First National Bank (Lagrange, IN)

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Episode Information

Episode UID
218401534
Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
21840 national
Charter Number
2184
Start Date
October 24, 1927
Location
Lagrange, Indiana (41.642, -85.417)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
4d5fba11b10ffe71

Response Measures

Full suspension, Books examined

Other: Directors closed the bank and federal bank examiner J. F. Utt was appointed temporary receiver; negotiations for sale/takeover by financier Samuel J. Jacobs were opened.

Description

Articles attribute the immediate withdrawals to circulated rumors though examiners later found forged paper and misappropriation.

Events (5)
1. September 12, 1874 Chartered
Source
historical_nic
2. July 30, 1894 Voluntary Liquidation
Source
historical_nic
3. October 24, 1927 Receivership
Newspaper Excerpt
John Utt, Federal banking examiner, appointed temporary receiver for the La Grange bank; Utt took charge after run on the bank.
Source
newspapers
4. October 24, 1927 Run
Cause
Rumor Or Misinformation
Cause Details
Circulation of rumors about loans/financial condition (reports concerning Clyde Walb) caused depositors to withdraw funds.
Measures
Directors closed the doors; negotiations for sale and reorganization were opened; acting president named.
Newspaper Excerpt
Its reserves depleted by a run, the bank closed its doors yesterday.
Source
newspapers
5. October 24, 1927 Suspension
Cause
Government Action
Cause Details
Closed by federal bank examiner who was appointed temporary receiver after discovery of large amounts of forged paper and alleged misappropriation.
Newspaper Excerpt
The bank was closed Oct. 24, 1927, by Utt, Federal Bank Examiner, as temporary receiver, after Department of Justice agents ... found $75,000 in forged paper.
Source
newspapers

Newspaper Articles (18)
1. October 25, 1927 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 25, 1927

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LA GRANGE MAY REOPEN BANK Walb Denies Loan Rumors: Sale Talk Rife. Bill United Press LA GRANGE, Oct. 25.-Reopening of the First National Bank of La Grange within a few days was predicted by officials of the institution today. Its reserves depleted by a "run," the bank closed its doors yesterday. Negotiations 'also have been opened for sale of the bank to Samuel J. Jacobs, New York financier, owner of the Noble County Bank. Jacobs was expected to reach Kendallville, his former home, today or tomorrow. Clyde A. Walb, Republican State chairman who resigned as a vice president, a few weeks ago, denied that "excessive loans" had been made to him. He said his borrowings from the bank would not exceed $10,000. John P. Caton was elected to take his place and became acting president as result of resignation of Valentine Weaver. The bank had $600,000 in deposits and had been established for sixty years.

2. October 25, 1927 The Times Hammond, IN
Article from The Times, October 25, 1927

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CLOSED BANK REOPENING PREDICTED First National of Lagrange, Ind. Is Depleted by Panicky Run LAGRAGE Ind., Oct. 25 the First National Bank LaGrange within few predicted by officials of institution today Its reserves depleted the bank closed doors Negotiations also have been opened of the bank SamJacobs, New York city finanowner of the Noble County Bank. Jacobs expected to reach his former today tomorrow. His reorganizing the LaGrange arose, from his wish another bank in boyhood Clyde Walb, Republican chairman vicepresident the few weeks denied "excessive loans" He said his borrowings from the bank would John elected to take his place acting president result of resignation of president. The had in had established for Its to frozen assets, the closing blamed on rumors throughout the causing depositors withdraw counts. Failure County Trust Company take over the bank preceded decision the directors to close the doors.

3. October 25, 1927 Rushville Republican Rushville, IN
Article from Rushville Republican, October 25, 1927

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REOPENING OF LAGRANGE IN FEW DAYS PREDICTED Clyde A. Walb, Who Recently Resigned as Vice President, Denies He Has Excessive Loans WOULD NOT EXCEED $10,000 Lagrange, Ind., Oct. 25-(U.R) Reopening of the First National Bank of Lagrange within a few days was predicted by officials of the institution today. Its reserves depleted by a "run" the bank closed its doors yesterday. Negotiations also have been opened for sale of the bank to Samuel J. Jacobs, New York City financier, owner of the Noble county bank. Jacobs was expected to reach Kendallville, his former home, today or tomorrow. His interest in reorganizing the Lagrange institution arose, in part, from his wish to own another bank in a boyhood scene. Clyde A. Walb, republican state chairman who resigned as a vicepresident of the bank a few weeks ago, denied that "excessive loans" had been made to him. He said his borrowings from the bank would not exceed $10,000. John P. Caton was elected to take his place and became acting president as result of resignation of Valentine Weaver as president. The bank had $600,000 in deposits and had been established for 60 years. Its condition was attributed to frozen assets, but the closing itself was blamed on circulation of rumors throughout the country, causing depositors to withdraw accounts. Failure of negotiations to have the Lagrange county Trust Company take over the bank preceded decision of the directors to close the doors.

