First National Bank (Chicago, IL)

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Episode Information

Episode UID
801590
Episode Type
Run → Suspension → Reopening
Bank Type
national
Bank ID
80 national
Charter Number
8
Start Date
June 25, 1932
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
433905be0748ae31

Response Measures

Accommodated withdrawals, Capital injected, Partial suspension, Full suspension

Other: The bank president, Melvin Traylor, personally appeared on the banking floors to plead for faith and stem the run. Additionally, police were used to drive away crowds and stop runs.

Clearinghouse involved: Yes (loan, examination, or other measures)

Description

The bank experienced an incipient run in June 1932 which was stemmed by the president's speech, and later suspended during the March 1933 Illinois/Federal banking holiday before reopening.

Events (5)
1. June 22, 1863 Chartered
Source
historical_nic
2. June 25, 1932 Run
Cause
Rumor Or Misinformation
Cause Details
A plot for a demonstration against the banks laid by enemies and anonymous telephone messages.
Random Run
Yes
Random Run Snippet
plot by enemies and anonymous telephone messages to frighten depositors; corrected by president's appeal
Measures
President Melvin Traylor appeared on the banking floor to plead for faith; bank maintained high liquidity.
Newspaper Excerpt
stemmed an incipient run on his $25,000,000 First National bank... today by appearing on the banking floors and pleading for faith.
Source
newspapers
3. March 4, 1933 Suspension
Cause
Government Action
Cause Details
State-wide banking holiday declared by Governor Horner, followed by the federal holiday.
Newspaper Excerpt
A general three-day bank holiday affecting all Illinois banks was ordered early Saturday... Melvin A. Traylor, president of the First National bank, made the announcement.
Source
newspapers
4. March 10, 1933 Other
Newspaper Excerpt
First Union Trust and Savings Bank, the affiliated of First National, had been merged into the larger institution
Source
newspapers
5. March 13, 1933 Reopening
Newspaper Excerpt
With Chicago banks reporting their first day under new government regulation as 'successful,' financial institutions... reopened today.
Source
newspapers

Newspaper Articles (24)
1. June 12, 1931 Lincoln Journal Star Lincoln, NE

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wholesale withdrawals and we can safely say the trouble mainly past. Many patrons are returning their money to the banks from which they withdrew it in panic few days ago.' Mob hysteria was responsible for the situation which caused the twenty-seven banks to close, Traylor said. Other banking leaders said the nature of Chicago's population brought about the panic. Chicago has a high percentage of foreign born residents and many of them do not understand the American banking system. Most of them are thrifty and many of them of nervous temperament. Traylor's part in bringing order out of the financial unrest included directing the merger of the First National and its affiliate. the First Union Trust and Savings, with the

2. June 12, 1931 Lincoln Journal Star Lincoln, NE

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wholesale withdrawals and we can safely say the trouble mainly is past. Many patrons are returning their money to the banks from which they withdrew it in panic a few days ago. Mob hysteria was responsible for the situation which caused the twenty-seven banks to close, Traylor said. Other banking leaders said the nature of Chicago's population brought about the panic. Chicago has high percentage of foreign born residents and many of them do not understand the American banking system. Most of them are thrifty and many of them of nervous temperament. Traylor's part in bringing order out of the financial unrest included directing the merger of the First National and its affiliate. the First Union Trust and Savings, with the

3. June 25, 1931 The Northwest Enterprise Seattle, WA

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LOAD OF MONEY PILED IN FRONT OF CUSTOMERS the past two weeks Chicago suffered the worst financial flurry in its history. Twenwhite banks, several of them with heavy deposits, closed their doors within space three days. The disaster began with the merof the State National banks, institution, with the First National. Half dozimportant institutions which the Foremans controlled were foreed to Depositors throughout the city became panicky. Runs began on the smaller institutions, twenty-four of which closed. in Southside Close Colored people, scarcely recovering from the Binga, Banker's State, and Citizens Trust crashes, suffered severely. The Lincoln State, and State Streets, with $1,000,000 deposits, a good portion of which said to have belonged to colored peo(Continued on Page

4. December 12, 1931 The Macon Telegraph Macon, GA

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HOGAN FILES PETITION Jasper Thomas Hogan, former the defunct yesterday UnitStates and $5,220. the Among Mr. Hogan's liabilities obligation of the First National bank Chicago. secured There obligareceiver of Hatcher, Turpin All went jail default $1,000

5. June 26, 1932 Albuquerque Journal Albuquerque, NM

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STEMS RUN ON HIS BANK CHICAGO, June 25 Traylor, considered by many democratic presidential timber, nation stemmed an incipient run on his his First National bank The Union Trust and Savings bank Saturday pearing the banking floors and for faith.

