5348. Urbana Banking Company (Urbana, IL)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: October 1, 1929*
Location: Urbana, Illinois (40.111, -88.207)

Metadata

Model: gpt-5-mini
Short Digest: 6fa78b8c

Response Measures

Borrowed from banks or large institutions, Full suspension, Books examined

Other: Receiver reopening to allow access to safety deposit boxes and adjustment of accounts; criminal prosecutions followed.

Description

The Urbana Banking Company experienced a slow run in the month before closing, was closed by the State Auditor Oct 21, 1929 (government action due to frozen assets/bad loans), a receiver was appointed and the bank briefly opened to allow depositors to adjust claims/safety boxes but did not resume normal operations and was liquidated under a receiver. Cause of initial withdrawals is tied to bank-specific adverse information (frozen assets, bad loans, embezzlement discovered).

Events (4)

1. October 1, 1929* Run

Cause: Bank Specific Adverse Info
Cause Details: A roughly 30-day period of withdrawals (~$200,000) preceding the Oct. closing, driven by the bank's weak condition (large bad farm loans, shrinking cash reserves) and later revelations of embezzlement/unsound practices.
Measures: President went to Chicago seeking funds; correspondent banks/Fed Reserve shipments (other local banks received currency) to guard against runs.
Newspaper Excerpt: There apparently had been slow run on the bank for about 30 days prior to its closing and during this period about $200,000 in deposits had been withdrawn
Source: newspapers

2. October 21, 1929 Suspension

Cause: Government Action
Cause Details: Closed by State Auditor Oscar E. Nelson due to 'frozen assets' and large bad farm loans (reported $200,000 to $350,000) and critically low cash reserves.
Newspaper Excerpt: The doors of the Urbana Banking Company State bank, were closed today by State Auditor Nelson because of frozen assets.
Source: newspapers

3. November 2, 1929 Receivership

Newspaper Excerpt: Roger Little was yesterday pointed receiver of the Urbana Banking company, which closed its doors nearly two weeks ago, but will open up again tomorrow morning to adjust accounts with depositors. His appointment was made yesterday morning by the state auditor.
Source: newspapers

4. November 3, 1929 Reopening

Newspaper Excerpt: Urbana Banking Company Will Open Doors Tomorrow Morning to Adjust Accounts ... will open up again tomorrow morning to adjust accounts with depositors. More than 300 depositors ... were in line outside its doors this ... when the bank opened for the first since Octo check over their and the contents of their safe deposit.
Source: newspapers

Newspaper Articles (20)

1. October 21, 1929 The Taylorville Daily Breeze Courier Taylorville, IL

Article from The Taylorville Daily Breeze Courier, October 21, 1929

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URBANA BANK CLOSED TODAY; FROZEN ASSETS Urbana, III., Oct. 21. (A.P.)-The doors of the Urbana Banking Company State bank, were closed today by State Auditor Nelson because of frozen assets. The bank had a capitalization of $1 200,000 and bad farm loams amounting to between $200,000 and $350,000 were reported. President John H. Thornburn of the bank, was reported to be in Chicago in an attempt to obtain money. Other officials would make no statement. Glenn Hodges of the state auditor's by office said examination of the bank night. would require three or four dayse to stave off Basey bank at Urbana on that bank. run

2. October 25, 1929 JG-TC: Journal Gazette and Times-Courier Mattoon, IL

Article from JG-TC: Journal Gazette and Times-Courier, October 25, 1929

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URBANA BANK GUARDS AGAINST POSSIBLE RUN Urbana, III., Oct. First National Bank of Urbana on Monday afternoon received $500,000 in currency from the First National Bank of Chi- cago to guard against run. The bank is having busy time in accepting new deposits but none has been drawn out. As the result of the crash of the Urbana Banking Company, the institution took judgments aggregating more than $66,000 in the Douglas county circuit court on Monday afternoon against L. B. and Luella M. Saffer of Rossville, formerly of Urbana, and were transferred to Urbana Tuesday morning by transcript and are now on file in the circuit court here.

