Union Savings Bank & Trust Company (Davenport, IA)

Episode Information

Episode UID
72000371581
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
7200037 routing
Routing Number
72-0003
Start Date
September 29, 1931
Location
Davenport, Iowa (41.524, -90.578)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
a93c07d7ba2efcc9

Response Measures

None

Description

RFC placed $5,750,000 to make 40% of deposits immediately available; bank entered voluntary liquidation in December 1932.

Events (3)
1. September 29, 1931 Run
Cause
Rumor Or Misinformation
Cause Details
Following the American Bank failure, malicious rumors circulated against the Union's credit causing sustained withdrawals.
Measures
Borrowed funds to meet withdrawals; arranged RFC loan and issuance of passbooks via new Davenport Bank & Trust to make 40% available.
Newspaper Excerpt
When the American Bank closed September 29, 1931, the Union Savings Bank valiantly stood a heavy run in which depositors took out several million dollars before it subsided.
Source
newspapers
2. December 24, 1932 Suspension
Cause
Voluntary Liquidation
Cause Details
Officers and directors chose to close and liquidate the bank after prolonged withdrawals and decline in asset values; RFC arranged $5,750,000 deposit at Davenport Bank & Trust to pay 40% of deposits.
Newspaper Excerpt
announcement of the voluntary liquidation of the Union Savings Bank & Trust Co., and the closing of several outlying banks.
Source
newspapers
3. February 3, 1933 Receivership
Newspaper Excerpt
appointment...associate counsel for the receiver in the liquidation the Union Savings Bank and Trust company was approved late Thursday District Judge Maines.
Source
newspapers

Newspaper Articles (14)
1. December 27, 1932 Quad-City Times Davenport, IA
Article from Quad-City Times, December 27, 1932

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Article Text

PLANFORU.S. FRAUD TRIAL FRUSTRATED Best Legal Talent in Athens Engaged by Former Utility Baron. LOANS DECLARED LEGAL Companies' Laws Respected in Transactions, Court Told. The Greek courts today rejected an American petition for the extra dition of Samuel Insull. former Chicago utilities official Insull, debonair and talkative. walked into a courtroom of this ancient Greek capital today with the best legal talent the country afforded to defend himself against the extradition demand from Chi cago. The former multimillionaire util ities operator is charged with em bezzlement and larceny Has No Profesison The hearing commenced at 9:30 m. Mr. Insull asked for trans lator and Pandelis Raptarkhis, a lawyer, appointed. Mr. Insull gave his identity and declared he had no profession and that he agreed that the hearing be public He named Christos Ladas and Dionysi Lazarimos attorneys for the defense. Also present in court was Arthur Page, his British attorney. Soon after public Attorney Riganakos began his opening speech, interrupted. protesting against the taking of motion pictures. The president of the court issued an order prohibiting photographing. Approved Vouchers. Attorney Riganakos, opening the case, read a deposition by Oliver McCormick. treasurer of the Utilities companies, explaining how Samuel Insull approved vouchers and proper officers issued checks for the payment of $66,000 and $104,000 to Martin Insull's brokers. The McCormick deposition said the authority to make the pay. ments was based on Samuel in sull's approval. The attorney also referred to depositions by John A. Swanson, state's attorney of Cook county, n1., declaring the aforesaid acts were punishable Lazarimos, the junior counsel for Insull, followed with long plea, explaining how loans were made ac. cording to by-laws of the companies He declared McCormick, in his deposition, had said that, being treasurer, he issued the vouch ers which Samuel Insull approved. The vouchers. the attorney said, were checked by an auditor. booked by competent clerks, and approved by a comptroller. Appeals to Conscience. Treasurer McCormick was responsible for the custody of the companies' property and, Lazarimos added, should be indicted first if an offense existed. He appealed to the court's "conscience" demanding rejection of the petition for extradition as not having legal basis. Christos Ladas. chief defense counsel, asserted the United States upholds the right of asylum, generally denying extradition except in cases where the offense is proved. He described Insull as benefactor of humanity and praised the course his client followed when disaster overtook his interests. He had not finished speaking at the mid-day recess. Officials of Local Banks Lose Fight for 50 Per Cent. ACTION NOW FINAL Bank Employes Start on Job of Getting New Passbooks Ready. Officers of the Union Savings Bank and Trust Co. were notified by officials of the Reconstruction Finance Corporation at both Chicago and Washington today that a fund of $5,750,000 to make 40 per cent of deposits of that institution immediately available was the best recommendation they could accept. After several hours of negotiations over long distance telephone, it was agreed that this amount will be placed to the credit of the Union bank depositors in the new Davenport Bank and Trust Co. at once. Local bank officials explained that at a meeting in Chicago last Thursday with Reconstruction Finance corporation officials the latter agreed to make 55 per cent available to the local depositors. On Saturday this amount was changed to 50 per cent, and today the amount was cut to 40 per cent before the negotiations were closed. Officials of both the Union bank and the new Davenport Bank & Trust Co., who worked valiantly all day to secure the 50 per cent for Union depositors, expressed disappointment at this result. It was at first thought that the work of issuing these new passbooks could be started Wednesday morning, but this was found to be humanly impossible. Union bank employes will work all night check ing ledgers and preparing these new books, however, and the business of issuing them will get under way in few days Each depositor of the Union bank will be furnished with a pass book on the new Davenport bank, show. ing his or her 40 per cent that is available in deposit there. There is no need for Union depositors to present themselves at that bank Wednesday, as the bank will be opening for several weeks or as long as necessary to issue all books. The $5,750,000 placed on deposit with the Davenport bank will insure payment of 40 per cent to each and every Union bank deMeanwhile the new Davenport Bank & Trust Co. continued normal operations today The Davenport bank will pay all of its depositors promptly. and no day notice or any notice is being asked, It was While lobby of the new Davenport bank was comfortably filled most of the day only a normal amount of business was transacted. There were only a few people at the various windows at time and employes took care of the patrons without difficulty. A large crowd assembled outside the Union Savings Bank & Trust Co. this morning and remained there thru the day.