6. June 26, 1932 The Los Angeles Times Los Angeles, CA

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FOUR IN CHICAGO AREA CLOSE CHICAGO, June additional banks the Chicago been closed. They the Chicago Bank Commerce, deposits about South Ashland with posits about $110,000; First tional Bank deposits about and Northbrook State Bank of Northdeposits about Chicago Bank Commerce State

7. June 26, 1932 The Index-Journal Greenwood, SC

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Melvin A. Traylor Stops Run On Bank By Timely Appeal CHICAGO, June A. Taylor, considered by many Democratic presidential timber. stemmed an incipient run on his $25,First National Bank and $10,000,000 First Union Trust and Savings Bank today by appearing the banking floors and pleading faith.

8. June 26, 1932 The Buffalo Times Buffalo, NY

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APPEAL BY TRAYLOR CURBS RUN ON BANK Head of Two Institutions Address Patrons CHICAGO, June 25 (A.P.)—Melvin A. Traylor, considered by many as Democratic presidential timber, stemmed an incipient run on his $25,000,000 First National bank and $10,000,000 First Union Trust & Savings bank today by appearing on the banking floors and pleading for faith. Traylor, who is president of both banks—among the three largest in the city—said a plot for a demonstration against the banks had been laid by "enemies."

9. June 27, 1932 The Daily Alaska Empire Juneau, AK
Article from The Daily Alaska Empire, June 27, 1932

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TRAYLOR STOPS RUNS ON BANKS Possible Presidential Candidate Acts Quickly in Chicago CHICAGO, Ili., June 27.-Melvin A. Traylor, considered by many as a Democratic Presidential candidate, stemmed an incipient run on his $25,000,000 First National Bank and $10,000,000 First Union Trust Savings Bank last Saturday by appearing on the banking floors and pleading for faith in the two institutions. Traylor is President of both the banks. He charged a plot had been laid by his enemies, but the banks put themselves in a highly liquid condition and the crowd then withdrew. The banks opened as usual this morning.

10. June 27, 1932 The Buffalo News Buffalo, NY

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LOAN OF $13,600,000 TO CENTRAL APPROVED WASHINGTON June 27 commission Monday authorized Reconstruction Fito the New York company The loan for three years and interest and due June 30, $4,895,037 due July $6,509,719; and Aug $1,867,817 This the second loan received by the In April the approved loan for already way in city TRAYLOR STEMS BANK RUN CHICAGO 27 (AP) Melvin A Traylor by many Democratic timber stemmed an incipient run the $25,000.000 First National and $10,000,000 First Union Trust & bank by appearing on the banking floors and pleading for faith PETITION GAINS FAVOR NEW YORK. June 500 had been placed on the New York Stock exchange on Saturday, July 2.