4. October 25, 1927 Evansville Press Evansville, IN
Article from Evansville Press, October 25, 1927

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TUESDAY, OCTOBER 25, 1927. LA GRANGE BANK TO REOPEN SOON Walb, Republican State Chairman, Denies Charges United Press opening of the First National bank of LaGrange within the next few days was predicted by officials of the institution today. Its reserves depleted by "run," the bank closed its doors yester- Negotiations also have been opened for sale of the bank to Samuel Jacobs, New York City financier owner the Noble County bank. Jacobs was expected to reach Kendallville, his former home, today or tomorrow. His interest reorganizing the LaGrange institution arose, in part, from his wish to own another bank in boyhood scene. Clyde A. Walb. Republican state chairman who resigned as vice president of the bank few weeks ago, denied that "excessive loans" had been made to him. He said his borrowings from the bank would not exceed $10,000

5. October 25, 1927 The Daily Republican Rushville, IN
Article from The Daily Republican, October 25, 1927

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REOPENING OF LAGRANGE IN FEW DAYS PREDICTED Clyde A. Walb, Who Recently Resigned as Vice President, Denies He Has Excessive Loans WOULD NOT EXCEED $10,000 Lagrange, Ind., Oct. 25-(U.P.) Reopening of the First National Bank of Lagrange within a few days was predicted by officials of the institution today. Its reserves depleted by a "run" the bank closed its doors yesterday. Negotiations also have been opened for sale of the bank to Samuel J. Jacobs, New York City financier, owner of the Noble county bank. Jacobs was expected to reach Kendallville, his former home, today or tomorrow. His interest in reorganizing the Lagrange institution arose, in part, from his wish to own another bank in a boyhood scene. Clyde A. Walb, republican state chairman who resigned as a vicepresident of the bank a few weeks ago, denied that "excessive loans" had been made to him. He said his borrowings from the bank would not exceed $10,000. John P. Caton was elected to take his place and became acting president as result of resignation of Valentine Weaver as president. The bank had $600,000 in deposits and had been established for 60 years. Its condition was attributed to frozen assets, but the closing itself was blamed on circulation of rumors throughout the country, causing depositors to withdraw accounts. Failure of negotiations to have the Lagrange county Trust Company take over the bank preceded decision of the directors to close the doors.

6. October 25, 1927 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 25, 1927

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REMUS FUNDS IN BANK; FIND FURTHER CHECK IS OREDRED GRANGE REOPEN Walb Denies Loan Rumors: Sale Talk Rife. LA Oct. of the First National Bank of Grange within days was predicted by officials the institution today. Its reserves depleted the bank closed its doors yesterday Negotiations 'also have been opened for sale of the bank to SamJacobs, New York financier, owner the Noble County Bank. Jacobs was expected dallville, his former home, today Clyde Walb, Republican State chairman who resigned as vice president, few weeks ago, denied that "excessive loans' had been made to him. He said his borrowings from the bank would not $10,000. John Caton was elected to take his place and became acting president as result of resignation of Valentine Weaver The bank had $600,000 in deposits and had been established for sixty years. Truck Driver Will Tell of Removing Furniture at Wife's Order. CHICAGO, Oct. leged to belong to George Remus, millionaire bootlegger, and appropriated by his wife, Mrs. Imogene Remus, have been recovered in Chicago, Harry Pritzker, attorney Remus, told the United Press today. total has been found, Fritzker said. He declined say where. Remus, who shot his wife to death Cincinnati recently, charged took much his wealth and deposited it secretly in banks in various cities. Check Up Four Banks of four Chicago banks asked by Pritzker to check deposits or safety deposits made in names of Augusta Campbell, Holmes and Gray, and Brown, all of which, he said, aliases used by Mrs. Remus. The banks First Trust and Savings, Foreman's Trust and Savings, Phillips State, Rogers Park National. Depositions will be taken Thursday, Pritzker said, from Oscar Melvin, Gary, Ind., truck driver; Charles McDonald, former Chicago Superior Court judge; William police chief Evanston; Bertha Sieman Joseph Chrone. Took Furniture to Indiana He refused to reveal the testimony expected from any but Melvin. Melvin, Pritzker said, was the truck driver who transported furniture on Mrs. Remus' orders from the home of Romola Remus, daughter Remus his first wife, an unnamed destination in Indi- Pritzker said Melvin would testify that Mrs. Remus accompanied his furniture truck, some trips riding in the truck, and in others lowing and that she carried handbag in which revolver and large roll bills. Miss Remus told the United Press today would father's when he tried on charge of murdering his wife.

