4911. Hindsboro State Bank (Hindsboro, IL)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
April 8, 1926
Location
Hindsboro, Illinois (39.685, -88.134)

Metadata

Model
gpt-5-mini
Short Digest
1e00fb0f

Response Measures

Full suspension, Books examined

Other: Receiver appointed and bank liquidated; criminal indictments against cashier and others.

Description

Newspapers report a run prompted by rumors which led the Hindsboro State Bank to close its doors in early April 1926 for reorganization. The state auditor was called; the bank did not reopen and a receiver (W. F. Van Voorhis) was acting by May 6, 1926 with subsequent liquidation, judgments and criminal indictments. Cause of the initial run is described as rumors though underlying problems (over‑loaned, frozen assets) are noted.

Events (3)
1. April 8, 1926 Run
Cause
Rumor Or Misinformation
Cause Details
Newspapers explicitly attribute the withdrawals to a run fueled by rumors about the bank's stability, though articles note the bank was over‑loaned and had frozen assets.
Measures
Bank closed its doors for reorganization; state auditor Carl Webber called in to take charge and audit books.
Newspaper Excerpt
Action Follows Run and Rumors; Assets Frozen Official Admits - No One Will Lose
Source
newspapers
2. April 8, 1926 Suspension
Cause
Rumor Or Misinformation
Cause Details
Bank refused to open following the run and circulating rumors; closure described as for reorganization and to protect depositors.
Newspaper Excerpt
Hindsboro State bank ... failed to open its doors for business Wednesday morning.
Source
newspapers
3. May 6, 1926 Receivership
Newspaper Excerpt
Van Voorhis has served in the capacity of receiver of the bank since May 6. He filed his report on Oct. 20 ... By the approval ... Van Voorhis is likewise authorized to sell the real estate and personal property of the bank and to take the steps necessary to wind up its affairs. (Nov. 3, 1926 article.)
Source
newspapers

Newspaper Articles (11)
1. April 8, 1926 The Tuscola Journal Tuscola, IL
Article from The Tuscola Journal, April 8, 1926

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Article Text

HINDSBORO BANK CLOSES DOOR Action Follows "Run" and Ru mors; Assets Frozen Official Admits-No One Will Lose "We have been having a little lately There were rumors afloat order to protect our depositors cided to close for reorganization re-adjustment. We hope that it not be for long." The foregoing was the statement made Wednesday by H. L. Crawford, Cashier of the Hindsboro State bank, which failed to open its doors for business Wednesday morning. Deny Any Shortage Resources of the closed institution were given by Mr. Crawford as about $250,000. He was unable to give an approximate amount of the outstanding loans or an estimate on the "frozen assets." That there was shortage anywhere in the institution' funds was emphatically denied by Mr. Crawford. There were no irregularities, the cashier stated. Bank "Over Loaned" Aside from rumors that the bank was slightly unstable financially, Mr. Crawford could assign no reason for the run. The bank was "over-loaned" he said. The Hindsboro State had some "frozen assets", he admitted, and added "who hasn't? We have some that will be slow in coming through, but we believe that we have suffi cient assets to protect us." Auditor Now in Charge At the request of the board of directors, Carl Webber, Springfield, state auditor, was called in to take charge of the bank's affairs. He was in_control Wednesday and was preparing to audit the bank's books. Re-organization is the plan that the officers of the bank hope to be able to follow and thus prevent loss to their depositors. They do not ananticipate the necessity of a receivership, Mr. Crawford stated. Crawford Aided Formation The Hindsboro State bank was organized in 1916. H. L. Crawford was largely instrumental in its formation His father, John Crawford, is president, and a brother, E. C. Crawford, is a member of the board of directors. Since it first began business, the bank has had an excettent growth Officers in the institution are: President, John Crawford; Vicepresident, J. B. Bradford: cashier. M. L. Crawford. Members of the board of directors are Percy Wyeth of Charleston, W. W. Coffey of Oakland, J. B. Bradford, D. B. Bradford, John Crawford, Crawford and C. W. Goodhart, all residents of Hindsboro.

