5793. Aetna Trust & Savings Company (Indianapolis, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
August 1, 1933
Location
Indianapolis, Indiana (39.768, -86.158)

Metadata

Model
gpt-5-mini
Short Digest
919933ba

Response Measures

None

Description

The Aetna Trust & Savings Co. was operating on a restricted basis during the national banking moratorium and then voluntarily closed Aug. 1–2, 1933 and was turned over to the state for liquidation. No explicit contemporaneous bank run is described in the articles; liquidation proceeded and dividends were later paid to creditors, so this is a suspension that resulted in permanent closure/liquidation.

Events (5)
1. August 1, 1933 Other
Newspaper Excerpt
R. A. McKinley, state bank commissioner, named Thomas Barr ... as liquidating agent for the bank, which obviates the expense attached to lengthy court receivership. Mr. Barr probably will handle all such liquidations in the Indianapolis territory.
Source
newspapers
2. August 1, 1933 Suspension
Cause
Voluntary Liquidation
Cause Details
Bank had been operating on a restricted basis since the national banking moratorium and directors opted for voluntary closure and liquidation; placed in state hands and liquidating agent assigned.
Newspaper Excerpt
The Aetna Trust and Savings Company, 23 North Pennsylvania street, voluntarily closed today, the bank being placed in the hands of the state banking department
Source
newspapers
3. April 19, 1934 Other
Newspaper Excerpt
121 per cent dividend for depositors of the defunct Trust Company ... The dividend will be the first declared ... in Marion county courts ... and the Aetna Trust and Savings Company was among them
Source
newspapers
4. April 26, 1934 Other
Newspaper Excerpt
A 25 per cent dividend may be paid to depositors of the defunct Aetna Trust and Savings Company if Superior Judge John W. Kern acts favorably on a petition filed yesterday by Carl A. Ploch, liquidating agent of the bank.
Source
newspapers
5. October 27, 1934 Other
Newspaper Excerpt
Preparations were being pushed today for the payment of $63,854.85 to common creditors of the defunct Aetna Trust and Savings Company, ordered late yesterday by Superior Judge John W. Kern. The 10 per cent dividend is payable Nov. 1.
Source
newspapers

Newspaper Articles (12)
1. March 15, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, March 15, 1933

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EIGHT MILLIONS PUT IN BANKS Deposits Are Heaviest in City's History, Report Officials. (Continued from Page One) cepting deposits which may be withdrawn in full. These included the Aetna Trust and Savings bank, Virginia Avenue State bank, Belmont State bank, Marion County State bank, Peoples State bank, and Citizens State bank of Beech Grove. State banking officials announced a large number of banks open throughout the state and they were working at top speed today checking condition of other banks in preparation for issuing permits for their reopening as soon as possible. It was announced at the statehouse today that practically every county in the state has at least one bank open. Bankers pointed out that the heavy excess of deposits over withdrawals was not caused by the limitation on cash withdrawals. The banks were forced to ask very few persons to sign affidavits that heavy withdrawals were for necessary purposes and not for hoarding. Gold coins and gold certificates today continued to pour into banks, officials reporting more than $100,000 in gold received in exchange for currency Tuesday. It was estimated that more than $700,000 in gold coin and gold certificates has been shipped to the federal reserve bank at Chicago in the last week. Heavy Penalty Provided A maximum penalty of a $10,000 fine and ten years in prison is provided for persons hoarding gold and gold certificates. Banks of the country have until Thursday to furnish the government with lists of persons who have withdrawn gold or gold certificates in sizeable quantities in the last few years without returning it. Building and loan associations reported increased business Tuesday and today as payments were made on loans. During the banking holiday no payments were made on loans and PA borrowers hastened to make paye ments as soon as funds were available. S Most of the money received was in cash, with few checks being tendered, it was said. Operations of these financial in] stitutions have been on a restricted basis for several months.

