Citizens National Bank (Hope, IN)

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STEWART CHARGED WITH EMBEZZLEMENT $45,000 FROM CITIZENS NATIONAL

Bound Over to Federal Grand Jury and is Released on $25,000 Bond Signed By Joseph A. SpaughAdmits Manipulations, Report.

Ind., Feb. A. StewIndianapolis, cashier of the Citizens National Bank at Hope, Ind., arrested here this afternoon charges of embezon zling $45,000 and was bound over to the federal grand jury. Bond was set at $25,000 and was provided by Joseph Spaugh, Stewart's Stewart was arrested in downtown office building here by Charles LaSalle, United States marshal. The Citibank failed to this morning after examination open by Bert K. Patterson and John Utt, federal bank examiners. said he had 200 of land in BartholoStewart acres mew county and other valuable property that he intended to dispose of and make up the deficit in his accounts. He admitted manipulating funds of the bank and losses in unwise investments.

The National bank. of Hope, failed to open its doors this Citizens described by John of Fort Wayne, national morning. Indiana district, resulted in direcbank examiner for the tors of the institution passing resolution against reopening, specmeeting. Conditions discovered examination of the bank's books have Albert Ward. United States district attorney, at Inbeen referred to Utt said. Asked if criminal prosecution will result from dianapolis, Information which he to Mr. Ward, Utt answered, "Possibly." gave bank will not asked steps would be taken. He said on the condition of the bank been sent to W. Pole, and that receiver will appointed within days take charge of the bank and wind its affairs. Until that time he be in charge, Mr. Utt declared. national state banks, liable for the stock which they hold, Mr. Utt said. of the bank's books the first part this week. Mr. Utt and two assistants had the and when this the the them. the Mr. Utt they then the against bank today. Yesterday business conducted there to locate officials and the bank and obtain from them Hope reported that Martin Holder, president; Miller, Hercashier, and othbusiIn long distance with while he was learned that officers the bank had conferred with him there this morning. Mr. expected to return charge of the pending the He said the capacity of porary such is named by controller of currency Can Hear Plenty. regulations prohibitMr. going into detail found the bank. When he described the found bank he asked for details. hear plenty down Hope, said, explaining the same time that bank examinnot permitted to go into their Word bank failed open within short time and this was the chief topics of sation throughout the day. Merchants here this morning were warned against accepting the institution, the explanation that while the institution might cept would mean on number persons who residents of this among those affected by the closof the bank, as they were positors, was today. The number of increased several ago when residents this city protest against the being made by local withdrew their placed them banks Hope and other places, Regarded Strong Bank. Residents Hope, tain any very the bank's difficulties. were feel that the closing the would prove, serious matter. On streets Hope general belief that "frozen had brought about the Citizens bank for years has the strongrural banks in this section state. For nearly quarter has paid stockholders cent. interest result its stock great demand. The bank capitalized at $30,000 and addition $20,000 and undivided surplus $11,000. Joseph president (Continued on page 8)

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CITIZENS NATIONAL BANK AT HOPE, IND., FAILS TO OPEN DOORS

Feb. The Citizen's National bank of Hope, near here. failed to open this morning and John Federal bank examiner said he had referred the Albert United States district The bank $30,000. Martin H. Holder president.

DEATH CHAIR READY Feb. The electric chair, in Cook county penal circles, tested day found ready to exact night, reprisal for murOnly court action could the three sentenced to be electrocuted midnight. They Shanks, negro slayer JenConstance. Charles Walz and Anthony Grecco. killed PoliceArthur Esau.

MINER HURT Feb. Birtle years miner this city. fatally injured today struck vania railroad locomotive here. board the train ride to he has been working in the American No. mine which reopened recently Both legs severed from Robert's body and he died within minutes.

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$100,000 DEFALCATION

HOPE, Ind., Feb. Citizens National Bank Hope, $400,000 national bank, closed here reported from reliable was that the bank's closing due $100,000 defalcation. The following notice was posted the bank's resolution of the board of directors, the National Hope closed at m. today."

