Article Text
Reveals Bank Shortage April the bank of Edwardsville by made today by president George ed run the institution.
Bank of Edwardsville (Edwardsville, IL)
Episode Information
- Episode UID
70040771564- Episode Type
- Run Only
- Bank Type
- state
- Bank ID
-
7004077routing - Routing Number
70-0407- Start Date
- April 15, 1930
- Location
- Edwardsville, Illinois (38.811, -89.953)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
be1e2c937e6998c7
Response Measures
None
Events (1)
1.
April 15, 1930
Run
- Cause
- Bank Specific Adverse Info
- Cause Details
- Cashier Frank B. Sanders misappropriated $143,000 to finance motion-picture theaters and other private ventures; restitution and director funds were used to cover the shortage.
- Measures
- Partial restitution by cashier, directors raised funds to cover deficit, shipment of cash from Federal Reserve Bank at St. Louis; bank remained open.
- Newspaper Excerpt
- the announcement was made...to restore public confidence during a slight run on the bank this morning.
- Source
- newspapers
Newspaper Articles (10)
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LOSS MADE OFFICERS AND RESTITUTION President George W. Meyer Announces F. Sanders Has Turned in Cash and Promised More. DEPOSITOR'S LETTER LEADS TO DISCOVERY Executive Says He Started Investigation After State Auditor's Office Asked Him About Communica- tion. Announcement that Frank cashier the Bank Edwardsville at Edwardsville, had $143,000. all but $7000 of the bank's capitalization using the money finance chain of motion picture theaters other outside business ventures. made today George Meyer. president the bank. Sanders has reimbursed the bank for part of its has promised to convert sufficient of assets to pay back the remainder, said. Meanwhile, he explained, cash has been contributed the members of the Board of Directors to make the difference. Meyer said that money which had been deposited with the bank collateral by borrowers. representative of the State Auditor's fice, at the bank, announced that the sound and roborated statement that the directors had covered the $500,000 Arrives From St. Louis. The was said, to restore public confidence today during slight run the bank, one Edwardsvflle's banks and the second in size by slight margin. Shortly after noon an armored car arrived from St. Louis and in cash carried bank. President Meyer bustled about the banking room tomers, telling them that would be brought over necessary you want draw out, all right: but leave here, put in safe deposit box," he urged. Many business men, friendto bank, appeared to make large deposits conspicuously. Meyer announced that Sanders had been discharged. but would not be prosecuted. State's ney Bohm declared he would take action unless asked to do so by Meyer. At his home. Sanders made general denial of President Meyers' statement. When the reporter sought question him, he exclaimed: "Why. asking me things that wouldn't admit on stack of Bibles mile high." "That all bluff," said W. Hadley, vice president when formed of Sanders' denial. All ficers of the bank, well the State Auditor's present to President Meyer when he made the nouncement. Owns Three Theaters. Sanders, according principal owner of the United Operating Co., which owned the Princess Theater Alton, the Wildey The ater in Edwardsville and the Wood in Wood River. the latter new building worth more than $100,000. The Alton Theater recently sold the Paramount for When the shortage was discov. ered recently, Meyer said. Sanders handed $40,000 in securities and pledged himself to pay more. soon he received his share the from the theater sales. He promised to place mortgage on the Wood River theater to make up the ance of the shortage. Meyer said. Meyer he did not that anything was in his wrong bank until recently when asked him. why don't you answer the letters from the State Meyer replied that he had no such letters and began vestigation. From State Auditor Nicholson Continued on Page Column
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Defalcation Of Illinois Edwardsville, III., April W. Meyer, president Bank of Edwardsville, announced today that the bank's cashier, Frank Sanders, had misappropriated of bank funds, the money finance motion picture theaters other private ventures. Sanders has reimbursed the bank of the loss, Meyer said, the directors have raised to make the balance, under Sanders' promise raise the money them back in announcement cording to restore public confidence during slight on bank this morning. All of the officers present and representative of state auditor's fice hand corroborate Meyer's statements.
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FUND RAISED TO MAKE UP SHORTAGE By The Associated Press EDWARDSVILLE, III., April 15.George W. Meyer, president of the Bank of Edwardsville, announced today that the bank's cashier, Frank B. Sanders, had misappropriated $143,000 of banks funds, using the money to finance several motion picture theaters and other private business ventures. Sanders has reimbursed the bank for a part of the loss, Meyer said, and the directors have raised a fund to make up the balance, under Sanders promise to raise money to pay them back in full. The announcement was made, according to Meyer, to restore public confidence during a slight run on the bank this morning.
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USES BANK FUNDS FOR OWN USE Edwardsvil April 15. (A.P.) George W. Moyer, president of the bank of Edw dsville, announced to day that the bank's cashier, Frank B. Sanders, has misappropriated $143,000 of bank funds, using the money to finance several motion picture theatres and other private business ventures. Sanders has reimbursed the bank for part of the loss, Meyers said, and the directors have raised a fund to make up the balance under Sanders' promise to raise the money to pay them back in full. The announcement was made, according to Meyer, to restore public confidence during a slight run on the bank this morning. All of the officers were present and a representative of the state auditor's office was on hand to coroborate Meyer's statement.
