1.
June 19, 1931
Waukegan News-Sun
Waukegan, IL
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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.
2.
June 19, 1931
Waukegan News-Sun
Waukegan, IL
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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.
3.
July 28, 1931
Waukegan News-Sun
Waukegan, IL
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CITY ACTS TO PROTECT FUNDS
Difficulties In Collecting From Surety Firm On Funds In State Bank, Are Seen.
Difficulties in collecting $223,000 from the National Surety company, the surety firm on the depository bond of City Treasurer John Hogan to protect funds in the funct Waukegan State bank, loomed today as the council authorized Corporation Counsel William Behanna to continue action for recovery the money in cash and fuse payment tax anticipation and liberty bonds. Attorney Behanna has held conferences attorneys the National Surety company, sureties on Hogan's official bond of $500,000 in addition the $200,000 band depository bond. It was claimed that the company received $150,000 tax anticipation warrants and in liberty bonds from the state bank when the bond was first Waukegan had corporate funds in the State bank to the extent of $223,000 when that institution closed its doors. Attorneys of the bonding company agreed pay back the $150,000 in anticipation warrants and to supply the remainder of the city's balance $72,000 cash. Behanna checked with the city treasurer and could find only $43,000 in deposits traceable to tax anticipation warrant payments. the opinion of the corporation counsel that if Waukegan takes back $150,000 anticipation warrants will have the burden of offsetting the same against the deposit in the bank receiver named, involving the question as to (Continued on Page 2, Column 41
4.
August 4, 1931
Waukegan News-Sun
Waukegan, IL
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OF ELECTRICIAN ABANDONED
STATE BANK Carlstrom In New Ruling On Poor Relief DEPOSITORS LOCAL WORKERS SAYS COUNTY GIVEN WRIT His Swell Idea
STOP NEW
Plumbing and Building Inspectors Placed On HalfVisit Winthrop Harbor To Time Basis By Council As Halt Construction Latest Economy Move. Having Outside Labor.
Payroll cuts aggregating month saving the city Waukegan of about $425 were effected by the city council last night when the position of electrical inspector ing yearly abolished and the building and plumbing inspec put on half-time and basis The inspector's position formerly held by Edward Freberg. was when became known by the council that the job not required by state statute had been the common belief. Cities the size Waukegan may have an electrical commission they desire consisting of five men with an ex-officio head to be direct charge of all electrical inspection Mayor Peter W. Petersen predict ed today that the job will again be created stating that the desire the council to permanently abolish that position. Stephenson Makes Motion The move to abandon the trical inspector's job made by Alderman Stephenson who presented resolution this efwhich went through for unanimous The second step in the adminis tration's policy of place William Cliff. plumbing inspector. under the supervision of City Engineer Henry Bleck at an annual salary of $1.200 working on basis. The plan went into effect immediately on passage by the council last night Cliff's former salary was The third man hit by the econothe council was Russell Jack, city building who on half-time basis to draw $1.020 yearly. Jack, remain building department under Fred building missioner Jack formerly drew $2, 040 believed that these pay roll cuts are intended by the council to be permanent but only (Continued on Page 2. Column 4)
Organized local union workers, fol. lowing out their insistent that all local be used on Lake county jobs, were reported to have visited two construction jobs in Winthrop Harbor, 250 strong, and demanded that the work be stopped unless two Kenosha men employed there were let The jobs were halted once by the contractor in charge Non-union builders. in the Peoples Forum of the NewsSun today. voice their approval of the efforts the unions to have local men employed an all Lake county jobs but object to having house construction jobs stopped where nonunion men are employed. They maintain that the important thing at the present time is to as many as possible regardless of whether they are or They also that tremely hard induce people build at the present time and when success met in this respect, tractor. he union or nonunion, should not be molested on the
News-Sun And Others Granted Temporary Injunction To Halt Negotiations On Promissory Notes Held By Bank.
