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KNIFE IS ONLY CLEW July definite clues have been found which may lead to the solution of the murder an unidentified woman, about 70 years old. whose body found lying ditch in Louis county. authorities today continued their investigation Near the body of the woman was found long knife. NAME BANK RECEIVER July D. Whitney, of today was appointed receiver for the Waukegan State Bank by State Auditor Oscar Whitney's salary fixed at year.
ASKS GRAND JURY PROBE OF CLOSED WAUKEGAN BANK State's Attorney A. V. Smith Waukegan yesterday he would go before Circuit Judge Ralph J. Dady tomorrow with petition asking an Investigation by the Lake ty grand jury of the operation of the Waukegan State bank, which closed on June 17. Mr. Smith he had evidence that officers of the bank accepted deposits and sold bank stocks while aware that the Institution was insolvent. Bank examiners, resources after the closing, found only fraction of the $1,224,000 cash the bank should have had on hand, he said.
GEYER EARNS $666 AS BANK RECEIVER Norman O. Geyer, under indictment from the investigation the defunct Waukegan State bank. has profited to the extent of $666 in salary expenses since became receiver of the Second Northwestern State of was shown today bank his preliminary report. The report in that the bank had book showed value of $2,977,910 and owed creditors
WAUCONDA stockholders suit in behalf of depositors of the Wauconda State Bank, closed on October by State Auditor Oscar Nelson after of books, filed Circuit Clerk Wilmot Three Underwood, Edward Dobner, and Jones filed the bill through the law firm Decker and Decker, cently resigned attorneys for the Waukegan State bank receiver. The about thirty past present stockholders the banking among them Senator Paddock, who presiof the bank. Provision that each stockholder $100 the bank receiver share stock asked The special such
TESTIMONY IN NELSON TRIAL ABOUT BUILDING Charge Made That Bank Building Was Valued too High. (United Press) WOODSTOCK, Dec. Testimony intended show that the building owned occupied the closed Waukegan State bank overvalued in the bank's records today before the jury Oscar Nelson trying charge. Nelson is accused by the state failing to close the bank until nine months after the institution found insolvent by examiners department. The bank pended business last June, of more of the whom may be subpoenaed before testicompleted, also submony to support the mitted yesterday state's charge that the permitted retain "bad Parsons, real broker and engineer, said the building and land owned by 1930, was worth The bank's valuation of this property, was charged, $100,000 higher than Parson's timate.
ORDER RESTRAINS BANK RECEIVER Order restraining Fred Brown Whitney receiver of the Waukegan State bank from closing the Rubin department store on an execution following judgment of $25,896 that was confessed last week was entered yesterday by Federal Judge George A. Carpenter before whom an involuntary petition in bankruptcy is pending
AUDITOR NELSON WINS SEPARATE BANK CASE TRIAL His Plea for Early Hearing Denied. State Auditor Oscar Nelson was granted separate trial yesterday by Circuit Judge Edward D Shurtleff at on charge in connection with the failure of the Waukegan State bank last June 17. The auditor lost his plea for an early trial after heated argument State's Attorney Smith of elected to try Norman O. Geyer president of the defunct bank. and George Woodruff for. mer the National Bank of the Republic of Chicago, before Nelson is arraigned. Geyer and Wood. ruff were scheduled to go on trial Monday, plea for in behalf of Woodruff was denied. Indictments Charge Fraud. indictments against Nelson, Geyer, and Woodruff charge con spiracy to defraud in with the failure of the bank the bank's closing there were deposits of $1,224,000 and only $38,000 in cash on Prosecutor Smith has charged. Two others named at the same time are trials. William H. Miller. former vice of the Chicago bank, be tried in Lake county by Judge and John Murray former vice presi dent of the is to be tried in county by Circuit Judge Ralph Dady David Joslyn Nelson. asked that Nelson be tried first since he is candidate for reelection and the trial of oodruff and Geyer may not end until after the primaries. He months will be spent in attempting to prove the insolvency of the Waukegan bank before its actual closing. as charged by to change his decision to try the state auditor Denies Politics in Trial. "Of course, you know this insolvency applies to politics as well as other the judge then, Joslyn, are busted. We're Smith leaped to his feet to that there was in his Joslyn his charge that there was politics in the The judge smoothed over the disAttorney George T. Bucking ham, representing made plea for severance in behalf of his which Expect Sheridan Dividend. Floyd E. Britton, attorney for the of the defunct Sheridan Trust and bank, reported almost in and securities will soon be available for the bank's de positors. He made his report before Circuit Judge Michael Feinberg who Is seeking uncover assets hidden from the Britton discussed in detail trans actions between the Foreman National bank and the Sheridan Trust and Savings bank spiking rumors that in securities had been moved from the latter bank after its closing He said securi ties, as deed to loan of 780,000 moved after the closing as the deed Securities Up for Sale. of the securities $442,391 is now available for sale aid depositors. In addition, he said, there is $530,000 in on deposit with the Bank and the the judge quesMrs. Hannah Zuker 5329 Kento the Mrs. Zuker was as Hetty she reputed to have real estate holdings four and five million dollars. She told the Judge she was in default on all her properties and was on her sons for and she now lives on $20 The judge her to return this morning with her sons.
