Article Text
Bank Receiver Named Springfield. III., June State Savings bank of Pontiac today appointfor the Claudin bank of Fairbury, Illinois an by the auditor of public accounts.
Claudon State Bank (Fairbury, IL)
Episode Information
- Episode UID
70056471530- Episode Type
- Suspension → Closure
- Bank Type
- state
- Bank ID
-
7005647routing - Routing Number
70-0564- Start Date
- June 16, 1927
- Location
- Fairbury, Illinois (40.747, -88.515)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
4c397a12a7d47e22
Response Measures
None
Description
Closure followed state auditor action and receiver appointment; bank later liquidated by receiver.
Events (3)
1.
June 16, 1927
Suspension
- Cause
- Government Action
- Cause Details
- State auditor took charge and the bank was closed by the state auditor/examiner.
- Newspaper Excerpt
- State Auditor Oscar Nelson taking charge of the bank on June 16, 1927
- Source
- newspapers
2.
June 18, 1927
Receivership
- Newspaper Excerpt
- RECEIVER NAMED ON CLAUDON BANK ... Assets to Be Liquidated by Illinois State Savings Bank of Pontiac. ... Illinois State Savings bank of Pontiac as receiver of the state office made further statement on condition of the bank's affairs and this will be known after the Pontiac bank officials have had time to go over the matter. (also: Bank Receiver Named Springfield. ... appoint for the Claudin bank of Fairbury, Illinois an by the auditor of public accounts.)
- Source
- newspapers
3.
April 24, 1928
Other
- Newspaper Excerpt
- the Illinois State Savings Bank Receiver will sell the estate Claudon State Bank ... on the 24th day of April ... premises above Main Street City Fairbury ... for the Receiver this sale
- Source
- newspapers
Newspaper Articles (16)
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RECEIVER NAMED ON CLAUDON BANK Assets to Be Liquidated by Illinois State Savings Bank of Pontiac. NO FURTHER REPORT Fairbury, June Affairs the Claudon State which has closed the turned Savings bank Pon. as receiver of the state office made further ment on condition the bank's and this will known the Pontiac officials over the the bank tors know just how much will be paid dollar. This action of naming the bank receiver came after and the found. anxious decision Efforts gather enough to reopen the bank avail and the receivership cided expected will affairs report to depositors time.
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FAIRBURY BANK IS TANGLE FOR NEW RECEIVERS Affairs of the Claudon State bank at Fairbury which has been closed several weeks following the death of A. B. Claudon, Jr., cashier, has been turned over to the Illinois State Savings Bank of Pontiac as Representatives of the state auditor's office made no further statement on condition of the bank's affairs and this will be known after the Pontiac bank officials have had time to go over the matter. Assets of the Fairbury bank will be Hqufdated and stockholders and deposttors will know just where they stand and how much will be paid on the dollar. This action of naming the Pontiac bank receiver came after weeks of deliberation and conferences in which some solution to the problem could be found. Depositors of the
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Livingston County Secured. The Illinois State Savings bank of this city receiver for the Claudon Bank Fairbury, Tuesday three judgments by in the circuit court, Harry Frye et al the of and $1,646.53 spectively one against Harry Frye in the of Immedwere awarded. Files Damage Claim. The Ceneral Railroad company filed in the circuit court against Kerrins, in which is seeking damages the of $500. The nature the action is not known.
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NOTICE DEPOSITORS OF BANK Officers the Illinois State SavBank, the Claudon State Bank, in Fairbury Wednesday afternoon, September 1927, offices the Claudon State Bank. Depositors urged to call, receive their cancelled checks file their claims. Those indebted Claudon State Bank urged to call and pay their indebtedness. c-9-9
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NOTICE TO DEPOSITORS OF CLAUDON STATE BANK Officers of the Illinois State Savings Bank, receiver for the Claudon State Bank, will be in Fairbury Wedneeday afternoon, September 14, 1927, the offices the Claudon State Bank. Depositors are urged to call, receive their cancelled checks and file their claims. Those who are indebted to the Claudon State Bank are also urged to call and pay their indebtedness. c-9-9 Blade want get results.
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NOTICE TO DEPOSITORS OF THE CLAUDON STATE BANK. Officers of the Illinois State Savings Bank, receiver for the Claudon State Bank, will be in Fairbury Wednesday afternoon, September 28, 1927, from to 5 o'clock, at the offices of the Claudon State Bank. Depositors are urged to call, received their cancelled checks and file their claims. Those who are indebted to the Claudon State Bank are also urged to call and pay their indebtedness.
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$2,000 Damages Asked in Accident at Pontiac Pontiac, Sept. liam Miller sued by Harry Carter for injuries when struck car driven Miller street asking $2,000 The suit filed the cirby Baker. by was the court Illinois for the Claudon State bank of Fairbury, against William Waters, another against William Waters. Another judgment by confession by the Commercial National bank against John of $311.35 Immediate executions Claudon, based notes has been filed by the Illinois State Savings bank. receiver of the Claudon state bank.
