5957. Discount & Deposit State Bank (Kentland, IN)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
October 13, 1923
Location
Kentland, Indiana (40.770, -87.445)

Metadata

Model
gpt-5-mini
Short Digest
401ce341

Response Measures

Full suspension, Books examined

Other: Receiver appointed; bank closed permanently and in receivership.

Description

Newspaper articles report heavy withdrawals (including $60,000 of state funds) and loss of confidence tied to Governor McCray's financial scandal. Bank closed its doors Oct. 13, 1923 and was placed in receivership later in October (receiver appointed Oct. 24–25). The bank remained in receivership thereafter (liquidation and dividend payments followed).

Events (3)
1. October 13, 1923 Run
Cause
Bank Specific Adverse Info
Cause Details
Withdrawals and loss of confidence triggered by publicity of Gov. McCray's personal financial difficulties and related suits/forgery allegations
Measures
Bank closed for reorganization; temporary/then permanent receiver later appointed
Newspaper Excerpt
the closing of the bank resulted from the withdrawal of deposits, including $60,000 of State money
Source
newspapers
2. October 13, 1923 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension followed heavy withdrawals and alleged insolvency tied to Governor McCray's affairs and alleged preferred treatment / questionable paper
Newspaper Excerpt
The institution closed its doors last Saturday.
Source
newspapers
3. October 25, 1923 Receivership
Newspaper Excerpt
William Darroch yesterday was appointed permanent receiver for the Discount and Deposit State Bank of this city, which closed its doors October 13.
Source
newspapers

Newspaper Articles (17)
1. October 15, 1923 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 15, 1923

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go out and investigate the Governor's financial status, bank by bank?" we knew nothing about embezzlement. we any "Of alleged course, ourselves. If had we would have been stuck Federal investigation of the affairs of the Discount and Deposit State Bank of Kentland will be made "in all probability," Homor Elliott, United States district attorney, said today. Meanwhile, a State investigation is under way of the affairs of the bank, which closed its doors Saturday. Governor McCray formerly was president of the institution. The Governor still was out of the city and persons close to him continued their refusal to tell where ne is. His absence led to persistent rumors that he was dead. "The Governor left Indianapolis at 3 p. m. Saturday," William P. Evans, Marion County prosecutor and son-inlaw of the Governor, said. "I know where he is, but I do not care to tell. He will be back in the city this afternoon." Prosecutor Is Still III Charles W. Moores, special prosecutor in charge of the Marion County grand jury investigation of McCray's affairs, still was confined to his home by illness. At his home it was said he was much better, but that the date for resumption of the grand dury investigation is Indefinite. In connection with the probability of a Federal investigation, Elliott dictated this brief statement "In view of the closin of the bank and the assertions made by some of its present officers in all probability a Federal investigation will be made." "I am not going to say another word about/it," he declared. McCray Paper Cared For The Discount and Deposit State Bank is a Federal reserve depository and as such would come under Federal as well as State jurisdiction. The investigation, if any, is expected to be made by agents working directly under the Department of Justice at Washington. William Darroch, president of the bank, said the situation concerning that institution is unchanged. "I have no idea when the bank will be reopened," he said. Darroch said, when the bank was closed, that it was closed for reorganization. Thomas D. Barr and Elmer Johnson, State bank examiners, are in charge of the investigation of the bank's affairs. The bank had a large amount of McCray paper, but it was understood this was taken care of through the "pool" headed by James P. Goodrich. Twenty-Three Suits, New Total It is, alleged in the bankruptcy petition now pending in Federal Court against McCray that the bank was made a preferred creditor. If the bankruptcy action is successful, it is believed the payment of money to the bank win be declared an act of bank. ruptcy. Under these circumstances the bank is in a position to lose heavily. It is understood the closing of the bank resulted from the withdrawal of deposits, including $60,000 of State money, since that institution became a storm center in the McCray tangle. Two more suits on notes have been filed against McCray at Kentland. One for $10,000 was field by the Delaware County National Bank of Muncie, and one for $3,500 by the Grand View Bank of Grand View. This brings the total of suits to twentythree and the amount involved to $116,000.

