5477. Union Savings & Trust Company (Bluffton, IN)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
trust company
Start Date
February 14, 1929
Location
Bluffton, Indiana (40.739, -85.172)

Metadata

Model
gpt-5-mini
Short Digest
6ad6682f

Response Measures

Full suspension, Books examined

Other: Liquidating agent appointed after March suspension; final distributions to depositors in 1929.

Description

A $50,000 run Feb 14, 1929 prompted the bank to close (suspend) and invoke the 60-day reorganization period. It reopened March 21, 1929, but a renewed steady drain/run forced suspension again March 23, 1929. After the second suspension the bank remained in liquidation (liquidating agent appointed in March) and later made distributions to depositors, so the episode ends in permanent closure/liquidation.

Events (6)

1. February 14, 1929 Run
Cause
Local Banks
Cause Details
Panic in Wells County after several local banks suspended/failed produced heavy withdrawals from Union Savings & Trust (financial hysteria).
Measures
Directors closed bank and planned to take advantage of sixty days for reorganization; closed by board as precaution with state examiners' consent.
Newspaper Excerpt
closed its doors this morning after a $50,000 run yesterday.
Source
newspapers
2. February 14, 1929 Suspension
Cause
Local Banks
Cause Details
Directors suspended operations following the run and widespread county banking panic; closure was described as voluntary/precautionary to give depositors time and allow reorganization.
Newspaper Excerpt
closed its doors this morning after a $50,000 run yesterday. ... officers said they expected to take advantage of the 60 days permitted by law to effect a reorganization and then hoped to reopen.
Source
newspapers
3. March 1, 1929* Other
Newspaper Excerpt
bank ... has been in charge of a liquidating agent since last March ... gave depositors ... checks for a payment of 10 percent of money due. ... total distribution ... for a total of 40 percent.
Source
newspapers
4. March 1, 1929* Receivership
Newspaper Excerpt
state banking department ... authorized D. A. Walmer ... to act as liquidating agent.
Source
newspapers
5. March 21, 1929 Reopening
Newspaper Excerpt
The Union Savings and Trust Company Bank, after being closed since Feb. 14 ... was reopened today. A complete check of its condition was made to reassure depositors.
Source
newspapers
6. March 23, 1929 Run
Cause
Local Banks
Cause Details
Renewed lack of public confidence and steady withdrawals (effectively another run) after reopening; cited as 'lack of public confidence' and 'steady drain'.
Measures
Directors again suspended operations as a precautionary measure; plans for further action undecided at announcement.
Newspaper Excerpt
reopened its doors only last Thursday, was forced to suspend business again at noon today owing to a 'steady drain' on its resources.
Source
newspapers

Newspaper Articles (19)

Article from The Messenger, February 14, 1929

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BANKS CRASH AFTER RUNS TAKE FUNDS Six Indiana Institutions Topple and Receivers Are Sought. BLUFFTON, Ind., Feb. Union Savings Trust Company, the only remaining bank in Bluffton, closed this morning after $500,000 run yesterday. The Farmers Deposit Bank of Montpelier closed due, was said here, to $500,000 run yesterday. Four banks Wells county closed yesterday. President Fred of Tangeman, the Union Savings Trust Company, said his bank was solvent, and he hoped to reopen the institution after the usual sixty days for reorganization. Insolvent, Claim. Following the closing of four Wells county banks yesterday, Luther Symons, state bank commissioner, appeared in circuit court with two petitions asking that receivers be appointed for the Wells County State bank, of Bluffton, and the State Bank of Uniondale, two of the institutions that closed. The bank of Petroleum and the Liberty State bank also suspended operations. The petitions set out that examinations by the banking department the Well County State bank of Uniondale failing and insolvent Judge W. Hamilton set February 21 as the date for hearings on the petitions. The Wells bank County was capitalized at $100,000 and showdeposits of $1,250,000. The Union Savings and Trust company now is the only bank in Bluffton. The Studebaker bank failed in 1927, with deposits of $1,500,000. Receivers as yet have made no payments on deposits.