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Several Are Continued Leave Amend Original Claudon Bank Case. The October term of the Livingston circuit court opened PonTuesday morning and more ordinary interest because the that the cases connected with the failure of the Claudon State bank supposed to come this time. Several of the cases have been grantand one instance asked and granted right to amend their original bill. Among the continued was City of Fairbury Oscar funds deposit the Claudon bank when failed. time of defendants to plead extended Illinois State Savings bank, ceiver assumpsit. Time plead extended October People State Illinois of Herbert Powell guardian, Claudon and debt. Time to plead extendto October State Savings bank for the Claudon bank, Bessie Mosiman enforce bilities directors State Motion by Claudon, Bessie Mosiman M. Spence for tension time answer. Time tended October morning attorneys for Oscar Nelson, auditor public counts state seeking have bank dissolved, asked amend their original adding Robert Henning, defendant, which ministrator, Mr. Henning filed allowed. case. All entry appearance adult defendants the case not Wednesday morning were deswering defaulted. The court appointed guardian ad litem Thompson Dan Claudon, infant defendant. the of the court TuesAt opening forenoon Judge Baker namJames Lord circuit court bailiff. Lord replaces Eldon Shabeen court bailiff for fer, several past and who recently years resigned. Tuesday forenoon the time During Judge Baker taken examining There five applicants. Four the petition approved Agnes Ruggeri, of Odell, contirrued the next term court. their naturalization Those were: Baer, Fairbury, papers She Novem1890, Baden, Gerber 19, the United States many, Fanchi John Domenik, May Ocoya, born March at Teglio, United States Italy, came 1906. He also asked and February change that John Fanchi. EngePontiac, workborg Arnosen, She 25, came to the Stavenger, Norway, March, CarUnited States in Pontiac, truck farmer. melo Rodino, 20, 1888, Grecia, He to the United Superi, Italy, came States June 12, 1907. Local Man Jury Foreman. Circuit Clerk Tuesday afternoon Whitson called the members of the after they had been grand jury clerk, Judge Baker namthis city, the The judge then foreman their duties. instructed the jurors on with the state's Later they adjourned closed session. Daniels, Sunbury, member Roe excused before they of the jury, Judge Baker. in Lannon, member jury, failed respond Baker Bailiff call. Judge have Mr. Lannon James Lord 10 o'clock the following court show why he had not morning the vacancy Daniels and Dolde and Kemp, Pontiac, sworn members of the jury.
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Claudon Case in Court Nelson Claudon, well known dent of the Claudon State bank, now the hands receiver, Fairbury about 3:30 Thursday by Sheriff The arrest of Mr. Claudon the result investigation of affairs of Claudon State which had under for the several days by the October past jury, which completed its grand and earlier the day. Two Charges. This grand among other returned drew and jointly. The first them deposits in the Claudreceiving State after other with conspiracy. Claudon president of Claudon State bank and Nelson Claudon was time closed by the state audiwas May. When indictments were returnThursday afternoon they were capiases were issued out pressed the circuit court for their immedarrest returned to Sheriff Scarratt with to have the two court Friday morning o'clock. court set bonds each of Spent Night in The sheriff capias upon Nelson about Thursday afternoon. An attempt made secure his bond before Fairbury with the sheriff, but successful Sheriff not Scarratt arrived Pontiac about o'clock. Mr. Claudon spent the night the county jail and Sheriff Scarbefore Judge Baker when court opened o'clock. Appears Court. With Marie Claudon, Spence, Bessie MosiFairbury, Chicago, and With ClaudFairbury. attorneys, Gillespie William Bach, Hester, Colfax, and Gibbons, Mr. Claudon was called before the and case called the court. Attoney Gillespie, Bloomington, acted spokesman for the battery legal talent. Judge Baker informthe defendant of the amount bond asked him he was ready bond. Mr. Gillespie stated that give ready and presented Claudon. E. Faragher, Forrest; Neuhauser, Gridley, and Mosiman, Chicago. Bondsmen Each of the was placed upon witness stand turn their financial standing. stated that bachelor and that owned farm land northeast Forrest, Forrest and Charlotte townships, val$150 that He stated also owned 160 acres lang in Wright Iowa, which clear and that he further owned dence property in Forrest, which Claudon when placed upon the witness stand, merely testified her Mr. Claudon her dower interest in his erty. Gridley Resident. that he resided had third interest in acres farm land about three four miles northLexington, McLean county, valued $200 encumbered the amount $100 He also stated that owned dence Gridley valued at cumbered the amount $3,000; other personal property in Mosiman testified that she the present time residing the sister of the cago; defendant, Nelson Claudon, and that owned acres Spring Lake Tazewell Illinois, and that unencounty, cumbered. Sureties Approved. State's Neil Kerr stated he had no objections enter the sureties the court entered order approving the sureties, and each of them, the Eludes Service. Judge Baker then that why the against Andrew should suppressed longer, every effort had been made locate him. reported to have been absent from Fairbury ever since shortly after the bank closed by the state auditor Some reports have that been back there two occaswarrant for his arrest issued and placed the hands of Sheriff made every effort locate him without success. Judge Baker recited this latter fact ordered the dictments against the two men made Attend Regional Meeting Peoria. of the FederaWoman's Clubs, which includthe 16th 17th congressional held club building in Tuesday. was the of the officers and leaders. State Mrs. Dr. Sadler, Chicago, Mrs. Hanna other leaders present. Each county the two districts repreRobert Henning resented on the subject, Other officers from the Fairbury Mrs. Anderson, Emma DuBois, Welch, Leonard, Mrs. Agard, Mrs. C. dum. District Meeting of Federated Clubs. Normal club hostess the Federated Woman's clubs district their fall held at Normal meeting Thursday, October 20. This promises very worthwhile meeting and every the Fairbury club should to attend. District Joe Major, of Eureka, will side. Arrangements for transportation charge of Mrs. Stuckey committee. Woman's Club Dept. Meetings. Literature visit the Morton Mrs. Lizzie pottery Herzog and Irma Waggoner have charge the arrangements. The Business and Professional have 6:30 supper the library Tuesday. Sunday o'clock home of Mr. and Mrs. Jay dick, the Miss Avoca, Moore and their Ernest Foedick, by the Duck. The ceremony performed fore an