5977. La Porte Savings Bank (LaPorte, IN)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
savings bank
Start Date
December 25, 1884
Location
LaPorte, Indiana (41.611, -86.723)

Metadata

Model
gpt-5-mini
Short Digest
05d7c8f8

Response Measures

None

Description

The bank was placed in the hands of a receiver by action of the state auditor/court after the cashier reported trustees' illegal borrowing. No run or depositor panic is described. Receiver reported assets exceeded liabilities and court authorized resumption of business on 1885-02-05.

Events (3)
1. December 25, 1884 Receivership
Newspaper Excerpt
was placed in charge of a receiver, Seth Easton. The assets are about $190,000; liabilities $15,000 less. John Sutherland, president, says the depositors will be paid in full.
Source
newspapers
2. December 25, 1884 Suspension
Cause
Government Action
Cause Details
State Auditor examined the bank, determined there was no legal board of trustees (trustees had borrowed from the bank in violation of law), and applied to court which placed the bank in receivership.
Newspaper Excerpt
The LaPorte Savings Bank closed its doors and was placed in charge of a receiver, Seth Easton.
Source
newspapers
3. February 5, 1885 Reopening
Newspaper Excerpt
Judge Noyes Authorizes the LaPorte Savings Bank to Resume Business. ... Seth Easton, receiver ... reported its assets ... $9,000 in excess of its liabilities. ... Business will be resumed on next Monday.
Source
newspapers

Newspaper Articles (14)
1. December 26, 1884 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, December 26, 1884

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Article Text

A SAVINGS BANK SUSPENDS. A LaPorte Institution Closes Its Doors, and a Receiver Takes Charge. The Assets Said To Be Ample, and Depositors Will Be Paid in Full-Some Peculiar Features of the Suspension. Special to the Indianapolis Journal. LAPORTE, Dec. 25.-The LaPorte Savings Bank closed its doors last evening, and was placed in charge of a receiver-Seth Eastonafter & fourteen years' existence. The assets are about $190,000; liabilities. $15,000 less. President John Sutherland gives assurance that depositors will be paid in full. Jacob Vining was the cashier, and, it is charged, caused the suspension by reporting to the Auditor of State some transactions wherein they had not strictly complied with the State law, his reason for SO doing being his intended removal by the directors.

2. December 26, 1884 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, December 26, 1884

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Article Text

Bank Closed. LA PORTE, Ind., Dec. 25.-The La Porte Savings bank has closed its doors and has been placed in charge of a receiver, Seth Easton. The assets are about $90,000; liabilities $15,000 lesss John Sutherland, president, says the depositors will be paid in full. It is charged Jacob Vining, the cashier, caused the suspension by reporting to the auditor of state some transactions wherein the bank had not strictly complied with the state law, his reasons for so doing being his intended removal by the directors.

3. December 26, 1884 Evening Star Washington, DC
Article from Evening Star, December 26, 1884

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Article Text

News Briefs. Men from Wilmot, Dakota, attacked District Attorney Lane's residence Wednesday night, near that city, with the intention of lynching him, but he was absent from home. Miles Ogle, a noted counterfeiter, was arrested at Memphis, Tenn., yesterday. He had about $10,000 in $10 counterfeit notes on his person when arrested. Mr. James B. Thomas, superintendent of the Consolidation coal company, died at his home, to Frostburg. Md., on Wednesday. A cry of "fire" caused a panic in Bunnell's museum. New Haven, Conn., yesterday. Several persons were injured in the rush to escape from the building. The North German Gazette, of Berlin, has an official note advising the abandonment of the scheme to raise a public fund to pay for an assistant for Prince Bismarck. In an interview in London a ynamiter is reported as saying that the headquarters of the conspirators IS in Paris, but that the funds come from America. Lawrence S. Kane, the financial editor of the New York Times, died Wednesday. Warrants are out for the arrest of Chas. E. Stephens, cashier of the Chicago, Wilmington and Vermittion coal company, who has been missing since last Friday, and is reported to be short in his accounts $20,000. The breach-of-promise suit of Miss Sallie Kimmel against Daniel E. Boyer was concluded at Pottsville, Pa., Wednesday, with a verdict of $3,000 damages for the plaintiff. Rev. Dents O'Donovan, ex-pastor of the Catholic church at Bloomsburgh, Ind., has brought suit against Father Herman Aldering, of Indianapolis, for $50,000 for libel. The official vote for delegate in Dakota is: GIIford, republican, 71,579; Wilson, democrat, 15,124; scattering, 61. An aeronaut named MacNeal, halling from Mobile, attempted a balloon ascension at West Point, Ala, yesterday. His balloon landed in the Chattahoochie river and he was drowned. Dr. Richard C. Brandeis, a well-known New York physician, has been missing from his home since last Monday evening. The Laporte, Ind., savings bank closed its doors and has been placed in charge of a receiver. The job printing office or White & Graham, Baltimore, was burned yesterday; loss, $10,000. The iron ship Lornty. bound to Bombay with a full cargo, while at anchor in New York harbor was sunk by the steamer Cornwall. The officers and crew were saved.

