5538. Farmers National Bank (Trafalgar, IN)

View Charter #7491 on SPMC

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
7491
Charter Number
7491
Start Date
September 11, 1931
Location
Trafalgar, Indiana (39.416, -86.151)

Metadata

Model
gpt-5-mini
Short Digest
db22588f8d58251e

Response Measures

Full suspension, Books examined

Other: Federal bank examiner ordered the doors closed and a receiver was appointed (receivership).

Receivership Details

Depositor recovery rate
100.0%
Date receivership started
1931-09-23
Date receivership terminated
1935-03-29
Share of assets assessed as good
45.6%
Share of assets assessed as doubtful
38.2%
Share of assets assessed as worthless
16.2%

Description

Articles describe a run triggered by President Dr. C. E. (Carl) Willan's voluntary assignment of property, the federal examiner ordering the bank closed (suspension) around Sept. 11, 1931, a receiver being named, and the bank remaining in receivership (closure). Receiver reports from Oct. 1931 and a 1934 notice of full dividend confirm receivership liquidation rather than reopening. OCR corrected Dr. Carl Willan/C. E. Willan as same person; initial receiver named M. M. Pitcher (article 1) and later receivers W.S. Ritman and Morton Lamb appear in subsequent reports.

Events (5)
1. November 25, 1904 Chartered
Source
historical_nic
2. September 11, 1931 Receivership
Newspaper Excerpt
M. M. Pitcher was named receiver. ... Trafalgar bank ... closed by its board of directors. W. S. Ritman, of Louisville, receiver. Morton Lamb, receiver of the Farmers National Bank of Trafalgar, has prepared statement showing the condition of the Bank and the transactions since date of suspension, September ... which follows: ... has been in receivership since Sept. 11, 1931, has been authorized to pay a dividend ... which with previous dividends, will make a 100 per cent return. (1934-02-17).
Source
newspapers
3. September 11, 1931 Run
Cause
Bank Specific Adverse Info
Cause Details
Voluntary assignment of property by bank president Dr. C. E./Carl Willan prompted depositors to withdraw funds.
Measures
Federal bank examiner arrived and ordered the doors closed until further notice.
Newspaper Excerpt
As Dr. Willan is president of the Farmers National Bank at Trafalgar, depositors began to withdraw their funds Monday morning.
Source
newspapers
4. September 11, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
The board/examiner closed the bank after runs following the president's voluntary assignment of assets; a receiver was appointed (M. M. Pitcher initially).
Newspaper Excerpt
He ordered the doors closed until further notice. examination will be made ... M. M. Pitcher was named receiver.
Source
newspapers
5. September 23, 1931 Receivership
Source
historical_nic

Newspaper Articles (5)
1. September 17, 1931 Franklin Democrat Franklin, IN
Article from Franklin Democrat, September 17, 1931

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Article Text

Due to Assignment of Dr. Carl Willan, President, Which Started Believed Depositors Will Be Paid Full. Through their attorney, Ex-Judge Fremont Miller, deeds of assignment for 522 acres of land in Hensley and Union township owned by Dr. Carl Willan and Jacobs of Trafalgar, naming M. M. Pitcher as trustee, have been filed in the office of the county recorder Within fifteen days time full papers of assignment will have been filed in the office of the county clerk. The assignment will include all property, both real and personal belonging to Willan and approximately $7,500 worth of personal property owned by the partnership. It is mated that all the property turned over to the benefit of creditors will amount to between $50,000 and $60.000. This announcement came as prise to most persons and has been the cause of many expressions of that conditions should have gret forced such step. The reasons signed are the big slump in farm and stock which hit farmers products harder than any other class of people. Investments had been made at high prices in cattle at different times to feed for the market. The continual slump in prices year after year caused repeated and heavy losses in this line, alleged. As Dr. Willan is president of the Farmers National Bank at Trafalgar, depositors began to withdraw their funds Monday morning. In the mean time anticipating something of this nature the federal bank examiner had been notified and arrived about noon Monday. He realized the situation and as no bank can withstand run unchecked. he ordered the doors closed until further notice. examination will be made and believed all depositors will be paid in full. There is little doubt expressed as to the fact that the bank will be able to pay out dollar for dollar, but and naturally this will be the of much inconvenience to those having their cash deposits tied up. M. M. Pitcher was named ceiver. Mr. Pitcher himself had $1200 on deposit. He might have drawn this out. but would not do so and this money is not available now the same as that of others who have deposits in the bank. The Trafalgar bank has been great benefit to the community and business there. It is hoped all will clear up soon and business conditions locally be helped thereby.