11. June 29, 1932 The Daily Worker Chicago, IL

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DRIVE WORKERS AWAY FROM CLOSED BANKS IN CHICAGO Three Banks Fail Since Republican Convention Announces Decrease in Failures CHICAGO, with clubs drove people away and helped stop runs on two of the largest banks in the city, the First National and the Continental Illinois, which closed their doors, temporarily, at 11 o'clock Friday morning thus preventing people from getting their savings out. The Chicago News on June that banks have closed their doors here within the past month. On June 14th the day that Senator Dickinson made the keynote speech at the stating, "Bank failures diminished, thus preserving the resources of millions depositors", three banks failed here and since then up to Friday, POLICE ATTACK June 24th, 23 additional banks failed with total deposits of $30,539,000. All over the have been JOBLESS IN AL trying to drive the people away who tried to get their funds from banks still open. Heavy runs are being CAPONE'S TOWN made by the panic stricken people. receiver asked for the Cook County Trust Company which was controlled by the same officers of Beat Up Women with the Phillip State Bank which failed Black Jacks Who June 21st. Charges were made that the officers of the Trust Company Demand Relief transfered trust funds to the bank although knowing that the bank Worker insolvent CICERO. meeting called Moe Rosenberg, west side democrathe Cicero Unemployed Council tic sold the Cook County Avenue and 14th Street Trust Company to the Phillip Bank. broken up by the police. Some of through the sale of $200,000 prefered the Chicago Red Squad, the county stock and 10,000 shares of common highway police and the local cops stock. As we go to press news was leased five more banks having veritable wave bank failures wiped out the hard earne savings of thousands depositors in Chicago during the last two weeks. The wave was set in, it stated here, by the failure of the 12 Bain Banks. These banks loaned many thousands of dollars to relatives and political any security. being disclosed at the trial of the Bains now in progress. disclosed how many workare being deprived of their savings through these continued failures which expose the utter deception which General Dawes attempted to smuggle in when he stated, upon turning to Chicago, that the financial structure of the country getting to stable.

12. July 1, 1932 The Producers News Plentywood, MT
Article from The Producers News, July 1, 1932

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Run on Chicago Banks The closing of the First National Bank and the First Union Trust and Savings Bank of Chicago on June 26 thru a run was averted by a speech of Melvin Traylor, president of both banks, in which he told depositors to "have faith." Four banks which closed on June 26 brought the total of Chicago banks which closed thus far this month to 39. These are among the largest banks in Chicago. Traylor's speech averted for a while the crash which is going to strike severely in the near future.

13. July 28, 1932 The Sheboygan Press Sheboygan, WI

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progress here" and "considerable runs on jugs in loop." Melvin A. Traylor, president of the First National bank and former head of the American Bankers association, blamed the "radicals." He said he believed the "plot to be nation-wide," and that he had reports from many cities that a similar system was used in frightening depositors by anonymous telephone messages. Other Chicago bankers told how radicals opened 300 to 400 bank accounts and then withdrew them simultaneously, spreading news of the "run."

14. August 4, 1932 The Miami News Miami, FL

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Horoscope What Tomorrow Means to You The BY HELEN ROWLAND EX-LOVERS Alas, for the fragility of these romances! Like poplar trees and morning glories, they are good," they die young To man, every little summer love-affair is just another woman, leaf the Book of Memory "LEO The Fates and will be man at gerheads Aug. and are apt receive jolt, which will force you to realize the necessity of being the worries There BORN but within family There be married. The girl will usually may cause regret the laxity find him Marriage doesn't UNITE him to parental married merely ATTACHES him to of way. couples may the of courtA bigamist is merely an altruist, whose misguided enthusiasm has led they wish have and to the shoulder the matrimonial responsibilities pair of bachelormate. Children this will They will slightly highly and capable affection the They jolly sympathetic friends and They will have set life. Your born the qualities your and You have good spirit the feelings and interests your fellows. able establish real contact the minds others, and are usually peace with your little world. You tact tience, all ing good friend, There nothing slovenly about habits, you lack neither Success for not from paid usefulness. but assets. brain in curate orderly files. You cannot motiveless life, and must peg which hang your efforts. effort never keep you from your goal, though you have "try There is great deal gentleness nature. be man your make nurse sickness within the outside help available. The Aug. 5th woman her delight visit, and whether rich state has good 1932. 500,000 gallons fuel its prison farm at Raiford the Standard Oil of Kentucky BEDTIME STORIES approximately $20,000. board of institutions called for for furnishing three the supply system at state hospital for the insane Chattahoochee. coroner's jury night verdict that Lester Youngblood, 18, to his death driven carelessly by Douglas, Gainesville charged manslaughter and posted $5,000 TALLAHASSEE The supreme court remanded E. Martin. Orange county tax collector, Sheriff Frank Karel's custody await trial criminal court record Orland charges embezzling more than $12. 000 excess fess from the county. The court's order based habeas corpus action brought by Martin in effort escape trial on the charges. BANK RECEIVER SUES CHICAGO. Aug. receiver for the First tional bank of has filed suit federal accounting from J. Fred McGuire, Chicago realtor.

