6001. National Bank of LaGrange (Lagrange, IN)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
national
Start Date
October 10, 1927
Location
Lagrange, Indiana (41.642, -85.417)

Metadata

Model
gpt-5-mini
Short Digest
a930ca48

Response Measures

Full suspension, Books examined

Other: Grand jury investigation later revealed possible forged paper and losses; examiner/receiver took charge.

Description

Contemporary articles (Oct 24–26, 1927) report a run lasting about two weeks that precipitated the bank's closing; Federal examiner F. Utt took charge Oct 24, 1927. Later articles (Dec 1927) describe grand jury investigation and alleged forged/defective paper and bad loans, indicating bank-specific insolvency. The sequence is: run → suspension/closure with examiner/receiver appointed (permanent closure).

Events (4)

1. October 10, 1927 Run
Cause
Bank Specific Adverse Info
Cause Details
Newspapers state a run over the prior two weeks precipitated the closing; later reports mention forged paper, bad loans and possible misuse of funds tied to a construction company, indicating bank-specific problems triggered depositor withdrawals.
Measures
Attempts to arrange a merger with LaGrange State Bank; no reopening — federal examiner took charge.
Newspaper Excerpt
One of the bank officials said that run on the bank during the last two weeks was responsible for the closing.
Source
newspapers
2. October 24, 1927 Receivership
Newspaper Excerpt
Federal bank examiner F. Utt of Fort Wayne, Indiana, has taken charge of the bank's affairs. notice on the bank's door ... 'the bank has been closed by order of the board of directors.'
Source
newspapers
3. October 24, 1927 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed by order of its board after runs and discovery of problematic loans/forged paper; examiner took charge indicating official suspension/receivership actions were taken due to insolvency concerns.
Newspaper Excerpt
The National Bank of LaGrange ... closed its door today and Federal bank examiner F. Utt of Fort Wayne, Indiana, has taken charge of the bank's affairs.
Source
newspapers
4. December 26, 1927 Other
Newspaper Excerpt
GRAND JURY INVESTIGATES LAGRANGE BANK FAILURE ... The bank was closed by F. Utt, Federal bank examiner, Oct. 24. ... report compiled by department of justice agents and accountants. ... alleged forged paper in the defunct National Bank of LaGrange believed to be under investigation by the federal grand jury.
Source
newspapers

Newspaper Articles (8)

Article from Chronicle Tribune, October 24, 1927

Click image to open full size in new tab

Article Text

LAGRANGE BANK CLOSES DOORS, PLANS MERGER Board of Directors Announce Depositors Will Not Lose LAGRANGE, Ind., Oct. National Bank of LaGrange, tan $863,000 institution, closed its door today and federal bank examiner F. Utt of Fort Wayne, Indiana, has taken charge of the bank's affairs. notice on the bank's door o'clock this morning stated that bank has been closed by order the board of One of the bank officials said that the bank during the last on weeks responsible for the closing. The bank officials added that the loans carried the among was one for $10,000 Clyde state republican chairman. Attempts were being continued today bring about merger tween the closed bank and the Grange State Bank. Examiner was quited as saying that no depositor would lose dime. Weaver resigned last August president of the bank and no cessor had been chosen. John Paul Caton was and general manager, H. Weaver, cashier, and Ort Sigler, assistant cash- The five directors of the bank at whose orders the doors of the institution were closed today were Caton, William Garmire, Price, Fred E. Price and EshelThe total resources of the bank according to its last statement surplus $25,000, capital stock deposits in cess $600,000. The bank was 60 years old.


Article from The Times, October 24, 1927

Click image to open full size in new tab

Article Text

LAGRANGE BANK CLOSES National Bank of Grange, closed its door today and Federal Bank of Fort the notice posted on the bank's stated that bank closed by order of the board directors. One of the bank officials said that run on the during the last responsible for the bank officials added that the loans carried by the among one for $10,000 to Clyde E. state Republican