TRIAL IS DELAYED. Woodstock, lay was encountered today in the scheduled opening of State Auditor Oscar Nelson's conspiracy trial before Judge D. Shurtleff. State's Attorney Smith of Lake counasked that the case be continued pending reorganization of the closWaukegan State Bank, the fallure of which resulted in Nelson's indictment.
TRIAL OF NELSON Feb. conspiracy trial of State Auditor Oscar was today continued until Wednesday because the official confined in Genwith attack of the Defense Attorney Joslyn informed Circuit Judge Shurtthat Nelson he could to the this come morning. continuance Thursbut court Wednesday with continuance may be granted. There is according the trial may ceed Wednesday even Nelson able to appear. The auditor anxious to have the settled. Attorney Smith Lake county did object to the Nelson charged conspiracy with the closing the Waukegan State bank last June.
DROP IF BANK Waukegan, Feb. the defense of State Auditor Oscar Nelson wished him tried for conspiracy the failure the Waukegan State bank, Lake county thorities announced indictments him and five bankers would agaist be if the bank is reorgandropped ized and depositors of repaid. The reorganization yesterday the State bank would be consolidated with the Waukegan National bank within three weeks and reopened and Col. Smith, he would nolle prosse the Nelson and the others provided the depositors are paid dividend when the bank opens and the balance in David Joslyn of Woodstock, chief the Nelson would insist on but added that they claim trial would obstruct attempts the bank, one would reopen want to do that." Auditor Nelson, at his home in Geneva, declined comment. Nelson has been tried and quitted charge out of the bank's growing The others facing charges of their bank dealings President Norman closed bank, George ruff, and Miller, former vice president National Bank of the Republic and John Murray Conof Chicago, nors and Milton former vice of the Waukegan president bank.
BANK RECEIVER ORDERED TOPAY VETS $250,000 Judge Gentzel Also Asks Prosecutor to Act. Superior Judge Robert E. Gentzel yesterday ordered the receiver for the Northwestern Trust and Savings bank to restore $250,000 in cash from the assets of the institution 100 disabled war all wards of the Probate in the form of trust funds had been deposited The given when the court that oficials of the bank had used the trust funds without of the court to purchase worthless real estate bonds. Judge Gentzel also ordered the re ceiver, David E. Shanahan, state representative and of the general assembly to report his findings Xo the state's attorney's office He asked that Receiver Shanahan report 6 him the progress of any prosecution of the bank officials within the next week, saying that if the delayed he would take the prosecu tion into his own Veterans in Hines Hospital. The bank had been appointed trus tee for the veterans. most of whom are patients at the Edward Hines Memorial hospital, by Probate Judge Horner. When the institution was closed last June the receiver prepared an audit of all the trusts. containing the reports of the bond submitted for to the law bureau of the veterans' hospital Attorney Frank A. Barry, representing the returned the report, ing to the bonds on the ground that most of them in default, and asserting that the court had not approved the purchase of any of the The charges were referred to Louis Behan, for Receiver Shana han, and the report laid before Judge Gentzel yesterday Orders Receiver to Take Bonds. There is only one thing to udge Gentzel said, "replace the bonds with cash from the assets of the bank, and take the bonds for what they are anything worth. The other will suffer but there nothing else for the court to do under the law. want this entire matter placed in the hands of the state's attorney so that the guilty individuals, whether they be the trust officers of the bank the will be prosecuted. If is no from that within one week I'll take over the The president of the bank was Frank Lackowski, and the cashier, John Budzbahn, the receiver said. During the years that the bank for these funds It is stated that there have been several trust officers. John Bain, head of the defunct bank chain bearing his name, will be arwith five others today before Chief Harry M. Fisher in the on charges of conspir acy growing out of the bank failures Nelson Trial Delayed. The of State Auditor Oscar with conspiracy to depositors in the closed Wau kegan State bank, was postponed yes terday at Woodstock before Circuit Judge E. D. Shurtleff to March 21 of Woodruff. former of the National Bank of the Republic, and Norman O. Geyer, former president of the Waukegan State bank, was set over to April 4. They were indicted with Nelson, but severance. The postponements were granted by of attorneys, pending com pletion of negotiations to reopen the closed bank. State's Attorney A. V Smith of Lake county has said that he will drop the case if depositors are guaranteed against loss. Louis Kaufman. of the Kaufman State bank, 124 North La