4. December 26, 1884 St. Paul Daily Globe Saint Paul, MN
Article from St. Paul Daily Globe, December 26, 1884

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Article Text

Bank Closed. LA PORTE, Ind., Dec. 25.-The La Porte Savings bank has closed its doors and has been placed in charge of a receiver, Seth Easton. The assets are about $90,000; liabilities $15,000 lesss John Sutherland, president, says the depositors will be paid in full. It is charged Jacob Vining, the cashier, caused the suspension by reporting to the auditor of state some transactions wherein the bank had not strictly complied with the state law, his reasons for 80 doing being his intended removal by the directors.

5. December 26, 1884 The Dallas Daily Herald Dallas, TX
Article from The Dallas Daily Herald, December 26, 1884

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Article Text

Failures. AN INDIANA BANK. INDIANAPOLIS, Dec. 25.-The Journal's Laporte special says: The Laporte Sav ings bank closed doors yesterday and was placed in charge of Receiver Seth Easton. The assets are about $90,000; liabilities, $15,000 less. John Sutherland, the president, says depositors will be paid in full. It is "harged that Jacob Vining, cashier, caused the suspension by reporting to the auditor of state some transactions wherein the bank had not strictly complied with the state laws, his reason for 80 doing being his intended removal by the directors.

6. December 27, 1884 Sacramento Daily Record-Union Sacramento, CA
Article from Sacramento Daily Record-Union, December 27, 1884

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NEWS. THURSDAY'S FROM SPECIAL [CONDENSED DISPATCHES.] Domestic. and California Veterans' Home will prob- sunk ably The be made a national home. into by bor Thursday. The the ship steamer Loenty Cornwall was run in New York harnew Hawaiian treaty It is SO proposed as to make to amend it more the favorable to Agent at the United States. United States of Express $2,000 W. C. Panora, Harvey, Ia., was robbed protesting chartered on Wednesday night. against the passage priviof the bill Union Pacific is leges A petition of the signed extending in Iowa. the being defeated nilmerously At Chicago Woodside Thursday in a J.S. fifteen-mile of Prince America bicycle by only race for one-quarter has of a taken second. up the W. M. the Vest championship of printing, cudgels by against Senator speeches the abused not privilege late delivered, Senator as Anthony, a sort of leave, practice. of legacy intensely from the opposed to the Bank has who was Porte (Ind.) Savings placed in charge The its La doors and been are about of liabilities a $15,000 says the depositors will closed in President, receiver. The less. assets John Sutherland, Railroad $90,000, be paid full. the case of the Central the heirs Pacific of Silas (Oregon involving branch) lands in of the Interior In vs. Shasta district, Wol- has in favor of Wolford. California. sustained ford, the the decision Secretary of the Land Office theatrical There has been & a Dickson row in of the New exist under York, firm of Brooks cease to Union the firm Of will the soon stories creditor told on is at bottom of Muller, the alias John at St. Mary's, Tepper, Otto college safe was captured and Square, that robbed name. the one is trouble. that night, some board- Kan- who the in last Tuesday as he was ing the was recovered. on sas, Lawrence, train Ks., for Thursday, the East. Over $1,000 Henni- of money five-story brick avenues building Minneapolis. of pin and as offices, the and also Bar library of Thursday of the occupied the The law Washington burned Minneapolisternoon. the $150,000. rooms As- of sociation, were $200,000; insurance, that part Gould Grievance of Locomotive system are The The Brotherhood loss 1S Committee Engineers session, still operating the York, over and the presumably their business in or who the but as to the aim to achieve, know, and newsin their of this in result New they nature confidence of number. only those arrested G. paper are men are not counterfeiter, was by M. Bauer, of Memphis, of the United States in $10 counterfeits in Ogle, a noted Tenn., dollars Thursday, Secret Cincinnati Service. Three National Ogle on the thousand Third on his Bank person. terms in the peni- has already were served in New several York, Ohio and tentiaries vania found counterfeiting. Pacific blockaded deny Pennsyl- the Officers for of the Northern that the road is ordered to and published that all mails San Francisco. have the They Oregon state Portland blockade has via report is Company's been on lines, St. Paul and been that continuously the open and trains have that Railway Wallulu the snow and Junction, Navigation Northern Pacific from is and agitated been to regularly. telegraph circles of are a new it and is New York the formation which, by reports the early part running powerful telegraph of during syndicate. opposition to the of stated, will enter actively into Mackay of the the Western Company Ohio, Robert and James of the Bankthe Postal new year Union. John W. Garrett Gordon of Bennett Baltimore and and the bondholders Company, the enterprise. are said to ers' moving rented O. Towner, on from the be Governor the and Merchants Cleveland spirits J. in has months, the Willett residence street, Albany, of Mrs. for After two his resignation, will attend on a 1st of January. for the the 6th of ball January, in Buffalo, of Cleveland given which he laid of benefit that the of charity corner-stone an institution while return he to was Albany March, Mayor and who reside city. house accompanie He Towner will Washington, until will be in will the go to Miss Cleveland, who lady his sister, of the White House.

