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Chicago Bank in Receiver's Hands. Chicago, Feb. 15.-The Bank of America, incorporated last December with a capital stock of $250,000, to-night was placed in the hands of a receiver by Judge Chytraus.
Bank of America (Chicago, IL)
Episode Information
- Episode UID
1832043591274- Episode Type
- Run → Suspension → Closure
- Bank Type
- state
- Bank ID
-
183204359hash - Start Date
- February 14, 1906
- Location
- Chicago, Illinois (41.850, -87.650)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
309772205c5483be
Response Measures
None
Events (4)
1.
February 14, 1906
Run
- Cause
- Bank Specific Adverse Info
- Cause Details
- Depositors alarmed by revelations/charges of fraud, misapplication of funds and large loans to insiders (Creelman, Smith), prompting withdrawals
- Measures
- Court petition filed and receiver appointed that night to prevent further panic
- Newspaper Excerpt
- On February 14, 1906, a run was made on the bank
- Source
- newspapers
2.
February 15, 1906
Receivership
- Newspaper Excerpt
- Daniel J. Healy, a stockholder, receiver. Bonds of $150,000 were furnished and Mr. Healy took charge of the bank.
- Source
- newspapers
3.
February 15, 1906
Suspension
- Cause
- Government Action
- Cause Details
- Court-appointed receivership on complaint of a stockholder after alleged fraud/mismanagement
- Newspaper Excerpt
- was placed in the hands of a receiver at 10 o'clock tonight by Judge Chytraus
- Source
- newspapers
4.
March 24, 1906
Other
- Newspaper Excerpt
- receiver ... announced ... ready to pay a further 30 per cent dividend on account of deposits in the defunct bank, making a total payment of 70 per cent.
- Source
- newspapers
Newspaper Articles (24)
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BANK OF AMERICA CLOSED Court Appoints Receiver for New Chicago Financial Institution. SERIOUS CHARGES AGAINST OFFICIALS President and Directors Accused of Withdrawing Capital Stock and Making Large Loans to Themselves CHICAGO, Feb. 15.--The Bank of AmerIca, incorporated last December with a capital stock of $250,000. was placed in the hands of a receiver at 10 o'clock tonight by Judge Chytraus of the superior court on complaint of John E. Kavanaugh, one of the stockholders. The bill asking for the receivership holds former Judge Abner Smith, president, and three other officials of the bank responsible for the insolvency of the institution. In the few weeks since the opening of the bank President Smith is charged with having so manipulated securities, mortgages and notes and the stock of the bank that he has obtained amounts aggregating $146,000. The other three officials who, in connection with President Smith, are held responsible for the alleged Insolvency of the bank are G. F. Sorrow, vice president: Jerome V. Pierce, cashier. and F. E. Creelman, a stockholder and director. It is charged against these officials, together with President Smith, that they had absolute control of the bank and its funds. Officials Borrow Money. The operations of President Smith and the other officials mentioned in the bill are said to have been begun before the bank opened for business. Smith is said to then have borrowed money and placed it in the treasury to deceive the state into believing that the stock had been paid up. President Smith was one of the prime movers in the formation of the bank, having subscribed for $70,000 of the stock. In order to prevent, if possible, a panic and a possible run on the bank. it was decided to file the bill for the appointment of a receiver late tonight. Judge Chytraus and the clerk of the superior court had been asked to be in their offices and agreed to do so. Shortly before 10 o'clock attorneys representing Mr. Kavanaugh appeared with the petitions for a receiver. Notice had been served previously on President Smith, but he did not appear either in person or by attorney. After reading the bill, the court entered an order appointing Daniel J. Healy, a stockholder, receiver. Bonds of $150,000 were furnished and Mr. Healy took charge of the bank. a Capital Stock Withdrawn. Among the specific charges made against President Smith are: I That before the bank was certified by I the state auditor, President Smith borrowed money and paid it into the bank 1 to cause the requisite amount of stock subscribed for by them to appear as paid on the books so that the full amount of money represented by the capital stock was on deposit. That immediately after the examination by the auditor and after the bank had commenced to do business Snutn and others depleted the stock by withdrawing the money they had deposited in pay ing for stock subscribed by them. That President Smith borrowed $70,000 from the bank. giving in return notes signed by his wife and brother-in-law. which are declared to be of little value. That within a few weeks after the bank opened for business Smith secured $62,500 from the bank for himself. giving in return mortgages on real estate which are said to be t inadequate security, It is also alleged that President Smith entered into a contract with F. E. Creelman, a stockholder. by which the latter was to subscribe to 250 shares of the stock and was to be permitted to withdraw $150. 