5993. First National Bank of La Grange (Lagrange, IN)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Start Date
October 24, 1927
Location
Lagrange, Indiana (41.642, -85.417)

Metadata

Model
gpt-5-mini
Short Digest
f50e4660

Response Measures

Full suspension, Books examined

Other: Federal Department of Justice investigation and subsequent indictments of bank officers (Dec 1927–Apr 1928).

Description

Contemporary articles report a run that depleted reserves and precipitated closure on Oct. 24, 1927. Federal examiner J. F. Utt closed the bank and became temporary receiver after discovery of about $75,000–$76,000 in forged paper and alleged misappropriation by officers; indictments thereafter. The bank did not reopen and federal receivership proceeded.

Events (5)

1. October 24, 1927 Receivership
Newspaper Excerpt
J. F. Utt, Federal bank examiner, who served as temporary receiver after Department of Justice agents uncovered the alleged loss. Utt took charge after a run on the bank.
Source
newspapers
2. October 24, 1927 Run
Cause
Bank Specific Adverse Info
Cause Details
Depositors withdrew after undisclosed problems; later examiners found $75,000–$76,000 in forged paper and alleged misappropriation by officers.
Newspaper Excerpt
Its reserves depleted by a run, the bank closed its doors yesterday.
Source
newspapers
3. October 24, 1927 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closure followed discovery of large amount of forged paper and alleged conversion of funds by officers; federal examiner appointed temporary receiver.
Newspaper Excerpt
The bank was closed Oct. 24, 1927, by Utt, Federal Bank Examiner, as temporary receiver, after Department of Justice called by him had found $75,000 in forged paper.
Source
newspapers
4. December 31, 1927 Other
Newspaper Excerpt
Final report of the Federal grand jury on its investigation of the failure of the First National Bank of La Grange... investigating closing of the bank after the finding of $76,000 in alleged forged paper, and the connection with the failure, if any, of Clyde A. Walb ... was expected to be made to Judge Robert G. Baltzell today.
Source
newspapers
5. April 21, 1928 Other
Newspaper Excerpt
Trial of Clyde A. Walb ... and Valentine Weaver ... for failure of the institution, will open in Federal Court here Monday. ... The forged paper in the bank at the time it was closed was said to have totalled $76,000.
Source
newspapers

Newspaper Articles (8)

Article from The Indianapolis Times, October 25, 1927

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LA GRANGE MAY REOPEN BANK Walb Denies Loan Rumors: Sale Talk Rife. Bill United Press LA GRANGE, Oct. 25.-Reopening of the First National Bank of La Grange within a few days was predicted by officials of the institution today. Its reserves depleted by a "run," the bank closed its doors yesterday. Negotiations 'also have been opened for sale of the bank to Samuel J. Jacobs, New York financier, owner of the Noble County Bank. Jacobs was expected to reach Kendallville, his former home, today or tomorrow. Clyde A. Walb, Republican State chairman who resigned as a vice president, a few weeks ago, denied that "excessive loans" had been made to him. He said his borrowings from the bank would not exceed $10,000. John P. Caton was elected to take his place and became acting president as result of resignation of Valentine Weaver. The bank had $600,000 in deposits and had been established for sixty years.


Article from The Indianapolis Times, December 30, 1927

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JURY NEAR END OF BANK PROBE No. 3 Head-See Puzzle Baltzell May Get Findings of Group Today. Final report of the Federal grand jury on its investigation of the failure of the First National Bank of La Grange was expected to be made to Judge Robert G. Baltzell today. The grand jury has been investigating closing of the bank after the finding of $76,000 in alleged forged paper, and the connection with the failure, if any, of Clyde A. Walb, Republican State chairman and former bank vice president. A part of the forged paper is alleged to have been used to cover overdrafts of the Walb Construction Company of La Grange, of which Walb is president. Ledgers and papers of the defunct bank and Walb's company were perused today. Oscar E. Ross, Indianapolis, certified public accountant, who audited Walb's books until 1923, and Clyde Larue, Muncie, another certified accountant, who succeeded Ross in making Walb's audits, were called upon for explanations of their records. Other witnesses today included John F. Utt, national bank examiner and temporary receiver for the La Grange bank; H. E. Laufer and Glenn E. Paulsen, examiner for the Department of Justice. Walb Construction Company employes, bank employes and Federal accountants went before the grand jurors Thursday. Neither Walb, nor Valentine D. Weaver, former president of the bank, appeared as a witness.


