Farmers Trust Company - Indianapolis, IN

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust company
Start Date: October 15, 1927
Location: Indianapolis, Indiana (39.768, -86.158)

Metadata

Model: gpt-5-mini
Short Digest: e1cfb8f1

Response Measures

None

Description

Article (The Indianapolis Star, 1927-10-15) describes Farmers Trust Company as defunct and under the jurisdiction of Judge Mahlon E. Bash with receivers involved after theft of bonds and asset shrinkage. No run is described. The bank is in receivership/closure due to asset shortfalls and court action; I infer a prior suspension of payments preceding receivership. OCR errors in the article were corrected (e.g., fragmented sentences).

Events (2)

1. October 15, 1927 Receivership

Newspaper Excerpt: The receivers will fight the permanent injunction ... Assets of the bank listed as $3,750,000 by Judge Mahlon E. Bash of court, under whose jurisdiction the ... the Institution's capital on account of bond theft according Judge Bash. direction the are handling the bank.
Source: newspapers

2. October 15, 1927 Suspension

Cause: Government Action
Cause Details: State banking department ordered action after theft of Liberty bonds and apparent capital insufficiency; court/receivership proceedings followed.
Newspaper Excerpt: defunct ... under whose jurisdiction the The three notes this assets ... Assets of the bank listed as $3,750,000 by Judge Mahlon E. Bash of court, under whose jurisdiction the
Source: newspapers

Newspaper Articles (1)

1. October 15, 1927 The Indianapolis Star Indianapolis, IN

Article from The Indianapolis Star, October 15, 1927

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Article Text

BANK RECEIVERS' Court Enjoins Sale of Notes Totaling $100,000 Held by Wild & Co. Judge Linn D. Hay of Superior issued to Eugene H. Iglehart and Richard L for the defunct Co. State from selling three notes gregating $100,000 along with other the The order formal one hearing the the will heard at brought out, Judge Hay One the signed by Frank M. and of the Farmers Trust Comother pany two notes each and an signed Robert John president of the Gregory Appel Attorneys for the signers appeared before Judge Hay explained attorneys representing the the would The receivers will fight the permanent injunction when the case is heard The notes signed Nov. The the was issued set that the had nothreturn notes and signed them merely an the The the the thereof great damage to the complaints order which holds the notes signers is asked by the plaintiffs SHRINKAGE SEEN. Should the judge decide upon final hearing grant the petitions would shrinkage of $100,000 assets of the bank and reduetion in the to be paid depositors and other Assets of the bank listed as $3,750,000 by Judge Mahlon E. Bash of court, under whose jurisdiction the The three notes this assets. Mr. one of the plaintiffs the the signer several thoudollars held among the assets of the The executed shortly after the theft in Liberty bonds 1926. Luther state night that an examination the was held shortly after the theft and said he was under the notes were signed after the examination. Mr. Symons said could not recall whether officials the bank warned at time of the examination that assets of the bank insufficient. The notes evidently were to the bank after state banking department ordered the bank an Important the Institution's capital on account of bond theft according Judge Bash. direction the are handling the bank. Letters signers the receivers asking them to the because they were "accommodation paper" and were given without consideration. said. search receivers showed that the notes were dated June 10. 1927. and renewals given Dec following by the banking an department. Efforts discover the person who the bonds thus far have futile. The state bank examiner said that in his opinion the signers accomodation notes understanding of the banking laws that who signs note is held responsible the amount the note. Circumstances surrounding acceptance of the are not taken into consideration that respect." he said.