98b6c64dFull suspension, Books examined
Other: Receiver later paid dividends to depositors; bank remained closed and in receivership.
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Run Closes Second Bank in Waukegan June Waukegan National bank, largest the city, did its doors today and was taken over the state office the of the board directors. run was made the bank terday after the bank had been closed. The National had deposits at the last
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SHUT-DOWN ORDERED BY BD. OF DIRECTORS MAY BE TEMPORARY, REPORT Move Is Taken To Protect terests Of Depositors Who Did Not Withdraw Funds, And Indications Are That The Bank Will Reopen Within Ten Days; First National Takes Care Of Heavy Run Of Withdrawals And Is Safe. To protect the interests of depositors who declined to withdraw their funds following the closing of the Waukegan State bank yesterday, the board of directors of the Waukegan National bank decided against opening the institution this morning in the face of vast horde of depositors who were waiting to get their money. Indications are that the bank will be reopened within few days. As word of the closing of the Waukegan National was circulated around town, vast crowds gathered at the city's busiest corner, Washington and Genesee streets, and terrific was started on the lone maining banking institution. the First National bank. Charles Nelson Steele, greatgrandson of the founder of the First National and at present the institution's president, radiated confidence he moved in and out among the crowds in the foyer, helping the people make out their withdrawal slips and smilingly promising that all would get their money. Contact with Steele caused many those who came to to throw their glips. step attempt to reason with neighbors in the who were. caught in the general financial hysteria. Money Brought In Huge amounts of breaking the record brought into the city yesterday when the Waukegan State bank closed, delivered to the First National today and with the exception of depositors seeking to withdraw. the situation calm and confident. Faced with heavy run that threatened the safety of the institution this morning. the Waukegan National directors decided against opening and called in H. Reimnational bank examiner out of the Chicago office the chief national bank examiner. Mr. Reimers was temporarily charge of the bank but was to relieved today by Harry W. Walker. national bank examiner. Mr. Reimers failed to any very serious consequences in the situation and intimated that in his opinion the would be reopened within few days. To Reopen Safety Vaults To avoid confusion the safe deposit vault in the Waukegan Safe Deposit company, subsidiary the Waukegan National bank, was closed the but will reopened as soon the hysteria subsides. There comparatively few people gathered about the Waukegan National during the H. Burnett, president of the Waukegan National, his home after the meeting and was reported to be considerably upset by the turn events. He was unable to make statement. The capital stock of the Waukegan National $250,000 and the surplus $150,000 according the bank statement of March 25. The undivided profits, net, that time were $26,845 and the bank carries serve The deposits amounted to with total assets $4,076,071.34. The bank building. furnishings and equipment are valued $248,915.10. List Stockholders Stockholders of the Waukegan National Bank and the number of shares credited to each for tax (Continued on Page 2, Column
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CIVIC LEADERS BEG PEOPLE TO SHOW COURAGE "We, the executive committee of the Chicago Chamber of Commerce, have an unbounded faith in Waukegan's financial institutions, and firmly believe that the situation is only temporary,' John Fulton, president of the chamber of commerce, declared today after an executive committee meeting at the Clayton hotel. confidence the future Waukegan's three banks, the First National, the Waukegan National, and the Waukegan State banks. was unanimously passed by the committee members the meeting, and depositors in any those financial concerns were asked keep faith with Waukegan and its future. Despite the hysterical rumors circulating through the city after the closing the State bank, and the clossing of the can National bank, chamber leaders feel that Waukegan will out of These rumors, believe, are absolutely groundless and will be proved false within the next few days. First National Makes Statement TO THE PUBLIC OF THE CITY OF WAUKEGAN AND LAKE COUNTY, ILLINOIS: We, the undersigned officers and directors of the First National Bank of Waukegan, state that said bank has been in business in the City of Waukegan, in the same for seventy-nine and upwards; that the assets said bank have never been in more liquid condithat they are at the present time; that the depositors will be paid in full; have adequate cash to meet any emergency. This bank was founded by Charles Steele, the grandfather of Charles Steele, the present president, has been known throughout Lake County Illinois as the "Steele" Bank during all of that period. Those who know the financial condition this institution and the men behind it, its record in the past, should public duty to this institution, and the City of Waukegan, assure people who are not so well acquainted with its condition and thereby restore confidence for benefit not only of an old, established financial structure but for the benefit of the people and the business men our city. THE FIRST NATIONAL BANK OF WAUKEGAN, ILLINOIS, Banking Corporation. By CHAS. N. STEELE, Its President. Attest: W. D. Secretary. HARDIE, WM. JONES. ALVAH ROGERS. CLAIRE EDWARDS, ALEXANDER BEAUBIEN, BERTHA M. STEELE, RALPH DADY, CHAUNCEY J. JONES, Directors.
