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CASH SHORTAGE CAUSES CLOSING OF NEGRO BANK Associated Press.) CHICAGO. Aug. Roosevelt State Bank, negro bank with deposits of was ordered closed by the state auditor today because of cash shortage. There had been heavy withdrawals been inspired by the closing of the Binga State another negro institution, of frozen assets, largely real estate papers.
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Close Chicago Bank After Heavy Run Roosevelt State deposits ordered closed by the state auditor Saturday cash shortage caused by heavy withdrawals The bank is located Negro neighborhood and reported that resulted from closing last week Bings Negro bank which had posits
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SHORTAGE CAUSES CHICAGO NEGRO BANK TO BE CLOSED Chicago, Aug. Roosevelt State Bank, negro bank deposits $1,390,000 ordered closed by the State Auditor today because of cash shortage. There had been heavy withdrawals, said have been inspired by the closing of the Binga State Bank, another negro because frozen assets, largely real estate papers.
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Negro Bank With Deposits Of $1,390,000 Is Closed Chicago, Roosevelt State bank negro bank. with deposits of $1,390,000 was ordered closed by the state auditor today because of cash shortage There had been heavy withdrawals said inspired the closing the Biga State bank. negro institution, because of frozassets, largely real estate
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STATE BANK CLOSES. CHICAGO, August 2 (A).-The Roosevelt State Bank, a Negro bank with desposits of $1,390,000, was ordered closed by the State auditor today because of a cash shortage. There had been heavy withdrawals, said to have been inspired by the closing of the Binga State Bank, another Negro institution, because of frozen assets, largely real estate papers.
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Heavy Withdrawals Force Big Chicago Bank to Close CHICAGO- (U.P.) -Heavy withforced the closing today of the Roosevelt bank on the south side, where the Binga State bank three days Deposits of the Roosevelt bank be capital $200,000 and surplus $50,000.
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THIRD NEGRO BANK IN CHICAGO CLOSES CHICAGO Aug third bank patronized owned by groes closed today. Citizens Trust and Savings Bank ordered shut the state auditor following during which $500.withdrawn. first negro bank to close The the Bigna State. deposits than had more frozen real estate asse's. The second was the Roosevelt State deposits more than due run negro depositors. The Citizens' Bank was capitalized and had deposits about $1,000,000.
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day following a run on the bank during which $500.000 in deposits were withdrawn This bank is the third South Side bank closed during the last week. The Citizen's bank is located at 55th and South State, at the edge the negro district The first bank to close was the Bings State, with deposits of more than $1,200, 000 among the negroes. The second WAS the Roosevelt State, which also had deposits of more than $1,000,000. much of it negro savings.
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Chicago Bank Closes After Aug. Citizens Trust Savings bank closed the state auditor following bank during which deposits This bank third south bank closed during week. bank at Fiftyfifth State streets. the edge the The first bank to was the Binga State deposits more than among Negroes. The second the Roosevelt State which deposits of more than much Negro savings. The Roosevelt State closed cash shortage caused heavy after the Binga bank was closed. The Citizens bank capitalized and had deposits of about $1,000,000.
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CHICAGO BANK IS CLOSED BY AUDITOR CHICAGO. Aug. (AP) The BUSINESS Citizens Trust and Savings Bank LARGE OR SMALL was closed by the state auditor today following run on the bank during which $500,000 in deposits were withdrawn. This bank is the third South Side bank closed during the last week. The Citizen's Bank is located at 55th and South Ask State, at the edge of the negro disFor trict. The first bank to close was the Binga State. with deposits of more than $1,200,000 among the negroes. The second was the Roosevelt State, which also had deposits of more than $1,000,000 much of it negro savings. The Roosevelt State was closed due to a cash shortage caused by heavy withdrawals after the Binga Bank was closed. The Citizens Bank was capitalized at $200,000 and had deposits of about $1,000,000
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Third Chicago Bank Closed Out by Run Associated Press) CHICAGO, citizens Trust and Savings bank closed the state auditor today following on the bank during which $500,000 deposits were withdrawn. This bank the third South bank closed during the last week. The Citizens bank located and South State, the edge the negro district. The first bank was the Binga State, with posits more than among The second the Roosevelt State, which also more than much negro savings.
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Another Chicago Bank Closed By State Auditor Chicago, Roosevelt State Negro bank with deposits of ordered closed the State Auditor Saturday August because cash shortage There been heavy withdrawals, said to have been inspired by the closing the Binga State Bank, another Negro institution, because of frozen assets largely estate papers.