7. October 27, 1927 The Waterloo Press Waterloo, IN
Article from The Waterloo Press, October 27, 1927

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LAGRANGE BANK BE REOPENED VERY Jacobs of New York City May Take Over First NationBank Closed on Monday The reopening of the First Nationbank LaGrange which voluntarily closed its doors Monday, exfew days. Negotiations with Samuel Jacobs, New York financier and president of the Noble County Bank at Kendallville is expected to result the sale of the bank Mr. Jacobs. is believed that none of the depositors will lose their savings in the bank. The bank was closed when excited depositors started run on the bank.

8. October 31, 1927 The Daily Republican Rushville, IN
Article from The Daily Republican, October 31, 1927

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Walb to Resign? Speculation about Clyde Walb's status in Indiana polities is rife following the failure of the First National Bank at Lagrange and the story that rumors about Walb's financial condition led to the run on the bank. The republican state chairman was an official of the bank until recently and IS reported to have been a heavy borrower. Walb is quoted as saying that he has notes in the bank, but that they total only $21,000 and are well secured. In view of the reputed connection of Walb with the bank and the report that some of his political friends are endeavoring to raise a pool of $50,000 to him through his financial difficulties, demands for his resignation will be renewed, if he does not voluntarily quit. Snce the failure of the Lagrange bank, and the probability of naming a successor to Walb loomed, several names have been mentioned. among them Lawrence Cartwright, vice chairman, who would be next in line if the state commitee thought him fitted. Cartwright will not do for state chairman because of his connection with the troubles of the republican party in Indiana. He has been identified from the beginning with the organization which has sought to thwart all efforts at ridding the party of the political leaches that are threatening its overthrow. Cartwright was one of the strong forces back of the "ripper bill" in the 1925 session of the legislature. This was the bill which sought to dislodge the state highway commission and turn it over to the politicians by placing the power of appointing the director of the commission in the hands of the governor. At present the director is appointed by the commission. Failing in having the "ripper bill" passed, the politicians seeking control of this juicey plum succeeded in having returned the "framed" indictments by which they hoped to rid the highway commission of men who refused to consent to the looting program. Cartwright was part and pareel of this movement from the beginming and the republican state committee would be jumping from the frying pan mto the fire by him to succeed Walb. What the party needs is a man who has not been in any way connected with the disreputable things that have taken place within the republican organization during the past four years, and who will have the qualities of leadership which will be necessary to lead the party out of its present state of chaos.

9. December 30, 1927 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, December 30, 1927

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JURY NEAR END OF BANK PROBE No. 3 Head-See Puzzle Baltzell May Get Findings of Group Today. Final report of the Federal grand jury on its investigation of the failure of the First National Bank of La Grange was expected to be made to Judge Robert G. Baltzell today. The grand jury has been investigating closing of the bank after the finding of $76,000 in alleged forged paper, and the connection with the failure, if any, of Clyde A. Walb, Republican State chairman and former bank vice president. A part of the forged paper is alleged to have been used to cover overdrafts of the Walb Construction Company of La Grange, of which Walb is president. Ledgers and papers of the defunct bank and Walb's company were perused today. Oscar E. Ross, Indianapolis, certified public accountant, who audited Walb's books until 1923, and Clyde Larue, Muncie, another certified accountant, who succeeded Ross in making Walb's audits, were called upon for explanations of their records. Other witnesses today included John F. Utt, national bank examiner and temporary receiver for the La Grange bank; H. E. Laufer and Glenn E. Paulsen, examiner for the Department of Justice. Walb Construction Company employes, bank employes and Federal accountants went before the grand jurors Thursday. Neither Walb, nor Valentine D. Weaver, former president of the bank, appeared as a witness.