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North Chicago News DALZIEL SOUNDS OPTIMISTIC NOTE Favorable Audit Quells Fears Of North Chicago Bank Depositors. Sounding note of optimism, W. R. Dalziel, president of the Lake County State bank of North Chicago, today declared that the closing of the Waukegan State and Waukegan National banks have had very little effect on depositors of the local bank. "We have had fairly moderate withdrawals during the past two days," Dalziel said, "but no heavy run is anticipated.' At 9 o'clock this morning when the Lake County State bank opened its doors, not one person was on hand to withdraw their money from the North Chicago banking institution, it was learned. Announcement that the Waukegan National bank had closed its doors this morning, caused some flurry throughout North Chicago, and small number of depositors made withdrawals before noon. Increased withdrawals today, however, were attributed to the fact that number of people became excited when they learned that the bank was crowded with people. President Dalziel stated, however, that one of the local industries paid its employes today and most of the business transacted consisted of cashing of checks. Directors of the Lake County State bank and number of the large stockholders all expressed confidence in the financial condition of the North Chicago bank. "Two weeks auditors made careful audit of the Lake County State bank," Dalziel stated, "and the report was most favorable. A note of confidence was expressed at noon today in the lobby of the bank when James F. Stiles, director, and President Dalziel addressed group of depositors who had intended to withdraw their money. Both men stated that the bank was in sound financial condition and depositors were in no danger of losing penny of their money.
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WAUKEGAN RUN FORCES ANOTHER BANK TO CLOSE The Waukegan National bank Waukegan, III., closed its doors yes terday following run which developed after the closing of the kegan State bank on the previous day. At the request of the directors the institution was taken over by the federal bank examiner. The bank had deposits March 25, last, capital and surplus of $150,000. Officials pressed the hope that an early would be The State bank, 5939 West institution with deposits of $80,000, was closed yesterday by the state auditor at the request of the board of The bank's capital was listed as $100,000 and surplus as Depositors of the Sheridan Trust and Savings have organized comof which is headed by mittee 25 B. Herbison to look after the inter ests of depositors. The committee has in the bank' will cooperate with the state and auditor in working out a plan of liquidation of the bank's assets. A similiar has or. by the depositors of the South Side Bank and Trust company The committee is headed by Eugene Abegg. Other members are Dr. Christopher S. John B. and Lewis F. Jacobson. will investi- at. torney. The the feasibility of early gate an dend for depositors and the possibil ity of reorganization.