3. November 3, 1929 The Daily Illini Urbana, IL

Article from The Daily Illini, November 3, 1929

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BANK RECEIVER BY STATE AUDITOR Urbana Banking Company Will Open Doors Tomorrow Morning to Adjust Accounts Roger Little was yesterday pointed receiver of the Urbana Banking company, which closed its doors nearly two weeks ago, but will open up again tomorrow morning to adjust accounts with depositors. His appointment was made yesterday morning by the state auditor. Although auditing of the bank's books is not yet completed, it was deemed necessary to appoint ceiver. Up until this time the state examiners attempting to just the books and place the affairs of the bank in such position that receivership would not be necessary. Gives $75,000 Bond Little was appointed to the position at the of eral of the bank's largest creditors. After receiving his appointment yesterday morning the state representannounced that he would conduct the adjustment of the bank the lowest expenditure possible and the least litigation. He offered bond of $75,000 guaranteed by the Ameriican Surety company. Up until Friday George W. Busey and R. Webber were being considered for the position of receiver. However, the former told the auditor yesterday that he would not considthe position. Petitions had been circulated among the depositors asking that Webber be appointed for the receivership. Report Is Expected report of the exact condition of the bank is expected from the auditor's office in the next few days. Glen Hodges, state examiner, who has been in charge of the auditing, checked out of the UrbanaLincoln hotel, where he was staying, Friday night. Although he left no word as to where he was going. thought that he left for Springfield. Any report on the examination will have to emanate from the state office. The auditors have been at work on the company's books for nearly weeks. State's Cline has been waiting for completion of their work before he goes to Judge F. H. Boggs and asks for reconvening of the grand jury to indict H. Thornburn, president of the company, on charge of bezzelment.

4. November 4, 1929 Belleville Daily Advocate Belleville, IL

Article from Belleville Daily Advocate, November 4, 1929

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300 IN LINE WHEN CLOSED BANK OPENS DOORS Nov More than 300 depositors of the Urbana were in line outside its doors this when the bank opened for the first since Octo check ove their and the contents of their safe deposit Only two or three were allowed at time by Roger Little. state and newly receiver for the bank. Little said that no ities had discovered the and boxes investigated today. State auditors checkthe bank's books The deposithave three months in which file their statements for adjustment their accounts. BANK RECEIVER NAMED Ill., Nov Jensen. Plainview. Neb. been appointed receiver of First National Bank of this city and will take charge tomorrow The bank closed Oct. with the planation that th eaction was taken protect depositors following closing Coll-Grove bank because frozen VISIBLE GRAIN SUPPLY NEW visible supply of American grain shows the changes bushwheat increased els; corn decreased creased rye increased 000; barley decreased NEW YORK COTTON NEW Nov futures closed barely steady points lower: December January 17.80: March spot mid- Corn shelled Shipstuff, cwt Bran, per cwt Oats HAY per per POULTRY Timothy cwt. White corn $1.20@1.28 Hens lbs. and under Cocks Stags Young each Springs, lb. Dark Ducks White Ducks Spring ducks Young geese turkeys 40c Young BUTTER AND EGGS Butter country 50c per Eggs, per dozen

5. November 5, 1929 The Dallas City Review Dallas City, IL

Article from The Dallas City Review, November 5, 1929

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Illinois East Louis' oldest resident, Charlotte Eckerman Holton, ninetydied suddenly. Mrs. Martha Slade, pioneer resident of Hillery, following long Illness. John fifty years killed when fell from steel works the Quincy memorial Orval Hay, for the last years business man of but formerly agent for the dead after an Illness of several Robert Ward, trustee of the University Illinois, killed by from his farm few miles from Benton. president of the Benton State bank. marriage license Issued in the county clerk's office in Duckett, and Mrs. Martha Paradee, both of Pana. The couple reside Joseph Kuharske and his Irene, home Lake Bluff burned foundations week ago, surrendered Sheriff Lawrence Doolittle Waukegan. They were released bonds $5,000 each charges of arson. Football proposition for the first time the history of college in Lebanon, Athletic Glen There In the athletic treasury. which he expects double before the end the season. Filly attributes the financial success to night football. An indictment counts, chargIng Laura Weaver with the common law husband, Wilmer Kitzelman, June 30, returned Toulon by the Stark county grand jury. The indictment charges the woman killing Kitzelman at their home Wyoming and then burning the body. Rev. Father David Conway, for years pastor of St. Roman Catholic church Woodstock, died in the Harvard hospital Harvard. of Injuries received when the automomobile which he riding turned Marengo. Father Conway years old and had had pastorates Chicago, Wilmington and New Rochelle. John Preston, Chicago painter, confessed Du Page county authorities that while under the influence of bootleg whisky he assaulted and Agnes year-old Chicago girl, pleaded not guilty when was arraigned in Circuit court Wheaton. He held without bail for trial on murder charge month. citizens of Chicago Heights, including Bahne Carnilson, postmaster, and former Chief of Police John Constabile, will go to trial before Federal Judge Wilkerson November 25 charged with conspiracy violate the prohibition law. All cept of the defendants raigned and pleaded not guilty. Bonds for the others declared forfeited. While Paul Ritchhart, farmer of Broadwell, looked his father and mother, aunt, his wife and youngest killed when an automobile bore them directly into the path train the Illinois Terminal Rallway company. The dead John Ritchhart, sixty, retired farmer: Mrs. Ritchhart, Mrs. Laura Gady, Mrs. Paul Ritchhart, Russel Dean Ritchhart, one. The Urbana Banking company, with capital of and deposits of $1,250,000, failed to open. poston the door by Oscar Nelson, state auditor of public accounts, said the bank for and readjustment." Glenn Hodges, examiner, was placed charge. precautionary measure several banks Urbana Champaign received shipment of $500,000 from the Federal Reserve bank Chicago. Amid the pomp and pageantry of the Roman Catholic church, Bishop Edmund Dunne, for years spiritual leader of the 120,000 Catholics of the Peoria diocese, was laid Peoria, while crowds bronged the streets adjacent to St. Mary's cathedral to tribute to the dead bishop. and priests gathered to assist the celebration of the pontifical quiem high mass sung with Cardinal Mundelein Chicago as the celebrant. An association to the life and works of the late Carl Schurz, statesman and patriot of Chicago, was granted charter by Secretary of State Stratton in Springfield. The will be known the Carl Schurz Civic association. Founders of the association plan erect memorial to Schurz and spread propaganda concerning and patriotic work, according to the petition filed with the secretary state. Tom Peterson, was struck by an automobile driven by Miss Lois Hart, school teachat Bushnell. Peterson started to cross the street behind another car hard and the driving slowfalled to see him. She not held. John Oglesby, former lieutenant governor of Illinois, and Mrs. Charles Van Bergan Carroll, of Springfield, married Peoria by Bishop of the Springfield diocese. The marriage ceremony was read In the presence small of relatives and friends.

