American State Bank (Ferndale, MI)

Episode Information

Episode UID
74106771575
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7410677 routing
Routing Number
74-1067
Start Date
March 13, 1931
Location
Ferndale, Michigan (42.461, -83.135)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
7aa798c7ef5b3f6a

Response Measures

None

Description

Closure in March 1931 led to receivership and permanent winding-up; embezzlement by a former president was later charged.

Events (3)
1. March 13, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank failed to open and was taken over/closed due to insolvency and later revelations of mismanagement/embezzlement.
Newspaper Excerpt
Four suburban banks failed to open for business today. They are the American State Bank of Ferndale...
Source
newspapers
2. December 21, 1931 Other
Newspaper Excerpt
Frederick W. Dalby ... was arrested Monday on the order of Judge Frank L. Doty for the alleged manipulation in an unlawful manner of the money of the American State Bank of Ferndale of which he formerly was the president. The bank closed its doors last spring and now is in the hands of [a receiver].
Source
newspapers
3. December 21, 1931 Receivership
Newspaper Excerpt
The complaint against him, signed by George P. Van Buren, the bank's receiver, charges two counts ... The bank closed its doors last spring and is now in the hands of receiver. PONTIAC, Dec. 21 ... Dalby surrendered himself voluntarily ... the bank closed its doors last spring and is now in the hands of receiver. George H. van Buren against Robert M. Allan, former president ... Mr. van Buren is receiver for the American State Bank of Ferndale.
Source
newspapers

Newspaper Articles (11)
1. March 14, 1931 The Cincinnati Enquirer Cincinnati, OH

Article Text

DETROIT BANKS CLOSED. Detroit, March 13 — (AP) — Four suburban banks failed to open for business today. They are the American State Bank of Ferndale, the American State Bank of Wyandotte, the State Savings Bank of Melvindale and the State Savings Bank of Lincoln Park. The Peoples Wayne County Bank announced that it is taking over the assets and assuming responsibility for deposits in the American State Bank of Detroit. The announcement said that "business will be conducted as usual at all branches of the American State Bank and at the main office." New York, March 13 — (AP) — A plan for organization of a new trust company to be known as the Mercantile Bank & Trust Co., to take over the assets of the closed Chelsea Bank & Trust Co., was approved today by Supreme Court. The plan was submitted by Joseph A. Broderick, State Banking Superintendent. Under the plan Chelsea depositors would be paid in full, Broderick said.

2. March 14, 1931 The Cincinnati Enquirer Cincinnati, OH

Article Text

118 EAST FOURTH STREET DETROIT BANKS CLOSED. Detroit, March 13 (AP) suburban banks failed to open for business today. They are the American State Bank of Ferndale, the American State Bank of Wyandotte, the State Savings Bank of Melvindale and the State Savings Bank of Lincoln Park. The Peoples Wayne County Bank that it is taking over assets and assuming responsibility deposits in the American State Bank of Detroit. The announcement said that "busiwill be conducted as usual at all branches of the American State Bank and at the main office." Interment daughter Mathias Paul and Requiem Sacred Heart Church, McQueen Monday Carrie Wich12, 6912 the Whetsel ave., March New York, March plan for organization of a trust company be known as the Mercantile Bank & Trust Co., take over the of the Chelsea Bank & Trust Co., was approved today by Supreme Court. The plan was by Joseph A. Broderick, State Under the plan depositors would be paid in full, Broderick said. NORMAL CAPACITY REACHED Birmingham, Ala., March Ryding, President the Tennessee Coal, Iron Railroad Company, disclosed today that operations of his company have reached 70 per cent capacity, which considered normal even in times of widespread industrial activity.

3. December 21, 1931 The Grand Rapids Press Grand Rapids, MI

Article Text

FERNDALE BANK CHIEF ARRESTED Surrenders to Face Embezzlement Count Involving $17,300. Pontiac, Dec. Frederick W. Dalby, Grosse Pointe Park was arrested Monday on order of Judge Frank L. Duty for the alleged manipulation in an unlawful manner of the money of the Amerlean State Bank of Ferndale which was formerly president Facts leading up to the arrest of Dalby were disclosed in the recent one-man grand jury investigation conducted by Judge Frank L. Doty. Dalby surrendered himself voluntarily here when notified he was wanted The complaint against him, signed by George P. Van Buren, the bank's receiver, charges two counts. One is the embezzlement of $17.300 from the bank, an offense that carries 20-year maximum and the other that he violated state banking laws, which there is maximum penalty of years. Dalby was arraigned Monday before Justice H. Russell Holland and demanded examination which was set for Dec. 30. He furnished bond. The Grosse Pointe man at one time was vice president and director of the American State Bank of Detroit and at the same time he headed the Ferndale bank he also was president of the American State Bank of Dearborn. The court found there was no evidence of criminal operations by local employes of the bank. He praised the manner in which Receiver George H. VanBuren has assisted in the probe. ANNOUNCEMENTS. Guards of Comstock hive, No. 503. hold an open pedr party Monday evening at their hall on Division-av.