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RECEIVER AT NATIONAL BANK Speed In Federal Work Indicates Re-Opening Plans Are Rapidly Nearing Completion. Another step toward the reopening the National bank was taken today when Melvin Ericson, appointed by the comptroller of the currency. arrived at the bank as receiver and expected to receive the assets the bank from Harry W. Walker, federal examiner, either tomorrow the next day It with the receiver that the officials. directors and citizens' mittee working the bank reopening. must do business. Ericson, son-in-law of Ambassador Charles G. Dawes. formeran official the Biflex Products company here and well informed on the in Waukegan which will be of assistance the bankers in the toward the reopening of the bank After conferences with leading financial in Chicago yesterday, Burnett, president. was more confident ever that the openwould be completed in about 30 days. The formation of committee leading business professional men and industrial heads was being completed today and all feel confident about the future of the bank. Several questions have been raised about why the 30 day delay the reopening of the bank, but federal banking explained today that until all legal steps have been taken by the there can no toward reopening bank. and in view of the reopening efforts with the Waukegan National, these steps are ing rushed along as possible. It was explained that when tional bank closed, even though only for the protection of deposiexaminer takes examines the assets of the (Continued on Page 2, Column
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RUSH PLANS TO REOPEN BANK Receiver Will Take Control Early Next Week And Reopening Will Start. Plans for the reopening of the Waukegan National bank moved steadily forward today with prospects of the actual organization for the opening being underway early week. Harry Walker, federal bank aminer, expects to complete the ceipt he is drawing up Monday Tuesday. The bank will then be turned over to Melvin B. Ericson, receiver, who will set up the regular receivers' books and the actual business of reorganizing or liquidating will be in order. All of that procedure under the national bank which that the funds of depositors be safeguarded before national bank is permitted to reopen While the preliminary legal steps are being by federal bank men, the process of making preparation for the reopening continued apace yesterday luncheon held at Glen Flora Country club at which industrial heads pledged support and confidence in the Waukegan Nationbank and its staff of officers and directors Eastern Heads Here Not only the local heads of the big were present but also of the industries with head offices in the east were by their was reported that several of these industrial leaders, after confidence in the Waukegan National, President Burnett and the official staff, pledged large deposits for the opening of the bank. While figures were not available. was reported that these deposits will aggregate near dollar mark and will be left dormant in the bank for long period of time. Bank officials and members of the citizens' committee are today more confident than ever that the Waukegan National will reopened safely All the big industrial men declared that at least two strong banks are an absolute Waukegan and they will bend every effort assist in reopening the Waukegan National As soon Mr. Ericson takes control of the Mr. Burnett and other officials the bank will called in to talk over the value of the assets of the institution.
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MOTHER OF BANK RECEIVER DIES Mrs. Eda L. Ericson Dies At Home of Son, Melvin B. Ericson, In Evanston. Work on the reorganization of the Waukegan National bank has been until Melvin B. Eriscon, redelayed ceiver in charge, returns from the funeral services being conducted today for his mother, Mrs. Eda L. Ericson. who died Wednesday night at the home of her son. Mrs. Ericson the widow Otto Ericson and was year resident of Chicago. She was 76 years old the time of her death at the Ericson home at 210 Davis street, Evanston. Funeral services were conducted this afternoon at the chapel in Rosehill cemetery in Chicago. Mrs. Ericson survived by eight daughters, Mrs. Harry Spearman, Miss Ruth Ericson, and Mrs. Dwight S. Defty, and five Elmer O., Norman W., Willard E., Chester F., and Melvin B. Ericson.
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WAUKEGAN NATIONAL OPENS FOR CLAIMS The doors of the Waukegan National bank were thrown open today Melvin B. Ericson for by Receiver since the bank closed the first time in June, to permit depositors to file for the their in later date. Those appay-off at bank today did pearing at the upon receipt of notices from Receivthem to call at Ericson the bank the notice, statement savings passbook other account, the bank. evidence of claim upon notices will be sent out each These several weeks and claimants day for to take heed and report are urged the bank on the day specified. at The action comes the natural course of business in clearing up the affairs of the closed bank and does way the efforts not hamper in any of depositors to reorganize and reopen the bank.
