Peoples State Bank (Arlington Heights, IL)

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ARLINGTON

Police Committee Reports Create sations

The financo and police commitreports, and thereon Board meeting Arlington Heights Monday night. Perhaps the most what all before that the village practically and money to pay of police er employes of the village. A letter from State Auditor Nelson asked verification of the fact that the Village had deposit the People's State Bank, closed. Asst. Treas. Wm. Meyer stepped up with the of work office, some $200 of water monhad been the vault village hall, and undeposited bank. Bills and payroll to the amount $3,048.30 were presented Trustee Krause, chairman of the Finance committee. detail to would take time warrants was made. These bills are listed below. petition for an "abatement of nuisance" signed by 23 properowners vicinity South State road just south of the railroad, complained that the "peace and tranquility" their hood was noise from certain neighboring enterprise, from early late at night. Pointfloor. derman being one of residents, that certain sic (for lack more definite term), was run early in the morning, all day, about midnight, noises emanating from dance hall into sma' hours Sunday morning. The potition was back to the committee for report at meeting. Hauff, chairman of the Police presented list of business houses that had not paid their censes 1932. With the lage absolutely "broke" with the the some in funds vault, and money to pay for lights night board that the either to the else the to discontinue special lighting and police Mr. Hauff letsent to the houses June four five paid their licenses since. send another letter and visit the Vehicle tags, overdue, other source of for the by the police Opinion expressed board members was unanimous that rests must be made in every case of heated followed to regular during the races. Mr. Hauff 322 hours and time, put by officers Luehrand Skoog. he had them that he they were entitled to extra for and asked them put the time, rather than ing extra men, believing that the regular uniformed men would command obedience, would know the work better than temporary help. Others the board expressed themselves feeling that the police should glad to have salaried job these and their time should considered flexible. The mayor Service company representative committee presented owners done without engineering, collec-

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An Editorial

By their action Monday morning the the Peoples State Bank, its officers and directin that institution, alike. That held intact the bank. fault the bank have greater than deposits nor that general have preof the of the bank from their own Efforts of bank officials to keep their when the otherwise. That be putting the matter little strong, that truth has in of the past again in Aryear Heights week. Nine months the people Heights rallied to the support the day pledged their ation nearly per cent. Peoples State Bank saved and probably would have here not financial world month ago brought about new bank Money borrowed by the People's Bank as June 30, 1932, was amount keep its cash No further loans were made that purpose, the continued to peck away the cash reserve with the that rather than jeopardize liquidity and soundness their bank, officers voluntarily closed its doors. Mr. Gieseke and the officials of that bank strong fight. They demonstrated that were real fighting the safethe people against heavy odds. The Herald believes that not word critcan be rightfully directed their effect upon business in lington Heights great. The represented deposits in its two banks years million total bank deposits slightly more $200,000. the People's State Bank closed its doors.

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Arlington Heights Is Now Bank; Steady Blamed

PROTECTED

The People's State Bank of Arlington Heights did open doors Monday morning. Followweek heavy withdrawals, particularly commercial counts, special meeting the directors that institution called Saturday evening, after the regular closing the bank when decision made to ask State Auditor take over the affairs bank. The decision was made primarto protect the depositors institution. would have been possible have secured additionfunds from Chicago, and the peoples bank had good securities use such loan. Howsuch action on the part of the bank's officials tied large the bonds their present market value much than normally. There no reason believe the price these securiwill increase the immediate future would Instead every reason believe deposits would continue Rather than to keep the bank using the best for. that Gieseke and bank's decided treat all alike and close the doors purpose of directors not arrive that decision without giving the matter lot thought and opinion action only fair to all positors, but the businesslike method that could be followed. stated Tuesday that the bank's reopening very probable. spite the closing other banking institutions in immediate vicinity, Bank held its deposits until about June 1st, when regarding larger Chicago banks brought about small runs those Chicainstitutions. its effect upon banking conditions Arlington Heights. There run upon the People's steady. The report made the state ditor 30th showed total posits with sources $416,375.58. Bills able that time were month later, 30th, the posits shrunk about $22,000, which had come largely out of the cash hand. Payment notes due the bank had not equalled but the payable been reduced about With decreased cash reserve, would been unwise business Monday morning out additional funds. the officers pledge loans that only serve the need. News the closing of the bank received Heights Sunday and created except regret that such course was Bank deposits, which usually the working capital of are fraction Heights, what today two total deposits the banks over The since then from $700,000 $50,000 Saturday the last over the People's Bank open. day