2. December 27, 1932 Quad-City Times Davenport, IA
Article from Quad-City Times, December 27, 1932

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Article Text

TO THE PEOPLE OF DAVENPORT Again the citizens of Davenport must rise to meet an emergency in its business and financial affairs with the announcement of the voluntary liquidation of the Union Savings Bank & Trust Co., and the closing of several outlying banks. We need not dwell on the reason for this. When the American Bank closed September 29, 1931, the Union Savings Bank valiantly stood a heavy run in which depositors took out several million dollars before it subsided. Obviously, this could not have been done without borrowing money to pay to depositors. Since that time malicious rumors have been continually circulated against the credit of the bank, causing continual steady withdrawals ever since. The officers and directors decided rather than continue this drain on their resources they would close the bank and liquidate. It was hoped that the Reconstruction Finance Corporation would consent to pay immediately to depositors of the Union Savings Bank 50 per cent of their deposits. The Reconstruction Finance Corp. has only agreed to allow 40 per cent payment on deposits. To accomplish this the Reconstruction Finance Corp. will place with the new Davenport Bank & Trust Co. $5,750,000 in cash to be used for that purpose. When you take into consideration that when the American Bank closed depositors were required to wait nine months before they had access to 40 per cent of their deposits, and that in this closing they can have access to the same amount of their deposits immediately, it will be seen that the government's facilities for taking care of distressed bank depositors are working much more efficiently. The cause of the closing of the Union Bank must be apparent to everyone. The terrific drop in values of real estate, both city and country, and in the price of bonds, made it impossible for the bank to realize anything like the true value of these assets. Under the receivership, these assets will be conserved, and not dumped on the market at once for what they will bring. We strongly urge the people of Davenport to remain calm in this emergency and consider the conditions of the situation, which not only affects this community, but every community in this country, and in fact, in the world. We are going through the most severe depression this country has probably ever seen, and we must all do our part to help right matters. This leaves the new Davenport Bank & Trust Co. as the only banking institution left in Davenport. We want you to know that this new bank sound and safe in every particular. There is no safer banking institution in the United States today. The new bank has no frozen assets, owes no money, and owns no real estate. Practically all of its assets are in cash and Government Bonds and other liquid securities. The fact that the Reconstruction Finance Corp. placed millions of dollars in the new Davenport Bank to pay the Union Bank depositors is concrete evidence of its soundness and liquidity. We also wish you to know we will continue to conduct this new bank in a safe and conservative manner with the interests of its depositors first and foremost. Probably within the next year or two a new bank will be organized and in operation, as Dayenport needs, and should have, at least two banks to transact its business. We will assist in such organization in every way possible. In the meantime, the new Davenport Bank & Trust Co. will endeavor to the fullest extent to take care of the banking business of Davenport in the most efficient manner possible. We ask your cooperation and ur support. We ask your earnest consideration of the seriousness of the situation. We fully believe that you will loyally support this new institution. and help us to bring Davenport back again to its old standing as a sound and progressive business community, after the excitement has cleared away. Depositors in the Union Savings Bank may call at the Union Bank any time during banking hours and have their accounts cleared and receive a bank book on the new Davenport Bank & Trust Co. for 40 per cent of their good deposits. This money will be available to them in the new Dayenport Bank at any time. E. P. Adler C. D. Waterman T.J. Walsh Harry Littig Karl P. Teske Dr. Fred H. Lamb Kuno Struck J. W. Bettendorf J. L. Hecht H. O. Seiffert Joseph Kimmel V. O. Figge Directors Davenport Bank & Trust Co.

