5974. Porter County State Bank (Kouts, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
April 11, 1927
Location
Kouts, Indiana (41.317, -87.026)

Metadata

Model
gpt-5-mini
Short Digest
15b61ece

Response Measures

None

Description

The bank was closed by the Indiana state banking department in April 1927 after an audit found gross mismanagement (forgeries and bad loans). A receiver was appointed and the institution remained defunct (reports of receiver actions and a 1932 judgment). No bank run is described in the articles.

Events (2)
1. April 11, 1927 Suspension
Cause
Government Action
Cause Details
Closed by the state banking department after an audit showed the bank's affairs to have been grossly mismanaged (forgeries and bad loans).
Newspaper Excerpt
Receiver to Be Appointed for Kouts Institution, Closed by State Monday
Source
newspapers
2. November 28, 1932 Receivership
Newspaper Excerpt
judgment in the sum of $7,418.17 was entered ... by Edward M. O'Brien, of Kouts, receiver for the defunct Porter County State Bank of Kouts ... The Kouts bank closed its doors in April, 1927. when an audit by examiners for the state showed the bank's affairs to have been grossly mismanaged. Resources of over $200,000 dwindled by reason of forgeries and bad loans so that only small amount was realized. One dividend of five per cent, was paid.
Source
newspapers

Newspaper Articles (2)
1. April 14, 1927 Evansville Courier and Press Evansville, IN
Article from Evansville Courier and Press, April 14, 1927

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Article Text

CASHIER CHARGED WITH BANK THEFT Receiver to Be Appointed for Kouts Institution, Closed by State Monday VALPARAISO, April of were filed today against Charles H. cashier and director of the Porter county state bank of Kouts, closed Monday by the state banking department, simultaneously with filing of application for receiver to take charge of the institution's Deputy Prosecutor Ira C. Tilton. filed the affidavit against Cannon, declared he expected sufficient evidence would be gained to cause of warrant against person connected with the Cannon is charged with borrowing from the bank on his personal note directors. also alleged he submitted to the state banking department which he asserted was due from North Judson bank, whereas the latter bank's records showed only $5 on appointment of refor the bank will be held April Directors the today they to effect reorganization. patrons of local upon complaint to police authorities that delivery had not been made certain purchases made and paid for in advance, found themselves without legal "Purchasers of they were "have They not come into court with clean hands.

2. November 28, 1932 Vidette-Messenger of Porter County Valparaiso, IN
Article from Vidette-Messenger of Porter County, November 28, 1932

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Article Text

NEW BRITISH NOTE DRAFTED DEBT ENTER JUDGMENT BY HENRY T. RUSSELL BY KOUTS BANK RECEIVER (United Press Staff Correspondent) LONDON, Nov. new British war debt note, drafted over the week-end, was expected today to claim that if the United States insisted on payment of the $95,000,000 December installment there would be world financial repercussions. The question of payment or fault would remain unsettled the by (Continued on page 3, column Judgment in the sum of $7,418.17 was entered this afternoon in Porter circuit court by Judge Grant Crumpacker in favor of Edward M. O'Brien, of Kouts, receiver for the defunct Porter County State Bank of Kouts, against Thomas L. Applegate, former receiver, and the United States Fidelity and Guaranty Company, of Baltimore, Md. The judgment against the defendants represents money belonging to the Kouts bank which was on deposit in the Valparaiso National Bank when it closed on January 11 last. Mr. Applegate, as former receiver of the bank, was held accountable for the amount by Judge Crumpacker when It was shown that the money had been in the bank for nearly year and the receiver had failed to make report to the court after having been notified to do The Kouts bank closed its doors in April, 1927. when an audit by examiners for the state showed the bank's affairs to have been grossly mismanaged. Resources of over $200,000 dwindled by reason of forgeries and bad loans so that only small amount was realized. One dividend of five per cent, was paid. Edward Ryan, of this city, was attorney for Receiver O'Brien, and John P. Crumpacker, of this city, was counsel for the defendants.