altar flowers erected the midst pretty representing The bride wore white with veil. The canton crepe flower Bradley, white frock carried bride's bouquet roses. march played by Miss Fern ding was Bradley. Following the ceremony wedding dinner served to fifty of the closfriends. Fosdick the only daughter Edward Moore, of Rensselaer, Ind., when small girl resided and very with parents. and Mrs. Fosdick departed Monday for Rensselaer, where they live, Fosdick being ployed creamery there. Guests from Mr. and away Mrs. James Moore, Mr. Oscar Lehman, Mrs. William Devore family, of Colfax. Browning Club. "Nights and Days the Gypsy Trail, study topic for Monday with Mrs. mer Baily, made istic when the hostess for occasion. told the Haag, of the wore the bright ation hued that tribe. Jones talked of Lure of Music" and Mrs. HarGypsy Gypsy Trail." sang The hostess served luncheon after the program. For California Relatives. Saathoff daughter, Mrs. Gertrude Lynn, of Calif., have been guests Mrs. Saatthe week. entertained at dinner for them following guests: and Mrs. Jacob Martens, Anchor. and John Hadaway, Colfax; and Mrs. John Harms, Forrest; Mrs. Ben Schlicher, of north of Mr. Saathoff went to California few ago four years near paying $10,the worth still holdseveral good ones. He years Birthday. Rutherford Downes very pleasantly surprised at home sister, Mrs. Edward Metz, last Satby about fifty of urday evening friends, helped him celebrate birthday, which occurred October enjoyable evenspent with music games, followed by weiner roast Wednesday afternoon the Pontiac, the Rev. parsonage Thompson united marriage, Margaret Williams, of this city, and Leslie Krohn. The witnesses by ceremony their Mrs. Oscar Williams mothers, Mrs. Paul Krohn. employ of the Mr. Krohn Railroad at Forrest. company Inter Mrs. Goslin hostess Nos its Monday study meeting. The was given: 'Farming the England Mrs. Songs That Mrs. Bradshaw. old time songs group sung in closing. Queen Esther. Miss Ella Yoder with Miss Lillie Slocombe Mrs. John Wagenseller assisting, entertained Senior Queen Esther society Monday ing its study social meeting first of the fall meetings. Dinner Indictment Mr. and Mrs. Meharry, returned Elm street, entertained dinner
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Published by The Blade Publishing Co. PATTERSON, Editor CORA EVANS L. HARRIS FRANK PHELPS Entered as second class matter the postFairbury, Illinois, every Friday under the of March 8, 1879. N. J. CLAUDON GIVES NEW BOND FOR HIS APPEARANCE (Continued from Page 1) plainants' bill, whether the allegations are true, and he has no information or belief concerning and prays strict proof of each and every allegation. Paragraphs 1, 2, 3, 6, 9, and 10 refer to the organization of the Claudon State bank under the Illinois law, its capital stock and surplus, its purpose of doing a general banking business, of State Auditor Oscar Nelson taking charge of the bank on June 16, 1927, of the state auditor's action against the bank in the circuit court and the taking over of the bank by the Illinois State Savings bank as receiver. Mr. Henning also says in his demurrer that the estate of A. B. Claudon, Jr., is insolvent and if any sum or sums shall be found to be due the complainant on final decree, it can only have the statue of a sixth class claim against the estate and be payable pro rata in due course of administration. All the other defendants in the above case not answering in court on Monday were declared defaulted. Date for Filing Claims. Creditors of the Claudon State bank of Fairbury will have until the first day of the May term, 1928, in which to present claims against the bank. Judge S. R. Baker Tuesday morning entered such an order in the case of Oscar Nelson, auditor of public accounts of the state of Illinois, vs. the Claudon State bank, bill to confirm the appointment of a receiver and dis- MARKETS. (Corrected Thursday, Oct. 20, 1927.) Corn, yellow, No. 8 Corn, white, No. 3 .72 Oats, new, No. 3 .41 Wheat, No. 2 1.11 Eggs, fresh solve a state bank, filed some time ago in the circuit court. The order was entered at the suggestion of Attorney C. A. Burns, who is representing the receiver in this case. Referred to Master. In the case of the Illinois State Savings bank, a banking corporation, as receiver for the Claudon State bank, vs. John Fendrick et al., foreclosure, all defendants were declared defaulted Tuesday morning. The matter was then referred to the master for evidence and conclusion. In the case of the Illinois State Savings bank, receiver for the Claudon State bank, VS. Rex L. Williams, et al., foreclosure, all the defendants were declared defaulted. Suit for Damages. L. F. Pratt has filed a suit in the circuit court against A. B. Claudon, whose whereabouts have been unknown since the closing of the Claudon State bank here last spring by the state auditor. Mr. Pratt is asking damages in the amount of $3,000. Papers filed in the action last Friday indicate that on June 26, 1922, Mr. Pratt deposited in the bank of A. B. Claudon, of Fairbury, as the bank was known before it became the Claudon State bank, the sum of $1,800 being interest at the rate of 4 per cent per annum. The money was still on deposit in the bank when it was closed by the state auditor. Appears for A. B. Claudon. In the case of L. F. Pratt VS. A. B. Claudon, Sr., for damages, the written entry of appearance of the defendant, A. B. Claudon, Sr., was made by A. M. Hester, his attorney. A rule was entered calling upon the defendant to plead in ten days. HAPPENINGS IN LOCAL CLUB AND SOCIAL CIRCLES (Continued from Page 1) Wednesday. There were nineteen members and six guests present. Miss Fetzer's cousin, Miss Scopp, Springfield, was the only out-of-town guest. For roll call each member named something she did that was a practice of economy. Progressive euchre, played after the program, was won by Gladys Wessels. Miss Scopp made the low score. Birthday Dinner. Mrs. Harold Ringler entertained the following guests at dinner Sunday for her husband in celebration of his birthday: Mr. and Mrs. Gus Ringler, Miss Myrtle and Frank Ringler, Mr. and Mrs. Joe Kuntz, Jr., and daughter, of Cropsey; Mr. and Mrs. John Sheppelman and daughters, of Gibson City; Mr. and Mrs. William Benway and son, Mr. and Mrs. Frank Kuntz, Mr. and Mrs. Joe Kuntz, Sr., Mr. and Mrs. E. N. Gullberg and daughters, of Strawn; and Mr. and Mrs. John Eddy. Art Club. The Art of Paper Making will be explained by Miss Eleanor Cumpston and Mrs. Floy Cumpston at the meeting tomorrow afternoon with Miss Cumpston. Auxiliary Tea. There were twenty-four tables of bridge, 500 and euchre at the American Legion tea last Thursday evening. Mrs. Frank Herr, of Chatsworth, Mrs. 0. A. Shanks and Mrs. C. W. Veatch won prizes in bridge; Mrs. H. J. Ramsey and Mrs. Vivian Metz in 500; Miss McGreal was first in euchre. The next tea will be in charge of Mrs. R. N. Kelso. Hopewell