Traders National Bank (Chicago, IL)

Episode Information

Episode UID
96601066
Episode Type
Suspension โ†’ Closure
Bank Type
national
Bank ID
9660 national
Charter Number
966
Start Date
October 2, 1888
Location
Chicago, Illinois (41.850, -87.650)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
d6d469c22baa060b

Response Measures

None

Description

Receiver appointed Oct. 2, 1888; failure tied to president's affairs and alleged misappropriation.

Events (7)

1. April 1, 1865 Chartered
Source
historical_nic
2. September 4, 1878 Voluntary Liquidation
Source
historical_nic
3. October 2, 1888 Receivership
Newspaper Excerpt
Hiram McChesney was appointed receiver of the Traders' bank, corner Madison and Lasalle streets, by Judge Shepard, under a petition filed by Thomas T. Tollman, cashier. McChesney gave bond for $500,000 and was ordered to take charge of the bank effects.
Source
newspapers
4. October 2, 1888 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Failure/insolvency linked to illness and later death of president Joseph O. Rutter and alleged large withdrawals/misappropriation tied to his estate.
Newspaper Excerpt
The Traders' Bank of this city has failed on the application of Thomas Tallman, cashier. Judge Shepard this morning appointed Hugh McChemey receiver of the assets of the bank.
Source
newspapers
5. October 3, 1888 Receivership
Newspaper Excerpt
Judge Shepard entered an order this morning appointing Byron L. Smith receiver of the Traders' bank, which failed yesterday, instead of Hiram J. McChesney. Mr. Smith qualified in bonds of $500,000.
Source
newspapers
6. October 9, 1888 Other
Newspaper Excerpt
According to the receiver, the deposits amounted to about $900,000. The bank had about $90,000 in gold.
Source
newspapers
7. October 24, 1888 Other
Newspaper Excerpt
Receiver Byron L. Smith of the Traders' Bank of Chicago reports that the affairs of the bankrupt institution are in a very unsatisfactory shape; it is alleged that Joseph O. Rutter drew $400,000 out of the institution last year.
Source
newspapers

Newspaper Articles (16)

Article from Clearfield Republican, September 12, 1877

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AN AWFUL "BUST Up."-The State Saving Institution, at Chicago, closed its doors on Friday. The concern is a million of dollars short. The assetts foot up at their face $2,337,496.23 while the true value is only $869,000. The amount due depositors is $3,050,017.17. All the available cash to be found in the Bank was about $24,000 out of the millions deposited by the 15,000 depositors. The Cashier, David D. Spencer, is in Europe. His own individual note for $500,000 was found among the assets. A general run is being made on all the Chicago banks and some more of them may close their doors before the panic is over. But, then Chicago can stand almost anything.


Article from Chicago Daily Tribune, January 1, 1881

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the bank resumed business they renewed their relations with it. The business of the bank for the year 1880 shows an Increase of 50 per cent over that of the previous year, With the Increase of trade In Chicago, and the demand for safe and reliable banks. the continued prosperity of the Traders Bank is assured. PRESTON, KEAN & CO. Among other Indications of a healthy development In the department of finance, It may be mentioned that the banking house of Preston, Kenn & Co., 100 Washington street, averageil In their deposit line. for the latter half of the year, about 81,500,000, being an increase of nbout (N) per cent on the business of 1870, accompanied by something llke a corresponding gain In the department of foreign exchange over the transactions of that Interesting branch of the business for any preceding year. Preston, Kenn & Co. conduct business in three leading divisions,banking, security, and foreign exchange,and while, ns stated, the development of volume in the foreign transactions, and the standing average of deposits have been of marked character. the department of securities Is assigned grent prominence. Government, manicipal, State, and county obilizations, the negotiable securities of the Nation, constitute a primary interest. n specialty, so to speak, in the business of the house. The tratisactions in this department figure high in the millions, and are also largely In excess of any preceding or recent year. THE INTERNATIONAT. BANK, situated on Lit Salle street, opposit the Cham her of Commerce, nlways considered one of the soundest banking Institutions of this city, has during the last few years stepped stenility forward to the front rank of our banks. Since 1877 its deposits have Increased threfold, aim are nownpprouching the third million, while its general business and earnIngs have kept pace with this development. One of the leading branches of this bank is Its foreign exchauge business, which, although actual figures are withheld, may be said to amount to many millions. The list of Directors and stockholders of this bank is nn unusually strong one, comprising some of the wealthiest and most prominent business-men and capitalists of this city. ILLINOIS TRUST & SAVINGS BANK. This is the best-known savings Institution In Chicago. It occupies the old Fidelity Building, Nos. 145 and 147 Randolph street: has It cash capital of $100,000 invested In U.S Government bonds, held at par: also a surplus fund of $10,000. It loans only on cash collaterals, Investing but n small part of its funds on long-time real-estate loans, and none whatever on personal security. Moreover, has always had the courage to reduce the rate of Interest paid to depositors when occasion required, preferring rather to lose patronage than to hold depositors by giving n larger premium than first-class securities would return. To this line of policy, ad hered to by the Directors and stockholders, among whom are some of our best business men and capitalists, may be attributed Its success In meeting all emergencies that have arisen, as during the past seven years It has never failed to meet every call of its patrons In full on demand. The fact of Its savings deposits having Increased 150 per cent since Jan. 1, 1850, Is further proof of the confidence reposed In It by the public and Its growing popularity. THE FIDELITY SAFE-DEPOPIT COMPANY VAULTS The above popular Institution was the first one built in Chlengo,--It being open to the public in June, 1871, or four months prior to the great fire. These voults became very popular nt once, and fully verified their fire-proof qualities by preserving their contents Intact. When first opened the vaults contalned 1,068 separate safes, and since then they have Increased the number four times, and have now an order in the manufacturer's hands for 1,000 more safes. These will soon e be placed In position, and when they are they will make n total of over 4,500 separate safes, thus showing the rapidly-liicreasing popularity of the Fidelity Voults. Matthew Latlin, Esq., Is the President of the Company: Van II. Higgins, Treasurer, and Robert Boyd the manager, These vaults are ns proof against thieves as ingainst fire. It is advisable to call early and secure one of the new sates.