Article from The Republic, February 14, 1929

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FIFTH BANK TO FAIL IN WELLS COUNTY Bluffton Institution, Also One Near Blackford Border, Closed Today. HEAVY RUNS ARE CAUSE OF UNION TRUST CO. HOPE TO REOPEN AFTER THEY Ind., Feb. Union Savings Trust the closed its doors this after $50,000 yesterday. The Deposit Bank on the county line, also closed this morning, said to an $18,000 yesterday. Four banks in county closed yesterday. Fred Tangeman, president the Union Savings Trust Co., Thomas Barr. examiner, the closing was due the bank and that institution solvent. Officers directors said they expected take advantage of the permitted by law to reorganize, hoped re-open. Union ings Trust had deposits of $800,000. Yesterday the Wells County State bank, with deposits of 000, closed. few hours later, the state bank Uniondale closed. Petitions were filed in the circuit court asking receivers for both banks, alleging they were "failing and condition." The of Petroleum and the Liberty Center state bank closed yesterday. The three smaller banks cleared through the Wells county bank. The Farmers Deposit Bank Montpelier had deposits of approximately $500,000. The state banks at Poneto and Craigville and Farmers State bank at Ossian, other the open. The Zanesville State Bank the Harkle State Bank, line,


Article from Evening Star, February 14, 1929

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$50,000 RUN CAUSES BANK TO CLOSE DOORS Bluffton, Ind., Officers Hope to Effect Reorganization Within Sixty Days. By the Associated Press. BLUFFTON, Ind., February 14.-The Union Savings & Trust Co., the only remaining bank in Bluffton, closed its doors this morning after a $50,000 run yesterday. The Farmers' Deposit Bank of Montpelier, on the Wells-Blackford County line, with deposits of $500,000, also closed this morning, due, it was said, to an $18,000 run yesterday. Four banks in Wells County closed yesterday. Fred J. Tangeman, president of the Union Savings & Trust Co., and Thomas Barr, State bank examiner, said the bank was solvent. Officers said they expected to take advantage of the 60 days permitted by law to effect a reorganization and then hoped to reopen. The bank had deposits of approximately $800,000. Yesterday the Wells County Bank, with deposits of $1,250,000, was closed. A few hours later the State Bank of Uniondale closed. Petitions were filed in Circuit Court here asking for receivers for both institutions, alleging they were "in a failing and insolvent condition." The Bank of Petroleum and the Liberty Center State Bank also closed yesterday. The three smaller banks cleared through the Wells County bank.


Article from The Washington Times, February 14, 1929

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Fifth Bank Is Closed In Indiana Debacle BLUFFTON, Ind., Feb. 14 (I.N.S.). In the face of the financial hysteria sweeping Wells county which yesterday forced four banks to suspend operations, the board of directors of the Union Savings and Trust Company, a $400,000 institution, today decided to close.


Article from The Times, February 14, 1929

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BARR CALLS SITUATION VERY BAD Bluffton Is Without a Bank When Fifth Bank Is Closed by State INTERNATIONAL NEWS SERVICE Ind., Feb. the face financial that terday pend operations, board of rectors of Union Savings Trust company, $400,000 today decided close the bank. This action run bank paid out, left the city of Bluffton bank and Wells county only three bank. ing those at Ossian, and The closing of the tirely voluntary the part the officials who explained being done to "give the expublic time draw its The development while state examiners headed by Thomas Barr, assistant state banking were on the seems have his proportion," Barr the Union Trust company was perfectThe bank put out and offered $50,000 tide but the directors didn't think they had better take The bank doesn't and solvent. that while the explained banking department didn't state Union Saving Trust close by company, its board of directors, had step Meanwhile the residents of Poneabout 300 to, miles Bluffton, sons 10 today Bank of only bank, Poneto, in the The said have withstood bank but after the business Cashier of the Mussellman called which held at mass the Poneto grade auditorium More than 125 school night. citizens attended. plea for support made every present the behind the bank. promised citizens were disWhile excited closing the last cussing the state bankBluffton bank today, examiners here force, ing charge of the closed Applications filed tutions. Judge W. Circuit for the Wells for receivers Bank of and County Bank Uniondale. the date for the February 21st hearing. was filed application also An officials of the court by the which prifor of liquidate the bank's trustee to affairs. Center Bank at LibThe Liberty erty fully sol- his Barr, received vent by close to avoid the frenzy of the depositors. the Barr, however, Wells county today situation in result of situation the the hope Barr over. that the


Article from Vidette-Messenger of Porter County, February 14, 1929

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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


Article from Santa Cruz Evening News, February 14, 1929

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CITY PLANNING MEET OF REALTORS AT FRESNO Feb. forty delegates attending, the fourth annual state, region and city planning conference of the California Real Estate association, began its sessions here today. RUN CLOSES INDIANA BANK Ind., Feb. (AP) Union Savings and Trust company, the only remaining bank in Bluffton. closed its doors today after $50,000 run yesterday.