3. December 27, 1932 The Daily Times Davenport, IA
Article from The Daily Times, December 27, 1932

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Article Text

TO THE PEOPLE OF DAVENPORT Again the citizens of Davenport must rise to meet an emergency in its business and financial affairs with the announcement of the voluntary liquidation of the Union Savings Bank & Trust Co., and the closing of several outlying banks. We need not dwell on the reason for this. When the American Bank closed September 29, 1931, the Union Savings Bank valiantly stood a heavy run in which depositors took out several million dollars before it subsided. Obviously, this could not have been done without borrowing money to pay to depositors. Since that time malicious rumors have been continually circulated against the credit of the bank, causing continual steady withdrawals ever since. The officers and directors decided rather than continue this drain on their resources they would close the bank and liquidate. It was hoped that the Reconstruction Finance Corporation would consent to pay immediateto depositors of the Union Savings Bank 50 per cent of their The Reconstruction Fideposits. nance Corp. has only agreed to allow 40 per cent payment on deposits. To accomplish this the Reconstruction Finance Corp. will place with the new Davenport Bank & Trust Co. $5,750,000 in cash to be used for that purpose. When you take into consideration that when the American Bank closed depositors were required to wait nine months before they had access to 40 per cent of their deposits, and that in this closing they can have access to the same amount of their deposits immediately, it will be seen that the government's facilities for taking care of distressed bank depositors are working much more efficiently. The cause of the closing of the Union Bank must be apparent to everyone. The terrific drop in values of real estate, both city and country, and in the price of bonds, made it impossible for the bank to realize anything like the true value of these assets. Under the receivership, these assets will be conserved, and not dumped on the market at once for what they will bring. We strongly urge the people of Davenport to remain calm in this emergency and consider the conditions of the situation, which not only affects this community, but every community in this country, and in fact, in the world. We are going through the most severe depression this country has probably ever seen, and we must all do our part to help right matters. This leaves the new Davenport Bank & Trust Co. as the only banking institution left in Davenport. We want you to know that this new bank sound and safe in every particular. There is no safer banking institution in the United States today. The new bank has no frozen assets, owes no money, and owns no real estate. Practically all of its assets are in cash and Government Bonds and other liquid securities. The fact that the Reconstruction Finance Corp. placed millions of dollars in the new Davenport Bank to pay the Union Bank depositors is concrete evidence of its soundness and liquidity. We also wish you to know we will continue to conduct this new bank in a safe and conservative manner with the interests of its depositors first and foremost. Probably within the next year or two a new bank will be organized and in operation, as Davenport needs, and should have, at least two banks to transact its business. We will assist in such organization in every way possible. In the meantime, the new Davenport Bank & Trust Co. will endeavor to the fullest extent to take care of the banking business of Davenport in the most efficient manner possible. We ask your cooperation and your support. We ask your earnest consideration of the seriousness of the situation. We fully believe that you will loyally support this new institution, and help us to bring Davenport back again to its old standing as sound and progressive business community, after the excitement has cleared away. Depositors in the Union Savings Bank may call at the Union Bank any time during banking hours and have their accounts cleared and receive bank book on the new Davenport Bank & Trust Co. for 40 per cent of their good deposits. This money will be available to them in the new Davenport Bank at any time. Adler Waterman Walsh Harry Littig Karl Teske Dr. Fred H. Lamb Davenport Bank Trust Co. Kuno Struck J. Bettendorf Hecht Seiffert Joseph Kimmel Figge Directors

