Highwood State Bank (Highwood, IL)

Episode Information

Episode UID
70210071591
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
7021007 routing
Routing Number
70-2100
Start Date
July 1, 1932*
Location
Highwood, Illinois (42.200, -87.809)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
b5d60b17383a5ff6

Response Measures

None

Description

The bank invoked a 60-day withdrawal notice rule during a run before closing in July 1932.

Events (3)
1. July 1, 1932* Run
Cause Details
Depositors were restricted by a 60-day notice requirement during heavy withdrawals prior to closing.
Measures
The bank applied a 60-day withdrawal notice rule to restrict the outflow of funds.
Newspaper Excerpt
depositors were forced to sign a 60-day bank order to get their deposits
Source
newspapers
2. July 1, 1932* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Allegations of insolvency and preferential withdrawals by directors prior to closing.
Newspaper Excerpt
The Highwood State bank closed July 14
Source
newspapers
3. September 3, 1932 Receivership
Newspaper Excerpt
placed in the hands of the receiver by the state auditor on Sept. 3, 1932
Source
newspapers

Newspaper Articles (7)
1. August 18, 1932 Waukegan News-Sun Waukegan, IL

Article Text

PROSECUTOR IS REFUSED RECORDS H. A. Smith, Receiver, Wants Approval Of State Auditor Or Judge Dady Before Acting On Col. Smith Demand. State Auditor Oscar Nelson late day instructed Receiver Smith resist the last any effort on part State's Smith take the records of the Highwood State bank. The receiver made his first statement today, and defense of the directors the closed bank. "The combined deposits directors exceeded the time the bank closed. This sum represented than ten per cent the entire posits. Defends Directors found Smith said "that there any director prior to the closing the bank. "There no grounds for criticizing the directors for withdrawals. "There one report to the state's attorney. according the newspapthat depositors were forced 60-day bank order to get their deposits, that the withdrew their when they searched record and find only two measly notices on file," Nelson Gives Advice Nelson advised him that necessary for the advise court just what records were wanted before he had produce them. if the court ordered. Smith said that this an inquiry at time would hamper the receivership, that the examiners from the auditor's office now are getting the records together and compiled for use. least ask for delay in court tomorrow that this work can completed," Smith said. Smith balked Col. Smith's inquiry today when he flatly refused the records over Charles Bond, auditor for the prosecutor. Smith took the position that he did not have the right to turn the over outside out the Oscar auditor public accounts. Circuit Judge Smith unable Nelson. from his Springfield his Chicago office ing the morning Appear in Court Colonel Smith the receiver for him appear before Judge Dady o'clock morning The circuit judge approves all ders, them. receivthe matters of closed state the consent of the court, Col. Smith he would be permitted to The inquiry actually opened yesterday delegation of Highwood residents told directors the closed and relatives shortly before the closed These depositors said restricted because bank on the day notice Plans Investigation In addition Smith said would investigate to determine the bank operated while insolvent. said he could offer no proof either complaint his auditor amined the records, which would take days. City Lyle Gourley, of Highland Park, who acting mayor (Continued on Page 3, Column

2. August 19, 1932 Chicago Tribune Chicago, IL

Article Text

RECEIVER FIGHTS PROBE OF CLOSED BANK BY AUDITOR H. Smith of Wilmette, receiver the closed Highwood State bank of Highwood, refused yesterday to permit an auditor State's At torney Smith of Lake county to examine the bank's books as preliminary possible grand jury vestigation. The attorney sought order from Circuit Judge Ralph J. Dady at to compel Receiver to give him to records. The matter will be gued today. The ordered the in by his Bond, depositors in the bank that shortly before the and of their their itors required to give sixty days' Smith said these charges unfounded.

3. August 19, 1932 Waukegan News-Sun Waukegan, IL

Article Text

PROSECUTOR TO EXAMINE RECORDS Judge Dady Grants Petition To Investigate Records Of Closed Bank; Start Probe Monday. State's Attorney V. Smith today was given right make examination the records Highwood State bank by Receiver Col. Smith will send Assistant State's Attorney George Gaughey and Charles Bond, bank Monday. They need days, he advised the ceiver, their That time, he said, would sufficient either disprove the made him certain Highwood depositors that three rectors and their relatives withdrew their accounts shortly before the bank closed July Petitions Court. Col. Smith presented formal tition the court asking for der on Receiver Smith turn over the records. Attorney John Logar Boyles, counfor was prepared sist such an order, but Judge Dady, seemingly provoked. special grand jury investigation that would the undisputed risdiction over the bank and records. don't understand the here. When complaint the state's attorney, right should investigate. From the statements made petition state's attorney the going to give special grand jury this Judge Dady said. Col. Receiver Smith and Boyles then went where agreed two would sufficient Bond McGaughey to check the records satisfy prosecutor regarding the complaints made The petition set forth that the ceiver agreed that could examine the records, but that he changed his this agreement. It further forth special grand jury costly taxpayers and that the results could simply permitting the investigator to go over the records.