000 from the bank at any time he wished. This, it is stated in the bill, was done and Creelman has withdrawn nearly $200,000, giving in exchange drafts on other corporations. he was interested in. Many of these drafts, it is asserted. were sent back e unpaid, until Creelman owed the bank $80,000. President Smith. against which the serious charges are made, was a member of the Cook county bench for many years, t having retired from the court in 1904. e Mr. Creelman, who is charged with unI loading a large amount of paper of questionable value on the institution, is a Chicago lumber merchant, Three Hundred Thousand Deposits. t The bank had about $300,000 in deposits, ) of which $25,000 was in savings accounts of a working people. Attorney Clarence Darrow, who is a ) stockholder, paid up to the extent of $11,000 ; personally has coine to the rescue of the savings depositors. 'All savings depositors 1 will be paid in full.' said Attorney Darrow. i "I will buy their books as they are presented at the bank. The bank will be opened in the morning under charge of Receiver Healy
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BANK OF AMERICA. Depositors Are Assured They will Recelve Every Cent of Their Money. Chicago, Feb. 16.-A crowd of depositors gathered around the door of the Bank of America as early as 7 o'clock today In the hope of securing their money. Among the number were many drug clerks, the bank having worked extensively through the drug stores in all parts of the city. In many drug stores notices had been posted informing the public that deposits would be received at the drug store for the bank. and offers of interest in the institution were held out to the clerks as inducement to secure large deposits. The first official of the bank to put in an appearance was S. H. Howe, the assistant cashier. He opened the door and to a crowd of depositors said in substance: "Within a week you will receive 85 to 40 per cent of your money, and the balance within a few days after that. All depositors will be paid in full. We have $100,000 in cash on hand, and some securities that will be disposed of within a week. There is not the slightest fear that any of the depositors will lose any of their money." Later in the day Receiver Healy issued a notice saying that savings accounts would be paid on Monday and that Commercial depositors will receive 40 per cent of their money within a few days and the balance in a short time thereafter. The receiver declared, after looking over the books today, that while the depositors will be paid in full, the stock holders will lose every cent they have put into the bank.
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CHICAGO BANK Closes But Savings Will Be Paid Off Monday. Chicago, Ill., Feb. 16.-Action by county officials may follow the exposure alleged in the bill for a receivership which caused the bank of America, of which Former Judge Abner Smith was president, to remain closed when the hour for opening came today. The state bank examiner worked all night on the books and charges against the bank are unusual banking methods. It has $300,000 deposits. Receiver Healy today posted this notice: "Arrangements have been made to pay or take care of savings accounts of this bank rext Monday morning."
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DEPOSITORS WILL NOT LOSE. Promise Made by Receiver of Defunct Chicago Bank. Chicago, Feb. 17.-A crowd of depositors gathered around the door of the Bank of America. for which a receiver has been appointed, as early as 7 a. m. in the hope of securing their money. Among the number were many drug clerks, the bank having worked extensively through the drug stores in all parts of the city. The first official of the bank to put in an appearance was R. H. Howe, the assistant cashier. He opened the doors and a crowd of depositors swarmed after him. Mr. Howe made a speech to the depositors, saying in substance: "Within a week you will receive 35 to 4@ per cent of your money and the balance within a few days after that All depositors will be paid in full. We have $100,000 in cash on hand and some securities that will be disposed of within a week. There is not the slightest fear that any of the depositors will lose any of their money." Receiver Healy, who appeared at the bank a short time after Mr. Howe had addressed the depositors, confirmed the statements made by him. "I have no doubt," he said, "that all the depositors will be paid in full. We are making arrangements to care for the savings accounts at once, but the commercial depositors will be compelled to wait for a few days until we know just where matters stand." The receiver declared, after looking over the books, that while the depositors will be paid in full the stockholders will lose every cent they have put into the bank.
