5403. Zion City bank (Zion, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
June 21, 1906
Location
Zion, Illinois (42.446, -87.833)

Metadata

Model
gpt-5-mini
Short Digest
036c3e6d

Response Measures

None

Other: Receiver John C. Hately withheld funds from Voliva and ordered leases vacated; receiver/receivership applied.

Description

Newspaper accounts from June 1906 describe long lines of depositors and the bank having deposits but no cash (diversion of funds and heavy operating losses) — a classic run driven by bank-specific adverse information/mismanagement. By May 1907 a court receiver (John C. Hately) is in control and is withholding funds and ordering Voliva to vacate, indicating the bank entered receivership and did not resume normal operations in the articles provided.

Events (2)
1. June 21, 1906 Run
Cause
Bank Specific Adverse Info
Cause Details
Funds reportedly diverted and massive operating losses in Zion City industries left the bank with deposits but no cash, prompting heavy withdrawals.
Newspaper Excerpt
Zion City bank...has deposits amounting to $500,000, but not one dollar in the bank to pay any of the $500,000. Every day there was a long line of people in front of the bank looking for their money.
Source
newspapers
2. May 30, 1907 Receivership
Newspaper Excerpt
Receiver John C. Hately...ordered the cashier of the bank to withhold all moneys from Voliva and the receiver ordered Voliva to vacate all leases of buildings May 31.
Source
newspapers

Newspaper Articles (9)
1. May 17, 1906 The Telegraph-Courier Kenosha, WI
Article from The Telegraph-Courier, May 17, 1906

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Article Text

AFTER DOWIE'S BANK / Depositors in Zion City Bank May Seek a Fraud Order Against Former Officials / A DEPOSITOR STARTS SUIT John Alex. Dowie and those of his regime who have been in control of the Zion bank, stand in the shadow of threatened violation of the laws governing the conduct of banks. Mrs. Wollistine, a Chicago Zionite, is in Zion City trying to secure a portion of the $1,500 deposit she made in the old Zion City bank two days before its doors were closed. Hearing that Deacon Peckham, head o't the bank, was about to depart from Zion, Mrs. Wollistine hastened to Zion at d a hot interview between her an d Deacon Peckham followed. She accused him of accepting her deposit when he was certain the funds of the old bank would be transferred to the new and that the deposits in the new bank were not to be booked as belonging to individual depositors. Mrs. Wollistine also called Peckham's attention to the report that the funds in the new bank had been placed to the credit of the industries, whereas individual depositors were forced to be content with a promise that their money would ultimately be refunded by the community in case it proved solvent. In spite of Mrs. Wollistine's threats and pleadings she was turned away without a cent by Deacon Peckham. Creditors will ask the courts to place the Zion City properties in the hands of a receiver if Voliva fails to obtain from the circuit court satisfactory conditions governing the action of the proposed peace commission of three men. This was the announcement made after an all-night conference by the Voliva leaders at Zion City. Voliva is represented by his friends as opposed to a receivership, but is willing to accept it rather than see Dowie restored to power. The creditors, it is said, will insist that Voliva shall be the receiver. When the Dowie followers heard of the plan they were indignant and declared that it was simply a threat to infuence the court. Lawyers on both sides will spring counter-propositions in court today and will struggle fiercely to gain decisive advantages for their respective clients.

2. June 21, 1906 Bismarck Daily Tribune Bismarck, ND
Article from Bismarck Daily Tribune, June 21, 1906

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Article Text

OPERATED AT A LOSS Zion City Industries Run Behind Over Two and OneHalf Millions---Says Dowie's Bank Has Deposits of $500,000, But Not a Cent In Cash Chicago, June 21.-Wilbur G. Voliva; the present head of Zion City, who For Governor of Vermont, succeeded Dowie as manager of the Montpelier, Vt., June 21. Fletcher city and its properties, was the first D. Proctor, son of United States Senwitness for the defense in the hearing. ator Redfield Proctor, has been noinnow going on before Judge Landis in inated by acclamation for governor of the federal court to determine the Vermont at the Republican state convention. rightful manager of the city and its interests. Voliva testified that when he asSUNDRY CIVIL BILL REPORTED. sumed control of Zion City he found Senate Committee Strikes Out Proin the candy industry a paid up stock. vision for Lock Canal. of $155,000, an actual investment of $18,000 and a total operating loss, up Washington, June 21.-The sundry civil appropriation bill has been reto Jan. 31, 1906, of $93,000. In the ported to the senate after the comsupply manufacturing industry a paid. mittee on appropriations struck out in stock of $257,000, amount actually the house provision for a lock canal invested $22,000, total loss in operaacross the isthmus of Panama and tion $249,000. In the lace industry will leave the matter open until after paid in stock of $2,824,000, actually inthe senate votes on the bill pending vested $415,000, operating loss $1,200,in the senate. 000. Losses on the other industries were on Jan. 31, 1906, as follows: Food supply, $27,000; railway construction, $4,000; printing house, $450,000; hotel, TUNNEL $173,000; transportation, $11,000. Not a Dollar in the Bank. "Zion City bank," said the witness, "has deposits amounting to $500,000. Thirty-Five Men Face Death but not one dollar in the bank to pay any of the $500,000. Every day there by Drowning in Tunnel was a long line of people in front of the bank looking for their money. at New York City Some of them would get 50 cents, some 75 cents and some nothing at all. Every one of the people had $1,New York, June 21.-Two men lost 000 or more on deposit. I found that their lives, another was fatally in$2,000,000 had been diverted and that jured and six more were severely hurt the losses on operating the different as a result of an accident in the Pennindustries up to that time amounted sylvania tunnel between Thirty-fourth to $2,529,800. street, this city, and Long Island City. "I found that the laboring men were Twenty-four of the thirty-five men receiving only enough to exist upon and their pay was far behind. Many who were at work in the tunnel at the of them were paid in coupons and time of the accident escaped without when I assumed management about serious injury after having faced death $30,000 in these coupons was outby drowning. standing. I found many people at the The accident was caused by the verge of starvation, notably a Mr. tremendous air pressure necessary at Haskins, who had an annual income the head of the tunnel to hold back in Australia of $3,000. I gave him a the soft mud into which the shield is ton of coal and food to keep him forced. The mud under this shield alive." was blown out and two of the work-