Article from The Times-Mail, October 24, 1927

Click image to open full size in new tab

Article Text

DOORS LAGRANGE BANK ARE CLOSED Official Declares Run of Past Two Weeks Responsible for Action LaGRANGE. Ind., Oct. National Bank of LaGrange, an $863,000 institution. closed its door today and Federal Bank Examiner J. Utt of Fort Wayne, Indiana, has taken charge of the bank's affairs. A notice posted on the bank's door at o'clock this morning stated that 'the bank has been closed by order of the board of directors." One of the bank officials said that run on the bank during the last two weeks was responsible for the closing. The bank officials added that among the loans carried by the bank was one for $10,000 to Clyde E. Walb, state Republicar chairman. Attempts were being continued today to bring about merger between the closed bank and the LaGrange State Bank. Examiner Utt was quoted as saying that no depositor of the bank would lose dime. V. Weaver resigned last August president of the bank and no successor had been chosen. John Paul Caton vice-president and general manager. G. H. Weaver, cashier, and H. Ort Sigler, assistant cashier. The five directors of the bank at whose orders the doors of the institution were closed today were Caton, William M. Garmier, D. Price, Fred E. Price and L. Eshelman. The total resources of the bank according to its last statement were $863,182.08, surplus $25.000, capital he stock $100,000 and deposits in excess of $600,000. The bank was 60 years old.


Article from The Times, October 25, 1927

Click image to open full size in new tab

Article Text

LAGRANGE BANK CLOSES Oct., National Bank of LaGrange, and $863,000 institution. closed its today and Federal Utt of Ind., taken charge of the bank's affairs. notice on the bank's door this stated that bank closed by order of the board of directors.' One of the bank officials said that during the last responsible for the closing. The bank officials added that among the loans carried by the for $10,000 to Clyde Walb, Republican


Article from The Monticello Journal, October 25, 1927

Click image to open full size in new tab

Article Text

State Has Deposit In Defunct Bank INDIANAPOLIS, October The State of has $140.000 on deposit in the National Bank of agrange, at Lagrange. Ind., closed hv National Bank Examiner J. F. Utt of Chicago this morning. Mrs. Grace Banta Urbahns. State Treasurer, said that the State had $150.000 on deposit last week. but had withdrawn $10.000 for current expenses. She said she had had no indication of the bank's condition. A dispatch from Lagrange said that run on the bank had lasted several days. Mr. and Mrs. William Jolly returned to their home in Lafayette Monday evening after spending the week end here with their niece, Mrs. Ore Eldridge and family. Other Sunday guests at the Eldridge home were Mr. and Mrs. Si Helton and daughter of Rensselaer. Attorney A. K. Sills of Lafayette was in city today on business. Russell Engle arrived home this noon from Long Beach. California. where he has been for couple of weeks. He and his father, James Engle of Delphi, motored through leaving October 12 and arriving there October 17. James Engle remained. Dr. G. R. Coffin received call from St. Elizabeth hospital at LaTayette today confirming his diagnosis of Vincent's septic infection in the case of Tommy Dean, the young son of Mr. and Mrs. Jack Williams of near Norway who was taken to the hospital Sunday. He will be given three doses of antogenous serum and if this does not help his condition it may be necessary to operate the lung to let but the pus pocket. Physicians are hopeful of his early recovery.


Article from The Belleville News-Democrat, October 26, 1927

Click image to open full size in new tab

Article Text

Large Bank Closes Doors LaGrange, Ind., Oct. The National Bank of LaGrange, an $863,000 institution, has closed its door and Federal Bank Examiner Utt of Fort Wayne, Indiana, has taken charge of the bank's affairs. One of the bank officials said that run on the bank during the last two weeks was responsible for the closing.


