8906. Berrien County Bank (Benton Harbor, MI)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
September 26, 1931
Location
Benton Harbor, Michigan (42.117, -86.454)

Metadata

Model
gpt-5-mini
Short Digest
e5bc14ec

Response Measures

Borrowed from banks or large institutions, Capital injected, Full suspension, Books examined

Other: State banking department took charge; receiver liquidated and paid dividends with RFC loan

Description

Depositors besieged the bank on Sept. 26, 1931; directors voluntarily closed to protect depositors. State banking department took charge and a receiver was appointed (Oct 16, 1931). The bank remained in receivership and paid dividends under the receiver (not reopened as an operating bank).

Events (4)
1. September 26, 1931 Run
Cause
Local Banks
Cause Details
Run by depositors influenced by the recent closing of the Commercial National of St. Joseph; depositors 'besieged the cages' and withdrew funds.
Measures
Directors voted to close the bank voluntarily to conserve assets and protect depositors; notice placed on door; state banking department called in.
Newspaper Excerpt
The Berrien County bank ... closed its doors. The Berrien county bank opened as usual this morning. Depositors besieged the cages for their money and as they did so the bank directors met ... and voted to close in order to conserve the bank's assets and protect all of the depositors.
Source
newspapers
2. September 26, 1931 Suspension
Cause
Local Banks
Cause Details
Voluntary closing by directors to protect depositors after heavy withdrawals triggered by panic linked to other local bank failure (Commercial National of St. Joseph).
Newspaper Excerpt
Two additional banks closed their doors today ... at 10:30 this morning the Berrien County bank ... closed its doors. ... notice on the door told the public that the bank was closed in order to the bank's assets and protest all of the depositors. ... the state banking department was taking charge.
Source
newspapers
3. October 16, 1931 Receivership
Newspaper Excerpt
NAMED BANK RECEIVER. BENTON HARBOR, Mich., Oct. 16. William Worth Bean, jr., ... has been appointed receiver for the defunct Berrien County bank in Benton Harbor.
Source
newspapers
4. September 17, 1932 Other
Newspaper Excerpt
The Berrien County bank in Benton Harbor will pay 20 per cent dividend next Tuesday. Announcement to this effect was made today by W. Worth Bean, the bank's receiver ... total of $125,612.82 will be paid out by the bank. Some 2,500 depositors ... will participate in the dividend.
Source
newspapers

Newspaper Articles (15)
1. September 26, 1931 The Herald-Palladium Benton Harbor, MI
Article from The Herald-Palladium, September 26, 1931

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LOCAL, STEVENSVILLE BANKS SHUT DOORS Voluntary Closings By Directors Of Institutions Taken As Final Move To Protect Depositors To Fullest Extent Two additional banks closed their doors today in the interests of their depositors rather than to continue to pay out money to meet runs which the bank managements felt could not be checked. The Stevensville State bank failed to open for business this morning and at 10:30 this morning the Berrien County bank-Benton Harbor's smallest bank-closed its doors. The Berrien county bank opened as usual this morning. Depositors besieged the cages for their money and as they did so the bank directors met in their room in the rear of the bank and voted to close in order to conserve the bank's assets and protect all of the depositors. Will Pay Out 100 Per Cent "We will pay out 100 cents on the dollar and not depositor will lose penny, said James M. Rose, dean of Benton Harbor's bankers and cashier of the Berrien County, as he turned the keys in the front door locks.' typewritten notice on the door told the public that the bank was closed in order to the bank's assets and protest all of the depositors. Stevensville Run Surprises The run which closed the Stevensville bank was something of a surprise in local banking circles as this little Lake Shore Drive bank was generally believed to be in good condition. However, depositors in the Stevensville bank, doubtless influenced by the closing of the Commercial National of St. Joseph yesterday, became panicky and began to drain the bank of its cash reserves. At o'clock yesterday afternoonan hour before closing time-the Stevensville bank had to close its doors because it had paid out all the cash in its coffers. Last night the directors held a session and decided rather than pull in more money and face another run today it had better close and thus protect all of the depositors in the liquidation that would follow. This morning, at opening time, notice on the front door stated that the bank had been closed by order of the board of directors and the state banking department was taking charge. The Stevensville bank's deposits, according to its last statement, aggregated about $300,000 Was City's "Baby" Bank The Berrien County was Benton Harbor's "baby" bank, the youngster of the local banking group. had deposits of approximately million dollars. K. Minary, long head of the local Street Railway company, was its president. Mr. Rose, its cashier. has been identified with Benton Harbor banking circles for the best part of his life. Mayor Stouck and City Manager Barnard are among its directors. Grimly Face Situation The Berrien County officers and directors grimly faced their situation this morning. It was either a question of meeting the run until every available dollar was exhausted or closing for the protection of all its depositors. Last night there was conference of the bank's officials and other local bankers and also representatives of the state banking department from Lansing. The decision to close this morning was reached, providing this morning continued to insist on drawing out their money. Calmly Meeting Crisis The crisis precipitated by the closing the Commercial National of St. Joseph this morning was being calmly met today by Benton Harbor's banks. Even the closing this morning of the Berrien County caused no ripple of commotion among the officials of in the three other banks. Loaded with great stacks of currericy, the other three banks of the city were meeting every demand that came with perfect assurance that they could weather the storm. From the federal reserve in Chicago and other depositories the three surviving banks drew on their immense cash reserves. Officials of the banks believed that before the day was over the worst of the storm would be over; that depositors would realize what they were doing. and would refuse to promote any more bank failures. At noon today the situation peared better. even in the face of the two voluntary closings here and at Stevensville. Draw Out $30,000 The directors of the Stevensville bank voted to close last night after depositors had pulled out over $30,000 from the little institution. Fred Jung, cashier, notified Fred

