5366. Security Savings Bank (Waukegan, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
May 1, 1927*
Location
Waukegan, Illinois (42.364, -87.845)

Metadata

Model
gpt-5-mini
Short Digest
cec22bb5

Response Measures

None

Description

Newspaper articles describe the Security Savings Bank being in receivership and its building sold by the receivers. No article describes a depositor run; instead receivers were handling disposition of assets, indicating the bank suspended/failed and did not resume. Some OCR text in Article 2 references a 1936 date which conflicts with 1927 publication — likely an OCR/context error; primary contemporaneous evidence (May 27, 1927) documents receiver sale. Classified as suspension_closure (suspension with permanent closure/receivership).

Events (3)

1. May 1, 1927* Suspension
Cause
Government Action
Cause Details
Bank placed in receivership (court/receiver action) and operations suspended; receivers handling sale of assets and building.
Newspaper Excerpt
Purchasers of the Security Savings bank building today took title to the building by turning over $111,000 to the receivers, the First National and the Waukegan National bank.
Source
newspapers
2. May 27, 1927 Receivership
Newspaper Excerpt
$111,000 IS PAID OVER TO SECURITY BANK RECEIVERS ... Purchasers of the Security Savings bank building today took title to the building by turning over $111,000 to the receivers, the First National and the Waukegan National bank.
Source
newspapers
3. July 20, 1927 Other
Newspaper Excerpt
Withheld Deposits ... the defunct Security Saving bank. is charged, cancel checks be presented... charged that on Sept. 21, 1936 when Security bank failed more than $2,000,000 tax payers money was on deposit certain Waukegan banks;
Source
newspapers

Newspaper Articles (2)

Article from Waukegan News-Sun, May 27, 1927

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Article Text

$111,000 IS PAID OVER TO SECURITY BANK RECEIVERS Title Taken Today by Combine of Purchasers Who Are to Complete Structure. ARE READY FOR BIDS Purchasers of the Security Savings bank building today took title to the building by turning over $111,000 to the receivers, the First National and the Waukegan National bank. The check was tendered by Attorneys E. R. Parnaes and Nathan Blumberg. This completed the deal that started a month ago at a receiver's sale where Charles Jacobs, Sam Seidenfeld and Theodore Goldsmith bid $121,000 for the uncompleted structure. Since then C. E. Staley, president of the People's State bank, purchased a one fourth Interest and the building while the bank signed a 25 year lease for the main, vault and second floor of the building. The building will now be rushed to completion. It is likely that Alfred Alohuler will be retained as the arch. itect while bids will be opened within few days. The construction stopped last Sep tember when the Security bank