Article from The Cincinnati Enquirer, January 1, 1928

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INDICTMENT Of Indiana as Violator of National Bank Act. D. Weaver Accused With Clyde Walb As Conspirator To Use Money Wrongfully. La Grange Institution Closed as Result Of Misappropriation, Is Grand Jury Charge. County Inquisitors Keep Secret Their Victim Until Arrest, But Recommend Contempt Citations. Indictments charging violation of the national banking laws and acy to violate the same were turned today against Clyde Walb, and Valentine Weaver, of Lagrange, in Federal Court. Chairman of the State Central Republican Weaver served President of the defunct First National Bank of grange June, 1927, while Walb its Vice President. Walb also is President of the Walb Construction was set for January Federal Judge Robert Baltzell. Both men are charged violations the closing of National Bank The counts. charge Walb and Weaver with The others charge specific violations banking which Weaver pictured the petrator, the TAKEN, TIS SAID. Thousands funds were appropriated by the duo, according the indictment, for himself and Walb for himself and the Walb Construction Sale of preferred of the Construction Company stopped recently by the State Securities Commission because the company sound. The indictment specifically charges his business account. covered up for him honoring the checks and entering credits to Walb's accounts whether the Chairman made posits or not, alleged. Among typical overt acts listed the indictment June 1923. Walb signed check for $306 without funds in the June 28, 1928, Weaver credited $6,000 accounts. June 1926, Weaver forged the name of Tobias Yoder to note for WHEW! 99 CHECKS. February Walb checks upon his personal account, taling when his account would cover them. The same day Weaver credited Walb's account with March Walb overdrew his account $4,601. Sixty. such overt listed under the two conspiracy counts, with Walb charged with having shettey overt of Weaver The bank was closed October 24, 1927. by Utt, Federal Bank Examiner, as temporary receiver, after Department of Justice called by him had found $75,000 forged paper. Utt took charge after run on bank. Depositors probably will be paid in full, examiners INDICTMENT IS SECRET. After returning one indictment recommending that three persons cited for contempt of court, the rion County Grand made its final report of six months' investigation today and urged all citizens to sume the responsibility their citi zenship and vote elections. The name of the person indicted novaced that man not and that the charges were to false affi Those the jury would for contempt Kiplinger, Rushville Mildred former of C. Evanaville,


