The Citizens National Bank of Hope (a National bank) failed to open Feb 14, 1929 after discovery of a large embezzlement/defalcation by its cashier (Herman/Herman A. Stewart). Federal examiners referred the matter and a receiver was appointed; the institution remained in receivership and was not resumed as an open operating bank (efforts to reorganize/reopen were proposed in June 1929 but no reopening is shown). There is no clear evidence of a depositor run on this specific bank in the articles; the regional panic and runs affected nearby banks, but Hope's closing is driven by bank-specific adverse information (embezzlement) and resulted in suspension/receivership and subsequent litigation.
Events (6)
1.February 25, 1901Chartered
Source
historical_nic
2.February 14, 1929Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of an alleged $100,000 shortage/defalcation by the bank's cashier (Herman A. Stewart) led examiners to recommend that the bank not open; directors posted notice that the bank closed and federal examiners referred the matter to the district attorney.
Newspaper Excerpt
Citizens National Bank Hope, Ind., $400,000 national bank, closed here today... closing due to $100,000 defalcation.
Source
newspapers
3.February 15, 1929Receivership
Source
historical_nic
4.February 28, 1929Receivership
Newspaper Excerpt
Bound Over to Federal Grand Jury... cashier of the Citizens National Bank at Hope, Ind., arrested... The Citibank failed to open this morning after examination by ... federal bank examiners... receiver will be appointed within days. Charles H. Ellis ... receiver for the bank is mentioned in later articles (Feb. 28).
Source
newspapers
5.March 12, 1929Other
Newspaper Excerpt
A petition for involuntary bankruptcy was filed... four creditors against Herman A. Stewart, former cashier of the Citizens National bank of Hope... receiver for the bank is pursuing assets and writs of attachment issued to seize Stewart property.
Source
newspapers
6.June 6, 1929Other
Newspaper Excerpt
REOPENING OF HOPE BANK UP COMPTROLLER... plan looking toward the opening of the now defunct Citizens National bank of Hope been submitted to W. Pole, comptroller of currency... plan would ask creditors to cut claims 40 percent and reorganize; comptroller's reaction awaited.
Source
newspapers
Newspaper Articles (20)
1.February 14, 1929Journal and CourierLafayette, IN
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SEVEN BANK FAILURES SHAKE FINANCIAL CIRCLES OF
Federal Examiner Finds Alleged Shortage of $100,000 in Accounts of Cashier of Hope Institution and Arrests Are Expected-Six Suspensions Due to Panicky Depositors.
INDIANAPOLIS, Ind., Feb. epidemic of bank crashes which reached a total of seven in the last twentyfour hours. today rocked Indiana banking circles. Six of the bank suspensions were due to mad panic that started at Bluffton in Wells The county. seventh bank closing was blamed on GENERAL BANKING IN an alleged $100,000 defalcation by cashier. INDIANA IS HOPEFUL With the mad Ind., Feb. 14. frenzy commenting today spreading from Wells county upon the closing seven Ind iana banks since sible adjoining counties, every pos. yesterday effort was made state morning total deposits banking officials and by bankLuther Symmons, ers the affected districts state banking commissioner, public fear. said: mass meetings were general banking situabeing resorted towns tion hopeful enlist citizens to help their should be by local banks the conditions in Wells county. "RUNS" NOT JUSTIFIED. seems to have lost his sense Thomas Barr, state banking Indiana Artists' who has hurried Bluffton declared upon arriving there looking over Works Will Be the situation. "The runs most banks have been without justification. Exhibited Here to comment on the possible further spread Hoosier Salon Closes in Chipanic paralyzed business Wells cago and Pictures Will Be Virtually the entire force of the Brought to Purdue Univer- state department into the field today to sity February 22. help endangered banks stem the frenzy that has been spreading Feb. Bluffton all directions. portrait August Goth, Indianapall lay parpainted by his daughter, in Wells The banks county Marie Goth, won the Harry 30 Nye special prize $200 the and 60 day nótices on withdrawpicture possessing the most als.