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thereof recorded May Sale Document 223331 Book for and fur praying and that thereupon court against the above defendants, returnable the first day of the term said held the Check State Illinois, the Monday 1931. and which suit WILMOT. Circuit Clerk Edwards Solicitors for complainants. LAKE CIRCUIT COURT OF LAKE COUNTY October Term D. 1931 Marcus Kagy Leon Jensen Nina Jensen his wife, Title and Trust pany, trustee Bernard Given, Chicago Title and Trust trustee No. 312174. Harold Shiensky, Bert Jones, Waukegan National Bank. receiver, New York Bond and Mortgage corporation, Harry owners. IN CHANCERY 27050 Whereas the requisite affidavit has filed my office. on behalf named complainant, the due that process cannot be served upon Notice therefore hereby given to the said unknown the filed his Com plaint in said Court the Chancery side thereof, and that an alias thereupon issued out said Court against the named first the the Court County the Court House Waukegan said Lake County the First Monday 1931 by and which suit still pend WILMOT Clerk Waukegan, Illinois, Aug. 28, D. 499-Sept CIRCUIT COURT OF LAKE COUNTY October Term D. 1931 Georgia Mae Rhodes Jasper No. 27912 The having been the Office of the Clerk said Court, notice therefore hereby giv. said above defend. Rhodes, that the above filed her Bill Complaint said Court the Chancery and that summons thereupon issued out of said Court against the above the first of the Court Lake be held the Court House Waukegan said Lake the First Monday and which is still pending. Clerk Waukegan, Illinois, Aug. 25 D. EARLE H. GRAY SIMMONS, Complainant 26. Sept. 2-9-16 TREASURY of the Comptroller of the Office Currency Washington, August 1931. Notice is hereby given to all perclaims against National Waukegan, Illinois, that the same must presented to Melvin B. ErieReceiver, with the legal proof thereof within three months from this date or they may be disallowed. W. Comptroller the Currency. 31, Sept. Oct. Nov. COUNTY LAKE CIRCUIT COURT OF LAKE COUNTY October Term D. 1931 IRENE HARRISON JOHN HARRISON IN CHANCERY NO. 37909 Requisite affidavit having been heretofore in the entitled cause, Notice therefore hereby given the John Harrison that the above named Complainant heretofore filed her Bill of Complaint the Chancery that upon issued out said Court against above named defendant, returnthe first day the the Circuit Court Lake County, be held Court House in WaukeFirst 1931, and which still pending. Clerk Waukegan, Illinois, Aug. 25th, Complainant's Solicitor 484-Aug. 26, Sept. 2-9-16 COUNTY CIRCUIT COURT OF LAKE COUNTY October Term D. 1931 Marcus Kagy Robert Luke and Miriam Luke. his Chicago Title and Trust trustee, Frank E. Bundy and Della Bundy, his Harold Shlensky and Chicago Title and Trust Company, corporation, as trustee under 313398, James and Dixon, business and Dixon, and Harry Lasaine. IN CHANCERY Whereas the affidavit duly in my office. on the above the defendants, Robert Luke and Miriam Luke, his Frank Bundy and Della his wife, found Notice therefore hereby given said defendants. Robert Luke Miriam Luke, his wife, and, Frank Bundy and Della his wife, that the filed his Bill Complaint said Court on the Chancery thereof, and alias thereupon issued out said Court against defendants. first day of the term the Circuit Lake County. held the Court House said Lake County, the First Monday of October 1931 as by law required, and which Clerk. Waukegan, Illinois, Aug. 28, D. Campbell, Clithero & Fischer, Complainant's Solicitors 2-9-16 CIRCUIT COURT OF LAKE COUNTY October Term D. 1931 Marcus Kagy Robert Luke and Miriam Luke, his wife, Chicago Trust pany. trustee, Samuel Sevin Harriet Sevin, his wife, Anton Grobelch, doing business Glen Flora HardCompany, Aigner and Harold IN CHANCERY 27049 Whereas the requisite affidavit has duly filed in my office, on behalf above complainant, the Luke Miriam Luke, and Aigner, on due inquiry cannot found so that process cannot served upon them. Notice therefore hereby given the said Robert Miriam Luke, his and Aigner, Complainant heretofore filed his Bill Complaint Court on the Chancand that an summons against the defendants, returnable on the first term of the Circuit Court County, be held at the Court House Waukegan said the Monday is quired, and which suit is still pending. Waukegan, Illinois, Aug. 28, Campbell, Clithero Fischer, Complainant's Solicitors. 2-9-16
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JUDGMENT TOTAL SETS A RECORD $45,052 In Judgments Confessed Today In Behalf Of Three Banks. Judgments today were confessed in the circuit court in behalf of three banks against former bankers and merchants in the amount of It was the biggest single day for judgments in some according to records. Most of the judgments were confessed by Melvin Erickson, receiver the Waukegan National and Fred Brown receiver of the Waukegan State Bank. Only one was asked by First National The tions indicated that the receivers intended to clean up the debts owed to the banks the way notes. Those asked by the Waukegan State were follows: Gibson and John Murray Connors wife and and $713.75: Lake County and Webb and H. Rubin The Waukegan National brought the judgments: Fred Petitclair $742: Jacob Grahek $279; Harold Blasius and M. H. Rubin $4,950. The First got judgment of $18,against Joseph Oltusky.
