5399. Zion Bank (Zion, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
private
Start Date
December 2, 1903
Location
Zion, Illinois (42.446, -87.833)

Metadata

Model
gpt-5-mini
Short Digest
0d2f2119

Response Measures

None

Description

Multiple contemporary articles (Dec 2–5, 1903) report the Zion Bank closed and placed in the hands of court-appointed receivers; the bank is guarded and being examined by receivers. There is no clear description of a depositor run prior to suspension. Cause of suspension is federal receivership (government action). It is not stated that the bank reopened, and articles emphasize receivership and closure.

Events (3)

1. December 2, 1903 Other
Newspaper Excerpt
The receivers appointed by the federal court began today going over the books of the Zion industries ... the Zion Bank is closed and strongly guarded by deputy marshals and 'Zion Guards.'
Source
newspapers
2. December 2, 1903 Receivership
Newspaper Excerpt
The order of the court compels Dowie to appear in court December 11 ... the receivers, with their attorneys, and Custodian Redieske ... went out to Zion City to serve upon Dowie the notice of the receivership.
Source
newspapers
3. December 2, 1903 Suspension
Cause
Government Action
Cause Details
Federal court appointed receivers for Zion City and the Zion Bank (receivership/bankruptcy proceedings); bank closed and guarded by deputy marshals and custodian Redieske.
Newspaper Excerpt
Zion is in the hands of a receiver ... the only change is found in the fact that the Zion Bank is closed.
Source
newspapers

Newspaper Articles (6)

Article from The Savannah Morning News, December 2, 1903

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Article Text

Prophet Dowie of Zion City has the advantage of most bankers. He scolds his followers and forces them to put their money in his bank, on pain of being fired out of the settlement. A day or two ago he preached to them, told them he needed money and that they must furnish it. "Put every cent you have into Zion Bank," he said, "and I assure you it will be safe there. But what if the bank should fail? It would be a comfort to all of my people to know that it was spent in the service of the Lord!" And, odd as it may seem, it is said many of Dowie's dupes trod upon each other's heels to give up their money into his hands. And now Dowie's affairs have passed into the hands of a receiver.


Article from The Topeka State Journal, December 2, 1903

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Article Text

(Continued from First Page.) their salaries or must endure a substantial cut in wages. This was agreed to. In one shop a non-member of Dowie's flock asked Dowie why he was going to Australia if his finances were so bad. "Perhaps I may not be able to go at all," quietly returned Dowie. "I may have to stay and see that things are set right before I leave." The receivers, with their attorneys, and Custodian Redieske with six deputy marshals, went out to Zion City to serve upon Dowie the notice of the receivership. Redieske and his deputies went ot the bank, while the others called upon Dowie at his residence. As the officers were about to demand admittance to the bank a man ran from a rear door. One of the deputies overtook him, and a second man came running from the bank shouting: "Let me have those papers; I will get away with them." Redeskie threatened to place them under arrest unless they returned to the bank, which they did. He then placed the bank and the three men in it under a guard. While this was taking place at the bank the receivers and their attorneys called on Dowie and read to him the petition and order of court which placed Zion in the hands of a receiver. After hearing the petition Dowie locked himself up with several of his leading subordinates. He refused to allow himself to be seen or to make any statement, merely sending out word that he had nothing to say. The order of the court compels Dowie to appear in court December 11. Dowie made his advent in Chicago as a divine healer in 1892. Renting a small apartment he began the treatment of persons afflicted with every known kind of disease and soon hundreds were coming to see him. He called himself the head of the International Divine Healing association and had a tabernacle constructed in Stoney Island avenue near Sixty-third street, where his congregation held its first service. Outgrowing these quarters in a few years, he leased a tabernacle at Michigan avenue and Thirteenth street, paying for it an immense rental. For several years the services were held there. As the congregation grew he rechristened his organization the Christian Catcholic Church of Zion and three years ago leased the Auditorium in which to hold his Sunday gatherings. All this time he kept up his divine healing, and many of those who came to him to be healed became his staunch-est supporters in the church. It was shortly after he began the services in the Auditorium that he announced that he was the successor of Elijah, the prophet of God, and that his teachings and actions were inspired. Four years ago Dowie began negotiations for the purchase of the land north of Waukegan on which Zion City now stands. Having secured options on a tract of 6,400 acres, he platted it. Eighty acres were set aside for the lace factories on which the industrial hopes of Zion City were founded. Samuel Stevenson went to Nottingham, England, ordered and paid deposits on 100 lace making machines which, with the accessories, when laid down in Chicago, cost almost $1,000,000. Zion City was formally opened July 14, 1901, when Dowie took up his headquarters there in an old farm house after making a speech of consecration. Artisans were hurried to the place, and the construction of buildings and streets began. A year later the town had a population of 2,000 persons, and at the present time the population is estimated at about 10,000. The lace factories were opened over a year ago, an immense hotel, administration, and auditorium buildings were consthructed, brick, candy and wood-working plants were established and at the present time an imposing building of stone for the Zion college is in course of construction. It was nearly midnight when the receivers left Dowie. Although he would make no general statement, he declared to the receivers that the entire proceedings in court was unnecessary, as he was entirely solvent. He declared that the receivership would be very short as he would immediately pay all he owed and secure the discharge of the receivers. It was decided by the receivers that