4. December 27, 1932 The Daily Times Davenport, IA
Article from The Daily Times, December 27, 1932

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THE Money Available at the Davenport as Soon as Possible IS FINALLY Action Is Disappointing But Only Wait In Line at Union Bank Reduction of the amount which depositors of the Union Savings Bank & Trust Co. will receive through loan arrangements with the Reconstruction Finance Corp. from 50 to 40 per cent was announced this afternoon. This reduction regarded as highly disappointing by local bank officials, was finally accepted here after valiant efforts to persuade the Reconstruction Finance Corp. to adhere to its original promise to allow loan that would permit disbursement of 50 per cent of deposits. At today officials here finally informed by the Reconstruction Finance that the best figure the governmental body could recommend was per cent of the good deposits. Arrangements to close this agreement were being made this afternoon. Accordingly the sum of $5,750,000 will be deposited in the new Davenport Bank & Trust Co., and the money made available the earliest possible moment. Speed Clerical Employes of the Union Savings bank work steadily in order that all detailed and clerical work may be cleared away as soon possible, that depositors may call the Union with their books, have them checked, new pass books on the Davenport Bank Trust for their 40 per cent. The latter bank will have the money on hand promptly take care of all demands of Union depositors. It explained today that when Davenport bank officials conference in last Thursday with was arrived at for loan that would permit of 55 per cent of deposits in the Union bank. Later, on last Saturday, this figure changed to cent, and the Chicago officials left Dav. enport, after having given that that figure would hold. Agree to Terms Clearance the loan, the money for which delivered this early, was expected by today. did not come, the front of the bank were kept waitTelephone calls were put Chicago, was learned the attempts to down the Although the local banking officials this attempt they finally forced to agree. Depositors of the Union bank are advised that there need crush the bank tomorrow Evdepositor will be treated alike, and the bank will remain open long may be necessary to take The Davenport Bank Trust was again emphasized, meeting all demands of depositors. The bank is in liquid condition, and sound respect. has imposed no any kind, and continue the banking needs community Money on deposit available any time. arrange for opening account the new Bank Trust Co. asked after regular banking hours, and they be taken Although the lobby enport Bank Trust filled during the morning, there was only the business transacted. time were there more than three four front any and employes were difficulty to take needs of patrons. Crowd Union A crowd began gathering the Union bank about morning and from that time until noon the sidewalk the street. Although bank remained closed and this afternoon, the crowd

5. February 3, 1933 Quad-City Times Davenport, IA
Article from Quad-City Times, February 3, 1933

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APPOINT EXTRA COUNSEL IN UNION BANK RECEIVERSHIP ACCUSES WIFE OF DESERTION: Appointment Glen Kelly, Smith and Swift. Carl H. Lambach ASKS A DIVORCE and Bush and Bush as associate counsel for the receiver in the quidation the Union Savings Bank and Trust company was approved late Thursday District Judge Maines. The appointments were requested by Cook and Balluff. who are in charge of the legal work. Gilbert, who accuses his wife, Florence, of deserting him on Sept. 1930, has filed suit for vorce in the district court. Mr. and Mrs. Gilbert were married Oct. 1925. They have no children. John Weir attorney for the husband.

