5823. First National Bank (Indianapolis, IN)

View Charter #2556 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
55
Charter Number
2556
Start Date
November 11, 1886
Location
Indianapolis, Indiana (39.768, -86.158)

Metadata

Model
gpt-5-mini
Short Digest
6dca6c95

Response Measures

None

Description

Stockholders of the First National Bank (Indianapolis) unanimously voted to suspend business and go into voluntary liquidation (reported Nov 12, 1886). Subsequent articles through 1887–1888 reference receivership litigation (receiver Milligan), indicating the bank remained closed and under receivership. No discrete depositor run is described in the articles.

Events (3)
1. November 11, 1886 Suspension
Cause
Voluntary Liquidation
Cause Details
Stockholders, citing reduced profitability and widely circulated rumors (though the bank was said to be in a perfectly sound condition), voted unanimously to suspend business and go into voluntary liquidation; telegram sent Nov. 11 to Secretary of the Treasury to be discontinued as a depository.
Newspaper Excerpt
After a full and free discussion of the situation it was unanimously determined that the bank should go into voluntary liquidation.
Source
newspapers
2. August 3, 1887 Receivership
Newspaper Excerpt
Decision in the suit of the First National Bank against Henry Milligan, receiver, and others...the suit of the First National Bank against Milligan, as receiver of the old First National has been set for trial on April 3 ... (references in 1887 article).
Source
newspapers
3. June 1, 1888 Receivership
Newspaper Excerpt
Compromise Effected in the Receivership Suit of Milligan Against Rand. Decree ... settling the claims against the old First National Bank ... Receiver Milligan ... the receiver was ordered to enforce payment by suit, or otherwise, of claims ... and to issue receiver's certificates.
Source
newspapers

Newspaper Articles (10)
1. November 12, 1886 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, November 12, 1886

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Article Text

GOING INTO LIQUIDATION. The Stockholders of the First National Bank Decide to Quit Business. All Depositors and Creditors To Be Paid at Once and Further Business Operations of the Bank To Be Stopped. A meeting of the stockholders of the First National Bank was held yesterday for the purpose of discussing the affairs of the concern and determining whether or not the business outlook would warrant the continuance of its operations. Although in a perfectly sound condition, the bank's business, for some time, has been less profitable than in former years, and recently the officers were caused much annoyance by extensively circulated rumors that there was danger of a collapse. A statement was published over the names of the directors contradicting these sensational and unfounded reports, and assuring the public that the bank was in an absolutely safe condition. The rumors, however, affected the business of the bank to a marked extent and led to the officers calling the meeting which was held yesterday for the purpose of deciding the question of whether or not it would be advisable to continue operations. More than two-thirds of the stock was represented, and there was a thorough and prolonged discussion of the questions that came up for consideration. The result was a determination, by a unanimous vote, to suspend business and go into voluntary liquidation, for which all essential preparations have already been made. In pursuance of this purpose it was resolved to surrender the bank's government deposits and take up its bonds. In the afternoon the following telegram was sent to the Secretary of the Treasury: INDIANAPOLIS, Nov. 11. Hon. Daniel Manning, Secretary of the Treasury: This bank wishes to be discontinued asa depository. Please have action taken through the United States National Bank of New York. E. F. CLAYPOOL, President First National Bank, Indianapolis. After the adjournmentof the meeting of stockholders in the afternoon, Judge R. N. Lamb, one of the directors, gave to the press a brief written statement of the results of the deliberations, as follows: "After a full and free discussion of the situation it was unanimously determined that the bank should go into voluntary liquidation. It has ample assets, and is prepared to pay its depositors and creditors when they call for their money. The business will be closed up under its present organization in such a way as to avoid the sacrifice of its assets as far as possible, and looking to the best interests of its stockholders." This statement expressed substantially all that Judge Lamb was willing to say. "How soon do you expect to be able to to close up business!" he was asked. "It will probably require considerable time to settle up everything," he replied, "as a good part of the bank's assets are in the form of real estate, and in disposing of this we are determined to make no greater sacrifice than absolutely necessary. The work of closing up, however, will be done as rapidly as possible." When asked for an approximate statement of the bank's assets and liabilities, Judge Lamb replied that while he was not prepared to give any exact figures, he could assure the public the assets would be amply sufficient to meet all indebtness, but the amount of surplus would depend entirely upon what is realized from the sale of the corporation's real estate. All business coming to the First National will hereafter be turned over to the Bank of Com merce, which was organized under a State charter,-in 1836, and is one of the oldest banks in the city. More than two-thirds of its capital stock of $500,000 is owned by Mr. W. C. DePauw, who is one of the largest stockholders in the First National, and its conservative management has won for it unlimited confidence among money depositors. Under its charter the stockbolders are liable to the creditors of the corporation for double the amount of their stock. The First National was organized May 11, 1863. Its capital stock was then $150,000. Wm. H. English was the president, and Dr. Wm. R. Nofsinger was the cashier. It was the first national bank in the State, and it was marvelously successful, dividing among its stockholders in the year of its beginning a profit of 25 per cent. The stock was increased until, at the close of the war, it amounted to $500,000. Dr. Nofsinger was succeeded in 1865, by Jno. C. New, and in 1870 the capital was doubled, but was subsequently reduced onehalf. The bank's prosperity continued through the panic, and large dividends were paid to the stockholders. In 1877, Mr. New became president, but a year later sold a controlling interest to Wm. H. Morrison. The stock was reduced in 1880 to $300,900, and in 1882 the bank was recharted with a capital of $400,000, A. D. Lynch becoming president. In August, 1883, Mr. English again became the president, and E. F. Claypool was elected vice-president. A few months ago Mr. English retired and Mr. Claypool succeeded him. The last published statement of the bank. made on Oct. 7. shows that the aggregate amount of its assets was $1,669,565.33, and the liabilities were $1,077,776.40.