The panic at Bluffton had its inception the shattered banking institutions resulting from losses incurred the there on March the State bank, one of the oldest Indiana. Ralph president this bank, shot and killed himself after the bank was closed ONE BANK REOPENS. run Wells County bank Bluffton bank which deposits $1, 250,000 yesterday ing. followed by runs the Union Savings Trust company Bluffton and on other banks in the county Before day over four other banks had down, the Poneto closing half day When the Union Savings Trust of Bluffton failed open doors today, the panic spread from county to Blackford and forced the Deposit bank at Montpelier Meanwhile board of directhe National bank Hope in Bartholomew county, the bank closed after Utt, federal bank examiner found an alleged shortage the of Cashier W. LIST OF CLOSED BANKS. The seven banks closed diana since yesterday morning and their deposits follow: State bank of Bluffton, Union Savings and Trust company Bluffton, $400,000. Uniondale State bank of Uniondale Center State bank of Liberty Bank of Petroleum at Petroleum, Farmers Deposit bank of Montpelier, National Bank of Hope, $400,000.
2.February 14, 1929The RepublicColumbus, IN
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STEWART CHARGED WITH EMBEZZLEMENT $45,000 FROM CITIZENS NATIONAL
Bound Over to Federal Grand Jury and is Released on $25,000 Bond Signed By Joseph A. SpaughAdmits Manipulations, Report.
Ind., Feb. A. StewIndianapolis, cashier of the Citizens National Bank at Hope, Ind., arrested here this afternoon charges of embezon zling $45,000 and was bound over to the federal grand jury. Bond was set at $25,000 and was provided by Joseph Spaugh, Stewart's Stewart was arrested in downtown office building here by Charles LaSalle, United States marshal. The Citibank failed to this morning after examination open by Bert K. Patterson and John Utt, federal bank examiners. said he had 200 of land in BartholoStewart acres mew county and other valuable property that he intended to dispose of and make up the deficit in his accounts. He admitted manipulating funds of the bank and losses in unwise investments.
The National bank. of Hope, failed to open its doors this Citizens described by John of Fort Wayne, national morning. Indiana district, resulted in direcbank examiner for the tors of the institution passing resolution against reopening, specmeeting. Conditions discovered examination of the bank's books have Albert Ward. United States district attorney, at Inbeen referred to Utt said. Asked if criminal prosecution will result from dianapolis, Information which he to Mr. Ward, Utt answered, "Possibly." gave bank will not asked steps would be taken. He said on the condition of the bank been sent to W. Pole, and that receiver will appointed within days take charge of the bank and wind its affairs. Until that time he be in charge, Mr. Utt declared. national state banks, liable for the stock which they hold, Mr. Utt said. of the bank's books the first part this week. Mr. Utt and two assistants had the and when this the the them. the Mr. Utt they then the against bank today. Yesterday business conducted there to locate officials and the bank and obtain from them Hope reported that Martin Holder, president; Miller, Hercashier, and othbusiIn long distance with while he was learned that officers the bank had conferred with him there this morning. Mr. expected to return charge of the pending the He said the capacity of porary such is named by controller of currency Can Hear Plenty. regulations prohibitMr. going into detail found the bank. When he described the found bank he asked for details. hear plenty down Hope, said, explaining the same time that bank examinnot permitted to go into their Word bank failed open within short time and this was the chief topics of sation throughout the day. Merchants here this morning were warned against accepting the institution, the explanation that while the institution might cept would mean on number persons who residents of this among those affected by the closof the bank, as they were positors, was today. The number of increased several ago when residents this city protest against the being made by local withdrew their placed them banks Hope and other places, Regarded Strong Bank. Residents Hope, tain any very the bank's difficulties. were feel that the closing the would prove, serious matter. On streets Hope general belief that "frozen had brought about the Citizens bank for years has the strongrural banks in this section state. For nearly quarter has paid stockholders cent. interest result its stock great demand. The bank capitalized at $30,000 and addition $20,000 and undivided surplus $11,000. Joseph president (Continued on page 8)
3.February 14, 1929Palladium-ItemRichmond, IN
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CITIZENS NATIONAL BANK AT HOPE, IND., FAILS TO OPEN DOORS
Feb. The Citizen's National bank of Hope, near here. failed to open this morning and John Federal bank examiner said he had referred the Albert United States district The bank $30,000. Martin H. Holder president.