2. April 8, 1926 Herald and Review Decatur, IL
Article from Herald and Review, April 8, 1926

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Article Text

CLOSES DOORS; TO REORGANIZE Action Follows "Run" and Rumors; Assets Frozen Official Admits ONE WILL LOSE" (Special to The Herald) April have been having lately. There In order tect depositors decided to close reorganization and We hope that it will not for The foregoing the statement made Crawford, cashier of the State bank, which to its doors for business Wednesday Deny Any Shortage Resources the closed institution Mr. Crawford about $250,000. He was give the loans an estimate on the That there was shortage anywhere the institution' funds denied by Mr. Crawford. There were no irregularities, the cashier Bank "Over Loaned" Aside from rumors that the bank Mr. assign for the run. The bank was he The Hindsboro State had some "frozen admitted, and added some that will through, but that have sufficient assets protect Auditor Now in Charge At the request the board of state called take charge He and audit bank's books. plan that the officers the bank hope to be follow and thus prevent loss their They not anticipate necessity receivership, Crawford stated. Crawford Aided Formation The Hindsboro State bank ganized in 1916. Crawford was largely His father, John is president, and brother, Crawford, member the board direcSince first began business, the bank has had an excellent growth Officers institution President, John Vicepresident, B. Bradford; cashier, H. Crawford. Members the board of directors Percy of Charleston, Coffey Oakland, Bradford. Bradford, John Crawford, E. Crawford and Goodhart all residents of Hindsboro.

3. May 15, 1926 The Decatur Daily Review Decatur, IL
Article from The Decatur Daily Review, May 15, 1926

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No Action On Hindsboro Bank Van Vorhis Appointed Receiver. May Van been charge the State having appointed Oscar Nelson Auditor, The appointed this time order that deposit boxmay released to the customers the Carl E. Waber was in Hindsboro and stated no definite action liquidation consolidation had been taken and will not days. the meantime the receiver outstanding notes the bank be put over other found this then be made. colliquidation lections can made greater outstanding paper the bank be re-opened. SCOUTS MEET outdoors meeting of the The first local boy scouts for this season held Thursday The Prof. Schaeffer furnished and and Brown's their cars woods where they held an hour and with for aid and games of structions first kinds. The boys brought their suppers place meeting and two visitors were twelve and present. WOMAN'S CLUB. Hindsboro Woman's club held The Wednesday afterits regular noon May the high school audiMrs. Alma Nilms chairtorium with man the following Call, Noted Paintings. Practical Value of Art and proGenieve Barin American Mrs. Living. Lela the Public Schools Industrial Zoe Powers and Vocal Possibilities of in the Average Minnie Reeds. were Mrs. Visitors present and daughter Murdock, Mrs. Maude Bower Miss Bess Mitchell. Champaign and Committe the given annual May Hostesses Effie and Mrs. Dora Mrs. Agnes of Reeser served orange white is visiting friends Miss Helen Louis. Arcola a caller Beggs of Wednesday. and Sylvia Mrs. Clark Arcola visitors ThursWoodall day morning. and Mrs. N. Scott and son Clarence Scott Wayne, Mrs. and Mr. and Mrs. Hindsboro Sunday Innes and Mrs. Cecil Moyer. Mr. W. Peck of Kansas visited his family here and Mrs. Ruth Murdock were daughter of Hindsboro callers Wednesday Stanley Castle and Cecil Hardway have employ Hammond, Ind., returned ment short visit with their work after home Litt Bradford and grandMrs. Norma Jean Bradford spent at the country home of Henry Mrs. Homer McBride, Miss Mr. and Hazel Innes Elden Childress Mr. and Mrs. W. H. Bush Thursday evening. Honor Roll pupils in the third and fourth May were: Third grades Lorene Ertene grade, Smith William Current 92 grade, Jantha Hall 93.87, Mildred Eversole 93.18. Louise BarLargent business caller Dana, Ind., Mrs. Abbie Curtis has been quite the last

4. July 22, 1926 JG-TC: Journal Gazette and Times-Courier Mattoon, IL
Article from JG-TC: Journal Gazette and Times-Courier, July 22, 1926