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SURVIVING BANKS GET WILLIAMSON COUNTY SUPPORT Few Deposits Withdrawn Despite Failures. Confidence in Williamson county banking where seven banks were closed within week's time was virtually restored today with practically no of deposits in any of the six remaining It was not for the First National bank of Marion to use received by armored truck from St. Louis. The bank paid out $90,000 but Monday, gained in deposits today. Edward B. Clark, representative of the Franklin American Trust company of St. Louis, after an investigation of the Marion Trust and Savings bank as counts stated today. am sure that this bank will not only be able to pay its depositors tull, but believe it can be re-organized and re-opened for with in week after the state bank exam iners their work.' Owing to the closing of many banks at one time the bank examiners will not be able to complete their work as rapidly as usual. Two of the banks remaining open are state banks, The Johnston City State bank and the citizen's state at Creal Springs. The other four are the City National at Herrin and the Forest Nationals at Marion, Herrin and Carterville. Cashier Misuses $143,000. Edwardsville, Ill., April George W. Meyer, president of the Bank of Edwardsville, announced today that the cashier, Frank B Sanders had misappropriated $143,000 of bank funds, using the money to finance several motion pic. ture theaters and other private business ventures. Myers said no charges would be made against Sanders has reimbursed the bank for part of the loss, Meyer said, and the directors have raised a fund to make up the balance, under Sanders' promise to raise the money to pay back in full. He has been discharged as cashier. The announcement was made. according to Meyer, to restore public confidence during slight run on the bank this morning. Fisher Bank Closes. Fisher, Ill., April State bank examiners today took possession of the Fisher State bank and
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PERSISTENT RUN IS WEATHERED Officers Plan to Open Again Today and to Pay in Full All Depositors Who Wish to Make Withdrawals. Charges against Frank Sanders, 45, cashier of the Bank of Edwardsville, whose misappropriation caused persistent the bank, will brought the bank that restitution funds been made, George Meyer, president of the bank, said last night. know about in Attorney Bohm about the prosecution of Sanders. He declined to what action, it say he would State Auditor Nelson, who has jurisdiction over all state banks, said prosecution is up to the direcand the State's Attorney. "We made an examination of the bank some time found shortage." he said. was reported to bank officials and the money has been returned." The Attorney General Oscar Carlstrom has not quested to intervene the bank case. In Illinois the practice the State's Attorney to initiate any proceedings growing out of falcations. The Attorney General does appear such cases cept in instances where the ment of special prosecutor is quested. Weathered Run. The bank weathered the run yesterday and announced this morning to paying positors to their money. The bank an tional shipment cash yesterday afternoon from the Federal Reserve Bank at St. Louis, which with the restoration of the misappropriated funds, puts in position to meet all demands upon it, officials said. Sanders made no statement. care to say anything," reply to requests for his answer to the charge. He started his banking career minor capacity with the old First National Bank of Edwardsville, but became an employe of the Bank Edwardsville fifteen years when the two institutions merged the He lives with his wife and son
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Edwardsville Bank Will Not Charge Defaulting Head Officers of Institution Satisfied With Restitution Made by Cashier, President Says. Edwardsville, Ill., April 16.-(UP) Charges will not be preferred against Frank B Sanders. 45, cashier of the Bank of Edwardsville here. who is accused by bank offificials with misappropriation of $143,000. George M. Meyer. president of the bank said last night. According to Meyer full restitution has been made. A persistent run on the bank throughout the day yesterday. resulted from news of the misappropriation. The bank opened as usual this morning and officials announced that with the restored $143.000 and a shipment of cash received from the Federal Reserve Bank at St. Louis the institution is in a position to weather a continuance of the run today. Sanders' only answer to inquiries concerning the charge have been "I don't care to say anything.' Bohm Silent. The shortage was discovered when an audit of the bank's books was completed by state examiners State's Attorney Bohm. when questioned as to what action he Turn to Page 2, Column 2
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Cashier Will Make Good His Shortage Edwardsville, III., Apr. 15-(AP)George W. Meyer, President of the Bank of Edwardsville, announced today that the bank's cashier, Frank B. Sanders, had misappropriated $143,000 of bank funds, using the money to finance several motion pic ture theaters and other private busi ness Sanders has reimbursed the bank for a part of the loss, Meyer said and the directors have raised a funo to make up the balance, under San ders' promise to raise the money to pay them back in full. The announcement was made. according to Meyer. to restore publi confidence during a slight run on the bank this morning. All of the o: ficers were present and a representa tive of the State Auditor's office was on hand to corroborate Meyer's statements.
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WILL PROBE $143,000 ILLINOIS BANK DEFICIT Grand Jury to Investigate Sanders Case at Edwardsville. Two officers of the Bank of Edwardsville yesterday disclosed that information against Frank B. Sanders, cashier and motion picture show owner, who diverted $143,000 from the financial institution for his be placed before the Madison County grand jury early this week. Heretofore, it was commonly believed Sanders would escape prosecution. Following the misappropriation, which a persistent run on the it was by President M. Meyer that partial restitution had been made; that the defaulting cashier in position to pay the remainder, and that, if accounts were squared, no charges would be pressed. Although no official announcehas forthcomin from directors as to the exact amount restored by Sanders, it has been ported the sum was $110,000, still leaving deficit of $33,600. at Montebello, Mo., twenty-two miles south of St. Louis. There will be baseball game between the "Stouts, captained by Rev. J. Le Clere. and the "Leans," led by Rev. R. E. Alex-