5094. Farmers Trust Company (Indianapolis, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust
Start Date
May 4, 1931
Location
Indianapolis, Indiana (39.768, -86.158)

Metadata

Model
gpt-5-mini
Short Digest
271046cb39f0c9f2

Response Measures

None

Description

Articles report the Farmers Trust Company (Indianapolis) was closed temporarily by request of its directors on May 4, 1931 for refinancing because of lack of liquid operating capital; the state banking department took charge and within days a petition for a receiver was filed, and the institution remained in receivership and effectively defunct. No run is described in the articles. I corrected OCR small errors (e.g., 'insalvent' -> 'insolvent').

Events (2)
1. May 4, 1931 Suspension
Cause Details
Directors requested temporary closing for refinancing/reorganization due to lack of liquid operating capital; state banking department took charge.
Newspaper Excerpt
State banking department today closed doors of the Farmers Trust Company, ... The closing is temporary, according to James W. Noel, attorney director of the bank.
Source
newspapers
2. May 6, 1931 Receivership
Newspaper Excerpt
Petition filed by Luther F. Symons, state banking commissioner, in Marion circuit court today, requested a receiver for the Farmers Trust Company, which closed its doors by order of directors Monday. Investigation by his department revealed the bank is in 'a failing condition.'
Source
newspapers

Newspaper Articles (14)
1. May 4, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 4, 1931

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Article Text

FARMERS TRUST CLOSES DOORS TEMPORARILY Bank Is Not Insolvent, Statement by Board Declares. State banking department today closed doors of the Farmers Trust Company, 150 East Market street, on request of directors of the institution, for refinancing and reorganization. Thomas Barr, assistant state bank commissioner. took charge of the bank and J. W. Parrett, state banking department examiner, was working in the institution. The closing is temporary, according to James W. Noel, attorney director of the bank. Depositors Are Safe The trust company is not insalvent, a statement by directors declared, adding, "there is no doubt in the minds of the board that depositors will lose nothing and that stockholders will, even in the event of liquidation, receive large distri-, bution on their stock." Last report of the bank showed capital of $300,000; loans, $1,010,000; deposits, $1,240,000; undivided profits, $165,000, and surplus, $75,000; The state had deposits totaling $65,336.75 in the institution. C. N. Williams is president. Shortly after the Washington Bank and Trust Company closed last fall, the Farmers Trust Company invoked a ninety-day call on time deposits. Statement Is Issued Directors of the institution issued the following statment after closing today: "By action of the board of directors, the banking commissioner has been requested to take temporary charge of the affairs of the Farmers Trust Company, with a view to refinancing, reorganization or segregation of its banking business from its mortgage loan and trust business. "The trust company is not insolvent, and there is no doubt in the minds of the board that depositors will lose nothing and that stockholders will, even in the event of liquidation, receive large distribution on their stock. "The immediate cause of the foregoing action is the lack of liquid operating capital necessary to take care of the anticipated demands of depositors and at the same time to carry on the mortgage business in the manner in which it has heretofore been done. "In view of the foregoing, it was the opinion of the directors that temporary suspension will be to the advantage, not only of the depositors, but of the stockholders."

2. May 6, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 6, 1931

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ASKS BANK RECEIVER Petition Filed for Farmers Trust Company. Petition filed by Luther F. Symons, state banking commissioner, in Marion circuit court today, requested a receiver for the Farmers Trust Company, which closed its doors by order of directors Monday. Investigation by his department revealed the bank is in "a failing condition," Symons set forth in the petition. The bank was classed as a loan, trust and safe deposit company. The state banking department has taken over all books, notes and records of the institution. Last report of the bank showed $300,000 capital; $1,010,000 loans; $1,240,000 deposits; $165,000 undivided profits, and $75,000 surplus. In the bank were state deposits of $65,336.75.