15. March 4, 1933 The Buffalo News Buffalo, NY

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ILLINOIS BANKS ORDERED TO CLOSE FOR THREE DAYS CHICAGO, March 4 (AP).—A general three-day bank holiday affecting all Illinois banks was ordered early Saturday after an extended conference between leading Chicago financiers and Gov. Henry Horner. Melvin A. Traylor, president of the First National bank, made the announcement. The order will be in effect Saturday, Monday and Tuesday. Traylor said that the three-day closing order is mandatory upon all banks in Illinois by virtue of a proclamation signed by Gov. Horner. The proclamation said that the banks must reopen Wednesday, March 8, but that withdrawals may be limited to 5 per cent. during the following eight days. A statement by Gov. Horner said: "For the past several days I have been in constant conference and communication with representatives of the banks of Illinois in an effort to determine upon the best course of action in the present emergency. It has been hoped and believed that, in spite of bank holidays in states surrounding Illinois and throughout the country, the banks of this state would be able to withstand the strain that has been placed upon them. This was my viewpoint until this hour. "Friday I issued a statement to the effect that a bank holiday did not seem to be necessary in Illinois at that time. The greatest effort has been made to avoid such a necessity. The banks in Chicago alone have paid out more than $350,000,000 in the past two weeks in an effort to stem the tide. It has also been expected that the national government might take some general action, but no word in that regard has been received by me. The picture has materially changed since Friday. "Finally, after a day of unprecedented withdrawals from the banks of this state, and at the request of the Chicago Clearing House banks and the Illinois Bankers' association and with the approval of the Federal Reserve Bank of Chicago, I now deem it essential to the welfare of our citizens, and necessary for the protection of depositors who have not withdrawn their funds, to declare the bank holiday referred to in my proclamation this day issued." The Federal Reserve bank of Chicago joined the holiday and no gold was exchanged Saturday. It was said it would not reopen "until conditions warrant."

16. March 6, 1933 The Buffalo News Buffalo, NY

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ILLINOIS BANKS ORDERED TO CLOSE FOR THREE DAYS CHICAGO, March 5 (AP).—A general three-day bank holiday affecting all Illinois banks was ordered early Saturday after an extended conference between leading Chicago financiers and Gov. Henry Horner. Melvin A. Traylor, president of the First National bank, made the announcement. The order will be in effect Saturday, Monday and Tuesday. Traylor said that the three-day closing order is mandatory upon all banks in Illinois by virtue of a proclamation signed by Gov. Horner. The proclamation said that the banks must reopen Wednesday, March 8, but that withdrawals may be limited to 5 per cent. during the following eight days. A statement by Gov. Horner said: "For the past several days I have been in constant conference and communication with representatives of the banks of Illinois in an effort to determine upon the best course of action in the present emergency. It has been hoped and believed that, in spite of bank holidays in states surrounding Illinois and throughout the country, the banks of this state would be able to withstand the strain that has been placed upon them. This was my viewpoint until this hour. "Friday I issued a statement to the effect that a bank holiday did not seem to be necessary in Illinois at that time. The greatest effort has been made to avoid such a necessity. The banks in Chicago alone have paid out more than $350,000,000 in the past two weeks in an effort to stem the tide. It has also been expected that the national government might take some general action, but no word in that regard has been received by me. The picture has materially changed since Friday. "Finally, after a day of unprecedented withdrawals from the banks of this state, and at the request of the Chicago Clearing House banks and the Illinois Bankers' association and with the approval of the Federal Reserve Bank of Chicago, I now deem it essential to the welfare of our citizens, and necessary for the protection of depositors who have not withdrawn their funds, to declare the bank holiday referred to in my proclamation this day issued." The Federal Reserve bank of Chicago joined the holiday and no gold was exchanged Saturday. It was said it would not reopen "until conditions warrant."