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BETHEL DREW $2,500 BEFORE BANK CRASH Common Sense Committee Asks Officials to Show Where Money Went. PRODUCE LETTERS Records Show Sum was Not Deposited in Defunct Bank. CHICAGO.—Calling upon members and officials of Bethel A.M.E. Church to find out where $2,500 deposited for the purchase of Mt Sinai Temple, went, the Common Sense Committee produced two letters showing that it had not been deposited in the defunct Roosevelt State Bank, this week. In a circular in which facsimile letters from the bank's receivers declaring that no deposit was made by Bethel officials, the committee quotes Bishop A. J. Carey as having told Bethel members that he and the pastor had withdrawn the money and deposited it in the Roosevelt State bank. Asks For Proof In the same circular the committee charges that the bishop, the presiding elder and the pastor know where the money went and suggests that the members demand proof of deposit in the form of receipts or bank book. The $2,500 referred to was collected to make payment on the Mt. Sinai Temple which the church contracted to buy, but which purchase was abandoned some time ago.
CONTEMPT CASE POSTPONED Prominent Illinois Men Cited By Judge The case centering around the citation for contempt court against Dr. M. O. Bousfield, W. Ellis W. Louis Davis. and James Jones, postponed by Judge Gentzell Saturday namely the Chicago Trust Company, requested the action. might disposed out the reports the matter out of which tempt the the defunct Roosevelt Bank num. obligathe Cemetery and the Liberty Foundation Finance Comwhich the dents had paid, before the failure the When notes, which alleged paid, but not dered. the Chicago Trust the of the funct action was taken to payment. Attorney Earl Dickerson set the ordered tried merits The Trust Comthen applied Judge Gentzel the order cause not be in contempt respondents appeared Saturday and the filled was postponed. has out that of the the for various has already been the receiver attorneys although one penny far has the The the that the the judgdelaying them hinderthem discharging of the depositors.
Bank Receivership Collections Shown cago district which are in the hands. Of in there are eleven banks for which are yet to be appointed. Most of banks in which were not included in yesterday's report closed too to have had analyses made. Reports to the public are to be made Mr. Nelson said. Three More Receivers Named. The auditor named ceivers for the Diversey the Roosevelt and Twelfth Street Glen bank the sey and & muth closed of and of of the is to as the Floyd M. attorney. The bank it closed on June resources of $222,932 and deposits of $104,373. Mr. Nelson and Mr. Kenlay were also er and for Twelfth Street bank respectively, which closed the on June 29 with resources of $385,886 and deposits of The following table, forming a part of State Auditor Nelson's report banks now in the of the state collected so far by their at date of their the and the amounts The receivers and salaries and bursements Date Total BINGA 73,673 receiver 957,875 365,196 5,136,409 3,859,919 Urion, PK. 29,313 572,213 307,489 976 Frank 25,364 CITIZENS 1,024,043 626,105 116,502 Nelson CITIZENS 1,944,458 1,193,777 CITY 4,522,881 1,735,801 receiver. 1,393,093 receiver. COMMERCE 247,433 83,518 1,741,320 559,744 TRUST 8,108 5-14-31 BANK 2,405,742 130,727 14,985 OF 457,251 106,402 85,756 VIEW 1,499,309 Green LANSING BANK 43,287 Gorman 8-16-30 LARAMIE 712,129 81,310 20,570 receiver. 3,600,000 Dunbar 8-15-30 BANK 970,656 762,883 293,690 Barrett 2,707 4-14-31 STATE 1,203,423 165,881 STEISKAL 1,107,265 616,523 PEOPLE'S 572.412 181.250 Busscher 132.870 STATE BANK 458,997 323,460 Title Co., OF 447,484 99,281 Weinfeld. BANKERS 1,249,644 133,193 119,152 5-14-31 738,059 74,508 1,898 Litsinger 1-28-30 WEST CENTRAL 805,100 Bernard Totals
