Peoples State Bank - Maywood, IL

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: February 6, 1930
Location: Maywood, Illinois (41.879, -87.843)

Metadata

Model: gpt-5-mini
Short Digest: 1f238dc9

Response Measures

None

Description

The articles describe the People's State Bank of Maywood being closed by the state auditor and subsequent criminal charges against the president and cashier for operating while the bank was insolvent and misappropriating funds. There is no description of a depositor run; the closure appears regulatory and due to bank-specific malfeasance, and the bank did not resume operations (later criminal trials and sentences are described). Closure occurred in February 1930 (newspapers Feb 15–19, 1930).

Events (3)

1. February 6, 1930 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank closed by state auditor after discovery of insolvency, misuse of deposits, and alleged embezzlement by president and cashier
Newspaper Excerpt: the closed People's State Bank of Maywood ... the bank was closed by the state auditor's office nine ago
Source: newspapers

2. February 15, 1930 Other

Newspaper Excerpt: Missing Official Surrenders to Police of Chicago Suburb. ... the 25 year old of the closed People's State Bank of Maywood, she awaited grand jury action ... charges receiving deposits while the bank insolvent. Elmer Langguth, 35 year old president ... surrendered ... disclosed the results of his inquiry into the bank's affairs ... Roche said Langguth purchased 500 shares ... he had used township funds to purchase the bank and later money from the bank to repay the county. ... Miss Lindgren ... built $35,000 home ... built with money furnished by Langguth.
Source: newspapers

3. April 21, 1932 Other

Newspaper Excerpt: Defense Calls Her Victim of Elmer Langguth. ... the Peo ples State bank of Maywood ... Langguth, president of the bank who is now serving term of to 10 years in the penitentiary. ... Miss Lindgren is being tried on of making false state[ments] to bank examiners.
Source: newspapers

Newspaper Articles (5)

1. February 15, 1930 The Shreveport Journal Shreveport, LA

Article from The Shreveport Journal, February 15, 1930

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Article Text

CASHIER HELD FOR Missing Official Surrenders to Police of Chicago Suburb. (By the Associated Feb. 20, Miss Laverne Lindgren was ing kitchen appliances; today, 25 year old of the closed People's State Bank of Maywood, she awaited grand jury action under bonds $10,000 in charges ceiving deposits while the bank insolvent. Elmer Langguth, 35 year old president bank under bonds $100,000 on the same charges. He is under family surveillance in sanitarium suffering The pretty cashier, missing since the bank was closed by the state auditor's office nine ago, surrendered to authorities in Maywood, suburb, last night. Simultaneously, Patrick Roche, investigator for the state's attorney's office, disclosed the results of his inquiry into the bank's affairs. In 1925, Langguth was elected tax collector for township: soon afterward the People's Bank was organized. Roche said Langguth purchased 500 shares of stock in the bank $110 each, and more $130 each; this later voted to make himself president. Roche said Langguth told him he had used township funds to purchase the bank and later money from the bank to repay the county. Soon after the bank opened, Miss Lindgren was given position stenographer; within short time she made cashier. Later. Roche was told, she built $35,000 home in living there with her mother. This, Roche said, was built with money furnished by Langguth. He added that bank chased two cars for the cashier. During the four years he was tax Langguth's fees earned him approximately $100,000; today, he said to be penniless.

2. February 19, 1930 Lincoln Journal Star Lincoln, NE

Article from Lincoln Journal Star, February 19, 1930

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Article Text

BANKERS ARRESTED Three More Employes Held in Maywood, III., Affair. lapse of the People's State bank that revealed spendthrift mance between Egmer P. Langguth, president, and Miss Laverne Lindgren, the twenty-five year old waitress who catapulted to the

