Hersey Banking Company

Episode Information

Episode UID: 180856491567
Episode Type: Suspension → Closure
Bank Type: private
Bank ID: 18085649 hash
Start Date: July 1, 1930*
Location: Hersey, Michigan (43.849, -85.444)

Metadata

Model: gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest: 5ffe3b1b8522b8e2

Response Measures

None

Description

Article states the bank closed in July and a receiver was appointed; insolvency is alleged.

Events (2)

1. July 1, 1930* Receivership

Newspaper Excerpt: named temporary receiver July when the bank closed its doors because frozen assets. Reed City banker declines to accept appointment Monday as temporary receiver of the Hersey Banking Co.; returns control of the bank to Herbert Millard, named temporary receiver July when the bank closed its doors because frozen assets.
Source: newspapers

2. July 1, 1930* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank closed in July due to frozen assets and alleged insolvency; assets reportedly far short of liabilities.
Newspaper Excerpt: the bank closed its doors because frozen assets
Source: newspapers

Newspaper Articles (1)

1. August 12, 1930 The Grand Rapids Press Grand Rapids, MI

Article from The Grand Rapids Press, August 12, 1930

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Article Text

REFUSES TO TAKE JOB OF RECEIVER Reed City Banker Declines to Guide Destinies of Hersey Institution. Reed City. Aug. 12 :-Refusal of L. G. Hammond of Reed City to accept appointment Monday as temporary receiver of the Hersey Banking Co., returns control of the bank to Herbert Millard. named temporary receiver July when the bank closed its doors because frozen assets. said his duties as cashier of First National bank here would prevent him servCircuit Judge Hal L. Cutler named Hammond Monday morning after committee of depositors of the bank had protested against the appointment of Millard, alleging his interests as stockholder in the bank might be in conflict with his duties Millard was president and cashier of the bank. Millard Holds Reins. Refusal of Hammond to serve as temporary until Sept. 8, when hearing will be held here by Judge Cutler for the appointment permanent means Millard four weeks to receive accounts due the bank. By the terms of the appointment made Monday Milland to be continued as temporary receiver if Hammond should refuse. The creditors committee suggested to the court that Henry Knowlton of Cadillac, former cashof the Cadillac State bank, and receiver for the Bank of Tustin of M. Perry & be named receiver instead of Millard William H. Alswede was chairman of the depositors committee. Other members were George Klump. F. D. McGregor, Jacob Finkbeiner and Albert James. The committee claimed to represent 155 depositors and in unsecured claims. They alleged that assets of bank only half the liabilities instead of being slightly in excess of them, as represented by Millard and Probate Judge William F. West, the two stockholders and partners who applied July for dissolution the partnership. Millard and Judge West said assets $115,000 and liabilities to 000 addition to $4,000 capital stock and a $13,000 guaranty fund paid into the bank Jan. 10, 1924, against which losses were charged. Bank Insolvent Then? The creditors committee claimed that if the guaranty fund was necessary six years ago the bank then was insolvent and has been since. The committee said that notes and mortgages held by the bank were overvalued in the statement of assets.