Article from The South Bend Tribune, February 14, 1929

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LAST BLUFFTON BANK IS CLOSED Six Institutions in One Indiana County Shut Within 24 Hours. Associated BLUFFTON, Ind., Feb 14. The Union Savings & Trust company, the only remaining bank in Bluffton, closed its doors this morning after Wednesday. The Farmers Deposit bank of Montpelier, on the Wells-Blackford county line, also closed this morning. said to Wednesday. Four in Wells county closed Wednesday Fred president of the Union Savings Trust company, and Thomas state bank examiner, said the closing was due to the run on the bank and that was entirely solvent. Officers and directors said they expected to the 60 days permitted by effect and then hoped to reopen. The Union Savings Trust had deposits of approxiWednesday the Wells County bank, with deposits of closed. few hours later the bank Uniondale closed. Petitions were filed in circuit court here asking for ceivers for both institutions, alleging they were failing and insolvent condition. The Bank Petroleum and the Liberty Center State bank also closed Wednesday. The smaller banks cleared through the Wells County Guy Bracken is president of the Farmers Deposit of Montpelier. had deposits of approximately The state banks at Poneto and Craigville and the Farmers State bank Ossian, other banks in the county, still are open. SANITARIUM SUES ACTRESS. LOS Calif., Feb. Alma Rubens. film actress. convalescing in sanitarium following nervous breakdown. has been made defendant $105 suit by another sanitarium, alleging nonpayment for


Article from The Times-Mail, February 14, 1929

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WELLS COUNTY INSTITUTION WITHIN DAY VOLUNTARY Financial Hysteria Brings Unjustified Action Against Solvent tution BLUFFTON, Ind., face of the financial Wells county, that yesterday forced four banks to suspend operations, the of directors of the Union Savings Trust Company, stitution, today decided to close the bank. This action which followed the bank in which $50,000 paid out, left the city of Bluffton tempority mass meeting which was the auditorium the Poneto grade school last night. More than citizens attended. Mussellman made stiming plea for support of the and present promised to get behind While excited citizens were discussing the last Bluffton bank today, the state banking examinhere in force, were following tomary proceedure in taking of the closed institutions. Applications were filed ith circuit judge Hamilton here for receivers for the county state bank Bluffton and for the Uniondale state bank of Uniondale. Judge Hamilton set February 21st the date for the hearing. An application also was filed in the circuit court by officials of the bank of Petroleum, which private bank, for the appointment of trustee to liquidate the bank's affairs. The Liberty Center bank Liberty Center was declared fully solvent by Barr, having received his permission to close to avoid the frenzy of however, characterized the in Wells county today situation the result of local conditions the like of which don't know of anywhere Barr said. expressed the hope that the worst Officials of the two banks for which


Article from The Anderson Herald, February 14, 1929

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State Official Asks Court To Appoint Two Receivers. BLUFFTON, Feb. 13. Following the closing of four county banks today Luther mons, state bank peared circuit court here this afternoon two petitions asking receivers appointed for the County state bank, Bluff the Bank Uniontwo of the institutions that clos The bank Petroleum and the Liberty Center State bank also sus pended operations. The petitions out that examinations by the banking showed the county state bank and the state bank Uniondale failing and insolvent Judge Hamilton February the date for hearings the petitions. Closing is The Wells county state bank did open for business today, and shortly after noon the three other banks, which cleared through the Bluffton institution, also closed their doors. The Wells county bank was talized $100,000 and showed posits $1,250,000. president: Morrow, first Frank ond and patrick, cashier. The bank closed Thomas Barr, examiner The the Uniondale bank $25,000 and deposits $200,000. H. president and W. Brickley cash- The Union Savings and Trust Company the only bank BluffThe Studebaker failed In deposits of $1,500,000. Receivers made no payments deposits.