17. March 9, 1933 Argus-Leader Sioux Falls, SD

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CHICAGO'S BANKS READY TO REOPEN Await Decision of Congress and State Is Withheld March ing of banks awaited the of national and state holidays and action of conBank employes were working on plans to open whatever may be forthfrom Ed banking business today was still the basis dictated by the He Scrip certificates had been prepared for the ciation, but under the new plan expanding the currency they probwill not be used. The banks handled transactions for produce, livestock, and other foodstuffs only in cash. The Chicago livestock exchange basis of holding drafts and checks pending reopenof the banks Many produce houses doing likewise The banks handled no drafts or checks.

18. March 10, 1933 Fort Worth Star-Telegram Fort Worth, TX

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$700,000,000 Bank Formed in Chicago CHICAGO, March 10.—Out of two affiliated Chicago banks arose Friday a single institution which its officials said had assets amounting to $700,000,000. It would open, they said, with the lifting of the presidential proclamation. The move was announced by Melvin A. Traylor, president of the First National Bank. He said the First Union Trust and Savings Bank, the affiliated of First National, had been merged into the larger institution "in view of recent developments and the prospect that banks which are members of the Federal Reserve System may enjoy wider privileges.

19. March 10, 1933 The Belleville News-Democrat Belleville, IL

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Horner Issues mation to Conform With Roosevelt. Chicago, March banks closed today der another "harmonizing" proclamation Governor Henry Horner. The Governor said that his third proclamation issued last night because of action of our tional government of this date and also necessity of action with national action, near may Other developments in the Illibanking situation of the First tional Bank of Chicago and filiate, the First Union Trust Bank, state institution. legislation to give the Governor powers insurance affairs during the bank holidays. of hoarded gold to Chicago Federal Reserve Bank. of Board of Trade rockets $2,000. meat prices. Melvin Traylor, president First National Bank and affiliate, said the decided upon of the recent developments and the prospect that banks which members of the Federal Reserve system enjoy wider privileges." The Union Bank for number has not been member of the Federal Reserve Bank, depending on its parent The combination makes the First National Bank the second largest Chicago with resources of proximately Governor Horner and Ernest Palmer, Superintendent of Insurfor Illinois, conferred to draw up proposals garding insurance companies the bank holiday which will the Tuesday session the State Legislature. The posals, explained, will policy holders, as well under farm and home gages held by insurance companies. bill provides that the ernor shall have authority to stay foreclosure proceedings and grant extension time for the payment mortgage indebtedness farms and homes where such mortgages held or owned by insurance companies,' Palmer said. Federal Reserve Bank officials here said "noticeable" amount had been returned but they did not estimate the In two sales of Board of Trade seats the price jumped from $6,000. Traders erally regarded this an expression of confidence in the future. Quotations on Hogs were 50 cents lower lambs cents and steady to cents under the highs earlier this week. THE PROCLAMATION Chicago, March lowing the text Governor Horner's proclamation issued last night: In of the action of our tional government of this date necessity harmonizing state action with national action, near may to the holidays during which banks and trust companies are be closed for the transaction of business Henry Horner, of the state of Illinois, hereby declare, proclaim and direct that lamation of March third further modified amended that shall provide that no bank company shall be open the transaction trust business prior to company 1933. Until take further action, other provisions of the proclamation issued by me March third, shall remain force. should clearly understood this time that no proclamation heretofore made by me shall permit any Illinois state bank trust company transact any business, any which violation of the this state Dated Springfield, Illinois, this ninth day March, at Henry Horner, Governor nois.

