9306. Peoples State Bank For Savings (Muskegon, MI)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
October 2, 1931
Location
Muskegon, Michigan (43.234, -86.248)

Metadata

Model
gpt-5-mini
Short Digest
e5bde2bc

Response Measures

None

Description

The Peoples State Bank for Savings in Muskegon failed to open Oct 2, 1931 and was closed for reorganization or liquidation at direction of the directors and the State Banking Department; a receiver was appointed and the bank did not reopen. Subsequent articles document receivership, claims filing, litigation over bonds, and dividend distributions. No explicit isolated run triggered the closing in the provided texts.

Events (4)
1. October 2, 1931 Receivership
Newspaper Excerpt
When the bank closed recently the [trusts?] were in default. A. J. Maynard, receiver of the bank, has demanded the return of the bonds... Leon F. Titus, receiver ... announced tomorrow is the final date for filing claims against the Peoples [bank] for closed by the state on ... Leon F. Titus receiver ... following the closing of the bank on Oct 1931 remained to assist the Maynard, first receiver and his successor, F. Titus ... (articles Nov 1931 - Mar 1932).
Source
newspapers
2. October 2, 1931 Suspension
Cause
Government Action
Cause Details
Bank closed for reorganization or liquidation at the direction of the directors and the State banking department; state banking officials took control and a receiver was appointed.
Newspaper Excerpt
The Peoples' State Bank for Savings failed to open for business today. A notice stated that the bank was closed for reorganization or liquidation at the direction of the directors and the State banking department.
Source
newspapers
3. August 11, 1932 Other
Newspaper Excerpt
Depositors of the Peoples State ... will get dividend of $135,754.80 to be distributed by receiver for The Peoples Bank ... first dividend will be distributed to more than 6,000 persons ... some depositors will receive 10 per cent ... checks called for at the Peoples ... Half of accounts will be paid this time ... plans for reopening unaffected ... conference was in Lansing ... little encouragement ... to five Muskegon and Grand Haven sharewhat they should prepare. (1932-08-11 article).
Source
newspapers
4. January 31, 1934 Other
Newspaper Excerpt
Ruling by Circuit Judge John Vanderwerp that the receiver for Peoples State Bank for Savings may not withhold dividends on impounded deposits of the county of Muskegon ... opens the way for release of approximately $42,000 in dividends ... (1934 court decision).
Source
newspapers

Newspaper Articles (13)
1. October 2, 1931 St. Louis Post-Dispatch St. Louis, MO
Article from St. Louis Post-Dispatch, October 2, 1931

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Article Text

CLOSING STEUBENVILLE, Muskegon Depository Taken Over by State; Had Deposits at Last Report. Special to the CHICAGO, Oct. outlying Chicago banks closed their doors today. They were the Calumet National, the Hegewisch State, the Brighton Park State and the Marshall Square State. The Calumet National in its last report showed total of and deposits of 422. The bank was in the hands the Comptroller of the Currency. The Hegewisch Bank had deposits of the Brighton Park State deposits were and Marshall Square deposits amounted to All the banks taken over by the State Auditor. Kewanee (III.) Bank Closes Doors; President Died Recently. First National Bank here failed open its doors today. Dana, cashier, issued statement saying that account heavy drawals, directors deemed close. The bank solvent and directors expect to pay depositors in full, Dana said. The bank had deposits of Edward Whiting. president of the bank, died last Saturday. Oct. The Union Savings Bank and Trust of suspended business today and was taken over for liquidation by State Banking Directors last night voted to ask the State to liquidate the bank to which they said had been paired by deposits. The bank last 30 reported total resources 000. It capitalized for $350,and reported surplus of Oct. This town of 6000 population without today when the First National Bank of and the Banking Trust State depository. failed open business. tices announced the banks closed pending In June the Richwood Banking Co. reported of deposits $599,331 and the First National ported deposits of $533,770. Muskegon, Mich., Bank With $2,286,938 Closes. the Mich., Oct. failed People's State Bank for Savings to open for today. stated that the bank was closed for liquidation the direction directhe State Banking Department. The last financial statement showed total resources of 480, deposits of $2,286,938 and of $300,000. Oct. trust companies in closed their doors today. They were the Onley Bank Trust two branches the Jefferson Title and Trust Utica State Bank in La Salle County (III.) Suspends. The Utica State Bank Utica, near here. failed to open its doors today, fifth bank to close in La Salle County in four days. Officers of the Bank which was capitalized $50,000. said deposiwould be repaid in full and that run on bank caused the closing. Three Ottawa banks and one at Serena, near here, also been closed.