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ARLINGTON VILLAGE

Finance, Committee Reports Create sations

The financo and police commitand thereon livened the Board meeting Arlington Heights Monday night. Perhaps the most sensational was all knew before to that lage practically and there is money to salaries pay police employes of the village. letter from State Anditor Nelasked verification the fact that the Village had deposit the People's State Bank, closed. Asst. Treas. Wm. Meyer stepped up with the that owing rush of his office, some $200 of water monhad been vault village hall, the and undeposited bank. Bills and payroll to the amount the $3,048.30 were presented Trustee Krause, of the Finance committee. detail to would take time warrants made. These bills are listed below. petition for "abatement of nuisance" signed by 23 properowners the vicinity South State road south the railroad, complained that the "peace and tranquility" hood disturbed emanating from certain from late at night. Pointthe floor, derman Framberg being the residents, certain (for more definterm), run early the morning, all day, about midnoises from dance into hours Sunday morning. The petition referred back to the lice committee for report at Hauff, as chairman of the Police License also presented of 87 business houses that had not paid their censes 1932. lage absolutely "broke" with the exception the some $200 in funds left the vault, and money pay for lights night policing, board members the business men must either come according the law, else the village would have discontinue special lighting police Hauff recalled the business houses June four or five have paid licenses since. agreed another letter and visit the places business. Vehicle overdue, other source for the were mentionby the police chairman. Opinion expressed by board members that from rests must be made in every case delinquency. heated discussion followed ative regular during the Mr. Hauff statement of 322 hours above their time, put in by officers LuehrSkoog. told them that he felt they were entitled extra pay for the work, and had asked them the time, rather than extra men, believing that regular uniformed would command more obedience, and would the work better than temporary Others of the feeling that the police should glad to have salaried job these their should flexible. The asked an officer who spent hours at track, charged that the village of ington Heights. This question extra laid the table; $27 approved take care work done Special Police Rehling and Service company committee presented est:owners done without collecthe the

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An Editorial their action Monday morning By the doors the Peoples directBank, that instiprotected tution, treating every held intact the alike. of that bank. no fault assets the bank have been greater deposits nor that have pregeneral the of many the bank from paying their own notes. Efforts of bank officials to keep their open naught the wills That be putting the wise. may little strong, that matter truth has' been number of communities the past year was again proven in Arlington Heights week. Nine months the people the Arlington the remaining bank and support one day cooperation nearly 100 per cent. The Peoples State Bank saved and probably would have been here day rumblings throughout financial brought about new bank withdrawMoney borrowed by the People's Bank 1932, an amount keep cash reserve. further made for that continued to peck the with away result that rather than liquidity their bank, its officers voluntarclosed its doors. Mr. Gieseke and the officials that bank up strong fight. They fighters, fighting for the safeagainst odds. The Herald believes not word criticism can be rightfully directed their upon business in lington Heights great. The resented deposits its banks years million dollars. The total bank deposits slightly more There the the People's State Bank closed its doors.

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Arlington Heights Is Now Without a Bank; Steady Withdrawals Blamed

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The People's State Bank of Arlington Heights doors Monday morning. heavy particularly the commercial counts, special meeting the directors that institution called Saturday after the regular closing of the bank when decision made to State Auditor take over the affairs bank. The decision was made primarto protect the depositors of the institution would have been possible have secured funds Chicago, the bank had good loan. action on the part the officials tied large amounts of the bonds market much less than There no reason believe that market price these securiwithin the immediate future would Instead there reason believe that deposits would Rather than the bank using the bank's best for Mr. Gieseke and the bank's officers decided treat alike doors the purpose liquidation. The did arrive that decision without the matter lot thought and opinion action not fair all positors, the only that could followed. Gieseke stated Tuesday that the bank's reopening spite the closing other banking immediate vicinity, People's Bank its deposits about June 1st, rumors regarding larger Chicago banks brought small those Chicawas withits effect tions Heights. There run upon the People's Bank, steady. The report to ditor June 30th total deposits of with sources Bills able at that time were later, 30th, posits shrunk about which largely out the cash hand. Payment notes the bank had not equalled but the bills payable reduced about With decreased cash reserve, would been unwise open business withadditional funds. For given above the officers thought unwise pledge loans would only serve the immediate need. News of the closing of the bank received about Arlington Heights Sunday and created excitement, except expressions regret that such course was Bank deposits, which are usually considered working capital fraction in Arlington Heights, what today they two years ago total banks over The commeraccounts since $700,000 little then from Saturday the last $50,000 day the People's Bank was open.

