Elmwood Park State Bank (Elmwood Park, IL)

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MERGER

Is Effected In Chicago.

First National Now In $900. 000.000 Class Of Banks.

Outlying Depositories Are Closed In Face Of Rapid Withdrawals -To Pay In Full

Chicago June Normal banking conditons prevailed today in downtown Chicago after the largest bank consolidation ever effected in the United States outside of New York. Actual absorption of the two Fore man state banks by the First National Bank was completed during the day and the Foreman banks had passed from after a history which began in 1862 Anxiety and nervousness among the Foreman depositors had largely disappeared as provisions were made at the First National to care for their accounts The other merger. that between the Central Trust and the National Bank of the Republic, probably will not be completed for some weeks. it was said.

Huge Sums Transferred. During the night more than $240,000,000 in gold, silver, currency and bonds was transferred from the vaults of the Foreman banks to those of the First National A battalion of 1,000 policemen lined the sidewalks as the precious loads passed down the street in a fleet of armored cars bristling with guns. These were augmented by the full force of bank police of both institutions and by the guards of the express companies handing the transfer

The merger brings another powerful banking amalgamation into Chicago, the First National group now having resources of approximately $900,000,000, bringing it within striking distance of the billion-dollar Continental Illinois Bank & Trust Co. Still another merger was an nounced today between the outlying Liberty Trust & Savings Bank. a First National affiliate and the State Savings Bank & Trust Co., in which the Foremans were interested Approximately $14,000,000 is represented in the consolidation.

Thirteen Banks Closed Chicago, June (AP) Thirteen Chicago neighborhood banks closed today. bringing the total in two days 19. Leaders in the Chicago Clearing House held a series of conferences to discuss the situation. but finally agreed there vas nothing they could do. Twelve of the banks closed today were in chain controlled by John Bain, South Side Republican leader. He said the closings were voted "to the interests of depositors and These banks had total deposits of $13,000,000 The thirteenth bank the Elmwood Park State, was closed by the State Auditor Three neighborhood banks affiliated with the Foreman-State Na tional, which merged with the First National. closed yesterday, awaiting a determination of their position. closed to prevent Today $2,300,000 in deposits of the State Savings Bank and Trust Company, formerly Foreman affiliate were assumed and guaranteed by the Liberty Trust and Savings, one of the neighborho group in which the First National is interested. In a statement Bain said the clos ing of his chain was due "to the in ability of the banks to readily dis of their assets without undue losses, due to prevailing conditions, it is expected that the depositors and stockholders will be paid in

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Chicago Banks Move to Conserve Assets

Continued From Page 17 banks closed their doors yesterday, awaiting determination of their position as a result of the merger. Three others were closed to prevent runs, making of eighteen outlying institutions locked up in days.

Banks May Be Absorbed Bankers said the chances were favorable the or absorption later of most, if not all, of these banks. John Bain. Jr. said the closings were the result of "the general pub"Runs developed on several of the banks of the chain, Bain said. "These were the result of the closing of the Washington Park and South Side Trust. of which were affiliates of the Foreman-State group. As such situation in one chain might affect others, we found it desirable to close Auditor ordered the doors closed on the Elmwood Park State Bank. a suburban institution with deposits of slightly more than million dollars, pending an investigation.

Article Text

MERGER

Is Effected In Chicago.

First National Now In $900, 000.000 Class Of Banks.

Outlying Depositories Are Closed In Face Of Rapid Withdrawals -To Pay In Full

Chicago, June 9- (US) -Normal banking conditons prevailed today in downtown Chicago after the largest bank consolidation ever effected in the United States outside of New York. Actual absorption of the two Foreman state banks by the First Na. tional Bank was completed during the day and the Foreman banks had passed from existence after history which began in 1862. Anxiety and nervousness among the Foreman depositors had largely lisappeared as provisions were made at the First National to care for their accounts The other merger, that between the Central Trust and the National Bank of the Republic, probably will not be completed for some weeks, it was said.

Huge Sums Transferred During the night more than $240,000,000 in gold, silver, currency and bonds was transferred from the vaults of the Foreman banks to those of the First National A battalion of 1,000 policemen lined the sidewalks as the precious loads passed down the street in fleet of armored cars bristling with guns. These were augmented by the full force of bank police of both institutions and by the guards of the express companies handing the transfer.

The merger brings another powerful banking amalgamation into Chicago, the First National group now having resources of approximately $900,000,000, bringing it within striking distance of the billion-dollar Continental Illinois Bank & Trust Co. Still another merger was announced today between the outlying Liberty Trust & Savings Bank, a First National affiliate, and the State Savings Bank & Trust Co., in which the Foremans were interested. Approximately $14,000,000 is represented in the consolidation.

Thirteen Banks Closed Chicago, June 9-(AP)-Thirteen Chicago neighborhood banks closed today, bringing the total in two days to 19. Leaders in the Chicago Clearing House Association held series of conferences to discuss the situation, but finally agreed informally there was nothing they could do. Twelve of the banks closed today were in chain controlled by John Bain, South Side Republican leader. He said the closings were voted "to conserve the interests of depositors and stockholders." These banks had total deposits of $13,000,000. The thirteenth bank, the Elmwood Park State, was closed by the State Three neighborhood banks affillated with the Foreman-State Na. tional, which merged with the First National, closed yesterday, awaiting determination of their position. Three others, non-affiliated, were closed to prevent runs Today $2,300,000 in deposits of the State Savings Bank and Trust Company, formerly Foreman affiliate, were assumed and guaranteed by the Liberty Trust and Savings, one of the neighborhood group in which the First National is interested. In a statement Bain said the clos. ing of his chain was due "to the in. ability of the banks to readily dispose of their assets without undue losses, due to prevailing conditions, and it is expected that the depositors and stockholders will be paid in full.'