gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
73e30826b67573b0
Response Measures
None
Description
Bank was closed at the board's request and placed in receivership; protracted litigation over receiver followed.
Events (2)
1.January 24, 1933Suspension
Cause
Voluntary Liquidation
Cause Details
Closed at the request of the board to conserve the assets as collections were slow; state auditor executed the closure.
Newspaper Excerpt
The Lake County State bank of North Chicago was closed yesterday by State Auditor Edward J. Barrett at the request of the board of directors.
Source
newspapers
2.March 9, 1933Receivership
Newspaper Excerpt
Judge Shurtleff entered a temporary order compelling the receiver to cease all work and impound the records of the bank ... petition brought behalf of depositors in the Lake County State Bank of North Chicago asking for the removal of Attorney William O'Connell as receiver.
Source
newspapers
Newspaper Articles (11)
1.January 25, 1933Chicago TribuneChicago, IL
Article Text
NORTH CHICAGO BANK CLOSED BY STATE AUDITOR
The Lake County State bank of North Chicago was closed yesterday by State Auditor Edward J. Barrett at the request of the board of directors. The bank $758,206 on deposit, listed capital of $100,000 and surplus of $50,000. We closed to conserve the assets of the bank," President William R. Dalziel said. collections are too slow keep up with the demands the bank. The loans are good and in time and with an improvement in conditions the bank should liquidate dollar for The bank had robbed twice in the last two In 1930 robber took but was captured and placed on parole. Five gunmen took $2,000 in in Sep. tember, 1932. Three of the gunmen have sentenced to terms of one year to life, fourth is awaiting trial, and fifth has not been captured.
2.February 23, 1933Waukegan News-SunWaukegan, IL
Article Text
PREFERENCE GIVEN OVER DEPOSITORS
Claim Of County Treasurer Over General Depositors Is Affirmed Today On Deposit Of In Bank.
SPRINGFIELD decree court county closed and November county treasurer filed of and should be given the distribution The bank's ceiver filed answer that Morse claim because did not claim from the closing the after the of receiver Gets Preference 818 should preference the general An appeal from the decree was taken to the supreme court
Attorney Snyder, counsel Receiver Elmer stated he would confer the receiver on the advisability asking hearing before the supreme "The case suit of the several still pending. final cision in take short time other matters claims can met without cannot hope for any payment their deposits this ruling Snyder Attorney M. of the Runyard counsel Morse, notified the treasurer of his success the Another Suit Pending The suit referred as pending by Snyder the action in the federal Morse recover $200,000 in Liberty bonds posted the company that provided the bond for the protect the the Waukegan State, which used clearing for all with his has counts three other closed banks, the Lake County State bank North Chicago. the State, the North Shore Trust Highland Park These accounts, said, were distributed tax monies and therefore preferred His total deposit the Waukegan 000 and this will the general claims payable dollar true claims but at the general rate of liquidation
3.March 9, 1933Waukegan News-SunWaukegan, IL
Article Text
BANK RECEIVER CASE DELAYED
Judge Shurtleff States He Will Rule On North Chicago Receivership Tomorrow.
Counsel out of the office of Attorney General Otto Kerner today moved to strike the intervening petition brought behalf of depositors in the Lake County State Bank of North Chicago asking for the removal of Attorney William O'Connell. of Chicago, as receiver. After hearing arguments for more than an hour Circuit Judge Edward Shurtleff. before whom the matter is pending, said he would take the case under advisement until tomorrow when he announced that he believed he would be in position to rule. He said he wanted time to read more law on the question. The intervening petition was presented by Attorneys Harold Tallett and Max Przyborski Tuesday and Judge Shurtleff entered a temporary order compelling the receiver to cease all work and impound the records of the bank with Circuit Clerk L. J Wilmot. Tallett and Przyborski attacked the legality of the appointment of O'Connell because was made by State Auditor Edward J. Barrett, Tallett argued. usurped the powers of the court in making the appointment. Kerner's men made the motion to strike the intervening petition in behalf of Barrett
4.April 17, 1933Belvidere Daily RepublicanBelvidere, IL
Article Text
SHURTLEFF REPLY STANDS BY DECISION
MAKES ANSWER TO PETITION OF STATE AUDITOR TO ILLINOIS SUPREME COURT HOLDS TO HIS OPINION THAT THE COURTS, AND NOT STATE AUDITOR, HAVE RIGHT TO NAME BANK RECEIVERS.
