Iowa Loan & Trust Company (Des Moines, IA)

Episode Information

Episode UID
33005171524
Episode Type
Suspension β†’ Closure
Bank Type
trust
Bank ID
3300517 routing
Routing Number
33-0051
Start Date
December 20, 1926
Location
Des Moines, Iowa (41.601, -93.609)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
38155bc14d606620

Response Measures

None

Description

Bank closed by board resolution and state superintendent was named receiver; losses tied to frozen real-estate loans and guaranteed mortgages.

Events (3)

1. December 20, 1926 Other
Newspaper Excerpt
Hundreds of persons jammed the streets in front the closed institution ... Heavy runs were made on practically every other large bank in Des Moines during the day, but these withdrawals were met with hundreds of thousands dollars imported from Chicago and Omaha banks during Sunday.
Source
newspapers
2. December 20, 1926 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Inability to realize on long‑accumulated real estate loans and liability on endorsed/guaranteed mortgages sold to eastern companies.
Newspaper Excerpt
the Iowa Loan and Trust Company bank ... failed to open for business today. Frozen real estate loans ... was given as the reason for the failure.
Source
newspapers
3. December 25, 1926 Receivership
Newspaper Excerpt
Court action to remove L. A. Andrews, State superintendent of banking, as the receiver for the Iowa Loan and Trust Company, which suspended business here Monday, was started yesterday.
Source
newspapers

Newspaper Articles (17)

Article from The Dowagiac Daily News, December 20, 1926

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ANOTHER 10WA BANK FAILED TO OPEN TODAY DES MOINES, Iowa, Dec. 20(UP)-The Iowa Loan and Trust Company bank, with $500,000 capital. surplus and deposits of .000.000 failed to open for business today. Frozen real estate loans. accu. mulated period of several years. was given as the reason for the failure. Conferences of business men and DesMoines bankers were held until m.. today in vain effort to save the institution Hope was aban. doned when it became known that the bank had endorsed more than in mortgages, and thus were liable for these in addition


Article from Stevens Point Journal, December 20, 1926

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PREPARE FOR RUNS AS IOWA BANK FAILS Dec The Iowa Loan and Trust Company bank, plus. and deposits of failed to open for business today Frozen real estate loans. accumulat ed over II period of several years, was given as the reason for the fail- Conferences of business men and Des Moines bankers were held until to Hundreds of persons jammed the ty in keeping a traffic lane open. *The bank had specialized in Christmas savings deposits. Hundreds of thousands of dollars were


Article from Chippewa Herald-Telegram, December 20, 1926

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FROZEN ASSETS Iowa Trust and Loan Company Fails Today Up With Mortgages DES MOINES, Iowa, Dec. Iowa Loan and Trust company bank with $500,000 capital, $500,000 surplus and deposits 000,000 failed to open for business day. Frozen real estate loans accumulated over of several years was given the reason for the failConferences of business men and Des Moines bankers were held until m. today in vain effort to the institution. Hope was abandoned when became known that the bank had endorsed mortgages and thus liable for these addition to the deposits. Hundreds of persons jammed the streets in front the closed institution at today, and special squad of police had difficulty in traffic The bank had specialized in Christ mas savings Hundreds of thousands of dollars were rushed into the city late Satur day Sunday and other Des Moines bankers they ready for heavy runs which appeared might affect all the other institutions.


Article from Baraboo News Republic, December 20, 1926

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Des Moines Bank Closes Doors (By United Press) DesMoines, Iowa The Iowa Loan and Trust. company bank with capital $500,000, a surplus of $500,000, and deposits of $7,000,000 failed shir open its dcors today. Frozen real estate loans accumulating for many years was giv. en as the cause of failure. Hundreds of depositors jammed the streets and squads of special police struggled to keep a lane open for traffic. Hundreds of dollars were rushed to the city late Saturday and Sunday and other banks announced that they were ready for the heavy run which was to be expected. The closed institution is said to have 100 to 125 correspondent banks throughout the state. Officials were unable to say whether these deposits were heavy enough to cause trouble.