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MANY WEALTHY RESIDENTS ARE FACED BY RUIN Depositors, With About $125,000, May Receive Nothing. Special to The Journal Gazette. Tuscola, III., July failure of the Hindsboro State bank. ed Its doors early in May. seems to be completed. It looks as though the depositors, who had about $125,000 in the bank, will receive nothing in return. Everybody connected with the bank is hard hit financially and some of Hindsboro's wealthlest men are facing ruin as the result of their of. forts to tide the bank over the crisis by signing personal notes. There are now about $100,000 worth of judgments on file here against the bank officials and there are also two The bank officers were John Craw. ford, president. and Harry Crawford. cashier. E. C. Crawford. another son of John Crawford. was in the grain elevator business In Hindsboro. He is now out of business. His elevator was sold last week by the Harris Loan Company of Champaign to satisfy chattel mortgage It held. Hold Harry in School Case. Harry Crawford, the cashier be the bank, is out on $10,000 bonds to answer to the October grand jury to charge of having juggled the Hindsboro, school funds, the complainant being the treasurer of the district. The only bright thing about the failure is that every man involved is facing the failure equally. Not one has tried to evade payment by going into G. R. Jones of Tuscola, attorney for Van Voorhes, Tuscola banker, who is the bank's receiver. probably knows more about the bank's affairs than any one else and he is not very hopeful of the depositors receivmuch. Crawford Assets Low. About all the three Crawfords own are three homes in Hindsboro with mortgage of $7,000 against them, the bank building, value in much doubt as there is another bank in Hindsboro with its own building. and 400 acres of land in Mississippi that is mortgaged for all It is worth at the present time. Said Mr. Jones: "The bank's are just like others that have falled of late and date back several years when farm real estate was booming. More than $100,000 worth of loans were made that were good at the time, but when the prices of land started downward. became worthless. "The bank was hard pressed for cash and put up with other banks $90,000 worth of good paper to get $60,00 in cash and, of course, was never able to take the paper back. Directors are Desperate. "A short time before the bank failed. It now develops, some of the directors borrowed $20,000 from the Citizens' State Bank of Champaign, the First National Bank of Tuscola and the First National Bank of Ar-

5. July 24, 1926 JG-TC: Journal Gazette and Times-Courier Mattoon, IL
Article from JG-TC: Journal Gazette and Times-Courier, July 24, 1926

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totaling were Van Vooris, receiver for Hindsboro State circuit here Friday. Satisfaction judgments will assist in the assets of the Hindsboro ing State Bank. Among the judgments filed the Citizens' State Bank against Lester and Rose Hemingway for $1,046.70. The other judgments filed for the Bank for use Van Vooris, follow: Elmer Crawford and Reapartners under the name the Hindsboro Auto Sales Company, $5.875. Joseph and Ed Childers. Laretta Peck. Peck, Fred Peck, $1,131.25. Moss. $3,796. and Ole Slater, Roy Barnett. Carter Hayes and Flora Hayes,

6. July 24, 1926 Herald and Review Decatur, IL
Article from Herald and Review, July 24, 1926

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Hindsboro Bank Receiver Files for (Special to The Herald) TUSCOLA, July 24. Judgments totalling have been filed by W. receiver for Hindsboro State bank, in circourt here Friday. Satisfaction of the judgments will assist liquidating the assets of the Hindsboro State bank. Among the judgments filed was one by the Citizens' State bank of Champaign against W. P. Lester and Rose Hemingway for $1,046.70. The other judgments filed for the bank for of W. Van follow: Elmer C. Crawford and Reason, partners under the of the Hindsboro Auto Sales company. $5,875. Joseph and Ed Childers, $86.25. Laretta Peck, W. E. Peck, Fred $1,131.25. P. Innes, $1,750.55. Moss, $3.796. W. Slater and Ole $1,668.38. Roy Barnett, $9,130.50. Carter Hayes and Flora C Hayes, $632.33. FIRE IN AUTOMOBILE Fire cushion of an automobile belonging M. Hornback early Friday morning brought to the fire department from the 700 block West Wood street. The blaze was extinguished with only slight

7. July 31, 1926 JG-TC: Journal Gazette and Times-Courier Mattoon, IL
Article from JG-TC: Journal Gazette and Times-Courier, July 31, 1926

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HINDSBORO BANK DEPOSITORS LOSERS boro State bank seems to be badly busted bank. Many of the restdents of Hindsboro and vicinity are now of the opinion that the depositors will never get cent of the money they had in the bank at the time the doors were closed. It in said that there isn't enough money In the bank to conduct an audit which would throw light upon its tangled affairs. It has been stated that State's Attorney Cotton. prompted by rumors of shortages and Irregularities. will have a complete andit of the books made and conduct an investigation into its affairs. is not very likely that the board of supervisors will be willing to put up from $2,000 to $5,000 to pay for such an audit It is unfortunate If the depositors have really lost their money, but there is no reason for tacking the expense of an audit onto the taxpayers. The position of some of the deposiReeser owed the bank $3,600. and at Cashier Crawford's solicitation. she says. she placed mortgage on her farm and secured $3,600 in cash to take up the note. On April 5 she took this money to Mr. Crawford to exchange for her note and he told her that the note was in Indianapolis, having been put up as collateral security, but If she would leave the money, the note would be given her in few days' time. She thereupon deposited the money in the bank, taking a deposit slip for $3.600. Two days later the bank clos. ed and she did not have possession of her note. She is now in the position of ow. Ing the bank $3,600: has mortgage on her farm for $3,600 and holds deposit slip that is not considered worth a great deal.

