Churchill & Webber (Shelby, MI)

Episode Information

Episode UID
74083271576
Episode Type
Suspension → Closure
Bank Type
private
Bank ID
7408327 routing
Routing Number
74-0832
Start Date
April 27, 1931
Location
Shelby, Michigan (43.612, -86.364)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
fdafc298f38cc80d

Response Measures

None

Events (6)
1. April 27, 1931 Receivership
Newspaper Excerpt
receivers were right ... Shelby receivers. In October hearing was held ... the Shelby receivers.
Source
newspapers
2. April 27, 1931 Suspension
Cause Details
Bank closed April 27, 1931; articles do not specify a triggering rumor or correspondent failure—closure leading to receivership and liquidation.
Newspaper Excerpt
the closing April 27
Source
newspapers
3. January 15, 1932 Other
Newspaper Excerpt
Bank Status of Township Funds To Be Decided in Hart Suit Jan. 15
Source
newspapers
4. June 11, 1932 Other
Newspaper Excerpt
Receivers Ask Court Hearing on Proposal to Speed Liquidation
Source
newspapers
5. June 14, 1932 Other
Newspaper Excerpt
the private bank of Churchill and Webber, at New Era, failed to open for business on June 14, and will liquidate.
Source
newspapers
6. July 11, 1932 Other
Newspaper Excerpt
Plan of Shelby Bank Receivers To Dispose of Assets at Public Auction Meets With Success
Source
newspapers

Newspaper Articles (4)
1. January 6, 1932 The Muskegon Chronicle Muskegon, MI
Article from The Muskegon Chronicle, January 6, 1932

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Article Text

Bank Status of Township Funds To Be Decided in Hart Suit Jan. 15 Public Ranks Even Ahead of Lien on Loans by Correspondent Institution, Shelby Officials Insist. By Staff Correspondent Shelby Jan. -Interesting points law which may affect the status township funds deposited in Churchill and Webber private bank prior to its closing last April will be heard in the circuit court Jan rehearing granted by Judge Earl Pugsley at the request of Hinds, attorney for Shelby The rehearing was granted followrecent court opinion which held in the case of Rudolph E. state banking commissioner. VS. the United Savings bank of Tecumseh public funds have priority claim against cash hand and deposits banks in possession of a bank at the time of its closing In the case at hand. C. W. Tallant Shelby township treasurer, deposited $4,918.06 the and Webber prior to its closing The amount of hand in defunct bank the closing April 27 $891 including 50 cents in mutilated coin There were deposits of in the Old Kent Chase National bank New York and $8,160.73 in the Continental Illinois Bank and Trust company, Chicago, all correspondent banks Held as Under ordinary circumstances the bank might have the above items as cash on hand to be applied in the process of liquidation. matter of the latter together with $27,000 bonds 000 was held the Continental Illinois Bank and Trust company as lien against three loans made by the Chicago correspondent bank to the Shelby institution, totalling When the local bank suspended. the Chi cago the $8,160.73 as part payment of the lien During first stages of the receivership, funds collected in addi- hospital in Detroit, friends here have The doctor's average was more than 95 out of possible 100 points. Dr Drummond, who now with the New York medical center graduated from Grant High school with the class 1921. borrowed from the Peoples State Bank for Savings Muskegon. totalling between and $11,000 were applied on the lien and the edness was the security in bonds and notes being returned the Shelby receivers. In October hearing was held in Oceana Mr attorney Shelby sought to show that 73 should have ered as cash hand as such should have been treated priority claim At that time the given the public funds held in deposit at the time of closing of bank Judge Pugsley October held against counsel for the township on the that the deposit special deposit claimed by the township held funds deposited would have become special deposit if township officers had designated the purpose for which was Unlike the Reichert case, in which several deposited money the United Sav. ings which had been nated without obtain ing bonds from the bank as security Shelby designate and Webber bank as depository and Mr. Tallant failed to obtain Both Violate Statute. In the latter situation. counsel for the township holds that under the law both the bank and the treasurer violated provisions the ing statutes Counsel also adds that the law concerning designation of depository may be construed as only the statute reading that the township "may" desigdepository The raised in the rehearing should been cash hand available for priority distinguished from general claims whether receivers were right considering the appropriation the sum by the ent bank valid in decreasing the indebtedness the 000 in Whether the that the rehearing involves the affairs of private bank rather than state bank will make any substantial difference the is The court has the point that may other laws applying to the private bank as basis for ment At any rate. the hearing certainly will penetrate pioneer field. It is possible the case may reach the supreme court