20. March 14, 1933 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, March 14, 1933

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CHICAGO BANK DISTRICTS ARE ALL REOPENED The Runs On Banks Were to Deposit Money and Not to Take It OutGold Still Coming Back Chicago, March 14-(UP)-With Chicago banks reporting their first day under new government regulation as "successful," financial institutions in 18 clearing house cities in the seventh federal reserve district reopened today. Deposits were greater than withdrawals as "runs" in the reverse order were registered at Windy City banks yesterday. State street merchants and others indicated the greatest buying since the preChristmas holidays. Two other developments held financial attention besides the gradual reopening of banks: The resignation of Stanley Field, nephew of the late Marshall Field, as director and chairman of the board of the Continental Illinois National Bank and Trust Company Payment in full of depositors in the Security bank of Chicago and the Second Security bank, both of which are going out of business. Cities in which banks of the seventh federal reserve district reopen today include: Illinois-Champaign, Danville, Decatur, Peoria. Rockford. Indiana-Fort Wayne, Indianapolis, Terre Haute. Iowa-Des Moines, Mason City, Sioux City. Michigan-Battle Creek, Detroit, Grand Rapids, Kalamazoo. Wisconsin-Green Bay, Milwaukee, Sheboygan. Field's resignation as a leader of one of the "loop" banks resulted from his indictment February 27 in connection with the defunct corporation securities company, a unit in the toppled Insull financial pyramid. Field also resigned as a director of the Commonwealth Edison company and the Public Service company of Northern Illinois. James Simpson, chairman of the utility companies, accepted the resiginations "with the greatest reluctance." Simpson succeeded Samuel Insull, Sr, now a fugitive in Greece. Deposits of $4,000,000 were being paid out by the liquidating security banks. Approximately $8,000,000 in gold was turned into the Federal Reserve bank yesterday. The Chicago Board of Trade and other local exchanges which closed during the banking crisis are expected to reopen before the end of the week, it was said. Another protection, this time for life insurance policy holders, was taken when Ernest Palmer, state superintendent of insurance, ordered that companies operating in Illinois could not make policy loans or pay cash surrender values. Death benefits must be paid promptly, Palmer said.

21. April 27, 1933 Herald and Review Decatur, IL

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TEACHERS in Besiege Trust Company DEMAND RELIEF bankofficials shafts song. 3,000 militant school their anger the Icop Wednesday siege the Chicago Trust company and the First National bank. precipitated former when police tried to their advance. From the bank, they marched city the school board holding its meeting. Like major military offensive, the march began. Commanding general was TeachJohn who auto equipped with amplifying apparatus, his followers martial music reminding them their impelling purposes. was the second teachers have staged their annual spring cation period. Police Wield Clubs The challenge they hurled before offices of the Trust company today "Pay your general melee resulted and pedestrians felt the of the being jostled pushed. Traffic halted for the Some of the teachers forced their way into company's offices. milled about street and doors. clubs bring about some semblance of many them scratched and their Several teachers seriously, and several women fainted The demonstrators clamored for audience General Abel Davis, chairman the board of Trust company and shouted taxes on much of property controls. Referred to Solons committee teachers received by Holman president Trust company. told have been property could not present pay their to the remedy Pettibone them. then proceeded to the First National see president. Traylor. Despite carefully guarded got operations suspended they paraded about, chanting: Traylor not appear and president heckled into teachers then marched to the school board them and speak their views. All against the City Hall School Wallace Cald original proponent of plan close schools from May declared had students themselves would about shutdown by walking from their next The board voted to defer action the proposed closing adoptEdward Kelly's legislative relief program. teachers attempted storm meeting the city council and police cordons the aldermanic teachers mitted addressed the and councilmen he and of the teachers permitted to enter.

