4772. Farmers State Bank & Trust Company (Decatur, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
February 27, 1926
Location
Decatur, Illinois (39.840, -88.955)

Metadata

Model
gpt-5-mini
Short Digest
8de432be

Response Measures

None

Description

The bank is described throughout as having suspended and become insolvent; a receiver (John F. Schroll) is in place and is actively suing stockholders. Articles attribute the failure to a cashier's shortages/speculations and his suicide (bank-specific adverse information). No contemporaneous article describes a depositor run; therefore this is classified as a suspension that resulted in closure/receivership.

Events (3)
1. February 27, 1926 Receivership
Newspaper Excerpt
A suit was initiated ... by LeForgee, Black & Samuels, attorneys for the receiver of the insolvent Farmers' State bank and Trust company of Decatur. ... according to J. F. Schroll, the receiver ... many of the stockholders have expressed their desire to pay their stock assessment ... the receiver was advised by his that he had no legal authority to accept such payment ...
Source
newspapers
2. June 1, 1926* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Failure/suspension followed discovery of cashier Frank Harrold's shortage/speculations (he committed suicide when the shortage came to light).
Newspaper Excerpt
Macon county will not lose one red copper by the failure of the Farmers State Bank and Trust company. Every penny of the public funds on deposit when the bank suspended... has been paid by the bonding company
Source
newspapers
3. July 2, 1926 Other
Newspaper Excerpt
The court action filed by the city of Decatur ... will determine whether the $31,000 the city had on deposit before the institution failed was trust fund or general deposit ... the $31,000 ... remains in the hands of the bank's receiver.
Source
newspapers

Newspaper Articles (6)
1. February 27, 1926 The Clinton Morning Journal Clinton, IL
Article from The Clinton Morning Journal, February 27, 1926

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Article Text

Bank Receiver to Sue; Local People Affected A suit was initiated in the Macon county circuit court Thursday by LeForgee, Black & Samuels, attorneys for the receiver of the insolvent Farmers' State bank and Trust company of Decatur. This suit will not only hold liable. for assessments of the defunct bank. present stockholders, but also will include all persons who held stock and sold it before the bank closed. The suit is filed against all stockholders of record between the years 1922 and 1925. According to J. F. Schroll, the receiver many of the stockholders have expressed their desire to pay their stock assessment and release themselves of any further liability but the receiver was advised by his that he had no legal authority to accept such payment and therefore the must wait until they are demanded to pay by the creditors in court proceedings The most important of all the stockholders who will be affected by such suit inolving payment on past holdings is the Standard Life Insurance company, now the International Life of St. Louis. This company, cording to the bill is liable for payments on 818 shares of stock which has par value of $31,800. The insurance company transferred its holdings in the insolvent bank before the institution was closed but under such a suit as filed Thursday It will be liable for just as much in proportion as the present stockholders. Among the stockholders are the following Clinton people: R. Conant. N. R. Hughes, Mrs. Eliza Hughes, G. W. Hughes estate, and Louis Shapiro.

2. June 5, 1926 The Clinton Morning Journal Clinton, IL
Article from The Clinton Morning Journal, June 5, 1926

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Article Text

NO LOSS FROM BANK Decatur, III., June Macon county will not lose one red copper by the failure of the Farmers State Bank and Trust company. Every penny of the public funds on deposit when the bank suspended, has been paid by the bonding company which guaranteed County Treasurer Coffman who deposited the county funds in the institution. Having reimbursed the county the bonding company now has claim on the bank for the amount paid and this sum must be paid by assessments upon the stockholders. The latter will be the principal losers by the speculations of the cashier, Frank Harrold, who killed himself when his shortage came to light. DEMOLAY CONVENTION Peoria, III., June city has been awarded the first con. vention of the Order of DeMolays department of Illinois and the date frxed for June 23 and 24. This oran auxiliary to Masonry and has numerous chapters throughout the state. A feature of the conclave will be the admittance of large number of candidates. A degree team from Moline will have charge of the initiatory rites. ASK DISSOLUTION Lincoln, III., June petition being circulated among property owners asking dissolution of the Lower Salt Creek Drainage district. Efforts to dissolve the district have been blocked to date by decisions of both the county and state court refusing dissolution permission.