7. December 27, 1884 Savannah Morning News Savannah, GA
Article from Savannah Morning News, December 27, 1884

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FAILURE OF AN INDIANA BANK. LAPORTE, IND., Dec. 26.-The La Porte Savings Bank ha- closed its doors and has been placed in charge of Receiver Seth Easton. The assets are about $90,000 and the liabilities $15,000 less. John Sutherland, the President, says that depositors will be paid in full. It is charged that Jacob Vining, the cashier, caused the suspension by reporting to the Auditor of the State some transaction wherein the bank had not strictly complied with the State law, his reason for so doing being his intended removal by the directors. The suspension of the Laporte Savings Bank was brought about by a quarrel between the cashier and the trustees, who wished to get rid of him at the next election. Under the law the trustees were not permitted to borrow from the bank, such an act on their part entailing the vacation of their offices. The cashier knew that this had been done, and made complaint to the State Auditor, which resulted in the suspension. The cashier's statement shows assets of $50.000 in excess of the liabilities.

8. December 27, 1884 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, December 27, 1884

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Article Text

A Bank Cashier's Revenge. INDIANAPOLIS, IND., December 26.-The Journal's Laporte special says: The Laporte Savings Bank closed its doors and was placed in charge of Receiver Seth Easton. The assets are about $190,000 liabilities $15,000 less. John Sutherland, President, says the depositors will be paid in full. It is charged that Jacob Vining, Cashier, caused the suspension by reporting to the Auditor of the State some transactions wherein the bank had not strictly complied with the State law, his reason for so doing being his intended removal by the Directors.

9. December 27, 1884 Wheeling Register Wheeling, WV
Article from Wheeling Register, December 27, 1884

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The Broken Laporte Bank. INDIANAPOLIS December 26.-The Journal's Laporte special says: The Laporte Savings Bank closed its doors and was placed in charge of Receiver Seth Easton. The assets are about $190,000 and the liabilities $15,000 less. John Southerland, the president, says depositors will be paid in full. It is charged that Jacob Vining, the cashier, caused the suspension by reporting to the Auditor of State some transaction wherein the bank had not strictly complied with the State law, his reason for so doing being his intended removal by the directors.

10. December 27, 1884 National Republican Washington, DC
Article from National Republican, December 27, 1884

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A. Bank Cashier's Revenge. CHICAGO, Dec. 26.-The Daily News Laporte (Ind.) special says that the suspension of the Laporte Savings bank was brought about by a quarrel between the cashier and the trustees, who wished to get rid of him at the next election. Under the law the trustees were not permitted to borrow from the bank, such an act on their part entailing a vacation of their offices. The cashier knew that this had been done, and made a complaint to the state auditor, which resulted in the suspension. The cashier's statement shows assets $50,000 in excess of liabilities.

