Lyons State Bank (Lyons, IL)

Episode Information

Episode Type
Suspension → Closure
Start Date
July 29, 1931
Location
Lyons, Illinois (41.813, -87.818)
Bank Type
state
Routing Number
70-2075

Metadata

Episode ID
Bank ID
City ID
170412780
Model
gpt-5-mini
Short Digest

Notes

Articles indicate the Lyons State Bank closed in mid-1931 and a receiver was appointed; exact closing month/day is slightly inconsistent across pieces.

Events (2)
1. July 29, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed and placed in receivership due to insolvency/financial failure as reflected in receivers' statements.
Newspaper Excerpt
On July 29. 1931. the Lyons bank closed listed sources of $399,234 and deposits of $243,402.
Source
newspapers
2. July 29, 1931 Receivership
Newspaper Excerpt
State Auditor Oscar Nelson had appointed ... Frank Karel ... closed Lyons State bank at Lyons, Ill.; Karel was serving ... as receiver of the Lyons bank until now.
Source
newspapers

Newspaper Articles (2)
1. September 16, 1931 Chicago Tribune Chicago, IL

Article Text

RECEIVERS MAKE REPORTS ON 7 CLOSED BANKS

Slow Collections Shown to by Statements.

Statements present condition of seven closed banks to Cook county were Issued yesterday by the bank receivers concerned, and were made public by Auditor Oscar Nelson. Similar statements concerning other closed banks will be as the auditor announced. In effect each accounting of stewardship by each bank Among the significant items listed are receipts collected the first item indicating the receiver's success as debt collector and the second ing his thrift in performing his task. In general the statements indicate that have been slow and difficult. They indicate further that the have been extraordinarily frugal in out item on which the state audian tor has been criticized on the ground of extravagance.

Report on Cicero Bank. Robert M. receiver for the Cicero Trust and on April listed total receipts of 810, $49,185 cash on hand. He at $39 334, $18,994 which he had to meet as bills payable. His itemized list of follows: Preferred claims paid. 9,670 Receiver's salary and expenses 1.482 Legal expenses and attorney's 630 Clerical 4,282 2,886 Auditor's closing 2,010 Bills payable and 18,994 William Busse receiver of the Des Plaines State bank, closed on 12, listed at and at only The losses of the capital stock, and undivided profits, he fixed at $411,587 He itemized his as follows: None Receiver's salary and expenses 602 Legal expense and fee None Clerical hire 633 Auditor's in bank 1,035 Lists Resources at $1,023,470. Glen C. Hodges, receiver for the Diversey Trust and Savings closed on June 13, listed total sources of $1,023,470. He placed total receipts at at His itemized ments Receiver's salary and expenses Legal expense and attorney's fee Clerical hire expenses 1,562 Auditor's 825 Bills payable paid receiver for the Lansing closed on Feb. placed total at cluding $48,521 on hand. He listed receipts of and $49,687 He itemized disbursements follows. Preferred claims paid Receiver's salary and expenses Legal expenses and attorney's fees. 97 Clerk and 2,057 Auditor's expense Bills payable 39,684 Receiver Makes Statement. Francis Karel the Lyons State closed on June placed total including 693 on hand. He listed total receipts and total ments at follow Preferred 1,879 Receiver's Legal expense and items Auditor's in closing bank Bills payable

Carl of the State closed 14, placed total 400, $30,586 cash He placed total receipts at $125,949 and Receiver's salary expense and Clerk and hire 1,70

2. April 22, 1933 Chicago Tribune Chicago, IL

Article Text

Convicted 'Boy Banker' Still in His Job as Bank Receiver

Frank Karel, known as the boy banker of Berwyn, who was indicted last an charge and convicted of bribery two months ago,thas been serving throughout the full period as receiver a defunct state bank, it became known esterThe Frank Karel who was indicted federal grand jury on a charge embezzlement five days after the closing. of the First American National Trust company of Berwyn last June is same whom: State Auditor Oscar Nelson had appointed closed Lyons State bank at Lyons, III., one year earlier, it was learned. the federal action subsequent indictment in which Karel was charged with employing the funds to bribe thirteen Berwyn officials, he has continued to draw $150 month as receiver of the Lyons bank until now. Karel was found guilty the bribery charge Feb. 17 by Judge Philip L. Sullivan and is now appealing from the conviction.

Bank President at 29.

In 1328, at the age of 29 years, Karel president of the First National bank of Berwyn. When out lying banks began to grow shaky in 1931, Karel put merger involving his bank and two others, calling the merged institution the First American National Bank and Trust company. with himself as chairman of the board. On July 29. 1931. the Lyons bank closed listed sources of $399,234 and deposits of

$243,402. hailed who was being as the vior of Berwyn was med as receiver and John S. O' Donell was appointed as his Just eleven months later, the First American National of Berwyn also closed. Within days national bank examiners uncovered evidence which resulted in Karel's indictment by the federal grand jury on charges of falsifying records and misappropriating $10,000. At the time Karel is reported to have stated publicly in Berwyn that he used the money to bribe Berwyn officials. Indicted for Bribing Officials. Byron Thorpe, former mayoriof Berwyn, demanded an investigation, as result of which Karel was indicted in the state courts for distributing the bribe among three aldermen, nine former aldermen and the former city attorney for the suburb. Two former aldermen turned state's evidence and are said to have testified that Karel distributed the money among the council members to pass an ordinance enabling the city rent for period of years the building which Karel's bank occupied before the merger, and finally to purchase the building for a city hall at price of $187,000. At the trial before Judge Sullivan, Karel declared the $10,0000 was contribution. One of the former aldermen, who had been promised immunity, surprised the state by corroborating Karel's story. Judge Sullivan rejected the explanation and found Karel At State Auditor Barrett's office yes. terday it was stated that Mr. Barrett was investigating the case.