5746. Northern Trust & Savings Bank (Hammond, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
August 25, 1930
Location
Hammond, Indiana (41.583, -87.500)

Metadata

Model
gpt-5-mini
Short Digest
1dc260a9

Response Measures

None

Description

The bank is described repeatedly as 'defunct' and 'failed Aug. 25, 1930' after officers embezzled funds; a receiver was appointed in Sept. 1930 and dividends were being paid in Oct. 1931. No run is described in the articles. Classified as a suspension that resulted in permanent closure/receivership (suspension_closure).

Events (4)
1. August 25, 1930 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank 'crashed after officers had embezzled, $105,000 dissipated' — embezzlement by officers led to failure/suspension.
Newspaper Excerpt
This the first dividend authorized for the bank failed Aug. 25, 1930.
Source
newspapers
2. September 1, 1930* Receivership
Newspaper Excerpt
Mr. Emery appointed receiver Sept. 1930. The receiver boosted this amount ... when closed by the state department of banking last year.
Source
newspapers
3. September 28, 1931 Other
Newspaper Excerpt
B. Lipinski, 63 year old president of the defunct Northern Trust Savings bank of Hammond, plead guilty to charges of illegal loans and overdrafts ... and was promptly sentenced ...
Source
newspapers
4. October 27, 1931 Other
Newspaper Excerpt
Ten Per Cent Cash For 1716 Depositors of Defunct Bank cash dividend of 10 per cent, paid Saturday to 1,716 defunct Northern Trust and Savings bank of Hammond.
Source
newspapers

Newspaper Articles (6)
1. September 28, 1931 The Times Hammond, IN
Article from The Times, September 28, 1931

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Article Text

Treasurer BANKER Withholds His Chicago Signature PLEADS SALARY JUDGE SMITH YOUNG SWANK PLEADS GROCERS WILL RULE ON GUILTY NOT GUILTY; TRIAL OCT. 12 GRAB IS MAY CUT PETITION WED. [SPECIAL TO THE TIMES) order OF CHARGE CROWN Sept. tigations FOILED BY Declaring that he wanted which might throw different light OFF POOR Hammond Man Fails to Introduce Any Evidence BULLETIN D. southern Menard 227.03 in elected districts, succeeding [SPECIAL TO THE TIMES] CROWN POINT. Ind., Sept. 28 B. Lipinski, 63 year old president of the defunct Northern Trust Savings bánk Hammond, plead guilty to charges of illegal loans and overdrafts in Lake criminal court this morning and was promptly sentenced to serve two fourteen years in the state penitentiary at Michigan City by Judge Martin J. Smith. him which to his Lipinski will to Michigan City just as soon commit PAUL B. LIPINSKI ment papers be drawn and proved. law Salik, the plead guilty to and serve to the THE STRAIN Lipinski, the effects of age and attendant over his predicament, appeared court this his ney, William McAleer, of Ham- courtroom crowded capacity. Most those in the defunct David receiver the institution, was seated beside Prosecutor Robert Estill and John Underwood, chief deputy prosecutor. The plea guilty (Continued on Page Fifteen)

2. September 28, 1931 The Times Hammond, IN
Article from The Times, September 28, 1931

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Article Text

BANKER Treasurer Withholds His Chicago Signature PLEADS JUDGE SMITH YOUNG SWANK PLEADS SALARY GROCERS GUILTY WILL RULE ON NOT GUILTY; TRIAL OCT. 12 MAY CUT GRAB IS PETITION WED. order that might OF CHARGE [SPECIAL TO TIMES] CROWN POINT, Sept. tigations of some Did wanted which throw different light Declaring that OFF POOR Hammond Man Fails to Introduce Any Evidence [SPECIAL TO THE TIMES) CROWN POINT, Ind., Sept. 28. B. Lipinski, 63 year old president of the defunct Northern Trust Savings bank of Hammond, plead guilty to charges of illegal loans and overdrafts in Lake criminal court this morning and was promptly sentenced to serve two to fourteen years in the state penitentiary at Michigan City by Judge Martin Smith. The which to his defunct Lipinski gan City just commit- ment papers be drawn and approved. He will serve beside Boleslaw Salik, cashier the bank, plead guilty embezzlement and in the Lipinski, the effects of attendant appeared in court this his attorWilliam McAleer, of Hammond. The courtroom was crowded to capacity. Most those David receiver for the Institution, seated beside Prosecutor Robert Estill and John Underwood, chief deputy prosecutor. represented McAleer guilty behalf of his client. The moment Judge Smith sentenced the former banker. Northern Trust and Savings arrested fessed He cated Lipinski the latter was taken into custody charges of illegal loans overdrafts. Lipinski later (Continued