2. September 28, 1931 The Herald-Palladium Benton Harbor, MI
Article from The Herald-Palladium, September 28, 1931

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Benton Harbor Bank Depositors Have Never Lost A Dollar By Bank Failures AN EDITORIAL THAT EVERY CITIZEN SHOULD READ AND NOT FORGET Benton Harbor bank depositors have never lost a dollar through their banks-and Benton Harbor has had banks for more than 50 years. Up until last Saturday the only bank that ever failed in Benton Harbor was the First National Bank. That was some And the depositors of that bank got 100 cents on the dollar. They never lost a penny! The old timers of the city will remember the failure of the Fir National, in the late 90's, as we remember it. Gossip got out on the streets and whispered about the story that the First National was "weak." Eventually the bank closed. pointed receiver. a 10 per cent dividend. From that hour until this, over 30 years, not a Benton Harbor dollar was lost in the banks of Benton Harbor. Last Saturday the Berrien County bank closed as a measure of protection to all of its depositors. Think of it, fellow citizens, that was the first bank to close in Benton Harbor in more than 30 years! And the Berrien County bank voluntarily closed up rather Cashier Rose of the Berrien County says he is confident that ures-if you want to call them that-never cost depositors 80 much as one thin dime. This newspaper has no word of censure for the man who has a few hundred dollars in the bank and, in a moment of fear, draws it out. It is his money and he is entitled to it. a bank closes its doors their money is lost. The records of Benton Harbor banks, over a period of years, show that banks of Benton Harbor have been 100 per cent We dare say that in the 50 years of Benton Harbor's commercial life, citizens have lost millions in poor investments, in business ventures of one sort and another. What man has not lost money in investments? But from the beginning of Benton Harbor's banking history until this very day not a dollar that was ever deposited in Benton Harbor banks has been lost. Remember that fact when

3. October 16, 1931 The South Bend Tribune South Bend, IN
Article from The South Bend Tribune, October 16, 1931

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MOTORISTS CAN GET COPY OF LAW Ralph W. Wetsel, manager of the St. Joseph County Automobile License bureau in the Chamber of Commerce, announced to-day that the office of the secretary of state in Indianapolis has forwarded literature explaining the new Indiana financial responsibility law to the bureau, where it is available to motorists. NAMED BANK RECEIVER. BENTON HARBOR, Mich., Oct. 16. William Worth Bean, jr., prominent Benton Harbor resident, has been appointed receiver for the defunct Berrien County bank in Benton Harbor.

4. November 7, 1931 The Herald-Press Saint Joseph, MI
Article from The Herald-Press, November 7, 1931

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Receiver for Berrien County Bank in Begins Taking Claims Worth Bean, Jr., receiver for the Berrien County bank in Benton AND Harbor, today announced that he was ready accept claims against Paramount the bank from all depositors. Formal claims by depositors must be made Sound out and submitted to the receiver. Blanks for this purpose may be ob- News tained from Mr. Bean the bank. The receiver the bank's The Eyes and Ears ters, on West Main street, from to the World in the morning and from in the afternoon, each day. Mr. Bean said today he could hazard no guess this time as to just when could pay the first dividend to Since his appointment YOU'LL THRILL TO as receiver some three weeks ago he has been busy with details incident THIS DELIGHTFUL the organization of the receiverROMANCE WITH ship.