10. January 1, 1928 The Cincinnati Enquirer Cincinnati, OH
Article from The Cincinnati Enquirer, January 1, 1928

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INDICTMENT Of Indiana as Violator of National Bank Act. D. Weaver Accused With Clyde Walb As Conspirator To Use Money Wrongfully. La Grange Institution Closed as Result Of Misappropriation, Is Grand Jury Charge. County Inquisitors Keep Secret Their Victim Until Arrest, But Recommend Contempt Citations. Indictments charging violation of the national banking laws and acy to violate the same were turned today against Clyde Walb, and Valentine Weaver, of Lagrange, in Federal Court. Chairman of the State Central Republican Weaver served President of the defunct First National Bank of grange June, 1927, while Walb its Vice President. Walb also is President of the Walb Construction was set for January Federal Judge Robert Baltzell. Both men are charged violations the closing of National Bank The counts. charge Walb and Weaver with The others charge specific violations banking which Weaver pictured the petrator, the TAKEN, TIS SAID. Thousands funds were appropriated by the duo, according the indictment, for himself and Walb for himself and the Walb Construction Sale of preferred of the Construction Company stopped recently by the State Securities Commission because the company sound. The indictment specifically charges his business account. covered up for him honoring the checks and entering credits to Walb's accounts whether the Chairman made posits or not, alleged. Among typical overt acts listed the indictment June 1923. Walb signed check for $306 without funds in the June 28, 1928, Weaver credited $6,000 accounts. June 1926, Weaver forged the name of Tobias Yoder to note for WHEW! 99 CHECKS. February Walb checks upon his personal account, taling when his account would cover them. The same day Weaver credited Walb's account with March Walb overdrew his account $4,601. Sixty. such overt listed under the two conspiracy counts, with Walb charged with having shettey overt of Weaver The bank was closed October 24, 1927. by Utt, Federal Bank Examiner, as temporary receiver, after Department of Justice called by him had found $75,000 forged paper. Utt took charge after run on bank. Depositors probably will be paid in full, examiners INDICTMENT IS SECRET. After returning one indictment recommending that three persons cited for contempt of court, the rion County Grand made its final report of six months' investigation today and urged all citizens to sume the responsibility their citi zenship and vote elections. The name of the person indicted novaced that man not and that the charges were to false affi Those the jury would for contempt Kiplinger, Rushville Mildred former of C. Evanaville,

11. January 1, 1928 St. Louis Post-Dispatch St. Louis, MO
Article from St. Louis Post-Dispatch, January 1, 1928

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C. Walb and V. Weaver A. Accused of Fraud on Closed Lagrange, Ind., Bank. Ind., Dec. 31. Reaching back to New Year's day to lay the foundation years ago of its indictment, the Federal grand jury today lodged charges of conspiracy violate the national banking laws against Clyde Walb, chairman of the Repubtican State Committee, and Valentine D. Weaver. Bond be set and an day fixed by Judge of arraignment Thomas W. Slick of South Bend. president and Walb vice president the First National Bank of Lagrange until Aug. 1927, when they resigned and John Caton vice president and acting president. After run on the bank two later the closed Oct. 24. John Utt, Federal banking examiner, appointed temporary receiver. Utt turned report to the troller of Currency in WashThis report, understood, referred to the Department of whic sent Glenn aulson, Federal accountant. go over the bank's books. Paul has been of the principal before the grand jury in its four days' taking of evidence. According ot the indictment, the procedure that and the Walb Construction Co., of which he president, kept accounts the bank and continually drew checks against them am larger than the funds the bank falsely the benefit Walb and Walb accused and abetting the alleged acts. There are 12 the indictments. the first nine counts overt acts carries with fine up to $5000 of not more than in the penitentiary. Each last three counts carries upon of confine up to and imprisonment of not more than two