Article from Waukegan News-Sun, July 20, 1927

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Article Text

By WILLIAM CARNEY International News Service Staff Correspondent Copyright 1927 International News Service Paris, July Carol, who his rights the throne of Roumania for the love of hopes be permitted to return Bucharest attend the funeral his father, King Ferdinand. The prince informed the International News Service today. when seven hours after the death of the king. he from the News the first his father's death. God! What's the news?" queried the prince, as the InternaNews shown into the salon of the prince's Neuilly "There has been swarm of journalists outside the house all morning and I-thought something was the said prince. tried to get touch with the Roumanian lega tion but they didn't answer the teleThe correspondent then the prince of his father's death Walking and fro excitedly, with perspiration from his brow, lighting frequent cigarettes and stamping them frequently the prince extremely queried the correspondent will await word from my family." said the prince. "and will certainly go the funeral unless they tell not think will be allow to enter the country The prince said that on last Saturday he had seen his sister. Eliza beth, wife of the of Greece. "She had been advices from Bucharest and told me father had lost weight but she thought would prince said. am glad she saw father before the As the prince made this last mark. there note of regret his voice. the regret son has not permitted to be the of his Prince Carol's emotions were pat. ently those prompted by grief the death of his father, who had been on friendly terms with even though forced take disciplinaction against him. There was trace of regret that is not assuming the throne Prince conversation. His altogether that of son lost his The correspondent recalled that during the with Prince Carol some months ago, the prince asserted that his father had led unhappy life since had under the domination political The prince display today hopes that he might his father to such unhappy estate. When the prince bade the correspondent farewell he was still greatly agitated. Mme. the titian-haired beauty, whose caused Prince Carol to abandon his rights to the throne. received the correspondent when he first called at the villa. She appeared negligee and announced that Prince Carol would come down soon he had finished dressing. asked for news, and told of the king's death. replied calmly: don't think can be true, for have received no news At noon legation officially notified Prince Carol of his father's death. With tears his eyes and his voice faltering. Prince Carol said: "They had believing all along that father's unchang. Thinking not serious didn't go back. thought father would for me he knew his was really critical." At o'clock Prince Carol had not received any from Queen Marie any member his family began to lose hope that he would asked return for the funeral. He retired his salon, his red with and ders was not to be disturbed today. Prince Carol realizes that the preshostile to him and since has received word from his family. his only chance SIFTING CHARGE SHORTAGES (Continued From Page One) Park, chairman of the finance committee of the board of supervisors, and George Hargrave, head of the Hargrave Secret Service agency, of Chicago. In the group as well H. W. Held, who audited the Security accounts. He will be called upon, presumed, to show where bonuses paid Bracher and former Treas urer Ira Pearsall by the Security. Government at Stake? In Judge Edward's charge to the grand jury he said: revoltnig murder committed. woman raped, house burglarized robbed or some other felony perpetrated, there is properly indignation and protest the the law-abiding citizens part everywhere, but in the final analysis few are directly interonly people ested, and punishment of the offender await routine procedure. the case that will be presented you something more Not only has crime committed, but faith and confidence betrayed officials who the people form government. Our under our very life threatened. representative government, which our forefathers fought, bled and died perpetuate challenged in conspiracy, bezzlement and bribery are allowed prevail. "Every public official. honest as placed under well The great philosopher Epictetus said four years beChrist 'the swarm can fore better than the bee. We be no nation can be this day say, better than the individual. of citizenship to clean the first duty from our own before complaining about neighbors ing to do the court continued read. Talks of Charges is charged and evidence will be to the effect that presented you township official. (George Bairstow. -supervisor) elected to position trust, has violated the trust imposed him his fellow citizens, and em bezzled $50,000 from Waukegan township: certain county treasur ers, honored by their fellow citizens be the and custodians of many million of have betraytheir and by entering into criminal conspiracy with other parties have for period of more than five years been grafting and robbing the taxpayers of this returning to Bucharest is through of the people in his favor. He not hopeful of such Sends London, July George sent condolences today Queen Mario upon the death of King Ferdinand. The British court ordered into mourning for weeks. Report Martial Law Berlin, July reports were here today that martial law has been declared throughout order preany disorders the death of King Ferdinand. The army expected to instruct to take the oath of allegiance to King Michael today. The body of King Ferdinand has been embalmed expected that will be transferred from Sinala Bucharest today, lying in state in the royal palace there. Wonder About Successor Vienna, of death King of aroused keen interest throughout central Europe today to the ques tion royal succession The new titular head of the Roumanian state five year old Prince Michael, created heir appar on Dec. 31, 1925, when his father, Prince Carol, his rights to the succession. love affair led to Carol's action. He had become infatuated with beautiful woman and for sook his family to go to Paris to live her. Recently It had been reported that Carol would return to Bucharest for family the arrangements for the trip fell Queen Marie had been her husband's almost constantly since the fatal turn ten days ago. Queen Marie Jugoslavia, daugharrived from Belgrade week Princess another arrived county. stealing from the very tax payers who elected them. "Evidence will be presented proving conclusively that conspiracy has been underway for several years this county by failing to account for interest on large deposited the banks. In one case particular, the defunct Security Saving bank. is charged, cancel checks be presented, showing conspiracy between bank officials and the county treasurer, in that the regular two cent ahowed by law was paid county and on the same day per cent credited to the ac count of the treasurer. charged