5. November 7, 1931 The Herald-Palladium Benton Harbor, MI
Article from The Herald-Palladium, November 7, 1931

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BANK RECEIVER CALLS FOR CLAIMS FROM DEPOSITORS W. Worth Bean, receiver for the Berrien County bank, today announced that was ready to accept claims against the bank from all positors. Formal claims by depositors must made out and submitted to the receiver. Blanks for this pose may be obtained from Mr. Bean the bank. The receiver at the bank's quarters, on West Main, from to the morning and from afternoon, each day. Mr. Bean said today he could hazard no guess this time just when could pay the first dividend depositors. Since his appointment receiver some three weeks ago has been busy with tails incident to the organization the filing of claims depositors the first step looking toward the liquidation of the bank's assets, which funds are collected that depositors may their first dividend.

6. May 5, 1932 The Herald-Palladium Benton Harbor, MI
Article from The Herald-Palladium, May 5, 1932

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BANK RECEIVERS' SALARIES SLASHED BY JUDGE WHITE A readjustment of the salaries of receivers of state banking institutions in Berrien county was announced by Judge Charles E. White today. On recommendation of officials of the state banking department the judge signed orders which reduced the salaries of the various receivers to become effective May 1. Judge White stated today that the fixing of salaries for bank receivers on the new scale met with the approval of the state banking department. The reductions of the receivers salaries were fixed as follows: Berrien County Bank, Benton Harbor from $6,500 to $4,800. Benton Harbor State Bank from $6,000 to $4.800. Bridgman State Bank from $5,000 to $3,600. New Buffalo State Bank from $2,500 to $2,000. Stevensville State Bank from $4,000 to $2,800. Buchanan State Bank from $4,000 to $3,000. daughters, Mrs. Al Fuller and Mrs. Allson Post, both of Livingston. Funeral services will be conducted at 2 o'clock Saturday from the residence and at 2:30 o'clock from the Methodist church at Bridgman. Burial will be in Greenwood cemetery at Bridgman. The United States has nearly as much invested in the City of Shanghai as it has in the whole of Japan$356,000,000 and $500,000,000 respectively.

7. May 6, 1932 The Niles Daily Star Niles, MI
Article from The Niles Daily Star, May 6, 1932

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Berrien County News Briefs ST. JOSEPH-A readjustment of the salaries of receivers of state banks in Berrien county was announced by Judge Charles E. White. On recommendation of the state banking department, the judge signed orders which reduce the salaries of the various receivers, effective May Judge White stated that the fixing of salaries for bank receivers on the new scale met with the approval of the state banking department. The reductions were as follows: Berrien County bank, Benton Harbor, from $6,500 to $4,800, Benton Harbor State bank, from $6,000 to $4,800. Bridgman State bank, from $5,000 New Buffalo State bank, from $2,500 to $2,000. Stevensville State bank, from $4,000 to $2,800. Buchanan State bank, from $4,000 to $3,000. BENTON HARBOR-Warm balmy spring weather has not only brought out blossoms and buds for festival week, but has attracted tropical visit ors to the twin citles in the form of a blonde haired tarantula and a pair of alligators. Thursday morning, while unloading bananas at the A. & P. store on East Main street in Benton Harbor, a large tarantula was discovered. He was promptly but cautiously deposited in a large glass jar. The giant spider differs from the several that have been seen here from time to time in that its hair is light brown rather than On display in the meat window of the same store are pair of alligators, who slither slowly around a display of lobsters and yawning "toothfully" at spectators. BENTON HARBOR-The Blossom Queens' Alumni association, an organizatoion comprised of former queens from various cities of Michigan, was formed Wednesday evening at a banquet in the Wisteria room at the Hotel Vincent, at which a number of 1931 queens were the guests of Elwyn Simmons, a member of the Blossom festival committee. Those in attendance were the 1931 queens from Niles, Berrien Springs, Bridgman, Three Oaks, Three Rivers, Dowaglac, South Haven, Ypsilanti, Watervliet, Sturgis and Flint. Officers were elected as follows: President, Mrs. Leo Dwan; vice president, Mrs. George Parren: secretary, Gussie Leder, of Bridgman; Angelita Harmes, South Haven, and Therese Briggs, St. Joseph, co-chairmen. The purpose of the organization is to help sponsor worthwhile projects pertaining to the success of future Blossom week events, such as helping girls to enter queen cotnests, sponsoring floats and other enterprises. Annual dues are to be 50 cents each, and it is expected 600 members will enter the organization as a starter. Each 1931 queen is expected to get her predecessors to join this organization. This year's queens will be eligible for membership after Sunday. BRIDGMAN-William Baldwin, 87 for nearly 80 years a resident of Livingston, died Thursday morning at his farm home \after a long illness. He had been confined to his bed the last six months. Mr. Baldwin was born in Pennsylvania Feb. 11, 1835, and removed with his parents to Michigan at an early age. The deceased is survived by two daughters, Mrs. Al Fuller and Mrs. Allson Post, both of Livingston. Funeral services will be conducted at two o'clock Saturday from the residence and at 2:30 o'clock from the Methodist church at Bridgman. Burial will be in Greenwood cemetery at Bridgman.