Another step in the thorough investigation the affairs of the Waukegan State Bank was taken today when the Waukegan News-Sun and other depositors were granted temporary injunction by Judge Edward D. Shurtleff of the Circuit court restraining the officers of the Waukegan State Bank, the National Bank of the and the Central Republic Bank & Trust Co. from negotiating, collecting or transferring the promissory notes of the petitioners until further order of the court. The petitioners are the Keystone Printing Service, Inc., (The Waukethe Taylor Wholegan sale Grocery Co., Inc., Weeks Waukegan and George Anderson Antioch The defendants are the Waukegan State Bank, the National Bank of the Republic and the Central Republic Bank Trust Co., sides individuals who are officers and directors of the institutions Retain Attorney. In co-operation with various other the Waukegan News-Sun several days ago retained Attorney William R. Behanna of the firm of Runyard & Behanna to conduct inquiry into the transactions of the Waukegan State Bank when depositors who are debtors the institution received that holds their notes and ment in full, irrespective of ies on deposit in the closed bank. Among the defendants named in the petition is George Turnquist. who carrying on the task of collecting the alleged to be the National Bank of the Repub-
It is the purpose of the action taken by the News-Sun air the financial deals that allow the Chicago bank the right to demand payment on notes without allowing depositors to set off at the closed bank against their notes. In the petition stated that the petitioners are informed that during the year 1929 the banking business was prospering because of the rate of interest and the demand for call money that the National Bank of the Republic in anticipation
(Continued on Page 2. Column 3)
5.
September 26, 1931
Waukegan News-Sun
Waukegan, IL
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GEYER EARNS $666 AS BANK RECEIVER
Norman O. Geyer, under indictment from the investigation the defunct Waukegan State bank. has profited to the extent of $666 in salary expenses since became receiver of the Second Northwestern State of was shown today bank his preliminary report. The report in that the bank had book showed value of $2,977,910 and owed creditors
6.
October 21, 1931
Waukegan News-Sun
Waukegan, IL
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WILL REPLACE. DECKER FIRM IMMEDIATELY
Head Of Old Established Law Firm Is Named By Auditor To Succeed Decker As Lawyer For Bank Receiver.
Confirmation of the report yesterday that one of the old established law firms the city, had been appointed counsel for Fred Brown Whitney, receiver of the Waukegan State bank, came today through the receipt credentials from State Auditor Oscar Nelson. Nelson admitted yesterday that Miller could assume the if he post, because his investigation the attorney had convinced him that he would ably conduct the legal affairs of the bank. The auditor was not inclined to make definite until he received Miller's acceptance. Succeeds Decker Miller succeeds of Decker & Decker of which Probate Judge Martin Decker senior counsel. This firm withdrew its own volirather than face period of litigation here and in Cook county courts. Due to the fact that Miller had cases scheduled for hearing before he to the work that lies before Confer Miller plans to hold conference with Whitney and with the Decker firm. Numerous records and briefs were compiled by the previous counsel for the bank Judge Decker agreed to turn all of these over to the Miller said that statements any dealing with the financial structure of the bank. that were not matter for adjudication the courts, would have come Whitney as his position, he viewed would that of legal advisor solely.
7.
December 11, 1931
Waukegan News-Sun
Waukegan, IL
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NELSON TO ASK SEPARATE TRIAL
State's Attorney Notified Today That State Auditor Wants Trial Alone.
Separate trial will be asked by State Auditor Oscar Nelson Saturday Woodstock before Circuit Judge Edto notice ward State's Attorney A. V. served on Smith. George H. Woodruff. former presiNational Bank of the den of the Republic, and O. Geyer, president of the Waukegan State bank that failed with deposits of 250,000, co-defendants with Nelson in this indictment charving em-
Col. Smith To Oppose Col. Smith said that he would resist the motion. Nelson, through his counsel, Attorney Albert Fink, claims that evidence in his behalf probably will against the other two dereact and that for this reason fendants there should be severance. Evidence from Woodruff and Geyer would be detrimental to Nelson, Fink also contends. trials would entail conSeparate siderable more expense to the county, Col. Smith said. Records Transferred Circuit Clerk L. Wilmot today completed the preparation of the which has be transferred record, left with it this to Woodstock, and to turn over to the circuit morning clerk McHenry county. Shurtleff expected to rule Judge is tomorrow on the to the indictment against William H. Miller, conspiracy in this also charged whose case is set for true bill. but Waukegan before Judge hearing in Shurtleff. county has The trial in McHenry (Continued on Page 2, Column 5)
8.
January 14, 1932
Chicago Tribune
Chicago, IL
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AUDITOR NELSON WINS SEPARATE BANK CASE TRIAL
His Plea for Early Hearing Denied.