3. June 21, 1906 The Bemidji Daily Pioneer Bemidji, MN
Article from The Bemidji Daily Pioneer, June 21, 1906

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Article Text

ZION CITY INDUSTRIES RUN BEHIND OVER TWO AND ONEHALF MILLIONS. WILBUR G. VOLIVA ON THE STAND SAYS DOWIE'S BANK HAS DEPOSITS OF $500,000, BUT NOT A CENT IN CASH. Chicago, June 21.-Wilbur G. Voliva, the present head of Zion City, who succeeded Dowie as manager of the city and its properties, was the first witness for the defense in the hearing now going on before Judge Landis in the federal court to determine the rightful manager of the city and its interests. Voliva testified that when he assumed control of Zion City he found in the candy industry a paid up stock of $155,000, an actual investment of $18,000 and a total operating loss, up to Jan. 31, 1906, of $93,000. In the supply manufacturing industry a paid in stock of $257,000, amount actually invested $22,000, total loss in operation $249,000. In the lace industry paid in stock of $2,824,000, actually invested $415,000, operating loss $1,200,000. Losses on the other industries were on Jan. 31, 1906, as follows: Food supply, $27,000; railway construction, $4,000; printing house, $450,000; hotel, $173,000; transportation, $11,000. Not a Dollar in the Bank. "Zion City bank," said the witness, "has deposits amounting to $500,000, but not one dollar in the bank to pay any of the $500,000. Every day there was a long line of people in front of the bank looking for their money. Some of them would get 50 cents, some 75 cents and some nothing at all. Every one of the people had $1,000 or more on deposit. I found that $2,000,000 had been diverted and that the losses on operating the different industries up to that time amounted to $2,529,800. "I found that the laboring men were receiving only enough to exist upon and their pay was far behind. Many of them were paid in coupons and when I assumed management about $30,000 in these coupons was outstanding. I found many people at the verge of-starvation, notably a Mr. Haskins, who had an annual income in Australia of $3,000. I gave him a ton of coal and food to keep him alive."

4. June 21, 1906 The Paducah Evening Sun Paducah, KY
Article from The Paducah Evening Sun, June 21, 1906

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Article Text

e t ZION CITY IN BAD 1 WAY, SAYS VOLIVA ! e Bank Had Half Million Deposr its and No Cash on Hand. e Every Industry Running Behind Thousand of Dollars and People Starving. OVERSEER ON WITNESS STAND. Chicago, June 21.- Wilbur G. Voliva, the present head of Zion City, who succeeded Dowie as manager of the city and its properties, was the first witness today for the defense in the hearing now going or before Judge Landis in the federal court to determine the rightful manager of the city and its interests. Voliva testified that when he assumed control of Zion City he found in the candy industry a paid-up stock of $155,000, an actual investment of $18,000 and a total operating loss up to January 31, 1906, of $93,000. In the supply manufacturing association invested in stock $257,000, amount actually invested $22,000: total loss in operation, $219,600. In the lace industry, paid on the stock, $2,824,000; actually invested, $417. 000; operating less $1,206,000 Losses on oCher industries were, on January 31 1906, as follows: Food supply, $27,000; railway construetion, $1,000; printing neuse 8450 000; hotel, $173,600; transpertation, $11,000. "Zion City bank," said the witness, "had deposits amounting to $500,000 but not one dollar in the bank to pay any of the $500,000. Every day there was a long line of people in front of the bank looking for their money. Some of them would get 59 cents: some 75 cents and some nothing at all. Every one of these people had $1,000 or more on deposit. I found that $2, 000,000 had been dedierel and that the losses of operating the different industries up to that time amounted to $2,523,800. 'I fored hat 13. arring then were receiving only enough to exist on and their pay was far behind. Many of them were paid in coupons and when I assumed management, about $30,000 in these coupons was outstanding. I found the people at the verge of starvation, notably a Mr. Haskins who had an annual income in Australia of $3,000. I gave him a ton of coal and food to keep him alive."