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Frank G. Behringer Drops Dead In Home STILL WORK ON BANK OPENINGS Leaders In Effort To Open Institutions Give Further Data On Assessments. Conjecture on the part of residents interested in knowing which bank building would house the reorganized Waukegan National and Waukegan State banks should the plan to reopen the institutions today brought no definite from those working on reorganization. From their guarded statements presumed that would utilize the building best suited to their purposes and the conditions brought about by such merger. They did, however, their attitude on stockholders In the pointed that the assets of such combinawould assure every depositor dollar for dollar disbursement their claim there would be no necessity for an the other hand should the assets fail reach this point would fall to the stockholders to make up this deficit. On the basis of the present plan, there would sufficient resources assure to creditors without an assessment. Meetings were in progress in Chicago and Waukegan well today the aim to hasten the opening of the institutions.
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ALSHULERS START SUIT 15 Insurance Companies Are Named In Suits By Concern Which Lost Possessions In Alshuler Building Blaze. Fifteen suits. totaling of were brought today circuit court by Attorney William R. BeRunyard against 12 insurance companies behalf of the Milwaukee Mill Supply The firm had quarters in the old Alshuler building on Spring street structure burned October for complete including the rags that stored there which were owned by the Milwaukee Mill Supply company. stated that officials of the company contended that the sustained $70,000. He declared that there such wide difference of opinion on the loss that the insurance companies had indicated wish to settle for about $40,000. Tied Up Bank All these indebtedness the Milwaukee Mill Supply company have been tied up through court action of Melvin Ericson receiver the Waukegan National bank. claim of approximately Attorney Albert Hall member counsel. stated that the companies did not seem satisfied at present amount estimates loss. Behanna stated that all of the companies which was at written not sued. dicated that there would further suits against these companies in Wisconsin. Court Costs Run $150 The court costs paid the clerk in $150 The bank took the action to protect money due on The fire burned for weeks after the day the blaze demolished the four story structure Firemen the unable extinguish the smouldering fire the mass of rags that slowly burned up until few The burning rags delayed the task of removing the debris.
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OBTAINS JUDGMENTS BY BANK RECEIVER Suits on debts and judgments totaling today were obtained in the circuit court Attorney Bairstow, counsel for Receiver Melvin B. Ericson, of the Waukegan National bank. The largest judgment was for $9,800 and was against Rubin. debt for $5,000 was filed against Sarah, Abraham, Benjamin and Nathan Diamond in behalf of the bank. These four persons, Bairstow said, guaranteed the payment of the note the bank for Diamond Iron & Metal company, now bankrupt. Those against whom judgments were confessed included: Milton Voorsanger, $900; William Schreck, $3,500; Harvey W. Miltimore, $2,600; Frank and Barbara Murphy $4,600; George Wutzler, $375; and Ellsworth Metcalf, $515.41.
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DEPOSITORS TO MEET TONIGHT All Those With Accounts In Waukegan National Bank To Gather At City Hall. Meeting of depositors of the Waukegan National bank has been called for tonight the city hall o'clock at which it understood the the organization of the proposal new bank will be discussed fully with some the heavy depositors expressing their position. From what be learned it to harmony session, fully get the details before the depositors that they can learn first hand the posiwho have been intion of depositors directly and with the proposal for the new Circuit Judge Ralph Dady yesterday set April the last day for filing claims against the Waukegan State bank. Fred Brown Whitney The filed the list these creditors yesterday and unless objections made on before April these stand proven by the court. claims in this classificaThe total tion reach $55,228
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INDICT PRESIDENT OF CLOSED INDIANA BANKS AS EMBEZZLER Michael Kozacik Jr., president of the defunct Indiana Bank of East Chicago and the First Indiana State Bank of Gary, also closed, was indicted by the Lake grand jury at Crown Point, Ind., on a charge of Judge Mar tin Smith set his bonds at $20,000. of $95,000 in bonds, made as collections by the bank for certain in which Kozacik was interested. At Waukegan State's Attorney A. Smith of Lake county announced yes. terday that he would insist upon trials for two bank case defendants next Monday if the proposed Citizens Trust and Savings bank at Waukegan is not opened by then. The proposed bank is being planned to take over assets of the closed State and Waukegan National banks. The defendants are George Wood ruff, Chicago banker, and Nor man O. Geyer, former of the Waukegan State bank. Their cases are scheduled before Judge Ed. ward Shurtleff at Woodstock On of their cases, the tor said, the charges against State Oscar Nelson would be tried. Today Judge Shurtleff will sit in the Waukegan to.set a date for trial for William H. Miller, orginally indicted with Geyer, Woodruff and Nelson.