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$100,000 DEFALCATION

HOPE, Ind., Feb. Citizens Hope, Ind., $400,000 national bank, closed It reported from reliable that due defalcation. The following notice posted the bank's resolution of the board of directors, the Citizens National Bank Hope closed today."

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$100,000 DEFALCATION

HOPE, Ind., Citizens National Bank Hope, Ind., $400,000 national bank, closed here today. It reported from reliable that closing due to $100,000 defalcation. The following notice was posted the bank's resolution of the board of the Hope closed today."

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DOORS OF ALL BLUFFTON, IND., BANKS CLOSED

$50,000 RUN CAUSES ONLY REMAINING HOUSE TO SUSPEND; EXAMINER SAYS IT IS SOLVENT

COLUMBUS, Ind., Feb (AP) The Citizens National bank of Hope. Ind., near here, failed to open this morning and John Utt. federal bank examsaid he had referred the matter to Albert Ward. United United States district attorney The bank was capitalized at $30,000. Martin H. Holder is

BLUFFTON, Ind., Feb. The Savings and Trust comthe only remaining bank closed its doors this morn ing after $50,000 run yesterday. The Farmers Deposit bank Montepelier, on the Wells-Blackfort county line, also closed due. was said $18,000 county closed yesterday. Fred Tangeman, president of the Union Savings and Trust company and Thomas state bank aminer. the closing was due to the on the that was entirely solvent Officers and directors said they expected to take advantage the 60 days permitted by law to effect reorganization and then hoped to reopen The Union Savings and Trust had deposits of approximately $800,000. Yesterday the Wells County bank. with deposits of closed. hours the State Bank were filed in the court here asking for for both tútions, alleging they were failing and insolvent of Petroleum and the The Bank Liberty Center State bank banks yesterday cleared through the Wells county Guy Bracken president of the Farmers Deposit bank of had of approximately $500,000 State banks at Poneto and The Farmers Craigville Ossian, other banks in the bank at still are open. The county, ville state bank and Markle bank, on the county also are open.

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HOPE BANK CLOSED

Citizens National Bank Hope. Ind. near here, failed to open this and Jorn federal bank aminer, said he had referred the mat district attorney. The bank capitalized 000. Martin Holder president.

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Indianapolis, Feb. -Following the closing yesterday morning of the Citizens National bank at Hope, Bartholomew county, Herman A. Stewart. cashier, was arrested here on a Federal warrant charging embezzlement of $45.000

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PROPERTY HELD ON WRIT Assets of Closed Hope Banks Former Cashier Seized. By United Press COLUMBUS, Ind., March 13.Property of Herman Stewart, former cashier of the Citizens National Bank of Hope, valued at $1,500, has been attached by Sheriff Alonzo Fitch upon a writ issued by judge Julian Sharpnack of Bartholomew circuit court here. The writ was issued at the request of Charles Ellis, receiver for the recently closed Hope bank.

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WILDMAN PAYS ASSAULT FINE

Spaugh Files Second Charge Against Bank Receiver's Aid.