2. October 15, 1923 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 15, 1923

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are hard to believe. But the Governor always was a great man to borrow money." As the flivver approaches Kentland a huge grain elevator looms up. On its side are painted in giant letters, "McCray Grain Company." "But McCray isn't connected with it any more," the driver says. As the flivver rattles down Main St. the visitor is impressed with the most pretentious building in the town, a building with a gleaming white front and a clock over the door. It is the Discount and Deposit State Bank. The doors are closed and there is a notice to depositors on the front. "Merchants Panicky," Salesman Says "McCray used to be president of that bank, but he isn't any more," says the driver. At the little Kentland Hotel on Main St. is sitting a disconsolate group of traveling salesmen with their feet on a long, low steam heat radiator. "I'm going to pull out of here," says one. "I haven't sold a bill of goods in the neighborhood. The merchants are panicky. They don't know what is going to happen next or how many McCray's failure is going to affect. "Büsiness is rotten. The trouble isn't confined to Kentland. They feel the same way at Goodland and Brook and all around." The hotel proprietor doesn't share the gloom. "We are making money off of visiting newspaper men," he says. "I didn't know there were so many in the world." Clerk Busy Filing Suits From the big hotel window may be seen the little brick courthouse across the street. There are tennis courts on the lawn and on one corner is a tall flag pole, "a gift of Governor McCray to the town," says the hotel proprietor. Over in that Courthouse activity is noticeable. The county clerk is busy filing suits against McCray and keeping the records straight. The office never did so much business before. At the postoffice, on the street corners, in front of the little movie theater and every place two or more persons gather, McCray's financial failure is the only subject of conversation. It is regarded by the town as a calamity.

3. October 18, 1923 Evening Star Washington, DC
Article from Evening Star, October 18, 1923

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McCRAY BANK SHAKY. KENTLAND, Ind., October 18.Petition for a receiver to take charge of the assets of the Discount and Deposit Bank of this city, of which Gov. McCray was president until recently, has been filed in the Newton circuit court by E. H. Wolcott, state banking commissioner. The bank closed its doors last Saturday. The court set October 24 for a hearing on the petition. The petition alleges that the bank is either insolvent or in danger of becoming insolvent and that the commissioner believes a receiver should be appointed. All the world loves a lover. And all the world hates a hater.

4. October 18, 1923 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 18, 1923

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KENTLAND BANK RECEIVER CASE HEARING OCT.24 Next Step in McCray Money Tangle Is Answer in Federal Suit, Hearing on a suit for a receiver for the Discount and Deposit State Bank of Kentland will be held in the Circuit Court at Kentland next Wednesday. The suit was filed by the State banking department. In the petition for a receiver it is charged the bank either is insolvent or in danger of insolvency. The institution closed its doors last Saturday. Governor McCray resigned as president of the bank recently after the institution had become involved in the Governor's personal affairs. The next step in the McCray financial tangle will be filing of an answer by McCray's attorneys in the bankruptcy suit pending in Federal Court. The answer will be filed with the United States commissioner at Ft. Wayne. The Circuit Court at Kentland will hear suits on notes against McCray Oct. 29, 30 and 31.

5. October 19, 1923 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 19, 1923

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COURT WHEELS TO GRIND AS M'CRAY RETURNS TO CITY Governor's Attorneys Complete Draft of Answer to Bankruptcy Petition. With the expected return of Governor McCray this afternoon from the Governors' conference at West Baden, activity in conection with his financial difficulties was to be resumed. Attorneys for the Governor have completed the draft of their answer to the bankruptcy petition filed in the Federal Court at Ft. Wayne. The answer will be filed Saturday. It is expected the attorneys will ask Judge Albert B. Anderson to hold a separate hearing on the question of whether McCray is a farmer and immune from bankruptcy action. Hearings in the case are expected to be held in Indianapolis. The bankruptcy petition was filed by three Ft. Wayne banks. No opposition to the petition of the State of Indiana for a receiver for the Discount and Deposit State Bank of Kentland is expected. The petition will be heard by the Circuit Court at Kentland, Wednesday.

