First National Bank - Cheboygan, MI

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 3235
Charter Number: 3235
Start Date: June 11, 1930
Location: Cheboygan, Michigan (45.647, -84.474)

Metadata

Model: gpt-5-mini
Short Digest: b0cb2153

Response Measures

None

Receivership Details

Depositor recovery rate: 89.6%
Date receivership started: 1930-06-12
Date receivership terminated: 1934-08-27
OCC cause of failure: Fraud
Share of assets assessed as good: 59.6%
Share of assets assessed as doubtful: 38.7%
Share of assets assessed as worthless: 1.7%

Description

A $303,000 shortage by the savings teller (Clyde Milliken) and his subsequent suicide led the board to close the bank (June 11, 1930). The comptroller/examiner (Henry/ Harry F. Quinn) was put in charge and receivers were later named (report by June 13, 1930). No run is described; this is a suspension leading to receivership/closure due to bank-specific adverse information (shortage/possible embezzlement).

Events (4)

1. August 6, 1884 Chartered

Source: historical_nic

2. June 11, 1930 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Discovery of a $303,000 shortage in the bank's accounts tied to the savings teller Clyde Milliken, who committed suicide; board closed the bank to protect depositors.
Newspaper Excerpt: A shortage of $303,000 has been discovered in the First National Bank ... The bank has been closed by order of the board of directors and has been placed in charge of Henry F. Quinn, examiner.
Source: newspapers

3. June 12, 1930 Receivership

Source: historical_nic

4. June 13, 1930 Receivership

Newspaper Excerpt: Harry F. Quinn ... had notified the comptroller ... had named receivers and that their way not advised of their ... Victory Sprague, president of the bank, today repeated assurances ... the comptroller had named receivers ... (article about June 13). (OCRy text corrected).
Source: newspapers

Newspaper Articles (2)

1. June 11, 1930 Cumberland Evening Times Cumberland, MD

Article from Cumberland Evening Times, June 11, 1930

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Article Text

LEADING BANK OF MIAMI FAILS TO OPEN (Continued from Page 1) and Trust Company, and the Bank of Coral Gables. J. H. Gilman. president of the bank. said today: "At meeting of the directors this morning. after with the state comptroller, it was decided not to open the bank and its affiliated institutions, the Biscayne Trust Company, Miami Beach Bank and Trust Company, and the Bank of Coral Gables, in order to protect all of our depositors to the fullest extent. "This decision was made after due consideration and was due to recent substantial withdrawals." Homestead. Fla., June 11. (AP) The Bank of Homestead closed its doors at 10 a. m., EST.. today, after opening for short time. Assistant Cashier H. Grady Smith said the bank was in good condition and that suspension of business was but temporary, taken for the purpose of avoiding local bank run on account of bank failures today in Miami. He said the bank expects to open in a few days. Cashier Suicide: Bank Closes Cheboygan, Mich.. June 11, (AP) A shortage of $303,000 has been discovered in the First National Bank whose savings teller. Clyde Milliken suicide, Monday night. The bank has been closed by order of the board of directors and has been placed in charge of Henry F. Quinn, examiner.

2. June 13, 1930 The Flint Journal Flint, MI

Article from The Flint Journal, June 13, 1930

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Article Text

CHEBOYGAN BANK'S BAILEY TO FACE RECEIVERS NAMED FIRST WITNESSES Cheboygan, Mich., June been pointed to the fairs the First National bank here which Wednesday after shortage of discovered the savings ment, the Clyde Milliken, committed suicide. Harry F. Quinn, porarily said that had notified the comptroller of the had named receivers and that their way not advised of their Victory Sprague, president of the bank, today repeated assurances that the expects pay depositors more than and were commercial accounts amounted to $230,000. Detroit, June The first witnesses against John Balley, charged with ob. taining by false from Union Investment Co., were ready take the stand in recorders court today. Louis Weitzman, assistant prosecuting said the four will be clerks finance company are alleged Bailey for part the between April state will attempt to prove that Bailey obtained the money from the finance company on the basis of fictitious automobile and their resultant financing by the company, the listing of used cards as new and the two financing operations on only one automobile.