6. November 5, 1929 JG-TC: Journal Gazette and Times-Courier Mattoon, IL

Article from JG-TC: Journal Gazette and Times-Courier, November 5, 1929

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MAN IS NAMED CLOSED BANK RECEIVER Urbana attorney Republican floor leader of the Illinois house of representatives, has been appointed ceiver for the Urbana Banking Company by State Auditor Nelson. Charges of embezzlement have been preferred against John H. president the defunct institution Receiver the day in attempt to adjust accounts bank's customers At the time the crash the bank had deposits of and between and its assets are believed to "frozen."

7. November 5, 1929 The Daily Illini Urbana, IL

Article from The Daily Illini, November 5, 1929

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CONSIDER CASE THORNBURN Indicting Body Will, Meet Thursday; Urbana Bank Opens; Customers Empty Safety Boxes Coincident with the opening of the Urbana banking company to allow holders of safety boxes remove their possessions came the call for the reconvening of the grand jury next Thursday morning to investigate case of President John H. Thornburn, charged with embezzelment. State's Attorney Roy R. Cline peared before Judge Boggs yesterday afternoon circuit court with petition for the summoning of the indicting body. It was granted and Chief Deputy Leo Kurt of the sheriff's force notifying the members of the jury last night. Reinforced reports from the state auditor, Mr. Cline is now prepared for his appearance before the grand jury. He already had Thornburn's confession to the misappropriation of in Urbana school board money, but was waiting until further information was obtained from the examiners. Customers Empty Boxes Meanwhile at the bank, which not yet in the hands of Roger Little, receiver appointed last Saturday, customers came in continuously through the day to examine and in some cases remove their possessions from the boxes. line of more than 50 depositors was waiting the doors the bank when opened o'clock yesterday morning. corps of state auditors, Mr. Little, attorneys and several worked on the affairs of the bank late Saturday night and all day Sunday night to bring them up to shape for opening yesterday. Exact Condition Unknown The receiver would make no comments as to the condition of the bank. true condition of the bank will be known when learn how much of the bank's holdings be collected," he said. "Meanwhile we will continue checking out holdings in safety deposits." Customers of the bank can now bring in their passbooks and file claims against the company. Checking over of the property of the bank Receiver Little is still being carried by four members of the state auditor's force. He must give ceipt for everything turned over to him. list of assets and liabilities will soon be filed by Thornburn's attorney in connection with the bank executive's voluntary entry into bankruptcy last Saturday the federal district court in Danville. George W Busey appointed receiver of the Thornburn property.

8. November 5, 1929 The Urbana Daily Courier Urbana, IL

Article from The Urbana Daily Courier, November 5, 1929

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The Urbana city council voted last night to publish officially a budgetcity and ary expenses for the fiscal year ending july 13, which shows total collections against disbursements aggregating making net excess revenue $1,993.86. The statement calls attention to the fact that $22,966.67 road and bridge money was turned over to Supervisor Jacob White and deposited by him the Urbana Banking company's bank, since closed, and that there no of determining how much of this saved. On motion of Alderman Scoville, the council voted to take legal steps to protect the city's interest in the road and bridge fund and the firemen's fund. Attorney to Investigate The city attorney was instructed to conduct an investigation toward determining the person responsible for non-collection of last year's taxes on Thornburn's property. The Petroleum company's petition for permit to erect filling station at Green street and Busey avenue came up for lively discussion again. Hursh moved that the petition be granted was ruled out of order by Mayor Harmon on grounds that, under the ordinances, the city has no right to grant such permit. Alderman Hornmoved that the ruling of the mayor be not sustained, whereupon Hursh moved to table the petition until the next meeting and this was done. canvass of the vote cast October showed that McIntyre been as Republican candifor alderman in the be voted on Tuesday, November for the purpose of filling the vacancy created by the resignation of McLarty. He defeated Robert Hackett by vote of to 40. There no on the Citizens' tickets, which leaves McIntyre without opposition. the Checker Cab Application company for permit to operate four cabs Urbana over until next meeting to permit amendment of ordinance, in that the $5,000 $10,000 indemnity the company carried on each cab better protectien than the $1,000 bond required by the city. Recommend "Warrenite" The mayor and Aldermen Kirkpatrick Furst having visited several cities for the purpose of specting "Warrenite" as material resurfacing old payements. They found well recommended and so reported. The registration of Ry Nelson pblice officer was accepted and the mayor appointed Sherman Glenn fill the vacancy for period of days. The police and traffic committee reported to bullet proof vests for shortage of funds and asked for further time in locating the four "Stop and lights recently Clark, department of public that an of the ported revealed safe for water supply drinking. The finance committee was ized to borrow current penses.