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Editorial An

By their action Monday morning doors the Peoples closing its officers and directState Bank, protected deposits that institreating every depositor tution, That action held intact the alike. assets that bank. It is no fault the bank that withdrawals have than deposits nor been greater conditions have prethat general vented the customers many the bank from paying their own notes. Efforts of bank officials to keep their institutions open come naught when the public wills otherThat be putting the wise. may little but that matter strong, has demonstrated in truth number of communities past was again proven in Aryear lington Heights week. Nine months ago, the people Heights rallied the Arlington the remaining bank support day pledged their cooperation nearly per cent. Peoples State Bank saved would have been here toprobably not rumblings throughout the financial world month brought about new bank Money borrowed by the People's Bank June 1932, was amount secured keep its cash reserve. No further loans made that purpose, the continued to peck the cash reserve with result that rather than jeopardize liquidity soundness their bank, its officers voluntarclosed its doors. Mr. Gieseke and the officials of that bank strong fight. demonstrated fighters, fighting for the safebank people against heavy odds. The Herald believes that not word icism can rightfully directed their effect upon business in lington Heights great. The represented deposits in its two banks years million dollars. The bank deposits more $200,000. the People's State answer Bank closed its doors.

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An Editorial

By their action Monday morning in closing the doors of the Peoples State Bank, its officers and directors protected deposits in that institution, treating every depositor alike. That action held intact the assets of that bank. It is no fault of the bank that withdrawals have been greater than deposits nor that general conditions have prevented many of the customers of the bank from paying their own notes.

Efforts of bank officials to keep their institutions open come to naught when the public wills otherwise. That may be putting the matter a little strong, but that truth has been demonstrated in a number of communities the past year and was again proven in Arlington Heights this week.

Nine months ago, the people of Arlington Heights rallied to the support of the remaining bank and in one day pledged their cooperation nearly 100 per cent. The Peoples State Bank was saved and probably would have been here today had not rumblings throughout the financial world a month ago brought about new bank withdrawals.

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Arlington Heights Is Now Without a Bank; Steady Withdrawals Blamed

PROTECTED BY AMPLE ASSETS

The People's State Bank of Arlington Heights did not open its doors Monday morning. Following a week of heavy withdrawals, particularly in the commercial accounts, a special meeting of the directors of that institution was called Saturday evening, after the regular closing of the bank when a decision was made to ask State Auditor to take over the affairs of the bank.

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E. F. Laurin, Receiver For Entire Liquidation of Peoples State Bank

The publication of an item in this paper recently regarding two receivers for the Peoples State Bank, of Arlington Heights, which closed July 30, was misleading. The Herald now learns that there is no other receiver than E. F. Laurin, he acting in the matter of the stockholders as well as the depositors. The earlier appointment of an outsider to act in the liability of stockholders has been changed and as is the custom in the majority of banks, one man handles the entire matter.

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TO IMPROVE BUSINESS CONDITIONS

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positor a purchasing power of dollar for dollar to the extent of the anticipated dividend, before that dividend is actually declared and paid. It saves the depositor 3% on such dividends for it permits the use of non-interest bearing funds for current expenses, and in turn the use of available cash for investment purposes and income producing activities.

To the local merchant, the operation of this plan means that unattainable funds can be utilized by customers to pay off old debts, that credit can be extended with definite assurance that cash will be received for such credit upon the payment of a dividend by the bank, and that they will no longer be embarrassed when asked to extend credit because of the bank's failure. This plan has an added advantage for the independent merchant in that chain stores either cannot or will not become members of this type of association. In effect, this plan becomes collection assurance for the merchant, and provides a means whereby his cash income can be conserved for the replenishing of his merchandise stocks and the assignments accepted used to reduce his obligations to the bank and local creditors.

For the community, it creates a feeling of good-will towards the merchants, and reduces the number of people who would otherwise be forced to avail themselves of assistance from charitable organizations.

Both Mr. Laurin, the receiver for the Peoples State Bank and Mr. Plew, receiver for the Arlington State Bank, have investigated this plan and agreed to lend their cooperation to its operation in Arlington Heights, if adopted by the business men.

The Plan

The plan is simple. The depositor makes an assignment of that portion of his claim against the bank which it is felt will be covered by the first dividend paid. This assignment is made to the Merchants' Relief association. The association notifies the bank receiver of such assignment, which is entered on the records of the bank. The depositor is then provided with a card, by the association, certifying that he has made such assignment and is in a position to avail himself of the courtesies extended by cooperating merchants.

When the depositor desires to make a purchase, he selects the merchandise and the merchant fills in a form which is a receipt for the goods purchased and authority to the secretary of the association to transfer, on the records of that organization, the value of the purchase from the assigned portion of the depositor's claim to the account of the merchant from whom the material is bought. After this receipt is approved by the association secretary, the depositor returns to the merchant and exchanges the receipt for the goods he has selected.

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Paid to creditors [15 per cent] 303,959 Balance due salary and expenses. Clerical hire. 14,898 Legal and attorneys' fees. 8,710 Miscellaneous expense. 17,168 NORTHBROOK STATE BANK. Cash on hand. 3,307 Total 215,919 Losses on conversion of assets. Preferred claims Balance due creditors. 156.251 Receiver's salary and expenses. Clerical OLD DEARBORN STATE BANK. [Closed June 25, 1932.] Cash on hand. 11,575 Total 759,534 of Balance creditors. 446,429 Clerical hire. 280 PEOPLES STATE BANK OF ARLINGTON HEIGHTS.