12. January 1, 1928 The Baltimore Sun Baltimore, MD
Article from The Baltimore Sun, January 1, 1928

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SEAS HALT SEARCH BODIES IN Weather Permitting, Divers Will Remove Dead Today. EIGHT WORK ON HULL Victims' Families To Receive No More Than Months' Pay, Is Revealed. Provincetown, Mass., Dec Rough and threat of storm forced suspension salvage operations on the S-4 late today, after everything was prepared for removing engine hatch entering the hull quest bodies. believed that of the forty who perished the S-4 went down were in the engine room. Weather permitting, divers will that compartment tomorrow and remove the bodies. calm sea will necessary before this can done because the danger divers working inside the bull. The menace the divers illustrated today when for the third time since salvage opera tions began had to be assisted the surface comrade. Eight Work On Hull. Eight divers worked the hull. LEADERS gratings over the engine room and motor hatches moved. with the object of getting air out of these two compartments Chairman And Com- fore an attempt made to raise the wreck. under which three lines already mitteeman Charged With passed. The engine-room Fraud. hatch will next be removed to allow divers enter. The diver who was in difficulties STATE INQUIRY ENDS Bradford Bedford, his first descent. When he reported he distress, the veteran "Bill" Carr went County Grand Jury Questions his assistance. After the rescue, Senator Watson In Alleged Po- Carr on with his work. litical Corruption. Indianapolis, Dec. 31 ing back New Year's Day six years to lay the foundation its the Federal grand jury day lodged charges conspiracy violate banking laws against Clyde chairman the Republican State and Valentine Weaver, of the Republican State Committee, former presithe defunet. First National Bank of La Grange. Jury Ends Probe. In the State court, the Marion grand jury ended its inquiry alleged political corruption Indiana by returning indictment against unannounced person. The forty-page indictment against and of alleged overt The first that fraudulently misapplied funds of the bank and falsely entered forged credits for the benefit Walb personally and the Walb Construction Company, which president. The other three counts, blanket in nature, charged the defendants jointly with conspiracy acts to the national banklaws. Weaver Walb vicepresident throughout the period. They continued hold positions until August when they resigned and John Caton became vice-presiand acting president. run the two months terminated the directors closing October and turning affairs to John Utt. Federal banking examiner, who subsequently was appointed temporary receiver. Investigates. Utt investigated its affairs turned Comptroller Currency in Washington, which, understood. was referred the Department Justice. The latter agency out Glenn Paulson, Federal the bank's books. Paulson one of the principal witnesses before the grand its four-day taking of evidence the Each the first nine counts carries with upon conviction fine up $5,000 and imprisonment of not more five years the penitentiary. Each of the last three carries with upon conviction of fine $10,000 and imprisonment not According officials of the district attorney's the apply force on both defendants in case To Investigate Updike. While recommending that no further general investigation made into the political intrigue, the county jury urged that inquiry be tinued into the report that Congressman Ralph Updike, of the Seventh Indiana district, had entered into patronage with Stephenson, grand dragon of the Ku Klux Klan and now life-term oner Michigan City State Prison. Name The of the man indicted day was public pending arrest. learned, however, that not public official. The grand the discharge persons other cases. Preceding drafting of the final report United States Senator James Watson, of Indiana, and Miss Ada Bush, for years secretary forGov. Warren by the grand First Buffalo Hunt Years Took Baltimore Ice Bars D'Annunzio's Works. nunzio's for Bishop of this told his people. He urged them Earthquake In Alaska. revival the Juneau, Dec. 31 the duty of Italians," lasting 30 seconds prelate said, honor fatherland Juneau 10.02 today. and let rattled and goods silence their On shaken. Periscope Slanted. The divers reported Frank H. Brumby, directing the that the forward periscope the S-4 pointing straight ahead, while the after periscope slanted would indicate, was said, that the men the control room the submarine sighted the Coast Guard Destroyer Paulding before that vessel rammed sank the They also reported that water was leaking slowly into forward compartment.

13. January 1, 1928 The Huntington Press Huntington, IN
Article from The Huntington Press, January 1, 1928

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LEADERS OF PARTY HAVE TASK OF APPOINTING HIS SUCCESSOR AS CHAIRMAN INDIANAPOLIS, Dec. the indictment of Clyde A. Walb of LaGrange by the federal grand jury placing squarely before Republican party chiefs the matter of replacing him as state chairman, numerous leaders of the party today indicated informally their reticence at proceeding prior to some. commitment from Walb himself. Some time ago Walb announced that he wished to relinquish the party reins and that "after the first of the year" he wished to devote his time exclusively to the interests of the Walb construction company, of which he is president. Ever since Walb made his first announcement, there has DIVERS TO ENTER been a spirited jockeying among. various candidates for the place. Jesse Murden, Peru, chairman S-4 HULL TODAY of the eleventh district, now appears to have the inside Will Remove Bodies From track, with his actual selection deferred until such time as the Engine Room if party leaders consider propitPossible ious for completing the actual change in PROVINCETOWN, Mass., Dec. 31 Today was banner political occasion (AP) Rough seas and threat of storm for Indianapolis, and local baunts of Reforced suspension of salvage operations publican leaders were generously popon the sunken submarine S-4 late today, ulated with Indianapolis and state party workers here for with James after everything was in readiness for E. Watson, senior senator, who was in removing the engine room hatch and the city for that purpose and also to entering the hull in quest of bodies. It testify before the Marion county grand is believed that 10 the 40 men who jury. Lenders Won't Talk. Although the leaders were reluctant to discuss the chairmanship publicly until Walb has indicated his intended course, the to prevail that although Murden is scheduled for the place, the actual transfer may not be prior to the customary following the 1928 primary election. Reaching back to New Year's day six years ago to lay the foundation its indictment, the federal grand jury today lodged charges of conspiracy to violate the National laws against Walb and Valentine D. former president of the defunct First National bank of The forty -page indictment contained twelve counts and scores alleged other acts of the defendants. The first nine counts charged that Weaver, as and Walb, as one who "aided and abetted" Weaver, fraud ulently risapplied funds of the bank and falsely entered forged credits for the benefit of Walb personally and of the Walb construction company, of which he is president. The other three counts, blanket in nature, charged the defendants jointly with to do acts contrary to the banking laws of the United After morning spent by Albert Ward, district and his assist. in and reading the the twenty-one grand heard the charges read, voted the left their chamber and trudged in groups behind their foreman, Theodore Stunkle of Haubstadt, to the library of Judge Robert Stunkle, six feet and seven inches towering his colleagues, handed the indictment to the judge without comment. "This completes your work?" the court asked. "It does," Stunkle replied gravely. The court excused the jurors subject to call and thanked for their services. The was made publie by Ward. The case was brought in the Wayne division of district courts Indiana, in which LaGrange is located. Warrants will be to Fort Wayne, where deputy marehall will serve them on Walb Weaver probably early next Bond will arraignment day fixed by Judge Thomas W. Slick of South Bend, to whose jurisdiction the case automatically now Began Conspiracy The first date in the charges in Jan1922, when Walb and are charged with starting the alleged conspiracy which the took trace from that date until 25, 1927, the date of commission of the last overt act. was president and Walb vicepresident throughout the period. They continued hold those until August 9, 1927, when they resigned John P. Caton became vice president and acting president. run on the two months later terminated in the directors closing it October 24, and turning its affairs over to John F. Utt, eral banking examiner, who subsequently was appointed temporary Utt investigated its affairs and turned in report to the comptroller of in Washington is was referred to the department tice. The latter agency sent out Paulson accountant, to bank's Paulson has the principal witnesses before jury in its four-day of in the case. Paulson brought books, nals, ledgers, cash books, papers, and affidavits from Grange for submission to the jurors. During the nearly forty were called, of the employes of the Walb struction rectors and the bank LaGrange county names had affixed 8 forged Each the Weaver ulent act which he is committed, traces (Turn (Number Three)