DEATH CHAIR READY Feb. The electric chair, in Cook county penal circles, tested day found ready to exact night, reprisal for murOnly court action could the three sentenced to be electrocuted midnight. They Shanks, negro slayer JenConstance. Charles Walz and Anthony Grecco. killed PoliceArthur Esau.
MINER HURT Feb. Birtle years miner this city. fatally injured today struck vania railroad locomotive here. board the train ride to he has been working in the American No. mine which reopened recently Both legs severed from Robert's body and he died within minutes.
4.February 14, 1929The TimesHammond, IN
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$100,000 DEFALCATION
HOPE, Ind., Citizens National Bank Hope, Ind., $400,000 national bank, closed here today. It reported from reliable that closing due to $100,000 defalcation. The following notice was posted the bank's resolution of the board of the Hope closed today."
5.February 14, 1929Vidette-Messenger of Porter CountyValparaiso, IN
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BANK PANIC SPREADING TO BLACKFORD
Another Bluffton Bank Closes Doors Today. Montpelier Bank Closes After Run,
WELLS COUNTY HAS ONLY BANKS OPEN
BULLETIN MONTPELIER, Ind., Feb. panic that sweeping Wells in which five banks county have been closed in two days, spread today to Blackford county and caused the closing here of the Farmers Deposit bank, $610,000 institution. Montpelier about 20 miles south of Bluffton. Officers of the closed bank said the decision to suspend was reached after run on the bank. The First National Bank of this city, the only other banking institution here, immediately posted notice on its doors advising that days notice will be required for the withdrawal savings deposits and 30 days notice on certificates deposits.
BULLETIN HOPE, Ind., Feb. The Citizens National Bank Hope, Ind., $400,000 National bank. closed here today. reported from reliable that the bank's closing The following notice was posted the bank's door: resolution of the board directors, the Citizens National Bank of Hope closed m. day.
Ind., Feb. the of the financial hysteria sweeping Wells county. yesterday forced four banks suspend operations, the board of directors of the Union Savings Trust company. $400,000 Institution. today decided close the bank.
This action which followed run the bank in which were paid out, left the City of Bluffton temporarily without bank and Wells county with only three banking institutions, those at Ossian Craigville and Poneto. The closing of the bank was tirely voluntary on the part of the bank officials who explained it was being done to the excited pubtime to draw its breath." The development came while five state bank examiners headed Thomas Barr. Assistant State Banking Commissioner, were on the scene. "Everyone seems to have lost his sense of proportion," Barr said. "Yesterday's run on the Union Savings Trust company was perfectly unjustified. The bank put out $50,000 and was offered $50,000 more to tide over today but directors didn't think they had
6.February 14, 1929Anderson Daily BulletinAnderson, IN
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HOPE BANK CLOSED
Citizens National Bank Hope. Ind. near here, failed to open this and Jorn federal bank aminer, said he had referred the mat district attorney. The bank capitalized 000. Martin Holder president.
7.February 15, 1929Chicago TribuneChicago, IL
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WARNING ISSUED AS MORE BANKS IN INDIANA FAIL
Indianapolis, Ind., Feb. 14.-[SpeFollowing the closing today of more banks, Luther F. Symons, state bank commissioner, tonight Issued a statement asserting that the general stability of Indiana banks is assured, and urging depositors not to spread rumors that might cause runs. Not a bank in Bluffton, Ind., remains open, and only the Craigsville State bank, the Farmers State bank, at Ossian, and the State Pank of Poneto, remain open in that county. Wells County bank was closed yesterday, and the Union Savings and Trust company was closed today. State banks are also closed in Wells county at Petroleum, Liberty Center, and Uniondale, and Farmers' Deposit bank, at Montpelier, nearby, was also closed today. The Citizens' National bank, at Hope, was closed today and Herman A. Stewart, age arrested, charged with embezzlement. The Studebaker bank failure, at Bluffton, started the wholesale collapse there. Sullivan authorities tonight they have received a tip that James Lang, president of the Citizens' Trust company there, who absconded some time ago with several thousand dollars, wrecking the inAll druggists. stitution, has been traced to the Pacific Coal. The numerous Indiana failures are laid to crooked bank officials, negligence on the part of the official examiners, public hysteria, and straightened circumstances in rural areas.
