5758. Citizens Bank (Hebron, IN)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
May 12, 1893
Location
Hebron, Indiana (41.319, -87.200)

Metadata

Model
gpt-5-mini
Short Digest
99d96550

Response Measures

None

Description

Multiple contemporary dispatches (May 12–13, 1893) report Citizens Bank of Hebron closed/suspended due to the failure of the Columbia National Bank of Chicago (a correspondent). Local committee examined books and reported the bank 'all right' and planned to reopen 'the first of the week.' No run on this specific bank is described in the articles.

Events (3)
1. May 12, 1893 Suspension
Cause
Correspondent
Cause Details
Suspension caused by the failure of the Columbia National Bank of Chicago, the bank's correspondent.
Newspaper Excerpt
The Citizens' Bank of Hebron (Ind.) closed its doors today, on account of the Columbia National Bank failure.
Source
newspapers
2. * Other
Newspaper Excerpt
The Citizens' bank of Hebron ... was examined by a committee of Hebron citizens, who went over the books and pronounced it all right. The bank will reopen for business the first of the week. (Indiana State Sentinel, May 17, 1893).
Source
newspapers
3. * Reopening
Newspaper Excerpt
The bank will reopen for business the first of the week.
Source
newspapers

Newspaper Articles (9)
1. May 13, 1893 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, May 13, 1893

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DOZENS GO UNDER. All Sections of Indiana and Michigan Report Failures of Banks. INDIANAPOLIS, May 12.-It is reported that the bank at Boswell, controlled by the Dwiggins syndicate, was closed today. The Citizens' Bank of Hebron (Ind.) closed its doors today, on account of the Columbia National Bank failure. The bank of Spiceland. Spiceland, Ind., suspended today. It was a state institution, with 836,000 capital, of which $13,000 was subscribed by Dwiggins, Starbuck & Co., Chicago. Deposits amounted to $30,000 and loans something more than that. The bank at Monroeville. Ind., a branch of the Chemical National Bank, Chicago, closed its doors today. The Citizens State Bank of Knox. Ind suspended today. Dwiggins of the Columbia Bank, Chicago, was the principal owner. The depositors are almost frenzied. Banks at Walkerton, Arcadia and Ox. ford are closed. All were dependant upon the Columbia. The Union Bank, Richland. Mich branch of the Columbia National, Chicago. closed today. Cashier Watts says the depositors will be paid in full. The private banking institution of Paris and Nave, Rockford, Mich., closed its doors today. The bank did a lively business among farmers. The bank was affected by the failure of the Capital National Bank of Indianapolis.

2. May 13, 1893 The Morning News Savannah, GA
Article from The Morning News, May 13, 1893

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A HEBRON BANK FAILS. Hebron, Ind., May 12.-The Citizens Bank of Hebron closed its doors to-day. The suspension was caused by the Columbia National failure.