Class Party. Mrs. E. Hauser, 508 S. Fifth street, with Mrs. C. B. Moore, Mrs. Robert Mack, Mrs. John Pittman and Mrs. Roy Goold assisting, entertained the Hopewell class of the M. E. Sunday school at a social afternoon and luncheon Wednesday. When the roll was called each member answered by naming a favorite song Attend W. R. C. Convention. The Woman's Relief Corps of the 17th district convened in Bloomington Wednesday. The Fairbury corps was represented by Mrs. W. J. Stuckey, who was also elected district vice president; Mrs. Benjamin Eppstein, district guard; Mrs. Ruth Carter and Mrs. I. S. Carter. C. L. S. C. The C. L. S. C. met with Miss Olive McKee Monday afternoon. Miss Armstrong and Mrs. Perlee had as their subject "Occupational Progress of American Women.' Mrs. Churchill, Mrs. Jennie McDowell, Mrs. J. W. McDowell, Mrs. Bartlett and Mrs. Henderson gave interesting sketches. Eastern Star Meeting. Stated meeting of Fairbury chapter, No. 198, O. E. S., Tuesday evening, October 25, Masonic Temple, beginning promptly at 7:30. There will be initiation and a social hour.-Ruth Bell, Secretary. Philomethians Take Trip. Fifteen members of the Philomethian club took their dinners with them and went over to Sheldon, Monday, and spent the day with their out-oftown member, Mrs. L. E. Dirks. Bridge Club Dinner. Mrs. C. A. Purdum entertained Fortnightly Tuesday evening at dinner, with bridge following. Announcements. The W. F. M. society of the M. E. church will meet with Mrs. G. H. Bennett, 410 S. Third street, Thursday, October 27, with Mrs. Lucy Foreman, Mrs. A. A. Meeker and Mrs. W. R. Bane assisting hostesses. Roll call, "Why I am a member of the W. F. M. society. Lesson, first chapter in textbook, Mrs. S. Carter. Devotions, Mrs. J. P. Mitten. Mystery box, Mrs. C. B. Moore. The Presbyterian Missionary society will hold an open meeting at the church Monday evening. An invitation has been extended to the societies of Forrest, Piper City, Chenoa and the local churches of all denominations. The Baptist Mission Circle will meet with Mrs. Wilson Morris Thursday afternoon. Inter Nos club will meet with Mrs. C. W. Griggs, Monday.
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Fairbury Bank Case Report Is Filed at Pontiac. In the circuit court at Pontiac, Judge Ray Sesler, special master in the case of Oscar Nelson, auditor of public accounts of the state of Illinois, vs. the Claudon State Bank, a bill filed to confirm the appointment of a receiver and dissolve a state bank, presented his report of evidence and conclusions in the case. The document is a voluminous affair containing many typewritten pages which goes carefully and thoroughly into the affairs of the bank previous to the time it was closed and after. In his conclusions Judge Sesler that a decree be entered finding the Claudon State bank to be insolvent as of May 6, 1927, and said bank be dissolved and that the appointment of the Illinois State Savings Bank as receiver be confirmed. He further recommends that the action of the re-
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CLAUDON NOT GUILTY RECEIVING DEPOSITS AFTER BANK'S INSOLVENCY Verdict Was Returned by Jury This Morning After Being Out All Before Verdict Was Reached. Pontiac, February (Special to retired at and remained out all in verdict of not at the convening of guilty this morning. There is nothing known as stood on the guilt or innocence of the took six ballots, finally argument clusion that the defendant had no actual of the insolvency. Following the story of the trial: Fulton) The trial Nelson Claudon, receiving deposits the Claudon State bank the bank insolvent while was vice president director that institution, opened before Judge SteBaker in circuit court at Pontiac Monday. Monday occupied securing jurors close court the evening seven had been by both sides. Tuesday morning the remaining five had been the hope of State's Attorney Neil have both the fendants, Claudon Claudon, Claudon, the of the after the closed its doors last 6th the sheriff has been unable him to this time. The selected decide the of the defendant, under the the following: Kingdon, Cullom. Streator. Gallus Edmonds, Dwight. Flanagan. Theodore Gutell, Odell. James Mackinson, Cullom. John Jacobson, Esmen. Lynch, Strawn. Jeyte, Cullom. Edward Strawn. Walter Eddy, Newtown. Miles Garretson, State's Attorney made brief, the jury opening the trial He told them the Bank of Claudon state bank 1920, the lowing officers: Claudon, president; vice dent; cashier, they with Mosiman That the bank 6th permaThat on that Samuel Geedy made of That then That Geedy owed the That the Irvin Raby, Mr. Geedy's store, and by Charles Veatch Claudon. That the state that while Claudon had not been working the bank he officer after Claudon, took charge of the bank, negotiated for very acttrying raise money and called the bank family the best thing That the bank them either close. That they did and That the open off May and May 1927, its doors were closed Kerr defined the law and penalties. He that the would show Claudon, the defendant, checked the and accounts took active part the affairs the during the last of any with the affairs could not that the Claudon State bank was that time. McGrath, of Peoria, made the for the He said for thirty years "Old Man Claudon" bank in Fairbury. That boy worked that bank; 1912 the bank; 1920 Man Claudon" pelled the state laws to turn his bank into state bank; not one children interest that In Claudon told he stockholder bank and was the vice president. That Claudon had the bank; his brother were friendly terms and that Jay had more of the bank than any man on the That he by that lieved bank all right. prove that Jay the board directors his old father he took the vice show the the failure was worth forged That Jay Claudon the montried effect his poor old father. That Claudon done that he would blush for. That the penny the day McGrath Geedy had put in Going want the state show what this trial make goat for the for the Claudon State bank, the first ness. His testimony with the assets liabilities the bank, the amounts collected, the notes he lection. He the liabilities the were Of the personal notes had lected there were some hopes the neighborhood would and only part that might the unpaid notes were then listed evidence. Coming account of Samuel Geedy said the books that May Geedy his personal account $1,276.87 his account. He had deposited $256.36 that day. Cross testified there were $38,000 in known forgeries and there for those notes were worthless spur the moment. That would or five days unearth them. Samuel Geedy, complainant indictment, next witness. carried accounts Claudon State bank; his bookkeeper deposit for him May he been indebted Claudon State bank. He presented his book which was deposit made May Said claim with the receiver for accounts. Irvin Rabe the next witness. Said he had lived in Fairbury for years. by Samuel Geedy the Model ager. That 1927, he made deposit account the $256.36, deposit made before time for closing the bank; that Claudon him make the deposit with Veatch, the assistant that both Claudon the time day him. On cross Claudon there, the books. did not take his had him there before; him take posits. Claudon sitting the first when he him. Made deposit in the bank nearly every Had Jay the bank several times, did not know just Northrup, of Bloomington, state called. Said bank eight Had the Claudon State bank since it ganized. 