5341. Troy State Bank (Troy, IL)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
February 8, 1929
Location
Troy, Illinois (38.731, -89.892)

Metadata

Model
gpt-5-mini
Short Digest
759d6a23

Response Measures

None

Description

Bank business suspended in early February 1929 due to uncollectible assets/irregularities; a receiver was appointed in March 1929 and the bank remained closed and liquidated (final receiver's report filed by 1932). No explicit depositor run is described in the articles.

Events (3)
1. February 8, 1929 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank suspended because of inability to obtain quick collections on assets; uncollectable assets and alleged irregularities left the bank unable to meet obligations
Newspaper Excerpt
Business of the Troy State Bank was suspended yesterday afternoon after the board of directors requested the office of State Auditor of Public Accounts Nelson to make an investigation and adjustment of the bank's affairs
Source
newspapers
2. March 15, 1929 Receivership
Newspaper Excerpt
J. Irwin Hindmarch yesterday assumed charge of the bank as receiver under appointment from State Auditor Oscar Nelson He was appointed at the request of depositors.
Source
newspapers
3. July 21, 1932 Other
Newspaper Excerpt
Three years and six months were necessary to close up the bank... The total amount paid to the depositors was 47 per cent of the amount they had in the bank when it was closed on February 1929. The report has been approved by the State Banking Department.
Source
newspapers

Newspaper Articles (5)
1. February 9, 1929 The Edwardsville Intelligencer Edwardsville, IL
Article from The Edwardsville Intelligencer, February 9, 1929

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Article Text

BANK CHECKED Cashier Miles Declares tors Will Not Lose; Assessment Against Stockholders Not Required. ASSETS" EN AS ONLY TROUBLE Bank Examiners Will Spend Week Making Check quested By Directors. Business of the Troy State Bank was suspended yesterday afternoon after the board of directors requested the office of State Auditor of Public Accounts Nelson to make an investigation and adjustment of the bank's affairs with possible liquidation of accounts. Benton Miles, cashier of the bank, declared today that bank will pay 100 percent without assessment stockholders loss to depositors. accounts on which the bank was unable to obtain quick collections, were today the "cause the trouble. Miles sonin-law of Seligman, president of the bank, declared today that there irregularities. Rodenberger and Seymour, state bank examiners, have charge of the bank's affairs at present. Mr. Rodenberger said today that about week vill be necessary complete the auditing of accounts, but that he believes uncollectable sets were the only cause of the present trouble. Mr. Miles said was simply other case of the city being too small banks. He declared support two that the Troy Exchange Bank some other bank, will probably take the assets of the bank. over The Troy State Bank was organizwith capital stock May 1319, The latest report shows of of $303,000. The total resources and accounts of desaving checking between and positors range $260,000 Seligman, clerk of the Troy mine when operated Brothers Coal Coke Comby Donk pany, has president of the bank its organization. He now since in the coal business St. engaged Louis and has resided there for the past years. Michael, formerly of the Telephone viceTroy of the bank. He recently president sold the phone exchange to Edwin Frey. of the John Feldmeier, president Troy Exchange Bank. declared today for transfer of that negotiations the assets have been made. Letter Betrays Him. St. Louis Feb. East illiterate negro from Davis, 22, asked two detectives Elerson, Ark., him letter from his to read for wife, Alberta. They read, "baby, can't sleep for dreaming of you. tell to come down here, would you baby. but the law laving for held him for Arkanwhereupon they sas authorities.

2. February 26, 1929 The Edwardsville Intelligencer Edwardsville, IL
Article from The Edwardsville Intelligencer, February 26, 1929

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Article Text

BANK RECEIVER Delegation From Troy Going to Springfield for Conference With Auditor. A delegation of five residents of Tioy will go to Springfield tomorrow to ask State Auditor Oscar Nelson to recommend the appointment of Attorney Irwin Hindmarch as tenuporary and pormanent of the Trov State Bank. The five are interested as depositors of the bank and seek to save as much as possible for those with accounts and savings in the Lank. Besides the young lawyer suggested for the place the four others making the trip tomorrow Dr. W. Billings, Daniel G. Liebler, William Schmidt and James E. Hindmarch, presided at a meeting of depositois yesterday. An ariangement has been made for Attorney Hindmarch to receive flat fee of $3000 for his services instead of being paid commissions. The plan will permit far greater sum distribution among the depositors "This organization ol depositors function only in the interests ot depositors," said James Hindmarch this afternoon, "and when get the possible for distribution among them our work will be ended'

3. March 16, 1929 Belleville Daily Advocate Belleville, IL
Article from Belleville Daily Advocate, March 16, 1929

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Article Text

TROY MINE LINKED WITH 'BROKE' BANK FAILS IN PAYROLL Unable To Meet $10,000 Wages Due 150 Employes, Company Ceases Operation of Properties. TROY. ILL., March (Special) The Troy Coal Company, whose management was interlocked with that of the defunct Troy State Bank, failed to meet payroll of approximately $10,000 to 150 miners yesterday. and its properties near Troy have ceased to be operated. No reason for the failure was given the men. but A. F. Seligman, president of the coal company and of the bank, when called at his home in St Louis last night, said he supposed it was because "they didn't have the money The coal company continued operation after the bank was closed. February marketing its output in St. Louis. Seligman said he supposed the money thus received "went to pay expenses.' He would not further Steps to protect the miners' interests were taken yesterday at conference in Staunton, Ill., between John Wyatt. president of the Troy local of the Miners' Union. and Joseph Carmella. subdistrict president of the United Mine Workers of Illinois. Carmella said it will take several days to determine what is due the miners It disclosed at the time the bank failed that over a period of four years the coal company borrowed $112,000 from it to meet its payrolls. These loans were made through individuals, because the bank's capital stock limited the amount possible to loan one individual or concern to $4500. The yesterday was for the last half of February. Another payroll for several days worked the first half of March is due two weeks J. Irwin Hindmarch yesterday assumed charge of the bank as receiver under appointment from State Auditor Oscar Nelson He was appointed at the request of depositors.

