4769. Farmers State Bank (Decatur, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
September 1, 1925*
Location
Decatur, Illinois (39.840, -88.955)

Metadata

Model
gpt-5-mini
Short Digest
fe3e7122

Response Measures

None

Description

The articles describe the Farmers State Bank in Decatur closing after discovery of large defalcations by cashier Frank Harrold (who committed suicide) in September 1925. A receiver (John Schroll) was appointed and pursued claims, sold assets, and paid dividends in 1926. There is no description of a depositor run prior to suspension; the sequence is closure/receivership and liquidation with dividend payments, so classify as suspension_closure (suspension/closure with receivership and permanent failure). OCR errors in articles corrected (e.g., cashier name Frank Harrold; receiver John F. Schroll).

Events (4)
1. September 1, 1925* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of extensive defalcations/forged notes and alleged embezzlement by cashier Frank Harrold led to the bank's closing in September 1925.
Newspaper Excerpt
Mr. Harrold committed suicide the of discovand bank closed the next
Source
newspapers
2. November 5, 1925 Receivership
Newspaper Excerpt
John Schroll, receiver ... affairs at the Farmers State bank have reached court stage ... depositors seeking reorganize the institution ... John Schroll, receiver, refused $1,500 fee to the Boatmen's bank ... filing of claims depositors ... receivership force at the steadily helping and claims invited . . .
Source
newspapers
3. March 17, 1926 Other
Newspaper Excerpt
With the aim of recovering from the estate of Frank Harrold ... John Schroll, receiver, on Monday county claim of $252,284.85 against ... apparent defalcations ... books started as far back 1918 . . . Mr. Harrold committed suicide the of discovand bank closed the next
Source
newspapers
4. September 23, 1926 Other
Newspaper Excerpt
Checks aggregating $231,000 have been mailed to 3,745 depositors of the defunct Farmers State Bank by Receiver John P. Schroll. This was the second dividend. following the failure of the institution more than a year ago
Source
newspapers

Newspaper Articles (10)
1. November 5, 1925 Herald and Review Decatur, IL
Article from Herald and Review, November 5, 1925

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SCHROLL REJECTS COLLECTION FEE BY BOATMAN'S BANK Receiver Refuses Charge of $1,500, and Starts Suit against In line with his determination protest payment fees outside banks collections catur notes by the Farmers bank loans, John Schroll, receiver Wednesday refused $1,500 feet to the Boatmen's bank The Louis bank presented its collection charge securing judg ment Sangamon county circuit court on notes signed originally Farmers State individuals. Mr. understood, his belief that the fees and that assets should not be reduced their by amounts. Mr. Schroll has brought in circuit court against the Phoenix Chatham bank York to cover which amount he obliged to last week as for its collections. It made at the bank yesterday the filing of claims depositors that full supply of blanks for cording claims bank. show claims advised for blanks, either personally by get their in the hands the receiver. While affairs at the Farmers State bank have reached court stage least instance, group depositors seeking reorganize the institution putting meeting group, held last night. ber of the their ment by attitude depositors thus Within said, public announcement given the reorganization plan

2. November 25, 1925 Herald and Review Decatur, IL
Article from Herald and Review, November 25, 1925

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Receipt for Missing Bond Is Produced as Claim against Bank An unusual "claim" against the bank brought attention of the the bank Monday, John Schroll, said. woman turned over Mr. Schroll receipt $1,000 Rapid Transit bond which, he said, had entrusted Frank Harrold, dead the bank, for safekeeping The previously announced in The missing vault, other face The bonds from those valued $156,000 which the taking. The woman the receipt for Mr. the had the bond against bank. opinion, she has claim against the estate Mr. Harrold, legality such undecided yet. Meanwhile Mr. receipt, which signed by Mr. Harrold. Many Claims Filed In connection Mr. Schroll announces that Farmers State bank depositors has increased greatpast few days. tributes the that unless the depositers claims they "left the cold.' through expiration claimfiling period. It is the opinion of the receiver that the last day for will revised Illinois, indefinite Mr. Schroll advises positors, on the safe and claims Saturday the biggest day for Mr. Schroll Monday was almost busy receivership force at the steadily helping and claims invited. Bank Progresses Farmprogresses, the the Macon Bank Charles Edwin the Standard Life Insurance building headquarters the organizers, Monday, said that considerable progress stock subscription $250,000 capital surplus of the bank Bachman Mr. Faster ex. plained that quite depositors aligned themselves reorganization plan are coming that depositors per deposits stock in bank, should again have clause their since entirely new bank with capital stock surplus of is organized.