Article from The Baltimore Sun, January 1, 1928

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SEAS HALT SEARCH BODIES IN Weather Permitting, Divers Will Remove Dead Today. EIGHT WORK ON HULL Victims' Families To Receive No More Than Months' Pay, Is Revealed. Provincetown, Mass., Dec Rough and threat of storm forced suspension salvage operations on the S-4 late today, after everything was prepared for removing engine hatch entering the hull quest bodies. believed that of the forty who perished the S-4 went down were in the engine room. Weather permitting, divers will that compartment tomorrow and remove the bodies. calm sea will necessary before this can done because the danger divers working inside the bull. The menace the divers illustrated today when for the third time since salvage opera tions began had to be assisted the surface comrade. Eight Work On Hull. Eight divers worked the hull. LEADERS gratings over the engine room and motor hatches moved. with the object of getting air out of these two compartments Chairman And Com- fore an attempt made to raise the wreck. under which three lines already mitteeman Charged With passed. The engine-room Fraud. hatch will next be removed to allow divers enter. The diver who was in difficulties STATE INQUIRY ENDS Bradford Bedford, his first descent. When he reported he distress, the veteran "Bill" Carr went County Grand Jury Questions his assistance. After the rescue, Senator Watson In Alleged Po- Carr on with his work. litical Corruption. Indianapolis, Dec. 31 ing back New Year's Day six years to lay the foundation its the Federal grand jury day lodged charges conspiracy violate banking laws against Clyde chairman the Republican State and Valentine Weaver, of the Republican State Committee, former presithe defunet. First National Bank of La Grange. Jury Ends Probe. In the State court, the Marion grand jury ended its inquiry alleged political corruption Indiana by returning indictment against unannounced person. The forty-page indictment against and of alleged overt The first that fraudulently misapplied funds of the bank and falsely entered forged credits for the benefit Walb personally and the Walb Construction Company, which president. The other three counts, blanket in nature, charged the defendants jointly with conspiracy acts to the national banklaws. Weaver Walb vicepresident throughout the period. They continued hold positions until August when they resigned and John Caton became vice-presiand acting president. run the two months terminated the directors closing October and turning affairs to John Utt. Federal banking examiner, who subsequently was appointed temporary receiver. Investigates. Utt investigated its affairs turned Comptroller Currency in Washington, which, understood. was referred the Department Justice. The latter agency out Glenn Paulson, Federal the bank's books. Paulson one of the principal witnesses before the grand its four-day taking of evidence the Each the first nine counts carries with upon conviction fine up $5,000 and imprisonment of not more five years the penitentiary. Each of the last three carries with upon conviction of fine $10,000 and imprisonment not According officials of the district attorney's the apply force on both defendants in case To Investigate Updike. While recommending that no further general investigation made into the political intrigue, the county jury urged that inquiry be tinued into the report that Congressman Ralph Updike, of the Seventh Indiana district, had entered into patronage with Stephenson, grand dragon of the Ku Klux Klan and now life-term oner Michigan City State Prison. Name The of the man indicted day was public pending arrest. learned, however, that not public official. The grand the discharge persons other cases. Preceding drafting of the final report United States Senator James Watson, of Indiana, and Miss Ada Bush, for years secretary forGov. Warren by the grand First Buffalo Hunt Years Took Baltimore Ice Bars D'Annunzio's Works. nunzio's for Bishop of this told his people. He urged them Earthquake In Alaska. revival the Juneau, Dec. 31 the duty of Italians," lasting 30 seconds prelate said, honor fatherland Juneau 10.02 today. and let rattled and goods silence their On shaken. Periscope Slanted. The divers reported Frank H. Brumby, directing the that the forward periscope the S-4 pointing straight ahead, while the after periscope slanted would indicate, was said, that the men the control room the submarine sighted the Coast Guard Destroyer Paulding before that vessel rammed sank the They also reported that water was leaking slowly into forward compartment.