22. August 3, 1933 The Thomson Review Thomson, IL

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As Championship Form CHICAGO BANK AGREES TO GIVE CARROLL BANK POSITORS LOAN OF 15 CENT was made Carroll Saturday that First tional Bank has agreed lend percent the liquid assets of the First Carroll County State bank. This will be money paid percent dividend who agree the monto pay for stock the new bank which being organized Mt. Carroll. Officials the Carroll County State Bank, which has been closed since the March holiday, have plied to the Finance Corporation for loan, and representative of the expected Carroll soon. Three hundred the 500 shares the new bank have been sold. FARM AND STERLING ALL WIN SUNDAY GAMES INDIAN HEAD LEAGUE The Standings Fulton Savanna Bureau Sterling Shannon Thomson .300 Lanark Leaders the Indian Head leagretained their positions, Sunday, Fulton showing championship form the Whiteside boys the lowly Lanark Blues by Savanna took from Mt. Carroll; farm bureau had little trouble feating and and Sterlhard pressed eke over Lanark Pushed Lower Cellar The Lanark Blue Sox before the offensive fensive power the league Fultonites Sunday, and had take to beating most manner. seven rally first inning started the with the winners scoring the first six frames. Seven along with 18 hits garnered by Fulton, them the gave dozen and five Fulton 732 421 Lanark Shear and Wilkins; Cole and Garland. Savanna Just Manages Win five rally the eighth ninth made possible few solid and couple bobbles by the lads county seat the Brewers victory over the Mt. Carroll Cubs Savanna Sunday. The winners took the lead in the first three nings, only to have Mt. Carroll out front with three run batting spree the fifth and two affair in the sixth The Savandefense tightened then, and the county-seat another across the platter. Score by innings: Savanna Carroll Summary: Home runs, Adams, King. Three base Two hits, Reed, Bashaw, Hanna. Strautz. Stolen base, King, Grimm. Passed balls, Bashaw Wild pitch, Schaut. Struck out, by Ginie Schaut Bases balls off OR Cchaut Winning pitcher, Ginie. Losing pitcher Schaut Umpires, Crouse and McGrath. Time of game, 2:05. Eighth Wins for Sterling The Shannon entry the Indian Head league enjoyed comfortable lead on their diamond until the eights inning staged the Sterling when the dus. had cleared front The engineered the their balf the 8th fell and the game ended and county team the short Sterling. and Johnson led The Shannon and mier. the registering three Erdmier. Shanmon 001 Shannon Batteries: Thomson took one run lead the second inning were unable hold for long the Sunday, heavy hitting Farm Bureau taking an victory when the game was over. The boys from the melon village played ball most the time. the slugging Farm Bureau players were much handle, and the winners poked out 14 solid smacks. Manager Ware and his boys turned on full power the fifth, sixth and seventh, seven the eight runs. B. Ab Hawkins Royer Kensinger ef 2b 3b Goble 1b Weymeier 1b Sturtevant Rahn Ware Rahn Leavens Totals Holland 2b Lewis Tousley Hartman Groharing Brown Ores 1b Totals Score by innings: 020 Summary: Two base Royer. Leavens. Stolen base. Hawkins Struck out by Rahn Leavens Leavens Brown Winning pitcher Losing pitcher. Brown.