3. May 13, 1893 The Morning News Savannah, GA
Article from The Morning News, May 13, 1893

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BANKS GOING 10 SMASH. Branches of the Chicago and Indianapolis Concerns Closing. Eight or Ten Small Institutions Forced to Close Their Doors- The Liabilities and Assets in Most Instances Do Not Represent Large Amounts. Some of the Officials Not to Be Found. Cincinnati, May 12.-The private banking firm of Dwiggins, Starbuck & Co. has failed. THE DUNKIRK BRANCH GOES. Portland, Ind., May 19.-The Dunkirk National Bank of Dunkirk, owned and controlled by Dwiggins, Starbuck & Co of Chicago has failed. Its liabilities are at least $75,000. The firm owns a number of other banks and these are reported to have gone to the wall. A CRASH AT CHARLEVOIX Charlevoix, Mich., May 12.-W. P. Brown & Co., bankers. doing business under the name of the Bank of Charlevoix, have made an assignment to R. W. Kane. No statement has yet been made as to the cause of the suspension. BANKERS SKIP TOWN. Paw Paw, Mich., May 2.-Great excitement prevails at Lawton. The managers of the local bank did not open the institution this morning, having left town last night. Citizens have some $18,000 deposited in the bank. TWO SHUT UP IN INDIANA. Kokomo, Ind. May e.-The state bank of Russiaville did not open its doors this morning. It was a small institution controlled by the Columbia National Bank of Chicago. Some of the stock held by farmers in the vicinity The officers claim that neither the depositors or stockholders will lose anything The bank of Greentown has closed its doors. The suspension is due to the suspension of the Chemical National Bank of Chicago. CAN'T FIND THE OFFICIALS. Toledo, O., May 12. The Ottawa County Bank at Elmore, a branch of the Chicago Columbia. has closed its doors The bank officials are not to be found. HERE ARE THREE MORE. Indianapolis, Ind. May The branch banks of the Columbian National at Moreystown and Greenwood are said to have failed, The Moreystown bank is of considerable importance, having a capital of $75,000. The Farmers and Merchants' Bank of Geneva, Ind.. closed its doors at noon. It was the oldest institution of the kind in the town. The Bank of Spiceland of Spiceland, Ind., suspended to-day. The bank was state institution, with $36,000 capital, of which $18,000 was subscribed for Dwig gins, Starbuck & Co. of Chicago. The de posits amounted to $30,000. and the loans were something more than that MONROEVILLE IN LINE. Monroeville, Ind. May 12.-A bank here. which was a branch of the Chemical National Bank of Chicago, closed its doors to-day. A statement as to the condition of the bank cannot be given. MONTICELLO FEELS THE CRASH. Monticello, Ind., May 12.-The Commercial Bank of Brookston closed to-day. The principal stock is owned by the Dwiggins syndicate. Efforts are being made to have a receiver appointed to protect the depositors. A Lynching Rumor. Columbia, S. C., May 12.-A report reaches here late to-night to the effect that the negroes of Barnwell are gathering together to lynch the colored woman who swore away the life of John Peterson before the mob. FEARED A RUN. Morristown, Ind. May 12.-The Commercial Bank of Morristown closed this morning from fear of a run. There is confidence in the ability of the managers to bridge over the difficulty and resume business to-morrow. No uneasiness is felt by the depositors. A ROCKFORD BANK CLOSED. Grand Rapids, Mich.. May 12.-The private banking institution of Paris & Nave, at Rockford, Kent county. closed its doors this morning upon order of the proprietors, who live at Indianapolis. The bank did lively business among farmers. Nothing is known.of the bank's condition, except that it was affected by the failure of the Capital National Bank of Indianapolis. A CONVOY BANK SUSPENDS. Convoy. O., May 2.-The Farmers Bank of Convoy, O., closed its doors to day, caused by its relations with the Columbia National Bank of Chicago. No statement of the bank's condition has been made. A card on the doors states: "This bank has suspended.' DOORS SHUT AT EDWARDSBURG. Edwardsburg, Mich. May 12.-The Citizens' Bank of this place closed doors this morning. About $25,000 of local deposits together with township and a school funds, are affected. It was branch of the Chicago Columbian. PAYMENT IN FULL PROMISED. Richland, Mich., May -The Union Bank. a branch of the Columbian of Chicago, closed this morning. Cashier Watts says that depositors will be paid in full and the bank running again in two or three days. A HEBRON BANK FAILS. Hebron. Ind., May 12.-The Citizens Bank of Hebron closed its doors to-day The suspension was caused by the Columbia National failure. WHISKY DEALERS FAIL. Louisville, Ky., May 12.-The wholesale whisky firm of W. H. Thomas & Sons suspended payment this morning. The suspension at first caused some excitement. which quickly subsided when it became known that this action was the result of dullness of the whisky trade and the tight money market. The different bankers with which the firm have done business place the excess of assets over liabilities at $150,000 to $400,000.