2. November 13, 1886 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, November 13, 1886

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An Abundant Supply of Banking Capital. The closing of the First National Bank has caused some fear among business men that the six remaining banks will not be able to furnish enough capital for the ordinary demands of trade. Mr. V. T. Malott, president of the Indiana National, in speaking of the effect of the First National's suspension, said yesterday that it would not take money out of the city or the banking channels. The money market is now abundantly supplied. Money is easily obtained, and good paper is freely taken.

3. August 3, 1887 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, August 3, 1887

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Items from the Courts. SHOOTER KLOBE ESCAPES PUNISHMENT. John Klobe and John Beecher, who assaulted Mr. Koss, of the firm of Koss & Futz, on Monday night, had a hearing before acting Mayor Feibleman yesterday morning. The firm made no effort to prosecute the men, and there being no one to testify that Klobe fired the shot at Mr. Koss. he was dischared. Beecher was fined for disturbing the peace. ACCUSED HIS NEIGHBOR OF STEALING. Charles A. Webb, a Lawrence county farmer, has been made defendant in two important suits filed in the Superior Court by his neighbor, Abraham Wright. Mr. Wright makes his living by hauling wood to the city and selling it on market. Two weeks ago Mr. Webb accused him of stealing wood from a pile along the roadside near his house and bringing it to the city and selling it. It is alleged by Mr. Wright that Mr. Webb went among his neighbors and told them that he had not only stolen the wood. but had been in the habit of hauling from the pile for several months. Mr. Wright thinks he has been greatly damaged and brings two suits, one for slander and the other for damages. The demand in each case is for $3,000. DECISION IN A BANK SUIT. Ezra Lippincott, by intervening petition in the suit of the First National Bank against Henry Miiligan, receiver, and others, sought to recover a claim against the Shaw Carriage Company, the property of which had been sold for the benefit of the claims held against it by the Indiana Banking Company and Milligan, receiver. This property was among the issues of the suit of the First National Bank against Milligan, as receiver of the old First National. Judge Woods. of the United States Court. yesterday gave a decree that as against the Indiana Banking Company, the First National, No. 2556, is estopped from asserting its claims by force of the tripartite agreement or release of Aug. 11, 1883. A WOMAN'S DIABILITY AS AN INDORSER In the United States Court, yesterday, Judge Woods held, in the case of Stubbings against Roberts, that the plaintiff was entitled to recover on one note of $1,000, but as to the other, for $4,200, he gave judgment for the defendant. In this suit was involved the right of a married woman to become surety, which, in this instance, Mrs. Roberts did by signing the notes of her brother-in-law. On the $1,000 note the Judge said the evidence failed to support the special defense. It was shown that Mrs. Roberts signed and delivered the note. and if ot her names of principal debtors were not signed according to her intention, the fault is attributable to her. In regard to the other note-that for $4,200-the Judge said that Mrs. Roberts had been imposed upon, as the amount of the existing mortgage against the property and the amount of Stubbing's claim were not told to her. Had this been done he believed no sane person would have signed the note. FINED FOR BEATING HIS WIFE'S ESCORT. In the Mayor's court, yesterday morning, Chris Zimmerman and John Sullivan were tried for fighting over the handsome young wife of Mr. Zimmerman. The evidence showed that Mrs. Zimmerman and Mr. Sullivan had been great friends for some time, and in consequence Zimmerman became jealous. Monday evening there was some music and dancing at the house of Mrs. Elma Aikers, and Mrs. Zimmerman and Mr. Sullivan were both there. Mr. Zimmerman had announced that he was going to Chicago, but knowing of the gathering, he concluded to hide in the neighborhood and watch his wife. About 11 o'clock he saw her and Mrs. Aikers leave the house with Mr. Sullivan to go to an ice-cream parlor near by. He then made his presence known, and beat Sullivan until his friends could barely recognize him. The court thought he had no ground for suspecting infidelity on the part of his wife and fined him $25 and costs. Sullivan, who was also arrested, was discharged.

