6032. First National Bank (Logansport, IN)

View Charter #3084 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
3084
Charter Number
3084
Start Date
October 28, 1931
Location
Logansport, Indiana (40.754, -86.357)

Metadata

Model
gpt-5-mini
Short Digest
56786aee

Response Measures

None

Description

Directors voluntarily closed the First National Bank on Oct 28, 1931 to conserve assets amid withdrawals; the bank did not reopen under that name, a receiver was appointed and assets were transferred to a newly organized National Bank of Logansport (opened Dec 22, 1931). Some reports mention heavy withdrawals but local reporting emphasizes a voluntary closing though ultimately the Comptroller/receiver handled liquidation.

Events (3)
1. October 28, 1931 Suspension
Cause
Voluntary Liquidation
Cause Details
Board of directors voluntarily ordered closure to conserve assets and protect depositors amid slow/heavy withdrawals; officials stated the bank was solvent but closure would prevent further loss.
Newspaper Excerpt
In view of the disturbed conditions generally, this bank is closed by order of its board of directors, In order to conserve its assets for the protection of its depositors and all others concerned.
Source
newspapers
2. December 21, 1931 Receivership
Newspaper Excerpt
Subject to the provisions of the contract, the remaining assets of The First National Bank of Logansport will be retained and liquidated by the Receiver... J. W POLE Comptroller of the Currency of the United States.
Source
newspapers
3. December 22, 1931 Other
Newspaper Excerpt
THE NATIONAL BANK OF LOGANSPORT will open Tuesday, December 22. With its opening $1,800,000 will be available to the depositors of the First National Bank. ... the receiver of the First National, Marc C. Stuart, is distributing forty per cent dividend to depositors of the old institution.
Source
newspapers

Newspaper Articles (13)
1. October 28, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 28, 1931

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Article Text

SHUT LOGANSPORT BANK First National Is Closed by Directors After Run. By United Press LOGANSPORT, Ind., Oct. 28. The First National bank of Logansport, an institution which had been operating for eighty years, was closed at noon today by order of the board of directors. Heavy withdrawals were blamed. John F. Brockmeyer was president and William A. Denniston cashier. Assets were listed as $6,500,000 and capitalization $200,000. The First National was the second bank to close here in six weeks. The Farmers and Merchants State bank is the only remaining bank in Logansport.

2. October 28, 1931 The Pharos-Tribune Logansport, IN
Article from The Pharos-Tribune, October 28, 1931

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Article Text

In Jail Taken Action Stand As Protectoin To Depositors Closing in Decide On the Institution Directors of Board of Order To Conserve the Assets for Depositors; President John F. Brookmeyer Declares Bank is Solvent This morning at the regular meeting of the Board of Directors the First National Bank of Logansport, the largest and oldest bank, decided that due to the fact that there had been some slow withdrowals, although no run was made on the bank, that It was the duty to voluntarily order the bank closed immediately, 80 that there would be no loss 10 the depositors. John,F. Brookmeyer, president of the bank stated that he felt that the bank owed its first duty to its depositors and that it was the duty of the directors and officers of the bank to close it, 80 that the depositors would have an opportunity to receive one hundred cents on the dollar. He stated that in his opinion the bank was solvent but that it the bank were permitted remain open and if these withdrawals continued, that It would endanger those depositors who had remained loyal to the institution. That while be realized that perhaps a shock to the community, yet "time would prove that it was the sane and wise policy, both for the depositors and the community at large, to conserve the assets at this time. The Federal Reserve Bank was notified immediately of the action of the Board of-directors, who posted the following notice upon the door: A representative of their department will be in the city tomorrow, to take charge of the assets and a financial satement of the bank will be published SO that the public and depositors, within a few days, will have the full information on this matter. The following notice was posted on the bank door, following its closing at 11:15 o'clock this morning: NOTICE TO THE PUBLIC October 28, 1981 In view of the disturbed conditions generalls, this bank is closed by order of its board of directors, In order to conserve its assets for the protection of its depositors and all others concerned. John F. Brookmeyer W. L. Fernald W. 0. Murdock Frank M. Rice Frank M. McHale W. T. Wilson W. A. Holloway John Mulcahy Constituting Members of be Board of Directors. "The Frst National bank is a member of the federal reserve system and is directly under its supervision and had the situation warranted such actions, assistance could have been secured from this source. "We could have borrowed or rediscounted our customers' notes with the federal reserve bank had we felt that this step was necessary. But we did neither," John F. Brookmeyer, president of the First National bank informed the PHAROS-TRIBUNE this afternoon. In the statement isued by officials the total resources of the institution is shown as $5,882,203.16. The surplus and undivided profits are quoted as $212,484.54. Deposits of $5,175,512.54 were listed. The capitalization of the bank is $250,000. Officers of the institution besides Mr. Brookmeyer, the president, are W. L. Fernald. F. M. McGaughey and William Porter, vice presidents;; W. A. Deniston, cashier, and E. W. Heimlich, assistant cashier. Banks coming under the Federal Reserve System are required to have on hand three percent of time deposits and seven percent of demand depositts at all times.