Columbus, Ind., March 28. August K. Wildman, 22, ant to the receiver of the Citizens National bank at Hope. this morn ing plead guilty in the court of Henry Barmes, justice of the peace at Hope, to charge of assault and battery in connection with some trouble which he had Tuesday with Joseph A. Spaugh, 70, forme president of the Citizens bank Wildman was fined $1 and costs, making $10.60 in all, Barmes and this he paid. The charge, the second one to be preferred against Wildman by Mr Spaugh, was filed this morning and soon afterwards George Hitchcock. constable, arrested Wildman and took him into the justice the peace court. Yesterday Wildman was arrested here by Sheriff Alon ZO E. Fitch charge of making slanderous statement, this, too having been preferred by Spaugh. He is free on bond of $100, pending hearing in this case. Statement by Wildman's Attorney. The charge of assault and bat tery grew out of the fact that Wildman took hold of Mr. Spaugh's arm and turned him part way around when he made the allegeo slanderous remark to the prosecut ing witness, Lloyd C. Bryer, of this city, who represents Wildman in the slander said. case, Wildman did not want to lose any more time from his work than necessary and therefore went into court and paic his fine, rather than take the time required contest the case. Mr Bryer said. Mr. Spaugh alleges that Wildman interrupted him and Jesse Smith, resident of Hope, while they were talking on street in Hope and said: "You are crook. You are #: big a crook as Herman Stewart thief and so are you." Mr Bryer in discussing this alleged slanderous statement said that if his client did say this, and that he was not admitting it was said. believed Wildman was speaking the trouble which occurred at the Herman A. Stewart home. north Hope, Saturday night when Sherif Fitch went there to seize an auto mobile. Wildman contends that Mr Spaugh sat in car during the trouble there and that he neither made any effort to aid the sherify or to stop his son, William Stewart The Stewarts Monday paid fines the court of Stanley Cooper, jus tice of the for assault peace, and battery in connection with an at tack which they made on Wildman Wildman, according to his attor ney, was not referring to any the affairs of the Citizens bank in his statement to Spaugh, if he made the statement, Mr. Bryer de clared. Mr. Spaugh contends that he just drove up to the Stewart home as the trouble there ended. Spaugh Issues Statement. Mr. Spaugh today issued state ment in which he said the trouble between him and Wildman grew out of the fact that he had signed bonds for Herman Stewart his He said that "at time have condoned or made excuses for Herman Stewart's great wrongs. And, while my sympath: for his family may be greater that my judgment, feel that have acted within my right and the law Mr. Wildman, in the presence of another man, came to home my with veiled threat Saturday night as to what the consequences be if signed any more of Her man Stewart's bonds. invite the whole world to search the gloomy catalog of this bank for anything did that ever had the appearance of wrong. never overdrew my bank account in my life. cannot conceive how could take something for nothing."

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PICK BANKER'S RECEIVER Carl C

Harrison Named to Salvage Affairs of Herman Stewart. Carl C. Harrison, Greensburg (Ind.) banker, today was named trustee by creditors of Herman A. Stewart, bankrupt, former cashier of the Citizens National Bank, Hope, Ind., at a creditors' meeting before Carl Wilde, federal bankruptcy referee. Stewart, who faces federal charges in connection with closing of the bank, listed $166,511 total liabilities and $75,576 assets.

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PICK BANKER'S RECEIVER

Carl C. Harrison Named to Salvage Affairs of Herman Stewart,

Carl C. Harrison, Greensburg (Ind.) banker, has been named trustee by creditors of Herman A. Stewart, bankrupt, former cashier of the Citizens National Bank, Hope, Ind., at a creditors' meeting before Carl Wilde, federal bankruptcy referee.

Stewart, who faces federal charges in connection with closing of the bank, listed $166,511 total liabilities and $75,576 assets.

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HOPE BANK RECEIVER SUES ON TWO NOTES

Charles H. Ellis, receiver of the Citizens National bank, of Hope, has filed suit in circuit court here against Marjorie and Raymond Wolford. complaint on two notes, demand $750. One of the notes IS for $200 and was drawn Feb. 5. 1929. The other one is for $400 and was drawn Nov. 20, 1928, according to the complaint. Interest on each of these was at the rate of 7 per eent.

The American Red Cross was incorporated by an act of congress in 1905.

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HOPE BANK RECEIVER SUES ON TWO NOTES

Charles H. Ellis, receiver of the Citizens National bank, of Hope, has filed suit in circuit court here against Marjorie and Raymond Wolford, complaint on two notes, demand $750. One of the notes is for $200 and was drawn Feb., 5, 1929. The other one is for $400 and was drawn Nov. 20, 1923. according to the complaint. Interest on each of these was at the rate of per cent.

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REOPENING OF HOPE BANK UP COMPTROLLER

Official Will Request InvestiFirst, Those Intergation ested Believe.

CENT CUT ASKED

TO PAID IN FULL CLAIMS K'D. plan looking toward the opening of the now defunct zens National bank of Hope been submitted Pole comptroller currency Washington, his reaction proposal being awaited by persons interested seeing the reestablishment of the bank, was learned today. No indication has been given as when may expectfrom Pole, suggested today that probably will ask for an and report by Charles Ellis, of Munthe fairs of the bank receiver. Mr. Ellis has not been asked for report, is understood. Under the plan submitted. all creditors of the be asked claims cent, understanding that an fort made after the reopenthe institution to pay creditof the profits of the Then ing this deduction, $60,000 stock will and the bank organized. of the money tained the stock would used to the bank's indebtedness, the remainder would constitute the capital and surplus. The sale the stock has practically been understood, pledges been made for the entire amount, sponsoring the reopening the institution

Some Creditors Paid.