11. December 27, 1884 Sacramento Daily Record-Union Sacramento, CA
Article from Sacramento Daily Record-Union, December 27, 1884

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THIS MORNING'S NEWS. In New York yesterday Government bonds were quoted at 1223/3 for 4s of 1907; 1123/4 for 41/28; sterling, $1 811/2@4 851/2; 1011/4 for 3s; silver bars, 107%. Silver in London, 491/2d; consols, 99 13-16d; 5 per cent. United States bonds, extended, 105; 4s, 125½; 41/28, 116½. In San Francisco Mexican dollars are quoted at 86%4@87 cents. The general tone of the market was weaker in San Francisco yesterday. Hale & Norcross was suddenly depressed to $3 75, with sales of only 800 shares. Chollar dropped to $2 55, and Savage to $1 70. The north-end stocks were best sustained. As a rule, the outside stocks were steady and firm. In Frisco, Utah, John Galvin shot and fatally wounded John Thomas. The roof of Small's Opera House, at Walla Walla. W. T., fell in Wednesday, killing William Glasgow. No mail has been received at Walla Walla from Oregon or California in twelve days. Mrs. Stockslager shot herself through the head in Yreka yesterday morning, on account of domestic trouble. An oil fire near Elmira, N. Y., yesterday, caused a loss of $100,000. Thomas Van Valin died in Syracuse, N. Y., Thursday, aged 104 years and 11 months. The steamer Vint Shinkle was burned to the water's edge at Columbus, Ky., Thursday. Several shocks of earthquake occurred in Spain yesterday, and two persons were killed by falling walls. The Orange demonstration at Harbor Grace. N. F., yesterday, passed off without disturbance. Two train robbers were sentenced at Little Rock. Ark., yesterday-one to seven and the other to six years in the Penitentiary. Eleven coal-laden barges foundered off the Connecticut coast Thursday night, and were lost. Jay Gould's income averages $6,000,000 a year. Sleighing is good in New York city. Joseph Francis, the famous inventor, aged 84, WAS badly hurt in New York by a fall on the iceAt a Christmas meeting in Leicester, Eng., 2,000 septuagenarians were present. John Bagley. aged 72, hanged himself in Salt Lake yesterday. Mrs. Catherine E. Campbell, aged 64, was accidentally shot and killed in Stockton Thursday by John Wilson. Natural gas is taking the place of coal as fuel in Pittsburg and vicinity. The views of Secretary Frelinghuysen regarding the Spanish treaty are given this morning in our telegraphic columns. The defaulting manager of a bank at Laybach, Austria, killed himself yesterday when about to be arrested. Bandits in Galicia burned a priest to death, because he had no money. A Madrid dispatch announces that Don Carlos is in Bombay. Ogle, a noted counterfeiter, has been arrested at Memphis, Tenn. Fire at Minneapolis, Minn.: loss, $200,000. The La Porte (Ind.) Savings Bank closed its doors yesterday. Eighty-five thousand Chinese troops, under Li Hung Chang, are massed at Peiho. The liabilities of the suspended Bohemian Land Credit Company are 23,000,000 florins. The young readers of the RECORD-UNION will find an exceedingly interesting Christmas story in to-day's issue.

12. December 27, 1884 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, December 27, 1884

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LAPORTE'S SUSPENDED BANK The Depositors Feel Satisfied that They Will Receive Their Money. A Statement from Cashier Vining-Condition of the Bank at Last ExaminationA Talk with State Auditor Rice. Special to the Indianapolis Journal. LAPORTE, Ind., Dec. 26.-The suspension of the LaPorte Savings Bank has caused but little anxiety among depositors, who are assured that their deposits will be paid in full. Your correspondent interviewed Jacob Vining, the cashier, this afternoon, and he admitted that the published statement of Bank Examiner Bingham, in this morning's Journal, was correct. Mr. Vining submitted the following statement: "To the Patrons of the LaPorte Savings Bank: "The Auditor of State, on yesterday and the day before, made an examination into the present organization and condition of the bank. He came to the conclusion that there was no legal board of trustees to manage its affairs. A petition was signed by the requisite number of depositors for the court to appoint a new board. As this required some time, he then, under the law, applied to the court, and the bank was placed in the hands of a temporary receiver, to await the action of the court, and I have delivered the property over to him. The condition of the bank, as shown by the latest examination, is as follows: Total resources $194,395.58 Liabilities-$178,865.36 Due depositors $15,530.22 Surplus "It will be seen from the assets that all will be paid in full, and the bank have a surplus. if its affairs are prudently managed, so that, in any event, 1 believe depositors may rest easy. It is believed that the receivership will only be temJ. H. VINING, Cashier." porary. Personally, Mr. Vining is unpopular, and owing to his peculiar, and at times, unaccomdating business methods. complaints, to the trustees were many, and they have for some time desired to displace him. His peculiar conduct during the late campaign, in opposing Major Calkins and writing letters to State papers against his character, incensed the trustees and depositors, and they resolved to elect a new cashier at the next election of officers. Vining knew this, and to prevent his removal caused the appointment of a receiver by divulging the fact that the trustees had borrowed money of the bank, contrary to the State law. Experts are going over the books and securities with the trustees, and will make a complete statement in a few days. The officers are: President, John Sutherland; vice-presidents, Benajah Stanton and T. W. Butterworth; cashier, J. H. Vining; trustees, John Sutherland, B. Stanton, F. Baumgartner, T. W. Butterworth, E. W. Davis, S. Crumpacker and James Buck.