State Auditor Oscar Nelson was granted separate trial yesterday by Circuit Judge Edward D Shurtleff at on charge in connection with the failure of the Waukegan State bank last June 17. The auditor lost his plea for an early trial after heated argument State's Attorney Smith of elected to try Norman O. Geyer president of the defunct bank. and George Woodruff for. mer the National Bank of the Republic of Chicago, before Nelson is arraigned. Geyer and Wood. ruff were scheduled to go on trial Monday, plea for in behalf of Woodruff was denied. Indictments Charge Fraud. indictments against Nelson, Geyer, and Woodruff charge con spiracy to defraud in with the failure of the bank the bank's closing there were deposits of $1,224,000 and only $38,000 in cash on Prosecutor Smith has charged. Two others named at the same time are trials. William H. Miller. former vice of the Chicago bank, be tried in Lake county by Judge and John Murray former vice presi dent of the is to be tried in county by Circuit Judge Ralph Dady David Joslyn Nelson. asked that Nelson be tried first since he is candidate for reelection and the trial of oodruff and Geyer may not end until after the primaries. He months will be spent in attempting to prove the insolvency of the Waukegan bank before its actual closing. as charged by to change his decision to try the state auditor
Denies Politics in Trial.
"Of course, you know this insolvency applies to politics as well as other the judge then, Joslyn, are busted. We're Smith leaped to his feet to that there was in his Joslyn his charge that there was politics in the The judge smoothed over the disAttorney George T. Bucking ham, representing made plea for severance in behalf of his which Expect Sheridan Dividend.
Floyd E. Britton, attorney for the of the defunct Sheridan Trust and bank, reported almost in and securities will soon be available for the bank's de positors. He made his report before Circuit Judge Michael Feinberg who Is seeking uncover assets hidden from the Britton discussed in detail trans actions between the Foreman National bank and the Sheridan Trust and Savings bank spiking rumors that in securities had been moved from the latter bank after its closing He said securi ties, as deed to loan of 780,000 moved after the closing as the deed Securities Up for Sale. of the securities $442,391 is now available for sale aid depositors. In addition, he said, there is $530,000 in on deposit with the Bank and the the judge quesMrs. Hannah Zuker 5329 Kento the Mrs. Zuker was as Hetty she reputed to have real estate holdings four and five million dollars. She told the Judge she was in default on all her properties and was on her sons for and she now lives on $20 The judge her to return this morning with her sons.
9.
February 9, 1932
JG-TC: Journal Gazette and Times-Courier
Mattoon, IL
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TRIAL IS DELAYED.
Woodstock, lay was encountered today in the scheduled opening of State Auditor Oscar Nelson's conspiracy trial before Judge D. Shurtleff. State's Attorney Smith of Lake counasked that the case be continued pending reorganization of the closWaukegan State Bank, the fallure of which resulted in Nelson's indictment.
10.
February 20, 1932
The Dispatch
Moline, IL
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DROP IF BANK
Waukegan, Feb. the defense of State Auditor Oscar Nelson wished him tried for conspiracy the failure the Waukegan State bank, Lake county thorities announced indictments him and five bankers would agaist be if the bank is reorgandropped ized and depositors of repaid. The reorganization yesterday the State bank would be consolidated with the Waukegan National bank within three weeks and reopened and Col. Smith, he would nolle prosse the Nelson and the others provided the depositors are paid dividend when the bank opens and the balance in David Joslyn of Woodstock, chief the Nelson would insist on but added that they claim trial would obstruct attempts the bank, one would reopen want to do that." Auditor Nelson, at his home in Geneva, declined comment. Nelson has been tried and quitted charge out of the bank's growing The others facing charges of their bank dealings President Norman closed bank, George ruff, and Miller, former vice president National Bank of the Republic and John Murray Conof Chicago, nors and Milton former vice of the Waukegan president bank.
11.
March 22, 1932
Waukegan News-Sun
Waukegan, IL
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LAWYERS START BANK
Prepare To List Assets Of State Bank For Petition To Be Presented In Court.
Lawyers today started their inventory of assets of the Waukegan State Bank preparatory listing them the petition that the receiver has been asked to file in the circuit court asking permission to sell all the sets to the Citizens' Bank Trust Company. The attorneys of the Lake County Bar association. who working on the petition, admitted that they had spent yesterday in outlining the legal data that the will to contain to permit the court to set date for the sale of the Waukegan State Deposits in Liquid Form Those associated in the organization of the new bank, which will founded of the assets of the Waukegan State and the liquid Waukegan pointed out that the institution, on its will have approximately 90 percent of its deposit liability in liquid form. This condition will prevail meet withdrawals which are expected in the first few days by the organizers who are prepared for such This will not exceed the of the organizers, one of the members pointed out, because of the heavy industrial support that the new bank. The lawyers working on the petition pledged are interested in the releasing of between $1,800,000 and $1,900,000 impounded money in the two banks immediately through the opening the new stitution, that they would exert possible effort in clearing away necessary legal steps that no time would lost in the opening of the bank.
