First National Bank (LaGrange, IN)

View Charter #2184 on SPMC View balance sheet

Episode Information

Episode Type
Run → Suspension → Closure
Start Date
October 24, 1927
Location
LaGrange, Indiana (41.642, -85.417)
Registered Place
La Grange
Bank Type
national
Charter Number
2184

Metadata

Episode ID
Bank ID
City ID
180437511
Model
gpt-5-mini
Short Digest

Response Measures

Capital injected, Full suspension, Books examined

Notes

Articles predict a quick reopening but subsequent coverage shows the institution became defunct and a receiver was appointed.

Events (5)
1. September 12, 1874 Chartered
Source
historical_nic
2. July 30, 1894 Voluntary Liquidation
Source
historical_nic
3. October 24, 1927 Run
Cause
Rumor Or Misinformation
Cause Details
Circulation of rumors nationwide (including about loans to Clyde A. Walb) caused depositors to withdraw accounts.
Measures
Directors closed the bank and negotiated for sale; temporary closure to stem withdrawals.
Newspaper Excerpt
Its reserves depleted by a run, the bank closed its doors yesterday.
Source
newspapers
4. October 24, 1927 Suspension
Cause
Rumor Or Misinformation
Cause Details
Directors closed the bank after reserves were depleted by the run driven by circulating rumors and frozen assets.
Newspaper Excerpt
The bank closed its doors yesterday...The bank was closed when excited depositors started run on the bank.
Source
newspapers
5. October 24, 1927 Receivership
Newspaper Excerpt
turning its affairs over to John Federal banking examiner, was appointed temporary receiver and later referred to federal authorities and grand jury investigation of officers' actions.
Source
newspapers

Newspaper Articles (11)
1. October 25, 1927 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 25, 1927

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Article Text

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

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Article Text

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.

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

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Article Text

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

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

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Article Text

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.

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

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Article Text

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.

6. October 31, 1927 Rushville Republican Rushville, IN
Article from Rushville Republican, October 31, 1927

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Article Text

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 "see him through" his financial difficulties, demands for his resignation will be renewed, if he does not voluntarily quit. Snee 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. lle has been identitied from the beginning with the organization which has sought to thwart 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 beginning and the republican state committee would be jumping from the frying pan into the fire by electing 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.

7. January 1, 1928 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, January 1, 1928

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MORE CHARGES FOR INDIANA OFFICERS Grand Jury Goes Back 6 Years For Foundation For Conspiracy Indictments IND., Dec. back New Year's Day years ago the its Grand Jury today lodges conspiracy violate the banking laws Clyde chairman the Republican State Committee Valentine Weavformer the defunct First National Bank of LaGrange The indictment of alleged The first nine charged that principal and Walb, 'aided abetted" Weaver, fraudulently misapplied funds the bank and entered forged credits for Walb and the Company which The other counts, charged the defendants with conspiracy to acts contrary the national banking The was brought the Fort case Indiana LaGrange located Warrants will sent Wayne, where the marshal on Walb and early Bond will and an day Slick the case The first date the charges when Weaver are charged starting the alleged conspiracy the date June 1927, the date of the last Weaver was president and Walb was president throughout the to hold positions until when they resigned and vice dnet and acting president. run on the bank months later closing 24 and turning its affairs over John Federal banking examiner, was appointed temporary receiver tigated its affairs and turned report the currency Washington, which understood, was ferred to the The sent out Glenn Paulover the Paulson has been the the Grand Jury in four-day taking of evidence the The nine counts against Weaver each set forth which trace through the state the Federal law violated by the action and name who aided and abetted Weaver. other charge of the carries fine not than five the penitentiary Each the last carries upon conspiracy, fine $10,000 and of not than officials office, the penalties with equal force both deof conviction INQUIRY ENDS. months inquiry political Indiana ended today discharge of Marion County Jail Grand Jury after had added another name list indicted which ready included Ed Jackson and public officials recommending that no further general investigation into charges political intrigue, the Jury that the inquiry be continued into the report that Ralph Updike, the Indiana Distract the Ku Klux Klan and life term in the Michigan City state prison The investigation should be only the that the Grand next Monday, finds been an conthe fact had the report alleged contract Steph enson and Updike, the Grand Jury said further gation the may find the fact was committed and they that the prosecutor proceed with such investigation.

