70-1255ILLINOIS BANKS CLOSE ON ORDER OF AUDITOR
June Des Plaines State bank Des Plaines, and the Diversey Trust and bank the North IS were closed state auditor The Des Plaines bank today at the request of their boards had deposits last March Diversey bank
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Two More Chicago Banks Are Closed CHICAGO, June 13 (I.N.S.). Two more outlying banks in the Chicago area closed their doors today. The Diversey Trust and Savings Bank and the Des Plaines State Bank, Des Plainese, Ill., were taken over by the State auditor's office. In the last financial statements, they respectively had deposits of $1,060,000 and $1,500,000. Meantime plans for reorganization were being considered by directors of the more than two dozen institutions which suspended business earlier this week following two huge mergers of loop banks Monday.
BAIN BANKS UNABLE TO PAY DEPOSITORS IN FULL, SAYS RECEIVER
None of the twelve Bain banks will be able to pay depositors in full, ReGilruth said The Bain June with in deposit liabilities. They had more than depositors. Mr. estimated that assets and loans of the chain would exceed $6,000,000. In the sixty days before the closing, $500,000 was withdrawn on loans to John Bain, head of the banks, members of his family, and corporations, the said. Circuit Judge Feinberg confirmed the appointment yesterday of George Reinecke as receiver of the Roseland State bank. 114th place Michigan avenue. Circuit Judge Finnegan confirmed the appointment of William Busse Jr., as receiver of the Des Plaines State bank. Five suits to collect $515,000 in city funds deposited in banks now in the hands of receivers were filed in the Circuit court yesterday by Leon Hornstein, first assistant corporation counsel.
Under our laws all other personal property should be treated similarly. Getting back to the demands of the assessors, Secretary Hausman wrote: But It is not for the banks to divulge confidential information ex. cept upon order of court and only in such specific cases as the court directs. The board of assessors has no authority to compel the banks to fur. nish the data asked for. Its plan is costly, and the results, far as it is will be nil. If it were legal, it is easy to visualize what would prior to April each year. The would march upon the banks and their balances. To for this the banks to be in 100 per cent cash condition. Loans would have to be called, all applications for loans have to be refused, and general business would be seriously disturbed.'
Seek Lists of Closed Banks.
In preliminary statement of their intentions, the quoted as saying that they would demand the list of depositors and their deposits in banks which have closed for the of taxing the deposits, of which will not be available for years, and in some fraction of these will never be received the depositors. Touching on this subject, Mr. Haus. man It unfortunate that on top of the harassing problems through which the banks have had to strug. gle during the last year they will now be put in the embarrassing position of defending themselves against the misunderstanding which will likely result from their refusal to comply with the demands of the board of assessors." The assessors will ask the county board soon to make an appropriation to finance the crusade, it is reported. The assessors have tried in vain to get a larger appropriation. J. Louis expert, told the county board that the originally obtained enough money to make the and that if the had been wasted it was the fault of the board.
First Payment To Des Plaines State Bank Depositors Soon
State Auditor Oscar Nelson made public first receivers number the closed banks. Among the reported that the Des Plaines State of which Busse, the receiver. The auditor stated that in effect each of by each bank Among the signilisted are "receipts the first item indicating the receiver's success collector and the second his thrift in forming his In general the statements indiThey indicate further that the have been ordinarily frugal in paying out torney's fees, an item which state auditor been criticized the ground supposed extrava-
Have $171,975.74 in Cash
The statement concerning Plaines State, compiled William Busse, its receiver, that this bank has hand and banks, but bills amounting indicated that the bank for first payment depositors their established that there are claims The liabilities of the mostly at compares book value of 550.65. was on June 12 that the bank closed down. During the receipts have totaled disbursements Total expense paid for thus far have report follows:
$1,280,324.48 Bills payable 40,000.00 vites you Balance banks, creditors Capital stock 200,000.00 out Surplus 125,000.00 Undivided profits 86,587.87 Total Liabilities Recapitulation Receipts and Disbursements June 12, 1921, to Aug. 31, 1931 Receipts Rent, premiums, 776.13 Notes discounts 99,285.23 Overdrafts, cash items. 72,844.09 County Interest Trust receipts Receipts report Disbursements Receiver's salary and 602.53 stenographer 1,155.78 Following Other misc. expense 633.19 Auditor's expense closing bank 1,035.00 press Accounts spl. (ins.) disb. this report 3,524.50 Balance hands of State, second to accounted for action Balance hands ganization posited follows: olution on hand body by bank view. and Trust the and inent in deposits Compensation county Receiver support Byrd. 638.58 Stenographer 517.20 an
Resources Cash on hand and in banks Stock and bonds Loans and discounts Real estate loans 194,010.06 Accounts receivable 14,876.87 Banking house 243,485.33 Other estate 35,342.34 Furniture and fixtures Other assets 21,450.94 Total resources Expense of liquidation: Total expenses 8,426.50 income during liquidation 3,065.10 Total ation losses and penses Date Hank Closed Commercial accounts $404,758.37 Savings accounts 728,363.75 Certificates of deposit 142,125.28 Cashier's checks 44,438.82 Accounts payable 2,702.72 New liabilities acquired during receivership 531.02 Total $1,328,153.47 Offsets allowed 48,128.99
Busse, Shows Present Condition of Closed Institution of the report of the Des copy Planes State Bank of which made to the auditor of public accounts appears six this issue. Mr. page the receiver and his direction excellent has made. The come the the expenses. amount hand $238,907. present the bank are The exclustock accounts report will be especially into readers paper the that has progress made in liquidating the closed institution.