2. June 11, 1932 The Muskegon Chronicle Muskegon, MI
Article from The Muskegon Chronicle, June 11, 1932

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Article Text

PLAN AUCTION ASSETS OF BANK Receivers Ask Court Hearing on Proposal to Speed Liquidation By Staff Correspondent facilitate the Shelby June assets of the defunct liquidation of Churchill and Webber private bank, receivers asked for hearing Circuit Judge Earl C. Pugsley before for consideration of creditors obtain per of general claims actual purchase and security assets mortgage by payments of cash as an alternative If the approved dividend of per for the sale of The with the assets receivers the right bid than value any the securities crued interest. In the on any offering the made highest above Should the creditor prefer payment per his claims, he would required to small percentages until the paid. The receivers to date have paid dividends and half per cent.

3. June 24, 1932 The Ironwood Times Ironwood, MI
Article from The Ironwood Times, June 24, 1932

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Article Text

MICHIGAN FINANCIAL SITUATION BRIGHTER More Banks Being Reorganized, Less Being Closed Throughout Michigan TWO U. P. BANKS CONSOLIDATE Interest in state banking affairs recently shifted to the Upper Peninsula as the result of a merger in Houghton of two national banks and the suspension of business by two banks at Iron River. The Houghton National Bank and the Citizens Na. tional Bank, of Houghton, were consolidated, the business of both institutions hereafter to be conducted by the Houghton National Bank. All deposit liabilities of the Citizens National have been guaranteed by the remaining institution. Houghton National Bank, headed by A. N. Baudin, was organized in 1865. It has resources in excess of $4,000,000 and deposits of approximately $3,000,000. The Citizens National Bank, organized in 1901, had resources of about $1,000,000 and deposits in excess of $750,000. Its president was A. F. Heidkamp. Merger of the two Houghton national banks, followed several days after the suspension of business by the Miners State Bank, of Iron River, and the Commercial Bank, of Stambaugh. The Iron River bank suspended on June 9. Directors declared the suspension was voted to effect a reorganization. The Commercial Bank, of Stambaugh, a neighbor institution, closed its\ doors the previous day. Two other bank suspensons were reported recently. On June 13 the Sherwood State Bank, Sherwood, organized in 1909, failed to open its doors. The suspension followed recent assessments on the stockholders and other efforts to keep the bank in operation. It is believed that depositors will be paid in full. The private bank of Churchill and Webber, at New Era, failed to open for business on June 14, and will liquidate. The bank was established in 1909 as a branch of the Churchill and Webber bank at Shelby. When the latter institution failed in 1931, the depositors fo the New Era bank agreed not to withdraw their deposts. Resources approximate $113,000. R. E. Reichert, banking commissioner, expresses satisfaction with the progress made in reorganization and reopening activities. He points out that, as a result of the co-operative efforts of depositors and state banking officials, assisted by new legislation, nine banks have been reopened since December 1, 1931. They are at Saline, Ypsilanti, Reading, Romulus, Bessemer, Bridgewater, Petosky, Caledonia and Fenton. Eight more have completed ararngements for reorganization and will reopen shortly. Reichert said that 35 other banks are working toward reorganization and are in various stages of progress, pointing either to their eventual reopening or the establishment of new banks. So far this year, sixteen banks have suspended business, while 13 were closed. Judge Frank L Doty has granted a court order approving the plan for reorganization of the First State Bank, of Milford, following a hearing which showed 89 per cent of the depositors in favor of the plan. A decree was to be signed this week providing for the bank's reopening. The Coloma State Bank, Coloma, was to be reopened late this week following an order by Judge Charles E. White