5488. State Bank (Brook, IN)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
December 19, 1930
Location
Brook, Indiana (40.866, -87.364)

Metadata

Model
gpt-5-mini
Short Digest
1c5429c8

Response Measures

Full suspension

Other: Receivership and later receiver changes; indictment of cashier for theft.

Description

State Bank of Brook closed Dec. 19, 1930 after several days of heavy withdrawals (a run). A receiver was appointed Jan. 10, 1931, indicating permanent closure. Cause interpreted as contagion from other local bank failures/closures (multiple Indiana banks closed same day).

Events (3)
1. December 19, 1930 Run
Cause
Local Banks
Cause Details
Several Indiana banks were closing at the same time and the bank had experienced several days of heavy withdrawals, suggesting contagion/panic from other local bank failures.
Measures
Closed its doors to protect depositors (did not open for business Dec. 19).
Newspaper Excerpt
The State Bank of Brook ... had experienced several days of heavy withdrawals.
Source
newspapers
2. December 19, 1930 Suspension
Cause
Local Banks
Cause Details
Bank closed (did not open) amid a wave of Indiana bank closures; closure described as protecting depositors after heavy withdrawals earlier in the week.
Newspaper Excerpt
Three Indiana banks failed to open today ... the State Bank of Brook, capitalized at $55,000.
Source
newspapers
3. January 10, 1931 Receivership
Newspaper Excerpt
Luther Lyons ... has been appointed receiver of the State Bank of Brook ... The bank closed Dec. 19 and petitioned the court to name Lyons as receiver.
Source
newspapers

Newspaper Articles (11)
1. December 19, 1930 The Courier News Blytheville, AR
Article from The Courier News, December 19, 1930

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Banks in Various Parts Country Shut Doors ROCK, Dec. 19. The Clark County bank capitalized at $25,000, and having deposits aggregating its doors this morning for period five days, according to formation received by the state banking department. Suspension the Clark county bank marked the 15th Arkansas banking house which has closed the past three days. ELIZABETH CITY. Dec. Savings Bank and Trust company of Elizabeth City failed for business open today following meeting of the directors. INDIANAPOLIS, Dec. 19. Three Indiana banks in widely arated parts of the state closed day. They were the Trust and Savings company of Richmond. the Central State bank of Whiting, and the State Bank of Brook. MT. VERNON, Dec (UP) Jefferson State bank closed today to protect depositors. had deposits of $741.000 JEFFERSON CITY, Mo., Dec. Bank Canton, Lewis county, was closed today by its board of SYRACUSE Dec. 19. (UP) State Bank of Canastota was ordered closed today the state superintendent of