2. August 1, 1933 Journal and Courier Lafayette, IN
Article from Journal and Courier, August 1, 1933

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Indianapolis Bank Is Put Into State's Hands Ind., Aug. Aetna Trust company organized 1913 which time had $2,000,000 in deposits, closed doors voluntarily here today for liquidation or reorganization. The classified as banking by department. Closing the bank was in with the department's the pelicy eliminating all class banks as quickly as possible by either liquidating them or promoting to banks. H. president of the and Rappaport, of In statement ex-

3. August 1, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, August 1, 1933

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AETNA TRUST CO., RESTRICTED BANK, VOLUNTARILY CLOSED; PAYMENT IN FULL POSSIBLE Thomas Barr Is Named Million New Jobs Opened Liquidating Agent for Institution. in Nation's Retail Stores AVOID RECEIVER DRAIN by Code Effective Today All Cash Deposited Since Provisions of Blanket Agreement Are Modified by NRA to National Moratorium to Permit All Stores to Adopt Requirements at Once: Be Returned. Blue Eagle Signs Go Up. The Aetna Trust and SavBY H. D. THOMPSON ings Company, 23 North United Press Staff Correspondent Pennsylvania street, volunWASHINGTON, Aug. 1.-America's "big push" toward tarily closed today, affairs of better times brought cheering victories today. the bank being placed in More than a million new jobs were opened in the counhands of the state banking try's retail stores. department, with possibility Steady progress was reported in the campaign to bring of depositors and creditors the steel and oil industries under provisions of the national being paid in full. recovery act. The bank has been on restricted, or "B" basis. since the national This was the day set for banking moratorium. It has liabilibusiness to put into effect ties and assets of about $1,900,000, with more than 1,000 depositors, President Roosevelt's emerCRADLE PHONE President R. H. Wallace said. gency re-employment agreeBalk Receiver Expense ments. From all sections of R. A. McKinley. state bank comRATES CHANGED the country came reports of missioner. named Thomas Barr, former asssistant state bank comblue eagles going up on store missioner, and now field accountant fronts and factories, and emfor the state accounts board, as25-Cent Extra Charge to signed to the banking department, ployers falling into line by the as liquidating agent for the bank, End When Payments under the new state bank law. thousands to spread employThis obviates the expense atTotal $9. ment and pay workers hightached to lengthy court receiverMonthly charge of 25 cents for er wages. ship. McKinley said Barr probably will handle all such liquidaProvisions of the blanket agreethe French or cradle type telephone, ment as they affect the hours and tions in the Indianapolis territory. will be eliminated after $9 has been wages of 4,000,000 employes of reIt was announced by McKinley paid, under an order of the public tail stores were modified Monday that all cash deposited in the bank service commission adopted today. night by Administrator Hugh S. since the moratorium will be paid Johnson. in full. Deposits made prior to the The order is directed to the InThe NRA estimated that under moratorium will be subject to liquidiana Bell Telephone Company, but the new terms, more 1,100,000 perdation, or reorganization. is expected to be applied to other sons could be given immediate emLikely to Pay in Full ployment. telephone companies where such "The board of drectors of the Progress Made on Codes phones are used, it was explained. Aetna Trust and Savings Company, Hearings on the code of fair Sherman Minton, public counselor, after careful consideration, deemed competition for the giant iron and had it promulgated. it advisable to request the banking steel industry were recessed after It was worked out in co-operation department to appoint a representa day of thick-and-fast developwith B. G. Halstead, attorney for ative to assist in liquidation or posments, including withdrawal of the the telephone company. A similar sible reorganization of the affairs most controversial feature of the order already is in effect on Bell of the company," Wallace said. code, that proposing to continue the properties in Ohio, is was explained. "If this step eventually results in company union plan of employe representation. The order is retroactive, in that final liquidation, it is the opinion of the directors that through the persons who already have paid $9 Progress in the effort to bring some semblance of order out of the in monthly charges for such phones orderly manner made possible under supervision of the state, in accordneed pay no longer. This includes chaotic oil industry was registered ance with a recently enacted statin a new code drafted by NRA ofthe charge of 50 cents monthly, ficials and representatives of the which was made some time ago beute, it should be possible to pay all depositors and creditors in full." fort it was reduced to 25 cents by industry. The new code proposes a the commission. Besides Wallace, officers of the work-week of thirty-six hours in the bank, founded about a quarter of a oil fields generally, and forty-hour Under the 25 cent charge. it will week in the marketing end of the century ago, include: Leo M. Raptake three years to pay off for perpaport and Lewis F. Hensley, viceindustry. sons starting now, or the $9 could The blanket code was modified for presidents, and O. R. Olsen, treasbe paid at once. it was pointed out. urer. retail stores to enable most of the Previously, there was no limination's retailers to come under the Directors are Wallace. Rappaport, tation to the monthly payments, Samuel Brown, Francis W. Dunn, recovery act immediately. Many they merely continued. J. J. Fitzgerald, R. S. Martin and had complained that the original Pierre F. Goodrich. terms would work too great a hard-