2. October 20, 1931 The Edinburg Daily Courier Edinburg, IN
Article from The Edinburg Daily Courier, October 20, 1931

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Article Text

RECEIVER REPORTS ON CONDITION OF BANK W. S. Ritman Shows Assets of Trafalgar Institution Exceed Liabilities by $35,000. Trafalgar, Ind., October 17.-That the assets of the Farmers National Bank of Trafalgar exceed the liabilities by almost $35,000 is shown in the preliminary report of the condition of the bank which was issued Saturday by W. S. Ritman, of Louisville, receiver. Mr. Ritman has been in Trafalgar for several days and has been engaged in making a complete survey of the affairs of the bank which was closed a few weeks ago following a run on the bank after Dr. C. E. Willan, president of the bank, had made a voluntary assignment of his property. The report of Mr. Ritman shows that the bank has notes due it to the extent of $118,146.42. It has cash on hand of $1,049.77 and assets other than cash and notes totaling $17,760.68. The total of assets is $136,956.87. Unsecured liabilities are given as $77,113.23. This is the total of individual deposits of the bank when it was closed by its board of directors. Depositors secured by pledge of the acsets of the bank, aggregating $5,000 as collateral, is given as $7,022.16. Rediscounts with other banks which are secured by assets of the bank aggregating $7,127.27 as collateral, total $6,436.03 and bills payable which are secured by a pledge of assets of the bank aggregating $28,414.72 as collaterial, total $11,500. The total of liabilities of the bank is given as $102,071.43 which makes an excess of assets over liabilities of $34,885.44. Mr. Ritman gave no estimate on the probable shrinkage of assets in the liquidation of the bank but bank depositors were greatly cheered when they learned that there was such a large margin of assets over the liabilities.

3. July 20, 1933 Franklin Democrat Franklin, IN
Article from Franklin Democrat, July 20, 1933

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Article Text

STATEMENT THE TRAFALGAR BANK THE RECCEIVER GIVES OUT FOR PUBLICATION FIGURES TO SHOW FINANCIAL CONDITION FARMER'S NATIONAL BANK Morton Lamb. receiver of the Farmers National Bank of Trafalgar. has prepared statement showing the condition of the Bank and the transactions since date of suspension, September which follows: ASSETS Assets at date of suspension (book value, not $136,956.87 Addit'n'l Assets acquired since suspension (book value not actual) 12,876.75 Stock Assessment 100% TOTAL ASSETS TO BE ACCOUNTED FOR (Continued on page four)

4. February 17, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, February 17, 1934

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Article Text

Bank Pays in Full By Times Special TRAFALGAR, Feb. 17.-Morton Lamb, receiver for the Farmers National bank of Trafalgar, which has been in receivership since Sept. 11, 1931, has been authorized to pay a dividend of twelve and one-half per cent, which with previous dividends, will make a 100 per cent return.

5. February 17, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, February 17, 1934

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Article Text

Bank Pays in Full By Times Special TRAFALGAR, Feb. 17.-Morton Lamb, receiver for the Farmers National bank of Trafalgar, which has been in receivership since Sept. 11, 1931, has been authorized to pay a dividend of twelve and one-half per cent, which with previous dividends, will make a 100 per cent return.