5159. Dime Savings & Trust Company (Peoria, IL)

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: trust company
Start Date: October 7, 1905
Location: Peoria, Illinois (40.694, -89.589)

Metadata

Model: gpt-5-mini
Short Digest: 268a40b9

Response Measures

Accommodated withdrawals, Partial suspension

Description

The Dime Savings & Trust Co. experienced deposit withdrawals (a run) immediately after the Peoria National Bank closed following the Dougherty investigation. Officials paid depositors as presented but posted the 60-day sign (sixty days' notice) on Oct 7; by Oct 9 the bank was reported carrying on business as usual. Cause of the run traced to the closure/distress of the Peoria National (local bank shock related to Dougherty scandal).

Events (3)

1. October 7, 1905 Run

Cause: Local Banks
Cause Details: Depositors flocked to the Dime Savings after news that the Peoria National Bank had closed amid the Dougherty investigation; panic from the local bank's closure triggered withdrawals.
Measures: Paid depositors as they asked for their money; officers announced they had plenty of funds to meet all demands.
Newspaper Excerpt: The Dime Savings bank, in which Dougherty is a large stockholder, experienced a small run today, but paid all depositors.
Source: newspapers

2. October 7, 1905 Suspension

Cause: Local Banks
Cause Details: Following heavy withdrawals after the Peoria National Bank closure, officials posted the sixty-day sign for payment of savings deposits (partial suspension under 60-day rule).
Newspaper Excerpt: At 1 o'clock the officials posted the sixty days' notice.
Source: newspapers

3. October 9, 1905 Reopening

Newspaper Excerpt: Calm has succeeded the financial storm that stirred the city last week, and ended with the incipient run on the Dime Savings Bank. This morning the bank is carrying on its business as usual.
Source: newspapers

Newspaper Articles (12)

1. October 7, 1905 Evening Star Washington, DC

Article from Evening Star, October 7, 1905

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THE PEORIA SHORTAGE NATIONAL BANK WILL CLOSE UP ITS BUSINESS. PEORIA, III., October 7.-"We had several offers from banks who wished to take over our business, but our directors, after carefully considering the matter, decided that the best thing to do would be to liguidate under the law. Every, depositor will be paid in full, and I am confident that the stockholders will receive a good return." This is the statement of S. O. Spring, cashier of the Peoria National Bank, which decided last night to close its doors as the result of the Dougherty investigation. Early today large numbers of depositors appeared at the bank, but the doors were closed, and it was announced that they would not be open again until a receiver had been appointed. The Dime Savings Bank, in which Dougherty is a large stockholder, experienced a small run today, but paid all depositors as they asked for their money. The officers announced that they have plenty of funds to meet all inquirers. The controller of the currency has received a telegram announcing that the Peoria National Bank of Peoria, Ill., has closed its doors upon the order of its directors.

2. October 7, 1905 Evening Times-Republican Marshalltown, IA

Article from Evening Times-Republican, October 7, 1905

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RUN ON PEORIA BANK. Depositors Find Doors of the National Closed-Savings Bank Safe. Peoria, Ill., Oct. 7.-Early today a large number of depositors appeared at the Peoria National Bank, but the doors were closed, and the Dime Savings Bank, in which Dougherty is a large stockholder ,experienced a small run today, but out paid all depositors. The directors announce that they have plenty of funds to meet all demands.

3. October 7, 1905 The Guthrie Daily Leader Guthrie, OK

Article from The Guthrie Daily Leader, October 7, 1905

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Article Text

SUFFER THROUGH DOUGHERTY (By Associated Press.) Peoria, Oct, 7.-The Peoria National bank closed its doors today as the result of the Dougherty investigation last night, The Dime Savings bank, In which Dougnerty is a harge stockholder. ex.. perienced a run today, but paid all depositors,