HELD ON BAD CHECK CHARGE.
Robert Benedict, 24 years old. manof the Evanston the Wilms Electric ager company 1616 Chicago avenue. Evanston. was taken into custody with yesterday by Evanston police and charged worthless checks amounting
8.February 28, 1929The RepublicColumbus, IN
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PROPER COURSE TO STEWART PUZZLE
Conference Fails to Bring Solution of Problem.
SECOND MEETING SOON
RECEIVER, BANK CASHIER AND DISCUSS BUT MAKE NO DECISION. three-hour conference yesterday at Hope failed to bring about for the disposition of the Herman Stewart, cashier the Citizens National bank Hope, which closed after shortage of some $100,had discovered by tional bank examiners. second effort will be made within the next days when another conference be held. The meeting was held at the bank Hope Stewart, Charles Ellis, of Muncie, who receiver for the bank: Ralph H. Spaugh, of this city, torney Stewart, and Rollin ner, Greensburg, attorney for the
Wanted an The requested Ellis and his attorney. that he would turn his property his the bank. The feeling there should some definite that some looking the of the property should be taken, asked that the meeting be held. on being arrested the day the bank closed, that would his property to The fact that large amount farm land involved and that liquidate this together with certain the other assets once would mean sacrifice of the things which was brought ing conference The attitude of those at the session that some plan, which would conserve the greatest possible degree assets, should be evolved The suggestion has been made that the land be operated under or trusteeship agreement, whether this done not been determined.
Bank Claims Not Preferred. Stewart's which has estimated gross value consists 500 of farm land in this and Shelby counties, livestock farming implements valued $20,000, some real estate Hope his personal property. Mortgages against the real total debts and liabilities expectto bring the value property close to the $40,000 mark. One of the farms which he owns being operated by tenant who verbal and who has interest the livestock wheat crop of the farm. Other affect other farm land which Stewart owns the operation of which he supervised. Through receivership action, Stewart would be entitled certain part his property, between $5,000 $10,000, he insisting that arrangement decided upon shall include provision her the extent which she is entitled under the law.
With claims of many personal creditors and those of the bank against the property, the plan by which over and by which to made firms whom indebted somewhat difficult to outline. All creditors on the footing, understood, being ferred. Stewart held stock the Citizens bank, some $4,000, and this with other liable per cent ing to Directors of the baik sought to have this claim placed in preferred list but after conferrwith were informed that could not take precedence mortgages against his real estate, of take claims. Along with other general the bank will have claim for the amount of the funds which he alleged have embezzled.
9.March 13, 1929The Edinburg Daily CourierEdinburg, IN
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RECEIVER GETS WRIT TO SEIZE ASSET
Sheriff Ordered to Take Property Valued at by Court. On Note Filed.
Indianapolis, Ind., March 12. A petition for involuntary bankruptey was filed here today by four creditors against Herman A. Stewart, former cashier of the Citizens National bank of Hope. Stewart was arrested several weeks ago on charge of $45,000 embezzlement from the bank. The creditors listed are Stafford. Freeman Gilliland, Floyd Simmons and Charles H. Ellis, who receiver for the bank. The total amount named by the four is $114,637.