9. November 5, 1929 Herald and Review Decatur, IL

Article from Herald and Review, November 5, 1929

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Grand Jury to Investigate Urbana Banking Company Nov. State's Attorney Roy Cline for special grand jury tigate the affairs of the Urbana was granted day by Judge Franklin Boggs in court. The bank closed Oct. following the of President John Thornburn. The bank was reopened Monday under supervision receiver Roger Little. time to the problems encountered at that time now are testing determine the improved device. HOURAN'S VACATION Houran of the Engineer railroad has been granted leave absence and by Mrs. Houran will go companied Seattle, Wash., to visit their Donald. UNDER TRAIN M. coal miner, fatally injured Monday morning he attempted to beneath of freight train in Staunton. the train beneath man was injured knew nothing the accident. was found by the next train which to that place.

10. November 7, 1929 JG-TC: Journal Gazette and Times-Courier Mattoon, IL

Article from JG-TC: Journal Gazette and Times-Courier, November 7, 1929

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URBANA GRAND JURY TO INDICT EX-BANKER Urbana, III., Nov. 7.-Members of the September grand jury returned this morning for the purpose of indicting John H. Thornburn, president of the Urbana Banking Company, on a charge of misappropriating $100,000 of the Urbana school funds. When asked If Thornburn would be taken into court immediately after the indictment is returned to enter his plea, State's Attorney Cline answered that he did not believe so. "So far as I am concerned," said Cline, "Thornburn will be treated just the same as any other prisoner. No effort on my part will be made to take him in secretly and have him sentenced before the public knows anything about it." Mr. Cline is privileged to handle this case as prosecutor on account of Thornburn having promised to plead guilty, but if grand jury investigation is to be made of the bank, the court will have to appoint someone else to do it, as Cline was a depositor in the bank. Receiver Roger Little and a small army. of assistants were still busy Wednesday on the opening of safety deposit boxes. Everything is being checked and receipts taken to keep down lawsuits.

11. February 7, 1930 The Urbana Daily Courier Urbana, IL

Article from The Urbana Daily Courier, February 7, 1930

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TAKES CLAIM UNDER ADVISEMENT Judge of Decatur, siding in Judge Boggs' place in court yesterday afternoon, took under advisement petition by Miss Maude Alverson that she re-imbursed by receiver of the Urbana Banking company for the loss of in Urbana Lincoln hotel building bonds in the bank crash. Earlier during the Judge had allowed such claim filed by Mrs. Nora Brown, whose Rho chapter of Phi Sigma building bonds were missing from her safety deposit box in the bank, the ceiver being ordered to restore the lost out of the bank's property Judge Baldwin will return Monday grand jury will and on that day the re-convene to take up an tion of the Urbana Banking company's affairs from criminal angle, with Lott R. Herrick of Farmer City in charge special prosecutor. Following the hearing on Miss A1 verson's claim yesterday afternoon Judge Baldwin adjourned court until which tomorrow time Judge Boggs will preside.