6. October 24, 1923 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 24, 1923

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William Darroch of Kentland Says Not One Cent of State Funds Ever Reached Institution Formerly Directed by Governor. APPOINTMENT OF PERMANENT RECEIVER IS DELAYED Efforts to Get Payment From Executive Upon Cattle Notes Described-Hearing to Be Continued Thursday, By FELIX F. BRUNER Times Staff Correspondent KENTLAND, Ind., Oct. 24.-Not one cent of funds of the State Board of Agriculture ever reached the Discount and Deposit State Bank of this town, William Darroch, receiver of the bank, declared today. Darroch succeeded Governor McCray as president of the bank and acted in that capacity until it closed its doors recently. Records of the Board of Agriculture show $155,000 was deposited in the bank. Governor McCray contends he borrowed the money personally from the board. "We had only one intimation that money ever was supposed to be deposited here," Darroch said. "That was when I. Newt Brown, secretary of the board, last summer called Cashier Ames D. Morris and told him the board was sending a check for $30,000 to the bank. Brown was told the check would not be honored. It arrived." never

7. October 25, 1923 Evening Star Washington, DC
Article from Evening Star, October 25, 1923

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RECEIVER APPOINTED FOR INDIANA BANK Gov. McCray's Financial Difficulties Ruined Confidence in Institution. By the Associated Press. `KENTLAND, Ind., October 25.-William Darroch yesterday was appointed permanent receiver for the Discount and Deposit State Bank of this city, which closed its doors October 13. The appointment was made by Judge George A. Williams of the Newton circuit court, on application of the state banking department. Mr. Darroch became president of the bank following the resignation of Gov. Warren T. McCray several weeks ago and last week was appointed temporary receiver. The publicity given Gov. McCray's financial difficulties and his connection with the institution resulted in a lack of confidence which forced it to close, according to a statement made by Mr. Darroch when the bank first suspended business.

8. October 27, 1923 The Seattle Star Seattle, WA
Article from The Seattle Star, October 27, 1923

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ruptey petition was filed against the governor by three Fort Wayne, Ind., banks. They charged McCray was insolvent, that he had made proferred creditors of the state of In. diana and of the Discount and Deposit State bank. In a legal reply, McCray contended he was not subject to bankruptcy because he was a farmer. The case still is pending. Shortly afterward the Discount and Deposit bank closed its doors. William Darroch, president of the bank, who succeeded McCray in that capacity, said the action was necessary because of "rotten reports" concerning the bank. An immediate examination was made by the state banking department and a receiver was asked on the ground the instltution was insolvent or in danger of becoming insolvent. The case will be heard in Kentland, October 24. TWENTY-TWO SUITS FILED AGAINST McCRAY Twenty-two suits on notes have been filed against McCray in Kentland. Many of these notes were signed with the names of partnerships in which McCray was a member or with the names of employes of McCray, indorsed by the governor and discounted at banks. In sworn statements three of the men whose names are on notes declared they did not sign them and had given no one authority to sign them. The National Bank of Brownstown (Ind.), filed a suit against the MeyerKiser bank of Indianapolis, in the circuit court here, charging It had bought a note from the Indianapolis bank and that the local institution knew at the time the note had been forged by McCray and that McCray had "embezzied large amounts of money from the state of Indiana and from the Discount and Deposit State bank." This suit is pending. The republican party in the state, as a result of his long series of misfortunes, is trying desperately to "shake" McCray, to relieve Itself of all responsibility for him. He has re. peatedly been advised to resign and he has as often declared he will not resign. He apparently is determined to stay in the statehouse as long as possible, and party leaders admit that with him in the statehouse their chances for success in 1924 are mighty slim.