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FOR DEPOSITORS 20 Percent Dividend To Be Distributed Tomorrow By National Bank Receiver. One half million dollars will be given tomorrow to depositors Waukegan National bank who have waited since June 18 for their savings. announcement that the 20 percent dividend would be tomorcame from the receiver, Melvin Ericson. late today, after he heard from Washington. This will be spread among close to 7,000 depositors, it was indicated. The dividend checks will be receivable the bank during the usual banking hours. will be necessary for each depositor produce the receipt the time proof claim was filed, and in order facilitate handling the naturally large number of perwho the bank during the first days, understood under circumstances checks be issued to any person does not produce this of this $500,000 to dustrial but individual also will profit to extent. The matter finishing the clerical work will be heavy task, the employes of the receiver admitted that there would be into the night in order to the dividend to the public. At the same time was understood that the receiver the Waukegan State bank. Fred Brown Whitney, would unable give decision plan file petition for the bank to the Citizen's Bank Trust tomorrow Whitney has delayed the absence his auditor, who was the the study he decided his course toward filing the petition for sale.
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AND Lake Bluff Orphanage Also Given $66,650; Park Board Receives $10,000 In Will Of Prominent Woman. Appraisel of the estate of the late Emily Moulton. of Grand avenue and McAree today disclosed $218,951.45 net estate that sum going to semi-public institutions public institutions. The and nephews received but the 000 and on this they will pay $270 in tax to The portion willed the public untaxable Park Board Benefits Mrs. Moulton the local M. the and the Methodist Deaconess Orphanage. Lake each. The Waukegan Park board the cipient $10,000, according the which in the form real estate on McAree road, where the old Moulton homestead stood. In real estate she left $14,000 and bonds, notes, stock Of this last was assessbonds the Waukegan the bonds. addition there were erous personal loans Waukegan residents, but all of these were secured by trust deeds. In cash the widow left accounts in two banks, both are closed. the State had $31, Waukegan National had $1,717.58. Costs $10,000 The gross $229,684.24 but costs were estimated $10,000 and the bills incurred for funeral expenses, nurses and hire during her last illness represented another $732.75. The special bonds of the City were listed face value with the notation by the praiser, Attorney John Munro, Highland Park, probably would impossible realize value due default payments by property The nine nices and nephews left $1,000 Nellie Wiard, Glendale, Cal. 515 No. Sheridan road; Mabel 817 Oakley avenue; Cora Foster, Providence, George Yager, 320 Madison street; Margaret Paxton, Kansa City, Mo.: Grace, Winans, Sycamore, and Eliza Kelsa of St. Paul, Minn.
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20 PER CENT IS ASSURED DEPOSITORS Second Dividend For Those It Waukegan National Bank Certain Before Christmas Checks In Washington. checks for depositors the Waukegan National bank that failed to open doors for business June 19, 1931, today arrived the office of the comptroller of currency from Melvin B. receiver of the bank. The checks approximate $500,000. which will be released the form dividend by the Waukegan Na tional bank prior to December 25. announced. Check Before Distributing The comptroller' office re check of these claim: and affix signatures a6 part the roatine before possible to send them back the bank for distribution among the Due to increased in the of fice the comptroller is possible that will take week of prepara tion before livident checks can be dispatched to the receiver of the bank. This is the second dividend of 20 per cent, give the total disbursement by up per cent to come from the National bank the second be possible, and that hoped to the checks the hands of the positors before Christmas. Assets Intact While no confirmation could received. there no records close of the assets such stocks, bonds, real including the Waukegan National bank build have to make these dividends possible. can be sumed that these assets are intact and held waiting more favorable realty and market while dividends paid collections from debtors the bank. The first dividend paid in April weeks elapsed fore the bulk of the money reached the depositors, large of group their leisure for their part of the dividend