12. March 22, 1930 The Urbana Daily Courier Urbana, IL

Article from The Urbana Daily Courier, March 22, 1930

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REA, HUSS, ARE The grand jury, after spent under direction of Lott Herrick special posecutor, investigating the failure of the Urbana Banking company bank last this afternoon returned 36 indictments, 35 of which charge criminal on the part of county official and three officials of the bank. Those indicted are: Charles W. Dale, county treasurer; charged with receiving interest on public John H. Thornburn. president of the bank, now sentence Chester penitentiary for the embezzlement $100,000; indictments all, the charges being receiving posits with knowledge of the bank's forgery and larceny. Edwin Rea, vice president of the bank; 32 indictments, each charging acceptance of deposits with knowledge of J. Wesley Huss, 32 ments, each charging acceptance of deposits with knowledge of insolven Dale's bail was fixed at Rea's at $32,000 Huss' $32,000. Huss Gives $32,000 Bail Huss was in court when the jury reported and gave His sureties are: Mrs. Huss. his Maude Huss. Stanley Boggs, Dr. G. Way, Prof. Leutwiler, FlaninHarry Millard and M. B. Hargam, land. The other indictment making the 36th was one of State's Attorney Roy Cline's cases having no connection with the bank failure. The grand jury, after making its return, reported that had not finished its investigation of the bank and therefore not adjourned. The jury submitted the following port: the Honorable James Bald presiding judge of said grand jury, which was specifically instructed by your honor investigate the affairs of The Urbana Banking and to determine company whether or not of the criminal any laws of the State Illinois have violated by of the officers any of said bank. any other person respectfully report as fol persons, That in the course of our amination examined about 156 we to witnesses. "That hampered in our amination to no thoro and audit has made the books of bank; that such an audit would very expensive, and was not with employ an auditor and in our power such audnt be made: that cause the condition of the bank can probably never be unless thoro audit made: that the and his readily gave us much valuable information and cheerfully and promptly assisted the course That the books our investigation. the bank woefully juggled some time prior to the failure of that the accounts of many of the bank have been depositors That there apparently had been slow run on the bank for about its closing; that during days prior period about $200,000 30-day had been withdrawn from deposits the bank; that the cash reserve required by the state per cent. had dwindled banking department on the day the bank two per cent. closed. the basis which the That upon doing business for bank had been prior to its closing. was some time that the fundamentally unsound: interest high bank was paying annum different cent. upon open checking depositors That large number of counts. loans institu safe and unsound concerns in which the tions and and sident financially personal friends loans to some the president had been losses to the which will show large there was apparently That the part the on the books of by manipulating the state bank the bank. to deceive examiners. worthless and also prac That tically worthless of dollars were running into thousands bank to its depositors sold thru the and customers: grossest fraud apparently and instances in resorted to in many making such county treaThat the present well his predecessor. surer been receiving apparently funds deposited terest the public Banking and in Urbana company that the board of suprecommend take action ervisors of the county bringing of such suits authorizing the bonds

13. March 23, 1930 The Daily Illini Urbana, IL

Article from The Daily Illini, March 23, 1930

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STORY OF CRASH REVIVED AS BANK CASE IS CLOSED Tragedy, Pathos, Mystery All Bound up in Morning of October Failure By HOWARD CARPENTER '32 Indictment of the three officers of the insolvent Urbana Banking company yesterday revived stories of the crash which occurred just five months ago. Early Monday morning, October 21, 1929. a small sign was placed in the doorway of the Urbana Banking company, at Main and Race streets, stating that the bank would not be open for business. A crowd which soon collected about the building increased in size during the day. Friends of the president, John H. and immediately sought him out at his home, 308 West Green street, Urbana. They found silent, mysterious house, however, and neighbors stated that the banker had left for Chicago on the previous Friday. It was immedisuspected that Thornburn had gone to the metropolis secure loan which would save the bank from insolvency. Vice-president Edwin E. Rea stated that the closing was slight interruption of business. No one will lose any money.' While Glen Hodges, state examiner, worked day and night on the bank's books, the county searched for Thornburn. On Friday, October 25, the financier walked into Sheriff Shoaf's office and declared that he ready to breast of the whole affair. He admitted embezzling $100,000 deposited by the Urbana township school board in order to meet number of personal claims against himself. He he had speculated in Missouri and IIIInois farm lands. Oscar Nelson, state auditor, appointed Roger F. Little to serve as receiver for the defunct institution on November 2, and Mr. Little immediately assumed charge. Judge Boggs issued an order for special circuit court grand jury to meet on November On this date details of Thornburn's voluntary bankruptcy proceedings were made known by The banker had $1,040,004 in Habilities which he could not pay at that time. Given One to 10 Years The special grand jury under State's Attorney Roy Cline indicted charge on the same that first met, November Five days later the banker was convicted circuit court presided over by Judge O. H. Walmsley. He was sentenced to from one to 10 years. Sheriff Shoaf took him to Chester the next day in company with two chicken On November 21. George W. Busey was appointed receiver for Thornburn's estate, and this loosed a flood civil suits in circuit court against the estate. Many who lost money thru the failure of the institution attempted to recover it by law suits. Roger F. Little issued an official statement of the bank's financial condition at this time also, It showed that the cash on hand amounted to $15,732.98. and other items brought the total assets to Deposit liabilities reached $982,206.55. Herrick Appointed Prosecutor Riley was ousted as treasurof the Urbana school board on December as result of the board losing $100,000 in the bank. It was revealed that county officers lost more than $400,000 through the crash. Small depositors held indig nation meetings to protest against the suits of public officials to get the public moneys preferred when the bank debts were repaid. Lott Herrick was appointed special prosecutor at the request of Mr. Cline on February Mr. Herrick called special on February 10 and kept It work until February 28., It then adjourned and reconvened yesterday morning.

