5522. First National Bank (Columbia City, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
7132
Charter Number
7132
Start Date
March 7, 1927
Location
Columbia City, Indiana (41.157, -85.488)

Metadata

Model
gpt-5-mini
Short Digest
4a76c410

Response Measures

None

Receivership Details

Depositor recovery rate
71.1%
Date receivership started
1927-03-31
Date receivership terminated
1936-11-28
Share of assets assessed as good
42.8%
Share of assets assessed as doubtful
41.6%
Share of assets assessed as worthless
15.7%

Description

The First National Bank of Columbia City was closed by order of its directors on March 7, 1927 and placed in receivership. Reports cite frozen assets (largely farm real estate) and later criminal pleas for irregularities in handling customers' funds (use of an investors' fund and officers' misuse of deposits). The bank did not resume business; dividends were paid by the receiver. No run is described in the articles.

Events (5)

1. February 11, 1904 Chartered
Source
historical_nic
2. March 7, 1927 Receivership
Newspaper Excerpt
The bank is now being operated by a receiver. ... Receiver John Owen. receivers of the First National bank at Columbia City, Ind., ... will declare a substantial dividend ... it was learned at the treasury today.
Source
newspapers
3. March 7, 1927 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Frozen assets (largely farm real estate) and later-disclosed irregularities/ misuse of customer funds (investors' fund) prompted closure.
Newspaper Excerpt
The First National bank ColumCity, Ind., closed by order of the directors. Frozen assets In the form much farm real estate is given cause.
Source
newspapers
4. March 31, 1927 Receivership
Source
historical_nic
5. December 6, 1927 Other
Newspaper Excerpt
Dividends of 30 percent (paid earlier) and 20 per cent to be paid depositors in the defunct First National bank before Christmas; checks have been sent to the controller of currency at Washington, by Receiver John Owen.
Source
newspapers

Newspaper Articles (9)

Article from The Berkshire Eagle, March 8, 1927

Click image to open full size in new tab

Article Text

verdict suicide returned the inquest into death Miss Jane Smethurst, whose body found canal Preston, Eng. February 16. Miss Smethhurst, who lived in Australia and the United went Preston 1925. She said be worried beshe was to to the United not an Amercitizen. Women of the North and South are to compete pedestrians, Mrs. Charles Hutchins Burnsville, has ahnounced her acceptance of challenge Miss Eleanora Boston who walked from Proviplans to make test hike miles in hours from her home in The deaths two Negro women, patients the Medfield state hospital, on January 12 were caused by by Dr. Kundert, junior physiof female the hospital, to the report. report that attributed to Dr. Kundert. Fay Brown, former assistant director of the bureau standards, has declined the post chief examiner for for the civil service commission. for which nominated and confirmed during the recent session gress, will become instead director Museum of Peaceful Arts at New York. Aloysius Joseph, tax driver, shot killed his bride, 24, in York and then turned the himself, serious wound. He before attempting the suicide. The quarrel between the over the that his wife visited another woman to whom Joseph objected. terrorist dead and another in San are to the ups" in the series destroy the church and Paul city. The bombing of the edifice months was by police. The March collection of income and profits taxes will approach $600,000,000 more than March, 1926, treasury ficials at Washington predicted. They said the would be due to the prosperity of corporations. The new army reorganization placing citizen, man or woman, at the call of the country in war, by the ber of deputies, 500 votes to Only the On the even sailing for home from Paris, Charles Schwab said that would be his last trip across the At. the trip times, but was getting too old for any more strenuous traveling. rosary by Protestant churches for use in prayer has been advocated by Dr. James president Allegheny college Meadville, Pa. Hundres of speeders pass through York's traffle courts day field of tilled but Clare she late to church. Her fine was $25. Relatives Captain John Wesley Smith Belleville, informed Smith not drowned years ago, his vessel foundered but escaped and located Harrah, Okla. Smith recently Harrah without ulging reason for dsappearance. Department interior Washing that through failure senate act deficiency appropria tion bill, payment for May and June, must be to July when funds for next fiscal year are avail- Report from Mexico, says are killed during bandit attack sugar William Jenkins,: agent. Dead Include captain of federal forces two bandits and Police and federal agents in Chicago alleged international counterfeiting ring, headquarters of which is Austria. Secretary Mellon announces issu March year in Liberty loan converted cent bonds. Contractors in Pittsburgh conclusion wage structural iron and workers and building operations will proceed without other crafts still British charge d'affaires in Nicara of addition American marines and assurances Washington Great Britain satisfied British terests adequately protected. Miss Rose Stobel, aged 16, was shot by Mrs. Christian Red Bank. shortly Mrs. Stobel The First National bank ColumCity, Ind., closed by order of the directors. Frozen assets In the form much farm real estate is given cause. Authorities Asbestos, Que., they are brothers, Roy and Ray wanted connection with mail train rebbery in Oregon. Bill to permit local option in observ in sey defeated by one vote in Federal grand in San Francisco votes against owners, officials and crew of Panama steamer Federalship, alleged rum runner captured at recently. The Revere stroyed by $3000. Lauder signed tract London become he play John Buchan's