Article from The Indianapolis Times, February 16, 1929

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CLOSED BANKS PLAN TO OPEN Wells County Crisis May Be Eased Next Week. By Times Special BLUFFTON, Ind., Feb. 16.-Wells county's banking crisis may be eased early next week when the Union Savings and Trust Company is expected to open its doors. Five financial institutions in the county closed- during the week. A mass meeting at which all parts of the county was represented was held here Friday night, several speakers expressing confidence that the situation could be relieved. There were indications that the panicky feeling which caused runs is subsiding. The Wells County State bank here was the first to close. Three other banks, which used the local institution for clearing purposes, ceased business the following day. Then the Union Trust and Savings closed as a precautionary measure, after a run had started. The three others closed were at Liberty Center, Petroleum and Uniondale. At the meeting there were indications that the Liberty Center and Uniondale banks also would re-open next week. Liquidation was reported in progress at Petroleum. The audit of the Wells County State bank has not been completed and there is no information available at this time on its condition.


Article from The Star Press, February 16, 1929

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BLUFFTON Prospects Brighter for Two Others. Bluffton. Ind., Feb. 15 The Union Savings Trust company, which closed doors here temporarily Thursday morning. with the consent of the state banking department, for the purpose of giving the depositors opportunity recover from panicky state of mind. that threatened to continue an unnecessary and unwarranted run on the bank, today announced plans reopen banking institution next Monday This reopening was provisional proper restored fidence expressed citizens Bluffton Mass Meeting Held. For the purpose having the banking explained fully and opportunity pubexpress attitude the financial crisis Wells County suspension of business since meeting was here The the public favorable the pany but stand back of other banks ready proceed with the regular depositors that there will no runs from such banks and withdrawals limited to the needs the general of business. The auditorium jammed, the publicity given newspapers personal extended today from city having brought citizens from every section of the county. Other Banks May Open. With the perfectly condition the Company plained there confidence the which seemed that this bank will able to reopen for The Liberty Center State bank another that the banking partment permitted close few days to give the situation time calmed down and which expected resume business soon, possibly the first of the week Uniondale bank is another which may able restoration public confidence Petroleum bank reported going forward with plans for liquidaThe audit of the Wells County bank, this city, first close, had not been completed today and no statement or plans for the regarding


Article from The Indianapolis Times, March 21, 1929

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BLUFFTON BANK OPENS Resumes Business After Being Closed Since Feb. 14. By United Press BLUFFTON, Ind., March 21.-The Union Savings and Trust Company Bank, after being closed since Feb. 14 to avert an unwarranted run and to conserve resources, was reopened today. Since the close of the bank a complete check of its condition was made to reassure depositors. The reopening is expected to relieve the banking situation in this section, which had became somewhat acute, due to the closing of several institutions.


Article from The Daily Reporter, March 23, 1929

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BLUFFTON BANK CLOSES AFTER "STEADY DRAIN" BLUFFTON, Ind., March 23 (INS) The Union Savings & Trust Company of Bluffton, a $400,000 institution, which reopened its doors only last Thursday, was forced to suspend business again at noon today owing to a "steady drain" on its resources. The bank closed its doors first on February 14th following a run on it when a frenzied panic swept Wells county causing seven banks to fail. Announcement of the bank's closing was made by F. J. Tangeman, secretary of the company. Tangeman blamed the lack of public confidence for the second suspension. The Union Savings & Trust Company was pronounced to be solvent and in good shape by State bank examiners after it closed its doors on February 14th following a run in which $50,000 were paid out. Since the bank's reopening on Thursday morning, there has been a steady withdrawal of deposits amounting almost to a run it was said. The bank officials decided at noon today to suspend operations as a "precautionary measure." Just what action they planned was not known and probably not decided upon as yet. The run on this bank, however, did not extend to the First Commercial Bank which is affiliated with the First National Bank of Fort Wayne, and which was opened several weeks ago.


Article from Chronicle Tribune, March 23, 1929

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BLUFFTON BANK AGAIN FORCED TO CLOSE DOORS BLUFTON, Ind., Mar. The Union Trust Co. of Bluffton, $400,000 which reopened its doors only last Thursday, was forced to suspend again at noon today owing to "steady on its resources. The bank closed its doors first Feb. 14, following the bank's closing was made by Tangeman, secretary of the He blamed the lack of public confidence for the second suspension.


