Fifth Avenue Trust & Savings Bank (Moline, IL)

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ASK WOODBURN BE 5TH AVENUE BANK RECEIVER

Mass Meeting of Depositors, Attended by 500, Moves to Protect Assets.

CHEERING MESSAGE GIVEN

Wood Says Customers Close Bank When They Take Their Money Out.

Five hundred depositors of the Fifth Avenue Trust and Savings bank in cooperation with the officers of the institution moved swiftly to protect their interests last night at a mass meeting in the Moline high school auditorium. They agreed on the following plan: 1. To request the state auditor to appoint Robert S. Woodburn, director of the bank and a Moline real estate dealer, as receiver. 2. To allow Charles A. Darland, W. R. Moore and Charles King jr. to act as a depositors' committee to cooperate with the receiver during the liquidation process and keep the depositors informed of the progress. 3. To allow George M. Wood, Moline attorney, to act as permanent chairman of depositors' meetings. To Pay in Full. Both Mr. Wood and Mr. Woodburn expressed confidence that not only will the bank be able to pay all depositors in full but a substantial sum will be left over for the stockholders. Walter J. Peterson, president of the bank who called the depositors together, opened the meeting by asking for nominations for a permanent chairman. Mr. Wood was the unanimous choice of those He started his duties with a brief address explaining why the bank closed. its condition and why the depositors were called together. Mr. Wood said:

Why Bank Closed.

"When the Commercial bank closed. a large amount of money was withdrawn from the Fifth Avenue bank by panicky depositors. The directors to protect other depositors immediately put into effect the clause requiring sixty-day notice for withdrawal of savings. "Now in order for a bank to pay interest to depositors, it must lend the money to other persons at a higher rate of interest. Part of this money is invested in real estate mortgages, part in good bonds and part in other collateral "These mortgages may mature at any time from thirty days to ten years. Now when all the depositors come rushing in at once and want their money, of course the bank can't pay it. Time is necessary to turn all these investments into cash. Blames Panicky Depositors. "Even in normal times a bank could do nothing but close under those circumstances. If the depositors had kept their heads and left their money in the bank there would be no necessity for closing and liquidating the assets. "The other Moline banks are larger and stronger, so they easily weathered the storm and their depositors put their money back in them. The Fifth Avenue bank had received notice from their depositors that more than $160,000 was going to be withdrawn. Probably a lot of the depositors changed their minds and would not have taken out their money, but the bank could not open without sufficient cash on hand to meet all these demands. "The directors concluded that the depositors did not want the Fifth Avenue bank to continue business. They wanted to put it out of business and they did. Condition of Bank. "In order to show you that your bank was in good condition I will give you figures on how things stood when the doors were closed." Mr. Wood then presented the following figures on the bank's assets: Notes secured by real estate $149,881.95. Notes secured by other collateral Notes secured by endorsers-$64,480.62. Bonds- $174,230. Bank building-$82,305.90. Bank furniture, fixtures - $27,692.55. Deposits in other banks - $13,096.22. Cash on hand-$2883.64. Mr. Wood explained that the original cost of the building, lot and fixtures totaled more than $146,000. Deposits. The amounts owed by the bank were listed as follows: Savings deposits-$439,026.25. Commercial deposits-$32,704.17. Bills payable-$36,686.32. Mr. Wood said that the bills pay-

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AUDITOR SEEKS COURT HELP ON BANK RECEIVER

Bill Asks Confirmation of Selection of Cole for Fifth Avenue Affairs.

Confirmation of the appointment of Robert Cole receiver for the Fifth Avenue Trust Savings bank of Moline is asked in bill filed in the Rock Island county cuit court by the state of Illinois relation of Oscar Nelson, state auditor of public accounts. The bill the usual petition to give the receiver the authority of the court in liquidating the bank. Fred H. Railsback filed the bill. which shows the auditor represented by Attorney General Oscar and his assistant, Daird Kadyk. explained the bill that the bank Nov. tion of the board of directors, and that Dec. 23 the auditor named Mr. Cole receiver. and that he determined that the bank could reorganized. The bill says that the cash sources of the bank the day closed amounted to $15,620.27. an inadequate amount in comparison liabilities, auditor says. The auditor sets forth the condition of the bank revealed by his audit involved impairment of capistock to more than $60,000. Liabilities are listed follows: Capital stock. $100,000: surplus, $10,000; undivided profits, $5.077.49: demand deposits, 704.17; time deposits. bills payable. $36,686.32: drafts outstanding. $1,038.42: total. $624,Resources follows: Cash, $7,491.75: due from banks, $13,096.22: drafts collections, other loans and discounts, other real estate, $9,952.99; banking house, furniture fixtures, total, $624.-

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ASKS RELEASE OF SECURITIES POSTED BY BANK

Receiver for Moline Institution Moves to Surrender Trusts and Get $50,000.