Springfield, III., Apr. 17-Pointing out that he has held unconstitutional the section of the banking act, permitting the state auditor to name receivers for closed state banks, Judge Edward D. Shurtleff, of the 17th judicial circuit, filed his answer with the supreme court today in the mandamus proceedings filed against him by State Auditor Edward J. Barrett. The case originated when Judge Shurtleff ousted as receiver for the closed Lake County State bank at North Chicago. William L. O'Connell, named by Barrett as receiver for all defunct state banks, and appointed James H. Clendenin as receiver for the bank in question. Barrett has secured permission from the high scourt to file petition for writ of mandamus to compel Judge Shurtleff to replace Clendenin with O'Connell. Judge Shurtleff in his answer declared that other parties in the case had held Connell to be Incompetent and unqualified to act as receiver as "he is without any experience in the business of banking. is wholly unfamiliar with the business methods of the Lake county bank, is not a resident of Lake county, and evenin if the disputed section of the banking act is constitutional, has no power to name an assistant receiver, and that naming of such a person would throw an unfair burden on depositors and creditors in the bank. Judge Shurtleff asked the court to dismiss the state audit-
HOME FROM EAST Mrs. C. H. Mackey of North State street returned this mornIng from a winter's sojourn at points in Pennsylvania and New York.
Mr. and Mrs. Fred Perkins were up from Springfield over the week-end. Ted Johnson returned today from a visit of a few days at Mr. and Mrs. Dell Fassett of Poplar Grove spent relatives here.
5.April 18, 1933Republican-NorthwesternBelvidere, IL
Article Text
SHURTLEFF REPLY STANDS BY DECISION
MAKES ANSWER TO PETITION OF STATE AUDITOR TO ILLINOIS SUPREME COURT HOLDS TO HIS OPINION THAT THE COURTS. AND NOT STATE AUDITOR, HAVE RIGHT TO NAME BANK RECEIVERS.
Springfield, III., Apr. 17-Pointing out that he has held unconstitutional the section of the banking act permitting the state auditor to name receivers for closed state banks, Judge Edward D. Shurtleff, of the 17th judicial circuit, filed his answer with the supreme court today in the mandamus proceedings filed against him by State Auditor Edward J. Barrett. The case originated when Judge Shurtleff ousted as receiver for the closed Lake County State bank at North Chicago. William L. O'Connell, named by Barrett as receiver for all defunct state banks, and appointed James H. Clendenin as receiver for the bank in question. Barrett has secured permission from th high scourt to file a petition for writ of mandamus to compel Judge Shurtleff to replace Clendenin with Connell. Judge Shurtleff in his answer declared that other parties in the case had held O'Connell to be incompetent and unqualified to act as receiver as he is without any experience in the business of banking, is wholly unfamiliar with the business methods of the Lake county bank, is not a resident of Lake county. and evenin if the disputed section of the banking act is constitutional, has no power to name an assistant receiver, and that naming of such person would *hrow an unfair burden on depositors and creditors in the bank. Judge Shurtleff asked the court to dismiss the state auditor's proceedings.
HOME FROM EAST Mrs. C. H. Mackey of North State street returned this mornIng from winter's sojourn at points in Pennsylvania and New York.
Mr. and Mrs. Fred Perkins were up from Springfield over the week-end. Ted Johnson returned today from a visit of a few days at Wheaton. and Mrs. Fassett of Poplar Grove spent relatives here.
6.May 18, 1933Waukegan News-SunWaukegan, IL
Article Text
NOR CHICAGO NEWS Personals SEEK RETENTION column North Chicago calling may Mr published De Yoe this OF CLENDENNIN Phone North Chicago 1236 before and
Depositors Of Closed Lake County State Bank Sign Petitions For Retention.