8. August 4, 1932 The Herald-Press Saint Joseph, MI
Article from The Herald-Press, August 4, 1932

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LOCAL NEWS IN BRIEF Spend Month of August Here The Rev. and Mrs. W. S. Dunlop and children, Joan and Blair, are spending the month of August in this city, which is their former home. They have taken the W. V. West home at 300 Lake Court for month. The Rev. Dunlop, who was formerly rector of St. Paul's Episcopal church in this city and organizer of St. Stephen's, Benton Harbor, has been rector of the Church of the Epiphany in Cincinnati, O., since May 1930 Miss Martha Selbert of Cincinnati is a guest of Mr. and Mrs. Dunlop. Asks $2,755 In Suit A suit to collect on a note in the sum of $2,755.00 was filed in the Berrien county circuit court today by W. Worth Bean, receiver for the Berrien County bank, Benton Harbor, against E. Berk, St. Joseph fruit broker. The note was dated September 9, 1931, and was payable 90 days from that date. Attorney Charles W. Gore represents the bank receiver. Cast Guardsmen Pienic The ninth annual picnic of coast guardsmen of the tenth district, extending from Louisville, Ky., to Bois Blanc, Mich., was in progress today at South Haven. To Picnic at Barron Lake The Twin City, Niles and South Bend Assemblies of the Order of the Rainbow for Girls will picnic Tuesday evening. August 9, at Barron lake. All members have been requested to attend and to call Miss Ella Howorth for further information. Directors Hold Meeting The Rev. Louis Nuechterlein, pastor of Trinity Lutheran church in this city, has returned from Detroit, where he attended a meeting of the board of directors of the Michigan district of the Lutheran synod The directors were in session at Detroit for two days. W. Stem III. W. E. Stem, of Benton Harbor, auditor for the Industrial Rubber company, St. Joseph, who has been confined to his home the past week with severe cold and complications, is reported about the same. To Meet at Hasse Homestead The Hasse-Angolin family reunion will be held on Sunday, August at the Hasse homestead on Washington avenue, it was announced today.

9. August 19, 1932 The Herald-Press Saint Joseph, MI
Article from The Herald-Press, August 19, 1932

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Dividend Authorized Judge Charles White in Berrien county circuit court today authorized Receiver Worth Bean, the Berrien County bank, Benton Harbor to pay per cent dividend depositors in the closed $125,613 probably be paid early next was indicated. Grant H. Longenecker, chairman the committee, announced following the hearing He explained that considerable detall remains be worked before the bank can open, but said would open within the next three weeks. The hearing this morning conby Sid Erwin, assistant state ducted attorney general in charge of banking matters. Three Witnesses Called three witnesses were called, Only County Clerk Benjamin H. Bittner, Arthur Foeltzer, receiver, and liarHudson, bank examiner from old the state department. The hearing less than half hour. prepared and submitted to Judge White for his signature. This the last legal step necesthe of the bank. sary closed last Filed Clerk Bittner testified that no jections the reopening plan has filed the circuit court. also testified that objection had been filed with no him. He said the depositors' agreement been signed per cent of the total deposit liability After testifying relative to the and liabilities the bank, ReFoeltzer stated that no irregular illegal withdrawals by had been made for period prior to its closing last December. He the state banking depart(Continued on page 2.)