1926. from on May come to He they had conference the Claudon, those being Claudon, Gerber, Charles Heins, Mrs. Claudon: the fact that bank been for day them that would either close the bank open bank would money opened. He did know how money in the bank. Sr., said he would meet and that Received another Jay come to Fairbury Met Joseph Gerber Claudon and had conference; talked of nothing was Jay he to Mr. Geragain Claudon State bank Herbert Powell, Joseph Gerber Claudon talked along the line but could reach The the bank that evening and decided the bank over the charge made schedule he had with He classified the notes, markthem good, and good. this he of Claudon. Did the bank until after five work. Had no way what notes were good cross examination Mr. Northrup said he days after he took That hard the forged paper all in That when Claudon had touch him Urbana wanted advice what should be done; Bert any the family leading think bank The question of the City of Fairbury funds to the $50,000 owing the change city had agreed not withdraw the after Bert Claudon got well. Claudon to borrow meet this man and Bert being sick for the bank the State Nothing the that the of the by Mr. Gerber bank would the Claudon State bank meet the emergency the City funds, they had proper The the the of the bank was put list of the stockholders of the bank was in dence the state marked exhibit showed shares Claudon, president; 10 owned vice shares to cashier; M. Spence and shares to Bessie Herbert Powell the next that he knew with him to the Claudon State bank. He called the consultation by Joseph Gerber gard the banks liabilities the ClaudState bank. Jay stated State would furnish Told we be but first must the absorbing Claudon State bank. Asked if their reserve unimpaired, that thing must examiner the bank must not closed. Told Jay to get touch with Northrup come after not to alarf the people. Asked him if people were making posits. said some. Advised take deposits hand them after four o'clock. Met Mr. Heins, Mr. Mrs. Mosiman, Spence, Claudon, in evening. whether either both banks would over the Claudon State bank. Would do until knew condition Claudon State That May Placed Claudon bank dollars. witness, testiSpence, Veatch. affairs Claudon State Northrup funds. Told think take bank over. They asked them would furnish they had notes security. father and have time care bank. Thursday, after dinwanted know thought taking over would unless the bank would with Called Powell wanted check the assets liabilities. Northsaid to expose assets liabilities. James witness. Said ran opposite bank. banking business with the State making deposits bank quently. him May made deposit. Charles Veatch took Jay back of talking his father. Sutter witness. Employed State bank ographer. back of the times Saw there talking there Friday going papers. her let know they wanted her McGrath: runs the Bert At this Mr. Grath stormy had called judge. Mary Testiworked Claudon. Made the deposits Mr. Melvin took Made up the deposit checks the $700 and deposit Mr. Melvin later and did the him Melvin had taken to the bank. want there. When Mr. came asked about said not done Found deposit the amount deposit in money the safe next Andrew testified Jay employed the Bank Claudfrom Ray Melvin testified worked for Claudon 1927, That deposit of $700 the bank that date. came about what with told him had He said there. go Next money the with the Always the he was sistant the Claudon State bank May That received the posit from Melvin and that back Georgiana Brown testified that time prior and until closing May by the Claudon State bank. Told That May Jay behind the cage the bank confiding his father regard On May the bank when she father. Jay went the back with the of the books. Claudon the back room; Later she asked them if the bank
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Blade Fairbury Published by The Blade Publishing Co. PATTERSON, CORA EVANS HARRIS FRANK MARKETS. (Corrected Thursday, Feb. 1928.) Corn, yellow, No. Corn, white, No. .75 Corn, new, white, No. .72 Corn, new, yellow, No. Oats, new, No. .50 Wheat, No. 1.16 Eggs, fresh .30 an honest, upright, peace lóving man, man his fellow men and one among who had endeared himself to all with whom he came contact. Always active every movement for the good of the faithful, tireless in the orders which he belonged, especially in bodies and Eastern Star, which he was affiliated and held the various offices until year or when his health failed and ago, no longer William Overton was born in Bran England, June 1835, from this life January 26, 1928, at the age of 92 years, months 13 days. He was married in England 1864, and moved America where he engaged farming this and reared family four sons and his three all of whom his having preceded him in him, wife several years ago. The deceased death was united with the and was faithful church years ago long as he was able to attendant as The funeral services were held at the church on Sunday with Lodge No. 614, and charge, and A. the Knight Templar and corted Royal Arch bodies of Fairbury, which the deceased was member The large throng friends which and the beautiful florattested the esteem "Uncle held, and which the and forceful sermon delivered by the local Congregational minister, Rev. M. Buran, splenof splendid life, and did eulogy final word said there can when the epitaph than this: more fitting "He was man. Basketball. Johnson's Swedes added three more their during the victories to string past when they defeated the Moguls at Piper City last City Thursday the decisive score of to and the Saunemin by of 28 to 15 at Saunemin score last night, and then climaxSaturday week victory over the Fairbury Alumni team at the high school auditorium of 43 to 35, after fast by the score and furious battle which was nearly defeat in the last half turned to spurt of basketball by the great visitors. The great basket shooting of Wendel and Stewart and Bergan, the classy, steady guarding of Capt. were the outstanding lights Austman of the Forrest team while the allwork Albeck, Carter and around Mohar for Fairbury were par excelReferee Jack Keeley handled the lent. in shape and the crowd game thoroughly satisfied that went away they had witnessed real, from start to finish. goodness game The between Brownie's Colts and the Pleasant Ridge Stars whale of and credit game Louie and Oliver for