8. January 1, 1928 Evansville Courier and Press Evansville, IN
Article from Evansville Courier and Press, January 1, 1928

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U.S. GRAND JURY CHARGES WALB IN BANK CONSPIRACY Former President of Defunct Lagrange Institution Also Facing Indictment DEFALCATION OF $76,000 Funds Fraudulently Entered to Credit of Walb Construction Company, Claim [Picture Page Three] INDIANAPOLIS, Dec. 31-(AP)Reaching back to New Year's day six years ago lay the foundation of its Indictment, the federal grand jury today lodged charges of conspiracy to violate the national banking laws against Clyce A. Walb, chairman of the republican state committee, and Valentine D. Weaver, former president of the defunct First National of LaGrange. The forti-page indictment contained and scores of alleged overt acts of the defendants. The first nine counts charged that Weaver, as one who "aided and fraudulently misapplied the bank and falsely credits for the benefit Valb and of the Walb which he president The other three blanket in charged defendants jointly with the conspiracy to do contrary to the banking laws of the States After Albert morning district attorney his sistants and in preparing the the proof-reading twenty-one grand charges left their chamber groups behind their foreman, dore Stunkle of library of Judge Robert Stunkle, his six fest and seven towering above his handed the indictment to the without comment. "This completes your work?" "It does,' Stunkle replied gravely. The court excused the jurors ject to call and thanked them their services. The indictment was made public by Ward. The case was brought in the Wayne division the district of Indiana, in which LaGrange located. be to where the marshal will them on Walb and Weaver probably early next week Bond will be set day fixed by Judge Thomas W. Slick of South Bend. to whose jurisdiction the automatically is transferred. RESIGNED IN AUGUST The first the charges is January 1922. when Walb and Weaver are charged with starting the alleged conspiracy which the undertook from that date until June 25, the date of commission of the last overt Weaver was president and Walb vice president the period. They continued to hold those positions until 1927 when they resigned and P. became vice acting president run on the bank two later terminated in the directors closing It October 24. and turning its affairs over to John federal banking who subsequently was appointed temporary receiver. Utt investigated its affairs and turned in report to the currency in which is unwas referred to the department of The latter agency sent out Glenn A. federal accountant. over the bank's books. Paulson been one of the principal witnesses before grand jury in its four-day taking of evidence WITNESSES CALLED Paulson brought cumulation books ledgers, cash papers, notes and affidavits from LaGrange for submission to the jurors During the inquiry, nearly forty witwere including employes of the Walb Construction company, directors and depositors of the bank and county had been affixed to forged notes. Each of the nine counts against Weaver set forth specific fraudulent act which he is alleged to have course through the books the the federal law by the and names Walb as who aided Continued on Page Three

9. 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.

10. January 6, 1928 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, January 6, 1928

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FIGURES $118,000 DEBT Receiver for Walb Company Estimates Amount Owed. Times Special FT. WAYNE, Ind., Jan. 6.-The Walb Construction Company owes $118,000, according to an estimate announced here by Frank R. Cutshall, vice president of the Old National Bank and receiver for the company. Clyde A. Walb, Republican State chairman, is head of the company. He with Valentine Weaver, former president of the First National Bank, La Grange, is under indictment by a Federal grand jury on charges of irregularities in management of the bank, which failed recently.