If the approval of the comptrolof currency obtained, rangements then have made general creditors of the bank, positors, that they agree take cent their claims. Sponsors the plan declare that creditors will the bank and paid claims than the affairs of the institution are wound up under the ceivership. Some the creditors the have been paid by Mr. Ellis authorization from the of rency. Under this the National bank Indianapolis, has paid $24,this institution having held security to indemnify against Claims totaling have been approved and receiver's cerbeen issued these claims, totaling to be made, to records the bank, and these few claims listed on the books are expected be filed. Claims filed include those of depositors other of the bank. When records the bank the claims filed by creditors receiver's certificates issued However, no record found the bank, the all the rency for his approval or Creditors until June file claims. After that date

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HOPE BANK UP TO COMPTROLLER

Creditors, However, To Be Paid Full Later, Expectation$259,767 Claims K'd. plan looking toward the opening of the now defunct Cit: zens National bank of Hope ha been submitted to W. Pole, comp troller of currency at Washington and his reaction to the proposa now is being awaited by person interested in seeing the re-establish of the bank, was learned ment today. No indication has been given to when an answer may be expect ed from Mr. Pole, although it wa: suggested today that he probably will ask for an investigation and report by Charles H. Ellis, of Mun cie, who is now in charge of the af fairs of the bank as receiver. Mr Ellis has not yet been asked for report, it is understood. Under the plan submitted, creditors of the bank will be asked to cut their claims 40 per cent with the understanding that an effort will be made after the reopening of the institution to pay credit ors full out of the profits of the business. Then with creditors agree ing to this deduction, stock will be sold and the bank Part of the money organized. tained from the sale of stock would be used to settle the bank's indebt edness, and the remainder would constitute the capital and surplus The sale of the stock has practi cally been assured, it is understood as pledges have been made for the entire amount, persons sponsoring the of the institution reopening have announced. Some Creditors Paid. If the approval of the comptrol ler of currency is obtained. ar rangements then will have to be maile with the various general creditors of the bank, including de positors, that they will agree cent of take the 60 per payment their claims. Sponsors of the plar declare that creditors will realize more if the bank is reopened and 60 per cent is paid on all claims if the affairs of the institu than tion are wound up under the Some of the secured ceivership. creditors of the bank already have been paid by Mr. Ellis on authorization from the comptroller of cur rency. Under this arrangement the National bank of Indianapolis, has been paid $24, institution having held this collateral security to indemnify against loss on its claim. Claims totaling $259,767 have been approved and receiver's certificates have been issued on these Additional claims, totaling $75,000, are yet to be made, according records at the bank, and besides these few claims not listed on the books are expected to be filed. Claims filed include those of depositors and other creditors of the bank. When records in the bank and the claims filed by creditors are in accord, receiver's certificates are issued immediately. However, when no record is found in the bank, the claim, together with ali available information concerning it, is sent to the comptroller of currency for his approval or rejection. Creditors have until June 22 in which to file claims. After that date all claims will be outlawed, it understood. To Close at Noon Saturday. Mr. Ellis maintains his office in the room formerly occupied by the bank, the fixtures and equipment of the institution not having been disposed of. In the past the office has been open on Saturday afternoons, but in the future it will closed at noon on Saturdays, August Wildman, assistant to the received, announced today. Under this arrangement Mr. Ellis will be enabled to go to his home in Muncie for and Mr. Wildman will be able to go to his home in Lafayette. The office is open from 8:30 o'clock until 12 o'clock in the morning and from o'clock until week except Sateach day urday.

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Columbus, Ind., July 31-A 40 per cent. dividend will be paid all creditors of the defunct Citizens National bank at Hope that have been approved, it was announced today by August K. Wildman, assistant to Charles E. Ellis, receiver for the bank. The receiver will distribute $130,000. The dividend checks have been made and sent to Washing ton for the approval of the controller of currency. The distribution will made three weeks, it is announced.