their must go to exhibition while dashing in class by itself. The guarding was from Pleasant Ridge were too boys however, and emerged victormuch, of 18 to 10. The ious by official score the is as follows: game FairburySteidinger, N. CLAUDON NOT GUILTY RECEIVING DEPOSITS AFTER BANK'S INSOLVENCY (Continued from Page 1) all right and A. answered "absolutely. o'clock Jay was sitting at the desk of and little while after called Bloomington on the telephone. The state rested its case. Bessie Mosiman was the first witcalled by the defense. She testified she was sister Nelson Claudon and daughter of Claudon, Sr. She had been employed in the bank until two ago assistant cashier. That Claudon, had charge of all loans. That had no control of the bank. The records show he owned ten shares. There were ten shares her name. She had never attended but one direcmeeting. Was not present when elected director Was home May 1927; went with Jay to find Northrup. The was about Bert being very ill. The positors the bank were calling for funds. Asked Northrup to come and see what should be done. He came Thursday evening. Had meeting and all present asked him what was the best thing to He thought best open the bank but said he would call his superior and advise not She said her brothers, Jay and Bert, were not congenial. She never took part in the of the bank did not help to draft the Bert sent the bank statements to her to sign she objected signing them but Bert said would be all right and help her father Claudon, defendant, testified. Aged 44. Farm and sell Ford care Farmed since Employed in the Bank of A. B. Claudon. Worked the bank from boyhood until about 1911, bill clerk and bookkeeper. Nevbeen employed in the Claudon State bank. Have never performed any duty in that bank since 1911. Never advised with father or other person in regard to the affairs of the bank until brother got Never took any part in the election of officers; did not know when he was elected vice president or director; signed papers at the request of his father; never attended meeting of directors until brother was taken ill; attended one meeting on evening May when Northrup was there. Had no knowledge that the bank was insolvent; learned it was insolvent May from Northrup. Had no knowledge of the affairs of his brother and thought was all right. Brother was taken ill and he was called from Forrest farm. Went bank; father told him Bert was asleep and could not be awakened. Went to Bert's house. Conferred with his mother and called Dr. Told what was done to resuscitate Bert. That evening went to bank and saw father and Charles Veatch; advised calling bank examiner. Mr. Veatch said there was nothing wrong with the bank. B. Claudon and Veatch overruled him in that. He then asked for the note and spent half hour looking over notes. Thought they were good notes. That was the only time saw these notes. Went to Bert's house and spent most eventhere. Family had talk with father on Wednesday evening when Mrs. Mosiman came down from Chicago. Meeting was held at father's house. He advised getting bank aminer. His sister, Mrs. Spence, did not think would be fair to Bert. Next morning his sister, Mrs. Mosiman, it would be best get Mr. Northrup. Called Northrup and later Thursday Mrs. Mosiman and he, Jay, met Northrup in Urbana. Explained situation of withdrawal of city funds and asked him what was the right thing Northrup said far he was concerned that bank perfectly solvent and don't think the right time for me to Fairbury You go back to Fairbury and tell him to open the bank and want me will come once. Opened bank and later called Northrup and had family meeting of the directors. talked over Northrup advised calling Mr. Gerber and Mr. Heins. Talked of consolidation and Northrup advised putting Bert at head consolidated bank. Mr. Veatch was worried about the proposed withdrawal of the city money. Gerber offered to let them have $10,000 in the morning if they needed the The bank opened the next day. Father and Charles Veatch opened bank. was there but had no authority to open bank. Went to Gerber next day and he said they could take over part the bank but not all. Would rather have Mr. Powell in with them. Regarding deposit made by Melvin. Owing to the fact that the bank had been closed and had been insisting on examiner knew the bank would probably be closed and needed the money for the pay roll. Talked Melvin and told him they were going to call examiner. Went down the bank and asked Veatch for the monVeatch demurred but gave him the money and deposit slip talking with strangers at garage told them he was president and brother of Bert Claudon, Never received any salary or dividends from the bank; never paid anything for the stock and never saw certificate. Northrup told him that as he was director he had better make arrangements for his paper with some other bank. Had paid indebtedness to bank to Mr. Greenebaum. Never had anything to with any loans and never was in regard to loans. Never regard any of the affairs of the bank. with brother Bert were strained. notified of but one directors meeting Never saw but one book of the minutes of the meeting the Claudon State bank. One evening about week after bank closed Northrup informed chance had Jay Claudon of finding them. He went to Northrup and the bankers for advice, not to borrow money. Two days before the bank closed A. B. Claudon went down in his own private pocket and took $25,000 and put in the bank. Did that show that he thought the bank insolvent They picked out Jay Claudon to indict to satisfy wolves who are parking over there (in Fairbury) who had lost money in bank. Mr. McGrath for the defense. You have the power to destroy human or you have the power to vindicate him for life. Said that Helen Sutter told an untruth when she said that Jay Claudon helped run the bank, that Miss Brown was untruthful in her testimony. We are going to try this case upon the evidence. challenge Brother Kerr to show any evidence to convict this man. They want to convict the defendant because his name Claudon. A name that for years was highly respected name. Why did they not indict Mr. Veatch? He took the deposit and had access the notes and knows about them. could have made stronger case against Mr. Veatch than against Jay Claudon. Charley Veatch should not have been indicted because Bert Claudon was the only one that knew about the condition the bank. The defendant one Claudon that has never cost the citizens of that community single He said that Northpenny. dodged on the witness stand, that rup he was yellow. That Jay Claudon told the truth. It was the bank examiner's fault more than Claudon's that he did not know the bank was insolvent. State's Attorney Kerr closed for the state. He said in opening that if the case depended upon oratory, upon physical contortions and tears the defense would win. If it defended upon facts and law the state would win. Said