DIVIDEND AT DISBURSED (Continued From Page ity, but never developed and the time, exceeded 200 people. number of depositors with money coming discovered that the payment check would continue day after all were given out, which led them delay demand in hope that there would be no waiting days when they called for their money. Depression From the National bank learned number the old Waukegan National had opened accounts with the last June, were their checks This hardly expected, and from this was that the depression far Waukegan concerned has The large number of women waiting accounts verified draw their dividend indicated that the majority the heads of the housestill were employed. that the accounts were savings the housewife their children in school. Staff Work Heavy Ericson staff were tired when faced work this morning had been necessary for the them night order checks could distributed learned that any delay be fair to the the agreement was night prepare the for the checks newly from waiting one more The and due obligations tinued through the without interruption the dividend bursement, as this has connection with the accounts This work collection will have conthrough receiver order liquidate institution othe Whitney Makes Statement Late yesterday statement sued by Fred Brown Whitney receivthe Waukegan State bank. which revealed the progress in that bank. The gist this statement, the first by the final reappraisal the bank had form being set down in pershape. Just he asserted. as this data he will present for approval and then decide whether he will file petition for the sale the assets The petition prepared some time ago and held for actual presentation the pending reappraisal under his direcpossible formal presentation Whitney completion the reappraisal that he The complete statement made by receiver follows: Some person, whose identity the Receiver the unknown Waukegan State Bank, informed that Receiver had had the press desk nearly week his for the sale the assets petition the bank and one article the that press carried was holding up matthe the inal trials July, when he stated cepted the the he the community taking without fear trust, and he had his criminal procivil ceedings never would. So far matters, he indifferent any suggested between disposition lation and any criminal the bank's assets prosecution. that the Receiver The fact for the has never seen of the assets the data which petition the upon completed must be the in buyers of the expense of assets. So many unauthorized and untrue have the press tions the result much deems proper ceiver the public what the outline far as the situation now concerned March for Previous several weeks, auditors of others than ploy detailed of the made reported their unaffairs have disclosed principals, the audit presented times the requested the Committee projected bank confer31st. but the prior no party conferences and the negocarried the the last the assets bank are the property the the because bank depositors, insolvent the hopelessly of the assets the iness concern of the depositors. the facts records session the Receiver are inspection depositor. an officer the Court in interested in and based such in and adopting procedure honestly protects depositors. On March 1932. Chicago represented the Receiver, behalf that they would bid sufficient pay the bank's preferred 100% general claimants, including depositors than preferred, cents the dollar, provided Receiver offer bank's assets for The preliminary that would not himself the until could about assets are worth. the expense, and largely behalf the proposed undisclosed purchasers,
Remove Receiver of Waukegan Bank Circuit Judge Appoints L. J. Wilmot to Serve As Bank Receiver in Waukegan Waukegan, Ill. — (AP) — Fred B. Whitney, was removed today as receiver of the Waukegan State bank and Circuit Judge Edward D. Shurtleff appointed L. J. Wilmot in his
BANK RECEIVER REMOVED BY COURT May Fred Whitney removed today receiver of the Waukegan State Bank and Circuit Judge Edward Shurtleff appointed Wilmet stead. Wilmot clerk the circuit Judge Shurtleff held that had failed to out receiver. Specifically, yesterday, the court pointed that Whitney should have gained defunct Waukegan notes given loan $450,000 Republic Bank Company Chicago. Judge
BANK RECEIVER OUSTED BY COURT Whitney was removed Thursday of the Waukegan State bank and Circuit Judge Edward Shurtleff appointed Wilmot court clerk in stead. Judge Shurtleff held that Whithad failed to carry out his ney duties receiver
ABANDON HOPE OF REOPENING WAUKEGAN BANK State's Attorney A. V. Smith of Lake was of of the Waukegan State bank, there no further of ing the affairs and reunder Mr. that the trial Miller, with as result of the of the affairs shortly before the would go ahead in the Circuit court at WauNorman O. of the State bank, vice of the the Republic in Chicago indicted with Miller, but obtained separate committee of the petitioned Circuit Judge D. Shurtleff to his removal of Fred Brown Whitney as receiver. The member asserted they full confidence in Whitney that he had been removed chance to face those who alleged he was not making progress in winding up the institution's affairs. Judge Shurtleff will pass on the petition later.