4. September 7, 1929 The Edwardsville Intelligencer Edwardsville, IL
Article from The Edwardsville Intelligencer, September 7, 1929

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Article Text

Court Records Marriage Licenses. Wm. G. Gastreich, St. Louis, Elste H. Schmidt, St. Louis, 11 Samuel Darnell, Alton, 24 Hiawatha Jackson, Alton, Richard Jackson. St. Louis, Deon Albee, St. Louis, 19 New Circuit Court Cases. Charles A Lewis vs Mary Frances Lewis, divorce. Robert Finley vs Geneva Finley divorce. Bruno Bargetzi vs Annie Bargetzi, divorce. Orah E Butcher vs H. C. Chaffen et at aspt. Minerva Fairbanks vs Earl Fairbanks divorce. Ellen A Elliott VS William Elliott divorce. Probate Court Proceedings. John J Ammann minor. Guardians report approved. Alfred Thalmann, deceased. Petition for probate of will reset for hearing on Sept 27, 1929. Wilhelmina Range deceased. Final report filed and set for hearing on Sept 24, 1929. Annie Niemann deceased. Claim of Reba Reinecke for $795 set for hearing on Sept 16, 1929. Herman Farrell and Lois Vernie Littlejohn, minors allowance made for support of minors. Dora Hofemeler deceased. Final report approved. Executor ordered discharged. Mary A Williams insane. Letters of conservatorship issued to Guy L Tetherington. Bond in sum of $3.000 approved. Deeds Recorded Sept 6. Patsy Moore and husb to J Hosch lot 20 blk 5, West Madison add Ven$1. Roy S Luttrell and wf to Fred Schuler tract 11 Jarvis $1. Julius Liptak and wf to Lenka Liptak lot 22 and 23 blk 16 First add Madison $1. Paul C Worcester and wf to Martin Gradl and wf lot 9 Hawthorn Place Alton $1. Ernest Trachal and wf to Annetta Stevener lot 34 blk 10 Inglesyde III add Granite City $1. Annetta Stevener to Earnest Trachsel and wf lot 34 blk 10 Inglesyde III add Granite City $1. Walter Schmidt and wf to Philip Walter and wf pt lots and 9 bla 1 Clover Leaf add Edwardsville $1 Troy State Bank by receiver to George P Loyett NEW see 27 and other land Jarvis $1. Walter R Dennis and wf. Herbert W Dennis and wf to Leo C Winkler, Glodene E Winkler pt lots 13 and 14 blk 2 Maxeys add Upper Alton now Alton Walter A Hale and wf to Henry H Bauer pt lots*100 and 101 resub of blk Altwood add E Alton $1. John Watson wf to Charles N Miller and wf E ½ lot and W% lot & blk McNairs add Madison $5. Charles H Crocker heirs to Theo Guy Dinwiddle and wf tract in N W 1/4 sec 10 Edwardsville $1. Theodore Guy Dinwiddie and wf to Wilfred H Hotz tract NW % of sec 10 Edwardsville $1.

5. July 21, 1932 The Edwardsville Intelligencer Edwardsville, IL
Article from The Edwardsville Intelligencer, July 21, 1932

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Article Text

CHECKS TROY BANK Three for One of Three Cents, Nickel Each and AggregaNot ting Only sented at Bank. RECEIVER MORE THAN EARNS HIS SALARY Total Receipts Preferred Claims Paid and Depositors are persons who had on the celved checks from persons Troy State Bank for sums as low as three cents and aggregating only failed to present them for prewas revealed today sentation, Erwin Hindwhen the march came to Edwardsville to plan the filing his final report in the cirThe report has been cuit court. proved by the State Banking Department. Three of the checks for one nickel each and with the exception of two, all others are for less than $1. was believed that the checks being kept as souvenirs by the persons to whom they were issued. The report also shows that the celver collected $7553 which was not charged against him, more than enough to pay nis allowance and cost stenographic work. Under of rangements made when the liquidation was ordered he be allowed monthly Three years and six months were necessary to close up the bank and his salary 200. Stenographic work for over three amounted to $3045. years Legal allowed to Attorney Thomas Williamson, totalled $2985. The report shows that the total ceipts of the receiver were $150.The claims amountThey were claims ed to in which the bank or others had received collateral of the Troy Bank in obtaining advancements of money. The bank was required to pay these claims in full for the eturn of the collateral. The total amount paid to the depositors was or 47 per cent of the amount they had in the bank when It was closed on Febru1829. The total amount alary lowed the receiver for salary and cidental expenses was and the total legal expense was $3731.17. Varied miscellaneous expenses totallan dthe State Auditor's expense in closing the bank was