4. August 2, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, August 2, 1933

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THE AETNA CLOSING N unpleasant echo of the bank "moraA torium was heard in Indianapolis Tuesday, it was just an echo-nothing more. The Aetna Trust and Savings Company finally closed its doors after operating for months on a restricted basis. Depositors who had their money in the institution prior to the bank holiday will not be able to get their money until the assets have been liquidated. But they could not draw it out while the bank was open so they are no worse off than they were before. Those who made deposits after the moratorium will be paid in full. To be sure they wlil be put to the inconvenience of seeking new banking connections. That is all. So far as the Aetna situation is concerned, no one need have any anxiety. It can be marked down as one inning, with no hits, no runs, no errors, in the winning game Indianapolis is playing with the forces of depression. Because the institution was restricted, and therefore isolated from the other banks of the community, its closing will have no effect on the city's general business life. The Aetna never did really reopen. Its officers made a courageous attempt to get it back on its feet after the moratorium. The fact that they were unable to do so has earned them sympathy. They deserve commendation for their wise decision to protect the depositors by the liquidation route since the struggle to make the bank once more a going concern was doomed to failure.

5. September 28, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, September 28, 1933

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HOLDERS OF AETNA STOCK FACING SUIT Bank Closing Results in Liability Action. A liability suit involving ninetythree stockholders of the defunct Aetna Trust and Savings Company, 23 North Pennsylvania street, was filed in circuit court today seeking to collect from stockholders and obtain appointment of a receiver. The bank voluntarily closed its doors Aug. 2. The complaint, filed by Thomas E. Garvin and Floyd Burns, sets out that the bank was capitalized Jan. 30, 1912, with $250,000 capital stock. It states that $1,357,332.74 is due creditors and asserts that assets will fall $250,000 short of meeting the liabilities. Former Governor James P. Goodrich is named as the principal stockholder with 1,217 18-40 shares with a par value of $121,745. Other members of the Goodrich family of Winchester, Ind., or Goodrich interests, are alleged to hold 288 shares valued at $32,000.

6. November 15, 1933 The Indianapolis Star Indianapolis, IN
Article from The Indianapolis Star, November 15, 1933

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LOANS FROM RFC RELEASE Payment of Half of Frozen Deposits Planned Before Christmas-City Share Is $1,500,000. Christmas closed companies planned by Seventh Federal Indiana and the state committee is arranging frozen deposits about defunct banks through reconfinance loans. will make possible Christmas gifts by many would have small yuletide cheer It will mean business for and possible payment of debts. Details of the plan be outlined and liquidating agents banks meeting tomorthe Indianapolis Athletic Would Release Nearly Half. At the banking department yesterday it explained that the expected release about half the deposits the closed banks in the Seventh district, which comprises most liquidating agents invited to attend the meeting letters sent out by Robert R. Batton, chairman of the Federal committee and the other four members, all of whom are members the department financial instituFour closed Indianapolis banks eligible the state officials explained. half the deposits in Indianapolis institutions as approximately $1,500,000 free in the The Indianapolis banks and approximate deposits, Farmers Trust $1,Aetna Trust Company, Virginia AveState and Belmont State to Furnish Funds. Mechanics of the plan simply provide for long-term loans to the funct banks, through the receivers liquidating Existing sets are pledged collateral for the loans. funds derived from the reconstruction finance corporation. The assets be liquidated orderly fashion and the loans repaid to the Federal government by the receivers and liquidating agents. This will the flooding markets bank and prevent assets sacrifice figures. period five years the assets be advantage, it explained. Banks eligible the loans include about closed was explained banking department. Banking Department at Helm. Most of the involved be done through the state banking deThe Indiana committee will co-opwith the finance corporation and the deposit liquidation board in making the loans banks through James Leavell of Chicago and Walter W. Smith of the Seventh and Eighth Federal districts The Indiana committee. headed by Mr. Batton of includes Myron H. Gray of Muncie, Harvey Hartsock Indianapolis, Setser Columbus and Oscar Welborn of Indianapolis. one committees of bankers and business men appointed to speed the of more than $3,000,assets closed national and state banks throughout the country. Banks to Make Applications. The receive applications from closed banks for loans from the poration. The committee then will review the application and fix liquidating for the listed assets period of three to five years. The application then will be passed along to the district chairmen with for amount, less the cost determining district chairman will recomaction to the deposit liquidatBanks operating under liquidating agent of the state banking mission receiver to which the notices sent included Citizens Loan and Trust Company of Frankfort, Peoples State bank at East ChiCitizens State bank at NoblesExchange Lyons, Wabash County Loan Trust Company Trust ComIndianapolis, Valley