23. January 10, 1934 Chicago Tribune Chicago, IL

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FIRST NATIONAL STOCK SALE TO RFC SANCTIONED Traylor Doubts U. S. Will Seek Control. BY THOMAS FURLONG. Stockholders of the First National Bank of Chicago ratified the sale of $25,000,000 of preferred stock to the Reconstruction Finance corporation and reduced the board of directors of the bank from 44 to 25 members. The management's proposal to sell preferred stock to the RFC was approved overwhelmingly. Questioned by stockholders, President Melvin A. Traylor said that he was not concerned over the possibility that the sale of the stock would mean RFC dictation of the bank's management. "If the RFC elected to do so, at the next annual meeting," he said, "it could control the selection of officers of the bank. If I had any fear that we would lose control, provided we conduct the bank properly, I would be concerned. If they are satisfied with our management they will be content to let us run the bank." Woman Stockholder Fears Control. Among the stockholders who questioned Mr. Traylor about the possibility of the RFC taking control of the bank through the preferred stock was Mrs. Ethel G. Phillips, 985 Hill road, Winnetka. She pointed out that selling $25,000,000 worth of stock to the RFC would in practice give the government bureau control, as it would own as much stock as all other shareholders combined. "In presenting my views," Mrs. Phillips said, "I want to make it plain I do not believe it unpatriotic to criticize the centralization of government. There has been too much tendency to brand every criticism as unpatriotic." In reply to her argument Mr. Traylor said that the banking act of 1933 had so effectively placed the banks under the control of the controller of currency and the federal reserve board that the granting of additional control to the RFC made no practical difference. He said that he understood a bill will be introduced at this session of congress requiring a capital deposit ratio of 1 to 8, which would make an increase of the First National's capital essential. Board Reduced Under Law. The reduction in the board of directors from 44 to 25 members was made in accordance with the terms of the banking act passed last year. All the new directors elected were members of the old board. They are: Philip D. Block, Potter Palmer, Edward E. Brown, George A. Ranney, Ralph Budd, Edward G. Seubert, Augustus A. Carpenter, Silas H. Strawn, Richard J. Collins, R. Douglas Stuart, Mark W. Cressap, Bernard E. Sunny, Charles K. Foster, George G. Thorp, Bentley G. McCloud, Melvin A. Traylor, Charles A. McCulloch, Albert H. Wetten, Harold F. McCormick, Harry A. Wheeler, Ira N. Morris, C. J. Whipple, James Norris, John P. Wilson, John P. Oleson. Retiring directors are: William R. Abbott, Col. R. R. McCormick, Carl R. Gray, Charles S. Pearce, James B. Forgan, George Pick, John H. Hardin, Frederick H. Prince, Craig B. Hazlewood, Frederick H. Rawson, Marvin Hughitt Jr., Guy A. Richardson, John Hertz, Charles R. Walgreen, Walter J. Kohler, Daniel Willard, Albert D. Lasker, Thomas E. Wilson, Chauncey McCormick. All the retiring directors asked to be relieved of their duties, Mr. Traylor explained. Several expressed a desire to retire during the last twelve months, but were prevailed upon to finish their terms, he said. Stockholders May Waive Rights. Stockholders will have prior right to subscribe to the new preferred stock, but it is expected that all of the stock, which will pay 5 per cent cumulative dividends, will be taken by the government agency. In explaining the stock sale to shareholders Mr. Traylor emphasized that $15,000,000 of the $25,000,000 preferred issue is callable at the option of the bank at any time, providing the controller of the currency did not object, and that the remaining $10,000,000 may be retired at any time unconditionally. The new stock will boost the capital of the bank to $50,000,000, equally divided between common and preferred stock. In addition the bank will have surplus of $10,000,000, undivided profits of about $1,000,000, and special reserves of $5,000,000 under the new setup. After putting into effect the changes the common stock will have a book value of $140 a share, Mr. Traylor stated. During the course of his remarks to stockholders Mr. Traylor revealed that the bank had paid out $165,000,000 to depositors without resort to borrowing in the period from Feb. 14 to March 3 last year immediately preceding the bank moratorium. Mr. Traylor said he was unwilling to predict when dividends would be resumed, but added that if conditions improve the bank will be in a favorable position to profit. After the stockholders' meeting the directors met and reëlected all present officers of the bank. J. T. Keckeison was made an assistant secretary.

24. January 12, 1934 Chicago Tribune Chicago, IL

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Refers to First National. The nonintervention pledge was extended by Mr. Jones to cover specifically the First National bank of Chicago, which on Tuesday voted to sell 25 million dollars' worth of preferred stock to the RFC and which has, like the Continental Illinois, a vacancy in its chairmanship. Mr. Cummings, who is head of the Deposit Insurance corporation, left here this afternoon to attend the stockholders' meeting tomorrow in the bank which he will head. Although information on the board of directors which, it was agreed, would be elected tomorrow, was still being kept secret, it was learned on high authority that James R. Leavell probably will retain his presidency in the bank. Explains Policy of Control. After Mr. Jones had explained his intention of keeping hands off most of the large banks in Chicago and New York, which have sold the RFC preferred stock, other officials set forth the grounds on which the RFC will feel justified in exercising control through its preferred stock. They are: 1. Sale by a bank to the RFC of more preferred stock than there is common stock outstanding, thus giving the RFC control. The Continental Illinois fell into this group. 2. Failure by a preferred stock bank to earn two consecutive dividends. Intervention will be confined almost entirely to choosing new personnel for the management, Mr. Jones said. Satisfied with Management. He added that the RFC is thoroughly satisfied with the management of the First National bank of Chicago, headed by Melvin Traylor, president. The bank now has 25 million dollars preferred stock in the RFC's hands and 25 million dollars' worth of common stock in private hands. Although this arrangement probably will give the RFC a working control, it will not be exercised even in filling the vacant chairmanship. Mr. Jones announced that the RFC had sold 200 million dollars' worth of the special 2 1/4 per cent two year debentures which it is offering only to banks in which it has bought preferred stock. Another issue of 2 per cent one year debentures is being planned in the same way, he said.