6004. Citizens State Bank (Lagro, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
October 29, 1931
Location
Lagro, Indiana (40.838, -85.730)

Metadata

Model
gpt-5-mini
Short Digest
17aeb31a

Response Measures

None

Description

Newspaper articles across 1931-1934 indicate the Citizens State Bank of Lagro was closed and in receivership (receiver Ike Duffey). No articles describe a depositor run or temporary suspension followed by reopening. Coverage documents receiver actions, suits against stockholders and bondsmen, and collections—consistent with a permanent closure and liquidation. Evidence suggests bank-specific adverse information (misconduct/shortages by cashier and bonded losses) precipitated failure.

Events (6)

1. October 29, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
References to the bank being 'defunct', assessments on stockholders, claims against bondsmen of the former cashier (D. W. Gillespie) and recovered funds from bondsmen indicate internal losses/misconduct contributed to suspension/closure.
Newspaper Excerpt
defunct Citizens State bank of Lagro today, when Judge Switzer ordered note ... The bank receiver then said that have the bank records audited ... the prior failure.
Source
newspapers
2. November 27, 1931 Receivership
Newspaper Excerpt
When it was presented to Hunt for payment, he said that it had been paid ... The note ... came in possession the receiver when he took over affairs of the bank and was in turn sold to the local bank. The local bank is now asking that it be permitted to recover from the receiver the amount paid.
Source
newspapers
3. February 10, 1932 Receivership
Newspaper Excerpt
Judge Switzer today sustained a demurrer by the defendant in suit of Ike Duffey, receiver of the Citizens State Bank of Lagro against Warner Bartholomew ... receiver sought to collect an assessment against Bartholomew, who was a stockholder in the bank.
Source
newspapers
4. August 21, 1932 Receivership
Newspaper Excerpt
Judgment of $8,000 against bondsmen of D. W. Gillespie, former cashier of the defunct Citizens State bank of Lagro, has been obtained by Ike Duffey, receiver ...
Source
newspapers
5. May 14, 1933 Other
Newspaper Excerpt
Ike Duffey, receiver for the Citizens State bank of Lagro, reported to police that he was held up in the garage at his home and robbed of $500 early yesterday.
Source
newspapers
6. February 1, 1934 Other
Newspaper Excerpt
Duffy ... says he has collected approximately $57,000 for the bank. ... He was expected to resign as receiver tomorrow ... the state department of financial institutions will be asked to take over liquidation of the bank.
Source
newspapers

Newspaper Articles (10)

Article from Leader-Tribune, October 29, 1931

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Article Text

Note Confuses Wabash, Indiana, Oct. ther complications entered the fairs of the defunct Citizens State bank of Lagro today, when Judge Switzer ordered note, purported to have been signed by Sam and Mrs. Ferrell, concelled and impounded. The receiver of the note, but when the matter came up in court, Mr. and each denied signed the note and when their was pared with that the was found that not Gillespie, the bank when and be court. taken, which that note copy the original that had settled was intended part the bank's assets. said he did not know exact dates The bank receiver then said that have the bank records audited actual action been taken whether full whether they held assets bank examiners checked the been depositors state bank were lax their of the bank which permitted worthnotes be tiable assets for years the prior failure. other matters were discussed relative bank court but continued for decision. the claim Quinderia Courson She, acting for directors the bank, setled the town ship trustee town trustee closing their accounts which the bank when failed. that the claim gtneral and that she had ready obtained the bank directors before making payment. The other was the claim of an


Article from Leader-Tribune, November 27, 1931

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Article Text

Hearing Planned for Bank Claim Wabash, Ind., Nov. neys and officials today agreed to hear petition of the Wabash County Loan Trust Co. against receiver of the Citizens State Bank of to have claim declared preferred, on next Wednesday, The note given by Rudolph and Martha Hunt to the Lagro bank was for $555.70, came in possession the receiver when he took over affairs of the bank and was in turn sold to the local bank. When it was presented to Hunt for payment, he said that it had been paid and produced cancelled checks to prove it. The payments, it was said, had never been credited on the note. The local bank is now asking that it be permitted to recover from the receiver the amount paid.


Article from Chronicle Tribune, February 10, 1932

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Article Text

BANK RECEIVER IS DENIED PLEA WABASH, Ind., Feb. 10.-Judge Switzer today sustained a demurrer by the defendant in suit of Ike Duffey, receiver of the Citizens State Bank of Lagro against Warner Bartholomew, in which the receiver sought to collect an assessment against Bartholomew, who was a stockholder in the bank. In the demurrer it was contended that Duffey had no right to sue the stockholders in the bank, and that such action would have to be instituted by the depositors or others holding claims against the defunct bank. The decision is expected to result in dismissal of the case and also others of a similar nature.


Article from The Indianapolis Star, August 22, 1932

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Article Text

Lagro Bank Receiver Gets $8,000 Judgment [Special to The Indianapolis Star.] WABASH, Ind., Aug. 21. Judgment of $8,000 against bondsmen of D. W. Gillespie, former cashier of the defunct Citizens State bank of Lagro, has been obtained by Ike Duffey, receiver, through mise settlement W. G. Todd, Indianapolis depositors, said today he probably would file an action mandating the receiver to file suits against bondsmen for R. G. Fults and John Thomas, former presidents of the bank, in an effort to obtain an additional $6, '00 for distribution to de-


Article from The Indianapolis Star, May 15, 1933

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Article Text

BANK RECEIVER ROBBED. WABASH, Ind., May 14.-Ike Duffey. receiver for the Citizens State bank of Lagro, reported to police that he was held up in the garage at his home and robbed of $500 early yesterday.