Article from The Hancock Democrat, January 5, 1928

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Union Revival In Progress The union revival meeting had a very auspicious beginning Sunday evening at the Memorial building, considering the extremely cold weather. With the thermometer registering several degrees below zero, hundred or more people gathered for the first service, which was full of enthusiasm. About twenty re sponded to the call for choir service and the singing under the leadership of Rev. A. W Miller, the evangelist, spirited. J. The song leader and soloist, Rev Floyd Selig, was not at the open ing service, but came Monday and is now in charge. On the platform with the evangelist Sunday night were the pastors of the M. P. Church, the Presbyterian Church, the M. E. Church. the Friends' Church, the U. B. Church and also Rev. Hosier, Christian Church minister who has charge away, Rev. C. H. Diehl, former pastor of the Christian church was also present. The meeting will be held each eve ning in the Memorial building, which has been leased for three weeks by the Ministerial Association and all the churches of the city are joining in this special effort. Rev. Miller is an evangelist of recog nized ability and of pleasing personality His sermons are logical and appealing and should attract men and women to the cause he represents. The public will be welcomed to each and all of these services and the aid of every person in the singing and other work is sought. LIST OF ALLOWANCES Held To Criminal Insane Hospital Judge William H. Lueders, of the Hamilton county, Ohio. probate court, has held George Remus to be criminally insane and a dangerous person to be at large He will be committed to the State Hospital for the Criminal Insane at Lima, Ohio. Remus was acquitted by a jury two weeks ago, of the charge of murdering his wife on October 6th. on the sole ground of insanity. This necessitated hearing as to his sanity. making it incumbent on him to prove that he is now sane, which he failed to do to the satisfaction of the court The decision was handed down by Judge William H Lueders. spoke in unmistakable terms despite the finding of three alienists with him in advisory capacities that Remus is The alienists, who had no part in the final decision. it with this elaboration of their finding that Remus technically is sane 'We also find that said George Remus is a psychopath and therefore to be at large. We believe that he is a dangerous psychopath because he is unmoral. lacking a sense of ethics. emotionally unstable being subject to unrestrained outbreaks of temper and rage and egocentric to a pathological degree Dodge Threat Stressed It was brought out in probate court sanity hearing that Remus adhered to his previously expressed opinion that it would be a legal but not moral wrong for him to slay Franklin L. Dodge, Jr. of Lansing, Mich. former federal department of justice agent To Dodge Remus attributes all his troubles. Dodge was said to have been instrumental in working up the case which wrecked Remus's gigantic illicit liquor enterprise and sent him to the Atlanta Federal Peni tentiary Dodge then. according to evidence adduced at the murder trial. began an with Mrs. Remus which forced the former Chicago lawyer and "king" of bootleggers mad. The report of the alienists, in full read as follows: "We, the undersigned. appointed to examine Remus as to his sanity. beg to submit the following 'After careful physical and mental examination. the hearing of the testimony and a review of the history of the case. we find said George Remus sane "We also find that said George Remus is psychopath and. therefore, is a dangerous individual to be at large We believe that he is dangerous psychopath, because he is unmoral. lacking sense of ethics. emotionally unstable, being subject to unrestrained outbreaks of temper and rage and egocentric to a pathological degree. "H. H. HOPPE. M. D "THOMAS A. RATCLIFF. M D. "HOWARD D. McINTYRE, M. D." Mr. and Mrs. Warren Cooper, of Detroit, Michigan, spent a part of the holidays here with Mr. and Mrs. Ed V. Toms and other friends and relatives. Death of Former Citizen Cedar Vale (Kan.) Messenger. John P. Hefner, son of William Duval Hefner and Jane Moore Hefner, was born November 29th. 1851. in Ravens Eye. West Virginia and departed this life December 2nd, 1927. being 76 years and days old. When a lad ten years old the civil war was on and at that age he began to be the main stay of the home the war called his father and oldest brother to the battle fields. In the year 1868 he. with his mother four and one sister from West Virginia to Ind. ten years later he with his mother. three and one moved Cedar Vale, Kan. where he has resided since having occupied the farm where he departed this life since 1881. He was married to Alice Bertha Carruthers. September 19th. 1893 from this union two children were born Ted and Ethel. both of whom are today Three broth ers, one sister having departed this life. one brother Samuel R and sister, Virginia Hefner. who resides in Denver. Colorado. also his wife. son. daughter and three grandchildren. also several nephews and nieces and their families to mourn his loss. During his recent illness he was patient and bore his suffering almost without murmur and