Article from San Antonio Daily Light, October 2, 1888

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Bank Failure. CHICAGO, October 2.-The Traders' Bank of this city has failed on the application of Thomas Tallman, cashier. Judge Shepard this morning appointed Hugh McChemey receiver of the assets of the bank. It is understood that the failure results from the illness of the president, JosephO.Rutter.


Article from Press and Daily Dakotaian, October 3, 1888

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A CHICAGO BANK SUSPENDS. The Traders' Bank Closes Its Doors and a Receiver Appointed. CHICAGO, Oct. 2.-Hiram McChesney was appointed receiver of the Traders' bank, corner Madison and Lasalle streets, by Judge Shepard, under a petition filed by Thomas T.I Tollman, cashier. McChesney gave bond for $500,000 and was ordered to take charge of the bank effeets. The liabilities are said to be $1,000,000; assets at present unknown.


Article from St. Paul Daily Globe, October 4, 1888

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Smith Chosen by Shepard. CHICAGO, Oct. 3.-Judge Shepard entered an order this morning appointing Byron L. Smith receiver of the Traders' bank, which failed yesterday, instead of Hiram J. McChesney. Mr. McChesney represented that he was unable to attend to the duties of the receivership, and declined to accept it. Mr. Smith qualified in bonds of $500,000.


Article from The Washington Critic, October 5, 1888

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number of clever imitations of the toms stamps used on imported ciga On the original are the words " Man facturers of imported tobacco," and the counterfeit " Manufactured of i ported tobacco." The bogus stamps : made by a New York house and are I used to evade payment of duty, but a put upon boxes containing inferior ( mestic goods in order to delude the pi chaser into the belief that he is buyi a genuine Havana weed. The firm w be prosecuted. It is officially stated that the Frer Government was much surprised by impression produced abroad by Pr dent Carnot's decree in regard to 1 eigners intending to reside in Fran It is pointed out that former cabin have examined the question and co to a favorable conclusion in regard to No foreign power has offered any obs vation to the government in relat to the decree, the legality of which based upon article 471 of the pe code. Jubilee Juggins," the young Engl plunger, whose real name is Benson, reached the end of his money and is n living on an allowance of $20 a we He got rid of $2,000,000 in two yes His horses are being sold, and one them, Hazelmere, brought $10,000 Tatterall's a few days ago. Bens manages to look like a prosperous m as the vast wardrobe that he purcha in the days of his prosperity is still from exhausted. The New York Star says: The na of Fred May has been stricken from list of members of the Manhattan C by the discipline committee. The H cific charge against Mr. May was n payment of dues, although it is g crally understood that the unenvia notoriety which he has gained was real cause of his dismissal." Gov. Foraker, of Ohio, delivered " bloody-shirt" speech at Bridgep Conn., Wednesday evening. The vi lence of the speaker induced P. T. B num to leave the platform as one of vice-presidents. Dr. Warner, who president of the Young Men's Christ Association, was also made uncomf able by the speaker's vituperative tir against tariff reform. The steamer State of Georgia, f New York September 20, about wl some fears were beginning to be fel consequence of the length of her age, arrived at Glasgow yesterday me ing. James B. Curtis, 55 years old, of S amanca, N. Y., a guest at the Gra Central Hotel, New York City, shot h self through the head yesterday, bl ing out his brains. He left a letter his son in which he stated that he crazy. The commissioners to examine claims against the estate of Wm. G of Boston. the defaulting mill treasu who killed himself. have filed their The claims amount to nea port. $750,000, Governor Hill's enemies are mal desperate efforts to defeat him. T many will hold its convention toto nominate a candidate for ma The County Democracy will hold t convention on Saturday. George Leblanche, the marine, several other gentlemen" of the r were each sentenced yesterday to sl terms in the penitentiary in New Y for aiding and abetting the recent fen prize fight. Sarah Crutcher. of Bardstown. ] widow of James Crutcher. a revolut ary soldier, and who had drawn a sion since 1853. is dead, at the age eighty-eight years. Harry Cox, a landed proprietor Somerset and a noted foot-ball pla was lost while traveling in the Caue Mountains. A party of guides is missing. The monument over the grave of ( George E. Pickett, in Hollywood Co tery, Richmond, will be unveiled v imposing ceremonies to-day. Col. F. T. Warburton. British V Consul at Newport News. has institu a suit for $20,000 damages against teen prominent citizens of that place Shanklin & Austin's banking ho at Trenton. Mo., has closed its doors, ing forced to suspend by the failure the Traders' Bank, of Chicago. G. Anson Belcher, an aged crip yesterday attempted to commit sui at his home in Saratoga, N. Y., by ting an artery in his wrist. The Hotel Elmwood, at Glen's F N. Y., formerly known as the Elmw Seminary for Young Ladies, was yes day destroyed by fire. The British royal yacht Victoria Albert will arrive at Flushing on Em Fine


