Arlington Heights State Bank (Arlington Heights, IL)

Episode Information

Episode UID
594724891580
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
59472489 hash
Start Date
August 15, 1931
Location
Arlington Heights, Illinois (42.097, -87.982)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
017eee6b6467956f

Response Measures

None

Description

Receiver name appears as W. L. Plew in some pieces and William L. O'Connell in another; likely different stages of receivership/administration.

Events (2)
1. August 15, 1931 Receivership
Newspaper Excerpt
statement this week by Mr. W. L. Plew, receiver; receiver's appointment and liquidating activities described in 1932–1935 articles. First dividend ordered by state auditor; receiver concentrated on paying bills totaling $115,600 and liquidating assets later reported by receiver O'Connell/Robertson in 1935.
Source
newspapers
2. August 15, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed because of insolvency/insufficient cash on hand and large bills payable and bad assets; auditor ordered closing.
Newspaper Excerpt
closing Aug. 15, 1931
Source
newspapers

Newspaper Articles (10)
1. August 17, 1931 Waukegan News-Sun Waukegan, IL

Article Text

CHICAGO STOCKS CLOSING PRICES identified as those of Indians, it While the Dickson culture shown exhibit certainly dates back before the white man's rival, probably not more than 500 to 1,000 years old. This indicated by the excellent conditions the skeletons artifacts. There are numerous historical records the building mounds various Indian tribes. Most of the Illinois constructed prehistoric times, them are than years old, the muMounds the Dickson culture usually burials laid various levels. cating that they built ually. In sharp with the culture represented by the wellknown hopewell mounds Ohio, the Dickson culture almost copper, no platform pipes, perforated and cut BANK CLOSES DOORS The Arlington Heights Bank failed to doors the auditor Examination accounts was started. GREEN FRUITS CHICAGO. fruits; apples per bushel; peaches $1.00-1.25 per bushel. FLOUR unchanged. In carload lots, family patents quoted barrel in pound cotton sacks Shipments SILVER NEW YORK, Aug. 17. Bar silver Historians say that Richard Coeurconceived tarring and feathering Wilderness was originally written Stocks Close CHICAGO, Aug Material Serv 18% Close McGraw Electric 10% Stocks 33% McQuay Norris Abbot Merch Mfrs Acme West 17% Assoc Tel Util Midland Unit, Mid 73 Bendix Aviation 21% 19% Mid 92% Borg Warner Mo Kans Pipe 4½ Borg Modine Bruce 4% Morgan Litho Butler Bros Nat Battery 32 Ser 93 Nat Leather Pub 16% Nat Secur Inv Nat Secur pf Cent Pub Ser Nat Un Radio Cities Service Nor Pow Comwith No So Am Construct Pf Norwest Bancorp Consumers 1% Norwest Eng Cont Chicago West 86 Cont Chic 34% Cord Corp Pines Winter Corp Sec 14% Public Serv Crane Co 25 Q Crane Qrs Devry 1% Dexter Co 7½ Quaker Oats 139% 57 Rath Pack Emp Seaboard Util Fitzsimmons Con Union 6% Foote Mach West G Steinite Radio Gen Candy Corp 2½ 21 Super Maid Goldblatt Swift 25% Gt Lakes Aircraft Swift Intl 34 Gt Lakes Dredge Grigsby Grunow 3% H Tel Bond Sh 53% Hall 14% Bond Sh Pf Hart Carter. pf 6% Houdaille Her Unit Corp of Am Houdaille Her Gypsum 38 Gypsum Pf 133 Ill Brick Radio Tel Insull Util Utah Radio Invest Am Vot Iron Fireman 13 Util Ind Pf Kellogg Switch 3% Viking Pump Vortex Keystone Steel Vortex Cup A 26% Libby McNeill 10% Walgreen Co Manhat Dearborn 9½ Stock sales today 82,000 shares. Marshall Field 24 Bond sales today $24,000.