2. December 19, 1930 St. Louis Post-Dispatch St. Louis, MO
Article from St. Louis Post-Dispatch, December 19, 1930

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BLOODSTAINED CLOTHES FOUND IN WOODS NEAR KILBOURNE. ILL. Note Addressed to "Shelton" Recommended "Bearer. Jimmy Durkin." as a Cook. the HA VANA, Press. Dec. 19.-Bloodstained clothes. a letter and a traveling bag of exc ellent quality, found yesterday in the woodlands four miles southeast of Kilbourne, III., caused Mason County authorities to search the surrounding Illinois River bottom land in the belief that a murder had been committed. The letter was addressed to "Shelton," dated at St. Louis on Aug. 9, signed "Dud" and recommended "the bearer. Jimmy Durkin as a cook. The bloodstained clothing bore the laundry mark "J. D." The apparel apparently was working clothes. Other clothing found nearby included a cook's apron and cap, Automobile wheel tracks. where a car evidently had been turned around, also were found. The discovery was made by Sherman Lane, a trapper. St. Louisan Head of Seedmen. By the Associated Press. COLUMBIA. Mo., Dec. 19.-Ed F. Mangelsdorf of St. Louis has been elected president of the Missouri Seedmen's Association. Other officers chosen: Fred G. Ricketts, Springfield, vice president, and J. M. White, Kansas City, secretarytreasurer. Sunday Movie Vote Held Void. By the Associated Evanston voted for Sunday movies by a majority of 56 votes, but cannot have them, at least for some time. Judge Philip L. Sullivan has ruled. The Court upheld the Evanston Sunday business ordinance and reasoned that the referendum was not effective without action by the City Council. bank was solvent and gave frozen assets and a gradual withrawal of funds as the reason for closing. The bank, capitalized at $100,000, has liabilities of $1,094,225, officials said. Bank in North Carolina With $450,000 Deposits Closes. By the Associated LENOIR, N. C., Dec. 18.-The First National Bank of Lenoir did not open for business today. W. J. Lenoir is its president. The bank is capitalized at $50,000 and its officers said it had deposits of $450,000. Three Banks in Indiana, One With $610,000 Deposits, Close, By the Press. INDIANAPOLIS. Ind., Dec. 19.Three Indiana banks failed to open today, the State Banking Department was notified. They are: The American Trust and Savings Bank of Richmond. capitalized at 100,000; the Central State Bank of Whiting, capitalized at $100,000, and the State Bank of Brook, capitàlized at $55,000. At Richmond it was said the bank was closed to protect depositors and stockholders. The bank had experienced several days of heavy withdrawals. It had deposits of $500,000. The Whiting bank had deposits of $610,000, and deposits in the State Bank of Brook totaled $585,000.

3. December 19, 1930 Des Moines Tribune Des Moines, IA
Article from Des Moines Tribune, December 19, 1930

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CURB STOCKS THREE INDIANA BANKS CLOSED One Says Action Taken to Protect Depositors INDIANAPOLIS IND. Three Indiana failed to their doors Friday the banking department was notified. Trust and Savings bank of capitalthe Central of Whiting at and the State Bank of Brook capitalized at The department issued the closing of the institutions Richmond it said the bank was closed to protect the interests the depositors and The bank had experienced several of heavy withdrawals. It had deposits of The Whiting bank had deposits of while deposits in the bank of Brook totaled $585.- ONE IN NORTH CAROLINA. National of Lenoir did not open for business Friday The bank capitalized at and its officers said it had a deposit approximately $450,000 when it closed. SELMA BANK CLOSED. Selma bank closed Thursday by vote of the directors. The state bank department's last report deposits at about and capital O. E. Nutt president. HEAVY WITHDRAW ALS.

4. December 19, 1930 The Evening Sun Baltimore, MD
Article from The Evening Sun, December 19, 1930

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Business "Planted," Store Buyer STATES Two In N. Carolina, Three In Indiana, One In Y., Illinois, Virginia, Arkansas Elizabeth City, Dec. The Savings Bank and Trust Company failed to open its doors for business today. Future action will be governed the Board Bank Examinwas said. Williams president of the institution. Officials said the bank was solvent and gave frozen assets and gradual withdrawal of funds as the reason for closing. The bank, which is capitalized $100,000. has liabilities of $1,094,225 Loans amount $925,630 and borrowed money amounts to $193,750, State officials said. And One At Lenoir Lenoir. N. C., Dec. 19 First National Bank of Lenoir did not open for business today. The bank capitalized at $50,000 and its officers said it had deposit indebtedness of approximately 000 when it closed. One Closed In N. Y. State Dec. 19 Joseph Broderick, State Superintendent Banks, today announced that he has taken of the State Bank of Canastota result he said appears to be its unsound condition. "On the date of the last quarterly statement submitted by the bank to the banking department, September 1930. the figures reported as folcapital, $60,000: surplus and divided profits, $9,676: gross deposits, said Broderick. Virginia One Fails To Open Alta Vista. Dec. 19 Farmers and Merchants Bank of Alta Vista failed to open for business today. The bank capital stock of 000, surplus of $3,500 and deposits $105,661.52 in its last statement. Frank Hammer president of the stitution. An examiner has been sent here Bristow, Commissioner Insurance and Banking, to take over the bank's affairs. Three Close Indiana Indianapolis, Dec. Indiana banks failed open their doors today. the State Banking Department notified. They The American Trust and Savings $100,000: the Central State Bank of Whiting, capitalized and the State Bank of Brook, capitalized $55,000. The State Department issued statement regarding the closings. The Richmond bank had deposits the Whiting bank the State Bank of Brook, 000. Customers Who Bought Lavishly As Prospective Purchaser By Owner Another In Illinois Newark, Dec. Mount Vernon, III., Dec. 19 said William Schachat, prospec- Jefferson State Bank closed today tive buyer of delicatessen shop, protect depositors. It had deposits David Fishman said he took $741,000. week. Arkansas Bank Shuts Door "All right. Stick around and Little Ark., Dec. 19 next week." replied Fish your eyes The Clark County Bank Gurdon. deposits of closed watched customers spend doors today under the five-day bank grand total of $325. But suspension law. after he bought the store, he the first week's receipts only $100. Nevada Birds Top Market Court testified Reno, Nev., Dec. Chancery Fishman distributed money prices for the holiday market the that his friends to spend his were received by Nevada turkey among make the week' producers this year for the second consecutive season.