Measures were taken today by F. A. Cole, receiver for the Fifth Avenue Savings Bank & Trust company of Moline, to release the bank of all trust obligations in order to obtain surrender of $50,000 in securities which are on deposit with the state. The question of trusts was referred by Judge Leonard E. Telleen in the Rock Island county circuit court to James F. Murphy, master-in-chancery of the court, to take evidence and report findings. The hearing began this morning before the master, and there was no contest of the proceedings. Under the state law, the bank in its trust capacity had to deposit securities with the state to cover its obligations, the trust activities, like those of the bank, being under supervision of the state auditor of public accounts, but supervised separately. In order to make the securities available in liquidation of the bank. the trusts must be closed as far as the bank is concerned and the company discharged. The probate court will name successors in trust in matters relative to estates pending in that court, and in the case of other trusts the circuit court will name the successors to the bank to handle private trusts. Fred H. Railsback, attorney for the receiver, filed the petitions and conducted the hearing before the master.

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Auditor Instructs Receivers That Applications Are Be Made for Advances.

Four closed banks of Rock Island county will among the 203 closbanks of Illinois receivwill make application for loans from the federal nance Uncollected sets of these banks represent roughly face value. Of these portion likely be that would not be acceptable for pledges to the ReconstrucThe two largest banks in this county that are closed are the Commercial Savings bank, Moline, which has million dollars, round figures. of uncollected assets, face and the State bank of East Moline, which has something less than unliquidated assets at face value. The depositors of the Commercial bank have received 10 per cent dividend. amounting to about $150.The depositors of the Manufacturers bank have received dividends to 19 per cent the of claims of depositors and $170,000 bills payable. The bank had assets of face value. when closed. Charles Smith, receiver for the Commerbank, and Oscar Ohlweiler, ceiver for the Manufacturers bank, said they had not determined what portion of remaining uncollectassets might be used basis for an application for loan. Cole, receiver for the Fifth Avenue Savings Bank and Trust company, Moline, estimates that uncollected assets of that bank, face value, amount to about $425,000. Depositors bank have had one 10 per cent dividend and another will be paid soon. The first amounted to in round figures. Harry E. Thompson, receiver for the Farmers State bank of Reynolds, has made 20 cent distribution. That bank had assets rated and the receiver's collections have been about $80,000. The assets are partly second mortgages, chattel mortgages and unsecured notes, and only survey would determine what portion might be useful as security for corporation loan. Associated Press dispatches from Springfield today said that Oscar Nelson, auditor of public accounts. the receivers banks to apply for loans. The instructions were issued of the amendment giving bank the power to pledge for loans. The money borassets rowed corporation would used to pay depositors. The amendment giving the quired authority receivers pected to be made effective within days proclamation from Governor Louis Emmerson. has been made regarding the type of securities ceptable by the corporation for loans. Nelson said everything possible would done the money distributed to depositors quickly as possible.

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RECEIVERS MOLINE MAKE

Commercial and Fifth Avenue Submit Statements nancial Condition.

TELL WHERE MONEY GOES

Next Payment to Depositors Depends on General Business Situation.

Reports on the costs of administration of the the Savings bank and the Avenue Savings bank of Moline made public today. prepared Charles Smith, bank and Cole, receiver charge the Fifth Avenue stitution, and cover the period from the dates of the banks until April 1933. connection with reports both receivers nounced that the amount the additional payments which will be made depositors will depend to great extent on general business conditions. the present time, it stated, there market for real estate mortgages, no matter how sound may be, and the bond market low that both receivers feel would be serious mistake attempt hurried liquidation and that depositors' interests served by delaying the securities owned by the two banks.