3. May 6, 1931 The Indianapolis News Indianapolis, IN
Article from The Indianapolis News, May 6, 1931

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BANK RECEIVER ASKED Requests Appointment for Farmers' Company. asking the appointment of receiver for the Farmers' Trust Company was filed in circuit court Wednesday before Judge Harry Chamberlin. It was filed by Luther F. Symons, state sioner. bank day by the request of the board of direc- Cash Grate

4. May 6, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 6, 1931

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BANK RECEIVER Petition Filed for Farmers Trust Company. Petition filed by Luther mons, state Marion circuit court today, requested receiver for the Farmers Trust Company, which closed its doors by order of directors Monday. Investigation by his department revealed the bank failing condition, set the petition. loan, trust and safe deposit state banking department has taken over all books, and recof the institution. Last report the bank showed capital; loans; 240,000 deposits; $165,000 undivided profits, surplus. In were state deposits of $65,336.75

5. October 9, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 9, 1931

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# Creditors of Defunct Farmers Trust May Battle # President's Move. Creditors of the defunct Farmers Trust Company today were considering organizing to fight the attempt of Charles N. Williams, president of the bank, to obtain a court order giving him a large portion of the institution's assets. Williams has filed a petition in superior court four asking the court to allow him a claim of $292,798.39, as a secured and preferred claim over claims of depositors and all other creditors. Court records also revealed today that Williams has filed another petition demanding that several thousand dollars worth of bonds, owned by him, be returned by Boyd M. Ralston, receiver. # Exact Value Unknown In his petition, Williams states that the large sum is held by the bank, as trustee, in a "special trust account," created Nov. 8, 1930. "The bank was to hold the moneys as trustee and agreed to hold the account as secured by a first lein upon all the assets of the Farmers Trust Company," the petition contends. Assets of the bank, now held by the receiver, include real estate, bonds, stocks, mortgages and other properties. Exact value of the real estate is unknown. However, appraisers have been appointed by Judge Clarence E. Weir to appraise farm properties owned by the bank in other states. # Administration Not Possible Williams states that he "deposited of his own funds various amounts, under terms of the special trust agreement, totaling $292,789," which he demands with interest. Administration of the bank's assets will not be possible for some time, Receiver Ralston stated recently, because the value of its real estate holdings is unknown. The bank closed its doors May 4, 1931. Othneil Hitch, attorney and creditor, charged today that "Williams wrote the agreement by which he now seeks to secure this large preferred claim."

6. December 2, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, December 2, 1931

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BANKER SEEKS SEIZED LIBERTY BONDS' RETURN Head of Defunct Farmers' Trust Asks Mandate of Receiver. Two witnesses were called today in the first round of the fight of Charles N. Williams, president of the defunct Farmers' Trust Company to force B. M. Ralston, the receiver, to return liberty bonds valued at $25,000. Williams alleged in his suit today that the liberty bonds, used by the bank as surety for the deposit of Marion county government funds, are his property and not that of the bank. He alleged that he merely had loaned the bonds to the institution and introduced an agreement between him and the bank to this effect, which was signed by C. A. Plock, the vice-president. Dunn Certifies Total Harry Dunn, county auditor, testified that a total of $40,000 in liberty bonds was deposited by the Farmers bank in the Indiana National bank, to be held in escrow as surety for the county's deposit. Maximum to be deposited in the Farmers bank was placed at $80,000 by the county finance board, and $39,677.21 was on deposit when the bank closed, Dunn said. Williams' suit alleged that on Jan. 23, 1931, he loaned the Liberty bonds to the bank to be used in the manner stated above and that without his "knowledge or consent" these and an additional $15,000 of Liberty bonds were placed in escrow with the other bank. Seeks Court Order He asks that Ralston be ordered by the court to take $25,000 from the cash on hand in the closed institution and buy replacement bonds these to be returned to him. Or, he asks, that the bank pay back to the county the money on deposit, thus releasing his bonds for return, or that he be paid in cash the equivalent of the value of the bonds. Ralston counters with the statement that Williams is not a special claim, but that he only is a general creditor and that for this reason, he should take his chances with the other depositor. Henry Dowling and Henry Hornbrook appeared for Williams; and H. Nathan Swaim for Ralston.

