Farmers Trust Company (Indianapolis, IN)

Episode Information

Episode UID
20005371577
Episode Type
Suspension → Closure
Bank Type
trust
Bank ID
2000537 routing
Routing Number
20-0053
Start Date
May 4, 1931
Location
Indianapolis, Indiana (39.768, -86.158)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
f8585d8a4c1c0653

Response Measures

None

Description

Directors requested state take charge due to lack of liquid operating capital; later receiver appointed and bank remained in liquidation.

Events (3)
1. May 4, 1931 Suspension
Cause Details
Directors requested temporary closing due to lack of liquid operating capital and for refinancing/reorganization; state banking department took charge.
Newspaper Excerpt
State banking department today closed doors of the Farmers Trust Company, 150 East Market street, on request of directors of the institution
Source
newspapers
2. May 6, 1931 Other
Newspaper Excerpt
Petition filed by Luther F. Symons ... requested a receiver for the Farmers Trust Company, which closed its doors by order of directors Monday.
Source
newspapers
3. May 21, 1931 Receivership
Newspaper Excerpt
Boyd M. Ralston, Indianapolis realtor, today was named receiver of the Farmers Trust Company ... The bank was closed May 4 on vote of board of directors
Source
newspapers

Newspaper Articles (13)
1. May 4, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 4, 1931

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Article Text

FARMERS TRUST CLOSES DOORS TEMPORARILY Bank Is Not Insolvent, Statement by Board Declares. State banking department today closed doors of the Farmers Trust Company, 150 East Market street, on request of directors of the institution, for refinancing and reorganization. Thomas Barr, assistant state bank commissioner. took charge of the bank and J. W. Parrett, state banking department examiner, was working in the institution. The closing is temporary, according to James W. Noel, attorney director of the bank. Depositors Are Safe The trust company is not insalvent, a statement by directors declared, adding, "there is no doubt in the minds of the board that depositors will lose nothing and that stockholders will, even in the event of liquidation, receive large distri-, bution on their stock." Last report of the bank showed capital of $300,000; loans, $1,010,000; deposits, $1,240,000; undivided profits, $165,000, and surplus, $75,000; The state had deposits totaling $65,336.75 in the institution. C. N. Williams is president. Shortly after the Washington Bank and Trust Company closed last fall, the Farmers Trust Company invoked a ninety-day call on time deposits. Statement Is Issued Directors of the institution issued the following statment after closing today: "By action of the board of directors, the banking commissioner has been requested to take temporary charge of the affairs of the Farmers Trust Company, with a view to refinancing, reorganization or segregation of its banking business from its mortgage loan and trust business. "The trust company is not insolvent, and there is no doubt in the minds of the board that depositors will lose nothing and that stockholders will, even in the event of liquidation, receive large distribution on their stock. "The immediate cause of the foregoing action is the lack of liquid operating capital necessary to take care of the anticipated demands of depositors and at the same time to carry on the mortgage business in the manner in which it has heretofore been done. "In view of the foregoing, it was the opinion of the directors that temporary suspension will be to the advantage, not only of the depositors, but of the stockholders."

2. May 6, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 6, 1931

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Article Text

ASKS BANK RECEIVER Petition Filed for Farmers Trust Company. Petition filed by Luther F. Symons, state banking commissioner, in Marion circuit court today, requested a receiver for the Farmers Trust Company, which closed its doors by order of directors Monday. Investigation by his department revealed the bank is in "a failing condition," Symons set forth in the petition. The bank was classed as a loan, trust and safe deposit company. The state banking department has taken over all books, notes and records of the institution. Last report of the bank showed $300,000 capital; $1,010,000 loans; $1,240,000 deposits; $165,000 undivided profits, and $75,000 surplus. In the bank were state deposits of $65,336.75.

3. May 6, 1931 The Indianapolis News Indianapolis, IN
Article from The Indianapolis News, May 6, 1931

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Article Text

BANK RECEIVER ASKED Requests Appointment for Farmers' Company. asking the appointment of receiver for the Farmers' Trust Company was filed in circuit court Wednesday before Judge Harry Chamberlin. It was filed by Luther F. Symons, state sioner. bank day by the request of the board of direc- Cash Grate

4. May 6, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 6, 1931

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Article Text

BANK RECEIVER Petition Filed for Farmers Trust Company. Petition filed by Luther mons, state Marion circuit court today, requested receiver for the Farmers Trust Company, which closed its doors by order of directors Monday. Investigation by his department revealed the bank failing condition, set the petition. loan, trust and safe deposit state banking department has taken over all books, and recof the institution. Last report the bank showed capital; loans; 240,000 deposits; $165,000 undivided profits, surplus. In were state deposits of $65,336.75