12.
April 21, 1932
Chicago Tribune
Chicago, IL
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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.
13.
April 27, 1932
Waukegan News-Sun
Waukegan, IL
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DIVIDEND AT DISBURSED
(Continued From Page ity, but never developed and the time, exceeded 200 people. number of depositors with money coming discovered that the payment check would continue day after all were given out, which led them delay demand in hope that there would be no waiting days when they called for their money. Depression From the National bank learned number the old Waukegan National had opened accounts with the last June, were their checks This hardly expected, and from this was that the depression far Waukegan concerned has The large number of women waiting accounts verified draw their dividend indicated that the majority the heads of the housestill were employed. that the accounts were savings the housewife their children in school. Staff Work Heavy Ericson staff were tired when faced work this morning had been necessary for the them night order checks could distributed learned that any delay be fair to the the agreement was night prepare the for the checks newly from waiting one more The and due obligations tinued through the without interruption the dividend bursement, as this has connection with the accounts This work collection will have conthrough receiver order liquidate institution othe
Whitney Makes Statement Late yesterday statement sued by Fred Brown Whitney receivthe Waukegan State bank. which revealed the progress in that bank. The gist this statement, the first by the final reappraisal the bank had form being set down in pershape. Just he asserted. as this data he will present for approval and then decide whether he will file petition for the sale the assets The petition prepared some time ago and held for actual presentation the pending reappraisal under his direcpossible formal presentation Whitney completion the reappraisal that he The complete statement made by receiver follows: Some person, whose identity the Receiver the unknown Waukegan State Bank, informed that Receiver had had the press desk nearly week his for the sale the assets petition the bank and one article the that press carried was holding up matthe the inal trials July, when he stated cepted the the he the community taking without fear trust, and he had his criminal procivil ceedings never would. So far matters, he indifferent any suggested between disposition lation and any criminal the bank's assets prosecution. that the Receiver The fact for the has never seen of the assets the data which petition the upon completed must be the in buyers of the expense of assets. So many unauthorized and untrue have the press tions the result much deems proper ceiver the public what the outline far as the situation now concerned March for Previous several weeks, auditors of others than ploy detailed of the made reported their unaffairs have disclosed principals, the audit presented times the requested the Committee projected bank confer31st. but the prior no party conferences and the negocarried the the last the assets bank are the property the the because bank depositors, insolvent the hopelessly of the assets the iness concern of the depositors. the facts records session the Receiver are inspection depositor. an officer the Court in interested in and based such in and adopting procedure honestly protects depositors. On March 1932. Chicago represented the Receiver, behalf that they would bid sufficient pay the bank's preferred 100% general claimants, including depositors than preferred, cents the dollar, provided Receiver offer bank's assets for The preliminary that would not himself the until could about assets are worth. the expense, and largely behalf the proposed undisclosed purchasers,
14.
May 11, 1932
Chicago Tribune
Chicago, IL
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COURT ACTS TO OUST WAUKEGAN BANK RECEIVER
Circuit Judge Edward D. Shurtleff at Fred Brown Whitney, for the closed Waukegan State bank, to show cause by noon today why he should not be removed as Whitney prominent and son of former judge. Judge Shurtleff asked Whitney if he ever had asked court order directing the Central Republic Bank and Trust of Chicago to return $841,000 in securities. Whitney said he had and added the securities collateral for loan $450,000. The court then Whit ney not that and putting the Chicago bank in the classification of an Whitney asked why he had not against tors of the bank the ground they negligent liable to the depositors. Whitney said he had never heard of such action by receiver. He told court was ready to resign then, but was told to wait until today. It was brought out that Whitney had refused to consent to sale of the assets of the bank for 35 cents on the dollar reorganization committee which seeking to open new bank.
15.
