5676. Central State Bank (Gary, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 29, 1921
Location
Gary, Indiana (41.593, -87.346)

Metadata

Model
gpt-5-mini
Short Digest
01da0d67

Response Measures

None

Description

Bank was ordered closed by the Indiana Bank Commissioner on Nov 29, 1921; petition for a receiver was filed and hearings on receivership occurred in early December. No bank run is described in the articles. The commissioner cites low cash reserve and lack of liquid assets; closure was by government action and a receiver was sought.

Events (2)
1. November 29, 1921 Suspension
Cause
Government Action
Cause Details
Ordered closed by the State Bank Commissioner citing insolvency, improper use of assets, and cash reserve below legal requirement; lack of liquid assets noted.
Newspaper Excerpt
Depositors ... were thrown into a state of excitment this morning when the doors of the bank were ordered closed by Charles W. Camp, bank commissioner of the state of Indiana.
Source
newspapers
2. December 2, 1921 Receivership
Newspaper Excerpt
We are making application for a receiver for the Central State Bank because their cash reserve is below the legal requirements ... On December 2 the hearing on application for a receiver was had. (Chicago Whip, Dec. 17, 1921).
Source
newspapers

Newspaper Articles (3)
1. November 29, 1921 The Lake County Times Hammond, IN
Article from The Lake County Times, November 29, 1921

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Article Text

CENTRAL STATE BANK IN TROUBLE Depositors of the Central State Bank, 1828 South Broadway, in Gary, which has been used exclusively by the colored population of the steel city were thrown into a state of excitment this morning when the doors of the bank were ordered closed by Charles W. Camp. bank commissioner of the state of Indiana. At the same time a petition was filed in the Gary superior court. alleging improper use of assets, that the intsitution is insolvent and asks that a receiver be named to take charge of the bank's assets and wind up the business and affairs of the Institution for all other proper relief. According to officers of the institution. President W. D. Neighbors, Secretary-Treasurer C. B. Lanior and Asst. Cashier Walter M Bullard in a. statement this morning, the deposits of the bank amount to some $67,000 and it is believed that the assets will enable the institution to pay the patrons, dollar for dollar. The Central State Bank grew out of the old Hunter State Bank which went to the wall several years ago. The Central State Bank was organized under the state banking laws about two years ago and until today have been doing business at 1828 Broaaway. In his petition for a receiver, Mr. Camp states, that said defendant is a corporation organized under the laws of the state of Indiana, as a bank of discount and deposit; that for more han two years has been doing general banking business in the state of Indiana. The plaintiff further stated that on the 28th day of November and prior thereto, said defendant bank became, and was. and now is insolven+ and that assets thereof are being wasted and have been improperly used and converted and said bank is and for some time prior to said 28th day of November, 1921. has been operating with cash reserve below the reserve legally required by the laws of the state of Indiana and said bank is insolvent and not sufficient money, means, credits and property with and out of which to pay its existing indebtedness and legal litigation. Wherefore this plaintiff asks the court that said bank be declared insolvent; that a receiver be appointed and take charge of said bank and its assets and wind up the business and affairs of said bank and for all other proper relief.

2. December 1, 1921 The Lake County Times Hammond, IN
Article from The Lake County Times, December 1, 1921

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Article Text

Will Hear Bank Case Tomorrow Morning Hearings on the petition for receivership of the Central State Bank (for colored people) at 1828 Broadway, will come up tomorow morning at 9.01 b'clock. Robert Press state bank ex. aminer, who was placed in charge of the bank will be present in the place of State Bank Commissioner Camp who died the petition. Another chapter was added to the case yesterday when the Humbolt State Bank filed a suit against the defunct bank in the Gary Superior court for a sum of $1,050.

3. December 17, 1921 The Chicago Whip Chicago, IL
Article from The Chicago Whip, December 17, 1921

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Article Text

SAY CLOSED GARY BANK IS SOLVENT GARY, Ind., Dec. 17.-According to statements credited to the Bank Commissioner of the state of Indiana, the Central State Bank of Gary, which was closed November 29, is still solvent. The cause for suspension assigned by the commissioner was low cash reserve and lack of liquid assets for re-discount, due to the general depression in the industrial center. The Bank Commissioner, in his statement to the press, stated: "We are making application for a receiver for the Central State Bank because their cash reserve is below the legal requirements of the laws of Indiana and because there is a lack of liquid assets for re-discount to obtain immediate cash. There is no evidence of dishonesty or criminal liability on the part of any of the officers or directors of the bank. It is my opinion that the depositors will be paid dollar for dollar. They have resources of more than $104,000 and deposit liabilities of less than $68,000." On December 2 the hearing on application for a receiver was had. It being stated at that time by the Assistant Attorney General, representing the State Bank Commissioner, that under the law wherever a suspension of business is had, the only means by which business may be resumed by such bank is to have a receiver appointed to conserve the interest of all parties conrerned while reorganization and adjustment is under way. He further stated that it was the hope of the Banking Department that the affairs of the Central State Bank may be speedily adjusted and that they will be in position to resume business. as it was not the intention of the Department to put any bank out of business and that it would be the purpose of the Department to co-operate with the stockholders in the reorganization and rehabilitation of the bank.