3. March 7, 1926 Herald and Review Decatur, IL
Article from Herald and Review, March 7, 1926

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SHARE HOLDERS OF CLOSED BANK WAIVE SUMMONS Thirty-nine Farmers State Bank Stockholders Seek to Avoid Hearing ASK REPORT MAY closed State being into court hearing in May the brought against all by four depositors of the stitution, have signed of court of the bank, said on urday. The entries waivers Macon county sheriff, and they serve to repre the signers at the hearing of by quardepositors to collect from the the lawful their stock Under the revised Illinois banking statute, of defunct bank must pay to the depositors equal to the par yalue of their shares. 39 Shareholders Sign Although 39 the to date have signed entries of court appearance, than half dozen have their to Mr both of the bank and of ment collections made to date total $1,200. Two thousand worth of stock is outstanding many more holders to untarily." said Mr. Schroll. "Several of them live of town, and have had no opportunity as yet to pay. also to receive written of court from out Copies of the proper mailed to reof Decatur Mr. also on the demand week before last by ganized depositors of the Farmers State bank for detailed statement the bank's assets, The demand was presented 10 representing organized depositors. May Request Statement the 10 depositors of the bank many request of its that as receiver. fulfill the quest. might say. that detailed dition at my in the the at time would gathered that entire of organized matter at the Farmers State order will issued for of the the Decafor bank from the first to in been court order the the Save the Children Fund. that Floats been perfected by German ventor

4. March 9, 1926 Herald and Review Decatur, IL
Article from Herald and Review, March 9, 1926

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SIGNS ORDER TO DELIVER BANK'S CHECK Judge Baldwin Empowers Schroll to Pay Decatur State Dividend ENDS CONTROVERSY Judge James Baldwin on Monsigned circuit court order empowering John F. Schroll, receiver of the insolvent Farmers State bank. to deliver long-delayed dividend check for $17,244.02 to the Decatur State Receiver Schroll immediately turned over the check to the payee. Judge Baldwin's action ended controversy concerning the Decatur State bank's claim the Farmers State bank. Feb. committee ten. representing organized depositof the bank. raised jections the Decatur State bank's claim. with result that Judge Baldwin ordered it excluded pending investigation, from the first payment of cent dividend to depositof closed Receiver Schroll thereupon paid the dividend to all the depositors except the DeState bank. Its check for per cent of $86,220.10 Objections Withdrawn The ten later inthe records of the Decatur the permisJulius Burtschi, president the The claim found be and the ported nothing wrong with Still later. the committee withdrew their Judge Baldwin the 20 cent the claim to be paid.

5. March 17, 1926 Herald and Review Decatur, IL
Article from Herald and Review, March 17, 1926

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BANK RECEIVER AGAINST John F. Schroll Takes Action to Recover Money for Depositors ASKS FOR $252,284.85 With the aim of recovering from the estate of Frank Harrold, the Farmers State bank, sums the cashier alleged borrowed from institution, John Schroll, receiver, on Monday county claim of $252,284.85 against The of the largest been court. fullest detail the extent Mr. apparent defalcations, by which the supposedly taken. money, further shows that the books started as far back 1918. Total $187,398 The total of accordthe claim, instead estimated early after the closing the September, 1925. The revised total the result of exhaustive checking bank's records force. disclosed claim that there owing State total Mr. Harrold's signature: signature purporting that Olive Harrold, dead and signed Harrold, brother the deceased. Signatures May Be Mr. Schroll, the Charles frankly the signatures Olive M. Harrold Harrold forgeries. Both Mrs. Harrold Harrold, Mr. Mertens denied sponsibility for the notes bearing their names. the belief of the receivership force that the the notes was by and that signed Harrold" Frank Harto keep state bankintends prevent bank from borrowing more per cent bank's capital which the Farmers State bank $250,000. Interest Included The aggregate money originally times notes The between $47,260 the $50,004.44 (the amount bank) interest figured June totals is figured Frank Harrold's alleged defal$187,398.45 resulted of plan, brought light in claim, made against the bank's bond account. credits given the counts the cashier, Francis Harrold: wife, Olive Harrold, and Frank The the bond lieved, false entries bond purchases. transferring securities, "dummies "purchases", the bank's bond examination time. Frank Harrold known to have access customers' securities, with for safekeeping. Couldn't Shortage At bank examination SepMr. Harrold apparently obtain tomers the bond with the result the shortage covered. Harrold committed suicide the of discovand bank closed the next The accounts to which Mr. Harrold credit, after making charges against bond account, and the amounts credited, as follows: Decatur Foundry Francis Company 5,600.00 Olive Harrold Frank Harrold Wonder Furnace Co. Totals Decatur Foundry the Furnace The Wonder Furnace first known Decatur Foundry." Frank Harrold was president and treaconcern. also sponsor the Sangamo Oil account Francis Frank Harrold's and his The had the power to check against his wife's account. Include Interest Account In filing claim against Harestate, Receiver Schroll included item interest against the total $187,398.45 representing defalcations. The interest averaged of per total $187.plus the the notes, $252,284.85. the grand Receiver Schroll's claim against the Harrold estate.