4. August 23, 1932 Waukegan News-Sun Waukegan, IL

Article Text

JURY PROBE OF HIGHWOOD State's Attorney Says That Findings of Auditor Warrant Investigation; Two Directors Withdrew Funds. The October grand jury will called upon probe the affairs defunct State bank, day the the first work of his auditor in the "Considerable evidence has been located that grand jury should Smith said He refused enlarge any tent on this comment except his auditor, Charles Bond, and Assistant State's Attorney George McGaughey, revealed definite proof from the records the bank least of the directors stantial to the closing of the institution. "These withdrawals even extended relatives substantial amounts. By substantial would more than $1,000," prosecutor said. Auditors Through Today. McGaughey and Bond comtheir work in peering into records the bank this afternoon, and then will branch into another phase the investigation. "There are number witnesses who will be but say who these witnesses for fear might hamper the work." Col. Smith said. The Highwood State bank closed liability of approximately $200,000, and the complaints first werel odged with the state's attorney by depositors of the bank who charged that certain directors withdrew their money and refused to general depositors get their's by plying 60-day applicable under banking rules. To Probe Col. interested another phase the bank also; whether for sometime the time closed by prior the auditor. Commissioner Lyle Gourley of Highland Park. who acting mayor there present, said that an investigation would not reveal criminality. the directors continued to work for best public interest the He president the bank. Receiver statelast that the deposits directors more than per cert the entire deposit liability.

5. December 8, 1932 Waukegan News-Sun Waukegan, IL

Article Text

WOULD PAY OFF SMALL CLAIMS Highwood Bank Receiver Asks Permission To Pay Children Their Small Deposits. Permission of the court to pay off 515 claims Highwood State bank aggregating $540.38 today was asked Receiver H. Smith through his attorney. John Logan Boyles, of Circuit Judge Ralph Dady. Smith explained that all of these claims were than and that to carry them through liquidation would an added expense to the banks because would call for the same amount of bookkeeping legal work as larger claims. These accounts. nearly every stance. belong to children and the receiver hopes disburse to the youngsters before Christmas Judge Dady set the last date file objections procedure Dec and on that date hearing will the objections if any are filed Boyles explained.

6. January 9, 1933 Waukegan News-Sun Waukegan, IL

Article Text

APPROVE SMITH AS BANK RECEIVER Approval of H. Smith of Wilof the North Shore Trust of Highland Park that failed early today was asked bill filed circuit court by State Auditor Oscar Nelson Smith now receiver of the Highwood State bank.

7. August 26, 1935 Waukegan News-Sun Waukegan, IL

Article Text

HIGHWOOD BANK ISSUES DIVIDEND Ten Per Cent Allotment Mailed to Creditors This Week Amounts to $16,176.33. Creditors of the Highwood State bank are to receive a 10 per cent dividend this week, according to a court order signed Saturday by Judge Ralph J. Dady. This dividend will bring the total distribution to creditors of 55 per cent of the total claims allowed. The petition for the court order to permit the payment of the new 10 per cent dividend by Receiver William L. O'Connell shows that all preferred claims against the bank have been paid in full and that $161,763.30 of bank deposits and other claims were allowed. The Highwood bank was closed in the summer of 1932 and was placed in the hands of the receiver by the state auditor on Sept. 3, 1932. Since the receivership two previous dividends of 10 per cent each and one of 15 per cent were paid. Checks By Mail This new 10 per cent dividend is to be distributed to the creditors in the form of checks to be mailed within the next few days by Deputy Receiver H. E. Robertson. The total distribution of the dividend will amount to $16,176.33. The payment of the dividend has been approved by the state auditor. With the payment of the Highwood State bank dividend, the state bank receiver in Lake county will complete the distribution of dividends to depositors and creditors of two defunct banks this month. Checks for a 10 per cent dividend were mailed by the receiver to creditors of the Libertyville Trust & Savings bank on Aug. 15. Trustees of the assets left by depositors of the First National bank of Waukegan following the bank holiday in March, 1933, have also made a dividend payment this month. On Aug. 15, Ernest Gold, secretary to Trustees Charles N. Steele, Dr. Frederick E. Besley and Lee Murphy, of the assets, distributed $225,000 to depositors of the First National bank in the form of a 20 per cent dividend.