2. October 2, 1931 Evening Star Washington, DC
Article from Evening Star, October 2, 1931

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SIX BANKS IN FOUR STATES CLOSE DOORS Two Philadelphia and Two West Virginia Houses Lead City Failures. By the Associated Press. PHILADELPHIA, October 2. - Two neighborhood trust companies in Philadelphia closed their doors today. They were the Oiney Bank & Trust Co., Fifth street and Tabor road, with two branches, and the Jefferson Title & Trust Co., at Twenty-ninth street and Girard avenue. Their affairs were placed in the hands of the State Banking Department. City Without Bank. RICHWOOD, W. Va., October 2 (AP), -This town of 6,000 population was without banking facilities today when the First National Bank of Richwood and the Richwood Banking & Trust Co., a State institution, failed to open for business. Notices posted on the doors announced the banks were closed pending reorganization. Last June 30 the Richwood Banking & Trust Co. reported deposits of $599,331 and capital stock of $50,000. The First National reported deposits of $533.770 and capital stock of $40,000. STEUBENVILLE, Ohio, October 2 (A).-The Union Savings Bank & Trust Co. of Steubenville suspended business today and was taken over for liquidation by Ira J. Fulton, State banking superintendent. Directors last night voted to ask the State to liquidate the institution to conserve assets which, they said, had been impaired by a heavy withdrawal of deposits during the past two weeks. The bank last June 30 reported total resources of $4,841,000. It was capitalized for $350,000 and reported a surplus of $275,000. Bank to Liquidate. MUSKEGON, Mich., October 2 (P).The Peoples' State Bank for Savings failed to open for business today. A notice stated that the bank was closed for reorganization or liquidation at the direction of the directors and the State banking department. The last financial statement showed total resources of $3,068,480, deposits of $2,286,938 and capital of $300,000.

3. November 19, 1931 The Muskegon Chronicle Muskegon, MI
Article from The Muskegon Chronicle, November 19, 1931

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SEEKS RETURN OF DEPOSITORY BONDS Bank Receiver, County Officials in Controversy Over Sale A controversy has arisen over the sale of bonds disposed the Bankers Trust tion of Muskegon the City North Muskegon and several whose funds were in the Peoples State Bank for Savings A J. Maynard receiver of the bank, has demanded the return of the bonds, claiming their sale was illegal. Notices the recovery of the bonds held as security accounts have been served upon the county, North Muskegon, townships and the trustee. County officials plan to ignore the holding the ment with the clearly the trustee has the right to sell the bonds in cases default in payment by the bank When the bank closed recently the in default. The were and the money turned over the several public bodies by the trust for deposit in other Muskegon banks where accounts were The trust company acted the direction of the public government bonds held by the trustee to protect the county account. Another $14,500 in bonds held to protect the North Muskegon account Any excess over exact amount the on the bank closed is being held in trust by the The county fund was the largest public account on

4. December 12, 1931 The Muskegon Chronicle Muskegon, MI
Article from The Muskegon Chronicle, December 12, 1931

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BANK RECEIVER ASKS FOR CLAIMS than 3,000 or than We Specialize in More half the total of about have been filed by and Coon Skins depositors of the Peoples State Bank For it was stated toand day by receiver. Mr. urged other depositors to file their as possible Silver Foxes that he be able determine how large first dividend be after March 1, the final Bring in your furs and get your soon filing money. No waiting for returns. Savings claims have been received MUSKEGON HIDE & during the past three weeks, while the started comRENDERING CO. mercial claims about two weeks 564-568 Ottawa St. small number claims have been filed

5. March 1, 1932 The Muskegon Chronicle Muskegon, MI
Article from The Muskegon Chronicle, March 1, 1932

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TOMORROW FINAL DAY FOR CLAIMS Peoples Bank Receiver Sets 8:30 P. M. as Hour for Closing Tomorrow is the final date for filing claims against the Peoples for closed by the state on was announced today by Leon receiver and savings depositors will be allowed until m. to file their an from p. the stated in the order Circuit Judge John Vanderwerp, Mr. Titus referred to recent statement by Rudolph E. Reichert to plain the of a first to cannot be made in less than 45 days after tomorrow. Mr Reichert's statement was follows: "After the final filing date 45 days are allowed the receivers consider gation already will to out way before they can be finally disposed That also require court Commissioner Reichert's statement was published in an article on in state laws that will be at special of the legisla ture recently called by Governor Brucker "One of the controversial issues almost come up be of clarifying the definition preferential was dozen this related subjects are now litigation before the state Supreme court the adjudicating retarding first bursements of dividends in scores of cases. cern the priority of the claims trust and "The question of preferential rating for public funds deposited without specified by hurdle the ing difficult to Recently held that such were deposited irregularly and were fact trust accounts entitled to become preferred 'Vigorous opposition is expected to demand for legislation provide that such public funds given the same status as other dewas stated Mr Titus and the Trust company, of the and Merchants State of Casnovia have vitally these questions before the state Supreme court that they have filed, through attorneys, Parmenter and of Muskegon, brief the case of Reichert plaintiff Farmers Workingmen's Savings defend-