[Closed Aug. 1, 1932.1 Cash on 7,454 Total 1,807 Balance due Receiver's salary and Clerical 1,289 Legal expenses and attorneys' fees. 1.368 912 PARKWAY STATE BANK. [Closed Nov. 3. 1932.] Cash Total Balance due 62,111 Receiver's salary and expenses Clerical 565 Miscellaneous 167 The foregoing list of twenty banks completes reports on 100 closed banks. There are 40 more on which accountings are to be made and Nelson said they would be made public within days.

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DIVIDENDS DEPOSITORS

Peoples State Bank ceiver Has for Purpose

Receiver Laurin of the Peoples State Bank Arlington Heights, may soon able to hand dividend checks depositors that institution which closed nearly While official verification of the exact amount available, dividend purposes has been given, understood that there cash awaiting distribution. The leading to the actual distribution has been completed. The final and approval state auditor the step the actual writing of the checks. understood that the divldend will include payment in full claims, all deposit of $5.00 less and of approximately 12 per cent on all other claims. The liquidation progress in these days not easy and the their and the business interests of Arlington have reason feel elated over the success that met the efforts of Mr. Laurin. Here is some more good news. The interest payments and other under the receivership have been more than ample pay costs connected with the receivThere balance of ership. $1,000 of those turned into the assets the bank. The exact date of the payment the dividend not until word from the state auditor's office.

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DIVIDENDS

Peoples State Bank Receiver Has for Such Purpose

Receiver Laurin of the PeoState Bank Arlington Heights, soon be checks depositors that institution which closed ago. While official verification of amount available, for purposes has been given, that there cash awaiting distribution. The work leading to the actual been completed. The final the auditor next step before the actual the checks. understood that the dividend will include in payment all preferred claims, payment in full all deposit balances of and less dividend approximately 12 per cent all other claims. The liquidation progress in these days not easy and the depositors. their and business have reason feel elated over the success met the efforts Mr. Laurin. Here some more The payments other under receivership have been more costs the ership. There of proximately $1,000 of those earnings be turned into the assets bank. The exact date of the payment the dividend can not until received from the state auditor's office.

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DIVIDENDS DEPOSITORS

State Bank Peoples Has $40,000 ceiver for Such Purpose

Laurin of the PeoReceiver Bank Arlington State able to hand Heights, may soon dividend checks which closed nearly that institution ago. verification of official available, for exact amount the has been given, dividend that there is distri$40,000 in cash awaiting preliminary work bution. actual distribution leading to the The final been completed. of the state auditor and approval before the actual the step checks. that the diviin full dend include payment full balances of and less and dividend of approxall other imately per cent on claims. The liquidation progress in these and easy and the business their of Arlington have reason that feel the efforts of Mr. Laurin. met Here is more good other The interest payments under the receivership earnings than ample to have been more costs connected with the receivership. There balance of those earninto the assets to turned the bank. exact date of the payment The of the dividend can not received from state auditor's office. the

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Bank Dividend At Arlington

There to believe depositors of the Peoples State Bank of Arlington Heights substantial This best that Arlington has had months, which was brought back Gieseke, presthe State Mr. had spent large part Tuesday in conference RFC the and regional authorities examining the assets of the bank, which closed At the timen the of closing the bank the deposits about $213,000. ten per cent dividend subsequently declared.

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DIVIDEND PROBABLE AT LOCAL BANKS

Loans To Be Asked of RFC for Benefit of Depositors

There is every reason to believe that depositors of the Peoples State Bank of Arlington Heights will receive a substantial dividend. This is the best news that Arlington Heights has had in 12 months, word of which was brought back by Fred W. Gieseke, former president of the Peoples State Bank.

Mr. Gieseke had spent a large part of Tuesday in conference with representatives of the receiver and regional RFC authorities in examining the assets of the bank, which closed in August, 1932.

At the time of the closing of the bank the deposits were about $213,000. A ten per cent dividend was subsequently declared.

The application of the loan must receive the approval of Washington before it can be definitely announced that the money will be forthcoming.

In this instance as well as in the affairs of other banks, under his charge, Mr. Robertson, deputy receiver, has followed the policy that early dividends were important to the local communities and everything possible is being done by his office to meet the requirements and get the assets in such shape as will permit a substantial loan for the payment of dividends.

It is understood that similar news can be expected very shortly regarding the Arlington Heights State Bank.

The releasing of this sum of money among the people of Arlington Heights should have a beneficial effect upon local business, which in turn will be beneficial to everybody.

Depositors should bear in mind that while application for the loan has been made, it can not be definitely announced until the final O. K. comes from Washington.