14. March 23, 1930 The Daily Illini Urbana, IL

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Special Grand Jury Returns Indictments (Continued from Page One) the methods employed in the Investigation and outlined its findings. Following is summary of the report: In the course of the examination, about 156 witnesses were examined. The jury was hampered because no thorough and comprehensive audit has been made of the bank's books, and the true condition of the bank can probably never be unless audit is made. The books of the bank were woefully juggled for some time prior to its failure and the accounts of many of the depositors have been looted. 2. There apparently had been slow run on the bank for about 30 days prior to its closing and during this period about $200,000 in deposits had been withdrawn, the cash reserve of 15 per cent required by the state banking department having dwindled to two per cent on the day the bank closed. Unsound Practices The basis upon which the bank had been doing business for some time prior to its closing, was fundamentally unsound. It was paying interest as high as six per cent per annum to different depositors upon open checking accounts. Loans were made to institutions and concerns in which the president was financially interested, and like loans were made to some personal friends, all of which will show large losses to the bank. There was apparently studied effort on the part of Thornburn, by manipulating the books of the bank, to deceive the state bank examiners. Worthless securities in amounts running into thousands of dollars were sold through the bank to its depositors and customers: the grossest fraud and misrepresentation apparently being resorted to in many instances in such sales. Recommend More Suits The present county treasurer (Dale) as well as his prederessor (Edward Rogers) had apparently each been receiving interest on publie funds deposited in the Urbana Banking company The jury recommended that the board of supervisors of the county take action authorizing the bringing of suits on the respective official bonds of the treasurers to recover all such interest taken. In seeking the facts contributing to the failure of the bank. the jury admitted its findings were incomplete. Thornburn's bad investments and speculations in grain were attributed as partial causes of the failure. In closing the jury pointed out that its work not yet completed, and that further indictments may be expected. Dale, Thornburn, Rea, and Huss will not come up for trial until the next term of court. Thornburn will be brought back from the penitentiary at Chester to face the charges made in the indietments.

15. March 27, 1930 The Paxton Record Paxton, IL

Article from The Paxton Record, March 27, 1930

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INVESTIGATE AFFAIRS OF BANKING CO. Grand Jury Returns 36 Indictments On Officials ONE COUNTY OFFICER J. Wesley Huss Was in Court and Gives $32,000 Bail III., March grand weeks spent under of Lott R. Herrick as speinvestigating the of the Urbana Banking pany bank last this after36 indictments 35 of which charge eriminal acts on the part of one county official and three officials of the Those indicted Charles W. Dale, treasurer; charged with receiving interest on public funds. John H. Thoraburn, president of the bank, now serving sentence Chester penitentiary for the embesin all, the charges deposits with of the bank's forgery and larceny. Edwin E. vice president of the bank; 32 indictments, charging of deposits with of each charging of deposits with knowledge of insolvency Dale's bail was fixed at at $32,000 and Huss' at 000 Huss was in court the jury and gave His sureties Mrs. W H. Huss, his his Boggs, Dr. G. F. Prof. Harry Millard and M. B. Har other making the 36th one of State's Attorney Roy Cline's having no with the bank failure. The jury making its after it had not finits of the bank case and therefore was not The jury submitted the following the Honorable James S. judge of said courtgrand which was cifically by to the affairs of Urbana Banking and whether not the criminal laws the of have been violated by any of the officers of said or any or persons, respectfully report as fol That in the course of our examined 156 our to extent has yet been of the books of said that be very was not within our power to employ be that the condition the bank can be is made; that the promptly requested the of our tigation That the books of the bank were for time to the failure the that the of many of the deposit- the bank been slow run on 30 days that with drawn from the reserve by the state had to per cent on the day the bank closed. That the basis upon which the bank had been doing business for some time prior to closing was unsound; that the bank was paying Interest as high as six per cent per annum to different open checking counts. of safe and unsound to tions and concerns in which the sident was interested and like loans to some of the president had been made, of which will show large losses to the bank. That there was apparently studied effort on the part of the president, by the books the bank, to deceive the state bank "4. That worthless and also tically securities into of dollars were sold through the bank to its and the grossest fraud and apparently being to in many such sales. "5. That the county treasurer as well as his edecessor the funds deposited in The Urbana Banking Company and we that the board of supervisors of the county take action authorizing the bringing such suits on the respective official bonds of such may to recover for the county, all such "6. That we to determine all the ontributing to the failure of the "We had some evidence that the president had speculated in grain, but so far as we while these into several thousands of dollars speculation was to wreck the bank. that the president had lost heavily of ent types, from oil and min corn com "That the president had at the time 6,000 of the of which at the time the That an been Missouri closing of the but that no ap praised as the gage against That the charges the president on the at the That in some the our inthe criminal laws this state, but we have work "All of which is respectfully sub mitted. "HARRISON SCOTT. the grand jury.