5. January 11, 1931 The Indianapolis Star Indianapolis, IN
Article from The Indianapolis Star, January 11, 1931

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BANK RECEIVER NAMED. BROOK, Ind., Jan. 10.-Luther Lyons, prominent business man of Newton has been appointed receiver the State Bank of Brook by Judge George Williams of Newton Circuit court The bank closed Dec. 19 and petitioned the court to name Lyons as receiver.

6. November 3, 1931 The Indianapolis Star Indianapolis, IN
Article from The Indianapolis Star, November 3, 1931

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YORK STOCK EXCHANGE TRANSACTIONS NEW Nov. Shares sold today Year ago Sales Jan. date Same period Net Clos. Apprx. Div. (Hundreds) Net Apprx. (Hundreds) Net complete Apprx. (Hundreds) Following is Security High NEW Security High Low New York W transactions on list stock change: Net (Hundreds) Apprx. Security 13.73 nine months to Sept. Field 000 against net income $457 096 equal Dept Sparks to 88 cents common share. Arcturus Radio Tube Reduces tube prices ranging from 20 to 60 United American Utilities-Defers 11.11 action on Class A dividend: paid 321 cents Sept. SEDALIA BANK FAILS. JEFFERSON CITY Mo. Nov and four banks failed to open in Missouri toThe Citizens National bank of dalia with deposits approximately one of the largest banks in central Missouri was closed by the directors after William H. Powell president shot and seriously 11.11 Motors wounded himself yesterday He 6.67 reported slightly improved today Other banks in Sedalia opened for business usual today with withdrawals but no indications of runs developing Heavy withdra assigned as the reason for the four state bank closings They the Owensville bank. resources $372,849 Bank of and Bank of Malta Bend, RUN CLOSES BANK. TOPEKA. Kas., Nov Kansas banking department nounced the closing of the and Merchants State bank of Concordia today by order its board of 6.00 directors because of heavy with5.88 The bank's Oct 10 statement listed $100,000 capital stock $10,000 surplus and $314.144 deposits. BANK RECEIVER RESIGNS 12.64 BROOK Ind. Nov Luther Lyons. who took over the affairs the State bank of Brook when failed last December has handed in his resignation as receiver Judge Williams has not indicated who would be appointed in his place. Last week dividend of 5 per cent was paid the depositors. 7.14 CLOSING AT ALEXANDRIA. Closing of the Alexandria bank, at Alexandria, was announced yesterPublix day the offices of the state bankdepartment The institution had resources of $596 and deposits $546,138.48 according to its June 30 report. S. Phillips is president and Kelly cashier Rap Pet 8.17 Oil New York Stock Exchange Mach New York Cotton Exchange Cement 7.68 6.25 401 CIRCLE TOWER 8.33 11 Wall Street 924 Baltimore Ave. Tea Kansas City Two years Film when earned. aUnit stock. shares.