2. August 20, 1931 Chicago Tribune Chicago, IL

Article Text

OPEN BAIN BANK BOOKS TODAY IN HUNT FOR FRAUD Swanson Accountants to Search Records. (Picture on back page.) State's Attorney search for of the state banking in the management of the de funct Bain banks will begin today. Henry E. Ayers, banking specialist of the state's staff, will em bark this morning on study of the records of the original Bain bank. the West Englewood Trust and Savings, at 1624 West 63d street, where John Bain made his start as financier 25 years ago and where the Bain bank receiver. Irwin T. Gilruth, now has headquarters. All Records to Be Searched. Finishing there, the and his will from bank to bank of the Bain group on the south and the twelve institutions the chain have been examined. Estimates were that the investigation would require many weeks. mode of the work the and receiver in order to expedite the investigation was agreed upon at a conference yes terday between Mr. Ayers and Mr. Gilruth. They talked for and half behind closed doors in Mr. Swanson's downtown office. Chatting afterwards with reporters, Mr. Ayers expressed himself as being gratified with the Mr. Gilruth had extended him. His remarks were taken to indicate a healing of the breach between and as Tuesday when Mr. Swanson tartly criticized State Auditor Oscar Nelson and the various bank receivers for "lack of Produces Some of Records. Mr. Gllruth some of the Bain bank records here with him,' Mr. Ayers. We discussed the said condition of the Bain banks generally Thus there appears to be no far dence of criminal violations of the bank act in those banks. Receiver Gilruth broke in at that point. of that my published report on the Bain banks made charges of criminal acts against any one,' he cautioned the reporters. During the day new light was cast the origin of the report, wherein Mr. Gilruth the $2,000,000 indebtedness of the Bain to the banks, thus precipitating the state's investigation. The receiver' purpose in issuing it had puzzled many Purpose of Report Revealed. From reliable was learned that preparation and of the report was by Auditor Nelson personally. His purpose, it is understood, was to acquaint Mr. Bain's friends with the seriousness of his plight on the theory that they would be produce cash to meet his debts to the banks, thus providing for the deposito Mr. Bain has been for 15 years of the south park board and wheel horse in the Deneen Republican organization. From an individual high in the councils of the Deneen It was learned that some of the banker's wealthy friends have at least taken cognizance of the state auditor's broad hint. There has been some discussion of raising fund to meet Mr. Bain's debts," this informant said. In other times it could have been done, but cash is scarce right now. among the so called There is talk of plan of Mr. to take over and his real holdings, but this too may come to naught.' Several hundred depositors of the Brainerd State bank, a Bain Institution. met last night in hall at 8656 South avenue to elect depositors' committee. Considerable stormy talk developed the merits of Mr. Bain's claim that with careful administration by the receiver," the banks would pay off in full. Criticism was hurled Mr. Bain. Receiver Gilruth and Auditor Nelson, indiscriminately. The depositors elected committee comprising William Schmidt, vice president of the North Beverly Improvement association; G. F. Blaul, chairman of the directors of the improvement James Cunningham president of the association: S. Freel, president of the Brainerd association: Henry Altman, William and Joseph Balluff, Mr. Schmidt presided. Probe Waukegan Bank. Circuit Judge Ralph Dady of Lake county yesterday granted petition of State's Attorney A. Smith for grand jury investigation of the affairs of the Waukegan State bank. closed on June 18 with listed deposits of 000 and only $38,000 cash on hand. Auditor Nelson announced the closing of the Arlington Heights State bank of Arlington Heights. an institution with deposits of

3. April 29, 1932 Arlington Heights Herald Arlington Heights, IL

Article Text

CLOSED BANK'S ASSETS BEING SAFEGUARDED Policy of Recovering Collateral Delays Dividends Why there have not been dividends to depositors from the closed Arlington Heights State bank is disclosed in a statement this week by Mr. W. L. Plew, receiver. It appears that the amount of bills payable in Chicago, and the desire of the Receiver to prevent a loss to the depositors and stockholders by the forfeiting of the collateral given for the loans, has made it nec-

4. April 29, 1932 Arlington Heights Herald Arlington Heights, IL

Article Text

Why there have not been dividends to depositors from the closed Arlington Heights State bank is disclosed in a statement this week by Mr. W. L. Plew, receiver. It appears that the amount of bills payable in Chicago, and the desire of the Receiver to prevent a loss to the depositors and stockholders by the forfeiting of the collateral given for the loans, has made it necessary for him to use a large part of the available funds for payment of these loans, thus recovering the collateral. Referring to the Statement of Condition as of March 31, 1932, as published elsewhere in this issue, Mr. Plew explains that since the March 31 report $16,581.10 of bills payable have been paid in full; but that much collateral is held in Chicago which will not be released until an amount of nearly $25,000 in rediscounts (largely school warrants of the High school and Grade school districts) is cleaned up. Then with a few preferred claims, the receiver can start accumulating a fund for the first dividend to depositors. Early sale of certain bonds have been to the advantage of those interested in the bank. One issue of utility bonds were sold at 46 and are now down to 8. An operating profit of $2,438.12 had been realized by March 31, after all salaries were paid. The statement shows resources of $580,436.03; with $429,144.46 due the bank's creditors; this is in addition to $155,052.02 in the capital accounts.