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BANK OFFICIAL SAYS THERE IS NO FEAR THAT ANY WILL LOSE THEIR MONEY BANK OF AMERICA FAILS Chicago Institution Goes Into the Hands of a Receiver-Was Organ. Ized Last December-Bad Loans, Mismanagement and Many Other Ir regularities Aro Charged. / Chicago, III., Feb. 16. - A crowd of depositors was gathered around the door of the Bank of America as early as 7 o'clock this morning in the hope of securing their money. The first official of the bank to put in his appearance was Assistant Cashier Howe, who made a speech to the depositors saying in substance: "Within a week you will receive from 35 to 40 per cent of your money and the balance within a few days after that. All depositors will be paid in full. There is not the slightest fear that any of the depositors will lose their money." Howe said the cause of the failure was injudicious loans. Opened December 4. The Bank of America, which opened its doors December 4 and had deposits of $300,000 was placed in the hands of a receiver at 9:30 o'clock last night. The order permitting this action was issued by Judge Chytraus on an application by John E. Kavanagh, one of the stockholders, who charged fraud and misapplication of the funds by President Abner Smith, and followed an investigation which had been conducted by Attorney Darrow of the firm of Darrow, Masters & Wilson, begun two weeks ago. The petition for a receiver is based upon charges that from the organization the officers hired more clerks and employes than were necessary, failed to pay for the stock issued by themselves, but borrowed money from the bank with which to pay for the stock; that they filled the bank with worthless notes obtained upon worthless security; that they allowed themselves very large salaries which they secured to themselves through their own ma chinations.
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NEW LO UP IN RAG TIME Former Judge Charged With Breaking All Records in Wrecking Bank. RECEIVER APPOINTED AT NIGHT TO PREVENT A RUN President of Chicago Institution Charged With "Obtaining" $146,000 in Few Weeks. CHICAGO, Feb. 16.-The Bank of America, incorporated last December, with a capital stock of $250,000. was placed in the hands of a receiver at 10 o'clock last night by Judge Chytraus of the Superior court on complaint of John E. Kavanaugh, one of the stockholders The bill asking for the receivership holds former Judge Abner Smith. president and three officers of the bank responsible for the insolvency of the Institution In the few weeks since the opening of the bank President Smith 18 charged with having so manipulated securities, mortgages and notes and the stock of the bank that he has obtained amounts aggregating $146,000. The other three of ficers, who in connection with President Smith, are held responsible for the alleged insolvency are G. F. Sorrow, vicepresident; Jerome Pierce, cashier, and F. E Creelman a stockholder and director It is charged against these officials, together with President Smith, that they had absoluté control of the bank and its funds. Began Work Early The operations of President Smith and the officiale mentioned in the bill are said to have been begun before the bank opened for business. Judge Smith is said then to have borrowed money and placed it In the treasury to deceive the State Auditor into believing that the stock had been paid up. President Smith was one of the prime movers in the formation of the bank, having subscribed for $70,000 of the stock In order to prevent, if possible, a panic and a possible run on the bank. it was decided to file the bill for a receiver late tonight Judge Chytraus and the clerk of the Superior court had been asked to be in their office and agreed to do so. Shortly before 10 o'clock attorneys representing Mr. Kavanaugh appeared with the petition for a receiver Notice had been served previously on President Smith, but he did not appear either in person or by attorney After reading the bill the court entered an order appointing Daniel J. Healy, a stockholder, receiver Bonds of $150,000 were furnished and Mr. Healy took charge of the bank Deception From the Start. Among the specific charges made against President Smith are: That before the bank was certified by the State Auditor President Smith borrowed money and paid It Into the bank to cause the requisite amount of stock subscribed for by them to appear as paid on the books so that the full amount of money represented by the capital stock was on deposit That immediately after the examination by the Auditor and after the bank had commenced to do business Smith and others depleted the stock by withdrawing the money they had deposited in payment for the stock subscribed by them That President Smith borrowed $70,000 from the bank. giving in return notes signed by his wife and brother-in-law which are declared to be of little value. That within a few weeks after the bank opened for business Smith secured $62,500 from the bank for himself. giving in return mortgages on real estate which are said to be Inadequate as security It is also alleged that President Smith entered into a contract with F. E. Creel man, a stockholder. by which the latter was to subscribe to 250 shares of the stock and was to be permitted to withdraw $150,000 from the bank at any time he wished. This, it is stated in the bill. was done and Creelman has withdrawn nearly $200,000. giving in exchange drafts on other corporations in which he was interested Many of these drafts, it le asserted, were sent back unpaid until Creelman owed the bank $80,000 President Smith, against whom the serious charges are made, was a member of the Cook county bench for many years. having retired from the court in 1904. Mr. Creelman, who is charged with unloading a large amount of paper of quesa tionable value on the institution is Chicago lumber merchant The bank had about $300,000 in deposits of which $25,000 was in savings accounts of working people Attorney Clarence Darrow who is a stockholder. paid up to the extent of $11. 000. personally has come to the rescue of the savinge depositors. 'All savings depositors will be paid in full, said Attorney Darrow "I will buy their books as they are presented at the bank The bank will be opened in the morning in charge of Receiver Healy.