4. May 13, 1893 Grand Rapids Herald Grand Rapids, MI
Article from Grand Rapids Herald, May 13, 1893

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failure of the Columbia National of Chicago. Zimer Dwiggins, president of the latter. in a stockbobles in the Central though it is said his stock . represented in by a note. YORRINTOWN, Ind. May 12 The Commercial bank of Norridown classa this forenoon front tear of a run. There to confidence to the managers ability to bridge over the difficulty and results business this evening. No is felt by depositors ORLEANS, Ind. May 12. The Bank of Orleans suspended today. through the Indianapolis and Chicago failures. The deposits will reach $30,000. It was owned by Paris & Nave of Indianapolis. The capital stock was $10,000. There was great excitement as the street aroung depositors. Frank Rawlings, the cash ier, said there would be rehel from In dianapolis and that the bank would no open in a few days MONROEVILLA Ind. May 12 no bank here, a branch of the Chemical National thank of Chicago, closed its doors today. A statement as to the con dition of the bank eannot be given. The depositors were of the poorer class of people. MERRAN, lad. May 12-The Citizens' bank of Hebron closed its doors today. The suspendium was caused by the Calumbia National failure. INDIANAPOLIS, May -The Bank of Spiceland of Spiceland, Indiana. suspended today. The bank was . state in stitution with 636,000 capital. of which $13,000 was subscribed for by Dwiggins, Starbuck 4 Co. of Chicago. The Chi cago and Indianapolis failures caused the collapse. The deposite amount to $30.000 and the loans something more than that. KNOX, Ind., May 12 The Citizens' State bank of this city suspended today. Depositors have been almost frenzied all day. The banks at Walkerton, Ar. cadia, Oxford and Rewwell have closed. All were dependent on the Columbia MOSROEVILLE, Ind., May 12 The re ports concerning the standing of the Citizens State bank of Montoeville, Indiana, are wholly without foundation. It has atapie assets to pay all liabilities. The failure of the Columbia National bank of Chicago, or of D. Wiggins, Starbuck & Co., does not affect it.

5. May 13, 1893 The Times Richmond, VA
Article from The Times, May 13, 1893

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MANY BANK FAILURES. Several State and Branch Institutions Shoved to the Wall. PORTLAND, IND., May 12.-The Dunkirk National Bank, of Dunkirk, owned and controlled by Dwiggins, Starbuch & Co., of Chicago, has failed. The liabilities of the firm are at least $75,000. The firm owns a number of other banks, and these are reported to have gone to the wall. "This Bank Has Suspended." CONVOY, O., May 12.-The Farmers' Bank, of Convoy. O., closed its doors today, caused by its relations with the Columbia National Bank, of Chicago. No statement of the bank's condition has been made. A card on the door states: "This bank has suspended." INDIANAPOLIS May 12.-Branch banks of the Columbia National at Moreystown and Greenwood are said to have also failed. The Moreystown bank is of considerable importance, having a capital of $75,000. The Farmers' and Merchants' Bank, of Geneva, Ind., closed its doors at noon. It was the oldest institution of the kind in the town. Another Slight Failure. CHARLEVOIX, MICH., May 12.-W. P. Brown & Co., bankers, doing business under the name of the Bank of Charlevoix, have made an assignment to R. W. Kane. No statement has yet been made as to the cause of the suspension. Managers of a Bank Disappear. PAW PAW, MICH, May 12.-Great excitement prevails at Lawton. The manzgers of a local bank there did not open the institution this morning. having left town last night. Citizens have some $18,000 deposited in the bank. Two Indiana Banks Go Under. KOKOMO, IND., May 12.-The State Bank of Russiaville did not open its doors this morning. It was a small institution controlled by the Columbia National Bank, of Chicago. Some of the stock is held by farmers in the vicinity. The officers claim that neither the depositors nor the stockholders will lose anything. The Bank of Germantown has closed its doors. The suspension is due to the suspension of the Chemical National Bank, of Chicago. Another Bank Fails. TOLEDO, May 12.-The Ottawa County Bank, at Elmore, a branch of the Chicago Columbia, has closed its doors, and the bank officials are not to be found. Private Banking Firm Fails. CINCINNNATI, O., May 12.-The private banking firm of Dwiggins, Starbuch & Co. has failed. Michigan Banks Suspend. GRAND RAPIDS, MICH. May 12.-The private banking institution of Paris & Nave, at Rockford, Kent county, closed its doors this morning upon order of the proprietors, who live at Indianapolis. The bank did a lively business among the farmers. Nothing is known of the bank's condition, except that it was affected by t the failure of the Capital National Bank of Indianapolis. EDWARDSBURG, MICH. May 12.-The Citizens' Bank, of this place, closed its doors this morning. About $25,000 of local e deposits, together with township and school funds are affected. It was a branch of the Chicago Columbia. Another Columbia Branch Fails. e RICHLAND, MISS., May 12. The Union S g Bank, a branch of the Columbia National g Bank, of Chicago, closed this morning Cashier Watts says that depositors will g V be paid in full, and the bank will be r running again in two or three days. More Indiana Failures. g HEBRON, IND., May -The Citizens' m Bank of Hebron closed its doors to-day. is The suspension was caused by the Columy bia National failure. INDIANAPOLIS, May 12.-The Bank of 1, Spiceland, of Spiceland, Ind., suspended 1to-day. The Bank was a State institution, with $26,000 capital, of which $13,000 was subscribed for Dwiggin, Starbuck & Co., of Chicago. The deposits amounted to $30,000, and the loans something more th than that. of MONROEVILLE, IND., May 12.-The y, bank here, a branch of the Chemical Na ic tional Bank, of Chicago, closed its doors t; to-day. A statement as to the condition iof the bank cannot be given. aMORRISTOWN, IND., May 12.-The of Commercial Bank, of Morristown, closed this morning from fear of a run. There is confidence in the managers' ability t bridge over the difficulty and resum ee to-morrow. No uneasiness is felt by de positors. MONTICELLO, IND., May 12.-Th by Commercial, of Brookston, closed to-day The principal stock is owned by the Dwig te gins syndicate. Efforts are being made to have a receiver appointed to protec xt depositors.