6. March 2, 1932 The Muskegon Chronicle Muskegon, MI
Article from The Muskegon Chronicle, March 2, 1932

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I. H. HAMILTON LEAVES TO TAKE NEW POSITION H. Hamilton, former cashier of the Peoples State Bank for Savings left yesterday to assume new position as cashier of the First National bank of Aurora, Ill, an institution with resources of more than $6,000,000. Mr. Hamilton to Muskegon in June, when named cashier of the Peoples bank succeed Harry Bodine, former executive Following the closing of the bank on Oct 1931 mained to assist the Maynard, first receiver and his successor, F. Titus present are sorry to lose Mr. Hamilton who was most familiar with our and bank official," Mr. Titus said today in anhis resignation Mr. Hamilton will be associated in Aurora with L. H. Wilson, former Michigan state bank examiner and national examiner. Mr Wilson of the First NaMr. Hamilton was chief Michigan bank examiner prior to his election as cashier of the Peoples bank on June 17 He is native Ludington, where his parents now live.

7. April 4, 1932 The Muskegon Chronicle Muskegon, MI
Article from The Muskegon Chronicle, April 4, 1932

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CONFIRMS LAW, PEOPLES BANK RECEIVER SAYS Today's decision of the state Sumerely confirms the law requiring certain assets the savings plained here receiver the Peoples State Bank for Savings "Until the inventory has been completed would able statement as great case Peoples Savings deposits totaled when the Peoples closed order banking No tribution of assets has been made as yet. The Muskegon bank intervened in court ruled interjecting tain points of law which ceiver's attorneys held should considered

8. May 23, 1932 The Muskegon Chronicle Muskegon, MI
Article from The Muskegon Chronicle, May 23, 1932

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SHIELDS STILL SAYS HE WILL NOT RUN Prominent Michigan Dem Here Contends Return of Business Important Now The Muskegon county circuit court room today the meeting place of several men high in the political ranks of the state of Michigan Edmund C. Shields, of Lansing, prominent Michigan Democrat and spoken as possible candidate for the for was there as counsel suit brought Muskegon county against the Michigan Surety company to collect $20,000 depository bond for funds kept in the Peoples State bank. Another was Thomas Read, of lieutenant governor of Michigan. Mr. Read was there the interests of of the Peoples State bank of Muskegon. On the other side of this case was Senator Gordon VanEenenaam of this district whose law firm was appointed legal counsellor for the bank receiver. Mr. Shields, chairman of the State committee during the terms that Woodbridge N. Ferris was governor and who both of Mr Ferris' campaigns, said again today he would not be candidate for governor this fall. "I've never held public office and I'm getting too old to seek office he said. right now party interests should be submerged in an honest attempt to bring business back to normalcy, he said Mr. Shields member of the State Bar Examining board. get lot of enjoyment out of watching these prospective lawyers come Mr. Shields said in speaking of the recent state bar examinations. "The examiners have to work night and day for two weeks but there comes lot of enjoyment out of our to measure the minds growing Some have worked all their life for this two and half day find great in the type of examinations written today over those of years ago, he said.

9. May 23, 1932 The Muskegon Chronicle Muskegon, MI
Article from The Muskegon Chronicle, May 23, 1932

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County Opens Suit To Collect on Bond Of Surety Company Trial of the $30,000 suit which the county of Muskegon has brought against the Michigan Surety company of Lansing to collect on depository bond which the defendant company furnished in connection with county deposits at the People's State bank, got underway in circuit court today. The county suing for the principal the bond in the amount of $20,000 plus interest due from the date the bank closed its doors and demand was made for the money In its answer, the defendant comclaimed its liability not the face value the bond, due the fact that the time the bank was closed the county had on deposit unsecured sums of money. Another like suit pending against the Casualty Insurance of New York, the amount of $30,000 This furnished bond in the amount of judge said he would consider their pleas. Howard Stoneberg. of Montague. charged with larceny of spark plugs from the Reliable Tire and Accessories company, entered plea of not guilty. The charge is larceny from store.