10. September 17, 1932 The Herald-Press Saint Joseph, MI
Article from The Herald-Press, September 17, 1932

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BENTON HARBOR BANK WILL PAY 20% DIVIDEND Berrien County Depositors to Receive Checks on Tuesday The Berrien County bank in Benton Harbor will pay 20 per cent dividend next Tuesday. Announcement to this effect was made today by W. Worth Bean, the bank's receiver, who today had loan from the federal Reconstruction Finance corporation, making possible the Mr. Bean was back today from Detroit, where yesterday afternoon finally the government funds which make the dividend possible. Will Pay Tuesday The dividend will paid Tuesday, Mr. Bean stated. He goes to Lansing Monday to make final arrangements for the payment with the state County depositors their dividend by coming to bank. total of $125,612.82 will be paid out by the bank Some 2,500 depositors, commercial and savings, will participate in the dividend, including all account First Get Loan The loan which the bank gets the first Finance Corporation loan made in the country closed state bank. Because the loan set precedent for closed state banks the Washington agency was very particular the negotiations and tape that preceded the actual voting of the loan. Mr. Bean began negotiating for the loan from the Reconstruction Finance Corporation about six months ago. At times he despaired getting any(Continued on page 2.)

11. September 17, 1932 The Herald-Palladium Benton Harbor, MI
Article from The Herald-Palladium, September 17, 1932

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Berrien Co. Dividend The Berrien County bank will pay percent dividend next Tuesday to this effect made today by W. Worth Bean, the bank's who today had loan from the federal Finance Corporation, making possible the dividend. Mr. Bean was back today from Detroit, where afternoon he finally the funds which make the dividend possible. Will Pay Tuesday The dividend will be paid Tuesday, Mr. Bean stated. He goes to Lansing Monday to make final arrangements for the payment with the state treasurer. Berrien County depositors can get their dividend by coming to the bank. total of $125,612.82 will be paid out by the bank. Some 2,500 depositcrs, commercial and savings, participate in the dividend, including all account claims. First To Get Loan The loan which the local bank gets the first Finance Corporation loan made in the country closed state bank. Because the loan set precedent for closed state banks the Washingagency was very particular the negotiations and red tape that preceded the actual voting of the loan. Mr. Bean began negotiating for the loan from the Finance Corporation about six months ago. (Please turn to Page Eight)

12. March 22, 1933 The Herald-Palladium Benton Harbor, MI
Article from The Herald-Palladium, March 22, 1933

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SALARY OF BANK RECEIVER IS CUT Circuit Judge Charles White today issued order salary Worth Jr., ton Harbor, of the Berrien County bank in Benton Harbor, to year. This the second salary cut the receiver has received his following the closing the bank in the fall of 1931. On May the salary from to By the order today, the salary the receiver's first reduced to $1,800 year, and his ond assistant's salary to

13. June 18, 1934 The Herald-Press Saint Joseph, MI
Article from The Herald-Press, June 18, 1934

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BENTON HARBOR STATE BANK RECEIVER SUES ON BENTON MORTGAGE William Worth Bean, Jr., receiver for the Berrien County State bank, today filed suit in the Berrien circuit court against E. and Elizabeth Granger of Benton township for The suit was brought to collect on mortgage the bank claims the defendants gave pn 10 acres of land, north of Benton Harbor, as security to loan given W. and L. L. Woodley, in September, 1926. The suit was filed through Attorney Charles W. Gore, attorney for the receiver.

14. June 18, 1934 The Herald-Palladium Benton Harbor, MI
Article from The Herald-Palladium, June 18, 1934

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BENTON FOLK SUED BY BANK RECEIVER William Worth Bean, receiver the Berrien County State bank, today filed suit the Berrien circuit court against and Elizabeth Granger of Benton township for $17.The suit was brought to collect on mortgage the bank claims the defendants gave acres of land, north Benton Harbor, security loan given W. and Wood1926. The filed through Attorney Charles Gore, attorney for the receiver.

15. December 15, 1934 The Herald-Press Saint Joseph, MI
Article from The Herald-Press, December 15, 1934

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BERRIEN COUNTY BANK BENTON HARBOR MONDAY Worth Bean, receiver for the Berrien County bank Benton Harbor, playing Santa Claus for the depositors of that institution. Mr. Bean today that beginning Monday would pay other five per cent dividend to positors. It's the third dividend the Berrien County bank receiver has paid this and follows close upon the heels of recent five per cent distribution. The first five per cent dividend this year was paid during the summer and shortly afterward followed by other distribution. Now comes the third, which with the original 20 per cent paid two years ago, makes total per cent which Receiver Bean has distributed to the bank's deposiThe Berrien County bank closed in September Checks will be ready for the Monday, said Mr. Bean today. The work distributing the last dividend was only recently completed and some checks have not been called for. Depositors are asked call the bank for their last checks.