4. October 8, 1905 Los Angeles Herald Los Angeles, CA

Article from Los Angeles Herald, October 8, 1905

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PEORIA NATIONAL BANK CLOSES ITS DOORS ACTION RESULT OF DOUGHERTY INVESTIGATION Cashier Declares All the Depositors Will Be Paid in Full and That the Stockholders Also Will Receive a Good Return By Associated Press. PEORIA, Ill., Oct. 7.-The Peoria National bank did not open its doors today. C. H. Bosworth has been appointed receiver and will take charge of the bank's affairs pending liquidation. This is the result of the action of the board of directors at a midnight meeting: "We had several offers from banks who wished to take over the business, but our directors, after carefully considering the matter, decided that the best thing to do would be to liquidate under the law. Every depositor will be paid in full, and I am confident the stockholders will receive a good return." This is the statement of R. O. Spring, cashier of the Peoria National bank, which closed its doors as the result of the Dougherty investigation last night. The Dime Savings bank, in which Dougherty is a large stockholder, experienced a small run today, but depositors were paid as they asked for their money. The officers announced that they have plenty of funds to meet all inquiries. When the news that the Peoria National bank had been closed had spread, depositors began to flock into the Dime Savings bank, in which Dougherty is a heavy stockholder, and by 12 o'clock the bank was experiencing a heavy run. At 1 o'clock the officials posted the sixty days' notice. It is announced that the bank would be kept open until depositors are satisfied. In financial circles it is not thought that the bank is in danger as it has $400,000 cash on hand.

5. October 8, 1905 Omaha Daily Bee Omaha, NE

Article from Omaha Daily Bee, October 8, 1905

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ILLINOIS BANK IS CLOSED Directors of Peoria National Decide that Institution Shall Retire from Business. WASHINGTON, Oct. 7.-The comptroller of the currency has received a telegram announcing that the Peoria National bank of Peoria, III., has closed its doors upon the order of its directors. PEORIA, III., Oct. 7.-The Peoria National bank did not open its doors today. C. H. Bosworth has been appointed receiver and will take charge of the bank's affairs pending liquidation. This is the result of action taken by the board of directors at a midnight meeting. When the news that the Peoria National had been closed had spread depositors 'beban to flock into the Dime Savings bank in which Dougherty is a heavy stockholder, and by 12 o'clock the bank was experiencing a heavy run. At 1 o'clock the building was besieged by anxious depositors and officials posted the sixty day sign. They announced that the bank was to be kept open until all depositors are satisfied. In financial circles it is not thought that the bank is in danger as it has $500,000 cash in hand. Shortly after 11 o'clock this forenoon Mr. Dougherty came from the Dime Savings bank, where he had been closeted with Mr. O. J. Balley and other gentlemen concerning the securities which he had deposited. He went diréctly to the school board office in the Library building, where he talked freely about some phases of his affairs. "Mr. Dougherty, have you any statements you would like to make concerning this affair and its developments?" "I don't know what more I can say than what has already appeared," he replied. "I see by the papers that I am crazy (smilingly) and am broken down. I did not know it myself." "The putting up of securities is construed as a confession by many people, Mr. Dougherty," was suggested. "All I have to say in that regard is simply this: In putting up the securities I have in Mr. Bailey's hands, it was not for the purpose of extenuating anything, but simply that I 'believe things will be shown to be right and then the amount thus deposited is much more than anyone claims the shortage to be. It has no reference whatever to guilt or innocence, and it was farthest from my idea in so doing that I was in any way putting myself or any one else in a compromising position. It does mean, however, that neither the school board or the Peoria National bank will lose one penny." The grand jury is still in session and is grinding out indictments by the wholesale. When will it end? is the question that is being asked by Peorians. The state's attorney's office threw up a batch of about forty yesterday and are hard at work day. A report by the grand jury is looked for on Monday in court circles, and then the revelation that will follow can only be conjectured by Peorians. At the state's attorney's office today it was said that no idea could be given upon or where the investigation would end. "We are grinding out indictments as fast as the printers can print them," said State's Attorney Scholes today. "I look for a report of the grand jury about Monday."

6. October 9, 1905 Durango Semi-Weekly Herald Durango, CO

Article from Durango Semi-Weekly Herald, October 9, 1905

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ONE HUNDRED INDICTMENTS AGAINST PEORIA BANKER PEORIA, III., Oct. 7.-The Peoria National bank, of which Newton Dougherty, the indicted school superintendent, was president, did not open for business today, pursuant to a decision of the directors reached at midnight. Dougherty has turned over his private fortune to the bank. It is expected that Dougherty will be lodged in jail this afternoon when he has been arraigned on 87 additional indictments. He has turned over securities worth $200,000 to cover the alleged shortages. He may not be able to raise bail. He has already given bail on thirteen charges. He does not deny his guilt. His friends advance the kleptomania theory. National Bank Examiner Bosworth was appointed receiver of the institution. Runs were started this afternoon on the Dime Savings bank and the City National bank.

