank and asking Judge Boggs to appoint a receiver to take charge of the insolvent institution and force stockholders to partly repay depositors, two depositors filed suit yesterday in Circuit Clerk Blaine's office. The declaration of complainants, Collin Buchan and W. J. Parnell, stated $75,000 is owed to depositors by bank, and that the only hope of ever getting a cent of this back was through forcing stockholders to pay again an amount equal to the value of their stock. According to law, a receiver is permitted to order this repaying, but even if It does occur, depositors will be refunded only 37 cents the dollar. Oscar Nelson, state auditor, was charged with having failed in his duty as state auditor by failing to appoint a receiver within a year of the bank's closing. Declared Insolvent In February. 1929, the president of the bank, H. R. Hurley, declared the institution insolvent and entered into an agreement with the First Nationat bank of Champaign. By this contract, the Mahomet company was to turn over $1,545.93 in cash and $175,863.26 in bills receivable to the First National. In return the Champaign bank agreed to guarantee the correctness of all depositors' accounts and to assume deposit liabilities of $108,712.71. The local institution also took over debts amounting to $29,011.96 in time certificates and bills payable to the First National bank of Champaign for $23,360. The bank then closed its doors and little has been done about it since. The two complainants, Buchan and Parnell, went to see how much money they had in the insolvent bank and were told that they had $14.93 and $8.49 respectively Last December the two appeared before Judge Boggs in circuit court and proved that Buchan had $4,911.75 in the bank when it closed. Parnell also proved that he had $1,300 deposited when the crash occurred. Judge Boggs granted them judgments for the amounts. The two now declare that someone secretly tampered with their accounts and with the accounts of other depositors to the amount of $50,000. The declaration further alleged that all the real estate belonging to the bank had been appropriated by the former president, Mr. Hurley. As a final reason for asking Judge Boggs to appoint receiver, the complainants state that a large number of the depositors are planning to commence suits against the bank for their money and that all of these suits would be prevented if somebody were put in charge of the defunct institution. It was stated that these suits would clog up the local court for a long time and that the costs would run into staggering amounts. The names of the defendants to the suit, all of them stockholders in the Mahomet company, and the number of shares which they own are: H. R. Hurley, 25 shares; Martin K. Busey, 30; Mathey W. Busey, Jr., 10: M. Herriot, 10: William Blue, 10: George W. Carter. 10: F. O. Jahr, 35 W. B. Lyons, 35: F. E. Davis, 15: John R. Rittenhouse, 20: Ella D. Barber, 30; Mabel G. Herriot and Elmer D. Pittman (executors for J. C. W. Pittman, deceased), 10; and J. B. Abbott, 10 shares. Mathey W. Busey, Jr., is now living at Eagle Rock, Calif., and Ella D. Barber is residing at Miami Beach, Fla., but the others are all in this section of Illinois.