6. May 13, 1893 Rock Island Daily Argus Rock Island, IL
Article from Rock Island Daily Argus, May 13, 1893

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BANKING ON WIND. Alleged Facts About the Columbia Concern. DIRECTORS TALK OF RESUMPTION, But Matters Are In a Much Mixed Condition-Development of Financier Dwig-Operations of His County Bank Scheme-Connections That Have Gone Inder-Correspondents in Illinois-Im tators at Indianapolis-An Epidemic of Failures. CHICAGO,May 3.-Interesting disclosures are promised in connection with the investigation into the Columbia National bank failure. The directors have held a meeting to discuss the practiciability of resuming, but the result of their affairs of the bank are in such deliberations was not given out. The a thorough mix that it is not known just how matters stand. Zimri Dwiggins. president of the Columbia bank, was a banker at Attica, Ind., ten or twelve years ago and at that ti e established close relations with G. W. Wiggs and J. M. Starbuck, who were running a system of bucket shops under the name of Wiley, Strawbridge & Co. Sunk $300,000 in a Silver Mine. They determined to start a bank and organized the United States National bank with a capital of $50,000. The bucket shop business was subsequently broken up un der the bucket shop law, the bank being left in Dwiggins' control while Wiggs went to New Mexico. The stock of the United States bank was swelled to $500,000 and Wiggs, who had discovered an alleged gilt-edged mine, drew $300,000 to pay for it. The mine was to be sold to English investors. The mine was a "dead horse" and never panned out. Took Up a Country Bank Scheme. Nothing daunted by the failure of the New Mexican scheme, Dwiggins and Starbuck undertook the establishment of a chain of country banks. It is not own how many were then organized, but after the Columbia was established they went it with vim, and their connections are now more extensive than before. The scheme was to visit some well-known and well-todo farmer in a town and secure his services s cashier of a branch, the farmer taking a large block of stock. The money was advanced by the Columbia and some one put in control whom they could manipulate The country bank stock thus acquired was either used as collateral for loans by the Columbia National or bought outright. As the money sent out into the country soon came back to the reserve center the bank was not out of cash long, and practically no capital was required in the promotion business, Got on Too Heavy a Load. The Columbia, however, finally got load ed up with country bank stock for which it had no special use, and then it was de termined to organize a company to take stock, issue debenture bondson them and sell the bonds, The United States Loan and Trust company was according ly put in the field, with Zimri Dwiggins as president, and incorporated under the laws of Indiana, The company represented that upon the basis of country bank stocks yielding 8, 10 and 12 per cent. dividends and 6 per cent debenture bonds would be issued. Who Is Good for the Loan Company? To make the bond good the United States Loan and Trust company guaranteed the payment of principal and interest. The scheme caught on in good style and it is known that at one financial concern's office $250,000 of the United States Loan and Trust company's debentures had been registered. The approximate amount of bank stock held for this is 8450,000 and President Dwiggins.ha $500,000 more on hand. The nited States Loan and Trust company has no visible assets except about $1,000 in office furniture. Country Concerns That Failed. The following banks connected with the Dwiggins-Starbuck-Columbia bank combination, have closed: Commercial bank of Brookston, Ind.: bank of Dunkirk, Ind.: Commercial bank of Morristown, Ind.; Commercial bank of Russiaville, Ind.: Citizens' bank of Edwardsburg, Mich.: Union bank of Richland, Mich., Others in Indiana: Bank of Spiceland, at Spiceland, capital $36,000, Dwiggins subscribing $13,000 thereof; Citizens Bank of Hebron; Citizens' State Bank, of Knox (Dwiggins): Bank of Orleans at Orleans (Paris & Nave); banks at Walkerton, Arcadia, Oxford and Boswell. Correspondents in Illinois. There are a good many correspondents in Indiana and the following in Illinois: Byon's bank,of Byron (Dwiggins, Starbuck & Co.); Farmers' and Merchants bank of Casey; Bank of Lynn, East Lynn (O. A. Ross); Georgetown bank (Dwiggins, Starbuck & Co); First National bank of Hoopestown, capital $50,000; People's bank of Martinsville; Farmers' and Merchants' Carmel; State Bank of Farmers' Bank of Boyden & Son's of capital farm; Sheffield; Mount A. $25,000; W. bank, Ridge- Orian, of Spring Valley National bank, capital $50,000. Creditors Assured of Their Money. Crowds of people congregated around the offices of the Columbia National bank, but who were assured from notices posted by those had drawn on the bank that they themselves would see to the liquidation all given such drafts, and other assurances were of by officials that all would get their money. DID A DWIGGINS BUSINESS.

7. May 17, 1893 The Indiana State Sentinel Indianapolis, IN
Article from The Indiana State Sentinel, May 17, 1893

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at Indianapolis and the Columbia national at Chicago. In both these banks the Spiceland institution had deposits, $2,000 in each, leaving $5,000 of cash on hand, that being the total asgets now available. The liabilities are anproximately $30,000 and the total assets will not reach that sum without making inroads on the stock. The bank was organized two years ago, with a capital of $30,000, a larger part of which was held by Chicago parties and was never all paid in, simply being secured by their paper. No decision has yet been announced as to whether or not the bank will be able to resume business, but is is the opinion of the bankers of this place that it will not. SOUTH BEND, May 12.-[Special.]-TheCommercial bank at Walkerton is owned and controled by the Columbia national of Chicago. What affects one will the other. TIPTON, May 13.--(Special.]-The Citizens' bank at Kempton, a small town in the western part of this county, 0 osed its doors today. The bank was one of the many concerns controlled by the Columbia national bank of Chicago, and was in charge of R. C. Paris. There was $8,000 on deposit, most of which was deposited by farmers and laboring men, but Paris claims that the money is secured by $11,000 of good paper. Mr. Paris and family left Kempton this afternoon to be gone a week. It is also rumored that the Citizens' bank at Windfall, this county, in which ExGovernor Chase is a stockholder, had failed, but nothing definite could be learned. COLUMBIA CITY, May 3.-[Special.]-The Citizens' state bank of Chreubusco has been forced to close its doors and suspend payment in consequence of the failure of the Columbia national of Chicago, which was its Chicago correspondent. The bank was organized under the state law a little over a year ago with a capital stock of $25,000. but was not doing much business. At the time of suspension the deposits amounted to about $30,000, which is said to include the township fundsand about $2,000 due the county treasurer. ORLEANS, May 1.3.-[Special.]-The Bank of Orleans, owned and controlled by Paris & Nave of Indianapolis, which closed its doors yesterday morning, will pay dollar for dollar, and the depositors will form a stock company and resume business in a few days. Excitement ran high up until 12 o'clock today, but all matters are satisfactorily settled. VALPARAISO, May 13.-[Special.]-The Cit izens' bank of Hebron, which closed its doors yesterday, was examined by a committee of Hebron citizens, who went over the books and pronounced it all right. The bank and the one at Lowell are owned by R. S. Dwiggins, who claims to be worth $200,000 over his indebtedness. The bank will reopen for business the first of the week.