3. June 5, 1926 Waukegan News-Sun Waukegan, IL
Article from Waukegan News-Sun, June 5, 1926

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Article Text

ECHOES FROM THE STATE BY THE I.N. By International News Service Beardstown. III., June 5.-A booze raid here by Deputy Guy Byus and ten deputies landed four men in jail and resulted in the hauling away of truck load of booze. Several homes were raided and the four men were arrested charged with possessing liqGOT. The twelve persons found in the places raided were each haled before Police Magistrate Newberry and fined $7.60 each for disorderly Spetagtield, 111 June 5. Illinois guardsmen are looking forward to their annual summer encampment, which will be held at Camp Grant. Knox Ky The 202nd Illinois coast artillery comprising anti-aircraft bat tories will train at Fort Ontario, N. June 12 to July C. The 58th IIIInois field artillery will spend their time at Camp Knox. Ky., June 25 to July 9. and the 33rd division. composed of infantry units will train at Camp Grant Governor Small will visit each camp to inspect the troops. Auburn. III., June 5.-This city is to have free mail delivery service starting August 1. according to word received from Washington. Two deliveries day will be made. Lincoln. III., June 5.-A petition is being circulated among property owners asking dissolution of the lower Salt creek drainage district. Efforts to dissolve the district have been blocked to date by decisions of both the county and state supreme court refusing dissolution permission. Springfield, III., June 5 A campaign for funds to war on the move for modification of the Volstead act will be laid at meeting of the state directors of the Illinois Anti-Saloon league at the Abraham Lincoln hotel. June 10. Reports have it that move will be made to oust William B. Bennett. state superintendent. Officers at Chicago hinted that such action might be taken. District officers here disclaimed all knowledge of such a plan. One state board member declared that Bennet had not been president for some time. his term having expired. and that to oust him would be Clinton. III. June 5.-Abe Clay, 38, colored. wanted in Chicago on a charge of murder as the result of a fight over pint of whiskey in a construction camp gang December 11. 1925, has been returned to Chicago to face charges. He was arrested here while in the employ of a steel laying gang of the Illinois Central railroad. He confessed his guilt, police say, and stated that he was ready to go back "if given square deal." Clay maintains that he shot in self defense to save his own life after his opponent had slashed him across the face with knife. He bears deep scar. Having but one eye. his identity was readily established. Waukegan. III.. June 5.-Boleslow Janinski has the courage of his convictions, even carrying them into the next world. Having no belief and attending no church and knowing death from tuberculosis was near, he asked that- no services be held for him. So he was buried simply and quietly in Oakwood cemetery. Decatur, III., June 5.-Macon county will not lose one red copper by the failure of the Farmers State bank and Trust company. Every penny of the public funds on deposit when the bank suspended, $170,674, has been paid by the bonding company which guaranteed County Treasurer B. F. Coffman, who deposited the county funds in the institution. Having reimbursed the county, the bonding company now has a claim on the bank for the amount paid and this sum must be paid by assessments upon principal losers by the speculations of the stockholders. The latter will be the cashier, Frank Herrold, who killed himself when his shortage came to light. Peoria, III., June 5.-This city has been awarded the first convention of the order of De Molays, department of Illinois, and the date fixed for June 23 and 24. This order is an auxiliary to !asonry and has numerous ters throughout the state. A feature of the conclave will be the admittance of large number of candidates. A degree team from Moline will have charge of the leitlatory iltes. Carbondale, III., June 5.-The annual conference of Illinois Presbyterians, the session of the Synod of IIIInois and the State Women's Synodical society will open here next Monday to continue through Friday. A large number of feature events are one the program, which is expected to be heard by a large number of delegates. Quincy, III., June 5.-Preparation of plans for the construction of an elec tric road from Quincy to Monmouth are being made here by Charles H. Petsch, president of the Quincy and Northeastern railway company, and a financial associate, T. H Talmadge, both of New York. A corps of engineers have been taking levels for a right of way and as soon as a route is decided upon the land needed will be purchased. The company has secured the authority of the Illinois Commerce commission both in relation to operation and financing and it may be possible to commence grading work during the present summer.

4. June 8, 1926 Effingham Daily Record Effingham, IL
Article from Effingham Daily Record, June 8, 1926

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Article Text

MACON COUNTY WILL LOSE NOTHING Decatur, III., June 5.-Macon county will not lose one red copper by the failure of the Farmers State Bank and Trust company. Every the public funds on deposit when suspended, $170,674. has been paid by the bonding company when guaranteed County Treasurer B. F. Coffinan who deposited the county funds in the institution. Having reimbursed the county the bonding company now has claim on the bank for the amount paid and this sum must be paid nhsessments upon the stockholders. The latter will be the principal losers by Herrold, who killed hiruself when his shortage came to light.

5. July 2, 1926 The Decatur Daily Review Decatur, IL
Article from The Decatur Daily Review, July 2, 1926

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Article Text

Seek Ruling On City's Bank Claim Officials Say $31,000 Deposit Preferred. The court action filed by the city of Decatur through Corporation I.e. Boland and Assistant Counsel John W. Mann, w the defunct Farmers State Bank and Trust Co., John F. Schroll, receiver will determine whether the $01,000 the city had on deposit before the institution failed was truet fund or general deposit, Mr. Boland stated Friday morning COURT RULE NECESSARY. It is the contention of the attorneys, LeForgee, Black and Samuels as well as the city attorneys that ruling from the circuit court is necessary to legalize the proceedings and concurrently to establish the nature of the deposit. If a further suit is taken outside of the circuit court to the supreme court it would be only what is legally termed a "friendly suit." PETITION FILED The sopetition authorized by the city council a few days ago was filed with the circuit court Thursday and immediately following a demurrer to the petition was filed by counsel for Receiver J. F. Schroll. A decision will be forwarded on the demurrer first and shortly following 13 the attorneys for both will be given hearing before the master in chancery WILL LOSE $267. At the present time the city of Decatur has $31,000, in what they claim trust deposit or preferred claim, and $276 in general funds or ordinary deposit. The municipality concedes that the $276 must be regarded as common deposit and they will be forced to lose any proportion the bank cannot pay but the $31,000 they be paid in full. MUST BE PAID. The city, to combat this $31,000. has issued in anticipation warrants the sum of $34,500 and consequently is indebted to the bank even if they should recover the full $31,000 through the court suit. This !ndebtedness of $3,500 the city realizes is a direct municipal obligation and eventually must be paid. The $31.000. until a decision from the court is given, remains in the hands of the bank's receiver.

6. December 7, 1926 The Decatur Daily Review Decatur, IL
Article from The Decatur Daily Review, December 7, 1926

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Article Text

BANK RECEIVER GETS JUDGMENT No More Circuit Court Until Next Saturday. The case of John F. Schroll, recelver for the Farmers' State Bank and Trust company 18. T C. Buxton was tried before Judge Boggs in the circuit court Monday afternoon and judgment was entered in favor of Mr. Schroll for $116.73 and costs. There will be no more circuit court