May 15, 1932
Chicago Tribune
Chicago, IL
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ABANDON HOPE OF REOPENING WAUKEGAN BANK
State's Attorney A. V. Smith of Lake was of of the Waukegan State bank, there no further of ing the affairs and reunder Mr. that the trial Miller, with as result of the of the affairs shortly before the would go ahead in the Circuit court at WauNorman O. of the State bank, vice of the the Republic in Chicago indicted with Miller, but obtained separate committee of the petitioned Circuit Judge D. Shurtleff to his removal of Fred Brown Whitney as receiver. The member asserted they full confidence in Whitney that he had been removed chance to face those who alleged he was not making progress in winding up the institution's affairs. Judge Shurtleff will pass on the petition later.
16.
May 21, 1932
Chicago Tribune
Chicago, IL
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JUDGES CLASH OVER WAUKEGAN BANK CLOSING
Dady and Shurtleff in Receivership War.
A judges' war broke out yesterday in Lake county when Circuit Judge Ralph Dady entered an order voiding the removal by his colleague, Judge Edward D. Shurtleff of Marengo, of Fred B. Whitney as receivthe defunct Waukegan State bank. He reinstated Receiver Whitney holding that Judge Shurtleff acted without jurisdiction when he removed him ten ago. Judge Shurtleff replied that Whitney interferes with the of his appointee, John R. Fulton, a Waukegan real estate man and former banker, in of jail sentence for contempt of court State Auditor Oscar Nelson, who appointed to Judge Dady's has sided with Judge Shurtleff in the controversy. He filed with L. O. Brockway. Lake county recorder, certificate removing Whitney as receiver and approving the $100,000 bond of Receiver Fulton. Shurtleff Removes Whitney. Judge Shurtleff removed Whitney while sitting in Waukegan last week in Judge Dady's absence. His grounds were that Whitney had taken no steps to recover from the Central Republic bank of Chicago $840,000 in collateral which the Waukegan State bank posted on loan shortly before He said that should have the return of the collateral and given the Chicago bank in place of an claim certificate would have placed the bank on the same plane with deposJudge Dady returned yesterday from fishing trip, and read from the bench an order declaring that Judge Shurtleff had no jurisdiction in the bank receivership case even though he was sitting in Lake county. He ordered the order vacated, and ordered Whitney to continue to act as receiver. Judge Dady specifically set the bank before me," Judge Shurtleff from his home in Marengo, when he assigned to me the claim of Decker and Decker, original attorneys for the receiver, on the grounds that he was too closely connected to hear the Probate Judge Martin Decker of Waukegan, senior partner of Decker and Decker, was Judge Dady's fishing partner on the trip from which they returned yesterday. Threatens Jail for Whitney. When Judge Dady did that," Judge Shurtleff continued, set the entire bank case before me. will be back in Monday. There is nothing to stop me from sending Whitney to jail if he interferes with acts of the new receiver. Frank H. Just, Waukegan editor, and H. A. Smith, who are members of the seeking to reorganize the defunct bank as the Citizens Bank and Trust Company of Waukegan, yesterday that the full $400,000 capital of the new bank in paid in, and that they will be able to open on June 17, the first anniversary of the failure of the Waukegan State. Before the new bank can function, the the old one must petition the court for to sell Its assets to the new institution. The reorganization plan provides that Waukegan State shall re. ceive 35 per cent their deposits in full of their claims. Receiver has stated that he would refuse to ask permission transfer the the new bank. Receiver Fulton is studying the proposition and has made no statement of his intentions.
17.
May 24, 1932
Waukegan News-Sun
Waukegan, IL
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CONFERS WITH BOND TODAY
Whitney And Fulton Resign Receivership Of State Bank; Judge Dady Names Hulse As New Bank Plans Progress.