7. November 15, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, November 15, 1933

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BANK 'THAW' OF $20,000,000 TO BE FORMULATED Meeting Set to Arrange for Liquidation With RFC Money. Plans for a $20,000,000 liquidation of assets in eighty defunct state banks will be drafted by the state banking commisison and Seventh district reserve committee at a meeting tomorrow afternoon at the Indianapolis Athletic Club. The move is in addition to the one announced last week for putting $10,500,000 into liquidation through the Home Owners Loan Corporation, it was said. Receivers Invited Robert R. Batton, chairman of both the federal reserve district committee and state banking commission, called the meeting and will preside. Funds for the liquidation are to be provided by the RFC. Receivers and liquidating agents for the closed institutions have been asked to attend the meeting and hear the plan unfolded. Machinery of the project is to provide long term loans to the banks on frozen assets. Four in City Affected It was estimated by the state banking department that nearly all can have their deposits released by Christmas in this manner. Indianapolis banks affected by the plan and approximate amount of deposits include the Farmers Trust Company, $1,280,000; Aetna Trust Company, $1,280,000; Virginia Avenue State bank, $123,000, and Belmont State bank, $250,000.

8. January 29, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, January 29, 1934

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# EX-BANK HEAD # SLASHES SELF Former State Official in Serious Condition After Suicide Attempt. Thomas D. Barr, former state banking commissioner, is in a serious condition in Methodist hospital with razor wounds in the throat from an alleged suicide attempt yesterday afternoon at his home, 549 East Fifty-eighth street. Mr. Barr for eighteen years connected with the banking department, was talking to Miss Sarah Green, his secretary, and Harold Hogan, a neighbor, yesterday afternoon, according to reports to police. They said he went to the bathroom; they heard a fall and on investigation found he had slashed himself in the throat with a safety razor blade. After suffering a cerebral hemorrhage several weeks ago, Mr. Barr had been ill and run-down physically, according to Mrs. Daisy Douglas Barr, his wife. Demands made on his time by the exigencies of the banking moratorium and his recent work as liquidating agent for the Aetna Trust Company had made it impossible for Mr. Barr to sleep more than two hours a night, according to Mrs. Barr.

