Phillips State Bank (Chicago, IL)

Episode Information

Episode UID
2011971590
Episode Type
Run → Suspension → Closure
Bank Type
trust
Bank ID
201197 routing
Routing Number
2-0119
Start Date
June 1, 1932*
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
fcaea05f1b3484e6

Response Measures

None

Description

Closed by the state auditor at board request June 1932; later litigation (Feb 1933) challenged receivers' authority.

Events (3)
1. June 1, 1932* Run
Cause
Local Banks
Cause Details
Heavy withdrawals preceded closing after the bank assumed liabilities of a neighboring failed bank and acquired a trust; runs tied to local bank distress and assumed bad assets.
Newspaper Excerpt
There had been heavy withdrawals in recent weeks.
Source
newspapers
2. June 22, 1932 Suspension
Cause
Government Action
Cause Details
Closed by the state auditor at the request of the board following heavy withdrawals and recent acquisitions of troubled institutions.
Newspaper Excerpt
The Phillip State Bank and Trust company ... was closed by the auditor yesterday at the request of the board of directors.
Source
newspapers
3. February 25, 1933 Other
Newspaper Excerpt
Judge Denis Sullivan ruled ... that all receivers of closed banks in Illinois were holding office in violation of the state constitution ... suit brought by a depositor of the closed Phillips State Bank and Trust Company of Chicago.
Source
newspapers

Newspaper Articles (13)
1. June 22, 1932 Chicago Tribune Chicago, IL

Article Text

PHILLIP STATE BANK IN ROGERS PARK IS CLOSED Two National Banks of Chicago Shut Doors. The Phillip State Bank and Trust company, 7001 North Clark street, was closed by the auditor yesterday at the request of the board of directors. The bank was capitalized at $500,000 and its surplus and un. divided profit account was carried $285,000. Its deposits at the time of closing were $2,100,000. There had been heavy withdrawals in recent weeks. Trust Company Taken Over. The bank on June 2 acquired the Cook County Trust from Moe Rosenberg, side Democrat politician, through the purchase of $200,000 of preferred stock and 10,000 shares of stock. A year in July 1931, the bank assumed the liabilities of the Illinois State bank, which closed owing $385,000. The Illinois State bank was neighboring bank and the assumption of its debts was declared by Phillip bank officials to be contribution to the of Rogers Park." C. A. Beutel was president of the Phillip bank and Barnet L. Rossett was chairman of the board. Two National Banks Closed. Two national banks were closed yes. terday. One was the Peoples Bank and Trust 1542 West 47th street. The board of directors asked A. P. Leyburn, national bank examiner, to close the doors of the bank. It had deposits of $3,007,000, capital of $1,000,000, surplus of $250, 000 and undivided profits of $110,000. The bank had deposits of $12,000,000 in June, 1930. The Standard National bank of Chi. cago, 7921 South Ashland avenue, was closed. This bank had capital of $300,000, surplus of $25,000 and deposits of $300,000.

2. February 25, 1933 Globe-Gazette Mason City, IA

Article Text

All Bank Receivers in Illinois Contrary to Constitution, Ruling CHICAGO Denis Sullivan ruled today that all receivers closed banks linois are holding office in violation of the state constitution and their actions are void The drastic ruling was made in brought by closed Phillips State Bank and Trust company of The charged that pointment for the bank void because the banking for such providing the Illinois The including Oscar Nelson as the state auditor, filed demurrer which Superior Judge overruled and upheld

3. February 25, 1933 Dixon Evening Telegraph Dixon, IL

Article Text

Hold Receivers Of Banks Are Illegal Chicago, Judge Dennis ruled today that closed office violathe constitution and are void The drastic made brought closed Phillips State Bank Trust Company The charged that pointment receiver for the section Bank providing the appointments, of Illinois The defendants including Oscar Nelson then auditor, filed demurer which Superior Judge Sullivan overruled and upheld

4. February 26, 1933 Pittsburgh Sun-Telegraph Pittsburgh, PA

Article Text

Judge Voids Acts Of Bank Receivers Judge Denis E. Sullivan ruled today that all receivers of closed banks in Illinois were holding office in violation of the State Constitution and their actions were void. The drastic ruling was made in suit brought by depositor of the closed Phillips State Bank and Trust Company of Chicago.