5. May 21, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 21, 1931

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Article Text

RALSTON IS RECEIVER OF FARMERS TRUST Indianapolis Realtor Is Named by Superior Judge Weir. Boyd M. Ralston, Indianapolis realtor, today was named receiver of the Farmers Trust Company, by Superior Judge Clarence E. Weir. Weir named H. Nathan Swaim, park board attorney, and Charles W. Richards, attorney, as counsel to work with Ralston on the receivership. The bank was closed May 4 on vote of board of directors and at a preliminary hearing earlier in the week, bank officials and Weir expressed the confidence that the bank would meet obligations to all depositors. Today, Weir said he did not know whether this would be accomplished but "had every confidence in these men and believe they will be able to bring this about."

6. October 9, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 9, 1931

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Article Text

# Creditors of Defunct Farmers Trust May Battle # President's Move. Creditors of the defunct Farmers Trust Company today were considering organizing to fight the attempt of Charles N. Williams, president of the bank, to obtain a court order giving him a large portion of the institution's assets. Williams has filed a petition in superior court four asking the court to allow him a claim of $292,798.39, as a secured and preferred claim over claims of depositors and all other creditors. Court records also revealed today that Williams has filed another petition demanding that several thousand dollars worth of bonds, owned by him, be returned by Boyd M. Ralston, receiver. # Exact Value Unknown In his petition, Williams states that the large sum is held by the bank, as trustee, in a "special trust account," created Nov. 8, 1930. "The bank was to hold the moneys as trustee and agreed to hold the account as secured by a first lein upon all the assets of the Farmers Trust Company," the petition contends. Assets of the bank, now held by the receiver, include real estate, bonds, stocks, mortgages and other properties. Exact value of the real estate is unknown. However, appraisers have been appointed by Judge Clarence E. Weir to appraise farm properties owned by the bank in other states. # Administration Not Possible Williams states that he "deposited of his own funds various amounts, under terms of the special trust agreement, totaling $292,789," which he demands with interest. Administration of the bank's assets will not be possible for some time, Receiver Ralston stated recently, because the value of its real estate holdings is unknown. The bank closed its doors May 4, 1931. Othneil Hitch, attorney and creditor, charged today that "Williams wrote the agreement by which he now seeks to secure this large preferred claim."

7. December 2, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, December 2, 1931

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Article Text

BANKER SEEKS SEIZED LIBERTY BONDS' RETURN Head of Defunct Farmers' Trust Asks Mandate of Receiver. Two witnesses were called today in the first round of the fight of Charles N. Williams, president of the defunct Farmers' Trust Company to force B. M. Ralston, the receiver, to return liberty bonds valued at $25,000. Williams alleged in his suit today that the liberty bonds, used by the bank as surety for the deposit of Marion county government funds, are his property and not that of the bank. He alleged that he merely had loaned the bonds to the institution and introduced an agreement between him and the bank to this effect, which was signed by C. A. Plock, the vice-president. Dunn Certifies Total Harry Dunn, county auditor, testified that a total of $40,000 in liberty bonds was deposited by the Farmers bank in the Indiana National bank, to be held in escrow as surety for the county's deposit. Maximum to be deposited in the Farmers bank was placed at $80,000 by the county finance board, and $39,677.21 was on deposit when the bank closed, Dunn said. Williams' suit alleged that on Jan. 23, 1931, he loaned the Liberty bonds to the bank to be used in the manner stated above and that without his "knowledge or consent" these and an additional $15,000 of Liberty bonds were placed in escrow with the other bank. Seeks Court Order He asks that Ralston be ordered by the court to take $25,000 from the cash on hand in the closed institution and buy replacement bonds these to be returned to him. Or, he asks, that the bank pay back to the county the money on deposit, thus releasing his bonds for return, or that he be paid in cash the equivalent of the value of the bonds. Ralston counters with the statement that Williams is not a special claim, but that he only is a general creditor and that for this reason, he should take his chances with the other depositor. Henry Dowling and Henry Hornbrook appeared for Williams; and H. Nathan Swaim for Ralston.

