Hegewisch State Bank (Chicago, IL)

Episode Information

Episode UID
2020771582
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
202077 routing
Routing Number
2-0207
Start Date
October 2, 1931
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
8a5a7864412a6fe5

Response Measures

None

Events (3)
1. October 2, 1931 Suspension
Cause
Rumor Or Misinformation
Cause Details
Unreasoning fear among depositors and abnormal withdrawals prompted closures; bank was taken over by State Auditor.
Newspaper Excerpt
outlying Chicago banks closed their doors today... the Hegewisch State
Source
newspapers
2. June 22, 1934 Receivership
Newspaper Excerpt
State Auditor Edward Barrett has named William L. O'Connell as receiver for the Hegewisch State bank, to take the place of Morgan L. Fitch.
Source
newspapers
3. March 29, 1935 Other
Newspaper Excerpt
the Hegewisch State bank depositors will receive 7½ per cent.
Source
newspapers

Newspaper Articles (6)
1. October 2, 1931 St. Louis Post-Dispatch St. Louis, MO

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 3, 1931 St. Louis Post-Dispatch St. Louis, MO

Article Text

BANKS DEMAND WEEKS' Clearing House Association Calls on All Depositories to Enforce Rule About Withdrawals. ATTEMPT TO CURB PRIVATE HOARDING Eight Financial Houses Close in Northern Illinois and One in Vandalia, Associated Oct. Philadelphia Clearing House ciation today adopted resolution calling on all banks to enforce the rule requiring two weeks' notice for the withdrawal of time and savings deposits. All the mutual banks in the city have concurred in action. Joseph Wayne president of the Clearing House, stated that closing of some small outlying institutions has resulted in an unreasoning fear among depositors which causing abnormal withdrawals of deposits largely for the purpose hoarding The action of the Clearing House follows of three small trust companies yesterday, and the closing of trust suburb. The Fidelity Co., today appointed Weniger one of the oldest private banking firms in the state. after three creditors filed involuntary tition of bankruptcy in Federal Court. The firm has about depositors. Ewing counsel for creditors, said no statement of liabilities and would not available until after audit of the books. The Richmond Trust bank this deposits of more than today and placed in the hands of the State Banking partment. Four Banks in Chicago Suburbs Close Doors. By the Associated Oct. banks three sections of nois closed their doors yesterday cash and reserves depleted in most cases by swollen withdrawals. In instances. announced closing was for protection depositors who bly would receive cents on the dollar. Two failures in La Salle County brought the total of banks shut since Tuesday in that region to six. The Utica State Bank suspended operations and left its without depository Later in the day the La Salle ings Bank Trust Co. also closed. Four Cook County banks, one National Bank. closed They the Calumet National Bank. with deposits last report the Hegewisch Brighton Park State and Marshall Square State Bank. all on outskirts Chicago. With total nine National 59 State banks Cook County have been closed this year. most of them in quick succession of failures last The seventh closing was that of the First National Bank Kewadirectors said pected all depositors would be paid in full. Yocum's Bank at Galva, $885,Resources, Closed. the Yocum Bank closed yesterday by its directors. Total in its last statement Capital was while the surplus Heavy of deposits given as the for closing. The only other bank the Galva First National, posted notice that days' notice would required fir withdrawal of time deposits. Earl Yocum, president of the closed bank. kidnaped year ago and held for several days but finally released unharmed. His abductors. who tricked into freeing him without receiving any ransom. later captured and sentenced to the penitentiary. Missouri Bank Had Deposits of $396,000. the Associated Press. Mo., Oct. Vandalia Trust Co. of Vandalia. of the oldest banking Mo., one stitutions in Missouri, failed notice the door open today. the affairs of the bank had stated to the State Fibeen turned over by order of the nance Department of directors. The banks' last board published Sept. 18, statement. showed $78,000 capital; Continued on Page Column

3. June 22, 1934 The Times Hammond, IN

Article Text

NEW HEGEWISCH BANK RECEIVER HEGEWISCH, Ill., June 22.—State Auditor Edward Barrett has named William L. O'Connell as receiver for the Hegewisch State bank, to take the place of Morgan L. Fitch. He has also ordered, it is said, that the office of the receiver be removed from the Hegewisch bank to the bank in Calumet City. It was reported that another dividend was to have been paid by Receiver Fitch, but that now, with the taking over of the receivership by Mr. O'Connell, and the expense attached to the change, said to have cost more than $2,000, there is little prospect of a dividend.