6. June 26, 1926 The Decatur Daily Review Decatur, IL
Article from The Decatur Daily Review, June 26, 1926

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MUST EMPTY SAFE the all DEPOSIT BOXES There Farmer's Bank Receiver voted Warning to Bidders. authors. With the date for the sale of the Farmers State bank property only able about three weeks off. John Sch- There roll. receiver is anxious that the bank their staff. boxes the bank their Decatur possessions once and Saturday he by issued a public request to that The safe deposit boxes will be sold In time the other Items at the same bank July 15 and property, be given the purchaser must that he explained. the Interests of the box holders, that their belong to ings removed before that day. the or United Some : vacated holders have not, yet, their boxes,

7. September 2, 1926 Herald and Review Decatur, IL
Article from Herald and Review, September 2, 1926

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LEGAL PHASE DELAYS PAY Ready to Pay Second Dividend Now; Waits on Court ready to pay the second idend to of the State bank right John Schroll, receiver of the bank, said Wednesday, "but the question has arisen to whether another court order for the dividend necessary. Since not convene until cannot until then, sometime Mr. Schroll announced that the MuHome Savings purchase him for the State building, that the deed the to property has been turned over the association. Payment of the building's purchase price condition the second dividend bank's depositors. Receiver Schroll stated the the for the dividend figure the price hand, the will paid soon as court details settled. Interior decorators Wednesday finished painting the celling banking rooms the Farmers State Bank and soon to other decorative work. The banking for Mutual Home ings

8. September 23, 1926 The St. Louis Star and Times St. Louis, MO
Article from The St. Louis Star and Times, September 23, 1926

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ordinary girls, even the ugly ones as models First, the beautiful girls made clothes look so becoming that the less beautiful women who were induced to buy them were disanpointed because they did not look as chic as the model- had looked in the same gowns. Secondly. the beautiful ones attracted more at tention to their faces than was given to their gowns and the objeet. after all. of mannequins is to show off the clothes they wear. not to show off their own faces. $231,000 PAID DEPOSITORS IN DEFUNCT ILLINOIS BANK DECATUR. Sept. By P. -Checks aggregating $231,000 have been mailed to 3,745 depositors of the defunct Farmers State Bank by Receiver John P. Schroll This was the second dividend. following the failure of the institu tion more than a year ago and which was followed by the suicide of the cashier.

9. September 24, 1926 Clinton Daily Public Clinton, IL
Article from Clinton Daily Public, September 24, 1926

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ILLINOIS BRIEFS Decatur Checks aggregating $231.000 have been mailed to $ 745 depositors of the defunct Farmers State Bank by Receiver bhn P. Schroll This was the second dividend following the failure of the institution more than a year ago and which was followed by the suicide of the cashier. Macomb Ernest Yeast avenged the killing of R fine hen from his roosts when he stole out late one night and shot a red fox. Now Mr. Yeast is busy having the pelt into a pair of gloves. Urbana-Thirty minutes after two-year-old Bobbie Lee had swallowed several pills he thought were candies, he was dead at a hospital. Several physicians labored to save the child's life but the deadly poison had gotten too strong a hold. Sterling-Thirteen may be unlucky for some things, but for the Sterling Drum and Bugle Corps, it is mighty lucky. The local musicians were awarded third place at the Springfield convention of the Amer lean Legion, Illinois department, recently. Peoria-Toes were valued at De $250 each by a jury in the county 23e court here. Margaret Parker, Metal Mixing Spoon with every child of eight was run over by 12-oz. can heavy truck and three toes mashed, A Delicious Healthful and Invig- necessitating amputation. She was orating Drink allowed $850 damages, the extra TODAY $100 going to cover hospital and Large can, 1 Aluminum Shaker, surgical charges. major portion of the broom corn crop has been har $1.98 vested. The crop has been gather ed in fairly good condition; despite Pure Granulated Cane Sugar, the handicap of frequent rains, but lbs. $6.45 the sales are slow and the quotaWe bid 36c per doz. for fresh tions are discouraging to the Clean Eggs. growers. The few sales reported, ranged from $105 to $150 per ton. Last year, the opening sales were $250 while much of the crop brought $300. PROPERTY TRANSFERS Mary Brittin to Hazel Boling. DeKalb Cassius Pourt of Syea more has been named by the DeKalb county central committee as it choice for the office of congress man to fill the vacancy left by the death of Charles Fuller Belvidere day, movies and golf again have or ganilled to threaten the existance of an Illinois church but have been whipped by the cooperation of the Neponset and Osceola Methodis serve both churches. DeKalb+After eight years of ex perimenting A. W. Marvin, De Kalb Plumber and ameteur horti. culturist has produced what he declares to be the earliest type of apple in the state. His apple which is exceptionally large, ripened the $ .55 first week in August. One of the characteristics of the fruit is the 1.07 unusually think skin.