16. June 11, 1930 The Pantagraph Bloomington, IL

Article from The Pantagraph, June 11, 1930

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BANK RECEIVER GIVEN $17,000 Little at Urbana Is Awarded Two Judgments. (Special to The Pantagraph.) session of circuit court this morning. presided over by Judge D. H. Wamsley Tuscola, substituting for Judge Boggs, Roger F. Little, as receiver of the defunct Urbana Banking company, was awarded judgment by confession for amounts aggregating $17,47.63. one against John Charles Thorpe for $13,777.05 and another against Hazel Huber for $3,695.58. Executions were ordered to issue in each case. Frances Alexander presented evidence supporting bill for vorce against Darrell Alexander. She was awarded decree of dithe custody of their minor children and $10 week alimony. George against whom Carl Runyon on May obtained dict of $3,625, was ruled to file motion for new trial in writing. giving grounds therefor The case grows out of injuries received by Runyon in an automobile accident.

17. July 26, 1930 The Daily Illini Urbana, IL

Article from The Daily Illini, July 26, 1930

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RECEIVER LITTLE FILES REPORT ON URBANA BANK CO. Collections Total $158,674.84; Extra Cash, vestigation Irregularities on Books report, comprising more than 450 pages of written work, Roger F. Little, ceiver for the Urbana Banking comfiled his initial port of the institution's condition with the circuit clerk. The report lists in detail the assets and liabilities of the bank, and also tells of Mr. Little's since he was appointed receiver of the institution. The report, which required the labors of three persons besides Mr. Little for about six weeks, lists tivities only until June 15. This, cording to Mr. Little, is done be. to bring the totals to date wouldha consumed endless work and delayed filing of the report forever Since taking hold of the bank, the receiver has collected for the bank, in addition to settling offof $122,000. At present, $39,531 in cash is in the bank's vaults. Claims Offset Assets Claims amounting to are offset by slightly more than an equal amount in assets, the report shows. This, of course, includes both good, bad, and indifferent notes, which might or might not be collectable. Then, too, claims include many things now held in litigation. There are suits by County Treasurer Dale and Urbana Public school board in which is requested that their moneys be given preference when payments are made. Should the ceiver lose in these matters, the amount paid to the individual would be materially Just what amount per dollar will be returned to depositors cannot be accurately ascertained until all outlying suits are settled, Mr. Little said. The current report has been delayed because of Mr. Little's desire to have all matters in the best possible condition before submitting them for approval, it was said yesterday. Oclosed Oct. 17 The Urbana Banking company failed to open its doors on Monday, October 21, 1929, Mr. Little was named receiver about November 10 days after the bank's closing. State Auditor Oscar E. Nelson had previously assumed charge of the condition. Thornburn, president, was later found guilty of embezzlement more than $100,000 of the bank's funds, and was sentenced Chester penitentiary, where he at present serving as wash-room attendant. Many startling irregularities were unearthed after Mr. Little began his check the bank's ample, there was record showing that had been checked out of the Urbana School board's fund. Tracing down this matter, was found that it had peen applied on the payment of some notes and credited Thornburn's personal count: the whole transaction was simply manipulation of the books, and did not constitute valid withdrawal all. Real Condition Unknown The real condition of the institution will not be known until ceiver's final réport is and filed with the circuit clerk According to the auditor's figures, the assets of the bank when closed doors were This was of course balanced by an equal amount in liabilities, according to the books. Much of the latter, however, was in the form of moneys on deposit in banks, which were immediately taken over by those banks and applied to the Urbana Banking comobligations there. According to figures, the amount shown as credit in the Citizens' State bank. Champaign, By the issuance of clearing house papers, however, the Urbana bank had taken out $623.63 Champaign institution more than was to its credit there. Similar cases frequent throughout books. Report File The receiver's report is on file the office of the circuit clerk, and is open to public inspection at any In statement issued Mr. Little explained his apparent delay in making the Initial the bank's also told of would before the final settement depositors could be The outcome of suits so-called preferred depositors, the amount on hand the bank at the report, the amount which possible collect all these factors will to be considered before defiannouncement can be made, The amount of claims against the bank which the receiver will have to pay out another major factor which considered. may be settled quickly litigation at present under consideration is cleared