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RECEIVER OF DEFUNCT BANK SUES ON NOTES Three Actions Brought for $5,700 Due Institution at Hope. Three suits to recover a total of $5,798 on notes held by the defunct Citizens National bank of Hope. have been filed in federal court by Charles H. Ellis, receiver. Defendants and judment asked are: Rush W. Isley and L. M. Isley, R. R. 4, Shelbyville, $898; John G. Schaefer, Hope, $3,500, and Willie R. Carman, Cecil B. Carman and Georgia A. Isley, $1,400. Herman A. Stewart, former cashier, of the bank, has pleaded guilty to nine counts of a federal indictment charging embezzlement, which resulted in closing of the bank.

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12 HOPE BANK DIRECTORS FACE NEGLIGENCE CHARGE

Ind., Jan. 29 Twelve directors the defunct Citizens National Bank of Hope, Ind., charged negligence in suits file in Federal court here on today. Charles H. Ellis, bank receiver, sued for which said the bank lost because the directors negligent.

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NEGLIGENCE CHARGED TO HOPE BANK HEADS

Receiver of Institution Says It Was Not Conducted Rightly.

By Associated Press Indianapolis, Jan. H. Ellis, receiver of the defunct Citizen's National Bank of Hope. filed federal court equity suit here yesterday, charging direct of the institut with negli gence in handling its affairs. The bank was closed following exposure of approximately $100, 000 shotage in the accounts of Herman, A. Stewart, cashier. He now is serving a penisentence on charges of embezzlemeut. The suit places responsibility for on the shoulders of the twelve di rectors of the institution The bank was closed last Feb. 14. In a voluminous detailed report of the bank's financial status. Ellis set out that the total deficit of the institution was $155,397. 24. He charged the directors with failure to exercise ordinary diligence in ollowing Stewart to supervise affairs of the bahk. Three for a total of $6,380 now are pending federal court against debtors of the bank.

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NAME FORMER BANK

AIDS IN COURT SUIT

Receiver of Hope, (Ind.) Institution Seeks Judgment of $17,450.

Judgment of $17,450 is asked in a suit filed in federal court against William H. Mobley, Hope, Ind., and Herman A. Stewart, former cashier of the Citizens National bank of Hope, recently convicted of embezzlement in federal court, by Charles Ellis, bank receiver.

The suit is based on three notes, two of them given to Stewart by Mobley and indorsed to the bank, and a $5,896 check given by Mobley and alleged to have been held up by Stewart and not charged against Mobley's account.

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HOPE BANK RECEIVER SUES ON MORTGAGE

Charles H. Ellis, receiver for the Citizens National bank, of Hope, has filed a complaint in the Bartholomew circuit court against Roy Kent and Ethel Kent, on a promissory note, demanding $1,740. The complaint also seeks to foreclose mortgage on 40 acres of land in Hawcreek township. The return date is set for April 12. The complaint is in five separate paragraphs. The first sets out that Roy Kent and Ethel Kent issued their promissory note to the bank for $1,000 at per cent interest on March 26, 1927, at which time they executed their mortgage on the 40 acres The amount now due on this note, including attorney fees, is $1,375. On Dec. 1. 1928, the defendants executed their note to the Hope Poultry Breeders Association for $25, at per cent. The amount due and demanded on this note is $35. Paragraph three sets out that the defendants secured $15.63 from the Hope bank on July 9, 1928, at per cent, on which note $25 is now demanded. Paragraph four sets out that the defendants secured $55 from the bank on July 9, 1928, at 7 per cent, for which $80 is demanded. Paragraph five claims that the defendants secured $234.78 from the bank on July 9, 1928, per cent, and $350 is now demanded.

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Liquor Case Dismissed

By Times Special HOPE, Ind., Aug. 1.-Charges of intoxication, possession of intoxi- cating liquor and operating a nuisance which were filed June 28 by Marshal George Hitchcock of Hope against A. K. Wildman, receiver of the Citizens National bank, have been dismissed for want of evidence.

The average per capita consumption of candy in the United States during 1929 was thirteen pounds.