Columbus, March 12. Armed with writ of attachment Sheriff Alonzo E. Fitch was to go to Hope this afternoon and seize personal property belonging to Herman A. Stewart of the value of between $1,700 and $1,800. The writ was issued by Judge Julian Sharpnack in circuit court at the request of Charles H. Ellis, receiver of the Citizens National bank, of Hope, of which Stewart formerly was cashier and directing head. Under this order Sheriff Fitch said he would seize livestock, grain farm implements and similar moveproperty sufficient to total 700 plus the cost of the action in tituted by the receiver. Sheriff Fitch said he would place this property in the custody of some resident of Hawcreek township until disposition is made of the case now on file. "With Fraudulent Intent." Mr. as receiver, grought suit on note for $1,700 which is part of the assets of the defunct bank, which closed its doors Valentine's Day on the recommendation federal bank examiners. On the same day Stewart was arrested by federal officers on charge of having embezzled $45,000 from the bank. He is now free on bond, which is returnable April The note held by the bank was given Dec. 31, 1928, and was for of 60 days. In the petition for writ of attachment. the bank receiver alleged that Stewart has old or disposed of some of his property which is subject to execution and that this was done "with Tradulent intent to cheat. hinder and delay creditors. The law firm Tremain & Turner, of Greensburg, and of Rynerson, Bryer Shinn, of this city, represent the eiver in the proceeding. When arrested, Stewart announced that he would turn over his property, the estimated value which is approximately $50,000. his creditors and to help make up shortage in his accounts at the bank, this being estimated at about $100,000. Efforts of the receivand his attorneys to get control of his property, however, have not met with success and impatient at what feel is dethey unecessary lay, they brought the suit, and obtained the writ of attachment, it understood.
10.March 19, 1929The Indianapolis TimesIndianapolis, IN
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ACCUSED BANK OFFICIAL'S WIFE FIGHTING BACK Asserts Some of Property Seized in Hope Case Not Liable. COUNTY WANTS MONEY Demand Return of Funds Deposited in Closed Institution. By Times Special COLUMBUS, Ind., March 19.-Efforts of Bartholomew county authorties to seize all property of Herman A. Stewart, indicted cashier of the Citizens National Bank of Hope, closed after discovery of a shortage of $100,000, 1 are being countered by a replevin suit brought by Mrs. Mary E. Stewart. The accused man's wife is seeking return of livestock valued at $150 which with all other property of Stewart in Bartholomew and Shelby counties was seized on attachment writs to force restitution of at least some of the money Stewart is charged with taking. Mrs. Stewart alleges the livestock was owned by her alone and therefore can not be legally held for her husband's obligations. Sheriff Alonzo E. Fitch is defendant in the replevin action. Attachment writs served by the sheriff were issued at the instance of Charles H. Ellis, receiver of the bank. Clarence A. Brooks, Bartholomew county treasurer, is demanding from the bank an immediate settlement of $6,962.20 in county funds on deposit at the time of the closing. Five of seven men who signed a bond to protect the county against loss at the time it deposited funds in the Hope bank sought to obtain a delay in pressing a claim for settlement, asserting that if immediate payment was demanded, they would be forced to borrow money. They also expressed a belief that the bank would be reopened soon. Brooks, however, refused to grant a delay, asserting that as treasurer he is responsible in case a loss should occur.
11.March 29, 1929The Edinburg Daily CourierEdinburg, IN
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WILDMAN PAYS ASSAULT FINE
Spaugh Files Second Charge Against Bank Receiver's Aid.
