First State Bank (Milford, MI)

Episode Information

Episode UID
74074371624
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7407437 routing
Routing Number
74-0743
Start Date
April 3, 1935
Location
Milford, Michigan (42.594, -83.599)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
247202a1b2fd1f50

Response Measures

None

Description

Local citizens padlocked the bank door in protest after the state removed the receiver.

Events (1)
1. April 3, 1935 Suspension
Cause
Government Action
Cause Details
State banking commission ousted receiver Eugene Carey and appointed John N. Daley; bank in receivership and effectively closed with locals padlocking the door.
Newspaper Excerpt
A delegation ... after putting a log chain and padlock on the bank door.
Source
newspapers

Newspaper Articles (6)
1. April 3, 1935 The Niles Daily Star Niles, MI

Article Text

Late Flashes DENIES BANKERS' ACQUITTAL DETROIT, April 3.—(AP)—Federal Judge Ernest A. O'Brien denied a defense motion for a directed verdict of acquittal at the trial of John Ballantyne, John Hart and Herbert L. Chittenden, former officials of the First National Bank-Detroit, charged with falsifying a report to the comptroller of the currency. BANS ITALIAN PAPER BERLIN, April 3.—(AP)—German authorities today banned the Italian newspaper, Gazetta Del Popolo, for having stated that Germany is planning to extend its aspirations to Ireland where, the newspaper said, the Reich intended to establish "a base of operations" against England. Protest to Governor Against Removal of State Bank Receiver MILFORD, Mich., April 3.—(AP)—Business and professional men of Milford declared a holiday today to carry protest to Gov. Fitzgerald against the removal of Eugene Carey as receiver for the First State bank. At a mass meeting Tuesday night F. Hubbell, Milford business man, charged that Carey's dismissal was prompted by politics. W. Scott Lovejoy, village president, and a number of other speakers supported Hubbell's

2. April 3, 1935 The Flint Journal Flint, MI

Article Text

CAREY'S REMOVAL STIRS A VILLAGE Milford Takes Holiday and Padlocks Bank When Receiver Is Ousted. Milford, Mich., April 3.—(By INS)—This village of 1,400 was at a standstill today as business men took a "holiday" on Mayor W. Scott Lovejoy's order as a protest of the ousting of Eugene Carey as receiver for First State bank of Milford, by the state banking commission. A delegation of 50 men was chosen to see Gov. Frank D. Fitzgerald after business men charged the state banking department was "playing politics" with the institution in a meeting held in an undertaking parlor Tuesday. The delegation left for Lansing today after putting a log chain and padlock on the bank door. "The lock is not coming off until Carey is reinstated," Lovejoy said. The ouster was issued, a spokesman for the delegation said, after Carey refused to pass on a $400 fee for February submitted by Burton P. Daughtery, Pontiac attorney and former Oakland county clerk. Rudolph E. Reichert today issued a statement in which he said Carey was "just a popular local boy not suited to the job of receiver."

3. April 3, 1935 Detroit Free Press Detroit, MI

Article Text

Ouster Brings Village Protest Milford Resents Bank Receiver's Removal MILFORD, April 2—A holiday has been declared by business men here for Wednesday in protest to the summary ouster of Eugene Carey as receiver for the First State Bank. A delegation of business and professional men headed by W. Scott Lovejoy, president of the Village, and Henry Richardson, head of the Depositors Committee plan to go to Lansing to protest to Gov. Fitz-

4. April 4, 1935 The Escanaba Daily Press Escanaba, MI

Article Text

Protest Removal Of Bank Receiver Lansing, Mich., April 3 (AP)—A delegation of forty citizens of Milford protested the removal of Eugene Carey as receiver of the First State Bank of that city in a hearing before Banking Commissioner Rudolph E. Reichert today. John N. Daley was recently appointed in Carey's place. The commissioner took the delegation's plea for reinstatement of Carey under advisement promising a statement tomorrow. He charged that liquidation of the receivership had been "unusually slow."

5. April 5, 1935 Jackson Citizen Patriot Jackson, MI

Article Text

REICHERT DEAF TO MILFORD'S PLEAS Commissioner Refuses to Reinstate Discharged State Bank Receiver. Lansing, April 6.—(AP)—The newly appointed receiver of the First State bank of Milford, John N. Daley, was armed with the authority of Rudolph E. Reichert, state banking commissioner, today to take necessary legal steps to take over the institution's records. Reichert turned a deaf ear to demands of a Milford delegation that he reinstate Eugene Carey as receiver. Upholding Daley's appointment, Reichert said Carey had liquidated only $4,564, or 1.6 per cent, of the bank's assets from August, 1934, through December. "At that rate," Reichert said in a statement, "it would be problematical whether Carey would live to complete the liquidation." The banking commissioner said an investigation disclosed that a number of Carey's backers were "debtors to the bank rather than creditors." "Take the case of Mayor Lovejoy, who issued the proclamation calling a holiday and who stated that a padlock would remain on the bank until Carey was reinstated," Reichert said. "Mr. Carey's report discloses that the mayor owes the bank $8,180 and that he is not personally a depositor." All Milford business houses closed Wednesday, while a delegation carried to Lansing its protests over the change in receivers.

6. April 5, 1935 Jackson Citizen Patriot Jackson, MI

Article Text

Lansing, April 6.—(AP)—The newly appointed receiver of the First State bank of Milford, John N. Daley, was armed with the authority of Rudolph E. Reichert, state banking commissioner, today to take necessary legal steps to take over the institution's records. Reichert turned a deaf ear to demands of a Milford delegation that he reinstate Eugene Carey as receiver. Upholding Daley's appointment, Reichert said Carey had liquidated only $4,564, or 1.6 per cent, of the bank's assets from August, 1934, through December. "At that rate," Reichert said in a statement, "it would be problematical whether Carey would live to complete the liquidation." The banking commissioner said an investigation disclosed that a number of Carey's backers were "debtors to the bank rather than creditors." "Take the case of Mayor Lovejoy, who issued the proclamation calling a holiday and who stated that a padlock would remain on the bank until Carey was reinstated," Reichert said. "Mr. Carey's report discloses that the mayor owes the bank $8,180 and that he is not personally a depositor." All Milford business houses closed Wednesday, while a delegation carried to Lansing its protests over the change in receivers.