7. October 9, 1905 The Madison Daily Leader Madison, SD

Article from The Madison Daily Leader, October 9, 1905

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DEPOSITORS WILL BE PAID. First National Bank of Peoria, III., Closes Its Doors. Peoria, III., Oct. 9.-"We have several offers from banks who wished to take over our business, but our directors, after carefully considering the matter, decided that the best thing to do would be to liquidate under the law. Every depositor will be paid in full and I am confident that the stockholders will receive a good return." This is the statement of S. O. Spring. cashier of the Peoria National bank, which closed its doors as the result of the Dougherty investigation. Early in the day large numbers of depositors appeared at the bank, but the doors were closed and it was announced that they would not be opened again until a receiver had been appointed by the comptroller. The Dime Savings bank, in which Dougherty is a large stockholder, experienced a small run, but paid all depositors as they asked for their money. The officers announce that they have plenty of funds to meet all demands.

8. October 9, 1905 Alexandria Gazette Alexandria, VA

Article from Alexandria Gazette, October 9, 1905

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Quiet After Financial Storm. Peoria, III., Oct. 9.-Calm has succeeded the financial storm that stirred the city last week, and ended with the incipient run on the Dime Savings Bank. This morning the bank is carrying on its business as usual. The grand jury will probably not assemble until this afternoon. When they do meet, it is considered very probable a demand will be made that N. C. Dougherty's bond be increased. C. N. Bosworth, receiver for the Peoria National Bank, took active charge of affairs this morning. He refused to say anything further than that as soon as possible he would make a detailed report of the financial condition of the bank.

9. October 11, 1905 Manchester Democrat Manchester, IA

Article from Manchester Democrat, October 11, 1905

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BIG SENSATION AT PEORIA School Superintendent and Bank President Arrested on Charges of Forgery and Embezzlement. Peoria, III., Oct. 6.-Professor Newton C. Dougherty, superintendent of city schools of Peoria for more than twenty years, president of the Peoria National bank, and a capitalist, has been arrested on two true bills returned by the grand jury, charged with forgery and embezzlement. The arrest followed an investigation resulting in the discovery that there is a shortage of at least $60,000 in the school rund deposited in the bank. The Investigation covered only the period from January, 1903. The grand jury will now, It is stated, investigate the entire record of Professor Dougherty as superintendent of schools, and it is believed that a much greater shortage will be found. Professor Dougherty was first arrested on a charge of forgery, the specific charge being that he had forged a voucher for $164.50 for coal. He promptly furnished $3,000 bail. The Indictment and arrest on the charge of embezzlement followed, and on this charge Professor Dougherty furnished $9,700 bail. Following his arrest on the charge of forgery Professor Dougherty sent in his resignations as president and director of the Peoria National bank and as superintendent of schools. As a direct result of the indictment of Dougherty the directors of the Peoria National bank, of which he was president, announced shortly after midnight this morning that they had decided to discontinue business, and would call in the comptroller of the currency to wind up the affairs of the institution. The meeting of directors lasted all evening behind closed doors. It was admitted that a disastrous run would be inevitable today and the only recourse was to liquidate at once. Peoria. III., Oct. 9.-The closing of the Peoria National bank. brought on by the indictments against Newton C. Dougherty. resulted in runs on the Dime Savings bank and the Central National bank. Dougherty is a large stockholder in the Dime Savings bank. Hundreds of depositors, a majority of them women and girls, crowded into its offices and demanded their money,