4. March 28, 1888 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, March 28, 1888

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Notes from the Dockets. After being on the dockets of a dozen different courts for nearly a quarter of a. century the suit of Thomas Wren against the city of Indianapolis for damages will be called for trial before a jury in Judge Howe's room nex: week. The long-pending bank case of Milligan, receiver of the First National Bank, against Rand, receiver of the Indiana Banking Company, has been set for trial on April 3, in Judge Howe's court. The case, it is thought, will consume a month's time or more. Arthur Gillette and George Moore, dealers in grain. yesterday instituted attachment proceedings against William Baxter, an Illinois grain merchant, for $75, which they claim is due them from him. They say that several months ago Mr. Baxter drew a draft on them for $750, money for wheat which he was to ship them. When the wheat was shipped, as they alleged it

5. June 1, 1888 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, June 1, 1888

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ISSUES BEFORE THE JUDGES Compromise Effected in the Receivership Suit of Milligan Against Rand. Decree in the United States Court Settling the Claims Against the Old First National Bank-Other Matters of Law. A decree from Judge Woods, of the United States Court, was entered yesterday in the suit of Lippincott against the Shaw Carriage Company, which grew out of the litigation in the Superior Court of this county between Harry J. Milligan, receiver of the First National Bank, No. 55, and Frederick Rand, receiver of the Indiana Banking Company. It was shown to Judge Woods that Receiver Rand had recently written to receiver Milligan as follows: "For the purpose of compromising all matters between the Indiana Banking Company, myself, as receiver thereof, and its several partners, and the bank of which you are reseiver, its stockholders and its creditors, I make the following proposition, viz.: That you may take judgment against me on your intervening petition against me as receiver of the Indiana Banking Company for twenty-five thousand dollars ($25,000), as a preferred claim, and I will at once pay the sum, but out of that sum you must pay your receiver's certificate or note for $6,322.38 to S. A. Fletcher & Co., and which I now hald. I will also assign to you the tax certificates I hold in the Shaw Carriage Company's property. You are to obtain the consent of your court to this settlement, and I the consent of my court to said settlement." The decree allows an acceptance of this compromise, which shall be in full settlement and satisfaction of all matters and things between the litigants. In connection with this proposition Alex. B. Conduitt, Joseph P. Shipp and John M. Gaston, committee for the stockholders of the First National Bank, No. 55, reported that on the 26th of May its successor, the First National, No. 2556, through its president and cashier, proposed to accept for its claim against its predecessor $30,000 in addition to the $15,000 heretofore paid through sale of assets by Harry J. Milligan, receiver. This amount the bank would accept in full payment, satisfaction and discharge of any and all claims held by it against the reselver and stockholders of the First National No. 55. Judge Woods ordered the acceptance of this proposition by Receiver Milligan, whom he directed to apply all the cash now in or that may come into his hands up to and including the 31st of May. To raise funds necessary to earry out this settlement the receiver was ordered to issue on the 31st of May receiver's certificates for sums sufficient to pay and discharge balance of said claim of the First National Bank, No. 2556. The certificates bearing interest at 6 per cent. are to be payable on the 1st day of August, 1888. It was further ordered that all property, real and personal, and all credits and choses in action, including all causes of action against the stockholders of said bank No. 55, and all rights of assessment upon the