Article from The Cincinnati Enquirer, December 21, 1926

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SECRET CONFERENCE HELD To Devise Plans To Reopen Doors of Des Moines Bank. Des Moines, Iowa, December 20 (A. P.). for reopening the Iowa Loan and Trust Company Bank, which closed today with deposits of approximately $5,235,000, were being dis cussed at conference of banking officials here tonight. That a group of business men take over the bank, eventually pay its-depositors and assume any loss, or that an attempt be made to secure time waivers on time deposits under which 10 per cent would be paid soon, 40 per cent within 18 months and the remainder upon liquidation of the bank's frozen assets, were two plans before the conferees, it was understood. committee from the Des Moines Clearing House, including B. F. Kauffmann, Homer A. Miller, R. A. Crawford and Rolfe Wagner, was meeting with State Superintendent of Banking Although the Iowa Loan and Trust Company had surplus of $500,000 and stock of $500,000. frozen assets, mostly in real estate, brought about the closing today. after an all-night session of business leaders had failed to bring about consolidation of the trust company with some other local institution. The bank was one of the largest in Des $656,000 public funds was on deposit in the bank. $500,000 of which was state all protected by surety bonds. The depositors came from all walks of life.


Article from The San Bernardino County Sun, December 21, 1926

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ON CHRISTMAS Many Des Moines Homes Feel Depressing Effect, Holiday Savings Gone (By United News) DES MOINES, Iowa, Dec. Failure of the Iowa Loan & Trust company bank here today, one of the largest and oldest banking institutions west of the Mississippi river, cast blight on the Christmas spirit in many Des Moines homes, for the bank had specialized Christmas savings. The bank, member of the federal reserve, recognized one of the soundest in the middle west, with $500,000 capital, $500,000 surplus and $7,000,000 deposits, collapsed over the weekend, despite efforts of other bankers and Des Moines business men to keep the institution alive Heavy runs were made on practically every other large bank in Des Moines during the day, but these withdrawals were met with hundreds of thousands dollars imported from Chicago and Omaha banks during Sunday. Inability to realize on real tate loans, made over period of several years, was given the reason for the failure by officials. Huge throngs of were congregated in front of the closed bank throughout the day, and special squad patrolmen had difficulty in keeping a traffic lane open. Andrews, state superintendent. announced today that the institution would probably pay to 75 cents on the dollar. bell that can be heard for 30 miles will ring in the new year. morial to John Wanamaker made in England and has just crossed the Atlantic.


Article from Fremont Tribune, December 21, 1926

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CLOSING OF IOWA BANKING FIRM IS CAUSE OF UNREST Starts Heavy Run on Other Des Moines Banks DES MOINES, Dec. had somewhat subsided today following the closing yesterday of the Iowa Loan and Trust company one of the oldest banking of the Mississippi river. Despite that there no cause for alarm with regard to deposits in other Des Moines banks depositors continued run on other banks until late yesterday afternoon. The Iowa National bank with deposits of more than $22,000,000 held the doors until after p. yesterday to allow any depositor State banking officials were in charge of the closed Iowa Loan and Trust bank and bankers and business were today continuing efforts to complete an Immedlate No announcement was available state bank officials said until complete checkup of the bank's affairs be Frozen assets in the of widely scattered real estate loans caused the bank to fall Efforts of bankers and business men to save the were blocked when was revealed that the bank had guaranteed more than In mortgages sold to eastern companies and was liable for these is-addi. tion to deposits of approximately


Article from The Klamath News, December 21, 1926

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Christmas Iowa Loan & Trust Co. of Des Moines, Member Federal Reserve, Closes its Doors. Dec. 20. of the Iowa Loan and Trust company bank here today, one of the largest and oldest banking institutions west of the Mississippi cast blight on the Christmas spirit in many Des Moines homes, for the bank had specialized in Christmas savings. The bank. member of the federal recognized one of the soundest the middle with surplus and deposits collapsed the week end. depsite efforts of other bankers and Des Moines business men to keep the institution alive. Heavy runs were made on practically other large bank in Des Moines during the day. but these with hundreds of thousands dollars (Continued on Page Four)