5. May 30, 1907 Ladysmith News-Budget Ladysmith, WI
Article from Ladysmith News-Budget, May 30, 1907

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Article Text

ORDERS VOLIVA TO VACATE. Receiver Notifies General Overseer to Give Up Zion Buildings. Chicago, May 30. - General Overseer Voliva, who succeeded in ousting John Alexander Dowie from control of Zion City, has been ordered by Receiver John C. Hately to vacate all leases of buildings May 31. This action was taken yesterday by Mr. Hately as a climax to a bitter quarrel between Voliva and the president of the Zion City bank. Voliva presented his check at the bank for $1,800 and demanded payment at once. The bank official declined to comply until he had some advice from Receiver Hately in the matter. When informed of Voliva's actions Receiver Hately ordered the cashier of the bank to withhold all moneys from Voliva, and then notified Voliva that, commencing June 1, the leases held by him on the tabernacle, administration building and public schools would expire and that Voliva must relinquish his control of them.

6. May 30, 1907 The Telegraph-Courier Kenosha, WI
Article from The Telegraph-Courier, May 30, 1907

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Article Text

VOLIVA GETS IT IN THE NECK Czar of Zion City Runs Up Against the Receiver and Gets the Worst of It. Chicago, May 29.-General Overseer Voliva, who succeeded in ousting John Alexander Dowie from control of Zion City, has been ordered by Receiver John C. Hately to vacate all leases of buildings May 31. This action was taken by Hately as a climax to a bitter quarrel between Voliva and the president of the Zion City bank. Voliva presented his check at the bank for $1,800and demanded payment at once. The bank official declined to comply with the request until he had some advice from Receiver Hately in the matter. When informed of Voliva's actions Receiver Hately ordered the cashier of the bank to withhold all moneys from Voliva and then notified Voliva to vacate.

7. May 30, 1907 The White Pine News Ely, NV
Article from The White Pine News, May 30, 1907

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Article Text

A BITTER QUARREL NOW ON IN ZION CITY. CHICAGO, May 29.-General Overseer Voliva, who succeeded in ousting John Alexander Dowie from control of Zion City, has been ordered by Receiver John C. Hately to vacate all leases of buildings May 31. This action was taken by Mr. Hately as a climax to a bitter quarrel between Voliva and the president of the Zion City bank. Voliva presented his check for $1800 at the bank and demanded payment at once. The bank officials declined to comply with the request until they had some advice from Receiver Hately in the matter. When informed of Voliva's actions Receiver Hately ordered the cashier of the bank to withhold all moneys from Voliva and then notified Voliva that commencing on June 1 the leases held by him on the tabernacle and public buildings would expire, and that Voliva must relinquish his control of them.

8. May 30, 1907 The Telegraph-Courier Kenosha, WI
Article from The Telegraph-Courier, May 30, 1907

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Article Text

VOLIVA LOSES LEASES His Demand for Immediate Payment of Check Arouses Receiver's Wrath General Overseer Voliva, who succeeded in ousting John. (Alexander Dowie from control of Zion City, has been ordered by Receiver (John C, Hately to vacate all leases of buildings May 31. This action was taken today by Mr. Hately as a climax to a bitter quarrel between Voliva and the president of the Zion City bank. Voliva presented his check at the bank for $1,800 and demanded payment at once. The bank official declined to comply until he had some advice from Receiver Hately in the matter. When informed of Voliva's actions, Receiver Hately ordered the cashier of the bank to witnhold all moneys from Voliva and then notified Voliva that commencing June 1, the leases held by him on the tabernacle, administration building and public schools would expire and that Voliva must relinquish his control of them.

9. June 12, 1907 Manchester Democrat Manchester, IA
Article from Manchester Democrat, June 12, 1907

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VOLIVA GETS IT IN THE NECK Czar of Zion City Runs Up Against the Receiver and Gets the Worst of It. Chicago, May 30.-General Overseer Voliva, who succeeded in ousting John Alexander Dowie from control of Zion City, has been ordered by Receiver John C. Hately to vacate all leases of buildings May 31. This action was taken by Hately as a climax to a bitter quarrel between Voliva and the president of the Zion City bank. Voliva presented his check at the bank for $1,800and demanded payment at once. The bank official declined to comply with the request until he had some advice from Receiver Hately in the matter. When informed of Voliva's actions Receiver Hately ordered the cashier of the bank to withhold all moneys from Voliva and then notified Voliva to vacate.