Article from San Antonio Daily Light, October 9, 1888

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The Traders' Bank. CHICAGO, Ills., October 9.-The depositors of the Traders' bank had a meeting last night, which was largely attended. The committee appointed at the Saturday night meeting had not finished its work. According to the receiver, the deposits amounted to about $900,000. The bank had about $90,000 in gold.


Article from The True Northerner, October 10, 1888

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The Traders' Bank Failure. Receiver Smith, of the Traders' Bank, of Chicago, pronounces it a bad failure. Joseph O. Rutter, the bank's late President, is dead. It is supposed that the determination of the bank's condition will now be speedy. as the money affairs of the late Traders' President were so closely connected with the bank that a settlement of the complications of the latter could not be made without an examination of Mr. Rutter's estate.


Article from The Iowa Plain Dealer, October 11, 1888

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WEST AND SOUTH. WHILE intoxicated on tue2d Jacob Kafer committed suicide by hanging at Fort Wayne, Ind. He was a wealthy bachelor, and no cause could be assigned. ON the 2d William H. Smith and Caper Westdorfer were struck by lightning and killed near Evansville, Ind. ON the 3d Gold Leaf beat the world's one mile pacing record for three-year-olds on the Napa (Cal.) track, making 2: 15. THE doors of the banking house of Shanklin & Austen. of Trenton, the oldest bank in Northern Missouri, were closed on the 3d, owing to the failure of the Traders' Bank, of Chicago. THERE was intense excitement again on the Chicago Board of Trade on the 3d, December wheat reaching $1.18. THE Virginia State exposition opened at Richmond on the 3d with twenty thousand visitors. ON the 3d the American Bakers' Association met in annual session at Cincinnati. GOVERNOR GORDON and other Democratic State officials of Goorgia were re-elected on the 3d without opposition. ON the: counterfeitforeign cigar stamps were discovered in Chicago, and counterfeit bills were also being circulated. THE Executive Committee of the Amorican partv on the 3d selected P. D. Wigginton, of California. to fill the vacancy occasioned by Judge Greer's declination of the Vice-Presidential nomination coach w stage ##########


Article from The United Opinion, October 12, 1888

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Wednesday, Oct. 10. Schleyer, the inventor of Volapuk, is dead. Two New York newsboys were burned to death. The two chief street car systems of Chicago are tied up. Four German war ships have been ordered to Zanzibar. Three lines restored rates from St. Louis to New York. The collapsed Traders' bank of Chicago makes a poor showing of assets. King Otho of Bavaria is sinking deeper and deeper in his religious mania. Ex-Queen Isabella of Spain has returned to Paris. She will give receptions during the winter. Emporer William has summoned Co nt Herbert Bismarck from Pesth to Styria by telegraph. The proposition that Emperor Francis Joseph crown himself King of Bohemia causes a sensation. It has been decided to greatly increase the strength of the German expedition for the relief of Emin Bey. The senate has passed a bill correcting the error in connection with the time of meeting of presidential electors. Superintendent Fry is made general manager of the Missouri, Kansas and Texas railroad under the receivers. The senate tariff bill will not be passed this session. Practically the session of the senate will end in about ten days. Premier Floquet has decided that foreign-


Article from Evening Star, October 16, 1888

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Chicago's Collapsed Bank. CHICAGO, Oct. 16.-In the case of the Traders' Bank, which failed here a few days ago, the court to-day allowed the receiver to proceed in the courts of Newark, N. J., and New York city for the recovery of drafts and other paper belonging to the bank. There are $12,000 worth of drafts in Newark, and attachments have been begun in New York city against about $50,000 of bank assets, which equal the liabilities in that city.