9. April 19, 1934 The Indianapolis Star Indianapolis, IN
Article from The Indianapolis Star, April 19, 1934

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Favorable Court Ruling on Pct. Disbursement Expected Tomorrow. 121 per cent dividend for deposof the defunct Trust itors will within the Company next few days Judge Clarence Superior Court. Room acts favorably petition filed his court yesterday by Boyd Ralston, Weir announced that Judge would act on the petition, him by Nathan Swaim and Charles Richards, attorneys for tomorrow morning. The judge indicated that he would grant the dividend. The dividend will be the first clared any of the large Indianapolis banks in receivership Marion county courts within the last two or three Other banks receivership the State Savings and Trust the Washington Bank Trust Company, the City Trust Company and the Aetna Trust and Savings Company Suit to Be Filed Today. suit enjoin payment the Farmers Trust dividend any stockholder of the institution had an account the bank will be filed Marion county court today, Othniel Hitch, attorney some of the announced yesterday. The dividend will total based aggregate of in claims against the Swaim plained. Preferred claims fixed by Judge Weir There however, only availpay these claims The preferred balance then transferred the claim list, the attorney The reported that he had hand the business Monday, of which is needed meet preferred claims pending in the Appellate Court totaling about $11,000, to taxes aggregating $5,200 and pay meet other maturing administration obligations totaling Unable Get RFC Loan. Mr Ralston also reported the court that been unable gotiate $195,000 from the construction Finance Corporation because the nature the security offered. The loan refused most the assets the bank which offered security real explained. The was approved by the state visory and appraisal government agency The Reconstruction Finance Coragreed advance the bank receiver the which all the institution exclusive of hand, Swaim Pending final on the offer, the decided petition the to declare the first dividend,

10. April 26, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, April 26, 1934

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# AETNA DEPOSITORS # MAY GET $200,000 25 Per Cent Dividend Up to Superior Judge Kern. A 25 per cent dividend may be paid to depositors of the defunct Aetna Trust and Savings Company if Superior Judge John W. Kern acts favorably on a petition filed yesterday by Carl A. Ploch, liquidating agent of the bank. A hearing on the petition will be conducted May 2. Approximately $200,000 will be distributed if the petition is approved. Depositors of the Farmers Trust Company are scheduled to receive a 12½ per cent dividend by May 1. Boyd M. Ralston, receiver, requested the dividend in the superior court of Judge Clarence E. Weir. Judge Weir has indicated his approval of the payment of the dividend.

11. May 4, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 4, 1934

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PARTY HARMONY TO AID KERN IN MAYORAL RACE Judge Starts Windup of Long, Vigorous Speaking Campaign. Judge John W. Kern, Democratic mayor candidate, today began the windup of a long and vigorous speaking campaign he has carried on during the last month in every section of Indianapolis. Drafted to make the race for mayor, Judge Kern is known to carry almost perfect organized party support. In spite of this fact, he states he has carried on this intensive speaking campaign for the purpose of acquainting citizens in every section of the city with the true facts of who he is and why he is running for the office. Decided upon several weeks ago by leaders as the man to carry the party banner, and reunite the insurgent factions, Judge Kern reluctantly withdrew as a candidate for re-nomination and election to the judgship of superior court, room one. During the last three years, Judge Kern has established an enviable record in that court, finishing second among the five superior judges in number of cases disposed of in 1931 and leading the group in number of cases disposed of in 1932 and 1933. Proud of Bank Record He points with pride to the fact that in the bank receiverships, he has handled the Belmont State bank and paid 18 per cent dividend, with a possible 7 per cent more to come, and the Maple Road bank has paid 35 cents on the dollar to depositors. The Virginia Avenue State bank paid 40 cents on the dollar, and within the last week Judge Kern ordered an initial 30 per cent dividend paid to Aetna Trust Company depositors. Judge Kern is proudest, however. of being able to bring about reorganization of the Trustees System bank and said if nothing hap-

12. October 27, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 27, 1934

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# BANK CREDITORS SHARE $63,854 Dividend From Assets of Aetna Trust Approved by Kern. Preparations were being pushed today for the payment of $63,854.85 to common creditors of the defunct Aetna Trust and Savings Company, ordered late yesterday by Superior Judge John W. Kern, Democratic mayoral nominee. The 10 per cent dividend is payable Nov. 1, under Judge Kern's order. Judge Kern directed also that $38,471.16 be set aside for the payment of preferred creditors if and when such claims are allowed. The order directed payment of the dividend by Carl A. Ploch, state department of financial institutions special representative in the liquidation of the assets of the banking company. In directing the payment of funds to common creditors, Judge Kern disclosed that $638,549.46 is available in cash and that bonds having a marketable value of $28,150 also are in the hands of the receiver. Maturing mortgages, payable within six months, total $13,200, and secured personal loans amount to $5.816.26. Realty mortgages of $120,000 are secured by first mortgages of $210,000, the order declares.