terminating the receivership. A court order also was issued recently at Caro for the reopening of the State Savings Bank of Caro. R. E. Reichert, state banking commissioner, states that the Bay City Bank is in a condition to reopen at any time. This statement followed completion of an analysis and appraisal of the bank's assets. The depositors' committee of the Benton Harbor State Bank is within $100,000 of its goal in securing depositors' signatures to a reorganization plan. Forty per cent of the required amount of $850,000 of the deposits of the closed Clare County Savings Bank, Clare, has been signed to agreements for the bank's reorganization and reopening. Nearly $250,000 was paid out in dividends recently to depositors in three closed Michigan banks. H. R. Botkin, receiver, First National Bank, of Buchanan, closed last October, made a 45 per cent dividend distribution totaling $190,000 to 1,400 depositors. Depositors of the defunct State Bank, of Freeport, are receiving a 15 per cent dividend. W. R. Lobdell is receiver. The payment will total $31,100. A ten per cent dividend was distributed this week to depositors of the defunct Bridgman State Bank, closed in December 1930, by T. F. Gore, receiver. The payment totals about $27,000. The Bridgman bank has thus far paid out 30 per cent. A court hearing will be held befor Circuit Judge E. C. Pugsley, to facilitate liquidation of assets of the defunct Churchill and Webber private bank at Shelby. A plan has been proposed by which creditors would be able to obtain 20 per cent of general claims by actual purchase of notes, mortgages and security assets of the bank or by payments of cash as an alternative. The plan provides for the sale of the bank's assets at public auction. He came back a few days later and before the. officials could single him out again he had gotten on the outside of a few more free meals. Finally the county board agreed to appropriate money for the feeding of the indigent army. After that, it didn't last long. The last straw was reached when the men refused to help the city clear a municipal park. Shortly after the law was laid down. The bums had to go or something unpleasant would happen. Today men are living in jungles near the city. They are seldom seen on the streets. They do not molest anyone. The only time they ever were a nuisance was when the good people of Iron River tried to help them out. Iron River today has resumed its usual trend of life. Today We do not rub elbows with filthy bums. We are not accosted on every corner. The city hall is a clean building once again and the sidewalk in front of it may be walked over dry-shod. Better forget about the soup kitchen and flop house, Menominee.Iron River Reporter.

4. July 11, 1932 The Grand Rapids Press Grand Rapids, MI
Article from The Grand Rapids Press, July 11, 1932

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Article Text

Plan of Shelby Bank Receivers To Dispose of Assets at Public Auction Meets With Success Shelby, July 11.-The plan of allowing creditors of bank to buy at public auction the assets of the bank to satisfy their claims appears to have been satisfactory. For the first time in the history of Michigan banking this plan was tried when the receivers. Thomas Read and Rex R. Royal, offered the assets the Churchill & Webber private bank at public auction last week. The bank closed April 27, 1931 few ago the receivers sent petitions to all creditors asking permission to hold the public auction and sell all assets possible to the highest bidder creditors to receive credit for 20 per cent of their claim and pay the rest in cash and others to pay cash. Following the acceptance of this plan by majority of the creditors. Judge Earl Pugsley ordered the held Approximately $80.000 of assets were offered and about 000 sold The receivers will dispose of the rest in private sale whenever the opport offers. either to creditors or outsiders mortgage. note or other holding was sold below par and many went at premium. When enough cash has been received to make such action possible the will declare cash dividend 20 per cent to all creditors who have not received their 20 per cent dividend through the purchase of assets