5018. Northern Trust & Savings Bank (Hammond, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust
Start Date
September 12, 1930
Location
Hammond, Indiana (41.583, -87.500)

Metadata

Model
gpt-5-mini
Short Digest
a3ea18edbd402750

Response Measures

None

Description

The bank is described as 'defunct' and was closed by the state department of banking (receiver appointed Sept. 12, 1930). Closure followed discovery of embezzlement/illegal loans by president Paul B. Lipinski; no explicit bank run is described in the articles. A receiver later distributed dividends (Oct 1931).

Events (4)
1. September 12, 1930 Receivership
Newspaper Excerpt
Judge Virgil Reiter this morning ... Mr. Emery appointed receiver Sept. 12, 1930. ... the receiver this morning, the bank had assets when closed by the state department of banking
Source
newspapers
2. September 12, 1930 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed after discovery of embezzlement and illegal loans by president Paul B. Lipinski; about $105,000 dissipated from assets.
Newspaper Excerpt
receiver appointed Sept. 12, 1930. bank after offiembezzled, dissipated, $105,000 of the bank's assets. According to the statement submitted to the court the receiver this morning, the bank had assets when closed by the state department of banking
Source
newspapers
3. September 28, 1931 Other
Newspaper Excerpt
B. Lipinski, 63 year old president of the defunct Northern Savings bank of Hammond, plead guilty to charges of illegal loans and overdrafts ... sentenced to serve two to fourteen years in the state penitentiary
Source
newspapers
4. October 27, 1931 Other
Newspaper Excerpt
Ten Per Cent Cash Dividend For 1716 Depositors of Defunct Bank ... will begin distribution of checks ... This the first dividend authorized ... receiver appointed Sept. 12, 1930.
Source
newspapers

Newspaper Articles (3)
1. September 3, 1930 The Times Hammond, IN
Article from The Times, September 3, 1930

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Article Text

LIPINSKI MUST GIVE NEW BOND; SALIK SENTENCED Banker's Bond Found N. G. New Warrant Is Given Police to Serve Because his bond found to be worthless, bench issued noon today by City Judge Virgil E. Whitaker for the re-arrest of Paul B. Lipinski, president of the defunct Savings bank, and charged with in to of $225,000 of the bank's funds. The action this morning came surprise move since Lipinski's hearing not scheduled to take place until next Monday. Deputy Prosecutor Harold Hammond, the city court about to adjourn this told Judge Whitaker that he had reason to believe that Lipinski's bond of $15,000 after his arrest last Saturday noon reliable. Lipinski's bond by self Charles Baran, of Gary, who scheduled real estate to the extent of $50,000. check-up recorder's fice in Crown Point that Baran's held in the of Charles Baran, Incorporated, which makes it valueless for the purpose of a bond. The only alternative to arrest Lipinski again obtain which valid. The warrant in the hands of the police department noon and is returnable immediately. Boleslaw Salik, of the Trust, whose to police and Mr. Hammond Lipinski in his peculations, pleaded charge of the Criminal court at Crown Point by Judge Martin Smith to serve from to 14 years in prison and pay fine of $500. The statement which Salik made confessing his the funds presented court by Joe Salik. agreed that Salik will be held at the county jail at Crown Point until the trial of Lipinski, when take the against alleged Lipinski will probably plead not guilty at hearing the city week and be bound to the Criminal Approximately 250 depositors of the Northern Trust night at Polonia hall. of 11 picked at previous on Saturday night had consulted with Former Mayor E. Tinkham, of the firm of Tinkham and Galvin, present last night and explained the present situation which the bank depositors volved. Particularly those people north side homes and the duplicate mortgages and bonds issued by Action of any mainly dependent report of the of the bank to be shortly by Bank Examiner John Meyers.

2. September 28, 1931 The Times Hammond, IN
Article from The Times, September 28, 1931

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Article Text

E. Treasurer Chicago Withholds His BANKER Signature PLEADS GROCERS YOUNG SWANK PLEADS GUILTY NOT GUILTY; TRIAL OCT. 12 MAY CUT DRUNKEN [SPECIAL THE TIMES] order that might complete OF CHARGE CROWN Ind., Sept. tigations some OFF POOR Declaring throw different light Hammond Man Fails to Introduce Any Evidence [SPECIAL TO THE TIMES] CROWN POINT. Sept. 28. B. Lipinski, 63 year old president of the defunct Northern Savings bank of Hammond, plead guilty to charges of illegal loans and overdrafts Lake criminal court this morning and was promptly sentenced to serve two fourteen years in the state penitentiary at Michigan City by,Judge Martin J. Smith. him the amount which to his defunct removed to City PAUL B. LIPINSKI ment be proved. law the plead guilty in the state prison year SHOWS THE STRAIN Lipinski, showing the effects of advancing age worry attendant his predicament, appeared in court this his attorney, William J. McAleer, Hammond. The courtroom crowded to capacity. in David T. for the cutor Robert Estill John Unchief prosecutor. The latter the state. McAleer entered of guilty in behalf client. Judge Smith sentenced the former banker. Northern Trust Savings bank failed 1930. arrested the same day when fessed implicated Lipinski and the latter of illegal Lipinski later released in (Continued on Fifteen)

3. October 27, 1931 The Times Hammond, IN
Article from The Times, October 27, 1931

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Article Text

NORTHERN TRUST SEEK SOLUTION DIVIDEND PAID FOR PROBLEM OF ON SATURDAY Ten Per Cent Cash For 1716 Depositors of Defunct Bank cash dividend per cent, will paid to 1,716 the defunct Trust and bank of Hammond. Judge Virgil Reiter this mornIng the tion, The after Rae Royce, attorney representing the had presented report Judge Superior court showing $22,000 In cash available for the divi, dend. Mr. Emery announced immediateafter court that he will begin distribution of checks o'clock Saturday morning in the quarters the Northern Trust Savings bank, opposite the South station. bank open until the evening for the benefit of the depositors. If all checks not by that week the last check called This the first dividend authordepositors bank failed 25, Mr. Emery appointed receiver Sept. 12, 1930. bank after offiembezzled, dissipated, $105,000 of the bank's assets. According to the statement submitted to the court the receiver this morning, the bank had assets when closed by the state department of banking The receiver boosted this amount (Continued Page Fifteen) Members of State Commission to Talk at Hammond Chamber of Commerce Hammond's unemployment probwill be raked Thursday order to find some lution before cold weather in. The chamber soring It will start its study the luncheon with an open forum discussion the problem. Two members of Governor Harry Leslie's state mission speak. They are Dr. secretary the commitand Price, the group. These outline the operation of the Muncie of state civic leadyesterday. Following the speakers' the thrown open for forum special appointed tomorrow by President Thomas Tennant, will meet draft definite program for Hammond. This program is expected to lieve material degree this winter thus, rectly, solve the increasingly diffiproblem poor relief. According chamber officers, the unemployment relief (Continued Page Fifteen)