stockholders shall be retained by the receiver to secure payment, first, of the receiver's certificates including that heretofore issued to the Bank of Commerce, and second. of the liabilities in general of said bank includ expenses of receivership. The rereiver withdraws all exceptions heretofore filed to the report of the master in chancery upon intervening petition of the First National Bank, No. 2556. The committee reported other minor features of adjustment which the.court ordered to be acsepted and then instructed the receiver to enforce payment by suit, or otherwise, of claims against S. W. Elliott, the estate of Thomas M. Bullivan, M. M. Finch, Sarah T. Morrison, Mattie McLane and D. W. Noble. In conelusion it was ordered that parties who held stock in said bank No. 55 at the time of liquidation, excepting receiver and members of the Indiana Banking Company and the estate of W. C. DePauw, shall be released and discharged from any and all liability of any kind growing out of their ownership of stock, whenever they shall pay into the registry of the United States Court, or to the receiver, a sum squal to 60 per cent. of the full or par value of the stock held by each of them. This payment has to be made by July 1, 1888, and moneys heretofore paid to the trustee are to be deemed and treated as a release and discharge in case the moneys so in the hands of the trustee shall be paid out by him as ordered by court upon liabilities of said bank and expenses of the receivership. Yesterday, upon the payment of $25,000 by Receiver Rand to Receiver Milligan, the latter's 3uit against the former was settled in Superior Court No. 2. Receiver Rand is also taxed with tests of suit, which, with the $25,000, are to be paid out of the assets of the Indiana Banking Company.

6. March 8, 1893 The Indiana State Sentinel Indianapolis, IN
Article from The Indiana State Sentinel, March 8, 1893

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AN INDIANA INCIDENT. Senator Voorhees Pays a Compliment to Mr. English. In the course of some remarks recently made by Senator Voorhees on the floor of the U. S. senate in favor of maintaining the one hundred-million-dollar redemp tion fund in the treasury, he paid our fellow citizen, the Hon. William H. English, a high compliment. He said: "It is insisted that we have no need to keep this redemption fund. Credit is a matter of faith and confidence; but there must be something to inspire it. As an illustration of this fact I remember a few years ago the First national bank in Indianapolis was in trouble. It had had a great career under that able and distinguished financier, Wiliiam H. English. He had retired from its management and other had taken charge of it. Embarrassments overtook the bank. Distrust prevailed in every mind. In the midst of the panic Mr. English was seen to appear. He said in substance to the crowd: "I have resumed control of this bank; your money is here Those of you who want your money walk in and get it." The panic and the run on the bank ceased at once. Confidence was restored They believed in the management of Mr. English, and his word was enough. Confidence was restored, and so likewise was credit. Mr. President, if the American people and the world at large believe there is 8 redemption fund of $100,000,000 in the treasury, every dollar of our paper circulation will have full credit; not that the people expect to ask for its redemptionnothing of the kind has ever happened and perhaps never will-but I, at least, ahrink from the idea of separating ourselves entirely from that safe line of policy by which confidence is always inspired.

7. March 26, 1895 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, March 26, 1895

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were unable to pay an exchange account with the First National Bank of this place for $4,500. The assets of the bank are placed at $262,496, with liabilities at $160,298. It is believed that the depositors will be paid in full. The failure to realize on obligations is assigned as the chief cause of the suspension.