5. February 10, 1933 Arlington Heights Herald Arlington Heights, IL

Article Text

MOVIE HOUSE REOPEN Experienced Management Takes Long Term Ask Public Cooperation Movie Days are coming again in Heights. The Arlington Theatre reopens Saturday under the Ralph Redmond. who has term lease from Wm. long Plew, receiver of the Arlington Heights State Bank. Plew has been deluged with Mr. from people interested inquiries movie house, and he carefully Mr. Redmond before investigated lease that really means signing the business district lot Heights and the stockholders of the closed bank well the community itself. business men have comMany that with the closing plained business has fallthe movie house, secret that off. It is open theatre the assets the State Bank the Arlington Heights operation would and its successful stockholders and depositors benefit closed bank. With alike the the bank issues at stake, these care selecting used great thinks that in Mr. lessee and he has found take over its qualified to ment. after investigatMr. Redmond, conditions here, has the community fidence of considerable invested venture. He is anin the money the advertising nouncing through the coming column week, He is giving personal tractions. tention to the with acquainted come pleasing smile and has and for and him half who will give eryone chance. with Redmond was formerly Mr. circuit in Chicago, the Archer the Porteight years spending has devoted Park Theatre age the business, practwenty years with it. tically growing up assisted by James He being Heisman. Can Help Own Stockholders Cause Plew. in commenting upon Mr. the theatre said the e-opening never been have Wednesday: movie busienter the anxious considerable sum but with Bank funds tied of the State to the the building bank and the terest of the that movies be in Arlington fully that those who Heights. suggest in the closed funds deposit bank will their their movies. patronizing that the new ment will do utmost to merit support of the public." opening program There will be urday matinee. picture Sunday The advertising columns this paper gives full details. "Blind Man's New and Startling Novel Thrills, Mystery and Romance. Begins in The American Weekly, Magazine Distributed With Next CHICAGO HERALD AND AMINER.

6. August 18, 1933 The Daily Herald Chicago, IL

Article Text

LIQUIDATION Greatly of Arlington Hts. ness State Bank The following statement of disincome the State Bank, from lington closing Aug. 15, 1931, the close of June furnished by Plew. Of interest the item of of bills payable and discounts paid, much tivity the part of the bank's the bank's debts. Only about bills payable remain paid, as comparabout the bank closed. present state of the real tate market causing delay the bank's assets into cash. Expenses of foreclosures real estate have been partly avoidmaking cash defaulting mortgagors. The slow and poor market property taken over, does enable cash come in fast might be wished. $136,133.89 Adjustment 100.00 Miscl. auditor from appointment of 176.55 State Illinois, for closing bank 645.00 Salaries date, Receiver's 553.86 Receivers salary Receivers expense Fare) 38.28 Clerk salary 3,190.00 Stenographer salary 1,786.00 Janitor 938.00 Emp's. Publ. Liab. 219.22 Taxes Spec. Assts. (Bank 1,089.95 Messenger, Workmen's Ins. 141.94 Surety Bonds (Rec. Empl.) 700.00 light and water 223.91 574.24 Telephone telegraph. 182.44 Postage Box rents 71.00 Building 25.78 Stationery 110.75 supplies expense 702.14 Income expense 50.00 Auditors special report 260.00 bills payable. rediscounts 6,340.96 Bils payable redis counts paid Miscl, 23.17 Advance, Stockholders 100.00 Special collections paid 2,585.64 Expense Bldgs. ownFirst Mtgs. default where income less than expense: Insurance 202.13 Taxes 182.56 Foreclosure Fees 392.25 Cash on hand 1,413.45 $136,133.89 Income Interest received rents Commissions: Insurance and Mortgage renew312.72 Insurance, miscl. 458.91 Interest coupons 891.91 Notes Real estate loans 14,800.00 Bonds, Items, cash, Special collections 3,693.47 Additional assets covered 2,996.94