Article from The Indianapolis Times, November 10, 1927

Click image to open full size in new tab

Article Text

PERFECT PAROLE WIELDING OF POLITICS CLUB BY WALB ON PRISON BOARD Stock in Chairman's Company Sold to Family of Convict Championed; Denies Any Connection. CLEMENCY SUDDENLY IS GRANTED Huntington Man, Convicted in Girl Case, Had Been Refused Freedom on Previous Occasions, After Hearings. Fenton Letter to Walb Page Section How the influence of Clyde Walb, chairman of the State Republican committee, was exerted to obtain the parole of Guy Perfect from the penitentiary after the board had refused clemency was revealed in report made to Walb by Harry Fenton, secretary of the committee. It also developed that the brothers of Perfect, wholesale grocers of Wayne, purchased worth of stock in the Walb Construction Company, whose permit to sell $250,000 worth of preferred stock was revoked by Secretary of State Fred Schortemeier on Oct. 10. Both Walb and Perfect, who purchased the stock, state that there was no connection between the sale of the the activities of Walb in getting the parole of Perfect. stock and The of Walb of explanation his activities in behalf of fect is given in this statement which he made to The Times: "Walb Construction Company curities owned parties the city of Wayne. Among those who these securities Arthur made purchase on about Sept. No Connection Seen my knowledge this sale of curities Perfect had no nection with any assistance dered the family of Guy Perfect. for the matter of his release from want to say that the prison, prosecuting attorney, judge Protestant Catholic ministers, the public in general in that joined requesting that vicinity Perfect paroled. This to me Guy showed the justice of the petition clemency. asked Harry Fenton to investhe matter report whether the parole board would feel justified in taking further action in Also whether the board the matter. members felt that they would consider favorably. Fenton made his report "Harry to his letter of per Parole is Granted after the Republican On Aug. had intervened in State chairman the prison board this matter. granted Perfect the parole which had refused in May. had been repeatedly The parole refused by board abolished by the last Legislature. Frederick State responsible for the said, when curities regarding the this questioned the permit to sell that had been the securities had sold by Walb. Walb and his The activities release Perfect interest in through letter became the State by Harry secretary the Fenton That directed by Walb to survey board the the prison liberty for chances which had been denied in of the rules of the prison One board not after clemency has within year that one member the John of board, that othKnox, streaks' and might "yellow which would arouse public indignation. Wanted to Help When interviewed, Fenton readily written letter that was willing and help anyone in trouble. asked the of the When stock for $2,500 had anything the matter he replied: have had nothing to do with Walb business. relations come about through politics. Perfect's parole by Governor the Jackson board, after he had served fifteen months sentence, caused surprise, efforts in his behalf previous had failed and the board abolished the Legislahad refused persistently listen. crime for which Perfect was The convicted shocked the city of ington, when place The charge made was the girl had attacked by Perfect while his employ She below the age whom the entitled and care and not misprotection the time his Perfect the wealthy case was fought bitterly through the lower courts to the Supreme Court. Perfect was defended the best who sought vainly to technical fault The Supreme Court confirmed the verdict of the Circuit Court. the influence of the powerState Republican the secretary of the committee, the appeal Joe Hutpolitical factor Wayne, Michael Foley, member the prison board member the church which Hutzell belongs, all are revealed the which Fenton made to superior. Close to Family The Walb had been in close with relatives family Perfect, whom stock in his construction company had been sold, also revealed in Fenton's letter. What happened between July 11, the date the letter and Aug. the of the parole, known. The board the latter July. At meeting in the prison board, which started to function pardon board under new law in had refused grant But the board members voted for They did more. They the and saw him sign prison. Influence Evident What Walb anything after the survey made him by Fenton, who frankly his size-up of the and especially of Foley, yet disclosed. That influence changed the minds various board this notorious case evident the record. In discussing the affairs of the which cializes in ditch drain work, regular finanfiled this office July that time affairs were reported "Along heard rumors LaGrange bank, of which had viceafter State Banking Examiner's Securities Weatherholt to LaGrange to these Stock Sale Halted "What was learned there and Chief Earl banks that held much the Walb where Mr. Walb did order the license sell stock. told. no stock had since far office concerned. could do grant mission on sworn presented There never any political significance the Organized years the Walb capital stock from March 1926. The report showed that time Walb personally held that issued. The increase stock to preferred shares pay annual and not cent the less than 85 per value. According to records on file in the office of securities official permission for sale granted March Attaches securities commission office stated that disclosed that the had been sold when ferred the order to stop was issued, Oct. No complete list of persons purthe stock obtained. The National Bank Laof which Walb had been officer, closed tional bank examiner, caused, said, run on the bank.


Article from Garrett Clipper, December 26, 1927

Click image to open full size in new tab

Article Text

GRAND JURY INVESTIGATES LAGRANGE BANK FAILURE Indianapolis, Dec. of more than in forged paper in the defunct National Bank of LaGrange believed to be under investigation by the federal grand jury at Clyde A. Walb, republican state chairman, stockholder and former vice president of the bank, was not among the thirty witnesses subpoenaed by the grand jury for the bank investigation, it was underAlbert Ward. United States district attorney, has received copy of report compiled by department of justice agents and accountants. The bank was closed by F. Utt, Federal bank examiner, Oct. 24. When Valentine D. Weaver, president of the bank until June, 1927, is alleged to have admitted the condition to bank directors, his brother, Silas D. Weaver, former Walb Construction company employe, is said to have thrown his personal fortune of more than into the bank to help make good the loss. Walb is said to have denied statements of Weaver that the Walb Construction company paper had been tided over by forging names of oth- Directors were told some of the money was used to take care of the construction company's reported overdrafts. Utt was appointed received in October following run on the bank which precipitated federal action. At that time the bank held in state deposits. A contract for building the new Howard county court house at Kokomo, Ind., has been awarded to English Bros of Champaign. III., contractors, on a bid of the lowest of bids submitted to the county commissioners.