6. February 7, 1933 The Rock Island Argus Rock Island, IL
Article from The Rock Island Argus, February 7, 1933

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Attorneys for Receiver Instructed to Suit Against Northwest Davenport Group. Instructions to bring suit against stockholders the Davenport Savings bank, which pended operations Dec. 24, for special assessment levy, the receiver conference suit will filed for March of court and directed 300 The bank captialized at Eggert, cashier, the largstated that similar action started against the Home Union banks Davenport and the Bettendorf bank. inventory of Home ings filed today expected Bettendorf Savings bank inventory would be ready afternoon The Home Savings bank had capital $50,000 shares stock. Charles Pasche the largest number shares, and Catherine Walsh shares. Assets fixed and liabilare the figure.

7. March 29, 1933 Quad-City Times Davenport, IA
Article from Quad-City Times, March 29, 1933

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DEMANDS A. Healy Wants ceiver to Turn $13,559 Over to Sheriff. An order citing Bert McCulloch, charge the Union Savings Bank Trust company, April 12 explain failure the pay Healy, head the Healy his per funds the bank sued today by District Judge The citation, Issued in response an application filed Merle and Nathan Grant, attorneys for Healy, followed the filing the latter claim for petition of intervention. When bank suspended busiin December, Healy had deposit in three commercial accounts. the sum of been attached Oct. with district action instituted Fuller company, an action which pending. Noations the bank balance sheets attached the court petition filed today Healy's attorindicate that the cent owing Healy connection liquidating of the bank being withheld because of garnishment proceedings. The citing of the examiner court for for purpose clearing this tion and the same time explain the failure of the the per cent the funds. petition of Healy asking court for order directing the over the attached in Fuller company suit the sheriff to held the latter until the litigation adjudicated. He also asking that he receive cent the balance accounts after the deducted.

8. May 12, 1933 Quad-City Times Davenport, IA
Article from Quad-City Times, May 12, 1933

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Court Hears Motion for Release of Funds Held by Receiver. Arguments on motion for the release $6,500, the $13,500 held under presented trict Judge court today by counsel for Healy, Healy Construction defendant filed by the Fuller company, and involving receivership of the Union Savings Bank and Trust company, as the garnishee. Counsel for the receiver insistthat the Fuller company made party to the litigation volving release of the and the motion sustainby the The later when the pleadrevised. Merle Wells and Nathan Grant Healy Cook and Balfor the bank receiver. appear

9. July 18, 1933 Quad-City Times Davenport, IA
Article from Quad-City Times, July 18, 1933

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BANK RENTALS TOTAL $15,227.83 IN THREE MONTHS Gross income from office and safety deposit box rentals the Union Savings bank & Trust company Brady streets, totaled the months ending June cording report building manager under the receivership. Disbursements during the same period totaled $12,836.35 Cash bal* hand July totaled $4,The report was approved Judge Scott.

10. July 27, 1933 The Dispatch Moline, IL
Article from The Dispatch, July 27, 1933

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WHOLESALE GROCER FILES PETITION IN BANKRUPTCY William F. Kelly, president of the John F. Kelly company, wholesale grocers of Davenport, now in the process of liquidation, has filed a bankruptcy petition in federal district court. Mr. Kelly lists debts of $79,300, including a note of $72,500 given by the grocery company to the Union Savings Bank and Trust company and which is the reason for liquidation of the company at the request of the bank's receiver. Mr. Kelly signed the note as an individual as well as in his capacity of president and the bankruptcy action will release him from personal responsibility in its payment except in pro rata division of personal assets. Assets are listed as $14,300, which includes $14,000 in insurance, a car valued at $125 and & cemetery lot valued at $100.