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BANK RUN AND LOSS ESTATE YERKES' IN STOCK OF TRACTION KING Chicago, Feb. 20.-A run was startHAS SHRUNK ENORMOUSLY. ed on the Jackson Trust & Savings Chicago, Feb. 20.-The Chronicle bank today, it being thought by many says today that startling reports have reached the ears of Chicago finandepositors that the institution is inciers that the reputed $15,000,000 essolvent by reason of the failure of tate of the late Charles T. Yerkes is the Bank of America three days ago. fictitious. That it will not aggregate It is known that the institution 18 more than $6,000,000, is reported as credited by Chicago bankers who have loser through loans to F. C. Creeman, had occasion to make investigation. whose loans from the Bank of AmerSince his death much of the supica were the immediate cause of the posed value of his traction stocks in closing of that concern. The Jackson Chicago and London are declared to have dwindled enormously, This sitTrust & Savings bank, according to a uation has placed in jeopardy the girecent report of its liabilities, held gantic New York hospital project, savings deposits to the amount of which the late traction king provided $160,000 and commercial deposits to for in his will, as a monument to his the amount of $750,000. memory.
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FEAR ANOTHER BANK INVOLVED Rush Made Today by Depositors Jackson Savings & Trust Co. Chicago, Feb. 20.-There is fear that the Jackson Trust & Savings Bank is involved in the failure of the Bank of America, caused by a run on the former institution today. The bank officials, however, say they will meet all demands.
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STORIES START BANK RUN Second Chicago Financial Institution Pays Depositors Rapidly and Bankers Are Not Alarmed By Associated Press. CHICAGO, Feb. 20.-A run was started on the Jackson Trust and Savings bank, it being thought by many of the depositors that the institution is involved by the failure of the Bank of Bankers America three days ago. say the run will be withstood. At the hour set for the opening 300 depositors commenced to withdraw their funds. It is known that the institution is a loser through loans to F. C. Creelman, whose loans from the Bank of America were the immediate cause of the closing of that concern. The amount loaned to Creelman by the Jackson Trust and Savings bank is said by officers to be $25,000, but stories on the streets by which the depositors were alarmed put the amount at several times $25,000. The savings bank department remained open until 5 o'clock in order to pay off depositors.
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Will Pay Depositors in Full. Developments in the Bank of America failure in Chicago indicate that depositors will be paid in full and disclose serious defects in the conduct of the institution. Receiver has been appointed for the F. E. Creelman Lumber and Manufacturing Company, the head of which is the largest borrower of the failed bank.
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QUICK BANK WRECK Organized in December and Now in Hands of Reciver. PRESIDENT UNDER BAN Allegation That Officials of the Institution Have Done as They Pleased with the Funds - Depositors May Be Saved. The Bank of America, incorporated in Chicago last December, with a capital stock of $250,000, Thursday night, was placed in the hands of a receiver on complaint of John E. Kavanaugh, a stockholder. The bill asking for the receivership holds former Judge Abner Smith, president and three other officers of the bank responsible for the alleged insolvency of the institution. In the few weeks since the opening of the bank, President Smith is charged with having so manipulated securities, mortgages and notes and stock of the bank that he has obtained amounts aggregating $146,000. The other three officers, who, in connection with President Smith are held responsible for the alleged insolvency of the bank are: G. F. Sorrow, vice president; Jerome V. Pierce, cashier, and F. E. Greelman, a stockholder and director. It is charged against these officials, together with President Smith, that they have done as they pleased with the funds of the bank, have voted themselves such salaries as they desired, and have lent the money of the incorporation on such securities as they saw fit. The bank had about $300,000 in deposits, of which $25,000 was in savings accounts of working people. The representatives of the bank declare there is 40 per cent of the cash on band and a large amount of paper, the value of which is unknown. On this paper depends the chance of the bank liquidating in full. Attorney Clarence Darrow, who is a stockholder, paid up to the extent of $11,000, personally has come to the rescue of the saving depositors. "All savings depositors will be paid in full," said Attorney Darrow. "I will buy their checks as they are presented at the bank. The bank will be opened in the morning under charge of Receiver Healey." Mr. Greelman, who is charged with unloading a large amount of paper on the institution, is a Chicago lumber merchant, and is said to have large lumber interests in Nashville, Tenn.