Receivers Reveal Conditions of Five More Closed Banks State Auditor Oscar Nelson yesterday made public the conditions of five more closed banks as disclosed by reports of receivers of the various banks. The reports constitute an accounting of the stewardship of each bank receiver and are being issued as they are compiled. George Wilson, receiver for the Commercial Trust and Savings bank, which closed May 28, listed total receipts of $464,792. He placed disbursements at $193,884, including $131,500 which he had to meet as bills payable. His itemized list of disbursements follows: Legal expenses 2,500 Clerical hire. 2,933 expense 2,246 Auditor's expense in closing bank. 975 Bills payable 181,500 Henry S Savage, receiver for the Noel State bank, closed June 18, listed total receipts of $912,954 and disbursements of $465,657. He listed total resources including $447 297 in cash on hand at $5,908,017. His itemized disbursements are as follows: Preferred claims paid $152,660 694 Receiver's salary and expenses. Clerical 7,043 1,683 Miscellaneous expense Auditor's expense in closing bank 2,370 297,068 Bills payable 4,076 Contra B2. 60 Contra B3 The Chicago Trust company, receiver for the Roosevelt Bankers State bank, closed Aug. 2, 1930, listed receipts of $151,569 and disbursements at $150,293. The company itemized reports of disbursements is as follows: Preferred claims paid $ 16,965 Receiver's salary and expenses 20,000 Leganl expenses 15,543 Clerical hire. 22,287 Miscellaneous 26,996 Auditor's in closing bank. 1,500 Bills payable paid. 47,000 George W. Reinecke, receiver for the Roseland State Savings bank. closed July 6, listed receipts of $395,296 and of $72,893. His itemized list of disbursements is as follows: Preferred claims paid 66,834 Clerical hire. 2,188 Miscellaneous expense 1,011 Auditor's expense in closing bank. 1,560 Insurance advanced 1,087 Arthur A. R. Nelson, receiver for the Twelfth Street State bank, closed June 29, listed receipts of and disbursements of $16,066. His itemized list of disbursements is as follows: Receiver's salary and expenses 256 Clerical 523 Miscellaneous expenses. 154 Audtior's closing bank..... 360 Bills payable paid. 14,792 All statements are dated Aug. 31. The statements issued yesterday with the seven released Tuesday cover 12 of the 67 closed banks in this area.
CHICAGO HIT HARD BIG PRICE BANK RECEIVERS $10,000 to $20,000 Charged as Fees to Colored Depositors. WHITES SMALLER $494 Charged when Ofay Banks Failed. CHICAGO. tigation of reports of banks closed here during the past 18 months reveals that the cost of liquidation white banks has been extremely low when compared to other banks of similar standing. Large expenditures for receiver's pay, legal expense clerk hire and are noted as the reports of colored banks are compared with white banks. Three of these banks which have comparatively white depositors, are the Binga State, Roosevelt Bankers State and the Citizens' Trust Savings Edward H. Morris, receiver for the Binga Bank, reported hand against which due bank's creditors. is expected to be paid, September Spent $85,000 The receiver's report disthat has been for legal expenses and attorney's which James Cashin, Morris' partner, received $10,000; for dstenographer and miscellaneous Receipts under the listed 157.95. total disbursements at Total receipts for the RooseveltBankers State bank disbursements, $150,293 The Trust this Among the receiver's and expense account of legal $15,543; clerical hire and expenses which just about gobbled that the took Zuehls, white was appointed Savings receipts were and his this case the salary expenses flat expenses, clerical penses, Whites Spent $3,800 Reports on twelve located in are available the Diversey Trust Savings Bank with ceipts and the ments, as and penses, $465 legal expenses torney's clerk stenographer hire, and miscellanexpenses, the report of the Noel State Bank be the Citizens' and Savings The Noel receiver has in ceipts to and bursed $465,657 The ary $694; There no legal expenses listed No Pay for Morris In the the Binga bank der that he the receiver not to report salary for himself. Sometime reported that he allowed $5,000. There been complaint against the high cost of receiverships which eat up the monshow that there element in the city struck as receiverships people stand ter in and other in up the the tangled affairs of the banks.