exercised bit of wit with those who were at tending him. To know Mr. Hefner was to love him was very hospitable to all his friends and was at all times willing to meet any one half way in doing good and in his daily life practiced the golden rule. Those acting as pall-bearers were: Messrs. F. M. Hubbard. Howard Aley, E. M. Lemert Andrew Zimmerman. Elmer Nelson and Fay Webb. The funeral services were held at 00 o'clock on Saturday afternoon. December 1927. Rev. W. C. Chappell conducting the services. Interment was made in the Cedar Vale cemetery. When Mr Hefner removed from this city to Kansas overland. he was six weeks in making the trip by wagon. State May Lose $50,000 In Kokomo Bank Failure. Kokomo, Ind., Dec. 30. Although the state of Indiana has been able to collect $87,000 of the approximately $160,000 of state funds on deposit in the Amer ican Trust Company, which closed its doors Inst September, the state can only file common claim for the balance, according to statement made today by Grover Bishop, one of the receivers. The state therefore will lose probably about $55,000 since it is expected the receiver will not be able to pay more than 25 per cent to depositors. The law requires that half of the amount of state funds be protected by bond or otherwise. A surety bond of $37,000 was provided by the Metropolitan Casualty Company of New York and the bank itself put up $50,000 in government bonds as col- The state has collected $92,500 in surety bonds and government bonds since the American Trust Company failure. Mrs. Grace Banta Urbahns, state treas urer, said last night, and a claim has been filed for the balance. The state had $250,000 on deposit in the bank few months before it failed. Ben H. Urbahns, Mrs. Urbahns's deceased husband and former state treasurer, withdrew $30,000 of this amount and Mrs. Urbahns withdrew an additional $60,000 shortly before the bank closed its doors. Mrs. Urbahns said the state would lose at least $50,000. Indianapolis Gets Historical Meeting The American Historical Association, in its annual conference held at Wash ington. D. on December 30th. selected Indianapolis as the place of meeting in 1928. The date will be December 28 to 31. The annual meeting of this Association usually attracts six or seven hundred persons, mostly college professors and writers. The selection of Indianapolis was of particular significance in view of the fact that the sesqui centennial celebration at Vincennes of the eapture of Vincennes by George Rogers Clark will be held in 1929. At the closing session announeement was made that Mrs. Katherine Eddy Beveridge, of Indianapolis, had contributed $50,000 to the proposed endowment fund of $1,000,000, in come of which will be used for historical research. Mrs. Beveridge's contribution was made in memory of her husband, Albert J. Beveridge. It was also disclosed that friends of the former Indiana senator are seeking to raise $50,000, which with Mrs. Beveridge's contribution, will be known as the Albert J. Beveridge memorial fund. J. W. Fesler, Indianapolis, is heading the movement for collection of the money. Dale's Attacker and Avenger Free On Bond. Muncie, Ind., Jan. the result of the second fist fight in the Courthouse within few days Luke Rowan, deputy sheriff, and members of the family of George R. Dale, Muncie editor, Rowan is under $500 bond to keep the peace and is also charged with assault and battery, while George Dale, Jr., is charged with violating the liquor law and with intoxication. All charges were certified from City to Circuit court. In the first fight week ago Rowan attacked the elder Dale because of an article in Dale's newspaper. Rich Loot In Auto Thefts The police records show that 3,770 automobiles, valued at $2,224,371 were stolen at Indianapolis during 1927. Of those reported missing, 3,490 were recovered, and still missing, 280 ears, valued at $141,921. This year there were 20,791 out of the city cars reported stolen and 96 of these were recovered in Indianapolis. Many machines recovered had been wrecked and stripped. May and June were the biggest months for thefts and the fewest number reported in December and January. This vicinity was visited on Saturday and Sunday with zero weather. Four Hurt, One Held Richmond, Ind., January 3-Four persons were injured and two automobiles and a truck were damaged last night in a triple accident two miles and a half west of Dublin on the National road. and as a result the truck driver, Frank Hart. age thirty Indianapolis, is held at Newcastle, pending the outcome of injuries to occupants of one of the cars. Hart was arrested by Ed Beeson, state highway officer. of Cambridge City but no charge has been placed against him. The injured persons, Leo S. Martin. Shirley Mae Martin. Charles Harris and N. L. Harris, all of De troit. were taken to Reid Memorial Hospital here. George Martin and Mrs. Marmell Harris. also occupants of the car. were not hurt. Mr. and Mrs. James McCarty. occupants of the other automobile in the accident. also escaped without injury. Martin suffered dislocated hip and Charles Harris suffered a fractured left thigh. Shirley Mae Martin and N. L. Harris were bruised and lacerated. Hart was driving west, while James McCarty, of Newcastle. was driving east. accompanied by his