Article from Daily Kennebec Journal, October 17, 1888

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Condition of the Traders' Bank. CHICAGO, Oct. 16. The receiver of the Traders Bank reported to the court today : Assets, $901,630; liabilities 8896,888, not including $636,000, bills receivable, and $45,000 in checks, which bear the endorsement of the bank. Rutter's indebtedness to the bank is $153,302.


Article from Connecticut Western News, October 17, 1888

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-A large crack in the sternpost of the steel cruiser Baltimore will delay the completion of that vessel several months. -Mr. Justice Matthews, of the United States Supreme Court, is dangerously ill. -Latest reports of the Mud Run disaster place the number of dead at sixty-three, and other deaths are likely to occur among those injured. The number of the latter run up into the hundreds. -The cattle steamer Robert B. Carson sank near Evansville, Indiana. Fifty head of cattle perished. The crew reached shore in safety. -James F. Farley, of Philadelphia, who killed a half breed Indian at Petersboro, Ont., in self defence, last summer, was found guilty of murder and sentenced to be hanged. -Lumber rafting by sea is to be tried on the Pacific coast. It should be safer business there than in the treacherous weather of the East, and the scheme of rafting from Puget Sound to Chilean ports looks feasible enough. -The Bay Valley Bank at Woodbine and the Caldwell Bank at Logan, Iowa, closed their doors, and Judge King was appointed receiver. Both banks were operated |by the same firm. The total deposits will exceed $50,000. -Judge Sawyer of the United States Circuit Court has issued two writs of habeas corpus to test tho validity of the Chinese Excinsion act. -President Adams of the Union Pacific railroad declares that the Interstate Commerce law is responsible for the demoralization in railroad affairs. -The Southern Homeopathic Association, in session at Louisville, protests against the efforts of the allopaths to license all physicians by a State board, and asks that all schools be given an equal repr sentation. -Toronio nas quarantined against Buffalo, owing to the small pox there. -A negro named McCondon was shot and killed at Birmingham, Ala., by a party of four negroes, who took him to the woods and made away with him. -The steamer Cainbro from Skeena River, ran ashore in Granville Channel River. She was loaded with 3,500 cases of salmon. The passengers and crew were got off safely. -John Fitzgerald, 2 boatman of Staten Island, N. Y., and a Swedish woman named Anna, the cook at Hoffman Island in New York harbor, in attempting to go to the island in a small boat, were blown out to sea by the strong northwest wind, and have not been seen since. -Mrs. Mary E. Lieff, of Newburg, N. Y., gave her 10-weeks'-old child a teaspoonful of a soothing syrup to quiet it while she did her housework. During the day it died. The Coroner's jury found a verdict that it died from opiates in the syrup. -John Cunningham, mate of the schooner Carrie M. Bailey, dreamed that his vessel was in a storm and he was trying to reach the deck. In his dream he jumped from a three story window and received fatal injuries. -Harvey Wolff, a depositor in the Trader's Bank, Chicago, which recently failed, has applied to the court for an immediate examination into the affairs of the bank. He alleges the deposits were fraudulently misappropriabd. His deposit amounted to $34,000. -Frederick Lincoln, of Boston. tired of life, Hospital a Come of all of bemlock, and onfor: manual


Article from The True Northerner, October 24, 1888

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Unsatisfactory Condition. Receiver Byron L. Smith of the Traders' Bank, of Chicago. reports that the affairs of the bankrupt institution are in a very unsatisfactory shape. It is alleged that Joseph O. Rutter drew $400,000 out of the institution last year, and an effort is being made to trace the money.


Article from Crawford Avalanche, October 25, 1888

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Unsatisfactory Condition. Receiver Byron L. Smith of the Traders' Bank: of Chicago, reports that the affairs of the bankrupt institution are in a very unsatisfactory shape. It is alleged that Joseph


Article from Watertown Republican, November 21, 1888

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Recovers the Valuables. CHICAGO, Ill., Nov. 16.-The Greenwood Gold Mining Company to-day recovered from the receiver of the Traders' Bank, by order of the court, a box containing papers and cash of the company which had been specially deposited for safe-keeping a short time before the bank failed.