that large sum of money, $100,000, taken from the county treasurer's ofice violation of the law and sent Kansas over five years ago, and that since that time criminal between these and certain banking officials fake receipts were used covering up the defalcation. Withheld Deposits furtherance." the judge continuread, this conspiracy will shown that on Sept. 21, 1936 when Security bank failed more than $2,000,000 tax payers money was on deposit certain Waukegan banks; money that should have been turned over the various municipalities months before, and that by son thereof these taxing bodies were compelled to borrow money meet their current expense. detail matters to you for the purpose of showing the of immediate Every taxpayer interested. taxes are fast becoming burden, and every wage earner and home owner who saves enough to pay taxes, entitled know that by this conspiracy and his burden been increased "The law plain; it the judge one at this time can be heard say that they were ignorant of the no opinion of any attorney gen eral other lawyer necessary elucidate the opinion of the supreme court Illinois the case of the People (Carl Westerfield, treasurer Lake county 1910sued for interest on deposits converted his use) that went to court resort appeal from this court. That court said in language 80 plain he who runs may read that any and all earnings of the county treasurer to the county; that he the trustee for the people all interest or other emoluments of the office belong to the Tried One Skipped "In the period that have occu pied this bench (14 years), has been my unpleasant experience criminally two treasurers from Lake county. another still gitive from justice, and now are called upon two more. not the judge read, "with the payment any sum sums the county. that will be determined in civil proceeding. and you have not right consider in any degree whether or not the can will be made. You must not consider the effect of your action upon any the were responsible for them when they signed the have right consider the effect of indietment on them. will be allowed your while pursuing this tion, and feel my duty specifically warn you that you must disregard the newspapers. Certain articles have appeared for the purpose educating the public of the belief the opinion this matter should be compromised, and undoubtedly more follow as this continues. "These articles but the pression an Individual opinion and not an unblased one that You will notice from the list bondsmen given you that may possible these articles are inspired the wish to compromise on part of the owner the paper. Your Duty" undoubtedly will be proached others interested in the outcome that investigation. charge you assert your manhood, do your duty to your country and Lake county: do not consider the effect of your action: do not afraid of reaching into high places; the line and let the chips fall where they may." the court declared near the conclusion of his He closed by stating that there $500 penalty grand secrets that juror any body and stated that within their province to indict or not States Attorney Smith took im charge the jury which composed William Melberg. Thomas Graham, Long Lake. Wauconds, Russ of the village of Lake Villa, Charles Webb and Ira Sim Antioch. James Welch, former from Newport Davis and George Fincutter, Dick Mundelein, Volo, Harry Stanley Jason Cook, Zion, AlshuKennedy, Taylor, Harold Ames, McKinney, North Chicago, Sidney Burridge, Lake William Witten, Highland Park, Harry Clary, West Deerfield. and Miles Lamey, Barrington newspaper lisher. Defendants Absent Of the cases, all that Col. Smith proposes present. one George Bairstow, former feated by Supervisor Matt Dilger the last township election charged with in money He and bondsmen, Jerry have been sued the circuit court the amounts. Hussey has turned over Dilger meet his current expenses the remainder understood, but holding off cause he believes Bairstow should meet proportionate share. other case, that of the $106,000 county embezzlement, there are five defendants: Treasurer Roy Bracher, charged sending to Eureka Kansas bank in 1922 to be posited there. Ex-county treasurer Ira Pearsall, charged with covering up the Bracher shortage Clark Nye. formerly cashier of Eureka, bank that suspended business and re-opened with new board of directors and under new charged the $100,000 and depositing but $100 Bracher's Harold Martin, former vice president of the bank, charged with inducing Bracher send the Nye And Caleb Busick, Winnetka, oil stock charged with introducing Nye to Martin assisting inducing the treasurer to send the money Kansas. What Jury Will Hear Witnesses presented by Col. Smith will tell the grand jury, the state's originally outlined that The First National Bank of Eureka, Kas., was in bad circumstances 1922 due alleged embezzlements Clark its cashier. was later indicted federal grand jury. Nye Busick were close business friends and Busick went to Martin who turn went to Bracher and suggested the sending of the to Nye. Bracher sent the money Nye admitted receiving $70,000. to Col. Smith, and him Martin and Busick for the other $30,000. admitted sending the money, admitted that had aided him keepcovered from the eyes of the auditor, but denied that there had been conspiracy on part of bankers to assist covering the shortage stated he kited checks get through audits. May End Today The grand judy may complete work today This, doubtful. Burnett, Dalziel, Staley the three bankers, have had access the old Security records. Held. the auditor, audited these. Farmer were old employes of the bank. They ft believed, called upon substantiate the charge of the prosecutor that Bracher and Pearsall received emoluments for depositing money the Security, said to been shown the record that institution. Vecore the man who made the complaint to the and was given the details. Sims can state he conducted the audits and that certified to him K. bogus documents being given him to cover the shortage. Supervisor Matt Dilger and Auditor Sims will also be called upon the Bairstow case. There will be no other witnesses in this matter, believed. Edwards Statement Discussed Attorney Ralph Dady refused discuss charge the grand jury Judge Edwards. his statement eliminate him trial he asked with the implication that the outspokemight be considered prejudicial the cause the defendants. He refused to discuss It. just in am to counsel for Roy Bracher." declared that he would decline further statements. Dady and Attorney George Field, for Martin, were both In court the time of the charge. Judge Martin Decker. of the probate court, was also Interested listener. The room was sparsely filled. For once there were business men present rather than the usual rabble of thrill and curiosity seekers who trample each other getting first seats at rape Deputy Charles Krueger was placed charge the jury, but Sheriff Law. rence Doolittle. selected the speclal venire, which represents the high-