Article from The Morning Press, December 21, 1926

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DES MOINES BANK IS CLOSED Efforts to Save Iowa Loan and Trust Company Fail DES (United News) Failure of the Iowa Loan & Trust company here today one of the largest and oldest banking Institutions west of the Mississippi river. cast a blight on the Christmas spirit in many Des Moines homes for the bank has specialized in Christmas savings The bank. member of the fed eral reserve. recognized as one of the soundest in- the middle west plus and $7,000,000 deposits. collapsed over the week-end despite efforts of other bankers and Des Moines businessmen to keep the alive Heavy runs were made on prace tically every other large bank Des Moines during the day but these withdrawals were met with hundreds of thousands of dollars imported from Chicago and Omaha banks during


Article from The Morning Press, December 22, 1926

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HUGE BANK CLOSES Large Institution in Des Moines Shuts Its Doors Des Moines, Iowa Dec. 21.-Fail, ure of the Iowa Loan and Trust Company Bank here today. one of the largest and oldest banking Institutions west of the Mississippi River, has cast a blight on the Christmas spirit in many Des Moines homes. The bank had specialized in Christmas savings. The bank, member of the Fed. eral Reserve, recognized as one of the soundest in the Middle West with $500,000 capital, $500,000 surplus and $7,000,000 deposits, collapsed over the week-end despite efforts of 'other bankers and Des Moines business men to keep it going Heavy runs were made on practically every other large bank in Des Moines yesterday but these withdrawals were met with hundreds of thousands of dollars imported from Chicago and Omaha banks during Sunday. Inability to realize on real estate loans, made over a period of several years, was given as the reason for the failure by officials. Huge throngs of depositors were congregated in front of the closed bank throughout the day and special squad of patrolmen had difficulty in keeping a traffic lane open. L. A. Andrews, state superintendent of banking. announced yesterday that the institution would probably pay sixty to seventy-five cents on the dollar. MRS. DELLA O'NEAL DIED AT DANVILLE Danville, Dec. 20 Mrs. Della O'Neal, aged 68, died at the Gelsinger Hospital last night at 11:50 o'clock. Heart disease which developed after her recovery from injuries sustained in fall at her home three weeks ago was the cause of her death. Mrs. O'Neal's elbow was fractured when she fell at the home of her daughter, Mrs. T. L. Haus, 307 Grand street, the evening of November 30. She was taken to the Geisinger Hospital and her injuries had healed to such an extent that she was scheduled for discharge from the institution Wednesday. She was up and about Sunday and seemed in excellent spirits. At 5:30 o'clock yesterday she suffered sudden relapse, due to heart failure. and death occurred just before midnight. Mrs. O'Neal WAS born near Hazleton, August 27, 1858. She had made her home with her daughter, for several years. Shickshinny, and had looked forward on July 16. to becoming a member of the Trinity Lutheran Church here when she sustained the injury to her arm. She is survived by five daughters, Mrs. Haus, Mrs. C. E. Crawford, Bloomsburg: Mrs. Chester Hitchner, W. Pittston; Mrs. Charles Coates, Philadelphia: Mrs. Florence Sanford, Buffalo, N. Y.: two sons, Walter O'Neal, Wapwallopen, Maurice O'Neal, Philadelphia, and one sister, Mrs. John Freed, Glen Lyon. SAYS POLICE CHIEF AND MAZER MET AT MIDNIGHT Canton. Ohio, Dec. 21.-A midnight meeting July 15, between Floyd Streitenberger, ousted Canton policemand, and Louis Mazer, indicted with Patrick McDermott for the murder of Don R. Mellett, Canton publisher, was described by defense witness during McDermott's trial today. Mel- W. Young, under cross-examination testified that a short time after midnight July 16, as he was fixing the tail light of his car, near the Streitenberger home, he saw an auto. mobile nearby. The headlights were being jashed on and off, he said, signalling and he testified he heard Streitenberger say: "Probably that man wants to see me." The car was Identified at Mazer's Streitenberger, Young testified, went out to the car and talked to the occupant. Young's daughter, who lives near Streitenberger, corroborated her father's testimony. Greenwood Mr. and Mrs. Charles Martz, Mr. and Mrs. Roy Martz, Mr. and Mrs. Udel Kline and Mrs. Amos Kressler spent Thursday in Williamsport shopping.