4. December 21, 1931 The Kalamazoo Gazette Kalamazoo, MI

Article Text

Prominent Bank Ex-President Took $13,750 IIlegally, Charge. PONTIAC Dec. erick W. Dalby, Grosse Pointe Park. was arrested Monday on the order of Judge Frank L. Doty for the alleged in an unmanner the money of the American State Bank of Ferndale, of which he was formerly the president. The bank closed last spring and is now in the hands of Facts leading up to arrest of Dalby were disclosed in the recent one man grand jury Investigation conducted by Judge Frank L. Doty Dalby surrendered himself voluntarily here when notified he was wanted. The complaint against him gn by George Buren. the bank' receiver. charges two counts One from the bank is 3,750, which is on offensive that carries at 20year maximum penalty, and the other that he violated the state banking to which there is maximum penalty attached of five years. Dalby arraigned Monday before Justice H. Russell Holland. and demanded an examination which was set for m., Dec. 30. He furnished bond. Dalby well known in Detroit. where he has been engaged in banking and realty for years. He was at one time vice president and director of the American State Bank of Detroit, and at the same time he headed the Ferndale bank he was also president of the American State Bank of Dearborn. GAVE 3 NOTES. CLAIM He is charged with have given American State Bank of Ferndale three notes in December 1927 and January. 1928, which totalled $17,300 and which were given by the defunct St. Clair Haven Realty Company. which at that time had not existence for year, according to local officials. Judge Doty's statement. in which he ordered Dalby's arrest, charges Dalby by means of personal loans to himself and to individuals co-partnerships and corporations dominated by him. placed unsecured paper among the assets to the extent of upward of $170,000. although the capital and surplus the bank at no time exceeded $145,000.

5. December 21, 1931 The Flint Journal Flint, MI

Article Text

GROSSE POINTE BANKER NAMED EMBEZZLER Former President of Closed American State Bank of Ferndale Gives Self Up. IS RELEASED UPON BOND Frederick W. Dalby Well Known in Detroit Banking and Realty Circles. W. Dalby 1005 Grosse Pointe rested today on order in of the The closed its hands Facts leading the arrest Dalby recent one-man jury investigation conducted by Judge Frank Doty Surrenders, Is Freed Dalby surrenderd himself voluntarily notified he wanted. against signed by Gearge bank's charges the from the bank, fense that mum and the other that violated banking which maximum penalty attached of five years. Dalby today beustice Russell Holland demanded 30. bond. wellDetroit, engaged in and years. He was one president and director time State Bank the American Detroit and he headed the he president American bank Charge $17,300 Fraud He bank of Fernthe (Turn Column

6. December 21, 1931 The Muskegon Chronicle Muskegon, MI

Article Text

GROSSE POINT PARK BANKER IS ARRESTED Pontiac, Dec. Frederick W. Dalby, Grosse Pointe Park, was arrested today on the order of Judge Frank Doty for the alleged manipulation in an unlawful manner of the money of the American State Bank of Ferndale of which he formerly was the president The bank closed its doors last spring and now is in the hands of Facts leading up to the arrest of Dalby were in the recent one man grand jury conducted by Judge Frank L. Doty. Dalby surrendered himself voluntarily here when notified he was wanted. The against him signed by George P. Van Buren, the bank's charges two counts One is the embazzlement of $17,300 from the bank, an offense that car. ries 20-year maximum penalty and the other that he violated state banking laws, to which there is maximum penalty attached of five years. Dalby was arraigned today before Justice H. Russel Holland and demanded an was set for Dec. 10. He furnished $10,000

7. December 21, 1931 Lansing State Journal Lansing, MI

Article Text

FORMER FERNDALE BANK HEAD ARRESTED Former President Held by Order of Oakland Judge Investigating Case PONTIAC, Dec. 21 (P)-Frederick W. Dalby, Grosse Pointe Park, was arrested Monday on the order of Judge Frank L. Doty for the alleged manipulation in an unlawful manner of the money of the American State Bank of Ferndale of which he was formerly the president. The bank closed its doors last spring and is now in the hands of receiver. Facts leading up to the arrest of Dalby were disclosed in the recent one-man grand jury investigation conducted by Judge Doty Dalby surrendered himself voluntarily here when notified he was wanted. The complaint against him signed by George P. Van Buren, the bank's receiver charges two counts One is the embezzlement of $17,300 from the bank, an offense that carries 20-year penalty, and the other that he violated state banking laws, to which there maximum penalty of five years. Dalby was arraigned Monday before Justice H. Russel Holland and demanded an examination which was set for 1:30 p. m. December 30. He furnished $10,000 bond. The Grosse Pointe man is well known in Detroit where he has been engaged in banking and realty for years. He was at one time vice president and a director of the American State Bank of Detroit and at the same time he headed the Ferndale bank, he was also president of the American State Bank of Dearborn. He is charged with having given the American State Bank of Ferndale three notes in December 1927. and January, 1928 which totaled $17,300 and which were given by the defunct St. Clair Haven Realty company, which at that time had not been in