wife. The truck said to have struck the rear of the McCarty car, and Hart. in regaining control of his machine after having driven to the left side of the road, crashed headon with the Martin car. Man 48 Drowns Self In River Carthage Citizen. The body of Winfield Fitch, age 48 years, was discovered in Blue river near the north edge of town, about 7:30 a. m., Wednesday by two youths, Eugene and Donald Mann, brothers, of this place. The boys first noticed the cap and shoes of Mr. Fitch. with Christmas, addressed to him, on the north abutment of the long railroad bridge, and investigating they noticed part of the overcoat on the body, and called the men working at the saw-mill short distance south. A 30 pound pulley was found tied to the neck. The body was on the west side of the bridge and twenty feet from the north bank in seven feet of water. Following the leap of fifteen feet. it was discove red the pulley had evidently first struck spring board. The leap had evidently been made during the night. His knife and pocketbook were found on the porch at the Fitch home on North Main street. Surviving are the widow and seven children: Phyllis and Rayburn, at Evansville: Mrs. Evelyn Weaver, in Arkansas; and Frederick, Wooten, Jack and Lewis, at home. May Be Sold Intimations were made recently in the Rush circuit court that the court would authorize the of the Indianapolis and Cincinnati traction company by the receiver. Will M. Frazee. as the time is near for the court to sell the property involved in a mortgage of more than $2,000,000. Plans are under way for a reorganization of the company. Advertise in the Democrat. Walb and Weaver Indicted Clyde A. Walb. Republican State chairman. Saturday indicted upon charges of violating the national banking law and conspiracy to violate the same law, by the Federal grand jury. Walb was indicted with Valentine Weaver. former president of the First National Bank of La Grange, Ind. Walb is former vice president. Arraignment was set for Jan. by Federal Judge Robert C. Baltzell. The indictments were prepared by District Attorney Albert Ward and his assistant. Alexander G. Cavins. They are charged with violations involved in closing of the bank by national bank examiners. The indictment is in twelve counts. Two charge Walb and Weaver with conspiracy. The others charge specific violations of the banking law, in which Weaver is pictured as the perpetrator, with Walb as the abettor. In general, the indictment charges that Weaver and Walb appropriated thousands of dollars of the bank's money. for himself and Walb for himself and the Walb Construetion Company. The thefts were covered up by Weaver. by making false entries in the bank books. by forging notes and leaving them where bank examiners would find them. it was charged. Walb is charged with keeping checking accounts for himself and for the construction company in the bank. He frequently overdrew from both accounts, Weaver always covering up for him by honoring checks and entering credits to Walb's accounts, whether Walb made deposits or not, it is alleged. The indictment lists a total of sixty-six overt acts under the two conspiracy counts. The bank was closed Oct. 24, 1927, by J. F. Utt. Federal bank examiner, serving as temporary receiver, after Department of Justice agents called by him had discovered $76,000 in forged paper. Utt took charge after a run on the bank. Mr. and Mrs. Rilev White, northeast of the city, had as their holiday guests, Mr. White's sons, Hughes White and wife, of Mt. Vernon and Clarence White and Miss Lucile Race, of Springfield, III. Mr. and Mrs. Wm. Robb entertained at a pitch dinner New Years day, Mr. and Mrs. John Paseo and family, Mr. and Mrs. Elden A. Robb and daughter. Gladys, of this city, Mrs. G. A. Davis and daughter, Dorothy, of Gary and Mrs. Wm. J Sylvester, of Chicago. Boy Bandits Get 7 Cents South Bend, Ind., January 3-H. C. Rinkel, salesman, last night was forced to drive into the country by two youths, who supposed he had large sum of money with him. Hailing Rinkel at the city limits, the boys asked for a ride because of the cold. Rinkel took them in and shortly after was held up and robbed of 7 cents, all the money he had with him. Made by the Board of of Hancock County Indiana at their regular January, 1928 meeting $237 Hazel add. salary Joseph Allen, health Greenfield Ice Fuel Co., fuel H Wm. Sullivan supplies Jail Trees Son. sup Co. Farm Milling Co., sup. Co. Farm 302 Indianapolis Orphan Asylum. care orphan Andis care orphan poor Harry Strickland sup Farm Lynam, burial soldier Spencer Pub Co. adv Road Spencer Pub. adv Deerburg Greenfield Telephone phones erroneous tax Lester Wm. H. Larrabee, Brandywine poor 10.00 Arlis Thomas Brown poor Wm H Carr poor Dr Oscar Heller Center poor Win Sullivan Center poor Center poor 116.75 Dr E. Hawk Sugar Creek poot Mary Whitman care orphan poor Porter Kleiman Road Frank Winslow Hooton Road 4,810.00 killed Homer Brune killed stock killed Frank D. M Creighton killed Quincy Bates stock killed killed Kuhn stock killed Thomas S. Smith, killed Gravel Road Repairs $984.36 Ray Hooton Thomas Hawkins Arthur Johnson B. Leary Austin Boots 15.00 O. Monger & Son 188.00 Frank Gray Chas Scott Arthur White 200.00 Homer Olvey 12.50 ERNEST WARRUM Auditor Hancock County. Indiana