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Receiver Says Only $1,200 Cash At Roosevelt Bank; No Hope Of Dividends The 25,000 or more depositors were returned and are still pending whose savings were tied up in the against Samuel Flowers, president of the bank, Alexander Flowers closing of the Roosevelt-Bankers State bank. most of whom are resichairman of the board of direectors dents of the south side have but Frank Flowers, vice president, and Louis Franks, cashier of the bank. small hope of even a very small The four bank officials were tried return on the deposit in the form on one in: ment of accepting deof dividends, judging from the report of the receivers which was posits while the bank was known to (Continued on page 3) made public last week. The total resources of the bank, according to the report. total only $920,842.75 while the balance due to the deposiSTEALS $3,000 tors and other ereditors .f the bank are placed at $1,169,791.40. Of the FUND FOR NEGRO total accedets o: the bank. the receivers have b n able to realize only FLOOD RELIEF $1,200 in cash for the depositors MEMPHIS, Tenn., Oct. 7.-Mrs. during the fourteen months since Morah S. Deusing. white, former the bank was closed. While only slightly inore than a thousand dolpostmistress *at Ravenwoodd, La. was arrested here Wednesday on a lars is available for the depositors warrant charging her with having It is significant that the process of embezzled $3000 during her term of liq id.tin~ the bank the receivers office. Police has been searching for have deducted $20.000 for receivers her through Arkansas, Louisiana fees. $1.000 for tt TWS fees. and and Tenness. discovering her work$22,287.25 for clerk and stenographer compensation. Another item of ing as a cashier is her brother's "driv-yourself automobile office." expense which has not been fully Mrs. Deusing's brother, H. H explaimed in the published report is one of $26,996.79 for "miscellanSpiller. acted as her spokesman and explain I that she was the only eous expense." Thus the total exwhite person in or near Ravenwood panses.' Thus the total expenses during the 1927 flood and that she for liouidating the bank amount to had used some of the money to feed $86,328.03, in order to retrive a total the hungry and distressed Negroes of $1,200 for the depositors. there. The balance was supposed to CaPed "Grand Steal" have been burnt i: a fire whic' coAt the time when the bank was stroved her home last year. Police closed by the state auditor on August 2, 1930, It was found that the skeptical, said thev also wanted to talk to her about her possible comfinances of the institution had been plicity in the operation of auto hopelessly involved by the maneutheft ring verings of the officers. Indictments
Receiver Says Only $1,200 Cash At Roosevelt Bank; No Hope Of Dividends The 25,000 or more depositors whose savings were tied up in the closing of the State bank most of whom are dents of the south side have but small hope of even very small return on the deposit in the form of dividends. judging from the port of the receivers which was made public last week The total sources of the bank the report total only $920,842.75 while the balance due to the Cepositors and other emeditors the bank are placed at $1,169,791.40 Of the ers have b n able to realize only $1,200 in cash the depositors during the the bank was closed While only is available for the depositors lin significant that the process of the bank the have deducted $20.000 for receivers expense which has not been full in the published report panses. Thus the total expense for liouidating the bank amount to $86 in order to retrive a total CaPed "Grand Steal" At the time when the bank closed by the state acditor on AuRust 2. 1930 It was found that the finances of the institutic had been hopelessly Involved by the maneu verings of the officers. Indictments theft were returned and are still pending against Samuel Flowers. president of the bank Alexander Flowers chairman of the board of direectors Frank Flowers, vice president and Louis Franks cashier of the bank The four bank officials were tried one ment of accepting dethe bank was known to Continued on page 3)
Made Deputy Receiver of Two Closed Banks J. Turner Wall, well-known business man of Chicago, has been appointed as deputy receiver in charge of the Citizen's Trust and Savings bank and the Roosevelt Bankers State bank by W. L. O'Connell, general bank receiver for the state of Illinois. As soon as the inventories of these banks have been checked all records and securities will be moved from the Loop to the Binga State bank at 35th and State Sts.
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Fees Eat Up Assets Of Chicago Bank Chicago, Oct. 5-(ANP)-Although depositors, the majority of them Negroes, have never received a "dividend", Master-in-Chancery Louis J. Behan, attorney for the receiver of the Roosevelt-Bankers State Bank on 47th street, has collected $15,000 in fees, investigations disclosed this week. In addition, some $59,000 has been spent here for "clerk hire and miscellaneous expense" since the bank closed five years ago. When the bank closed, depositors were owed $1,268,300.79. Although nothing has been paid to depositors, the bank's remaining assets after five years of receivership have a current book value of only $801,626.63.
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Fees Eat Up Assets Of Of Closed Chicago Bank CHICAGO (ANP) - Although depositors, the majority of them Negroes, have never received a "dividend," Master-in-Chancery L. J. Behan, attorney for the receiver of the Roosevelt Bankers State bank on 47th street, has collected $15,000 in fees, investigations disclosed this week. In addition some $59,000 has been spent here for "clerk hire and miscellaneous expense" since the bank closed five years ago. When the bank closed, depositors were owed $1,268,300.79. Although nothing has been paid to depositors, the bank's remaining assets after five years of receivership have a current book value of only $801,626.63.