8. October 31, 1901 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, October 31, 1901

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was used in paying the soldiers, inasmuch as paper money was more convenient to handle. Greenbacks, being promises of the government, were good, while national bank notes were better, since they were backed by bonds to a greater amount than their face. Paymasters were "as thick as fleas in a dog kennel," as a veteran expresses it, and these men carried large amounts of paper money about the country, frequently traveling by steamers and railroad trains. Now and then a steamboat would catch fire or explode and sink, which, of course, meant the destruction of all paper money on board. In these and countless other ways bank notes amounting in the aggregate to goodly fortunes were forever lost to the business of the country. But the bonds that were originally deposited to secure these notes could not be returned to their owners, in spite of the fact that the notes could never turn up again. Charles M. Robbins, of this city, is interested in this movement, since he is receiver and owner of the remaining assets of the old First National Bank. Mr. Robbins declines to discuss the movement, feigning ignorance of it, but from persons he has talked with it has been learned that he is hopeful of ultimate success for the project. It is known that if such a statute as has been outlined above were to be enacted by Congress, Mr. Robbins would come into an amount of money that would be regarded by the average individual as a snug fortune.

9. January 18, 1906 The Plymouth Tribune Plymouth, IN
Article from The Plymouth Tribune, January 18, 1906

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Sparks from the Wires. A severe earthquake in the Harpoot district. in eastern Turkey was reported in a cablegram received by the American Board of Commissioners for Foreign Missions in Boston. Many are said to have been made homeless and destitute and relief is asked. Manning C. Palmer was convicted of misappropriating the funds of the failed American Exchange National Bank of Syracuse, N. Y., and sentenced to five years in prison. The Importers' National Association closed its offices in New York after an existence of two years. The organization was formed to protect the trade from unjust customs exactions. Murtin Green of Worcester, Mass., who had charge of the Chicago River tunnel plans, has announced his engagement to Mrs. Joseph Sampson, formerly of Chicago and now of Wareham, Mass. The Foreign Misisonary Society of the Christian Church received two Christmas gifts amounting to $16,000 for missions. The names of the men, who gave $10;000 and $6,000, are withheld. Gibson Packer, a former attorney for the Carnegie Steel Company, who was sued by Mrs. Mary L. Vetter, a Pittsburg widow, for $100,000 for breach of prom. ise, filed a plea of no indebtedness. The new school law forbidding the employment of children under 14 in mills, factories and stores, which went into effect in Massachusetts Jan. 1, bars from employment between 4.000 and 5,00€ children. Count von Moltke, nephew of the great commander of that name, will soon become field marshal of the German army. The officers of the Retail Coal Deal ers' Association of Cleveland, indicted on the charge of violating the anti-trust law by conspiring to raise the price of coal, pleaded guilty and were fined $500 each. The fifth trial of the suit of Receiver Stevenson of the Indiana Banking Com pany against John C. New and John C Wright to annul the sale to the latte company of stock of the First National Bank of Indianapolis, has resulted in s verdict for the defendants.

10. May 12, 1928 The Tipton Daily Tribune Tipton, IN
Article from The Tipton Daily Tribune, May 12, 1928

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HEARD Saturday the Tipton Circuit Court's time was taken with up miscellaneous matters including probate, civil and ditch proceedings and Judge Mount also heard arguments of attorneys in the suit of William Rooker vs The First National Bank of Indianapolis, who were making up and getting the case ready trial. Rooker the owner of siderable real estate in Marion and Hamilton counties is suing for the removal of the bank receiver and for an accounting. In the ditch proceedings of Conway and others final report was filed by the superintendent. In the Todd Todd non-resident notice was ordered published some of the parties ing residents of California. An application for guardianship for the minor heirs of New whose death occurred Kempton April filed by the husband, Lewis New. The decedent left personal property valued $750. There are two minor Ruth and Charles The estate of the late Anna Jacobs was ordered settled as solvent, the Farmers Loan Trust Company filing final port showing insufficient funds to pay the debts. The Citizens National Bank, receiver in the case of the dential Insurance Co. Cassius L. Bruce and others was ordered to close out the receivership and file a final report by May 24. The State Bank of Kempton, administrator of the estate the late Francis Jackson filed final report showing balance $126.02 on hand for distribution. In the case of Chase D. Harmon, administrator, against Hazel D. Harmon and others sale of the real estate was ordered and Pleasie Etchison, and Chas. Halfin appointed appraisers. Dr. Woodruff filed final report in the estate of the late Ella Butler.