14. January 2, 1928 The Tipton Daily Tribune Tipton, IN
Article from The Tipton Daily Tribune, January 2, 1928

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WALB INDICTMENT. Many Counts of Ilegal Banking Transactions Are Charged. Indianapolis, Jan. 2.-Indictments charging violation of the national banking laws and conspiracy to violate the same law were returned Saturday against Clyde A. Walb, and Valentine D. Weaver, of Lagrange, in Federal court. Walb is Chairman of the State Central Republican Committee. Weaver served as president of the defunct First National Bank of Lagrange until June, 1927; while Walb was its vice president. Walb also is president of the Walb Construction Company. Arraignment was set for January 7 by Federal Judge Robert C. Both men are charged with violations involved in the closing of the bank by National Bank Examiners. The indictment is in 12 counts. Two charge Walb and Weaver with conspiracy. The others charge specific violations of the banking law, in which Weaver is pictured as the perpetrator, with Walb as the abettor. Thousands of dolars of banks funds were appropriated by the two, according to the indictment. Weaver for himself and Walb for himself and the Walb Construction Company. Sale of preferred stock of the Walb Construction Company was stopped recently by the State Securities Commission because the company was unsound. The indictment specificially charges Walb with having overdrawn both his personal and business checking account. Weaver covered up for him by honoring the checks and entering credits to Walb's accounts whether the State Chairman made deposits or not, it is alleged. Among typical overt acts in the indictment are these: June 28, 1923, Walb signed a check for $305 without funds in the bank. June 28, 1923, Weaver credited $6,000 to Walb's account. June 28. 1926. Weaver forged the name of Tobias E. Yoder to a note for $1,906.20. February 5, 1923, Walb drew 99 checks upon his personal ac+ counts, totaling $5,956.72, when his account would not cover them. the same day Weaver credited Walb's accounts with $6,000. March 3, 1924, Walb overdrew his account $4,601. Sixty-six such overt acts are listed under the two conspiracy counts, with Walb charged with having abetted such overt act of Weaver. The bank was closed October 24, 1927, by J. F. Utt, Federal Bank Examiner, serving as temporary receiver, after Department of Justice agents called by him had found $75,000 in forged paper. Utt took charge after a run on the bank. Depositors probably will be paid in full, examiners said. After returning one indictment and recommending that three persons be cited for contempt of court, the Marion county grand jury made its final report of six months investigation Saturday and urged all citizens to assume the responsibility of their citizenship and vote at elections. The name of the person indicted was kept secret. but it was announced that he was a man not under arrest and that the charges were perjury and swearing to a false affidavit. Those whom the grand jury would have cited for contempt of court are: John H. Kiplinger, Rushville, Ind., attorney; Mildred Mead, former confidante of D. C. Stephenson and L. G. Julian, Evansville, former business asso ciate of Stephenson.