4. June 22, 1934 The Times Hammond, IN

Article Text

NEW HEGEWISCH BANK RECEIVER HEGEWISCH, Ill., June 22.—State Auditor Edward Barrett has named William L. O'Connell as receiver for the Hegewisch State bank, to take the place of Morgan L. Fitch. He has also ordered, it is said, that the office of the receiver be removed from the Hegewisch bank to the bank in Calumet City. It was reported that another dividend was to have been paid by Receiver Fitch, but that now, with the taking over of the receivership by Mr. O'Connell, and the expense attached to the change, said to have cost more than $2,000, there is little prospect of a dividend.

5. June 22, 1934 The Times Hammond, IN

Article Text

NEW HEGEWISCH BANK RECEIVER HEGEWISCH, Ill., June 22.—State Auditor Edward Barrett has named William L. O'Connell as receiver for the Hegewisch State bank, to take the place of Morgan L. Fitch. He has also ordered, it is said, that the office of the receiver be removed from the Hegewisch bank to the bank in Calumet City. It was reported that another dividend was to have been paid by Receiver Fitch, but that now, with the taking over of the receivership by Mr. O'Connell, and the expense attached to the change, said to have cost more than $2,000, there is little prospect of a dividend.

6. March 29, 1935 Chicago Tribune Chicago, IL

Article Text

BANK RECEIVER FIGHTS OUSTER BY STATE CHIEF Thomson Criticizes Central Control. John M. Thomson last night began a fight to prevent losing his receivership of the Kenwood State bank. Thomson was notified yesterday of his replacement by William L. O'Connell, receiver for all except three of Cook county's 140 closed banks, and that O'Connell will seek a court order affirming his appointment today before Circuit Judge John Prystalski. The Kenwood bank's assets would "wither and die" if "pigeonholed in the O'Connell central office under State Auditor Barrett's receivership consolidation plan," Thompson charged. He challenged the auditor's office to show where depositors would gain by any net economy through the change. Planned Another Payment. Thomson said that he asked three weeks ago for permission to pay another 10 per cent dividend [30 per cent has been paid], but that the auditor has ignored his request, "presumably so that the O'Connell régime may reap the credit." The receiver also intimated bad faith in the suddenness of ouster proceedings, that he had an understanding that there would be a chance to discuss the matter first, and will ask a continuance this morning to marshal depositors to his assistance. Depositors representing $148,000 of the $264,000 deposit liability at the time of closing have signed a petition asking that he be retained, Thomson said. "If they leave me alone I can pay out almost in full," he asserted. In addition to funds now available to bring repayments to 40 per cent, unsold bonds have a market value of $52,000—enough for another 20 per cent, he said. Source of Returns. Enough for another 15 per cent is anticipated by Thomson from the stockholders' liability suit. Thus, he figures, repayments should reach at least 75 cents on the dollar within a year or less. "The only leg they have to stand on is economy," said Thomson. "But I hold that it is impossible to liquidate a small bank like this in the proper way from a central office. You can't collect unless you go out after it—and that is exactly what won't be done if it is stuck in a pigeonhole downtown." Thomson also intimated that transferring the receivership may work to the disadvantage of depositors through more lenient settlement of debts to the bank. He said that numerous obstacles had been placed in the way of his making certain collections, and also declared it unfair to have the bank liquidated by the central receiver, because the latter employs in his office the former assistant cashier of the bank against whom he reported a judgment for $5,000. The Lansing State bank today will pay 5 per cent, or $16,355, to depositors, and the Hegewisch State bank depositors will receive 7½ per cent.