Article from The Indianapolis Times, April 21, 1928

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WALB-WEAVER BANK TRIAL TO OPEN MONDAY Pair Faces Conspiracy, Ten Other Charges in Ft. Wayne. FORGERY IS ALLEGED Former State G. 0. P. Head Accused of Taking Funds for Own Use. By Times Special FT. WAYNE Ind., April 21.-Trial of Clyde A. Walb, former Republican State chairman, and Valentine Weaver, former president of the First National Bank of La Grange, Ind., for failure of the institution, will open in Federal Court here Monday. Walb was vice president of the bank, but resigned along with Weaver before the indictments were returned, and after the charge was filed resigned his political office. The trial will be before Judge Walter Lindle yof Danville, Ill., Judge Thomas W. Slick of the northern Indiana district having declined jurisdiction. Venire of 60 Called Sixty prospective jurors have been summoned by Deputy United States Marshall John Voegtlin. Homer Elliott, former Government district attorney, will defend Walb. They conferred at La Grange Friday. District Attorney Albert S. Ward will prosecute the case. are with ing Walb law violating and and conspiracy Weaver the national to charged violate bankthe same law. The indictment consists of twelve counts, two of which allege conspiracy and the others aver specific violation of the banking law. It is alleged in the indictment that Walb took over thousands of dollars for himself and his construction company-the Walb Construction Company-and Weaver is alleged to have converted money he is supposed to have taken for personal uses. $76,000 in Forged Paper Weaver is alleged to have hidden the thefts from examiners by writing forged notes and in some instances throwing personal money into the breach. The forged paper in the bank at the time it was closed was said to have totalled $76,000. Other forgeries listed in the indictment carry amounts ranging from $300 to about $6,000. The bank's doors closed Oct. 24, 1927, after J. F. Utt. Federal bank examiner, who served as temporary receiver after Department of Justice agents uncovered the alleged loss. The case went before the Federal grand jury at Indianapolis, Dec. 21, and the men were indicted, Dec. 31. Bill May Affect Case Complications may arise because of a bill in Congress that may become a law by Monday which carries the provision that this division and the Hammond and South Bend divisions shall constiute the northern district of the Indiana Federal Court. If this goes through Ward will represent the southern district and a new district attorney the northern. This, it is said, technically would disqualify him for the trial. Ward said the attorney general's office has indicated that since he presented the case to the grand jury he should try it. If this does not stand the case probably will be postponed until the northern district appointee can become familiar with the Walb-Weaver case.


Article from The Indianapolis Times, April 23, 1928

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WALB-WEAVER JURY PICKED AFTER TANGLE Creation of New Federal Court Brings Confusion at Trial. BANK FRAUD CHARGED Special Judge Lindley Is Speeding Case of Pair at Ft. Wayne. BY CHARLES E. CARLL, Times Staff Correspondent FT. WAYNE, Ind., April ation of the separate southern and nothern Indiana Federal Court districts, made effective Saturday by President Coolidge's signature, today threw the trial here of Clyde A. Walb, former Republican State chairman and Valentine D. Weaver, into a tangle. Before the tangle was straightened, it was found necessary for Special Judge Walter Lindley of Danville, Ill., to appoint District Attorney Albert Ward of Indianapolis, who had come here to prosecute the case, a special district attorney. Ward would have been out of his jurisdiction, as he is district attorney of the southern district under Judge Robert C. Baltzell at Indianapolis. For this trial he will serve as a special district attorney for the new northern district. Charged With Bank Fraud Walb and Weaver are charged with violating national banking laws in the failure of the First National Bank of La Grange, Ind., where they reside. Weaver formerly was president and Walb vice president of the bank. After the tangle over whether the new court bill was in effect was straightened, questioning of talesmen proceedeed SO rapidly, under the dynamic urging of Judge Lindley, a short, snappy jurist, that a jury was sworn in at 12:06 p. m. The Jury includes James Husselman, Waterloo, farmer; Gail Bradley, Huntington, druggist; Clark Campbell, Auburn, farmer; John E. Peterson, Decatur, clothier; William Montgomery, Portland, farmer; T. W. Knapp, Decatur, farmer; E. W. Dodez, Ft. Wayne, manufacturer; David Rapp, Huntington, bank stockholder: Ezra Brand, Ashley, farmer; A. D. Sudtlers, Lynn Grove, real estate; .Harry Wasmuth, Andrews, lumber dealer, and John Willern, Hamilton, farmer. Warns Against Favoritism As court opened, it was the opinion of the officials that the bill signed by President Coolidge Saturday carried a clause making it effective sixty days after signature, but a long-distance telephone call by Ward to the attoreny general's office in Washington disclosed that it went into effect immediately. The court, on request of Defense Attorney Elliott, told the talesmen to disregard public opinion on their possible acts in this case. Elliott said he wanted this statement before the jurors because of the "number of bank failures in this part of Indiana." Before interrogating talesmen, the court stated that although compensation for jury service seemed inadequate, it was a public duty. This court can not function without a conscientious, industrious and honest jury. Friendship, lodge affiliations, politics, religion and spite have no place in your deliberations." Walb sat throughout the examination of veniremen, studying them closely. Weaver, who suffered two strokes of paralysis Friday, kept shifting his gaze from the court to the jury box. The courtroom was jammed with prospective jurors, witnesses and spectators. Members of the Amish sect, with beards and their dark costumes, sat stolidly watching proceedings. The defunct institution was closed by national banking officials after Department of Justice agents uncovered $76,000 of alleged forged papers on the bank's books. False Entries Charged The alleged discrepancies in the bank's account began to appear in June. 1927, and although Walb denied it, the general belief was that he informed directors of the institution that he used some of the money to finance his personal business, the Walb Construction Company. Upon investigation by the Department of Justice J. F. Utt, Federal bank examiner, closed the institution Oct. 24, 1927, and took charge as temporary receiver after a run on the bank. The case was presented to the Federal jury at Indianapolis beginning Dec. 21 and the indictment was returned against Walb and Weaver Dec. 31, 1927. Both men