7. March 3, 1932 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, March 3, 1932

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Notice to Preferred Creditors of Farmers Trust Company. In. the Superior Court of Marion County. Indiana. Cause No. A-61157. State of Indiana on relation of Luther F. Symons, Bank Commissioner of the State of Indiana vs. Farmers Trust Company. Notice is hereby given that on the 2nd day of March. 1932, the court made and entered an order in the above entitled cause that all persons, firms or corporations having claims or demands against said Farmers Trust Company wherein they have or claim to have any right of preference or priority of payment out of the funds. property or assets of siad Trust over general creditors and depositors of said Farmers Trust Company are required to file and they shall file the same either with Boyd M. Ralston, Receiver in said cause, at his place of business at 150 East Market street in the city of Indianapolis, Indiana, or with the court in said cause by intervening petition and leave of court for such filing, not later than Saturday the 19th day of March, 1932, under penalty of thereafter having said claims disallowed as preferred in the discretion of the court: and further thereby ordering that all claims or demands so filed as preferred shall be supported by affidavit and shall set out the amount and nature of any security or lien held by the claimant and to which the claimant is entitled, and also the basis in law or equity for the preference and right of priority of payment relied on. Dated at Indianapolis, Indiana, this 3rd day of March, 1932. BOYD M. RALSTON, Receiver of Farmers Trust Company.

8. December 14, 1932 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, December 14, 1932

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Depositors in Defunct City Banks Will Get No Dividends as Yule Gifts that his bank is expecting to make Litigation and Dullness of a 2½ per cent distribution to depositors early in 1933. Realty Market Bars The defunct Washington Bank and Trust Company, which made to Payments. a $30,000 distribution at tax paying Depositors of six defunct Inditime, sees no other payment in sight for at least six months, Brandt C. anapolis banks probably will not reDowney, receiver, announced. ceive dividend payments within the Inability to sell real estate and next six months, receivers of the farms for cash will delay any disinstitutions said today. tribution by the Farmers Trust Pre-Christmas distribution to deCompany for a similar or longer positors and creditors will be imperiod, Boyd M. Ralston, receiver, possible, receivers stated. said. Litigation over preferred claims and the depressed condition of the Depositors of the City Trust Comreal estate market are chief factors pany are receiving a $23,000 equity hindering liquidation, they said. from sale of real estate mortgage Several institution receivers are certificates issued by the company. awaiting decisions from the appel"However, this will not be dislate court regarding preferred tributed until the appellate court claims. rules on preferred claims," C. H. Although majority of the banks' Rottger, receiver, stated. claims have been heard and decidEben H. Wolcott, receiver of the ed in Marion county courts, the State Savings and Trust Company, higher court ruling may change sees "no dividends for six months at the picture of assets completely, least." A suit against stockholders according to Circuit Judge Harry is awaiting decision. O. Chamberlin, whose court is Liquidating officials of the Meyerhandling three receivership actions. Kiser bank declared they are awaitRichard L. Lowther, receiver of ing decisions from Marion county the J. F. Wild bank, denied a report) courts regarding claims.

9. July 3, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, July 3, 1933

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FARMERS TRUST OFFICERS SUED $70,000 Damages Asked From Ex-Directors of Company. Suit for $70,000 against former directors and officers of the Farmers Trust Company was filed today in superior court three by attorneys for Mrs. Mary Bain, 1425 Marlowe avenue. Allegation is made in the suit that the officials "entered into a conspiracy to cheat and defraud" through their handling of investment certificates. The suit alleges that Mrs. Bain purchased $700 of the investment certificates, which were represented as being secured by real estate mortgages equal to the full value of the certificates. Substitution of other mortgages of les svalue in the trust created for the certificates is charged in the complaint, resulting in a $70,000 loss to certificate holders. Approximately 300 persons purchased the certificates which totaled $100,000. Through the alleged substitution, assets of face value of only $78,000 were left in the trust. It is alleged that the actual value of the substituted assets is only $30,000, resulting in the $70,000 loss. The suit was filed in behalf of all of the 300 certificate purchasers. Defendants are Charles E. Coffin, Edward H. Forry, Alfred D. Hitz, Edward A. Kahn, Leroy J. Keach, Charles R. Kellogg, Frank M. Millikan, James W. Noel, Carl A. Ploch, Mark V. Rinehart, Riley E. Smith, Charles N. Williams, Thomas N. Yynne, the Farmers Trust Company and Boyd M. Ralston, receiver.