Approximately two-thirds of the ereditors of the closed Lake County State bank of North Chicago have signed petitions asking the retention of James Clendennin of Lake Forest as receiver, members of the depositors committee have revealed. Clendennin was named receiver by Circuit Judge Edward D. Shurtleff when Receiver William O'Connell of Chicago was ousted. but unless sufficient names on petitions are secured, there is possibility of Clendennin being ousted the supreme court reverses Judge Shurtleff's rultng that the state auditor cannot appoint state bank receivers total of 2,750 creditors, it is understood. have signed the necessary petitions within the past week The final decision as to whether Clendennin will be retained as receiver will not be known until the higher court rules on the decision of Judge Shurtleff Paul Heerens chairman of the depositors' committee of the bank. has announced that if the supreme court reverses the Lake county circuit court opinion. the petition can then legally be presented to State Auditor Barrett for the retention of Clendennin
Funeral services for Mrs. Eleanor Baggon. held yesterday from the St tended both at the church and at the cemetery Interment was made in the Ascension cemetery A number of North Chicagoans attended the final concert of the Waukegan Civic Music Association at the senior high school auditorium in Waukegan last night G. E Schumann presented an operetta entitled. "The Mikado.' following the regular con-
Mr and Mrs H I. MacDavid of Ishpeming Mich are here visiting the former's uncle on Twelfth street The North School girls softball team defeated the Otto Paints of Waukegan 11 to last night at the North School diamond The local team is entered in the Waukegan playground league again this summer
The tennis court and baseball diamond at Foss Park are now in splendid shape for the summer season Members of the American Legion have re-decorated the interior of the Foss Park pavilion in preparation for the opening dance of the season next week North school seconds defeated the Holy Family team. 17 to 0. Tuesday in the school playground league
7.June 15, 1933The DispatchMoline, IL
Article Text
He, Not Circuit Judges, Says Has Sole Power to Name Bank Receivers.
Springfield, Ill., June The Illinois supreme court today ruled that the auditor of public and not circuit court accounts, has sole to appoint judges, power closed state banks. receivers of ruled in favor of State The court Auditor Edward Barrett, who granted writ of mandamus ordering Circuit Judge Edward Shurtleff Marengo expunge from his court records the appointment John Clendenin receiver of the Lake County State bank. Barrett is permitted to reinstate William Connell of Chicago as ceiver for all state banks under liquidation. The court's decision was unanimous, with Justices Stone and Heard especially concurring in the opinion Justice Dunn. issue the suit was the conof the law permitting the state auditor name receivers state banks. In order to consolicontrol and on expenses Barrett appointed William nell Chicago as receiver for all closed banks. Judge Shurtleff ousted O'Connell from the Lake county bank, at North Chicago, and put Clendenin in charge. In effect, the decision gives the state auditor authority proceed with complete control months rett asked for the resignation receivers, announcing that many would be vacant in positions effort to reduce fee charges against assets of closed banks.
Affects Moline Bank. result of the decision of the upholding the right of the Illinois auditor public counts to designate receivers for closed banks, expected Paul Califf in Rock Island Judge court will deny filed asking of liam Chicago ceiver for the People's Savings Bank and Trust company of Moline. Judge after on the petition in the ple's bank deferred consideration of the matter pending the sucourt decision similar preme points those raised here. In the People's bank Ingelson and several other depositors sought removal of auditor's basing their appointee contention the claim that the banking act with reference the auditor's control of receiverships
8.June 16, 1933Chicago TribuneChicago, IL
Article Text
STATE AUDITOR UPHELD IN BANK RECEIVER FIGHT
Court Rules He Has Sole Appointive Power.