Article from Muncie Evening Press, March 23, 1929

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BLUFFTON BANK AGAIN CLOSED Lack of Public Confidence Is Cited by Official. BLUFFTON, Ind., March The Union Savings and Trust Company which was closed February 14 and re-opened Thursday, again was closed by directors today, following run. The bank, having capital of $450,000, was closed February 14, after run which had dwindled its resources. The day previous the Wells County Bank failed to open its doors, and the run on the Savings Company occurred. New Run Closes Bank. At its reopening, Thursday, directors believed that the confidence its depositors had been restored and that it could resume its busiApparently the depositors believed the institution was not good shape and another run curred today and after meeting Continued Three


Article from The Huntington Herald, March 23, 1929

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IS LUFFTON, March (UP)-The Union Savings and Trust which was February 14 and re-opened Thursday, again was closed by directors following The bank, having resources of $450,000, was closed 14 after run which had dwindled its resources. The day previous the County bank falled to its doors, and the on the occurred. At Thursday, direcbelieved the confidence of restored and that its Apparently the depositors believed the institution was not good shape run today and of depositors close believed all depositors full and that time state banking made and made public statement saying condition in today's not known pending check.


Article from Muncie Evening Press, March 30, 1929

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BANK OPENS AT BLUFFTON Old National Bank Ready for Business Today. BLUFFTON, Ind., March The Old National Bank of Bluffton. operating under recently granted state opened business here in old Studabaker Bank building recently purchased from Bank for The National Bank is capitalized at with surplus. The institution is backed by the National Fort Directors. Officers of the bank Henry C. Paul, president: Frak H. Cutshall, Hitzeman, cashier, and W. Stogassistant Paul. Cutshall. W. M. Wilson H. Bowerfind. all of The the that an would be affiliated with the local bank for the of securities in the This organization will be at $25,000. Holds Stock. further that all capital stock in the bank subscribed by Fort men and that the bank here gets fully into operation. this would have the opportunity to buy stock in the bank. Local men also will be employed in the bank, announced. First Bank Open. Following garding National Bank, officers of the First Commercial Bank, started here under state charter Wells County Bank building. announced that they had received national charter and from now on their bank would be known First National Bank Bluffton. This bank also capitalized $100,000. surplus $50,000. This institution backed by interfrom National Bank Wayne. Niezer president; Harry dent; Potthoff. cashier, R. Fitzpatrick assistant cashier. With above banks now operation financial affairs the county moving smoothly Morris Stultz, receiver Studabaker Wells County Bank, is ing his work of liquidating those stutions. Walmer charge the Union Savings Trust Company liquidation.


Article from The Star Press, November 3, 1929

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EXPANSION OF PLANT PLANNED Bluffton Industry Acquires Hotel Building. Bluffton. Ind., Nov. 2.-The manufacturing firm of Patton & McCray, comprised of W. A. Patton and Morris McCray, today purchased the old Commercial Hotel building. immediately adjoining their brick factory building on the west. and will enlarge their factory. The new property doubles their space and gives the firm a plot 140x160 feet adjacent to the Clover Leaf railroad tracks. The first step in the expansion program will be the construction of a new mill room. Third Bank Distribution. The Union Savings and Trust Company. which has been in charge of a liquidating agent since last March. gave depositors a pleasant surprise when they mailed to them checks for a payment of 10 per cent of money due. The total distribution today amounted to about $26,000. This made the third distribution by the Union Savings and Trust Company, for a total of 40 per cent. A 20 per cent distribution was made May and a 10 per cent payment was made August 1. The bank was closed in a solvent condition when runs were started after other local banks had closed. The state banking department, which after an audit pronounced the trust company in solvent condition, authorized D. A. Walmer. president of the institution, to act as liquidating agent. Woman Champ Husker Named. Mrs. Dwight Reynolds. of Harrison Townships, was declared the woman champion corn husker of Wells County when she headed a list of nine women huskers who competed in a thirty-minute husking bee after the third annual husking bee for Wells County men had been held Mrs. Reynolds' record was 8.5 bushels in thirty minutes. Mrs. Mary Vickery, of Rockcreek, and Mrs. Ralph Walborn, of Harrison. were tied for second place, each husking 7.6 bushels. The other six, finishing in order. were: Mrs. Luster Yager. 7.3: Mrs. Samuel Dickason. 7.2: Mrs. Willard Jarrett.