Columbus, Ind., March 28. August K. Wildman, 22, ant to the receiver of the Citizens National bank at Hope. this morn ing plead guilty in the court of Henry Barmes, justice of the peace at Hope, to charge of assault and battery in connection with some trouble which he had Tuesday with Joseph A. Spaugh, 70, forme president of the Citizens bank Wildman was fined $1 and costs, making $10.60 in all, Barmes and this he paid. The charge, the second one to be preferred against Wildman by Mr Spaugh, was filed this morning and soon afterwards George Hitchcock. constable, arrested Wildman and took him into the justice the peace court. Yesterday Wildman was arrested here by Sheriff Alon ZO E. Fitch charge of making slanderous statement, this, too having been preferred by Spaugh. He is free on bond of $100, pending hearing in this case. Statement by Wildman's Attorney. The charge of assault and bat tery grew out of the fact that Wildman took hold of Mr. Spaugh's arm and turned him part way around when he made the allegeo slanderous remark to the prosecut ing witness, Lloyd C. Bryer, of this city, who represents Wildman in the slander said. case, Wildman did not want to lose any more time from his work than necessary and therefore went into court and paic his fine, rather than take the time required contest the case. Mr Bryer said. Mr. Spaugh alleges that Wildman interrupted him and Jesse Smith, resident of Hope, while they were talking on street in Hope and said: "You are crook. You are #: big a crook as Herman Stewart thief and so are you." Mr Bryer in discussing this alleged slanderous statement said that if his client did say this, and that he was not admitting it was said. believed Wildman was speaking the trouble which occurred at the Herman A. Stewart home. north Hope, Saturday night when Sherif Fitch went there to seize an auto mobile. Wildman contends that Mr Spaugh sat in car during the trouble there and that he neither made any effort to aid the sherify or to stop his son, William Stewart The Stewarts Monday paid fines the court of Stanley Cooper, jus tice of the for assault peace, and battery in connection with an at tack which they made on Wildman Wildman, according to his attor ney, was not referring to any the affairs of the Citizens bank in his statement to Spaugh, if he made the statement, Mr. Bryer de clared. Mr. Spaugh contends that he just drove up to the Stewart home as the trouble there ended. Spaugh Issues Statement. Mr. Spaugh today issued state ment in which he said the trouble between him and Wildman grew out of the fact that he had signed bonds for Herman Stewart his He said that "at time have condoned or made excuses for Herman Stewart's great wrongs. And, while my sympath: for his family may be greater that my judgment, feel that have acted within my right and the law Mr. Wildman, in the presence of another man, came to home my with veiled threat Saturday night as to what the consequences be if signed any more of Her man Stewart's bonds. invite the whole world to search the gloomy catalog of this bank for anything did that ever had the appearance of wrong. never overdrew my bank account in my life. cannot conceive how could take something for nothing."
12.April 20, 1929The Indianapolis TimesIndianapolis, IN
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# PICK BANKER'S RECEIVER
Carl C. Harrison Named to Salvage
Affairs of Herman Stewart,
Carl C. Harrison, Greensburg (Ind.) banker, has been named trustee by creditors of Herman A. Stewart, bankrupt, former cashier of the Citizens National Bank, Hope, Ind., at a creditors' meeting before Carl Wilde, federal bankruptcy referee.
Stewart, who faces federal charges in connection with closing of the bank, listed $166,511 total liabilities and $75,576 assets.
13.April 26, 1929The RepublicColumbus, IN
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HOPE BANK RECEIVER SUES ON TWO NOTES
Charles H. Ellis, receiver of the Citizens National bank, of Hope, has filed suit in circuit court here against Marjorie and Raymond Wolford. complaint on two notes, demand $750. One of the notes IS for $200 and was drawn Feb. 5. 1929. The other one is for $400 and was drawn Nov. 20, 1928, according to the complaint. Interest on each of these was at the rate of 7 per eent.
The American Red Cross was incorporated by an act of congress in 1905.
14.June 6, 1929The RepublicColumbus, IN
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REOPENING OF HOPE BANK UP COMPTROLLER
Official Will Request InvestiFirst, Those Intergation ested Believe.
CENT CUT ASKED
TO PAID IN FULL CLAIMS K'D. plan looking toward the opening of the now defunct zens National bank of Hope been submitted Pole comptroller currency Washington, his reaction proposal being awaited by persons interested seeing the reestablishment of the bank, was learned today. No indication has been given as when may expectfrom Pole, suggested today that probably will ask for an and report by Charles Ellis, of Munthe fairs of the bank receiver. Mr. Ellis has not been asked for report, is understood. Under the plan submitted. all creditors of the be asked claims cent, understanding that an fort made after the reopenthe institution to pay creditof the profits of the Then ing this deduction, $60,000 stock will and the bank organized. of the money tained the stock would used to the bank's indebtedness, the remainder would constitute the capital and surplus. The sale the stock has practically been understood, pledges been made for the entire amount, sponsoring the reopening the institution
Some Creditors Paid.