11. October 3, 1933 Quad-City Times Davenport, IA
Article from Quad-City Times, October 3, 1933

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Trustee Gives Assurance On Realty Transfer to Mortgagee. Payment of per cent dividend creditors the John Kelly company, whole sale today by Betty, following the assignment of the company's property Second and Iowa streets to the Union Savings Bank Trust company receivership the Reconstruction Finance corporation, The reality holdings, valued the transfer $45,000, turned to the receiver and the part payment of six notes totaling $70,250, plus accrued interest. The transfer, approved by Dis trict Judge Maines, for the release the mortgage with the bank and the entitled file claim for the ficiency, his report to the court the explains that per cent dividend will be the payable creditors, the bank immediately following the transfer.

12. March 6, 1934 Quad-City Times Davenport, IA
Article from Quad-City Times, March 6, 1934

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PRIORITY Supreme Court Orders Werthmann Case Reopened. Another hearing on the claim of Charles Werthmann and his two brothers for preference in the Davenport Savings bank liquidation has been ordered the Iowa supreme court in ing reversing the decision renderDistrict Judge denied the claim. In their the Werthmanns' charged that Albert Eggert, then cashier the bank, served clerk sale for the and took the proceeds to the depositing their They claimed they had asked for the funds, told by the cashier he had completed the clerical work. Before they could obtain the money bank closed. Julius and Bush Bush their attorneys.

13. August 31, 1934 The Des Moines Register Des Moines, IA
Article from The Des Moines Register, August 31, 1934

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KRABBENHOEFT IS HELD LIABLE Bank Receiver Wins $130,000 Judgment. DAVENPORT IA. District Judge W. Maines awarded judgment here Thursday D. W. as receiver the Union Savings Bank & Trust Co., as outcome of suit brought against Roy J. Krabbenhoeft, former assistant bank cashier. The suit was started May the receiver to recover money Krabbenhoeft was alleged to have converted to his own use from January, 1924, December, 1932. The said Krabbenhoeft concealed his defalcations by manipulating bank records and therewas indebted to that amount. Krabbenhoeft recently was paroled from Fort Madison penitentiary where he had been tenced for embezzlement. calves, head:

14. August 31, 1934 The Daily Times Davenport, IA
Article from The Daily Times, August 31, 1934

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Union Is Awarded $130,000 Decree On Krabbenhoeft Judge W. R. Maines awarded D. W. Bates, receiver for the Union Savings Bank & Trust Co. of Davenport, a judgment of $130,000 against Roy J. Krabbenhoeft, former assistant cashier, late yesterday in Scott county district court. This is the amount he is declared to have embezzled in various sums over a period from Jan. 1, 1924, to Dec. 24, 1932, and for which he was sentenced to Fort Madison state penitentiary. Recently paroled, Krabbenhoeft is reported to be employed in Arizona. Service of the suit was obtained upon him May 3 at the penitentiary through Warden Glenn C. Haynes, and he failed to present a defense. His only representation when the receiver's claim was presented was that of Attorney Charles L. Dollerhide, who was appointed by the court as guardian ad litem. Robert D. Wells of the law firm of Cook & Balluff, counsel for the Union bank receiver, presented the evidence by which the decree was obtained. In fixing at $130,000 the amount in which Krabbenhoeft is indebted to the bank because of his embezzlements, the court also found that he had manipulated the records SO that the loss was not known before December of 1932. In addition to allowing judgment for the amount of the embezzlements, the decree also provided an award of interest of six per cent from Dec. 24, 1932, and costs. It has been indicated by counsel for the receiver that no property of Krabbenhoeft is known which may be attached on a writ of execution, but that the receiver was anxious to reduce the claim to a judgment in the event that means of recovery were discov- The Union bank receivership has pending a suit in federal district court here, in which compensation of $25,000 is asked of the Maryland Casualty Co. under a bond of that amount carried on Krabbenhoeft.