Article from The Missouri Telegraph, December 23, 1926

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BIG IOWA BANK CLOSES DesMoines Dec. Iowa Loan and Trust Co., one of the largbanks DesMoines, failed its doors today. A notice posted the door of the bank stated been closed by resolution of the board of directors. The state bankdepartment will assume charge. Capitalized for and deposits listed


Article from Evening Star, December 26, 1926

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ATTACKS BANK RECEIVER. Depositor Wants Iowa Official Removed From Post. DES MOINES. Iowa, December 25 (P).-Court action to remove L. A. Andrews, State superintendent of banking. as the receiver for the Iowa Loan and Trust Company. which suspended business here Monday. was started yesterday. The petition. filed by Lon Pollock. a depositor. contends that the State law making the superintendent receiver for all closed banks is unconstitutional. Hearing was set for Wednesday. The bank had deposits of about $6.600,000.


Article from The Sioux City Journal, December 28, 1926

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BOND CONCERNS PAY STATE FOR LOST DEPOSITS Des Moines, Treasurer Johnson today final payment the state interest and replaceunder surety bond of public with the Central deposit when closed its doors. The bonding company now claim against the assumed state's receiver. restores to the state payment the deposit Des Moines Treasoffice, with the of remaining unfrom the Mechanics Savings bank. $500,000 on deposit Iowa Loan and Trust pany which closed week ago today, and will reimbursed under bank guaranty law replacement fund permits. The bonding companies that paid state were National today company, the Fidelity the Continental company, company and the Southern


Article from The Daily Nonpareil, December 28, 1926

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STATE RECOVERS $1,060,667 DEPOSIT PAYMENT OF $192,217 TO THE STATE TREASURER, CLOSES ACCOUNT IN 3 BANKS. FROM BONDING COMPANIES Four Nationally Known Surety Concerns Involved-Treasurer Johnson Had $7,818 In Another Closed Bank. (By The Associated Press.) DES MOINES, Ia., Dec: 28.-State Treasurer R. E. Johnson today recelved the final payment of $192,217.83 due the state as interest and replacement under a surety bond of public money on deposit with the Central Trust company when it closed its doors. The bonding company now assumed the state's claim against the bank's receiver. The payment restores to the state all the $1,060,667 43 on deposit in three Des Moines banks when Treasurer Johnson assumed office, with the exception of $7,818.75 remaining unpaid from the Mechanics Savings bank. The state had $500,000 on deposit with the Iowa Loan and Trust company which closed week ago today, and will be reimbursed under the Lovrien Brookhart bank guaranty law as the replacement funds permits. The bonding companies that paid the state today were the National Surety company. the Fidelity and Casualty company, the Continental Casualty company and the Southern Surety company.


Article from Des Moines Tribune, January 6, 1927

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SECOND NEVADA BANK CLOSES IN TWO DAYS Nevada. Ia., Jan. The Peoples Savings bank of Nevada. failed to open for business today, making the second bank failure in this city within twentyfour hours statement issued by officials said the bank had been closed the protection of depositors The bank had capitalization of 000 and deposits of Officers were M. president, and McConkie and Martin. vice presidnets. Meeting of bank officials of the city with business men and citizens was held last night follow ing the failure of the First National was given the meeting that the finances of the two remaining banks were in good condition. Peoples Savings however, failed few The Peoples Savings bank was correspondent the defunct Iowa Loan and Trust company bank of Des Moines.


Article from The Des Moines Register, September 11, 1928

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BANK RECEIVERS TAKE OFFICES IN BUILDING The combined receiverships of the three closed Des Moines banks will have offices. beginning today. on the eleventh floor of The Reg and Tribune building instead the banking quarters of the Iowa Loan Trust company in the Southern Surety building H. Vanderploeg. examiner In charge of the receiverships of Iowa Loan & Trust company the Commercial Savings bank and the Mechanics Savings bank. and his staff moved to their new quarters last night Distribution of dividends from the three banks will be made from The Register and Tribune building offices. The Southern Surety company owners of the building which housed the Iowa Loan & Trust company, will occupy the bank's former quarters. Cancellation of the Iowa Loan & Trust company lease, which had thirty years to run, will save the about $850 per month. 1. Andrew state super 'endent of banking. announced for the sale of the banking fixtures are nearing