3. September 28, 1931 The Times Hammond, IN
Article from The Times, September 28, 1931

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Article Text

BANKER Treasurer Withholds His E. Signature Chicago PLEADS JUDGE SMITH YOUNG SWANK PLEADS SALARY GROCERS GUILTY WILL RULE ON NOT GUILTY; TRIAL OCT. 12 GRAB IS MAY CUT PETITION WED. [SPECIAL TO THE TIMES) order that might OF CHARGE CROWN Did light Declaring that wanted might different FOILÉD BY OFF POOR Hammond Man Fails to Introduce Any Evidence [SPECIAL TO THE TIMES] CROWN POINT, Ind., Sept. 28. Lipinski, 63 year old president of the defunct Northern Trust and Savings bank of Hammond, plead guilty to charges of illegal loans and overdrafts in Lake criminal court morning and was promptly sentenced to serve two to fourteen years in the state penitentiary at Michigan City by Judge Martin J. Smith. The court mandated him double the amount $30,865.92 pay which he owes to his defunct bank. Lipinski will be removed to MichiCity just ment papers can drawn and approved. beside BolesSalik, of the plead guilty to embezzlement and sentenced to the year THE Lipinski, attendant his appeared in court this his attorney, William McAleer, of Hammond. The courtroom crowded to capacity. Most those were in the David T. receiver for the seated beside ProseRobert Estill and John Uncutor chief deputy prosecutor. state. guilty in behalf of his client. The case concluded when Judge Smith sentenced the former The Northern Trust and arrested fessed Lipinski the latter taken custody charges illegal loans and Lipinski later released in (Continued on Page

4. October 27, 1931 The Times Hammond, IN
Article from The Times, October 27, 1931

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Article Text

NORTHERN TRUST DIVIDEND PAID SATURDAY Ten Per Cent Cash For 1716 Depositors of Defunct Bank cash dividend of 10 per cent, paid Saturday to 1,716 defunct and SavIngs bank of Hammond. Judge Virgil Reiter ing the distribuThe entered after Rae Royce, attorney representing receiver, had presented report Judge Superior court that $22,000 showing in cash available for the diviMr. Emery announced immediateafter court that he begin distribution of will o'clock Saturday morning in the quarters of Northern and opposite the South Savings will remain until The the benethe fit of the depositors. checks distributed by that time, the receiver the bank next week until the last check has been This the first dividend authorsince the ized bank failed Aug. 25, 1930. Mr. Emery appointed receiver Sept. bank crashed after offi1930. cers had embezzled, $105,000 dissipated, of the bank's the subto mitted to the by the the assets when it closed by department of banking last year. The receiver boosted this amount (Continued Page Fifteen) tee, the

5. October 27, 1931 The Times Hammond, IN
Article from The Times, October 27, 1931

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Article Text

NORTHERN TRUST SEEK SOLUTION DIVIDEND PAID FOR PROBLEM OF SATURDAY UNEMPLOYMENT Ten Per Cent Cash For 1716 Depositors of Defunct Bank cash dividend of cent, be paid to 1,716 of the defunct Trust and ings bank of Hammond. Judge Virgil Reiter this mornauthorized David the receiver, to cash The order entered Rae Royce, attorney representing receiver, had presented report Judge Reiter's Superior court showing that $22,000 in cash was available for the dividend. Mr. Emery ly court that he will of o'clock in the quarters the Northern Trust Savings bank, opposite South Shore station. The bank remain open until o'clock evening fit\of the depositors. all checks not distributed by that time, the receiver will remain the bank next week until the last check has been called This is the first dividend authorized for the bank failed 25, 1930 Mr. Sept. 1930. The bank crashed after offihad embezzled, $105,000 of the bank's According the mitted the by the the bank had assets $342,079 when closed by the state department of banking The receiver boosted this amount (Continued Page Fifteen) Members of State Commission to Talk at Hammond Chamber of Commerce Hammond's probbe raked with Thursday order find some lution before cold weather sets The chamber of soring the move. It will start Thursday noon chamber an open forum disof Governor Harry will speak. are Dr. of the tee, and Price, chairof the building group. These outline in detail the the Muncie plan, which discussed meeting of state leaders Indianapolis yesterday. Following the speakers' program, the meeting will thrown open an open forum discussion. Then, special be by President Thomas Tennant, will meet draft definite for Hamprogram expected to material degree this winter thus, indirectly, the increasingly cult of poor relief. According to officers, the relief platform of (Continued Page Fifteen)

6. October 27, 1931 The Times Hammond, IN
Article from The Times, October 27, 1931

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Article Text

NORTHERN TRUST SEEK SOLUTION DIVIDEND PAID FOR PROBLEM OF SATURDAY UNEMPLOYMENT Ten Per Cent Cash For 1716 Depositors of Defunct Bank cash dividend of 10 per cent, will paid 1,716 the defunct and ings bank of Hammond. Judge Virgil Reiter this mornDavid The order entered after Rae Royce, attorney representing the receiver, had report Judge Superior court $22,000 showing in available for the diviEmery announced that he will o'clock Saturday quarters the Northern Trust Savings bank, opposite the South Shore station. The bank will remain open until o'clock the evening for the fit of depositors. all checks not distributed by that time, the receiver the next week the last check This the first authorized for the bank failed 1930. Mr. Emery appointed receiver Sept. 1930. The bank crashed after officers had embezzled, dissipated, $105,000 of the bank's According the statement submitted to the court the receiver the bank assets $342,079. when closed by the department of banking last year. boosted this amount (Continued on Page Fifteen) Members of State Commission to Talk at Hammond Chamber of Commerce Hammond's unemployment probwill be raked with comb Thursday in order find some lution before cold weather sets The of soring the It will start its study Thursday the open forum disthe Two of Governor Harry Leslie's mission will speak. They are Dr. of tee, and will Price, of Muncle, chairthe building trades group. These men expected outline detail the operation of the Muncie plan, which discussed meeting state leadin Indianapolis yesterday. the program, meeting open for forum Then, be by Thomas Tennant, meet draft definite program for Hammond. This program expected to lieve material degree this winter thus, rectly, solve the increasingly difficult problem poor relief. According to chamber officers, the relief platform the (Continued Page Fifteen)