9. October 27, 1923 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 27, 1923

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McCray said checks he had obtained from the State board of agriculture had been turned over by him to local banks and that credit for him had gone to the Kentland bank through Chicago clearing of houses. the stamp He gave this as explanation of a Chicago bank on the back of one of the board's checks for $25,000, made out here June 27 and received at the Continental and Comercial National Bank at Chicago, June 26. The Gevernor could not explain the discrepancy in the dates. He said it must have been due to a mistake at the Chicago bank, said to be the second largest in the United States. Error on Checks When asked why the board's checks were not made out to him personally instead of to the bank, McCray admitted there was no excuse. He previously admitted the checks had been made out following solicitation of I. Newt Brown, secretary treasurer of the board. "There must have been an error on the part of the board of agriculture in making out the checks to the bank instead of to me," he said. He said the way the checks were written facilitated transfer of the funds to the Kentland Bank. McCray was questioned regarding recent statements by William Darroch, receiver for the bank, in which the latter said, "Not 1 cent of the board of agriculture funds ever reached the Discount and Deposit State Bank." "Of course they did not," McCray said. "They were deposited there to my ow ncredit and did not go to the credit of the bank." No Reason for Doubt. McCray denied he had given the board of agriculture reason to doubt the destination of the funds. He declared the board had a thorough knowledge of the situation. But beyond denying he asked that the checks be made out to the bank instead of himself. he would make no more definite statements. At the Statehouse it was learned McCray made a personal appeal to Brown for some of the board of agriculture's $1,000,000 bond issue, sold for $973,225 last summer, to carry him through an emergency. The board, made out a $30,000 to the through payable Brown, Kentland check insti- for tution. McCray gave a post-dated check and some first mortgage security for the "loan." McCray told Brown not to cash the check until after his (McCray's) return from Camp Knox, Kentucky. In some way the check was presented at a local bank and was turned down because of lack of funds. Brown then called an officer of the Kentland bank by telephone and said he was sending a check for $30,000. Paper Not Honored The officer of the Kentland Bank said the check would not be honored. The entire $155,000, including the $30,000 check, was redeemed with funds from the Goodrich $350,000 pool. The $30,000 check was the last of six that went to McCray from the board. Lawrence Orr, chief examiner of the State board of accounts, issued this statement today: "In order to make clear the situation in regard to examination of State boards, institutions and officers by the State board of accounts, I wish to state that about the \time Governor McCray called his creditors together he called me into his office and requested that examination be made of all departments where State funds are handled. This I am doing as far as possible. "We have examiners checking the auditor's office at this time. Other the offices, including State boards board and in- of agriculture and other stitutions, will be examined as fast as we can get to it."

10. November 13, 1923 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, November 13, 1923

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At the Statehouse a report was current that I. Newt Brown, secretary of the State board of agriculture, had been summoned to appear. Davies and Urbahns, the latter carrying a large package, presumably containing records, went into the grand jury room shortly before 10 a. m., and remained until noon. They reappeared at the afternoon session. Davies Statement Recalled. In connection with the appearance of Davies and Urbahns, it was recalled that Davies made a statement to the Republican State committee Oct. 1 to the effect that a check for $10,000 was given McCray to be deposited to the account of the State in the Discount and Deposit State Bank of Kentland and that the check was deposited to the personal account of McCray. Reports that the jury would go into the financial transactions of the State board of agriculture were current. The board was involved in the McCray tangle when Governor McCray, in answer to a bankruptcy petition, declared he had borrowed $155,000 from it. This was denied by officials of the board, who insisted the money was deposited in the Discount and Deposit Bank. William Darroch, receiver for the bank, later denied any of the money ever had been deposited in the bank. The State board of accounts is planning to go into the books of the board of agriculture which have been closed to public inspection. Charles Ziegler Subpoenaed Among witnesses who are known to have been subpoenaed is Charles Ziegler, chairman of the State highway commission. Ziegler is president of a bank at Attica. It was reported after it became known Ziegler had been subpoenaed that the jury would investigate reports the commission had bought crushed stone from a company in which McCray is interested. Stock in the company was listed in a schedule of McCray's assets filed in the bankruptcy case, but the Governor insisted he had disposed of this stock. Reports also were current that James P. Goodrich, former Governor of Indiana and president of the National City Bank, would be called as a witness. Goodrich headed the "pool" in which $350,000 was collected to meet pressing obligations of the Govert.or. A number of witnesses besides Davies and Urbahns appeared during the morning session. Among those who were seen to go into the room were Felix M. McWhirter, president of the People's State bank; William Fogarty, president of the Fidelity Trust Company, and Clyde E. Robinson, president of the Marion County State bank. Robinson was before the jury Monday. Charles D. Renick, president of the Indiana National Life Insurance Company, Indianapolis, has been appointed receiver for McCray's 740-acre farm in Johnson County. Suit was filed against McCray Oct. 29 by the InterSouthern Life Insurance Company to foreclose a $100,000 mortgage on the property. The farm was bought by McCray from the Service Realty Company of Indianapolis.