8. November 9, 1926 The Decatur Daily Review Decatur, IL
Article from The Decatur Daily Review, November 9, 1926

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Judge -Approves Bank Receiver Issues Order Authorizing Property Sale. Tuscola, Nov. 3.-W. F. Van Voorhis of this city was formally approved as receiver of the Hindsboro State bank by order entered in the circuit court here Monday. Judg: Franklin H. Boggs approved the appointment. Van Voorhis has served In the capacity of receiver of the bank since May 6. He filed his report on Oct. 20 including one month preceedITE the appointment when he was acting in temporary capacity at the appointment of the state auditor. By the approval of Judge BOKES on Monday, Van Voorhis is likewise authorized to sell the real estate and personal property of the bank and to take the steps necessary to wind up its affairs. APPROVES REPORT. His report including the date. Oct. 11, which was approved by Judge D. H. Wamsley, special master in chancery. shows total cash received up to Oct. 11 $7,071.02. His collections on over drafts totalled $597.02. while the total collections on approximately $100,000 worth of paper amounted to The records show that uncollected checks, drafts and orders as cash Items amount to $15,345.57 and that claims on demand deposits are $96.839.50 and time certificates of $30.-

9. December 10, 1926 Herald and Review Decatur, IL
Article from Herald and Review, December 10, 1926

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CASHIER OF DEFUNCT BANK MAY FACE FEDERAL CHARGES OF FORGING GOVERNMENT BOND Indictment of Thirty Counts Returned by Grand Jury Against Drury and Crawford; Mrs. Hattie Bradford Brings Charges of Forgery Staff TUSCOLA. Dec. Possibility that Harry Crawford. cashier of the defunct Hinds boro state bank. may face charges in federal court were seen here Thursday when an indictment charging that Crawford the signature United bond him court by the grand the failure the New Indictment Returned of Harry and by game Representative) Crawford and Drury have already been indicted on other charges connection with the failure of the Hindsboro bank. Mrs. Bradford Accuser The the transfer of the registered bond was about Sept. according to the Mrs. Bradford the recites, in placed the Hindsboro bank for safe keeping $500 When she failed to receive credit for interest she and demandwhen the bond given return of the bond. But, she found it not had one she placed in Mrs. is to the grand jury and the in for of venue which to Judge James not heard is

10. December 11, 1926 JG-TC: Journal Gazette and Times-Courier Mattoon, IL
Article from JG-TC: Journal Gazette and Times-Courier, December 11, 1926

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MORE INDICTMENTS BY DOUGLAS GRAND JURY Special to The Journal Gazette. Tuscola, m. Dec. 11.-In an additional report of the Douglas county grand jury made to Judge Boggs at a short session Wednesday, four ad ditional Indictments were returned Two of the true bills returned were In regard to the Hindsboro State Bank failure. Harry Crawford is under one of the indictments, and Crawford and C. H. Drury are indicted jointly on charges of conspiracy with intent to defraud William Edwards. now in the coun ty jail. was indicted on charges of burglary and larceny The name of the fourth man was not revealed pending arrest. The grand jury was dismissed sub ject to further call. The petit jury was assembled but will not be used this week Judge Baldwin of Deca tur will preside over the court begin ning Monday December 13. when he will hear the arguments for and against change of venue in the Hindsboro State Bank cases

11. June 20, 1929 Herald and Review Decatur, IL
Article from Herald and Review, June 20, 1929

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Supreme Court Affirms Douglas Decision Holding Drury Guilty In Hindsboro Embezzling Case (Special to Herald) TUSCOLA. June minate of decision of the Douglas tiary the in the Cyrus H. Drury circuit court bank case by the state supreme three peal the court. cases state county. three guilty bond. $36,000 fraud- The Hindsboro was bank town. with Drury state enterprise, convicted The legal batThe prosecution under the Robert Drury indeter- term in the state penitenand also given $2,000 fine appealed from the decision of Douglas county court. This denied by the appellate was then appealed to the supreme in the year interim, has been out Hindsboro State bank closed doors Wednesday, April 1926. Customers had started the when rumors floated about Carl Webber of the bank auditor, called two make examination which later under the supervision assiststate bank examiner Crookston. findings of the which showed an unsafe financial condition brought about the resulted the arrest and Crawford. The bank had organized in 1916.