Prospects Cheering. bank has far paid total percent of liability. The Fifth Avenue percent. In both bulk of assets intact, the having disposed only such assets as have brought their approximate book Mr. Smith and Mr. Cole believe that institutions to their eventually high percentage their claims. Collection of stockholders' liability of 100 percent has been started Mr. Smith for the Commercial bank and

(Continued

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NAMED SUCCESSOR TO AINSWORTH

Circuit Court Appoints Him as celver to Collect Liability For Closed Bank.

Judge Nels A. Larson in the Rock Island county circuit court this morning allowed the petition of Lloyd Ainsworth of Moline for leave to resign as receiver to collect stockholders' liability of the Fifth Avenue Savings Bank Trust company of Moline, and appointed Cole, receiver for the bank, receiver to collect stockholders' liability to succeed Mr. Ainsworth. In his petition to the court, Ainsworth assigned the pressing need of attention to private interests, as his reason for resigning. No objections were offered to the acceptance of the resignation Mr. or appointment Mr. Cole. Attorney George Wood of Moline, group of depositors to appointment of Mr. Cole for the bank and had indicated that objections be filed his Mr. Ainsworth collect from was not present, though he had been notified of the hearing. Ainsworth was first appointin February, 1932, and he has collected $14,600 the stockholdliability, which he directed turn over now to Mr. Cole, pending an order for distribution. Liability of stockholders is $100,000. Bond of the receiver to collect bility was reduced from $100,000 $35,000 in an order signed by Judge Larson. Judge Larson allowed Mr. Ainsworth $150 for his services ceiver during the period of his vice. Fred H. Railsback presented the petition to the court as attorney for the receiver.

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EVANSTON MAN IN CHARGE OF CLOSED BANKS

Fred W. Allen Appointed to Replace Pemberton as Deputy Receiver.

OCCUPIES SKINNER HOUSE

May Be Placed in Control of Commercial, Fifth Avenue Institutions.

Fred W. Allen of Evanston today relieved G. Herbert Pemberton as deputy receiver of the Moline State Trust and Savings bank; the People's Savings Bank and Trust company of Moline and the Manufacturers' State bank of East Moline. William L. O'Connell of Chicago. appointed receiver for banks which have closed since Edward J. Barrett has been state auditor, made the appointment, replacing Mr. Pemberton because he has assumed his duties as president of the Rock Island Bank and Trust company. It is understood that the state auditor's office plans to establish deputy receiverships for banks within counties, which may mean that the auditor will appoint Mr. Allen as deputy receiver in charge of the closed Commercial Savings bank of Moline and the closed Fifth Avenue Trust and Savings bank of Moline. Charles J. Smith of Moline is now receiver for the Commercial bank and R. A. Cole of Moline is now receiver for the Fifth Avenue institution. Mr. and Mrs. Allen have moved to Moline, establishing their home in the Skinner residence at 1217 Eleventh avenue, Moline. They have four children, three of whom are attending Moline elementary schools and one a junior high school.

Has Been Receiver.

Mr. Allen has been deputy receiver of the Papanel: Kovac state bank and the Kaufman state bank during the last eighteen months. These banks have now been placed in a group with several others under one deputy receiver. For seventeen years Mr. Allen was connected with the First National bank of Chicago and for five years he was manager of the foreign exchange department of the Northern Trust company, Chicago This week all closed banks of Mercer county were placed under the supervision of one deputy receiver, J. M. Connors. The receivership of the Farmers' State bank of Reynolds, it is understood, will be placed in the Mercer county group instead of the Rock Island county group. For the time being, Harry E. Thompson of Rock Island remains in charge of the bank as receiver.

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AVENUE BANK WILL

Checks to Be Mailed Out This Week, Receiver Announces.

Dividends in the amount of five per cent will be paid to depositors the Fifth Avenue Savings bank, Moline, it was announced Saturday Robert Cole, receiver. Mr. Cole said he expected place the checks for the depositors the mails on Tuesday night, which means they will be delivered Wednesday. The total amount to be uted will $23,000. Approximatechecks will be mailed. Consent to pay dividend this time was obtained by Mr. Cole from Edward Barrett, state itor, at Springfield Friday The receiver rushed the procedure thru this time that the depositors would have the money available Christmas shopping. This will make total of per cent paid depositors of the Fifth Avenue bank The latest dividend come from general assets of the bank. Funds are available for per cent from the stockholder liability fund, but this payment being held because legal which veloped connection with attempt of Commercial bank receiver pay dividend from stockholder liability collections.