that where bank cannot meet its obligations it insolvent. The city treasuryship changed hands and there was demand on the Claudon State bank for $55,000 and they could not meet the demand. The bank right then insolvent. Attorney McGrath asked why did not have Veatch indicted. Charley Veatch had nothing to do with that bank. The old man, Bert and Jay Claudon ran that bank. Jay Claudon swore this morning that he knew nothing, ownstock or being director; that never attended any meetings the board of directors or advised with them he was through and the bank was all right. Cross examination. Have had several different businesses, farmer, trader and dealer in cars. Never advised with his father or Bert. Never reKnew nothing the organization of bank state bank. Was notified he was elected vice president. Never signed oath. He did sign the paper papers but not under oath. Denied signed papers under oath. any When they asked me to sign papers signed them but did not know what was in them. When Bert was on his back did everything could to help my father. feeling that thing Doctors told him wrong. brother had got hold of some poison. Thought examiner should advise them. Mr. Powell and Mr. Gerber advised getting examiner. Mr. Powell might have him not to accept deposits. Miss Sutter and Miss Brown wrong about him going over the books. Never was the back room with his father. Was in bank May Charles Veatch was anxious for closing time to come because he feared run. He was around the bank from to Then called bank examiner Were you ting in the bank at the time the Geedy deposit was made? don't know felt like the bank might be closed. Made no statement Mr. Geedy's clerk. Took my own money out, yes, telling the help we would call them if we needed them. Wednesday morning Mr. Veatch said this must be raised and city money said it in the neigh borhood of $55,000. Q. That was other reason you wanted to call Northrup some paper in the bank. The names on the bank notes were familiar me. De-direct. Northrup said bank cannot stay closed account sick ness. Talked with father about newal of his own notes in the rear the bank. Never talked room the affairs of the bank with H. made Attorney opening statement for the state. He said part: You have serious duty to form. serious duty to the defendant and serious the state. duty decide according to the your facts in will read you case. from the statute the law in regard to this Briefly no banker, broker case. officer of the bank shall receive funds after the bank insolvent. The first element is banking corporation. There was in the of Fairbury Claudon State bank. It family bank, the stock being owned defendant and other members the family. The next thing is the fact of defendant being an cer. All papers introduced show the defendant an officer of that bank. The defendant may claim he knew nothing about but he signed the papers. The officers had to stock qualify. It is the people's contention that the Claudon family had Phone money to do business with. The law was made to protect depositors from fraudulent bankers. The next element to prove that deposit was made think this has been proven beyond shadow of doubt and FOR SALE Claudon was there but made no jection to receiving the deposit. We FOR wheat white barley come to points that are the issue this case. The first is the question FOR insolvency The first thing Jay wanted to do was to send for the bank FOR SALE Two coming aminer. They sent for other bankThey talked the $55,000 wanted FOR Zenith Radio, complete the city of Fairbury. They Joseph Gerber to take the bank over. battery. He would not do it because their $150. Will take low and his bank might Porterfield, Chatsworth, serves were be pulled down with them. They DINING ROOM talked to Northrup and he told them they were solvent to open up SORREL they were not solvent to close. They for women opened next day. They took deposits. Lewis. operating that bank Was was that FOR touring, 1924 model, not Claudon, the man negotiated for mergers, asked for loans, called the bank examiner and prac- cabinet tically took charge of the affairs FRESH COUNTRY LARD FOR SALE the bank Herbert Powell told them Phone 3S-017. put their hands above the table. that Herbert Powell wanted Buckeye meant Leghorn to see the notes securities and they refused. Whenever bank Hays, Fairbury, c-2-3 fuses to meet its demands FOR SALE OR house 411 solvent. They had $11,000 in the bank and there the the city was Smith, *-2-10 of Fairbury for They could They tried BAY MARE FOR Louis not do with to Fairbury, Rt. shift the upon the state auditor They tried shift the SWEET CLOVER SEED-FOR sponsibility Herbert Powell and Huber. upon Gerber They point to the Joseph FOR PIGS. Emil Herberich, They try shift the forgeries. sponsibility upon that poor dead boy who took poison but Mr. Greenebaum FOR RENT says there was notes withsecurity outside the FOR 409 E. forgeries. was the duty of street. Inquire Blade. Claudon know condition of the FOR house, lights and water. bank. Claudon went the Inquire at 2nd bank after closing hours and took money out that had been deposited WANTED that day, March Jay Claudon any better than poor old honest Sam SALESMAN WANTED to solicit orders for Geedy From the first day of Bert's lubricating Address THE HARVEY illness N. Claudon wanted to get CO., *-2-3 the bank examiner. Why? Did he know there something wrong Girl for general housework. with the bank? What made him want Schnetzler. bank examiner? MISCELLANEOUS Plea for defendant by Attorney A. Gibbons. This the first time WOOD TO have been called upon to defend brush. Frank Phone charged with crime committed by someone We are not asking for sympathy We lay our cards the table face up and want you to decide. Only two points left for you consider. Was the bank and did Jay Claudon know it was inThere no that has been introduced that shows that had anything to do with the affairs of that bank. He had right assume that there was something wrong the bank when his brother attempted take his own life. Mr. Northrup, the bank examiner had examined the bank but did not find the those forged notes. How much less them on loans. Here is certificate for 10 shares of stock made out Claudon and found by Greenebaum with the other shareholders' certificates the bank. Here are the minutes the meetings board directors of the bank showing Claudon as being present many times at these when loans were passed upon by directors. that evidence doesn't prove Jay Claudon to be liar don't know what liar As soon Bert took sick Jay jumped into the harness and proceded to run the bank. Instead of telling Mr. Geedy's manager not to put money in the bank any watched him make the deposit and then when he found his manager had made deposit he went down to the bank after hour and made Mr. Veatch give him his money back. It the duty of the jury to the people the state of Illinois to find the defendant guilty.