15. January 5, 1928 Garrett Clipper Garrett, IN
Article from Garrett Clipper, January 5, 1928

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WANTS CLYDE WALB TO TAKE BACK WORTHLESS STOCK LaGrange. Dec. 31. Clyde A. Walb, chairman of the Republican state committee. became involved in other litigation in connection with the closing of the First National Leaves bank here when suit was filed 3:50 a. m. against him for unlawful sale of bank stock Edward A. Olney, wealthy farmer and director of the defunct bank. filed suit against Walb, asking that he take back 50 shares of the bank stock bought last August According to Olney's suit. Walb sold 50 shares of the bank's stock to him for $155 per share when its par value for the 50 shares was $5,000. Olney owned stock in the Walb Construction company at the time and it is understood that part of that stock was traded for stock in the bank. Olney already owned 50 shares of stock in the bank and was a director of that institution at the time of the latest transaction. Olney charges hat Walb knew the bank was insolvent when he sold him the stock. Assessments of 100 per cent have been made against each of the stockholders. This would make Olney's assessment $10,000. He seeks to force Walb to buy back half of the stock before he must satisfy the assessment. A deal has been made whereby Mr. and Mrs. Harry Cain of Butler have taken over the ownership and management of the new Whitley theatre at South Whitley.

16. January 5, 1928 Garrett Clipper Garrett, IN
Article from Garrett Clipper, January 5, 1928

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WALB INDICTED IN FAILURE OF LAGRANGE BANK Indianapolis, Dec. 31.-Clyde A. Walb, of LaGrange, republican state chairman for the last three and onehalf years, and Valentine Weaver, also of LaGrange, were indicted by the federal grand jury today in connection with failure of the First National bank of LaGrange. Walb was formerly vice president of the bank and resigned after the Walb Construction company of which he was president became involved Weaver was president of the bank. Walb's home at LaGrange was reached by telephone shortly after the indictment was reported. Mrs. Walb said he had just left the house. Walb and Weaver will be arraigned before Judge Robert C. Baltzell, in U. S. district court January 7. it was announced. Neither was under arrest. Ten separate charges were made against Weaver alone and three jointly against Weaver and Walb. Those against Weaver charge false entry, abstraction and misapplication of funds. The joint counts accuse them as officers of the bank of abstracting a $4,000 note signed by Samuel Wier and giving it to Wier without paying it off to the bank. They also are charged with conspiring to misapply and abstract funds for the use and benefit of themselves through the Walb Construction company and with making false entries to deceive National bank examiners. The bank was closed Oct. 24. 1927. by J. F. Utt. federal bank examiner. serving as temporary receiver, after department of justice agents called by him had discovered $76,000 in forged paper. Utt took charge after run on the bank. Weaver resigned as president last June after a director had learned some of the bank's paper was not genuine. Weaver was said to have told directors some of the money obtained with this paper was used to cover overdrafts of the Walb Construction company Walb denied his company's difficulties had been tided over by forgery of the names of others. but ma de good the amount at once. The bank is expected to be able to repay depositors almost in full through Silas D. Weaver, brother of the former president. who turned over his personal fortune of $25,000 to minimize the loss. Weaver served as pr sident/ for four years. He worked from 6 a. m. until late in the night during the time and refused to take a vacation. No one else handled the note ledger in the bank. His hard work and benevolent and philanthropic efforts made him highly popular in the community. He was superintendent of a Sunday school. Walb has been republican state chairman during a stormy time for the party. Faced with financial ceveres, he announced recently the would resign his position in the party soon. Failure of the bank was followed by collapse of the LaGrange Hardware Co. LaGrange Fixture Sales Co. and smaller merchants.

17. January 6, 1928 The Plain Dealer Cleveland, OH
Article from The Plain Dealer, January 6, 1928

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GON BARES FRAUD RING Charge of Cruelty Suffered in State Prison. (Plain Dealer Special) KoKoMo, Ind., Jan. 5.-State wide banking frauds under the Klan regime involving several public officials in the handling of state funds are alleged in the latest charges to be broadcast by D. C. Stephenson, former Klan dragon and political czar, from his lifer's cell at the state prison. After interviewing Stephenson regarding Klan interests in the bankrupt American Trust Co. here. Prosecutor Homer Miller and Grover Bishop, bank receiver, said they heard startling story. never told before, of manipulation of large sums of public money. Stephenson also renewed charges that have suffered many cruelties at state prison. have been forced into dungeons, forced to lie on a bare cement floor, stripped naked and flogged with rubber hose, blasted with cold air streams and down to only two glasses of milk Warden Sees Jackson Indianapolis this afternoon den Walter Daly of state prison into secret conference with Ed Jackson who. as secretary estate. permitted the Klan to be chartered in Indiana and who then was supported for governor by Stephenson himself. Daly was appointed Warden by Jackson Miller and Bishop asked Stephenson about $30,000 in cashier's checks to Stephenson found in the bank vaults. Stephenson picked out seven or eight checks which he said represented illegitimate transactions between himself and officers of the bank and went on to say: "If your grand jury will hear me I will unfold an amazing intrigue in connection with state wide banking frauds and handling of deposits of state money such as you have never dreamed of." Names "Brains." Stephenson named specifically the "brains" of the clique engaged in 11legal banking practices and frauds and also listed twenty individuals involved in the alleged conspiracy Clyde Walb Republican state chairman, was indicted last week for violation of federal banking laws as R. result of the failure of the First National Bank at Lagrange, Ind. One Davies, former state treasurer: Jer Symons, present state bank asioner. and Thomas D. Barr, for Symons. have been inin connection with the bmo Bank failure. ller and Bishop said they were ted courteously by Daly and officials. The interview was the presence of guard, but the guard remained beyond hearing distance. FORT WAYNE Ind., Jan. 5.Frank A. Cutshall. vice president of the Old National Bank of Fort Wayne, has been appointed receiver for the Walb Construction Co. of Lagrange, dredging concern of which Clyde A. Walb. Republican state chairman. is president.