REDUCE BOND OF BANK RECEIVER The bond of $100,000 of Elmer Hulse, under the stockholder's liability the Waukegan State bank, today reduced Circuit Judge Ralph Dady to on the motion of Attorney Bernard Decker, Decker & Decker. The smaller bond will suffice, cording to the attorney. who said that the premium $500 to get the bond could reduced to the present
Free Chicago Banker of Conspiracy Count Waukegan, III., July William Miller, former Chicago banker, yesterday was acquitted charges of connection with the closing the Waukegan State bank year ago.
CONVICTION OF DIFFICULT TASK Lake County Fails In One Effort With the Acquittal of Former Bank Official. WAUKEGAN III., July 28. Lake county's efforts to convict bankers of Waukegan and Chicago of responsibility for the closing of the Waukegan State Bank appeared more difficult today after the acquittal of William H. Miller The former vice president of the National Bank of the Republic Chicago was freed of charge conspiracy defraud depositors of the defunct Waukegan bank by jury which deliberated only 90 minThe vote was 10 to two for acquiton the first ballot. The trial before Circuit Judge Edward Shurtleff of McHenry county lasted five weeks. was the second tempt by Lake county to assign sponsibility for the failure of the bank in June, 1931 similar charge against State Auditor Oscar Nelson was dismissed by State's Attorney Smith cently Judge Shurtleff previously had freed Nelson of charge misfeasance in office Smith to comment on possibility that George former chairman of the old National Bank of the Republic, and President Norman O. Geyer Cashier M. Connors of the Waukegan bank might tried similar charges pending against them. IF YOU are interested in getting the most for your money you'll find most worth while to read the Classified Ads
SERVE NOTICE ON BANK WITNESSES Deputy Sheriff Edgarton todispatched Chicago summons on for bank trials open Aug. before Circuit Judge Edward State's Smith bringing some the Chicago 18, and the others the following Those will be George H. Woodruff and Norman Geyer, indicted for conspiracy the failure of the Waukegan State bank.
APPEALS CASE AGAINST STATE BANK SPRINGFIELD Sept. The Supreme Court today was decide whether the defunct Waukegan State bank Lake County TreasurJay Morse entitled conpreferred claim. An appeal filed behalf of the receiver, Fred Brown Whitney and State Auditor Oscar Nelson, from decision the County Circuit Court holding money was entitled priority funds and of the The State bank closed June 1931.
SUPREME COURT TO DECIDE OF PRIOR CLAIM OF PUBLIC BANK DEPOSITS The supreme court Monday was asked to decide whether deposited in the new defunct Waukegan State bank by Lake County Treasurer Jay B. Morse was entitled to consideration as preferred claim. An appeal was filed on behalf of the bank, its receiver, Fred Brown Whitney and State Auditor Oscar Nelson, from decision of the Lake county circuit court holding the money was entitled to priority because represented undistributed tax funds and was property of the state. The Waukegan state bank closed June 18, 1931. London's gas supply is piped in more than 6400 miles of mains, and made by carbonizing 4,097,600 tons of coal annually.
Preferred Bank Claim of County Upheld in Appeal Feb. the Associated decree by the circuit court of Lake county which Jay Morse. county treasurer. preference in claim other deposits closed bank was affirmed by the supreme court today. The Waukegan State bank closed June 1931, and Morse Nov. 1931. county treasurer filed petition for preference and bill chancery held deposit of was general taxes and should be given preference the of asset. The bank's receiver filed an swer that Morse lost claim of preference because he did not assert his claim from the date of the closing of the bank until after the apreceiver. decree was entered finding should given general creditor. An appeal from the decree was taken to the
bank until after the appointment of receiver. A decree was entered finding $303.818 should be given preference over the general creditors. An appeal from the decree was taken to the supreme court. PREFERRED CLAIM IN DEFUNCT BANK UPHELD decree by the circuit court of Lake county which gave Jay B. Morse as county treasurer, preference in a claim over other deposits in a closed bank was affirmed by the supreme court today The Waukegan State bank was closed June 18, 1931. and Morse on Nov. 7. 1931. as county treasurer filed a petition for preference and later in bill of chancery held that a deposit of $304.200 was general taxes should be given preference in the distribution of assets. The bank's receiver filed an answer that Morse lost claim of preference because he did not assert his claim from the date of the closing of the