Article from The Des Moines Register, November 3, 1929

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DES MOINES REGISTER, SUNDAY, NOV. 3, 1929. 248 Banks Being Liquidated by State Are Paying Depositors 53 Per Cent ANDREW LAUDS BANKING HEADS Liquidation Cost in State Is Low. (Continued From Page 1.) through the courtesy of the state banking department, which prepared Individual receivers appointed by the courts take charge of all closed national and private banks Receivers for state banks pointed in the same way before the legislature made the state sus perintendent of banking for all closed banks in 1923 at the request of and upon submission of receivership bill by the Iowa Bankers association. A list of all the national and private banks in Iowa closed between 1918 and 1928 and of state banks closed between 1918 and 1923 accompanies the table. Details similar to those given for state banks closed between 1923 and 1929 are not available for the national and private banks. 481 Banks Close Doors. Between 1918 and July 15. 1929. 481 banks closed their doors in Iowa. Seventy-six of these banks reopened, reorganized. consolidated or voluntarily liquidated. leaving 405 to go through receivership. or the banks closed. 322 were state banks. 84 were national banks and 75 were private banks The What Cheer Farmers Union Co-operative bank the first cooperative bank, also closed Jan. 1939 Twelve state banks and four national banks reopened: fortytwo state banks and four nationtional banks and one private bank merged with other banks. and two national banks and six private banks voluntarily liq- Figures Unavailable. What has happened to the state banks during the period of greatest banking difficulties must stand as the illustration for the whole case of banking failures until comparable figures on the liquidation of national and private banks are obtainable. The story of the liquidation of state banks, however, is one of the largest number of closings and the chief difference between It and the story of the liquidation of other banks probably will be that percentage of state bank liquidation has been larger, due to reduced overhead in group reWhile heavy losses were austained in state bank failures, the amounts involved are smaller than is commonly assumed. For instance. the assets of closed banks in receivership under state supervision represent only about per cent of the assets of all Iowa banks. The deposits in state banks in receivership. since the payments of dividends. amount to only about per cent of the total bank de- Liquidation Cost Low. Iowa has established a remarkably low record cost liquidation of closed banks. The cost per dollar of total realiza tion on assets has been under 5 per cent. startling feature of Iowa's bank liquidation 18 the fact that the has been selfsupporting According to Mr. Andrew, enough interest and rent has been collected to pay the entire cost of the receiverships, and in numerous instances the receiverships actually have been conducted at profit. What happened with the receiverships of the two largest state banks which closed in Iowa is illustrative of the achievement of closing out banks at profit. In the liquidation of the Iowa Loan & Trust company of Des Moines, receipts from interest and rents have exceeded cost of the receivership by nearly $124 000 The profit in the Marshalltown State bank receivership has been $42,000 to date. Total to Be 70. Incidentally, the Iowa Loan & Trust company will pay another 10 per dividend before Christmas, bringing the total paid to 70 per cent, since dividends totalling 60 per cent have now been paid. The State bank now has paid 85 per cent dividends, and neither receivership is closed up. Compromise which were mentioned above. have in creased returns to depositors, directly or indirectly which do not show in the cash dividends any more than set-offs appear Many thousands dollars have been paid in for depositors through compromise settlements when the debtor was judgment proof Mr. Andrew said Satur day "No compromises or settlements have been made. he ex. plained. "without first being submitted to the courts on advertised notice and nothing has been done until the court has instructed the receiver. In many cases, it is a question of getting one-half or one-fourth of the claim or nothing. but despite pressure to force settlement. none has been made without approval "There has been no forced selling of assets, which has resulted in prolonging some receiverships, but will result in a better return to the depositors. Two Courses Open. "In the liquidation of a bank the receiver always has two classes of persons urging him to do things in the way in which they insist they should be done "The first class wants immediate liquidation at any price and its money back in as short time as possible It would rather have fifty cents on the dollar in hur. ry than seventy-five cents after two three years. Some Wait for More. "The other class insists on slow and careful liquidation. preferring to wait years. If necessary. to get more return on the dollar "The receivership department has tried to steer a good middle