7. November 6, 1931 The Brook Reporter Brook, IN
Article from The Brook Reporter, November 6, 1931

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Bank Receiver Resigns L. C. Lyons, who has acted as receiver for the State Bank of Brook for almost a year, has handed his resignation to Judge Wiliams. Mr. Lyons resigned because of ill health During the time he served he has conducted the affairs of the closed bank in a very satisfactory manner to both the depositors and the bank officials, and al are sorry to see him resign. Judge Williams has not a3 yet appointed his successor, but will probably do 50 within a few days. Mr. Lyons will serve until his successor is appointed.

8. November 13, 1931 Journal and Courier Lafayette, IN
Article from Journal and Courier, November 13, 1931

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Banker Indicted And Gives Bond Ind. Nov. John Lyons, prominent Brook man and cashier of the defunct State bank Brook when closed last liberty bond of after been indicted for and The indictment, voted by Newgrand makes charges connection with Lyons' duties as of the bank. stole liberty bonds longing Dixon, which had left in the bank for safe keeping

9. November 17, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, November 17, 1931

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Bank Receiver Chosen By Times Special BROOK, Ind., Nov. 17.-Bennett Lowe has been named receiver of the State bank of Brook, succeeding Luther Lyons, who resigned.

10. November 17, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, November 17, 1931

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Bank Receiver Chosen By BROOK, Ind., Nov. 17.-Bennett has been receiver of the State bank of Brook, succeeding Luther Lyons, who resigned.

11. December 10, 1931 Journal and Courier Lafayette, IN
Article from Journal and Courier, December 10, 1931

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MARITANS IN NEWTON COUNTY rn Husked for Two Farmers-Kentland News -Bank Pays Dividend. Dec. (Special) Last Monday more than forty ghbors friends of Frank hbaugh gathered at his home equipment and noon had finished husking cy and crop. Mr. Ashbaugh was three weeks ago when kicked him, breaking bone one of his The huskers in and cribbed almost bushels of corn. Dinner was pared and served to the entire up the wives of the huskIn the afternoon, the men over to the William VogOtterbein. farm, nearby, and assisted Voglund in husking out 20 of corn. FINAL ORDER. The death Judge G. A. Wilof the Newton circuit court, his home in Rensselaer last with was great shock to his Alberta ends in Newton His official act in the local court to an order to the revers of the Kent State bank Kentland and the State bank Brook, instructing them to colan assessment of per from the stockholdof the two institutions. The is prefaced by statement which court relates that two institutions were found be in an insolvent condition. DIVIDEND PAID. 10 per cent. dividend was Monday depositors of the State bank by Receiver iomas J. Murphy. In addition making this payment to all positors the receiver, acting unthe court' orders, paid in full depositors having claims of $3 OFFICERS CHOSEN. The annual election officers Kentland chapter, Pythian SisTuesday evening resulted as lows: Past chief, Mrs. Geneva most excellent chief, excellent senior, Thelma Mock; excellent junDorothy manager, ystal Franklin; mistress of recand correspondence, Mrs. V. White: mistress of fiMrs. Clara Perry; proMargaret Franklin; outer ard, Mrs. Dixon. BRIDE HONORED. Mrs. Emmett LaRue, of ensselaer, was the guest of honat an evening of bridge at Mrs. James Hassett home. LaRue was formerly Miss Gott, Kentland, and married to Mr. LaRue short She received beauconsole mirror as a gift from Kentland friends. BIRTH ANNOUNCED. daughter was born Sunday brning to Mr. and Mrs. Ernest heetz, of Plymouth. Mrs. Scheetz formerly Miss Rose Rheude, ughter of Mr. and Mrs. Anthony of this place. Miss Cecile Timmons is spendseveral days the home of sister, Mrs. Charles Andernear Mrs. Emma Vondersmith has quite at her home for past week. She is alightly proved. Mr. and Mrs. Wilbur Howe, of icago, called on Kentland relaMr. and Mrs. William Dowling their grandson, Billy Mike owling, Sunday, to South Bend, left him with his parents, Mr and Mrs. Michael Dowling. Billy Mike had visited at the home his grandparents for several weeks. Ed Cunningham, of Indianapospent the week with Kentland friends.