10. August 11, 1932 The Muskegon Chronicle Muskegon, MI
Article from The Muskegon Chronicle, August 11, 1932

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BANK DEPOSITORS TO GET DIVIDEND OF $135,754.80 to Be Distributed by Receiver for The Peoples Bank Depositors of the Peoples State which closed Harry Ralph their first ager. issued yesterday Circuit Judge John will be distributed to than 6,000 persons principally Greater Muskegon, Grand Haven and other nearby communities depositors will receive 10 per About owners nicipal less will receive the cent by special order of the check for about from the state who the recipiof funds collected by bank about all with receivers arrive the capable placed state speed the Hackley Union National bank The other after been borrowed from two Muskegon ward Individual checks to the depositors and will Union bank checks Checks of $12 or less may called for at the Peoples total approved claims after will be many offsets adjustments municipal stated of $7.01 $3,576.29 less. Half of accounts will paid this time They will receive until other depositors also have received 50 per cent. Few Claims in Litigation. Less claims are litigation. although only has been paid on preference claims aggregating which were filed soon after the closing. Bank loans. labor claims money held trust constitute collectable which have preference over all claims Commercial claims aggregate and claims comprising the total of At the time of the closing of the many assets were pledged for the amount of which paid addition the and turned over the treasurer, stated by Leon F. Titus, receiver. prevent sacrifice by dumping these the first was of assets on hand to pay off this Although collections have been slow the bank has repaid all borrowed money. all cost administration and foreclosure of mortgages would have been ill-advised he "The dumping bonds other securities on already glutted market also have meant an mense loss the For this reason been the policy the receiver proceed cautiously in der get the greatest possible return from these variable Reopening Plan Unaffected Payment will in no affect plans for in the opinion of the under vival 60 mithe total in the authorized capital conference was in Lansing week with Rudolph Reichert, banking commissioner. Mr Reichert little encouragement five Muskegon and Grand Haven sharewhat they should prepare. This work now being under direction George W. Olson, of the Olson Music report of the general which have this week, has been postponed. Members the committee consulted an attorney.

11. January 31, 1934 The Grand Rapids Press Grand Rapids, MI
Article from The Grand Rapids Press, January 31, 1934

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HIGH COURT FAVORS MUSKEGON COUNTY Rules Bank Receiver Cannot Give Preference to Commercial Depositors. Muskegon, Jan. ruling by Circuit Judge John Vanderwerp that the receiver for Peoples State Bank for Savings may not withhold dividends on impounded deposits of the county of Muskegon in favor of commercial depositors has been upheld by the state court The opens the way for re. lease of approximately $42 000 in dividends the 20 per cent of its 000 deposits. When the bank closed its doors deposits of the county were protected part by government bonds and other securities posted by the bank as guaranties The county realized through the sale of these The bank's receiver however ruled that because of the realiza tion of this money the county was not entitled to share in dividends had collected similar proportion of their deposits through liquidation of the bank's frozen assets. Two 10 per cent dividends were released to other commercial depositors, but none to the officials W ednesday Interpreted he court ruling as meaning that two 10 per cent dividends now must be released to the county before commercial depositors receive payments. although savings depositors are not affected Flint, Jan. 31 new National Bank Flint opened its doors for the first time Wednesday the Union Trust & Savings bank The new bank of The RFC pledged $500,in preferred The balance. common stock. was taken Flint depositors in the former Union Industrial bank the First National Bank Trust Co.

12. March 29, 1934 The Muskegon Chronicle Muskegon, MI
Article from The Muskegon Chronicle, March 29, 1934

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TWO PEOPLES BANK ACCOUNTS ARE SETTLED Settlement of two accounts of the Peoples State bank for receivable the other al. lowed yesterday by Judge John Vanderwerb on petition of Leon F. Titus the bank receiver The bank an assignment due the Golf club the in settlement the club's under isory note amounting to In settlement of claim of $12.which Thomas Mahan against the bank. the under court turned over to 10 bonds. of value of each Five of these bonds first securities sued by the Chicago. Milwaukee and Paul railroad. maturing in The others were issued by the Chicago Northwestern railroad. for and mature in 1987 mave market $63 $65 each. In Mr. Mahan agrees $500 as of the proposed settlement. The entire consideration is equivalent to $6,500 in cash. Mr. Titus

13. December 15, 1934 The Muskegon Chronicle Muskegon, MI
Article from The Muskegon Chronicle, December 15, 1934

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LARGE DEPOSITORS ASKED TO BUY UP SMALL ACCOUNTS Peoples Bank Receiver Has Plan to Pay Off About 2,000 Claims One hundred of larger deposihave Claus about dividend before announced today by Leon Under recently used in Dechase pledging 50 per cent per dividend to three Archie McCrea Lingelwould smaller depositors for their against the closed origWould Own the for further payments the should this but have immediate full paylarge number including children and adults in need few dollars this cents the lose and per cent of the face full. the pledges aggregate about $130.000 must be obtained before the subscription become effective the per About 100 of original counts thousands been operate this spirited" per cent the savings had about would the would possible to make Christmas more happy for the 2,000 smaller 1,300 Get 52 About already cent claims. They would not enthe coming plan is adopted up to Another 700. who had ranging to $12 ready received 30 per cent and would per cent Together, have and receive for total about if the plan number persons already have returned signed copies the agreethem Mr. Titus Many others telephoned are the proposal. Others have notified receiver they glad participate. Mr. houing for sufficient response Dec. to the set as the possible approval. enough the larger depositors not responded the call by Dec. the plan will be dropped.