Article from The Telegraph-Courier, December 3, 1903

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Article Text

ZION SEES HOPE. Big Meeting of Zionists Called for This Evening to Make Arrangements. Zion City, Ill. Dec. 2.-Zion is in the hands of a receiver but the coming of the gentiles to take charge of the city has not caused a noticeable change in the actions of the people. There is every evidence of subdued excitement but all the industries are working as usual and the only change is found in the fact that the Zion Bank is closed. Many of the followers of the prophet seem to regard the coming of the receivers as an imposition, and all express supreme confidence in the stability of Dowie and his city, and many believe that the settlement of the receivership will be affected tomorrow. The members of the church and Dr. Dowie have held many conferences during the day, and at noon many of them gathered at Elijah Hospice. They seemed to fear no bad effects from the assault that had been made on the financial foundations of Dowie. Tonight a great meeting of the members of the Christian Catholic Church will be held at Shiloh tabernacle and all over the city great placards have been set up announcing this meeting. The cards read: "All adult members of the Christian Catholic Church are urgently requested to attend a meeting at Shiloh Tabernacle at seven o'clock this evening. THE BEST OF ALL IS GOD IS STILL WITH US." This little sentiment expresses the feeling of Zion. The town is filled up with newspapermen and the camera fiend is everywhere in evidence, but this is about the only thing to show that Zion is tottering.


Article from The Salt Lake Herald, December 3, 1903

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Article Text

PLANS OF RECEIVERS. Affairs of the Zion Bank Will Be Pried Into. Chicago, Dec. 2.-The receivers appointed by the federal_court.began today going over the books of the Zion industries; instead of Dowle. federal Custodian Paul Redieski is technically the head of Zion City and in control of its factories employing about 4,000 persons. Efforts made throughout the night by Dowie's supporters are said to have netted nearly $25,000 in cash, and it was said today that Dowie might come to Chicago without delay to take steps toward doing away with the receivership. Judge C. C. Kohlsaat, who yesterday appointed the receiver, entered an order today restraining the prosecution of any suits against Dowie pending the results of the receivership appointed for Zion City. The secrets of the Dowie bank have been so closely guarded that not even the state auditor has been able to secure a statement of the condition of the institution. The legislature, through a committee, sought to probe into the methods of the bank three years ago, but was forced to acknowledge defeat. That it is the intention of Receivers Blount and Currie to go to the bottom of the banking institution, scrutinize the methods of doing business, as well as the financial condition, is admitted by one of the receivers.


Article from The Van Buren Press, December 5, 1903

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Article Text

NO SIGNS AT ZION OF DISTURBANCE All the Industries Being Conducted Under the Supervision of the Receivers. ONLY THE ZION BANK IS CLOSED AND THAT IS STRONGLY GUARDED A Secret Conference Held in Dowle's Private Office at Zion City, Which is Said to Have Been Stormy at Times, Dowie Being Angered At His Opponents. Zion City, Ill., Dec. 3.-Except at the bank here, no signs of disturbance over bankruptcy proceedings against John Alexander Dowie was visible in this place Wednesday. The bank was closed and guarded by both United States deputy marshals and by "Zion Guards," the local police. Otherwise, the Dowieite institutions were being conducted as if nothing unusual had happened. Behind closed doors in Dowie's private office, Dowie and his attorney met Custodian Redieski and attorneys representing the creditors. The principal object was to plan for the continuation of the various industries. The secret conference is said to have been stormy at times, when Dowie became angered at what he called "presumption" on the part of his opponents.


Article from The Grenada Sentinel, December 5, 1903

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Article Text

All the Industries Being Conducted Under the Supervision of the Receivers. ONLY THE ZION BANK IS CLOSED AND THAT IS STRONGLY GUARDED Secret Conference Held in Dowie's Private Office at Zion City, Which in Said to Have Been Stormy at Times. Dowle Being Angered At Hix Opponents. Zion City, III., Dec. 2.-Except at the bank here, no signs of disturbance over bankruptcy proceedings against John Alexander Dowie was visible in this place Wednesday. The bank was closed and guarded by both United States deputy marshals and by "Zion Guards," the local police. Otherwise, the Dowieite institutions were being conducted as if nothing unusual had happened. Behind closed doors in Dowie's private office, Dowie and his attorney met Custodian Redieski and attorneys representing the creditors. The principal object was to plan for the continuation of the various industries. The secret conference is said to have been stormy at times, when Dowie became angered at what he called "presumption" on the part of his opponents.