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PUT INTO THE HANDS or A RECEIVER. POSTAL SLEUTHS ON CASE Their Investigation of Co-operative Store Leads to Application for Action by Courts. CHICAGO, III., Feb. 27.-Federal Judge S. H. Bethea has appointed Edwin C. Day receiver for the Cash Buyers' Union First National Co-operative society. The concern is a mammoth mail order house of $5,000,000 capital stock, supposed to be modeled after the Manchester Co-operative society of England. It has stockholders among farmers and laboring people throughout the country. It occupies an eight-story building at Jackson boulevard and Green street. Postal Officials on Trail. The action was taken on the petition of three creditors who acted at the direct instigation of the postal authorities, who have been conducting an investigation of the company during the last six months. Criminal prosecution depends upon the examination of the books, which will be taken up under the receivership. The postoffice inspectors say that $1. 027.000 worth of common stock has been sold. Julius Kahn, formerly with Sears, Roebuck & Co., is president. Admitted liabilities are close to $300,000, and it is estimated that the merchandise on hand it not worth more than $150,000. The open bank account of the society is $60. Seek to Block Receivership. Following this action a move to block the receivership and all court proceedings was taken at a meeting of representatives of twenty-two creditors held in the office of the society. This meeting was called for the purpose of ascertaining the condition of the society. The claims of the creditors represented were $75,000. A circular was issued in an effort to settle the affair without going to court. The petition in bankruptcy was presented by Attorney Edward Everett. representing the Wachusett Shirt company, Kirsheimer Bros.. and the United Shirt and Collar company, whose claims ag gregate $700. Defendant Asks Delay. The co-operative society was represented by Attorney Jacob Newman. He declared that the assets of the firm are close to $500,000, while the liabilities are not more than $300,000. He objeeted to the receivership on the ground that it would take but a few days to get the situation in hand. "I have received information from the postoffice authorities which leads me to believe that it will be unwise for me to wait longer." said Judge Bethea. "There is ground for suspicion from the mere fact that the postoffice men are investigating." Mr. Day was appointed in bonds of $150,000. Stock amounting to $1,027,000 sold through the mails. The stockholders paid $10 a share. They were told that a 10 per cent. dividend would be paid each year and that stockholders would receive 5 per cent. discount on all purchases made and a 5 per cent. commission on all sales made to customers. Discoveries of Inspectors. The inspectors discovered that of the $1,027,000 received from the sale of stock. $1,000,000 from sales of goods during the last year, and thousands of dollars received in other ways, all that the society now holds is placed at a high valuation by the postoffice man at $300.000. The receipts of the company during January and February are placed at $260,000. Many orders have not been filled, and many employes have not been paid. The rental of the building is $35,000 a year, and there are 150 employes. Bank Officials to Be Prosecuted. As the result of investigation it has been found that F. E. Creelman of the defunet Bank of America "kited" a $40.000 check to make it appear to the bank examiners that $250,000 had been paid in cash for bank stock. Revelations made yesterday, which exceed in importance and unsavory features anything hitherto disclosed. are believed to furnish ample basis for the criminal prosecution of the bank's officials Settle Boston Bank Failure. DENVER Colo., Feb. 27. - Representatives of the defunct Provident Savings bank of Boston and the Shenandoah Irrigation and Land company of Colorado have agreed to a basis of settlement of the claims of the bank against the Irrigating company. The agreement provides that D. II. C. Willoughby shall pay the receivers of the Provident Sayings bank $17,000 in cash and will receive the 142.000 shares of Shenandoah stock and all not 9 and bonds of the company now held as assets of the bank.