William Busse, Jr., Shows Present Condition of Closed Institution copy of report the Des Plaines State Bank December 1931, which made to the was auditer of public accounts appears six this issue. Mr. Jr., the receiver and direction excellent progress been made. The come during the liquidation ceeded the amount hand The present the bank The habilities exclustock The report will be into readers of this paper the progress has made in liquidating the closed
William Busse, Jr., Shows Present Condition of Closed Institution copy of the report of the Des Plaines State Bank J031, which made the auditor of public accounts appears six this issue. Mr. Busse, the receiver and under his direction excellent been made. The the the expenses. amount hand present the bank are The liabilities exclustock accounts The report will be especially of this it the has made in liquidating the closed
William Busse, Shows Present Condition of Closed Institution
A copy of the report of the Des Plaines State Bank of December 1931, which was made to the auditor of public accounts appears six this issue. Mr. page Busse, receiver and under his direction excellent has been made. The during the liquidation ceeded expenses. amount hand The present total of the bank The liabilities excluof capital stock accounts
The report will be especially interesting readers this paper it shows the progress that has been made in liquidating the closed
William Busse, Jr., Shows Present Condition of Closed Institution copy of the report of the Des Plaines State Bank of December which made the auditor of public accounts appears upon six this issue. Mr. Wilham Busse, the receiver and under his direction excellent progress made. income during the liquidation has ceeded expenses. amount hand is $238,967. The present of the bank are The liabilities exclustock accounts
The report will be especially inreaders this the has been made liquidating the closed institution.
William Busse, Jr., Shows Present Condition of Closed Institution
A copy of the report of the Des Plaines State Bank as of December 31, 1931, which was made to the auditor of public accounts appears upon page six of this issue. Mr. William Busse, Jr., is the receiver and under his direction excellent progress has been made. The income during the liquidation has exceeded the expenses. The amount on hand is $238,967. The present total resources of the bank are $1,600,795.69. The liabilities exclusive of capital stock accounts is $1,189,208.12.
The report will be especially interesting to readers of this paper as it shows the progress that has been made in liquidating the closed institution.
William Busse Jr. Host To Crowd of Good Fellows
Up at Sylvan lake, amidst virgin timber, upon spot would possible find the Busse cottage. Busse, was host there Thursday evening crowd good fellows from Mt. Prospect Des Plaines gathered together. Officially Busse of the Mt. president State Bank receiver Des State Bank. about nothing Busse party. Mt. member and Des Plaines Lions The these invitation the informal sponded arriving them home about the Busse ceremony did not for the again of the evening. challenged Plaines promptly Des game. PlayThey diamond was The trees that the form under placed player ball after the tree the stopped however. The game, dentists pitchers opposing the manner towns would up for which they inspiring as was throw behind the Frank Bierman was bat for Mt. Prospect and ruined good pair Sunday were not made for trousers such carrying Landeck captain until Otto ordered himself the bench. would allow The hits, but the wild throws long the scores multiplied fast that the scorer caught with record. Prospect winner course, inning according Postmaster ought because the seriminded the Babe Ruth the was Al. who score wild played second base, really his made but Geo. Geils, Howard Vern Alten Frank Petrine their real interest in the game when they the being made eats. Des Plaines weakened about the same time and Umpire called darkness and grub. With Prospect end the long and Des the other the buns, not long the had first helping hot beef The ample of (Continued on
many of whom had been subsisting IMPROVE entirely their which most cases had taken lifetime and to provide to the merchants definite that BUSINESS would for chandise sold on credit basis pending the payment of dividend the bank. CONDITIONS merchants subscrib- that portion bank accounts Arlington Hts. Chamber which anticipated dividends of Commerce Calls Lo- would be paid. As the organization krew, many details that were uncal Business Men thought in the original idea proper treatment; accounting proTO RELEASE CASH codure had to be established, techFOR nical legal knowledge was neces- and overcome. Would Adopt Plan Worked In So successful was the first MerDesPlaines; Benefits Dechants' Relief association, which had proceeded, with immeasurable positors, Merchants was just about one year ago that Des Plaines. community. found in same position that the people of ton Heights in today. The Dee Plaines State Bank had been closed for approximately nve and the just beginning of extent that and little hold forth any steady work dependable Not only were seares and holiday season approaching, but cold winter months were pronching, bringing them the need for additional clothing and fuel.