11. November 23, 1928 Angola Herald Angola, IN
Article from Angola Herald, November 23, 1928

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Pleasant Lake Scott Center met defeat here day night Pleasant Lake basket ball team. score, 12 to 60. Mrs. Byrl Bennett and daughter. Moberly. spent week with and Edgar Bennett Married. Sunilay, November 11. Rer. Edward Madaline Nicholls, of St. Joe Indiana, and Beecher Lemmon. They at home their friends at the late Sarah Jackson home east of town and Mrs. spent Sunde with Ethel Sunday in Fort Wayne Homer Weaver, of Fort Wayne, (ended the meeting for men the tabernacle session our Sunday schools held at the tabermorning at Mrs. Freeman Smith visiting at argis Mich. this week Aid speiety of Mount church have Thanksdinner nd home Peter Crowl on Only 25 cents for good the Young Peoples' day when Mr speak the Life. will be furnished by the crchestra under direction and Mrs. Sunday days with Mr. and Mrs Sunday at Lansing Mich. and Mrs. Harry and Mrs. Estle Landis, Mr. Howard Johnson were the and Luther lows at Union City, Mich., Sunday Shaffer speat the past few Indianapolis Miss of Winona spent the with her The Sunday orches. the the tab the church Sunday afterand the was greatly by the large Mira Barnes, of Milan Mich., and other here Mrs. Emerett Huffman colored quartet expected sing at tabernacle some night week. also men's chorus from Frank Wilcos is confined the home the result of being kicked by Meetings at the tabernacle were attended large crowds Sunday and the interest The begin at o'clock each ning. and Mrs. Waldo Hulwick of spent Sunday with Mr. and Rev Bright has wrecked the parsonage barn and is building double garage Anstett and Reba Swinehart were dinner of Mr and Mrs. Ralph Newman. near Orland Sun- The senior class play. His FathNiece' will be given early in December Annual election of officers will be held Gleaner hall Tuesday November The infant child of Mr. and Mrs Gafl Anstett died Tuesday brief service held at home Wednesday afternoon. Rev Bright Interment Pleasant Lake cemetery CLEAR LAKE Mr. and Mrs. Herbert Hull entertanied of friends, Sunday. Mr. and Mrs. George were recent callers at the home of the lat ter's sister husband, Mr. and Mrs. D. Hutchins, of Montgomery. Mrs. Clyde Logan thank the neighbors for their kindly assistance extinguishing the flames when her home caught fire Thursday evening. Logan is in poor health and confined to her bed. The fire considerable damage to the upper story of the house, Mr. and Mrs. Clifton Mr. and Chapin. of Fremont, and Wilson Duguid were Sunday afternoon callers of Mr. and Mrs. Clayton McNaughton and fam- Wendal Lawmaster was a Sunday guest in the home of Charles Waltz and Rollo Thompson. wife and two children, of Coldwater. Mich., spent Sunday with his father, Alex Mr W Duguid have moved in their farm home which has been improved this summer They as Sunday guests Mrs. Duguid's Mr. and Mrs. John Gundrum. of Freand Mrs. George Gary made business trip to Angola, Monday. Rev. Roy Brown called on Mr. and Mrs. Kint and Mr. and Mrs. Carl Kint. Thursday. pleasant day was spent at the ladies' the Baptist church Thursday of last week. The teachand fifteen pupils from the Sand school were present the noon hour Mrs. Carrie Tompkins conducted fine in the ternoon. Four dollars were added to the treasury Mrs. Charles Day spent day recently with Mrs. Charles Gunn. Miss Pauline Court returned home Monday from Battle Creek, where she has been workJames Adams was in Fort Wayne Saturday to his brother Ralph, is hospital there. Curtis Court and family and JonEglekrant spent Sunday their sister. Arthur Williamand family of John Reese wife had as dinguests Sunday their Burton and family of Camden, and Mrs. Stoner, and Mrs. Glenn Miller, of Hillsdale. Miss Joe Wicoff of spent the with her brothand Al Rowe, South Camden, spent Saturday