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PUBLIC SALE NOTICE. State the of Circuit Illinois, Court, January Term, D. Auditor of Public Oscar Nelson, as Claudon State Bank, al. that the Illinois NOTICE hereby State Savings Bank Receiver the will sell the State estate Claudon Ninety State Bank and Feet West Half Eight Block Twenty-three situatthe County City Livingston and fixtures, State Illinois, together with therein located. consisting supplies bank counter, vault safety deposit bookkeeping adding cancellation machine, and other furniture, fixtures Claudon State Bank at said building, 24th day on the April at described, 2:00 o'clock situated M. the premises above Main Streets City Fairbury, County of Livingston and Illinois. and fittings and other fixtvault will sold separate apart from said property will sold cash the bidder. Reference made the Decree the Court cause the 28th day above January, D. 1928, for Receiver this sale and all the make acts the are ILLINOIS STATE BANK. Charles Stephens, Receiver. Auctioneer. Greenebaum Burns, Attorneys.
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High School Notes School closed at noon on Wednesday for the annual Thanksgiving vacation. School will resume on Monday morning. The high school band did not practice Wednesday evening of this week. So many of the students could not attend that it was deemed advisable to discontinue the practice for this week. The egg-laying project which is being conducted by the class in animal husbandry is proving to be quite success. They have arranged to keep lights in the hen house during part the evening. The boys retained 36 hens selected from the baby chick project and are getting more than 20 eggs per day at the present time. This week closes the third month of the school year and reports will be given to the students about Wednesday of next week. Parents are requested to examine these reports with care. Each pupil will be given a report so that the parents may have an opportunity to see the record made by their boy or girl in the high school. The school maintains cafeteria service during the winter months. The students are served hot drink and hot dish at cost. It is not full meal but is intended to furnish the student with something warm for his noon lunch during the cold weather. This service will be maintained until March 1st or later. The basketball season is almost upon us. More high school people like to participate in basketball than any other sport. The aim of the high school is to permit all students to have some opportunity for free play. A regular schedule of practice is worked out and posted. This schedule provides that the gymnasium may be used not only by the boys who are on the teams representing the school but by the boys who do not belong to the teams. The girls also get their chance. It is the custom among many of the schools of our vicinity to play double headers. They keep out large squad and divide the squad into first and second teams for these games. Our basketball schedule which is found elsewhere in the paper provides nine games for our second team. The schedule is the strongest one that the high school has had for some time. It includes three winners of districts last year. Basketbal Scheldule-F Team. Dec. 7-Saunemin, here. Dec. 14-Cornell, there. Dec. 21-Dwight, there. Dec. 22-Kankakee, here. Dec. 27-29-Pontiac inv. tourney. Jan. 5-Kankakee, there. Jan. 7-Eureka, there. Jan. 11-Dwight, here. Jan. 18-Pontiac, here. >Jan. 25-Lexington, there. Jan. 26-Cornell, here. Feb. 2-County preliminary tournament, here. Feb. 5-Roanoke, there. Feb. 9-County finals, Pontiac. Feb. 15-Pontiac, there. Feb. 23-Roanoke, here. March 1-Lexington, here. March 7-9-Dist. tournament. Second Team. Dec. 7-Freshmen, here. Dec. 14-Cornell, there. Dec. 21-Dwight, there. Jan. 4-Open. Jan. 11-Dwight, here. Jan. 18-Pontiac, here. Jan. 25-Lexington, there. Jan. 26-Cornell, here. Feb. 8-Open. Feb. 15-Pontiac, there. March 1-Lexington, here. COUNTY AT LAST RECEIVES CHECK FROM BANK RECEIVER Under the above heading the Watseka Times of last week gives the following account of one of the angles in the Claudon bank case: After almost two years of effort on the part of County Treasurer C. H. Warnock to collect money due to the county from the First National bank of Chicago, at last he has received check for the full amount- $353.21. In 1927, L. E. Broadwell, of Fairbury, who owns farm land in Sheldon township, sent a check drawn on the Fairbury bank in payment of his taxes. The check was cleared through the First National bank of Chicago, which in turn sent the check to the Claudon State bank of Fairbury for collection from the other local bank. The money was collected and in the hands of the Claudon bank on the afternoon that it was closed by the state bank examiner. The Chicago bank, in getting possession of all cash on hand at the Claudon bank to satisfy it account, also took the money which had been collected for the check, although this money was not the property of the Claudon bank, the latter being merely an agent in collection. The old rule that "possession is nine points of the law" worked for a long time in favor of the Chicago bank and they retained the money. With the failure of the Claudon bank, the Illinois State Savings bank of Pontiac was made receiver. The Iroquois county claim was put on the preferred list of claims by court action and has just been paid by the Pontiac bank. Subscribe for The Blade.