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Detailed Closed Banks Report on

Fifth Avenue Trust Savings Bank

Peoples Savings Bank Trust Co.

RECEIPTS RECEIPTS notes notes discounts From additional assets assets covered covered From rents, premiums interest rents and estate receipts loss Total 6,630.75 None expense 70,210.53 3,170.00 clerk settlement with state None expense expense 1,998.33 expense 10,558.42 1,663.19 banking spe23,797.48 450.00 expense payable and redis5,239.17 expense Interest payable 6,142.30 paid etc. 7,614.28 1,803.96 and Total hands 66,066.07 Total dividends Liability None receivership Total from 42,265.55 Other Receiver's Total expense Total Balance in hands receiver Total Commercial Savings Bank RECEIPTS From and $195,919.34 20% dividends from stock assets

Manufacturers State Bank of East covered None 52,073.41 and advancefund. receipts loss settlement state 7,055.93 expense expense 3,800.96 expense 2,730.12 spe300.00 and 170,000.00 bank building pense) 10,288.13 Total hands receiver Total Interest account Total collections from Receiver's Accountant' fee expense, in hands Total from bank 15% cent common assessment liability suit, the sum of been from the former this bank and the hands the disbursement at early date. Dividend Payments In the case of the Peoples SavBank Trust per cent has to the general claimants against bank. the Moline State Trust Savings Bank, paid to date. In the case of the State Bank East Moline 15 cent has been paid from the ceipts of assets of from the bank stockholders' Fifth Avenue Trust Savings Bank has paid 20 per in dividends from the stock assessment the cial Bank paid per in the and stock fund. The attorney for Peoples Savings Bank Clyde Walker and the case the Moline State Trust Savings Bank, Sinnett Britton counsel ceiver. James M. Johnston torney Manufacturers State Bank of East Moline, Railsback Fifth Trust Savings Bank Sinnett Britton recently Harper, former attorney for the the SavBank, resigned when William O'Connell took charge this bank. premiums and interest 64,536.92 3,311.48 receipts by 55,612.12 state 10,050.00 salary expense stenographer expense 16,259.96 expense 3,503.87 banking spe960.00 rediscounts 47,288.27 bills payadvancements, Total in hands receiver Total Stockholders' Liability RECEIPTS holders Receiver's and Balance in hands receiver Total paid from bank 16% assessment None

Moline State Trust Savings Bank RECEIPTS notes discounts assets covered premiums and 62,557.62 estate and receipts 92,393.68 loss 52,849.68 expense and 34,009.33 expense 7,483.63 expense 1,526.76 2,100.00 and 161,844.66 Interest common None receivership advancements 147.712.94 Total Total Liability from 1,200.00 holders

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BANK RECEIVER MOVES OFFICES

Vacates Quarters in Moline State Trust Because of Its Impending Reopening.

Offices of the receiver for closed Moline and East Moline banks will be removed from the present quarters in the Moline State Trust & Savings bank building to the Fifth avenue building, it was announced today by Fred W. Allen, deputy receiver.

William L. O'Connell of Chicago is receiver for all the banks involved, the Peoples Savings Bank & Trust company, the Fifth Avenue Savings Bank & Trust company and the Commercial Savings bank, all of Moline, and the Manufacturers State bank of East Moline. Mr. Allen, who has been the deputy in charge, is to become president of the reorganized Moline State Trust & Savings bank.

Removal of the records to the Fifth avenue building was to begin today. The change in location of

and songs will be given by children of the Sunday school. A Santa Claus will distribute gifts to the boys and girls.

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FIFTH AVENUE DEPOSITORS TO DRAW DIVIDEND

Moline Bank Receiver To Pay Seven Per Cent In Few Days.

Creditors of the Fifth Avenue Trust & Savings bank, Moline, will receive another dividend of seven per cent which will become available late this week, William L. O'Connell, receiver, announced today. Payment of the newest installment brings the total authorized dividend to 44 per cent. Edward J. Barrett, auditor of public accounts, has approved the payment.

Depositors will receive a total of $32,087.92 in a distribution to be made within a few days.

The sum of $201,660 will have been repaid to depositors. In addition to providing this total, the receiver has applied $36,386 toward retirement of bills payable at the time the bank ceased business.