10. October 14, 1905 Ottumwa Tri-Weekly Courier Ottumwa, IA

Article from Ottumwa Tri-Weekly Courier, October 14, 1905

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Peorla, III., Oct. 13. - The grand jury returned Its final report today with a true bill against Oliver J. Bailey, chairman of the finance committee of the Peoria school board and holding him on a charge of malfeasance In office. The Jury censured the entire board for "criminal negligence In administering the affairs of the city's schools." Forty-three additional Indictments were also returned against Dougherty for embezzlement and forgery. The Jury was discharged today. Peoria, III Oct. 13.-In the midst of turbulence that twice verged on fisticuffs the grand jury voted an indictment late yesterday afternoon against O. J. Bailey, chairman of the school board's finance committee, on the charge of malfeasance in office as chief auditor of Defaulter N. C. Dougherty's accounts. The accused man is Peoria's foremost financier, upon whose shoulders, to a large extent, rests the credit of the town. Henry G. Triebel, the other active member of the committee, and Mayor Tolson, ex-officia member, were exonerated of all criminal responsibility. As a consequence of this action, which transpired early last evening, the city is running with excitement. It is the program of the jury to return the indictment today in court, but a strenuous attempt will be made by Bailey's friends to have it reconsidered. The vote by which the financier was indicted stood 16 to 7. It requires fifteen votes to indict. If Bailey's friends can add two more to their present strength the action may be nullified and no indictment returned. The minority jurors are working hard to achieve this end. Forty-Three New Dougherty Bills. If the indictment is returned in court, Bailey will be taken into custody at once and required to give bonds. The offense with which he is charged is punishable by a fine of not more than $10,000 and prohibition of ever again holding public office. There is no imprisonment penalty. With the close of the session of the jury yesterday Foreman Grant Minor not only reported to the state's attorney's office Bailey's indictment but also delivered forty-three additional indictments against Dougherty for forgery, embezzlement and larceny as bailee, leaving with the judge a lengthy report, part of which will be a severe censure for the school trustees. The total number of indictments against Dougherty then will be exactly 140, representing embezzlements aggregating $280,000, according to a calculation made today by State's Attorney Scholes. Banks Again Are Shaken. With the spread of the news concerning Bailey's indictment the city again became possessed of a fear of a general bank run. He is a director and heavy stockholder in the Central National bank, in which most of the school funds now are deposited, and he is president of the Dime Savings and Trust company, on which a run was started last Saturday. The latter institution is still availing itself of its sixty day clause in payment of savings deposits. It is feared that the run, if it materializes, will be on the Central National. It is declared that the bank is ready for any emergency, and could satisfy all demands. In the light of the prodigious sum to which the latest calculations have swelled Dougherty's shortage it is feared that the schoolman's property will not be sufficient to reimburse the public treasury. In that event Bailey may be prosecuted not only criminally for malfeasance, but sued to recover the final deficit in the fund for which he has been partly responsible for the last nineteen years. VA S MAKE

11. October 14, 1905 The Democratic Advocate Westminster, MD

Article from The Democratic Advocate, October 14, 1905

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PEORIA, ILL, October &-The arrest of Newton C. Dougherty, in this city, on the charge of forgery follows surprising revelaDons by the Grand July, which has been ex antining the books of the Peoria School Board. " this a comparatively brief space of time a shoulage of $75,000 was discovered, but the further discovery was made that the peculaTIMES have been extending over a long term of years. The shortage will reach hundreds of thousands of dollars. Dougherty was arrested on the street and taken to the office of the Sheriff, where be gave $3000 bail. with Kliot Callendar and H. 16. Dougherty, son of the accused, as sureties. Dougherty has been City Superintendent of Schools for twenty five years. He is wealthy, is president of the Pedria National Bank and is at heavy stockholder in the Dime Saving and Trust Company, the Title and Trust Company, the Peoria Livery Company and other con cerus. He is a trustee of the fund of $175,000 held by the National Educational Association and is a past president of the association. He is a close friend of Nicholas Murray Butler, pres ident of Columbia University of New York, and has been for years regarded as one of the foremost educational men in the country. Shortly before the arrest, and when it was known that he would be apprehended, Dough. erty said that if the investigation showed a mortgage he would make it good. He said that be would stay right here in Peoria: that it was here that he had been honored. and here he would stand trial. He was seen immediately after his arrest, but declined to make any further statement for publication. This afternoon he sent in his resignation as president and director of the Peoria National Bank. The charge upon which be was arrested was forging a voucher for $164.50 for coal, al. leged to have been delivered for school purposes, but which was not delivered. The date of the voucher was March 7, 1903. Later in the day he tendered his resigna. tion as superintendent of schools and as director in the various commercial institutions with which he was connected. PEORIA, ILL, October U-A total of 13 indictments have thus far been returned against Newton C. Dougherty. Ten of them are for embezzlement and three for forgery. Forty more are being drawn by the State's Attorney. It was announced from that office today that the total would reach more than 200. The bail required for those thus far returned is $12,700. While Newton C. Dougherty is being show. ered with messages of sympathy and esteem, the bank clerk who revealed his irregularities, involving thousands of dollars of public funds, has been summarily dismissed by the bank officers. Last Saturday the Peoria National Bank, of which Dougherty was president, closed its doors and was placed in the hands of a receiver, and the Dime Savings Bank, with which he is also connected, posted the 60 day sign.

12. October 14, 1905 The Democratic Advocate Westminster, MD

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Last Saturday the Peoria National Bank, of which Dougherty was president, closed its doors and was placed in the hands of a receiver, and the Dime Savings Bank, with which he is also connected, posted the 60 day sign.