The people of Plaines, with their money withheld because bank. unable to establish credit. and the because of decrease in sales due to the bank failure and consequent tightening credit were unable tions would permit. The not leal in had many the tion where further unsecured credit commercial ruin and bankruptey. Something had to be done and None quickly remedy the tion, what that and other bank divide With business life of the town deopardy three in the newspaper lawyer from and the De: Plaine Su. burban Times. result of and subsequent meetings of the chants' Relief association was ated. The purpose of this association WHS to provide relief for the depositors of the defunct to the original association and agreed to accept assignments of peared. These details required time and thought effort to provide sary. But, eventually. through perionce these obstacles were cooperation from Mr. William Busse, Jr. (Receiver for the Des Plaines State Bank), on an anticipated dividend of 20%, that secand association is now in progress working second anticipation In addition to its use in Des Plaines this plan has been suecessfully used in other localities, having been adopted in Waukegan, Joliet, Forest Park, Cragin, and other has been recognized by national trade journThrough experience. provisions have made overcome the that always present project this kind, definite procedure has been established, acpractices simplified. and counting the plan itself revealed in its extreme affording relief not only to the depositor and the local merchant, but to the community well. Briefly the plan offers the folthe depositor: bank otherwise unattainable pending liquidation: releases these deposits when they are needed and provide for the positor power of the extent of the dividend, before that dividend actually declared and paid. saves the depositor 3% dividends for permits the of non-interest bearing funds current expenses, and turn the available eash for investment and income producactivities. the local merchant, the cration this means attainable funds can utilized customers off debts, that credit extended with definite that cash will be received for such credit upon the payment by bank. and that they will no longer be when asked credit of the bank's failure. This plan an added advantage for the independent merchant in that chain tures cannot or will become members of this type In effect, this plan collection assurance for the and provides means whereby cash income can conserved for the replenishing merchandise stocks and the assignments used to reduce obligations to the bank and loFor the community. it creates feeling good-will towards the and reduces the numNOTICE people who would otherwise forced avail themselves of assistance from charitable organFarmers and Both Mr. Laurin, the receiver for Peoples State Bank and Mr. Plew, receiver for the Arlington Salaried People State Bank. have investigated this plan and ngreed to lend their operation whis, if by the
Plan The is simple. The depositor makes assignment of that portion claim against the bank felt will be COVfirst dividend paid. made the relation notifies the bank assignment, which tocords the bank. then with certifythat has made such assignment position to avail of the courtesies extended When desires depositor to purchase, he solects the merchandise and the merchant form which receipt for the goods purchased and authority the of the association transfer, on the records of that the value the purchase from the of the depositor's claim to the account of the merchant from whom the material is bought. After this ceipt is approved by the association secretary, the depositor returns the merchant and exchanges the receipt for the goods he has lected. Upon payment of the dividend the bank, the receiver pays the association the amount of all made, The treasurer the association, in turn, pays the depositor the unused portion his and to the merchant the value the receipts he has accepted, less nominal fee cover the cost of organization and operation the association and the maintenance of its records. That this plan beneficial both the depositor and the merchant evidenced by the fact that merchants are now crating in Des compared originally subonly and that 562 claims have scribing, been assigned by deposialready tors the association tion second dividend payment 10% Execon Systems, with offices The Bank building, Des the State Plaines, now engaged this in desiring ling plan the opportunity of thawing bank funds, and meeting business interests held early next week Wiedeman, general manof that concern, together ager with Mr. Connor, the originator the clearing house plan, will talk the and benefits of this plan, to the local merchants. This begin at conducted the Village hall. local independent merchant urged to be present to hear what has been complished in other what can be accomplished in Arlington Heights, the themselves are willing to put for business Admission to this meeting will be invitation which we understand will be placed in the mails early next week. A meeting called by the Chamber Commerce held last Thursday night at the Village hall.