8. May 18, 1893 Grant County Herald Lancaster, WI
Article from Grant County Herald, May 18, 1893

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MANY BANKS CLOSE. Result of the Failure of the Columbia National of Chicago. CHICAGO, May 13.-Dispatches received here announce the suspension of the following banks, all of them due to their connection with Dwiggins, Starbuck & Co., of the Columbia national bank of this city, which closed its doors on Thursday: Bank of Dunkirk, Portland, Ind., liabilities estimated at from $75,000 to $100,000; Commer rial state bank of Russiaville, Ind., deposits, 560,000; Farmers' bank, Greentown, Ind.: priwater banking firm of Dwiggins, Starbuck & Co., at Williamsburg, O.; Ottawa bank, Elmore. O: Commercial bank of Morristown, Ind: Citizens' national bank, Boswell. Ind.: Commercial bank of Brookston, Ind.; Commercial bank at Walkerton, Ind.: Farmers' and Merchante bank of Genewa. Ind : Bank of Greenwood, Ind.; Bank of Orleans, Orleans, Ind.: Citizens bank, Hebron, Ind.: Farmers' and Merchants' bank, Casey, Ill.: Citizens' bank of Edwardsburg, Mich Bank of Lawton, Mich.: Bank of Oregon. Wis: Union bank, Richland, Mich: Spiceland bank, Spiceland, Ind : Citi zens' state bank, Knox, Ind: Central bank, West Lebanon, Ind.; banks at Oxford, Ind, and Arcadia. Ind.

9. May 19, 1893 The Goodland Republic Goodland, KS
Article from The Goodland Republic, May 19, 1893

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Columbia National Bank Falls. CHICAGO, May 13.- The Columbia National bank, capital stock $1,000,000, did not open its doors Thursday morning. The suspension is due to a steady withdrawal of deposits extending over the last two weeks. In one week $400,009 in cash was paid out and Wednesday $00,000 was handed to those who made application for their money. Bankers look upon the failure as a natural consequence of more than one condition. DAYTON, May 13.-The bank of Brookville this county. suspended Friday morning, due to a run made on the bank by depositors. The assets and liabilities are placed at $16,537. Fully 19.726 of the deposits are secured. The bank is operated by Dwiggins, Starbuck & Company of Chicago. INDIANAPOLIS, May 13.-The bank of Spiceland of Spiceland, Ind., has suspended. The bank was a state institution, with $36,000 capital, of which $15,000 was subscribed for Dwiggins, Sarbuck & Company of Chicago. The Chicago and Indianapolis failures caused the collapse. The deposits amounts to $30,000, and the loans something more than that. HEBRON, Ind., May 13.-The - Citizens bank of Hebron closed its doors Friday. The suspension was caused by the Columbia National failure. Knox, Ind., May 13.-The Citizens' State bank of this city suspended Fri® day. Dwiggins of the Columbia bank of Chicago, was the principal owner. Depositors have been almost frenzied all day. The banks at Walkerton, Arcadia, Oxford and Boswell have closed. All were dependent upon the Columbia.