18. September 18, 1930 The Paxton Record Paxton, IL

Article from The Paxton Record, September 18, 1930

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VOTING TO CONSIDER THE SUM OF $32,000 From the Bondsmen of County Treasurer BONDSMEN WILL PAY Loss of Tax Money on Deposit in the Urbana Banking BULLETIN The committee the board following this Attorney Busch, reprethe bankers county: Noel, the Urbann board, and State's Attorney Roy Cline, agreed proposition offered the in with the County Charles W. the loss tax Dale had on deposit the bank at the time rests was, that the turn to the park board, which, was entitled 000 of the $162,519.77 involved, and Cunningham township receive $200 of the $82,000.00, originally agreed upon, the county would depend bank receiver's further is that from all the get to 70 per cent its money. Urbana, III., Sept. action the county board late acceptof from County Charles in of the county's claims against Urbana Banking for deposit there the time the failure to discovery that $12,000 amount the district and $875 to Cuaningtownship, necessitating basis computation. There really isn't anything to get about. simply of the members the board did not the situation claim that If was explained them clearly. under the that the whole deposit belonged the county. The money due the park district the amount originalallotted to the the bank failure, to cent There are 76 sureties on Mr. treasurer and lector and the change in the total after the money the district and township, material difIn figuring the terms of with the accepted per to the county bank failure. The the agreed pay repre20 and 30 per coming the of dividend from the receiver in final settlement.

19. May 1, 1931 The Daily Illini Urbana, IL

Article from The Daily Illini, May 1, 1931

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BANK CREDITORS TO GET $110,000 Roger Little Mails 10 Per cent of Claims in 2,500 Checks Creditors of the Urbana Banking company will receive about 10 per cent of their claims today as approximately $110,000 in 2,500 checks has been mailed out by Roger F. Little, receiver of the bank. The receiver has taken about 208 claims through the courts because of added liabilities. Preferred claims that have been approved by the court amount to $49,815.60. Additional claims amounting to $170,717.46 have been filed against the bank since it closed in October, 1929. These additional claims raised the total against the bank to $1,334,961.80. Approximately all of these late claims were approved by the court and some of them were named as preferred. HANSHAW IMPROVES Carl Hanshaw, taken to the County hospital suffering from injuries received when struck on the head Wednesday with a hammer, was reported as improved last night at the County hospital.

20. September 21, 1931 The Urbana Daily Courier Urbana, IL

Article from The Urbana Daily Courier, September 21, 1931

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KELLER REMAIN AS MASTER Announcement was made today Judge B. Leonard that Keller will re-appointed master chancery circuit court Champaign county for year term expiring October 22. 1933, and Elmo Smith is re-appointed probation officer. The of Adams court reporter been Judge Leonard stated that the quality of service rendered by these officers has with eral approval the and the public. He stated making these appointments that announced in the recent judicial campaign wish carry out the policies of Judge Franklin H. Boggs, and had Judge Boggs lived it practically certain no changes would have been made and each men would have re-appointed to these respective positions. September Term Convenes Judge Leonard made these announcements after convening the September term of court at o'clock busy session during the motion hour lasted until 11 o'clock. recess then being taken until o'clock this afternoon, when the grand jury impaneled and entered its secret investigations Harley John. of Champaign appointed by the court as foreman of the grand jury Attention was given the common law docket sufficient permit dismissal of the following cases by the plaintiffs: Irving Trust company. as trustee for Miller, Inc., The pany Parkhill. assumpsit. E. and Lillian Lair Lyle assumpsit. Calvin Kagan vs. the City of Cham. paign. trespass on the Roloff Walter keon, on the case (settled) Beryle H. Little. receiver for the Urbana Banking company and others, garnishment. Other common law orders were: Winifred Gates Percival. trespass the demurrer to laration Alice M. Sullivan Thomas Graw. trespass on the case; demurrer Wilbur Sullivan Thomas action and order. Rutledge Arthur motion by defendant leave to withdraw and rule on plaintiff to file bill of particulars. Clarence Brandruff vs. Harry. Grace and Howard Odell, trespass the motion for rule on plaintiff to file cost bond denied. Beulah Jarmerson Walter Hall. trespass the rule plead extended to Saturday, Septem26. Chancery Orders The following chancery orders were Glayds VR Lloyd Kimmel. divorce: allotted hearing October Morrissey Leigh foreclosure: final report of H. and his fee fixed at Fee Hamfixed closure; for re. set for hearing September Prudential Insurance Company and Clyde Levitt Gifford. foreclosure: dismissed Prudential Company of America N. H. and Francis Mineer. foreclosure: dismissed by com People Pearl Myrtle Fisher Campbell, Ellis Fisher and Marvin Feeley, bill abate nuisance; dismissed as to all defendants ing Feeley People Clara D. Holzer and Bes. dismissed Clara Holzer People H. Martin and Bessie Horstman, same; dismissed to W. H. Martin People Andrew Keusink and Clara Holmes. same; dismissed as Andrew Keusink People William Irwin and Myr. tle Jackson Peters. same; William Irwin People Elizabeth Briney and Durham. same: dismissed Elizabeth Briney Rachel Roughton Kenneth Roughton. dismissed by State bank of Cosad. Neb Farmers' Ellert Ackerman partition relief: dismissed as to Herman Eilert Investment and Building Fidelity Dewhirst et association master's report of sale Deficiency judgment for approved. against and Alta Dew. hirst. Hearing on motion for appoint of receiver continued to Sepment tember 24 Fidelity Investment and Building motion for Hearing