10. June 26, 1927 Herald and Review Decatur, IL
Article from Herald and Review, June 26, 1927

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Council Appropriates $600 to Humane Society Against Hill's Protest After Stormy Session Officials of Organization Tell Commissioners That City Being Broke "Is an Old Story Now" Despite the financial straits of the city, the Decatur Humane society, broke also and in arrears on Humane Officer F. F. Burns salary, got a $600 appropriation from the city council Saturday. The Humane society got the municipal aid, however. only after a battle in which Commissioner A. A Hill. head of the city's department of accounts and finance, held out against the appropriation, with the support of Commissioner Earl V. Smith, to the last. The council, after a stormy session in which Commissioner Hill aired the city's financial situation and declared frequently that the city is in "hot water" financially and is likely to get into "hotter water." compromised to the extent that motion for the $600 appropriation passed by vote of three to two. Commissioners Hill and Smith voted in the negative. but both offered to contribute funds personally to the Humane society. The compromise was reached when Commissioner Alex Van Praag, strongest supporter of extending city financial aid to the society, offered to pay the $600 out of the allotment of funds to the department of public health and safety, and if the department couldn't produce the total to make up the lacking amount out of his own pocket. Mayor O. W. Smith said he would try to save something from the allotment to the police department and help Commissioner Van Praag. The mayor stated emphatically, however, that the payroll of the police department must not be affected. "I'll save," said Mayor Smith, "by not buying some equipment we need badly." Earnest Appeals The Humane Society's victory was due to the earnest appeals for financial help made by L. B. Cassell, president: Mrs. G. A. Caldwell, secretarytreasurer: Henry Spencer, board member: Miss Helena Hagan, board member. and Mrs Julia Bugh, board member. They informed the council Mr. Cassell, president of the society, that the Humane society's work is suggested that the reportedly excesfor the benefit of the city, and that sive earnings of the city dog catchtherefore the city should help pay er be credited to Humane society the cost of the work. expense. Mrs. Caldwell got into tiff with Much preliminary procedure folCommissioner Hill on the subject. lowed the remarks of the society of"I wish could get you people to ficials. Commissioner Van Praag understand." declared the commis- moved that the city make the $600 sioner, "what the true financial sit- appropriation directly and the mountion of the city is. We're in hot tion was seconded by Commissioner water financially, and granting all Beecher Hughey. Commissioner Hill these requests for money is only go- objected to this motion. "I don't see ing to get us into hotter water. how it can be done," he declared. We've been figuring and pinching "We've got a deficit to take care and scraping to stay within the city's income this year. Do you know "It's a question. Mr. Hill," stated that if we commissioners spend more Mrs. Caldwell, "of whether you want than the municipality's income, we to help us financially, or let the are responsible personally society disband.' Td be glad to give you money out don't want the society to disof my own pocket. but don't see band, or the work it is doing stop- how the city can. We've got enough obligations now. For instance, we've got to pay the Farmers State bank receiver $2,198.86 that we hadn't counted on. That money's got to be raised somehow. The city's forced to pay it to pay judgment." "Being Broke An Old Story" "Something has got to be done for us, too," was the reply from the Humane society official. Other officials of the society pointed out that the fact of the city's being broke is an old story now; that the municipality probably will always be broke, but that somehow funds for important work such as the society's can always be found. ped," replied the commissioner. "I am only trying to keep city expenditures within the available income." Mayor Smith suggested that Mr. Van Praag's motion be put to vote, with the money to be taken from the general fund, which Corporation Counsel Carey said would have to be charged with the $600. Commissioner Hill persisted in his objections. The corporation counsel suggested that the money be appropriated and charged to Commissioner Van Praag's department. The commissioner agreed and the proposition, when put to a vote, carried. The money will be paid to the Humane society in nine monthly installments beginning Aug. 1.