11. November 15, 1923 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, November 15, 1923

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# "Assumed a Mortgage" "How did you pay for it?" "I gave $12,000 for it and assumed a mortgage of $3,500." The land was bought by Mr. Williams, my associate out there." "Did you ever see the property?" "No." "What about the tract of 3,700 acres in South Dakota?" "Judge Darroch, my attorney, bought it for me." Judge Darroch is William Darroch, receiver for the Discount and Deposit Bank of Kentland, of which McCray formerly was president. "How did you pay for it?" Vesey asked. "With a check. There is a $49,000 mortgage." "Who holds the mortgage?" Trust Company Has Part "The Deadwood Trust Company has part of it, and a man named Giles has part." "Is that mortgage in the process of foreclosure?" "Some of the interest became due and I believe some of the property is attached." Governor McCray admitted not all of the $80,000 indebtedness of this company was for the business. "Part of the notes were for cattle, part were executed by myself with myself as indorser," he said in answer to questions. "How many of them were for the business? "I can't remember, it was not profitable. I spent $60,000 for improvements in three years. The Governor was then asked about the purchase and operation of farms in Iowa and Minnesota. Questions Insistent Under insistent questioning of Vesey the Governor admitted that the Camby Cattle Company was a concern owned wholly by the Governor and that it had given him notes payable to him and made out by himself. "What was the idea of executing notes of the company to yourself? Was it to sell them?" "Not necessarily. As I said to my creditors in August I felt my responsibility was great and it was my indorsement of notes upon which the banks depended. I was worth many times the notes." "Then no one had any interest in this company except yourself, no such concern existed except in your own mind," Vesey asked. McCray did not answer the question directly. Does Not Remember "Do you remember writing to purchasers of paper of this company saying the company was worth easily $100,000?" Vesey asked. "No." "Is your memory good?" "I think so." "In reality the company owned no property." "Why did you not write your own personal note?" "Because banks want two-name paper. They were in reality interested only in the name of Warren T. McCray and I knew I was worth several times the face of any notes of this kind." Attempts of Vesey to question the witness on the contents of a letter in which McCray is said to have represented the company as worth "easily $100,000," were objected to by James W. Noel, McCray's attorney on the ground that the Governor did not remember writing any such letter. Referee Sheridan sustained this objection. Judge Albert B. Anderson recently, in referring the McCray case to Harry C. Sheridan, master in chancery, denied a motion on behalf of the Governor asking that the inquiry be restricted to the Governor's principal occupation. Anderson's Instructions "In determining this, every activity of life must be taken into consideration," Judge Anderson said. "I do intend to put hobbles on the referee but will give him full scope, just as has been done in every bankruptcy case that has come in this court since I have been here." According to news dispatches from Ft. Wayne attorneys for the petitioners expect to present what they say is newly discovered evidence of acts of bankruptcy committed by the Governor. It was believed that they would take the position that in permitting judgments to be taken against him in several suits at Kentland recently that acts of bankruptcy were committed. Bank Heads Called Among witnesses expected to appear, in addition to the Governor, are James P. Goodrich, former Governor of Indiana and president of the National City Bank; H. M. Moberly, of Shelbyville, president of the State board of agriculture; I. Newt Brown, secretary treasurer of the board; Ross H. Wallace, president of the Aetna Trust and Savings Company; Reily C. Adams, president of the Security Trust Company and J. J. Kiser, vice president of the Meyer-Kiser Bank and a member of the Governor's creditor committee.