If the approval of the comptrolof currency obtained, rangements then have made general creditors of the bank, positors, that they agree take cent their claims. Sponsors the plan declare that creditors will the bank and paid claims than the affairs of the institution are wound up under the ceivership. Some the creditors the have been paid by Mr. Ellis authorization from the of rency. Under this the National bank Indianapolis, has paid $24,this institution having held security to indemnify against Claims totaling have been approved and receiver's cerbeen issued these claims, totaling to be made, to records the bank, and these few claims listed on the books are expected be filed. Claims filed include those of depositors other of the bank. When records the bank the claims filed by creditors receiver's certificates issued However, no record found the bank, the all the rency for his approval or Creditors until June file claims. After that date
(Continued from page
15.June 7, 1929The Edinburg Daily CourierEdinburg, IN
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HOPE BANK UP TO COMPTROLLER
Creditors, However, To Be Paid Full Later, Expectation$259,767 Claims K'd. plan looking toward the opening of the now defunct Cit: zens National bank of Hope ha been submitted to W. Pole, comp troller of currency at Washington and his reaction to the proposa now is being awaited by person interested in seeing the re-establish of the bank, was learned ment today. No indication has been given to when an answer may be expect ed from Mr. Pole, although it wa: suggested today that he probably will ask for an investigation and report by Charles H. Ellis, of Mun cie, who is now in charge of the af fairs of the bank as receiver. Mr Ellis has not yet been asked for report, it is understood. Under the plan submitted, creditors of the bank will be asked to cut their claims 40 per cent with the understanding that an effort will be made after the reopening of the institution to pay credit ors full out of the profits of the business. Then with creditors agree ing to this deduction, stock will be sold and the bank Part of the money organized. tained from the sale of stock would be used to settle the bank's indebt edness, and the remainder would constitute the capital and surplus The sale of the stock has practi cally been assured, it is understood as pledges have been made for the entire amount, persons sponsoring the of the institution reopening have announced. Some Creditors Paid. If the approval of the comptrol ler of currency is obtained. ar rangements then will have to be maile with the various general creditors of the bank, including de positors, that they will agree cent of take the 60 per payment their claims. Sponsors of the plar declare that creditors will realize more if the bank is reopened and 60 per cent is paid on all claims if the affairs of the institu than tion are wound up under the Some of the secured ceivership. creditors of the bank already have been paid by Mr. Ellis on authorization from the comptroller of cur rency. Under this arrangement the National bank of Indianapolis, has been paid $24, institution having held this collateral security to indemnify against loss on its claim. Claims totaling $259,767 have been approved and receiver's certificates have been issued on these Additional claims, totaling $75,000, are yet to be made, according records at the bank, and besides these few claims not listed on the books are expected to be filed. Claims filed include those of depositors and other creditors of the bank. When records in the bank and the claims filed by creditors are in accord, receiver's certificates are issued immediately. However, when no record is found in the bank, the claim, together with ali available information concerning it, is sent to the comptroller of currency for his approval or rejection. Creditors have until June 22 in which to file claims. After that date all claims will be outlawed, it understood. To Close at Noon Saturday. Mr. Ellis maintains his office in the room formerly occupied by the bank, the fixtures and equipment of the institution not having been disposed of. In the past the office has been open on Saturday afternoons, but in the future it will closed at noon on Saturdays, August Wildman, assistant to the received, announced today. Under this arrangement Mr. Ellis will be enabled to go to his home in Muncie for and Mr. Wildman will be able to go to his home in Lafayette. The office is open from 8:30 o'clock until 12 o'clock in the morning and from o'clock until week except Sateach day urday.