Elmer Hulse, realty dealer and today left for Chifor conference with State Auditor Oscar Nelson concerning his bond receiver of the Waukegan State bank. Hulse was appointed receiver late yesterday Circuit Judge Ralph Dady following resignations both Fred Brown Whitney and John Fulton. one concern will be to release the money to depositors as soon possible. will file the petition for the of the assets the bank compliance the court order. petition with Albert Hall. will filed soon as am qualified, Hulse said
Whitney Resigns. Whitney resigned rather than deter liquidation of the he plained that he had been informed that the state auditor was opposed to "The record is so complicated that of assets might have await decision by the review courts possibly great harm might done the depositors litigation over power, personalities, etc., your receiver has arrived conclusion so far as he concerned the proper procedure for him to rehe wrote Judge Dady. Whitney the that would take him few days to clear the court. It his particular desire to complete the attached department that this task can be ended and the securities Springfield be Judges in Agreement. There had been minor conflict opinions yesterday afternoon between Judge Dady Circuit Judge Edward Shurtleff. Judge Shurtleff had removed Whitney and replaced him with Fulton this order vacated by Judge Dady who restored Whitney receiver. Both jurists believed they held jurisdiction. The controversy crowd courtroom for the afternoon session, but the crowd was doomed because the two and Attorney Albert Hall, the firm Hall Hulse, where discussion of hour and twenty minutes This conference was interrupted twice, when Judge Dady went to the bench verdict in again they called Smith, the anizers of the new bank, into chamHall, who had served in an advisory capacity several times the for new declared the meeting the two jurists veloped nothing more than routine discussion, with both expressing the that their acts would benefit the depositors of the close bank. When the two judges the chambers Judge Shurtleff took the bench and Judge Dady sat back courtroom quietly conversing with friends. Miller Jury Dismissed The only order entered at that was the of the jury selected try William H. Miller, Chicago banker, and the Judge Shurtleff told the jury that Nelson had impounded the records of the bank and that these would not
(Continued on Page Column
18.
June 30, 1932
The Tuscola Journal
Tuscola, IL
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Brevities Illinois of
Scott and Miss both Peoria, overturned near when their car jured Bradford. during the in Cook county Weddings dropped 14 months 1932 first five recorded from the number cent during per the same period last year. with in co-operation Federal agents, Rock Island city and county established Casino raided the newly Rock Island and in men. Jr., only three years Hubert killed his shot and twentyMrs. Christine aunt, in East St. home at his parents' Louis. entered the masked bandits Three in Rockford. Seidler News Agency from the county the street across and robbed H. sheriff's office, and of $500. Conklin, manager, of East St. Walsh Thomas railroad employee, went home to find his "funeral" under tracks way found beside body of man had The been identified by five friends his.
E. Bogardus Shaw of Chicago, W. of Walden The brother tired founders of the one of the killed in fall was low Cab company, of his landing The from the fire escape thirteenth floor apartment. Leona Sutherland, Miss was killed outright and Miss Bernice Bryan. Cedar when hurt critically Rapids, concrete abutment their struck car Charleston. and overturned near awarded graduates were exercises at commencement degrees in Lebanon. McKendree college lives of the ChiWaldorf Bishop Ernest Latin, Methodist Episcopal of the cago area teach. commencement delivered the church and address. started by police. has been drive of Miss Margaret the death following school girl. in an Chew, crash. to prevent auto that car driven developed carried four persons George Hayes single seat. churchmen from leaders and slab Baptist Illinois towns southern neighboring to attend ceresembled Duquoin the 75th annimonies this of the First of the organization Baptist versary church of Duquoin, one of the in Illinois. oldest The Henry Lempke. Brown. allas John for serving one to in Peoria. confidence game operating farm outside from the honor escaped prison. The of the Stateville the walls attempts of two other prisoners to were Dr. Fred Jackman. since 1864. resident of Bloomington summer home apoplexy at his died of Doctor Jackman Ind. Bass with the state hoshad been connected Kan.: Jacksonville Topeka. pitals Iown. and Mount Ralph Dady Circuit Judge that the assets Waukegan ordered State bank closed Waukegan the June at public auction on sold at as Receiver Elmer the bank building. ters the court for Hulse had petitioned authority hold the president of Joseph Dudley Zook, Illinois Coal Operators' the tion, died of cerebral hemorrhage in to short time hospital at stricken while standafter he had been hotel in the state in the lobby ing who was fortycapital. Mr. in Highland years Declaring that officials of Calumet District No. are Union Drainage needless threetempting to drain from One Hundred mile covered street and Dixie highand the Calumet river. property way to owners of Harvey, through commitraising fund for an tee, are an assessment tion prevent $263,000. the reason the Stating that only death penalty was being withheld was defendant had thrown because the self on the mercy of the court, Chief Fisher Chicago sentenced Justice years George life in Joliet penitenthe murder of tiary for of Gary in Oak Park James Kelley March Within 12 hours after they the case jury of men given Peoria returned verdicts finding defendants guilty of the the Dr. James Parker. Three naping Sentences of found not guilty. specified for James each were years Claude Arlo and Menninger, alleged Stoops, leaders of the kidnaping ring: Joseph Pursifull. lawyer and politician H. who acted as the "go-between," five year sentence: Raymond years: Homer Stoops, years: Dwight Bartlett, and her son. together with Dean, seventeen, farm ward were acquitted. William Thomas and John Pingera Chicago to life for the kidnaping of Mrs. Gecht. Philip Sullivan, Georgia Imposing the the the principal memring that has been kidnaping the citizens of Cook county Both men were many Jollet to begin serving their taken to Fred years more than years leading died of heart his home He was prominent affairs the
19.