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PAYING BANK DEPOSITORS. Chicago, March 24.-D. D. Healy. receiver for the Bank of America. announced today that he was ready to pay a further 30 per cent dividend on account of deposits in the defunct bank. making a total payment of 70 per cent.
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BANK OF AMERICA DIVIDEND Chicago, March 24.-D. D. Healv. re. ceiver for the Bank of America, announced today that he was ready to pay a further 30 per cent dividend on account of deposits in the defunet bank. making a total payment of 70 per cent.
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Will Pay Further Dividend. Chicago, March 24.-W. D. Healey receiver for the bank of America, has announced that he was ready to pay a further 30 per cent division on account of depositis in the defunct bank, mak ing a total payment of 78 cents.
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WELCOME DIVIDEND. Chicago, March 24.-D. D. Healy, receiver for the Bank of America, announced today that he was ready to pay a further 30 per cent dividend on account of deposits in the defunct bank, making a total payment of 70 per cent.
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Bank of America Dividend. CHICAGO, March 24.-D. D. Healy, receiver for the Bank of America, announced today that he was ready to pay a further 30 per cent dividend on account of deposits in the defunet bank, making a total payment of 70 per cent.
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# LANSDENISELECTED AS TRUSTEE IN BANKRUPTCY OF F. E. CREELMAN LUMBER & MFG. CO. Result of Meeting Held By Creditors In Danville On Tuesday-Many Prominent Attorneys Were Present. Danville, June 26.-A meeting of the creditors of the F. E. Creelman Lumber & Manufacturing Co., was held here today in the federal court for the purpose of examining the bankrupt and other witnesses, to receive reports from Receiver D. S. Lansden of Cairo, and the election of a trustee in bankruptcy which resulted in the selection of D. S. Lansden. This is the company that recently failed for half a million dollars. The assets, it is said, are $200,000. The company owned 40,000 acres of timber and strip land in four southern states. It will be recalled that when the petition was filed in the court here the Bank of America in Chicago closed. Creelman, head of the company, was one of the directors of the bank and a heavy borrower. The principal place of business of the corporation was Cairo, where big wholesale lumber concerns were conducted. Many prominent attorneys were present at the meeting. Among them are W. T. Hart of New Orleans, Clarence E. Darrow of Chicago, H. E. Vaughn of Chicago, W. D. Washburn of Chicago, J. A. Rabb of Evergreen, Ala., David S. Lansden of Cairo.
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Receiver for Manufacturing Plant. Laporte.-Following in the wake of the failure of the Bank of America in Chicago and the Creelman Lumber company failure two months ago, the Planet Manufacturing company of this city, makers of picture frame and room molding, has been forced into the hands of a receiver. Judge Richter, in the Laporte circuit court, appointed Emmet Scott, who will continue operation of the plant, the creditors agreeing thereto. The assets and liabilities are not known.
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# PUSH PICTURE FRAME CONCERN. Laporte Company Embarrassed by Failure of Chicago Bank. Laporte. — A petition asking that the Planett Manufacturing company, of this city, manufacturers of picture frame and room molding, be declared bankrupt has been filed in the federal court here by the American National bank of Pensacola, Fla., the Union Bank & Trust company, Montgomery, Ala., and the First National bank, Evergreen, Ala. Emmet Scott was last week appointed receiver for the company by Judge Richter, of the Laporte circuit court, upon petition of local creditors. Outside creditors were not satisfied and asked the federal court to appoint another receiver. It is estimated that the assets of the company are $175,000; liabilities, $225,000. Failure of the Bank of America, Chicago, and the Creelman Lumber company, are connected with the financial troubles of the Planett company.