7. August 18, 1933 The Daily Herald Chicago, IL

Article Text

LIQUIDATION Greatly Reduces of Arlington Hts. ness State Bank The following statement of disincome the Arlington Heights State Bank, from date closing Aug. 1931, the of business June 1933, furnished by the receiver, Mr. Of special interest item and discounts paid, covering much tivity the part the bank's bank's debts. Only about of payable remain be paid, comparabout the bank closed. The present state of the real tate market causing delay the bank's assets cash. of estate been partly making cash with mortgagors. The slow and market taken over, does encash come fast might wished. account 100.00 Miscl. appointment 176.55 State Illinois, for closing bank Salaries date, Receiver's 553.86 Receivers snlary 5,316.66 expense 38.28 Clerk salary 3,190.00 Stenographer salary 1,786.00 Janitor 938.00 Bldg. Emp's. Publ. 219.22 Taxes Spec. Assts. (Bank 1,089.05 Messenger, Workmen's Surety Bonds (Rec. Empl.) 700.00 light and water 223.91 574.24 Telephone 182.44 Postage Box 71.00 Building Repairs 25.78 Stationery 110.75 Janitor supplies 4.52 90.00 Legal expense 702.14 Income expense 50.00 Auditors report 260.00 Interest, bills payable. rediscounts 6,340.96 Bils payable redis counts paid Miscl, expense 23.17 Advance, Stockholders suit 100.00 Special collections paid 2,585.64 Expense Bldgs. First Mtgs. default where income less than expense: Insurance 202.13 Taxes 182.66 Foreclosure 392.25 Cash on hand 1,413.45 $136,133.89 Income Interest received rents 925.46 Insurance and Mortgage renew. als 312.72 Insurance, bonds Interest coupons Notes loans 14,800.00 Bonds, Items, 30,822.32 Special 3,693.47 Additional assets covered 2,996.94 $136,133.89

8. May 18, 1934 The Daily Herald Chicago, IL

Article Text

Palatine Probably no other taxing body quite bad village Palatine. large part its money, both and special is ing held the satisfy of about $40,000 against the village. That municipality is deprived tax money that paid Chicago. large part the tax money paid local up the closed State Bank. large amount 1931 were issued and cured all 1931 tax money from the bank and the county treasurer, sufficient take up all the warrants. The picture" not bad. About 40 per of taxes paid the local collector turned the village, which retired all its 1932 warrants, using the balance to outstanding 1932 There about half of these unpaid, but the receipt additional outlook their tlement Following the policy of segregatfunds, 1933 bills not paid until the 1933 taxes received and the same applies 1934 bills. Water and other current the only means that has salaries. pay President Godknecht meeting the squarely but it is one. Palatine grade school has had battle, but there other districts which whole lot worse off One third of the 1932 tax rants paid; them are held for investment and accepted the interest. The only had cept months tax rants and still have months them. expectthat full them the the school year. warrants total about With $9,000 to its own credit in closed bank; the hands tax collector up the same in 1932 tax funds unable spend ing the Palatine school board, big As enough, the RFC holds of their time which given secure $13,000 loan and other time warrants paid until these taken The board unable up. secure offset their $13,000 loan the 1931 money in the closed bank. Various meetings have been held with bank receiver. county superintendent of schools, but no solution has yet been found The only bright ray the fact that all the 1932 bonds terest couvons have been paid. township treasurer segregating all funds. using bond money only that purpose Mr. has retained his own attorney vise him upon his rights. Arlington Heights The time warrants the Arlington Heights high school are listed among the highest in value of taxing body. Warrants the village Arlington Heights are close second. The policy limiting issuance of time warrants about fifty per cent of the tax levy practically assures the holder such warrants their early redemption. Outstanding 1932 warrants the high school village are each about $5,000. With the receipt tax money from the railroad, public utility companies. they probably be paid in full within the next few months. In commenting upon the warrant Arlington Heights Wednesday, an official stated, teachers schools have not suffered greatly by lack school funds. Our business men owners property shown fine spirit aiding them. While we still the red, there ery reason to believe that with careful economy and continued on the the public, taxing bodies the road to financial recovery." Arlington Heights park board has no defaulted bonds day There was few months lay the bonds due year, but they are paid and there are funds hand. funds both schools are segregated and there is borrowing "cheating" of the bond holders behalf favored crediThe bond fund share the 1932 tax be. money ing used 1932 interest pons the 1933 bonds must wait until collection those taxes. The holders of the bonds who sent letters threatenare now satisfied that with inauguration of business methin financial affairs of the two Arlington Heights schools, they are being fairly treated. Holders some accurities of previous years not such position, but efforts being made delinquent taxes give such holders some Among these closed lington Heights State Bank. which many thousands of 1929 rants. money that should have been used take such warrants used pay running expenses one of schools. Such things can not occur again.