8. December 22, 1931 Lansing State Journal Lansing, MI

Article Text

Time Is Extended for Entries In Outdoor Yule Lighting Event for filing entries in the annual Christmas outdoor lighting contest been extended until 10 o'clock, December 23, the contest committee announced Monday in advising late entrants to file entries with the municipal department of recreation. Entries will be accepted by mail or phone until the last minute, but extension the deadline will granted since the judging will begin Wednesday night. Sixteen valuable merchandise prizes ARRESTED go to the householders whose displays are adjudged the best in each the five sections in which judging will be carried out. Lansing has been Former President Held by divided into four of these divisions, Order of Oakland Judge while East Lansing constitutes the fifth. Investigating Case In addition to the three merchandise prizes an additional cash prize PONTIAC, Dec. 21 (P)-Frederick of $1.00 will be awarded in each sec- W. Dalby, Grosse Pointe Park, was tion. One prize is to be reserved for arrested Monday on the order of the grand award, which will go Judge Frank Doty for the alleged the most attractive outdoor lighting manipulation in an unlawful manner display any of the five sections. of the money of the American State the premiums are welcome Bank of Ferndale of which he was household items that will make formerly the president. The bank appearance doubly welcome the Electric waffle closed its doors last spring and is now irons, egg flat and in the hands of Facts leadlamps are included in the list ing up arrest Dalby disawards. closed in the grand The grand prize, now on display jury investigation conducted by Judge with the others in showrooms the Doty United building West Allegan Dalby surrendered himself volunstreet, valuable floor lamp the tarily here when notified was indirect lighting was con- wanted. The against him tributed by the board of water and signed by George Van Buren, the electric light commissioners. Thirteen bank's receiver. charges two counts merchants of Lansing and East One the embezzlement of $17,300 sing, the Lansing Merfrom the bank, an offense that carries chants Association, are donors of 20-year maximum penalty, and the the remaining other he violated state banking Residential lighting displays enlaws, which there maximum tered in the contest be outdoor penalty of five years. Dalby was contestants are informed raigned Monday before Justice the rules committee Those Russel Holland an plays need not be elaborate nor costexamination which was set for tasteful exhibits December 30. He furnished $10,000 are fully as liable to capture prizes more expensive displays. The Grosse Pointe man well Trees, porch lights, known Detroit where he has been and other engaged in banking and for realty gested the best spots for decorative years was one time vice president and director of the American Indoor Christmas lighting, when State Bank Detroit and at the visible from the be same time he headed the Ferndale sidered by the judges in deciding the bank, was president of display effect.

9. January 15, 1932 Detroit Free Press Detroit, MI

Article Text

Allan, Aide Sued by Bank Receiver Suit was filed in Circuit Court Thursday by George H. van Buren against Robert M. Allan, former president of the American State Bank, for $1,250 Mr. van Buren is receiver for the American State Bank of Ferndale. His bill states that the bank holds defaulted 90 day promissory note executed by Allan on Feb. 9. 1931. Mr. van Buren also filed suit against Gordon Fearnley, vice president of the American State Bank. He claims that Mr. Fearnley executed 90-day note for $1,500 on Dec. 16, 1930.

10. March 7, 1932 Detroit Free Press Detroit, MI

Article Text

CHURCH BURNS ITS MORTGAGE Ceremony Climaxes Solicitation of Depositors' Claims on Closed Ferndale Bank When the American State Bank Ferndale closed its doors last May It listed among its assets $25,000 the First on Methodist Church of Ferndale. Among its liabilities were several thousands dollars in depositors' claims held members of the Methodist flock. Three weeks ago the church was groaning under mortgage when someone had idea. door-todoor campaign begun soliciting the in form of bank claims. It met with week $26,511 in claims had been collected After conference with the bank's receiver, George H. Van Buren. the mortgage was declared officially cancelled. Sunday night in the presence of the Rev. William Moulton, the pastor, and 500 parishoners and friends the mortgage was burned in the church auditorium. Judge Arthur Lacy, principal speaker the burning ceremonies, declared, to the best his knowledge, the first time any church this had taken such means to free itself of debt.

11. July 10, 1934 Detroit Free Press Detroit, MI

Article Text

Inquiry Clears Bank Receiver No Crimes Disclosed in Ferndale Probe FERNDALE, July 9-A report of the findings of one-man Grand Jury investigation the receiverships of the First State Bank and the American State Bank of Ferndale, made public Monday by Judge Forbes S. Hascall, of Birmingham, no mitted and that the petitions asking for the investigation were based rumors that could not be subam satisfied." Judge Hascall's report reads "after careful complete examination of the ords in this investigation, that no crimes have been and that petition setting forth statements that crimes were being committed, was based on which were not, and could not be substantiated.' is possible that the receiver, George Van Buren, has been guilty of some errors of judgment, but do not feel that there been any would justify his All the transactions of the were approved by the State Banking Department and by the Circuit Court of Oakland County; not one deal was made without this approval." In the report Judge Hascall stated that he satisfied the were operating minimum expense.