18. April 23, 1928 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, April 23, 1928

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WALB-WEAVER JURY PICKED AFTER TANGLE Creation of New Federal Court Brings Confusion at Trial. BANK FRAUD CHARGED Special Judge Lindley Is Speeding Case of Pair at Ft. Wayne. BY CHARLES E. CARLL, Times Staff Correspondent FT. WAYNE, Ind., April ation of the separate southern and nothern Indiana Federal Court districts, made effective Saturday by President Coolidge's signature, today threw the trial here of Clyde A. Walb, former Republican State chairman and Valentine D. Weaver, into a tangle. Before the tangle was straightened, it was found necessary for Special Judge Walter Lindley of Danville, Ill., to appoint District Attorney Albert Ward of Indianapolis, who had come here to prosecute the case, a special district attorney. Ward would have been out of his jurisdiction, as he is district attorney of the southern district under Judge Robert C. Baltzell at Indianapolis. For this trial he will serve as a special district attorney for the new northern district. Charged With Bank Fraud Walb and Weaver are charged with violating national banking laws in the failure of the First National Bank of La Grange, Ind., where they reside. Weaver formerly was president and Walb vice president of the bank. After the tangle over whether the new court bill was in effect was straightened, questioning of talesmen proceedeed SO rapidly, under the dynamic urging of Judge Lindley, a short, snappy jurist, that a jury was sworn in at 12:06 p. m. The Jury includes James Husselman, Waterloo, farmer; Gail Bradley, Huntington, druggist; Clark Campbell, Auburn, farmer; John E. Peterson, Decatur, clothier; William Montgomery, Portland, farmer; T. W. Knapp, Decatur, farmer; E. W. Dodez, Ft. Wayne, manufacturer; David Rapp, Huntington, bank stockholder: Ezra Brand, Ashley, farmer; A. D. Sudtlers, Lynn Grove, real estate; .Harry Wasmuth, Andrews, lumber dealer, and John Willern, Hamilton, farmer. Warns Against Favoritism As court opened, it was the opinion of the officials that the bill signed by President Coolidge Saturday carried a clause making it effective sixty days after signature, but a long-distance telephone call by Ward to the attoreny general's office in Washington disclosed that it went into effect immediately. The court, on request of Defense Attorney Elliott, told the talesmen to disregard public opinion on their possible acts in this case. Elliott said he wanted this statement before the jurors because of the "number of bank failures in this part of Indiana." Before interrogating talesmen, the court stated that although compensation for jury service seemed inadequate, it was a public duty. This court can not function without a conscientious, industrious and honest jury. Friendship, lodge affiliations, politics, religion and spite have no place in your deliberations." Walb sat throughout the examination of veniremen, studying them closely. Weaver, who suffered two strokes of paralysis Friday, kept shifting his gaze from the court to the jury box. The courtroom was jammed with prospective jurors, witnesses and spectators. Members of the Amish sect, with beards and their dark costumes, sat stolidly watching proceedings. The defunct institution was closed by national banking officials after Department of Justice agents uncovered $76,000 of alleged forged papers on the bank's books. False Entries Charged The alleged discrepancies in the bank's account began to appear in June. 1927, and although Walb denied it, the general belief was that he informed directors of the institution that he used some of the money to finance his personal business, the Walb Construction Company. Upon investigation by the Department of Justice J. F. Utt, Federal bank examiner, closed the institution Oct. 24, 1927, and took charge as temporary receiver after a run on the bank. The case was presented to the Federal jury at Indianapolis beginning Dec. 21 and the indictment was returned against Walb and Weaver Dec. 31, 1927. Both men