and Sunday at Mrs Camp- Albert Steel is recovering nicely from operation he at his home last Thursday morning. Bates, of of and nurse Shoup, of Camden. Miss Clela O'Conner is gaining slowly Ray Hall and Howard Fiser Hicksvlle visitors Monday Robert Eatinger is gaining. EAST METZ Ernest Wisner and family under Fred Willibey and family and resident ville Willibey were Sunday guests of Paul Willibey's of Angola resident The Bible class took their dinners Said and spent the day with Mrs. Anna which their bid. and Mr. and Mrs. Will Enfield and son submit such affidavit failure Kenneth were Sunday guests of Mr. rejected the and James Wisner bids Lester Lechleidner and work Wavel Stackhouse and Miss Henri- agreed after board etta Sunday guests of missioners bidder Eugene Brooks and family Miss Jessie Folek was Saturday night guest of Miss Aliene Willibey 11ah Wisner, of Fort Wayne. spent Saturday night and Sunday with the home folks OF Miss Geraldine Wisner spent REAL few days last week in the home of County SeptemMr. and Mrs. James Colon, of Lockport. Ohio. Nelson Mr. and Mrs. Clarence Richardson of near Angola. spent their Mrs. Hugh Campbell Edith Kelley Auburn and family Indiana Church Notes Preaching services will be at Notice of Sale of next Sunday morning Sunday Real school will be after preaching under Junior and Senior Endeavor in the evening at 7:00 o'clock order Prayer each Wednesday evening Rev. H. B. Peter is holding revival meeting at the Hamilton Class will have class meeting with Mr. and Mrs James said Wisner Tuesday night. November Each member of the class requested to be present CALIFORNIA, MICH. Indiana the to nesday evening at home of Mr. and Urias Boyd fine time than had and good attendance for stormy night. Mr. and Mrs. Taylor. of Ba- least and and Mrs. Jay Salisand busy of Coldwater. were guests day of Mr. Mrs. Cleveland and for dinner Saturday Mrs. Genevera McNadghton was their guest. relief from Mr. and Mrs. Jake Knapp and Orlo attended birthday dinner on Sunday at home of her cash day John Taylor Other guests sister Mr and Sam Knight of West Fremont. and sister, Mr and Mrs. Dan Foulk and son Floyd. and Mr. and Mrs. Clayton Bowersox, of Jonesville in honor of Mrs. Taylor's birthday Mr. and Mrs Herle Frye and son. of Union City, spent Sunday with and The funer] Adam Cass was held at the church here. recently. He used to live here for several year past lived with his wife and Three Rivers Mr and Mrs. Tony Parka entertained company from Blissfield, Sunday. The delegates who attended the Sunday school convention Bronson Wednesday, report fine time. Don't forget the ladies' aid clety meets with Mr and Mrs. ward Stalliman this week Thursday Robert Wise is on the sick list. EAST GILEAD The rumor that Howard man was was verified the other night he with an old to which he responded generous His many friends extenddone ing Laura Heitz and son Homer from Auburn. Perry Heitz, wife and daughter Amber, from Garrett. spent Sunday with and family and attended church here, John Zull having next Tuesday he rented his farm Ross The Ladies Aid will serve lunch. Roy Garman is home with his good present Mrs. Libbie Davis returned home Sunday from two weeks' visit est with relatives in Battle Creek Rally Day will be held at Evangelical church next Sun day all day Sunday school and church in forenoon 10 and Potluck dinner at noon. Rally Day program invited especially those who have formerly attended Sunday school here. John Zull and wife and Ross and spent Sunday with Ed. Zull and Quincy Jay and of Cold water and Will Hughes and from Bethel, Sunday guests of George Steffey and family. Another dividend was paid by the Comptroller of currency creditors of the First National Bank of LaGrange. last week making total of sixty cent. paid to date. with more follow Sometimes experience teaches peothings they would rather not know