12. November 16, 1923 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, November 16, 1923

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ILLNESS OF JUROR HALTS M'CRAY QUIZ Investigation Expected to Be Resumed Monday, The Marion County grand jury investigating financial affairs of Governor McCray did not meet today on account of the illnes of a juror, Frank McNeeley. Special Prosecutor Clarence W. Nichols said the investigation would he resumed Monday. Criminal Court Investigator Claude Worley went to Kentland, Ind., today. It was indicated Worley would get for the grand jury records of the Discount and Deposit State Bank, now in receivership, of which McCray formerly was president. Worley's trip follows appearanace of State Bank Commissioner Eben H. Wolcott before the jury Thursday. Wolcott's department investigated the bank. The jury may not meet again until Monday, Nichols having announced it had been planned to be in session only until noon today and then adjourn over the week-end.

13. November 30, 1923 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, November 30, 1923

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Events have moved rapidly in the financial crash and subsequent investigation of the affairs of Governor Mc Cray. 1 Aug. 30-Meeting of creditors called and McCray announces he will turn over property to creditors. Aug. 31-Creditors meet and appoint temporary committee. Sept. 7-Permanent creditors' committee named and plan for taking over property drafted. Sept. 13-State Savings and Trust Company named trustee for McCray property. Sept. 20-Seven suits filed against McCray at Kentland. Sept. 21-Announcement made Republican State committee will consider attitude toward McCray. Sept. 22-Marion National Bank asks for grand jury investigation of McCray affairs. Oct. 1-Republican committee meets with McCray refusing to attend. No action taken. Oct. 2-John Moorman, friend of McCray, declares President Coolidge was responsible for G. O. P. committee meeting. James P. Goodrich replies. Oct. 3-White House denies President's connection with meeting. Oct. 4-Homer Elliott, United States district attorney. denies Federal investigation is under way. Oct. 5-Grand jury investigation started. Oct. 6-Creditors accept trust agreement. Oct. 8-Grand jury investigation resumed after adjournment over weekend. Oct. 9-Men whose names appear on McCray notes deny Governor had authority to sign them. Oct. 10-Two men whose names appear on notes testify before grand jury. Oct. 13.-The State withdraws $60.000 in deposits and the Discount and Deposit Bank of Kentland, of which McCray was president, is closed. Oct. 15.-Forgery charged in a suit filed here by the Brownstown Loan and Trust Company. Oct. 20.-Governor McCray admits in answer to bankruptcy petition that he borrowed $155,000 from the State board of agriculture. Oct. 22.-I. Newt Brown, secretary of the board, denies McCray borrowed the money, declaring it was to have been deposited in the Kentland bank. Oct. 24.-William Darroch, receiver for the bank, says not one cent of the agriculture board money ever reached that institution. Oct. 29.-Agriculture board meets to discuss McCray loan. Oct. 30.-Grand jury at Noblesville starts investigation. Oct. 31.-Judge James A. Collins of the Criminal Court asks for an appropriation of $5,000 to conduct grand jury investigation here. Nov. 1.-McCray bankruptcy case referred to referee despite protest of Governor's lawyers. Nov. 6.-County council appropriates $5,000 for grand jury investiga-

14. February 28, 1924 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, February 28, 1924

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M'CRAY LAND ATTACHED Kentland Bank Gets $42,358 Judgment Against Governor. All of Governor McCray's land in Chippewa County, Michigan, has been attached by the Discount and Deposit State Bank of Kentland, of which the Governor formerly was president. The bank, in receivership, has closed its doors. The land was seized for judgment of $42,358.11 granted the bank on notes owed by McCray. The land is valued at between $85,000 and $40,000. Opinion was expressed here that judgment could not be executed pending settlement of the bankruptcy case against McCray.