Article from Leader-Tribune, September 12, 1933

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Trustee Named In Bankruptcy Smith was named trustee in the bankrupte petition of Frank Lawson of Lagro, former director in the closed Citizens State Bank following hearing before A. F. Marsh, federal in bankruptcy Several weeks ago it was charged in filed in the bank receiv. that Lawson, owner of confarm property in Lagro had transferred the propH. Courson and that CourSCT transferred it back to Lawwife, with view of decreditors. also charged that Lawson has refused to pay his share of assessment ordered against stockholders in the bank. Officials said that the purpose of naming a trustee in the case was in order that an investigation might be made of these charges and to permit filing of civil suit against Lawson to have the transfer set and the property taken over by the bank receiver to settle the assessment claim.


Article from Leader-Tribune, October 25, 1933

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Article Text

BANK RECEIVER ASKED WHY HE FAILED TO PAY partment of Financial Institutions of Indiana, in charge of liquidation of County Loan and Trust today filed petition in the re. reivershi of the Citizens State Bank of Lagro asking that Ike Duf cited to show cause why paid judgment ago in suit Hunt the Frank O. Switzer ordered him to show cause as to why has not been paid AGENT MISSING Wabash, A. Rapp for many years agent the Nickel Plate at Sidney North Manchester, has been since Sunday officials were informed today with the quest that hunt be for him LEWIS POWELL RITES October 24 The of at his conducted the home. The survive.


Article from Leader-Tribune, February 1, 1934

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Article Text

CLAIMS FILED IN BANK CASE Receiver and 2 Attorneys Seek Total of $7,000 for Work in Receivership of Lagro Bank. Wabash. Ind. Jan. -Claims for $7,000 in the receivership of the Citizens' State Bank of Lagro were filed in circuit court here today by Ike Duffy, receiver for the bank, and D. F. Brooks and Walter Bent, local attorneys. Brooks and Bent filed a detailed report of their work for the receiver during the last three years. They ask $3,500 for their services. Duffy in his claim also asks $3,500, setting out that the first three months of the receivership he spent practically his whole time for It and has been called in at least once a day since for some action in the receivership. He says he has collected approximately $57,000 for the bank. Of this amount 000 was from bondsmen of T. W. Gillespie cashier, and $35,000 was from sale of notes on mortgages to the Wabash Loan & Trust Co., also now in receivership. Duffy was supposed to file an amended report tomorrow, but on request of his attorneys the time for filing the report was extended to Feb. 15. He was expected to resign as receiver tomorrow, but since the request of his attorneys was granted will not resign until Feb. 15. Depositors of the bank are expected to protest allowance of the $7,000 asked today. The court also allowed D. F. Brooks $800 on a $950 claim in the receivership of the Farmers' State Bank of Urbana and allowed Plummer and Plummer, attorneys, $500 on a $600 claim for services to the same bank.


Article from Chronicle Tribune, March 6, 1934

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AWAIT REPORT ON LAGRO BANK FROM RECEIVER WABASH, Ind., March 6.-A report is scheduled to be filed in circuit court tomorrow by Ike Duffey, received for the Citizens State Bank of Lagro, under orders issued by Judge Frank O. Switzer. Attorneys were granted four extensions on time for the report and two weeks ago were informed that the report must be filed by March 7. Depositors in the bank have contested expenditures of more than $10,000 made by Duffey on the grounds that the court never approved them and that many of the claims were exhorbitant. One of the chief contentions was that Duffey, resident of Wabash, was not entitled to mileage h claimed on "trips to Wabash," of which more than 200 were listed. Duffey's attorney has stated that Duffey will resign as receiver when the report is filed and that the state department of financial institutions will be asked to take over liquidation of the bank.


Article from Chronicle Tribune, October 9, 1934

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SEEK TO HALT WABASH PLANT WABASH, Ind., Oct. 9.-First action in the injunction suit of Joseph W. Davis against the City of Wabash, in which he seeks to halt officials in their efforts to establish a municipal electric and water plant here, is scheduled to be taken next Tuesday. The case was set today for that time to hear preliminary issues in it. Davis charges that the city administration exceeded its authority in contracting with an Indianapolis firm to make a survey and report on utility prospects here and that payment of $4,750 to the firm for its work was illegal No temporary restraining order was sought when the suit was filed two weeks ago and the firm has proceeded with its investigation. Two weeks ago the city council passed an ordinance giving the firm power to enter the offices of the Northern Indiana Power Co. to check its rec ords for purpose of ascertaining the number of meters in use and age of machinery. The ordinance also gave the workers the right to enter the plant of the company here to check on machinery. The power company had previously refused permission to have its books examined. City officials said a report would probably be ready for submission to the city council late next month. Since there has already been an expenditure of $4,750 in the case officials expect that the next administration, regardless of which party wins, will be compelled to proceed with the action in event report of the workers recommend it. Other cases set today for trial were: Oct. 13, Hugh Enyeart against John Kaiser; Charles Schwenk against Fred Barnhart. Oct. 15, Citizens State Bank receivership of Lagro. Oct. 17, Huntington Trust & Savings Co. VS. Orlando Whitelock, venued here from Huntington