Article from Springfield Weekly Republican, March 10, 1927

Click image to open full size in new tab

Article Text

FARM HOLDINGS CLOSE BANK Columbia City, Ind., March First National of this city was closed today by order of the Frozen assets the form the the her 1926. and its deposits


Article from The Huntington Herald, July 20, 1927

Click image to open full size in new tab

Article Text

BANK RECEIVER TO DECLARE DIVIDEND WASHINGTON, July A substantial dividend will be declared by the receivers of the First National bank at Columbia City, Ind., within the next two or three weeks, it was learned at the treasury today.


Article from Journal and Courier, December 6, 1927

Click image to open full size in new tab

Article Text

Depositors in Defunct Bank to Get Dividend Service) COLUMBIA CITY, Ind., Déc. been dividend of 20 per cent will paid depositors in the defunc First National bank before Christmas. The bank, which suspended busMarch paid dividend checks have been sent at Washby Receiver John Owens.


Article from The Times-Mail, December 6, 1927

Click image to open full size in new tab

Article Text

STATE NEWS COLUMBIA CITY, Ind.-Announcement has been made here that dividend of 20 per cent will be paid depositors in the defunct First National Bank, before Christmas. The bank, which suspended business last March 7, paid a 30 per cent dividend last summer. The checks have been sent to to the controller of currency at Washington, by Receiver John Owen. WABASH, Ind.-This county, home of C. E. Troyer, who last week was crowned corn king of America, did not produce a single member of the 100 Bushel Corn Club. A check of the acreage of the fifteen Wabash county farmers who entered the contest revealed that not a single farmer produced 100 bushels an acre. Troyer, who produced the highest average yield, got slightly better than 93 bushels average yeild. INDIANAPOLIS, Ind.-Hugh McK. Landon, vice president of the Fletcher American bank here, and Meredith Nicholson, author, have started a drive in Indiana to raise funds for construction in Paris of an American dormitory at the Cite Universitaire. According to Nicholson, the dormitory will be built t2 furnish cheap but simitary and well lighted quarters for American students who go to the University of Paris. A number Indiana students have gone to the University of Paris for the study particularly of art. NEW ALBANY, Ind., Dec. 6.Following the precedent set by the City Council of Indianapolis in electing L. Slack a Democrat, as mayor, the Republican council of the town of Georgetown, west of this city, has named Christopher Welch, an outstanding Democrat, as chief executive for the next four years. The council was elected in November. This is the first time in twenty years that Georgetown has had a Democratic mayor. During nearly a quarter of a century, Harry Snod grass, well known Republican leader of the town, served as municipal head. NEW ALBANY, Ind.-The 110th anniversary of the founding of the First Presbyterian church in this city will be quietly observed by the congregation Wednesday. There will be no special services for the occasion. The congregation was organized in 1816 and became a Presbyterian body a year later. Among the organizers of the church were John Scribner, Nathaniel Scribner and Abner Scribner, who founded the city of New Albany, and Thomas B. Posey, the last territorial governor of Indiana. In 1919 the church organized the first Sunday school in New Albany, and descendants of the Scribner family still take part in the Sunday school affairs. NEW ALBANY, Ind.-A large delegation from over the Third congressional district was expected to be in attendance Thursday night at a banquet at the Elk's club here, when friends of M. Bert Thurman, inter nal revenue collector of Indiana, will launch his campaign for candidate for governor on the Republican ticket. The Thurman campaign will be launched in the city where he first entered polities twenty years ago as councilman from the Second Ward which at that time was overwhelmingly Democratic. Thurman has served as county chairman of the local Republican organization. Later he was appointed postmaster and then was made chairman of the Third District Republican Central Committee. When Harding be came president, Thurman was named