10. January 3, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, January 3, 1934

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FARMERS TRUST TO PAY: CLAIMS PROOF IS ASKED Superior Judge Instructs Depositors to File With Receiver. Preparatory to declaration of dividends to depositors of the defunct Farmers Trust Company, Judge Clarence E. Weir, superior court, room 4, yesterday ordered all small depositors of the bank to file verified proof of claims with Boyd M. Ralston, receiver, by Jan. 15. According to a petition filed by the receiver, the books of the Farmers Trust Company showed more than 1,000 accounts averaging less than $5, some of which had been on deposit more than fifteen years. Addresses of many of the depositors are not contained in the bank records. The order, as entered by Judge Weir, requires the filing of verified proof of claims with Mr. Ralston, 150 East Market street, in the following cases: Where the claim or demand in question is for an amount not more than $5; where the claim is for an account against the company on which account the books of the company show no transaction since 1927; where the claim is based on an obligation which is not shown by the books of the company; cases where the claim is based on an obligation which is evidenced by check, certificate of deposit, draft or any other negotiable instrument, and all other cases where the claim or demand is based on an obligation, the present owner or holder of which obligation is not shown by the books of the company. The order does not require filing of formal proof of claim in the case of a depositor who, at the time the bank closed, had a credit balance of more than $5 and which account had been active up to the closing of the bank.

11. February 8, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, February 8, 1934

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STATE WINS CLAIM IN FARMERS' TRUST CASE Awarded $12,000 in Ruling by Judge Weir. A claim of $12,000 asked by the State of Indiana against the closed Farmer's Trust Company was granted today by Judg eClarence E. Weir, of superior court, room four. Hearing on the claim, together with all others filed by depositors against the bank, were held Monday, prior to the granting of a request from Boyd M. Ralston, receiver, for permission to petition the Reconstruction Finance Corporation for a loan of $195,695. Judge Weir has apaproved the petition for the loan, which if granted, will be used to pay dividends of from 25 to 30 per cent to creditors of the bank.

12. April 30, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, April 30, 1934

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# FARMERS TRUST WILL # PAY $80,000 DIVIDENDS Court Approves Distribution for Firm in Receivership. Payment of approximately $80,000 dividends of the Farmers Trust Company, now in receivership, was authorized today by Superior Judge Clarence E. Weir. This amount represents 12½ per cent of divi- dends due depositors. Of this amount, $36,000 representing divi- dends to stockholders, temporarily will be held up pending a hearing Wednesday before Judge Weir. Boyd M. Ralston is receiver.

13. June 4, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 4, 1934

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# FARMERS TRUST # REPORT FILED New Appraisal of Realty Holdings May Be Asked by Receiver. Re-appraisement of real estate held by the Farmers Trust Com- pany may be requested in the near future by Boyd M. Ralston, receiver for the bank, he said in filing his third current report in superior court four before Judge Clarence Weir. The new appraisal may be neces- sary due to too high value placed

14. December 23, 1935 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, December 23, 1935

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3 DEFUNCT CITY BANKS DECLARE YULE DIVIDENDS $141,000 Is Distributed to Depositors in Time for Christmas. Depositors of three defunct Indianapolis banks have received Christmas presents of dividends in excess of $141,000, it was announced today by the receivers. The City Trust Co. declared a 5 per cent dividend amounting to $80,000 last Saturday, Oren S. Hack, receiver, said. A similar dividend payment was made in October, 1934. The Aetna Trust & Savings Co., declared a 7½ per cent dividend amounting to $60,000 last month, officials said. A 2 per cent dividend was paid this week by Maple-rd State Bank, E. Kirk McKinney, receiver, said. The amount paid was $1534 and brings the total dividend payment up to 39½ per cent. Litigation prohibits the. Washington State Savings & Trust Co., Farmers Trust Co. and Meyer-Kiser Bank from declaring dividends at this time, receivers said. Receivers for the J. F. Wild & Co. State Bank and State Savings & Trust saw no prospect of dividend payments, and the Belmont State Bank anticipates a dividend payment soon after the holidays.