July 28, 1932
Belleville Daily Advocate
Belleville, IL
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CONVICTION OF DIFFICULT TASK
Lake County Fails In One Effort With the Acquittal of Former Bank Official.
WAUKEGAN III., July 28. Lake county's efforts to convict bankers of Waukegan and Chicago of responsibility for the closing of the Waukegan State Bank appeared more difficult today after the acquittal of William H. Miller The former vice president of the National Bank of the Republic Chicago was freed of charge conspiracy defraud depositors of the defunct Waukegan bank by jury which deliberated only 90 minThe vote was 10 to two for acquiton the first ballot. The trial before Circuit Judge Edward Shurtleff of McHenry county lasted five weeks. was the second tempt by Lake county to assign sponsibility for the failure of the bank in June, 1931 similar charge against State Auditor Oscar Nelson was dismissed by State's Attorney Smith cently Judge Shurtleff previously had freed Nelson of charge misfeasance in office Smith to comment on possibility that George former chairman of the old National Bank of the Republic, and President Norman O. Geyer Cashier M. Connors of the Waukegan bank might tried similar charges pending against them.
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20.
November 25, 1932
Waukegan News-Sun
Waukegan, IL
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ELMER HULSE OF REPUBLIC
Seeks To Get Back In Collateral That Chicago Bank Now Holds But Which, He Contends, Belongs Here.
Providing Elmer Hulse, receiver the Waukegan State bank. can show Circuit Judge Ralph Dady that the bank can finance suit against the National Bank of the Republic for in collateral held there, he will grant the receiver the right bring suit, the court indicated today. however, preferred claimants of the bank forced to finance portion the then the court will not grant permission for the proceedings, he National Bank of the Republic collateral the Waukegan State bank to protect $450,000 made the Waukegan bank 1931. It's Bank Property Some of the have in the bank contend that this entirely the property of the Waukegan State sent Chicago illegally by Norman Geyer, president the Waukegan State was posted collatprotect the without the knowledge consent of the board directors the Waukegan State violation of the by-laws of the The preferred claims the bank must honor dollar dollar aggregate approximately $322,000. Hulse advised the court, although the bulk this tied up in suits pending the supreme The session was an informal affair which than tied up the bank invited, attorneys interested in the proceedings. Over Deals Leland Neeves, of the firm Scott, McLeish Falk, Chicago, explained the deals within the bank prior to its and then went into the possibilities the suit against the Chicago bank, well Liberty bonds in the amount of $250,000 impounded indemnity companies protect these cerns that surety bonds for the of Waukegan and the countreasurer explained that he thought general depositors the would receive between and 35 cents the dollar the He stated deposit now, about third of the amount preferred creditors. Attorney Snyder, of LitchSnyder. for the that the in Chirepresented the difference tween dividend coud be paid, and without probably none. Neeves estimated the cost of such would range between $10,000 and circuit judge has the sole power to such
21.
July 12, 1933
Waukegan News-Sun
Waukegan, IL
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TO TRANSFER $70,000 IN MORTGAGES
Gov't Plans To Take Up Bank's Farm Mortgages Under Farm Credit Plan, ReHulse Believes.
The Waukegan State bank possiwill transfer $70,000 in farm mortgages the government payment under farm Elmer Hulse, receiver. said today Hulse received telegram from Edward auditor public asking for report the plan taking mortgages out closed restricted banks tried successfully and Illinois the second state in which the government will try the The used drawn from the construction Finance corporation. Pay Preferred Claims Hulse said he can convert the mortgages held the bank place position to pay off all preferred Once the preferred creditors are out the way the through the liquidation can the general depositors. have some hope, time moved. that bank will able to pay dividend general positors," Hulse Melvin Ericson. receiver of the National bank. of farm mortgages held were negligible Obtain Funds The sum was borfrom the Henry Morgenthau, in charge this work. stated that approximately farm tied up closed restricted banks Illinois. When mortgage purchased the the bank that directly to the ernment, the farmer ceasing closed and beginning with the United