13. December 27, 1884 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, December 27, 1884

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What Auditor Rice Says. James H. Rice, Auditor of State, returned yesterday from LaPorte, where he went to look into the affairs of the LaPorte Savings Bank, which has passed into the hands of a receiver. "The condition of the bank's finances," Mr. Rice stated to a Journal reporter, "is good, and the depositors will, I think, receive their money in full. Its investments, so far as known, are all good, and there will be no losses. In the fourteen years that the bank has been doing business the bad paper that has fallen into its hands has amounted to only $1,800, and some money has been realized from it. The business was carefully and economically managed. Vining, the cashier, aided by his daughter, did all the work for $1,500 per year. The closing of the bank was precipitated by discoveries growing out of trouble between the trustees and cashier, which were called to the attention of the State Auditor by the latter, who was about to be removed from his position. All of the trustees, with the ex ception of one, had, doubtless unintentionally, violated the law by borrowing money from the bank in small sums, which, under the operation of the statutes, deprived them from legally holding their positions as trustees. Vining hoped to secure his retention as cashier by having the vacancies filled by men who were his friends. "The condition in which I found affairs,' Auditor Rice says, "was very perplexing to me. I called on the circuit judge and requested him to appoint trustees to fill the places of those who had violated the law. He consented to do so, but said it would probably require four or five days' time to find acceptable men who would be willing to take the trusts. I feared that if the doors of the bank were closed it would precipitate a panic, and yet, if I allowed the illegal trustees to continue the management of the bank's affairs I would be making myself liable for a transgression of my lawful duties. The only thing left for me to do was to apply for the immediate appointment of a receiver. Seth Easton, the man who was anpointed, is a wealthy citizen of LaPorte, in whom everybody there has the most implicit confidence. He accepted the trust only because it was urged upon him as a necessity. He is regarded in LaPorte about like W. C. DePauw or Wm. H. English is here. He gave a bond, within twenty minutes, for $390,000, while the assets are only about one-half that amount."

14. February 6, 1885 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, February 6, 1885

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INDIANA AND ILLINOIS NEWS Judge Noyes Authorizes the LaPorte Savings Bank to Resume Business. A Damage Suit Which Will Attract More Than Usual Attention-Illinois Republicans Renominate Senator Logan-Gleanings. INDIANA. The LaPorte Savings Bank Comes Out All Right, and Will Resume Business. Special to tue Indianapolis Journal. LAPORTE, Feb. 5.-Seth Easton, receiver of the LtPorte Savings Bank, which suspended on Dec. 24, reported its assets to the Circuit Court, to-day, to be $187,000, which is $9,000 in excess of its liabilities. Judge Noyes thereupon reappointed the emire old board of trustees. The board met and elected Benajah Stanton president and J. W. Crumpacker, cashier of the Hobart, Ind., bank as cashier. Business will be resumed on next Monday. It will be remembered that, through business and political unpopularity, the trustees desired to remove the old cashier. Jacob Vining, and, to prevent it, Vining precipitated the suspension by reporting to the State Auditor some legal inaccurneies of the trustees. Vining appeared in court with his lawyer and endeavored to have the affairs of the bank wound up by the receiver, but the judge rebuked him, and did as above. Vining says he will start another bank.