8. January 3, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, January 3, 1934

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Article Text

FARMERS TRUST TO PAY: CLAIMS PROOF IS ASKED Superior Judge Instructs Depositors to File With Receiver. Preparatory to declaration of dividends to depositors of the defunct Farmers Trust Company, Judge Clarence E. Weir, superior court, room 4, yesterday ordered all small depositors of the bank to file verified proof of claims with Boyd M. Ralston, receiver, by Jan. 15. According to a petition filed by the receiver, the books of the Farmers Trust Company showed more than 1,000 accounts averaging less than $5, some of which had been on deposit more than fifteen years. Addresses of many of the depositors are not contained in the bank records. The order, as entered by Judge Weir, requires the filing of verified proof of claims with Mr. Ralston, 150 East Market street, in the following cases: Where the claim or demand in question is for an amount not more than $5; where the claim is for an account against the company on which account the books of the company show no transaction since 1927; where the claim is based on an obligation which is not shown by the books of the company; cases where the claim is based on an obligation which is evidenced by check, certificate of deposit, draft or any other negotiable instrument, and all other cases where the claim or demand is based on an obligation, the present owner or holder of which obligation is not shown by the books of the company. The order does not require filing of formal proof of claim in the case of a depositor who, at the time the bank closed, had a credit balance of more than $5 and which account had been active up to the closing of the bank.

9. February 8, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, February 8, 1934

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STATE WINS CLAIM IN FARMERS' TRUST CASE Awarded $12,000 in Ruling by Judge Weir. A claim of $12,000 asked by the State of Indiana against the closed Farmer's Trust Company was granted today by Judg eClarence E. Weir, of superior court, room four. Hearing on the claim, together with all others filed by depositors against the bank, were held Monday, prior to the granting of a request from Boyd M. Ralston, receiver, for permission to petition the Reconstruction Finance Corporation for a loan of $195,695. Judge Weir has apaproved the petition for the loan, which if granted, will be used to pay dividends of from 25 to 30 per cent to creditors of the bank.

10. June 4, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 4, 1934

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# FARMERS TRUST # REPORT FILED New Appraisal of Realty Holdings May Be Asked by Receiver. Re-appraisement of real estate held by the Farmers Trust Com- pany may be requested in the near future by Boyd M. Ralston, receiver for the bank, he said in filing his third current report in superior court four before Judge Clarence Weir. The new appraisal may be neces- sary due to too high value placed

11. December 11, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, December 11, 1934

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STATE SAVINGS DEPOSITORS TO SHARE $80,000 51-2 Per Cent Dividend Is Declared, Checks Go Out Today. Payment of a 5½ dividend to depositors of the defunct State Savings and Trust Co., totaling $80,000, was begun today at the receivers offices, 301 New City Trust Bldg. Announcement of the dividend was made yesterday by Homer Elliott, receiver. Depositors whose names begin with A, B or C will receive their checks today. Others may obtain their checks later in the week, in alphabetical order. The money for the dividend was obtained as the result of action brought to collect stockholders' liability before Superior Juage Joseph R. Williams. Eighty-three certificate holders of the defunct Farmers Trust Co. will be mailed dividend checks of 15 per cent, totaling $11,259, Thursday. The Union Trust Company was named substitute trustee by Gideon W. Blaine, judge pro tem. in Probate Court, yesterday.

12. June 21, 1935 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 21, 1935

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# SUIT IS FILED AGAINST # BANK COMPANY HEADS Farmers Trust Receiver Seeks to Recover Nearly $280,000. Charging that officers and di- rectors of the liquidating Farmers Trust Co. paid out funds in loans, investments and dividends when the bank's reserves were below the limit set by the state, Boyd M. Ralston, bank receiver, today filed suit in Superior Court demanding $210,893 damages and $68,239 interest. The suit was filed almost imme- diately after Chalmer Schlosser, Superior Judge pro tem., had ap- proved the action. The complaint is seeking to collect the damages on the bonds of the officers and di- rectors.

13. December 23, 1935 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, December 23, 1935

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3 DEFUNCT CITY BANKS DECLARE YULE DIVIDENDS $141,000 Is Distributed to Depositors in Time for Christmas. Depositors of three defunct Indianapolis banks have received Christmas presents of dividends in excess of $141,000, it was announced today by the receivers. The City Trust Co. declared a 5 per cent dividend amounting to $80,000 last Saturday, Oren S. Hack, receiver, said. A similar dividend payment was made in October, 1934. The Aetna Trust & Savings Co., declared a 7½ per cent dividend amounting to $60,000 last month, officials said. A 2 per cent dividend was paid this week by Maple-rd State Bank, E. Kirk McKinney, receiver, said. The amount paid was $1534 and brings the total dividend payment up to 39½ per cent. Litigation prohibits the. Washington State Savings & Trust Co., Farmers Trust Co. and Meyer-Kiser Bank from declaring dividends at this time, receivers said. Receivers for the J. F. Wild & Co. State Bank and State Savings & Trust saw no prospect of dividend payments, and the Belmont State Bank anticipates a dividend payment soon after the holidays.