5. February 26, 1933 St. Louis Globe-Democrat St. Louis, MO

Article Text

ACTIONS OF ILLINOIS BANK RECEIVERS VOID Court Rules They Hold Offices in Violation of Constitution. By Associated Press. CHICAGO, ILL, February Judge Denis today that receivers closed Illinois fice in the state stitution and their actions were The drastic ruling was made brought by of the closed Phillips State Bank and Trust Company of Chicago. The depositor charged appointreceiver for the bank void because the banking providing for apthe fundalaw of Illinois. Oscar State pointment made, filed

6. February 26, 1933 The Portsmouth Times Portsmouth, OH

Article Text

Judge Rules Bank Receivers Illegal CHICAGO. Feb. 23-Judge Denis H. Sullivan ruled today that nil receivers of closed hanks In Illinois were holding office In violation of the state constitution and tbeir actions were void. The drastle ruling was made In suit brought by depositor of be closed Phillips State Bank and Trust Co., of Chicago. The depositor charged that appointment of receiver for the bank void because section 11 of the banking Act, providing for such appointments. contravenes the TWO ESC IN CRASH Although their automobile was de the

7. February 26, 1933 The Lincoln Star Lincoln, NE

Article Text

CHICAGO. (AP). Judge Denis E. Sullivan ruled that all receivers of closed banks in Illinois are holding office in violation of the state constitution and their actions are void. The drastic ruling was made in a suit brought by a depositor of the closed Phillips State bank and Trust company of Chicago. The banking act, Judge Sullivan held, improperly delegates to the state auditor discretionary legislative power in fixing the receiver's bond. Only the legislature itself, the court said, can constitutionally fix terms of bond.

8. February 26, 1933 Fort Worth Star-Telegram Fort Worth, TX

Article Text

CLOSED BANK RECEIVERS HELD ILLEGAL IN ILLINOIS CHICAGO, Feb. 25.—Judge Denis E. Sullivan ruled today that all receivers of closed banks in Illinois were holding office in violation of the state constitution and their actions were void. The drastic ruling was made in a suit brought by a depositor of the closed Phillips State Bank and Trust Company of Chicago. The depositor charged that appointment of a receiver for the bank was void because section 11 of the banking act, providing for such appointments, contravenes the fundamental law of Illinois.

9. February 26, 1933 Brooklyn Eagle Brooklyn, NY

Article Text

uling Ousts All Bank Receivers Feb. 25 (4P)-Judge DenBullivan ruled today that all of closed banks in Illinois holding office in violation of constitution and ther acvoid. The Attorney Genindicated the decision would be drastic ruling was made in a brought by a depositor of the Phillips State Bank and Trust of Chicago. banking act, Judge Sullivan improperly delegated to the auditor discretionary legislain fixing the receiver's Only the Legislature itself, said, could constitutionally of bond.

10. February 27, 1933 Reno Gazette-Journal Reno, NV

Article Text

Sullivan ruled Saturday that all receivers of closed banks in Illinois holding office of the state constitution and their actions The drastic ruling was made in brought by depositor of the closed Phillips State Bank Trust Company of Chicago. The depositor charged that appointment of receiver the bank was void section 11 of the act, providing for such appointments, contravenes the fundamental Illinois. The defendants, including Oscar Nelson then state auditor, filed demurrer which Superior Judge overruled and upheld the plainant.

11. February 27, 1933 Freeport Journal-Standard Freeport, IL

Article Text

WILL TAKE APPEAL FROM JUDGE SULLIVAN'S DRASTIC BANK RULING General Otto announced day he will appeal direct to the preme court Illinois the ruling Superior Judge Denis Sullivan Saturday that bank receivers pointed by the state auditor are holding office illegally. The ruling made in complaint brought depositor in closed Phillips State bank of Chicago. plan to test this ruling in the high Kerner said, "because Judge Sullivan held the section the banking unconstitutional. That section dealing with the pointment of receivers was declared unconstitutional because delegated to the state auditor certain that only the legislature can hold.

12. February 27, 1933 Anderson Daily Bulletin Anderson, IN

Article Text

Actions Of Illinois Bank Are Ruled Void In Case Chicago, Denis Sullivan ruled Saturday that all receivers closed banks in Illinois were holding office in viola tion of the state constitution and their actions The drastic ruling was made in suit brought depositor of closed Phillips State Bank and Trust Company of

13. February 28, 1933 Dixon Evening Telegraph Dixon, IL

Article Text

Bank Receivers Will Keep Posts Chicago, Feb. 27-(AP) -Attorney General Otto Kerner announced today he will appeal direct to the Supreme Court Illinois the ruling of Superior Judge Denis E. Sullivan Saturday that all bank receivers appointed by the State Auditor are holding office illegally The ruling was made in a complaint brought by depositor in the closed Phillips State Bank of Chicago We plan to test this ruling in the high court Kerner said, because Judge Sullivan held the section of the Banking Act unconstiThat section dealing with the appointment of receivers was declared unconstitutional because it delegated to the State Auditor certain powers that only the legislature or judiciary can hold