15. March 19, 1924 The Indianapolis Times Indianapolis, IN
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M'CRAY QUERIES STATE TAX-BOARD Cut in Bank Assessment Rouses Auditor, The State board of tax commissioners today considered a request of Gov. eernor McCray asking for information concerning the board's unanimous action last week in reducing the taxation assessment of the defunct Discount and Deposit State Bank of Kentland, of which McCray was formerly president. Assessment of the bank was cut from $95,000 to $3,000 upon petition of William Darroch, receiver. The Governor's request follows receipt of a letter from John G. Davis, Kentland, Newton County auditor, who attacked the board and hinted at its abolition. Davis is McCray's brother-in-law. Philip Zoercher, commissioner, expressed the opinion that since the stockholders following the bank failure had been assessed on their shares, the value was negligible. The assessment was only on furniture and fixtures. Stockholders are liable to the extent of their holdings. McCray owns $28,000 of the $70,000 capital stock. The receiver said a 100 per cent assessment is probable.

16. March 20, 1924 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, March 20, 1924

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# GOVERNOR TO GET # COPY OF LETTERS # IN BANK TAX CASE Davis Praises Board in One Note-Condemns It in in Another. Copies of correspondence and documents in the controversy over the State tax board's reduction of the assessment appraisal of the Discount and Deposit State Bank, Kentland, are to be made and sent to Governor McCray, John J. Brown, chairman, said today. McCray asked information concerning the board's action in cutting the appraisal from $95,000 to $3,000 when he received a protest against the board's action from John G. Davis, Newton County auditor, his brother-in-law. Stock Value Negligible William Darroch, the bank's receiver, had asked the reduction. Appraisal was made on furniture and fixtures alone. Stock value was negligible, Darroch said. McCray was former president of the bank. The correspondence, made public today, showed that Davis, in a letter Feb, 13, 1924, complimented the tax board for "saving" the township (Kentland) $32,099 on three roads, "thanks to a live State tax board." In his protest to the Governor on the reduced appraisal a few days ago he was in favor of abolishing the tax board. Erroneous Statements Concerning Darroch's statement to the tax board asking for a reduction, Darroch wrote to his attorney, N. K. Todd, Ft. Wayne, that Davis and the Newton County treasurer "admit the truth of what the statement shows but they hesitate to sign any papers. "You understand," he said, "campaign year is on and that they are all candidates for re-election and are timid about signing papers." Darroch's statement to the board charged the bank officials made an "erroneous and excessive" appraisal statement to the board March 1, 1923. McCray was president at that time.

17. January 5, 1926 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, January 5, 1926

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FULL RECOVERY IN M'CRAY BANK CRASH IS SEEN Every Cent of $90,000 May Be Paid Back, Hope of Examiners. Prospects are good, several State officials say, for ultimate recovery of every cent of the $90,000 that was on deposit in 1923 in the Discount and Deposit State Bank, defurct Kentland institution of which the Warren T. McCray, former Governor, was president. Foreseeing the impending crash, McCray relinquished the presidency of the bank early in 1923, but kepi the act a secret several months then came the rumbling of his per sonal failure and word of his resig nation. It was more than the tottering house could stand and its doors, shortly thereafter, were closed by officials of the State banking department. Although State officials, at the time, despaired of collecting a cent of the $90,000 deposited in the institution, examiners for the State banking department expressed the hope that some of the money could be recovered. Under management. of the bank by Eben H. Wolcott, former State bank commissioner and Thomas D. Barr, present commissioner, its liabilities are being slowly liquidated and all but $36,000 of the State's deposit has been returned. On Nov. 4, the receiver declared a 10 per cent dividend, which resulted in payment of a $9,000 check to the State, according to records in the office of State Treasurer Ben H. Urbahns. Stockholders in the bank, as provided by law, were its bondsmen. Since failure of the institution one of the stockholders, a wealthy Kentland resident, has died, leaving a large estate. Final settiement of the estate depends on satisfaction of the legal claims of the bank's depositors. The man's heirs, it is understood, are eager to effect a final settlement of the estate and are willing that the bank's claims be given preference. If such a settlement is made it will mean that Indiana will be able soon to retrieve $90,000 it had given up as lost.