Article from The Indianapolis Times, April 23, 1928

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JURY PICKED of New Federal Creation Court Brings Confusion at Trial. BANK FRAUD CHARGED Special Judge Lindley Is Speeding Case of Pair at Ft. Wayne. BY CHARLES CARLL, ation of the separate southern and nothern Indiana Federal Court districts. effective Saturday President Coolidge's signature. day threw the here of Clyde Walb, former Republican State chairman and Valentine D. Weavinto tangle. Before the tangle was straightened, found necessary for Special Judge Walter Lindley of Danville, appoint District Attorney Albert Ward Indianapolis, who had come here to prosecute the case, special district attorney. Ward would have been out of his jurisdiction, he district attorof district under Judge Robert Baltzell at IndiFor this trial he will serve special district attorney for the new Charged With Bank Fraud Walb and Weaver are charged with national banking laws the failure of the First National Bank of La Grange, Ind., where they reside. and Walb vice president of the bank. After the tangle over whether the court straightened, of talesmen proceedeed SO rapidly, under the urging of Judge Linda short, snappy jurist, that sworn Jury Husselman, Waterloo, farmer; Gail BradHuntington, druggist; Clark Campbell, Auburn, farmer: John Peterson, Decatur, clothier; William Montgomery, Portland, farmer; Knapp, Decatur, farmer; Dodez, Wayne, David bank Ezra Ashley, farmer: Sudtlers, Lynn Grove, real Harry Andrews, lumber dealer, and John Willern. Hamilton, farmer. Warns Against Favoritism As court opened, was the opinion of the officials that the signed by Coolidge Saturclause making fective sixty days but telephone call the office in Washington disclosed that went into effect immediately. The court, request of Defense Attorney Elliott. told the talesmen to public opinion on their possible in case. Elliott said wanted this statement before the jurors because of the "number bank failures in this part of interrogating talesmen, the court that sation service inpublic duty. This court function withindustrious honest jury. Friendship, lodge iations, politics, religion spite place your Walb sat throughout the examination veniremen. studying them closely. Weaver, suffered two strokes paralysis Friday, kept shifting his gaze from the court the The courtroom was jammed with prospective jurors, witnesses and Members of the Amish sect, with beards their dark costumes, sat stolidly watching proceedings. The defunct institution was closed national banking officials after Department Justice agents uncovered $76,000 alleged forged papers on the bank's books. False Entries Charged The alleged discrepancies in the bank's account began to appear in 1927, and although denied the general belief was that informed directors the institution that used some of the finance personal business, the Walb Construction Company. Upon investigation by the Department of Justice Utt. Fedbank examiner, closed the institution Oct. 24, 1927, and charge temporary receiver after on the bank. The case was presented to the Federal jury Indianapolis ginning Dec. 21 and the indictment returned Walb Weaver Dec. Both men pleated gulity and Judge Thomas W. Slick declined juridiction.