The Illinois Supreme court yesterday upheld the right of the state auditor to appoint receivers for closed banks. In its decision the court overruled Circuit Judge Edward D. Shurt leff of Waukegan, who had held that in appointing receivers state auwas usurping judicial function. In unanimous decision the Supreme court held the auditor is merely an administrative function in appointing receivers which is granted him by the state constituti The opinion of the court was written by Justice Frank K. Issue Raised in North Chicago. The Issue was raised when State Auditor Edward J. Barrett, in move to consolidate and save ex. appointed William L. O'Connell of Chicago as receiver for number of banks, among them the closed Lake County State bank of North Chicago. On March 10 Judge Shurtleff removed O'Connell and appointed James H. Clendenin of Lake Forest as receiver of the bank. The state brought an action for writ of mandamus to compel Judge Shurtleff to expunge his order of appointment. The suit involved the status of every appointed by the state auditor and the liquidation of hundreds of millions of dollars in the closed banks of the state. Had Judge Shurtleff been upheld the legality of every act of the receivers now in control might have been subject to attack in courts, lawyers pointed out.
Auditor Is Given Control.
The decision of the Supreme court gives the auditor control of bank liquidation activities, subject to approval of the courts. Several months ago Auditor Barrett asked for the resignation of all receivers, Ing that many positions would be left vacant in an effort to reduce fee charges against assets of closed banks. The decision leaves him free to pursue his plans.
9.June 17, 1933Waukegan News-SunWaukegan, IL
Article Text
BANK RECEIVERS
In overruling the decision of Judge Edward D. Shurtleff in the case of the Lake County State bank of North Chicago, the state Supreme court has given Edward Barrett, state auditor, full power over the appointment of receivers for closed banks. Holding that the appointment of receivers matter for the courts, Judge Shurtleff had removed William O'Connell of Chicago ceiver for the North Chicago institution and had James H. Clendenin, Lake county man, to take his place. The Supreme court's rulapparently puts Clendenin Connell in, though depositors have petitioned to tain Clendenin. In his fight to gain control of the bank receiverships, Auditor Barrett advanced the argument of economy. Yet the actions of his pointee in the Lake County State bank of North Chicago were not conducive to economy or community support. When Judge Shurtleff's pointee took charge, he cut down the cost
10.December 11, 1933Waukegan News-SunWaukegan, IL
Article Text
WORACK IN DENVER FOR AN APPRAISAL
Frank Worack. receiver under the stockholder's liability suit in the Lake county state bank of North Chicago. left for Denver, Colo., Saturday to appraise some property there for the bank's receiver, William O'Connell of Chicago. He expects to return to Waukegan next Friday.
11.December 4, 1934Belvidere Daily RepublicanBelvidere, IL
Article Text
WAIT THE HEAR THEY WILL FIRST IS THE ONE WHICH FURNISHED TEST CASE ON POLITICAL INDIRECTLY AIDED CASE.
After long and tedious wait the depositors, the Lake CounState Bank North Chicago, which went into receivership eral months before the date May, 1933. on which the Peoples Bank, Belvidere, was taken by the Farmers State Bank. will pay its first dividend. Anmade by ReceivO'Connell that the clos. institution will parcel out the small dividend of 10 per cent. will recalled that the Lake County State Bank the test case determine the right State Auditor Barrett name receivers for all closed state banking institutions. The stockholders and depositors name local man their choice Judge Shurtleff upheld their contention. The, argued that politically appoint receiver would pay himself and his lawyers excessive fees would delay payments to the depositors. While the Illinois supreme court upheld the law placing all state bank under the control of the state auditor the depositors are now The litigation over the receivership question indirectly proved of to depositof the Peoples Bank of Belvidere. Judg holding the law unconstitutional, automatic prevented State Auditor Barfrom further of political bank receivers until the case could reach the supreme delay gave the stockholders and depositors of Peoples Bank time. protect their interests in the action sequently and resulted immediate cash payment all depositors per cent with full assurance receiving the remaining 30 per cent the end period. The Belvidere case said be the only one in the United States, under similar circum stances, hand out in cash much per forthwith and to assure the depositors that careful and orderly liquidation would give them the remaining Incidentally. one the reasons for the fortunate outcome here that the trustee, H. Funderburg. serving the interests of all concerned without fee or even for personal expenses. Several state banks, in charge of State Auditor Barrett's sole receiver, O'Connell, have not paid waiting depositors single penny.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.