9. May 18, 1934 Arlington Heights Herald Arlington Heights, IL

Article Text

IMPROVED ACCOUNTING METHODS PROTECT INTERESTS OF CREDITORS COLLECT 1933 TAXES IN DECEMBER At a conference Wednesday attended by the tax collectors of the suburban towns, announcement was made that the 1933 tax bills will be ready December 1 with the penalty date on the first installment January 1. The date when the second installment of the 1932 taxes can be paid can not be foretold as it will be necessary to refigure them all on account of the 15 per cent assessment reduction that was ordered by the courts. The early collection of 1933 taxes will be a great aid to taxing bodies and tend to stabilize the value of the warrants which are now in circulation. Palatine Probably no other taxing body is in quite so bad a situation as the village of Palatine. A large part of its tax money, both general taxes and special assessment is being held by the county treasurer to satisfy a claim of about $40,000 against the village. That municipality is deprived of all delinquent tax money that is paid in Chicago. A large part of the 1931 tax money that was paid to the local collector is tied up in the closed State Bank. A large amount of 1931 tax warrants were issued and even if the village secured all of its 1931 tax money from the bank and the county treasurer, it would not be sufficient to take up all of the warrants. The "1932 picture" is not so bad. About 40 per cent of the taxes were paid to the local collector and turned over to the village, which retired all of its 1932 tax warrants, using the balance to pay outstanding 1932 bills. There are still about half of these unpaid, but with the receipt of additional taxes the outlook for their settlement is promising. Following the policy of segregating funds, the 1933 bills can not be paid until the 1933 taxes are received and the same applies to 1934 bills. Water and other current receipts are the only means that the village has to pay salaries. President Godknecht is meeting the situation squarely but it is a baffling one. Arlington Heights The time warrants of the Arlington Heights high school are listed among the highest in value of any taxing body. Warrants of the village of Arlington Heights are a close second. The policy of limiting the issuance of time warrants to about fifty per cent of the tax levy practically assures the holder of such warrants their early redemption. Outstanding 1932 warrants of the high school and village are each about $5,000. With the receipt of tax money from the railroad, public utility companies etc., they can probably be paid in full within the next few months. In commenting upon the warrant situation in Arlington Heights Wednesday, an official stated, "the teachers of our schools have not suffered greatly by the lack of school funds. Our business men and owners of property have shown a fine spirit in aiding them. While we are still in the red, there is every reason to believe that with careful economy and continued cooperation on the part of the public, all of our taxing bodies are on the road to financial recovery." "The Arlington Heights park board has no defaulted bonds today. There was a few months delay in paying the bonds due this year, but they are now paid and there are funds on hand." All the funds of both schools are segregated and there is no borrowing or "cheating" of the bond holders in behalf of favored creditors or employees. The bond fund share of the 1932 tax money is being used to pay 1932 interest coupons and bonds but the 1933 bonds must wait until the collection of those taxes. The holders of the bonds who sent letters threatening suit are now satisfied that with the inauguration of business methods in the financial affairs of the two Arlington Heights schools, they are being fairly treated. Holders of some securities of previous years are not in such an advantageous position, but efforts are being made to use delinquent taxes to give such holders some relief. Among these is the closed Arlington Heights State Bank, which has many thousands of 1929 warrants. The money that should have been used to take up such warrants was used to pay running expenses of one of our schools. Such things can not occur again.

10. February 15, 1935 Arlington Heights Herald Arlington Heights, IL

Article Text

FIRST DIVIDEND OF ARLINGTON BANK ORDERED 5 Per Cent Being Paid Next Week; Bank Closed in 1931 The first disbursement from the Arlington Heights State bank since the institution closed in August, 1931, was announced during the past week by Edward J. Barrett, state auditor of public accounts. Dividend checks for 5 per cent will be in the mails by Wednesday for the bank's 1350 depositors. A total of $17,700 is being disbursed. Since the bank closed the receiver has concentrated on the paying of bills totaling $115,600, and the dividend now to be disbursed represents the first collections above the bills payable, according to the deputy receiver directly in charge of liquidating the bank. A cash reserve is also being held for the payment of preferred claims, the total of which has not yet been adjudged, but which is expected to be slightly more than $3,000. After these claims are paid it will be possible to distribute future collections to general creditors as rapidly as sufficient funds can be accumulated, says the receiver's office. A similar 5 per cent disbursement to the 1200 depositors in the First State Bank of Barrington was also approved by Mr. Barrett and will be mailed early next week. This dividend is being paid out of collections from assets and is not a part of an expected RFC loan which should be available within 60 or 90 days, says the receiver's notice of the payment. The bank is asking $80,000 from the RFC which should permit another dividend of 15 to 20 per cent. This present 5 per cent dividend is being paid in accordance with the plan of William L. O'Connell, receiver, to pay dividends as soon as the cash is on hand, states H. E. Robertson, deputy receiver. He adds that disbursements have not been possible sooner because $128,000 in bills of the Barrington bank incurred before closing had to be paid first. All preferred claims totalling approximately $3,000 are being paid at this time.