3. February 19, 1930 Times Union Brooklyn, NY

Article from Times Union, February 19, 1930

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Article Text

EUROPE FAVORS FARM LOANS Club, to British agriculture. TRUMBULL LIMPS PUBLISHERS IN POLITICS 19 with aid newspaper Trumbull joined England's address the other publisher, proposals County Foreman's Club party which an at Newark, airport Monday. politicians crisis of Great Britain's national exisCOOLIDGE JOINS CLUB ANGELES, 19 his left plate ham eggs Angeles rite is part of the ritual ROBINS IN WEST CHICAGO, of warmer home the Middle and West to-day. Weather that have stood years were broken. At Kansas City the mercury rose to degrees. 3 MORE IN BANK CASE MAYWOOD, III., Feb. Collapse of the People's Bank. which Elmer and the old cashier, and in charges of against about the arrest of three other bank to-day. AINT IN BURIAL ERROR CHICAGO, Feb. 19 a widows fainted military funerals country towns 600 miles apart caskets of grasped hope teleexplained an error in shipments. DINE AT RUN ON BANK FORT WORTH, Feb. a the the National Bank of this city. served and to stood lines to withdraw approximately $300,000 during scare. ASK POLICE PROBE BOSTON, 19 gation of the Police Department has by jury The Massachuof the of Oliver B. Garrett, head of the police liquor squad. 1,929 BORN IN 1929 EVANSTON, III., Feb. (U Dr. John W. H. Pollard, health missioner, does not have to refer records to tell how born here in 1929. There were 1,929. AUBURN MEN DOOMED N. Feb. 19 Claude Udwine, William Force and Thomas, Auburn Prison convicts, who last week were found guilty of the murder of Henry Sullivan, were sentenced to die in the electric chair at Sing Sing during the week of March $1,250,000 ALIMONY DETROIT, Feb. 19 Tuttle, the Kresge Co., to-day was under court to 250,000 settlement on his Tuttle, her divorce on the ground of cruelty. RAID HITS BUSINESS PHILADELPHIA, Feb. 19 threat to transfer convention Atlantic City because of the possibility police hotels the Philadelphia Hotel to against "endangering the city's CHICAGO FUND DRIVE Feb. 19 millionaire minute rallied today at Chicago's for volunteers to raise DE RIVERA TIME Feb. of Spain, not return for at to-day. ments in Madrid. FINN LOAN CONFIRMED Feb. -Officials the reports loan French banks Finnish Codeclaring that this the re-esfinancial situation. POLITICS IN ROMANCE Feb. 19 Politics may have ruined what was once glowing marPrincess Charlotte, ter of Prince Louis, who the Monaco, and her Pierre. RUSSIA MOSCOW, Feb. 19 a of private trade and and the complete Russia, coupled with abolition religious forms, which the Soviets rushing this nation, leaders said to-day. REPAIRS FOR ST. PAUL'S Paul's edifice crowning Ludgate Hill, saved the nation. Repairs, Canon Alexander announced to-day, can begin at once. FIGHT ENDS SESSION SOFIA Bulgaria, Violent fighting between and deputies, brought the session of the National Assembly. LOYALISTS ROUT REBELS LONDON (U Loyalist a heavy defeat on rebels trying to take Nanking, China, Hongkong dispatch. The battle resulted in rebel loss of 1,000 men and 2,000 rifles. BERLIN CAB STRIKE ENDS Feb. 19 strike of taxicab public for nearly and in clashes the police, was ended to-day through official CHAUTEMPS IN CRASH (U Chautemps. radical leader, suggested as the likely first choice President Doumergue for the Premiership, narrowly escaped injury in an automobile accident.

4. February 19, 1930 Lincoln Journal Star Lincoln, NE

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Article Text

MORE BANKERS ARRESTED Three More Employes Held in Maywood, Ill., MAYWOOD lapse of the People's State bank that revealed spendthrift mance between Egmer Langguth, president, and Miss Laverne Lindgren, the twenty-five year old waitress who catapulted the

5. April 21, 1932 Chicago Tribune Chicago, IL

Article from Chicago Tribune, April 21, 1932

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BANK CASE JURY GETS 2 PICTURES OF MISS LINDGREN Defense Calls Her Victim of Elmer Langguth. CRIMINAL COURT. Frank Novak and Arthur Matusick, robbery, sentenced to 20 years each in Pontiac Ennis Fair and Barnard Turner, robbery, sentenced year to life each in the penitentiary by Judge Philip L. Sullivan. A jury, which was selected in Judge Prystalski's court yesterday after noon, alternately heard Miss Lavernge Lindgren, former cashier of the Peo ples State bank of Maywood, described by the prosecution as a deliberate bank wrecker and by the defense as the innocent victim of Elmer P. Langguth, president of the bank who is now serving term of to 10 years in the penitentiary. The opening state ments were made by Assistant State's Attorney Charles J. Lounsbury for the state and by Attorneys Benedict Short and Joseph Z. Wilmer for the defense. Miss Lindgren is being tried on of making false state. to bank examiners. The jury was completed fter nearly two days of questioning by the attorneys. The state pledged the jurors "not to allow the charm or good looks of the defendant to them in their verdict. They are mostly married men. The defense attorneys asked the jurors not to visit the wrath of the for the many bank failures on the head of the defend. ant. Will Prove Statement False. Prosecutor Lounsbury said the state would prove that the statement as made to the bank examiners just before the bank closed two years ago was false in many Overdrafts not listed, and the statement of assets was also falsified, the said. We will prove that Miss Lindgren went into the bookkeeping department and told the bank employés that the bank are coming and It is necessary to pull some sheets from the ledger to make the books balance said the prosecutor. Attorney Short told the jurors that his client was educated to be teacher of household economy and that she had no banking experience or knowledge when Langguth gave her job in the bank and after four years' of service promoted her to cashier. She knew nothing, he said, of Langguth's overdrafts or of the juggling of the books. Will Take the Stand. She is going to take the witness stand and tell you all about it, said the defense attorney. She left the bank a. good deal poorer than she was when she entered its employ The state called several bank examiners as before court adjourned in the evening after an overtime Judge Prystalski drew a laugh from the crowded courtroom when the last juror accepted Max Wolff, 11239 Longwood drive, came hatless and coatless into the jury box. He told the judge he had left his hat and coat on & bench You'd better get them." said the judge. "We are not responsible for anything here. The judge indicated that he would sustain the defense contention that any social relationship between Langguth and Miss Lindgren was not material in the present trial. Prosecutor Charles J. Mueller said he would argue the question later.