internal revenue collector for Indiana BLOOMINGTON, Ind., Dec. 6."What to give her for Christmas" is a problem that has been solved by experimentation in the psychology laboratory of the school at Indiana university. In an experiment to test the power of smell of class members, the laboratory instructor sprayed perfume in the room. One bottle was a sophisticated red color and labeled "Geisha." The students smelled cherry blossoms and thought of Japan. The second perfume was a water-green color and had the fragrance of English lilacs, according to the label. One co-ed recognized the odor in 15 seconds. Several other odors were sprayed and recognized by the students. Then the instructor informed the class that the "perfume" was nothing more than water, colored with ink. The smell was the power of suggestion. So, says the psychology department just send her a nice bottle of colored water, but put it up in a pretty bottle and make it her favorite color. Warning to bachelors: Next year will be Leap Year. BEDFORD GIRL HONORED BLOOMINGTON, Ind., Dec. 6.Miss Jane Cuthill, of Bedford has been announced as a member of the girl's chorus for the second edition of Chicago. "Campus Affairs," which given at Indiana University on the evening of January 10 and 11, under the direction of Ramon Kessler, of Evansville, and Russell McDermontt, of Chicago. "Campus Afairs," which is in the nature of an all-university vaudeville show, was given for the first time at the state university last year and proved such a tremendous hit that the show was voted to be presented again this year. The Garrick Club, dramatic organization at the state university, sponsors the production. INDIANAPOLIS, Ind., Dec. 6.Governor Ed Jackson, in a formal statement, today struck back at crit icism concerning efforts of his attorneys to prevent his trial for alleged attempted bribery. "The early date for the trial on the indictment against me is, I believe, as satisfatcory to the people of Indiana as it is satisfactory to me," Jackson's statement said. "Heretofore, the preceddings before the court have been directed wholly to a determination of the sufficiency those who have seen fit to make these charges must submit the basis for their accusations to the scrutiny of a court in which the defense will have equal opportunity to lay facts before a jury.' Governor Jackson said he was confident that he and his co-defendants would be vindicated "not only in court "but in the public mind." JEFFERSONVILLE, Ind., Dec. G. this "Beautyrest." Its inner coil construc-Elliott Everhart, a 22-year-old cripple, was drowned as the result of tion gives perfect rest, tripping while walking along the top The tiny coils, buried in felt, with an of a government dam in the Ohio attractive new covering last a lifetime. River near here. Coast guards who witnessed the tragedy reached the scene too late to save the lad. They $3950 delivered recovered his body about an hour la. Christmas ter. or Gift Certificate LAPORTE, Ind., Dec. 6.-LaPorte was confronted with its first arsenic Schloot-Dougherty MATTRESS murder today after an autopsy reFurniture Co. vealed that poison caused the death of Lillian Smith, 39, colored, from EAST SIDE SQUARE eating sauer kraut in which traces of arsenic also were found. Lillian Barker, 27. colored, is being held pending the inquest of Coroner Charles Mayfield. BUTTE, Mont., Dec. 6.-After an jet. She was believed despondent ov- all night battle thru huge snowdrifts cr death of her husband. Mrs. Opal searching party today rescued alive INDIANAPOLIS, Ind., Dec. 6.- Khitman was in city hospital today in a the 25 members of a pipe line crew Mrs. Nellie McCarty, 53, succeeded in a serious condition from self adminwho had been marooned in the blizzard swept territory near here.


Article from Vidette-Messenger of Porter County, December 7, 1927

Click image to open full size in new tab

Article Text

DEFUNCT BANK PAYS DIVIDEND COLUMBIA CITY, Ind., Dec. 7.I. N. S.-Announcement has been made here that dividend of 20 per cent. will be paid depositors in the defunct First National bank, before Christmas. The bank, which suspended business last March 7. paid a 30 per cent. dividend last summer. The checks have been sent to the controller of currency at Washington, by Receiver John Owen.