16.July 13, 1929The Indianapolis TimesIndianapolis, IN
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THREE ARE BANKRUPT Two List Indebtedness of $25,000 to Citizens National Bank of Hope. Listing indtebedness of more than $25,000 to the Citizens National Bank of Hope, Ind., now in receivership, two Columbus (Ind.) men have filed voluntary bankruptcy petitions in federal court. William C. Galbraith, farmer, listed $41,561 liabilities of which nearly $14,000 represents notes held by the bank, and assets of $9,947. Charles F. McCallie. real estate agent, listed $33,130 liabilities, including a similar amount owned to the bank, and $10,407 assets. McCallie was a director in the bank. Charles G. Irvin Hamilton county farmer, listed $17,251 liabilities and $14,210 assets in another petition.
17.October 12, 1929The Indianapolis TimesIndianapolis, IN
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RECEIVER OF DEFUNCT BANK SUES ON NOTES Three Actions Brought for $5,700 Due Institution at Hope. Three suits to recover a total of $5,798 on notes held by the defunct Citizens National bank of Hope. have been filed in federal court by Charles H. Ellis, receiver. Defendants and judment asked are: Rush W. Isley and L. M. Isley, R. R. 4, Shelbyville, $898; John G. Schaefer, Hope, $3,500, and Willie R. Carman, Cecil B. Carman and Georgia A. Isley, $1,400. Herman A. Stewart, former cashier, of the bank, has pleaded guilty to nine counts of a federal indictment charging embezzlement, which resulted in closing of the bank.
18.January 29, 1930Journal and CourierLafayette, IN
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Receiver. of Defunct Bank Sues Directors
Ind., Jan. mittee have its first directors the of here National bank defunct Senator Clyde charged with Hope, Ind., were made Indianapolis, was suits on file ligence in two court today. federal bank receiver, Charles which Prima Donna Dies sued the bank lost said BERLIN. Jan. directors donna, Emmy Destinn, prima Herman former cashis serving today of now She was 51 old. federal years sentence at the prison Kan., Mme. Destinn became one of the connection with the most famous figures European $100,000 of bezzlement opera of the first quarter bank's funds. century.
19.March 5, 1930The Indianapolis TimesIndianapolis, IN
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# NAME FORMER BANK
# AIDS IN COURT SUIT
Receiver of Hope, (Ind.) Institution
Seeks Judgment of $17,450.
Judgment of $17,450 is asked in a suit filed in federal court against William H. Mobley, Hope, Ind., and Herman A. Stewart, former cashier of the Citizens National bank of Hope, recently convicted of embezzlement in federal court, by Charles Ellis, bank receiver.
The suit is based on three notes, two of them given to Stewart by Mobley and indorsed to the bank, and a $5,896 check given by Mobley and alleged to have been held up by Stewart and not charged against Mobley's account.
20.March 28, 1930The RepublicColumbus, IN
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Article Text
HOPE BANK RECEIVER SUES ON MORTGAGE
Charles H. Ellis, receiver for the Citizens National bank, of Hope, has filed a complaint in the Bartholomew circuit court against Roy Kent and Ethel Kent, on a promissory note, demanding $1,740. The complaint also seeks to foreclose mortgage on 40 acres of land in Hawcreek township. The return date is set for April 12. The complaint is in five separate paragraphs. The first sets out that Roy Kent and Ethel Kent issued their promissory note to the bank for $1,000 at per cent interest on March 26, 1927, at which time they executed their mortgage on the 40 acres The amount now due on this note, including attorney fees, is $1,375. On Dec. 1. 1928, the defendants executed their note to the Hope Poultry Breeders Association for $25, at per cent. The amount due and demanded on this note is $35. Paragraph three sets out that the defendants secured $15.63 from the Hope bank on July 9, 1928, at per cent, on which note $25 is now demanded. Paragraph four sets out that the defendants secured $55 from the bank on July 9, 1928, at 7 per cent, for which $80 is demanded. Paragraph five claims that the defendants secured $234.78 from the bank on July 9, 1928, per cent, and $350 is now demanded.