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TWO MORE BANK WRECKERS MUST GO TO PRISON EX-JUDGE ABNER SMITH AND GUSTAV F. SORROW, OFFICIALS OF DEFUNCT BANK OF AMERICA TO SERVE. CHICAGO, July 6.-Former Judge Abner Smith, of the circuit court, president of the wrecked Bank of America, and Gustav F. Sorrow, vicepresident of the corporation, must join the ranks of convicted bankers at Joliet penitentiary, besides paying a fine of $1,000 each. The appellate court so ruled in a legal opinion filed today. The convicted wreckers of the Bank of America, sought to escape by carrying their cases before the higher tribunal. The reviewing court announces that there is no reason for setting aside the judgment of the criminal court where the men were convicted of obtaining money and property by false pretenses. It is expected that the attorneys acting for Smith and Sorrow will seek a rehearing and the case will probably be carried to the Illinois supreme court. The Bank of America was opened in December, 1905, by Abner Smith, Gustav Sorrow, Jerome V. Pierce and Frank E. Creelman. On February 14, 1906, a run was made on the bank and the clearing house committee refused to allow it to continue business. Scrutiny of the institution's affairs showed the total liability of the stockholders to be about $175,000, and the value of the assets $45,000. April 27, 1906, Messrs. Smith, Sorrow, Pierce and Creelman were joint. ly indicted on charges of conspiracy to obtain money and other property by false pretenses. The trial that followed occupied five weeks and Smith and Sorrow were found guilty, fined $1,000 and sentenced to imprisonment in the penitentiary. Pierce was found guilty and fined $500, which he subsequently paid. Creelman was found not guilty and Smith and Sorrow sued out a writ of error to the appellate court, following the judgment July 31 that they were guilty.
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TWO MORE BANK WRECKERS MUST GO TO PRISON EX-JUDGE ABNER SMITH AND GUSTAV F. SORROW, OFFICIALS OF DEFUNCT BANK OF AMERICA TO SERVE. CHICAGO, July 6.-Former Judge Abner Smith, of the circuit court, president of the wrecked Bank of America, and Gustav F. Sorrow, vicepresident of the corporation, must join the ranks of convicted bankers at Joliet penitentiary, besides paying a fine of $1,000 each. The appellate court so ruled in a legal opinion filed today. The convicted wreckers of the Bank of America, sought to escape by carrying their cases before the higher tribunal. The reviewing court announces that there is no reason for setting aside the judgment of the criminal court where the men were convicted of obtaining money and property by false pretenses. It is expected that the attorneys acting for Smith and Sorrow will seek a rehearing and the case will probably be carried to the Illinois supreme court. The Bank of America was opened in December, 1905, by Abner Smith, Gustav Sorrow, Jerome V. Pierce and Frank E. Creelman. On February 14, 1906, a run was made on the bank and the clearing house committee refused to allow it to continue business. Scrutiny of the institution's affairs showed the total liability of the stockholders to be about $175,000, and the value of the assets $45,000. April 27, 1906, Messrs. Smith, Sorrow, Pierce and Creelman were jointly indicted on charges of conspiracy to obtain money and other property by false pretenses. The trial that followed occupied five weeks and Smith and Sorrow were found guilty, fined $1,000 and sentenced to imprisonment in the penitentiary. Pierce was found guilty and fined $500, which he subsequently paid. Creelman was found not guilty and Smith and Sorrow sued out a writ of error to the appellate court, following the judgment July 31 that they were guilty.
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EX-JUDGE GOES TO PRISON FORMER CHICAGO JURIST MUST ALSO PAY BIG FINE. Conspiracy to Obtain Cash by False Pretenses Is Charge In Bank of of America Case. Chicago, July 7.-Abner Smith, former judge of the circuit court, and Gustav F. Sorrow must go to the penitentiary and pay a fine of $1,000 each, Justices Holdom, Adams and Brown, sitting in the appellate court, declared in an opinion Monday. The reviewing court finds no reason for setting aside the judgment of the criminal court, in which the men, with Jerome V. Pierce, were tried and found guilty on indictments charging them with conspiracy to obtain money and property by false pretenses, following the failure of the Bank of America. The Bank of America was opened December 4, 1905, by Abner Smith, Gustav F. Sorrow, Jerome V. Pierce and Frank E. Creelman. February 14, 1906, a run was made on the bank and the clearing house committee refused to allow it to continue business. Scrutiny of the institution's affairs showed the total liability of the stockholders to be about $175,000, and the value of the assets $45,500. April 27, 1906, Messrs. Smith, Sorrow, Pierce and Creelman were jointly indicted on charges of conspiracy to obtain money and other property by false pretenses. The trial that followed occupied five weeks, and Smith and Sorrow were found guilty, fined $1,000, and sentenced to imprisonment in the penitentiary. Pierce was found guilty and fined $500, which he subsequently paid. Creelman was found not guilty, and Smith and Sorrow sued out a writ of error to the appellate court following the judgment July 31 that they wore guilty.