Article from Garrett Clipper, December 12, 1927

Click image to open full size in new tab

Article Text

CONTINUOUS CITY PLANNED IN CALUMET DISTRICT Hammond. Ind., Dec. 10.-A continuous city, twelve miles wide and seventy-five miles long, stretching from the Indiana-Illinois line at Hammond to Michigan City. is being planned by civic leaders of the Calumet District. and probably will be a reality within the next quarter century at the present rate of expansion. The movement already is beginning at Michigan City. Two and a half miles west of the prison city a acres to the eastern boundary line From Gary the expansion of housing facilities is stretching eastward and will receive great momentum as the deep sewer line and supplementary sewage systems are laid. This mer. The same expansion is witnessed further between Gary and Hammond and between Indiana Harbor and Gary, where city limit lines are being obliterated by the construction of new homes. which gradually are making Gary. Hammond, Indiana Harbor and East Chicago a homogeneous whole. According to the opinion of Mayor Tinkham of Hammond, and many others prominent in civic affairs, the movement to consolidate the various cities will begin to take rapid form next year. when, they say, construction of homes in the Dunes area will be undertaken on a vast scale. An "empty stocking" fund is being raised at Wabash to be used in filling stockings of needy youngsters at Christmas time. Another distribution of funds in the First National bank at Columbia City, which was closed on March 7 of this year, will be made by the receiver. The first dividend, paid some weeks ago, was for 30 per cent and the second will be for 20 per cent. The town board of Bristol, Ind., faces a law suit again as a result of awarding a paving contract to the Northern Construction company of Elkhart on a bid higher than that submitted by other concerns. The work will cost $40,000 and involves the pavement of the town's principal street.


Article from Garrett Clipper, December 12, 1927

Click image to open full size in new tab

Article Text

Have Turned Over All Their Property to Make up Loss in Bank Failure Fort Wayne, Dec. Walpole Kaler, Archie C. Smith and Frank E. Kramer former officers of the First National bank of Columbia City, were sentenced to two years in the federal penitentiary at Leavenworth by Judge Thomas Slick in federal court at Fort Wayne, Wednesday when they entered pleas of guilty to conspiracy to violate the national banking laws. The sentences were suspended and they were placed on probation to Howard E. Townsend, an attorney in the case. The men were also charged individually with violating the national banking laws and they pleaded guilty to these charges and were given a sentence of a day in the Allen county jail, yesterday being called the day Irregularities in handling the funds of the bank were the basis of the indictments to which the men pleaded guilty. Kaler was the bank's president, Smith the cashier and Kenner assistant cashier The bank is now being operated by a receiver. The pleas of guilty to the indictments came unexpectedly at the close of yesterday's court session. Use of money. placed by the bank's customers in what was known as the investors' fund. caused the investigation. It was pointed out that this fund had been in existence several years. It consisted. Attorney Townsend explained. of money placed in the hands of the bank officers by persons who desired their money to earn more than the 4 per cent interest the bank was paying. There was no agreement as to the of investment. it was said. When the bank ran low in funds. the bankers, defendants in the cases, placed their own notes in the account and used the money of the investor. When the financial crash came government bank examiners discovered the use of the money. In a plea for leniency it was pointed out that the men have turned over all their property, even some which they would not be compelled by law to do.. to the bank receiver. This involved their own homes which they held jointly with their wives.


Article from The Indianapolis Times, October 26, 1932

Click image to open full size in new tab

Article Text

# Rewards FT. WAYNE, Ind., Oct. 26.-Just as a brave and faithful soldier is given a piece of metal to wear with the words "For Valor" engraved upon it, so does Senator James E. Watson reward the faithful and successful performance of unsavory jobs. But the reward which Jim gives is much more tangible than medals—that is, when he doesn't award the double-cross. In the case of James I. Barnes of Logansport, the reward has been juicy postoffice contracts. But here in the Fourth district this recognition takes the form of bank receiverships, and by actual count John Owen of Noblesville (sometimes known as "Floorwax Johnny," but that's another column) has received the lion's share of receiverships. And that isn't helping Jim's campaign a bit among the depositors of the defunct institutions—or do you know Johnny? Here in Ft. Wayne Jim propitiated an enemy—Arthur F. Hall, president of the Lincoln Life Company—by having him appointed to the board of the Indianapolis Home Loan bank, of which he is chairman. But it is going to be a great deal more difficult to square himself with the thousands of depositors in the institutions over which Owen is the guardian angel. To give you a little more background about John, you, no doubt, recall that he is the man, who after finding out from his "close friend," M. Bert Thurman, just what delegations were pledged to his campaign for the Republican Governor nomination, a few days later brought out Raymond Springer for the honor. And Springer was nominated through the help of this information, they tell me. Maybe that will indicate why the depositors of the defunct First National bank of Columbia City feel that they are just "political pawns,"