3. October 29, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 29, 1931

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Article Text

OCT. 29, 1931 Bank Weathers Run By. United Press LOGANSPORT, Ind., Oct. 29.The Farmers and Merchants State bank here was open for business as usual today after withstanding a three-hour run Wednesday. The run followed closing of the First National bank, now in charge of W. A. Cutler, national bank examiner.

4. November 6, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, November 6, 1931

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Article Text

NEW BANK PROPOSED Institution With Capital of $200,000 Planned at Logansport. By United Press LOGANSPORT, Ind., Nov. 6.-A new national bank, with $200,000 capital, will be formed to absorb assets of the First National bank here, and complete liquidation, it has been decided. The First National had assets exceeding $5,000,000. National banking authorities were in favor of the new bank, and it was announced that no receiver would be appointed for the First National, whose officers predicted that a 25 per cent dividend on deposits can be paid soon.

5. December 21, 1931 The Pharos-Tribune Logansport, IN
Article from The Pharos-Tribune, December 21, 1931

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Article Text

TREASURY DEPARTMENT Washington, D. C. Subject to the provisions of the contract. the remaining assets of The First National Bank of Logansport will be retained and liquidated by the Receiver, and as additional funds are from time to time derived from such liquidation. further dividends are expected to be paid. J. W POLE Comptroller of the Currency of the United States.

6. December 21, 1931 The Pharos-Tribune Logansport, IN
Article from The Pharos-Tribune, December 21, 1931

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Article Text

The National Bank of Logansport Will Begin Business At 9 A.M. Logansport's New Banking Institution Will Have $1,800,000 Available For Depositors When It Begins Operation: Work of Remodeling Quarters at Fourth and Broadway Has Been Completed. OGANSPORT'S newest banking institution, THE NAL TIONAL BANK OF LOGANSPORT will open Tuesday, December 22. With its opening $1,800,000 will be available to the depositors of the First National Bank. Final details for the opening were completed at a meeting of the board directors of the new bank Thus within less than sixty days of the closing of the First National Bank this community has been provided a new bank through which-the receiver of the First National, Marc C. Stuart, is distributing forty per cent dividend to depositors of the old institution. The announcement was greeted with enthusiasm by depositors of the First National Bank, residents of the community and business men in general for with $1,800,000 is made available Christmas cheer in a magnified form brought to the community. Final Approval Given After completing details in connection with the sale of certain assets of the First National Bank to the new bank Saturday, Attorney George Barse of Washington, D. C., representing the comptroller, Attorney R- C. Hillis representing the First National Bank receiver and Frank McHale appearing for the new bank, went to Gary, Indiana, where at 11:30 o'clock Saturday night Judge Thomas Slick of the Northern Indiana Federal court approved the transaction and then congratulated the Logansport people, organizers of the new bank and the representative of the comptroller for the excel. lent service they were giving the people of this community. Thus ended the details of the legal work connected with the steps that made possible the new institution and the distribution of forty per cent dividend to the depositors of the old bank. It is believed to have set a record in banking activities of this nature Among the official actions of the bank directors today was the naming of John F. Brookmeyer and William H. Porter assistants to the new president, W. A. Deniston. The board members also signed appointments making Edwin W. HeimMch, assistant cashier, Ferd Burgman, assistant cashier, and William F. Bauer. trust officer. New Quarters Ready Remodeling work on the home of the new bank, Fourth and Broadway, was completed Sunday and everything is in readiness for the opening Tuesday. Marc C. Stuart. receiver, declared today that his time and that of his assistants would be devoted this week to the proving of claims filed by deposiors of the First National Bank. He pointtted out that depositors must have heir claims proved by the receiver SO hat the sum to which they are entitled can be transferred to the new bank and thus- made available to them. This afternoon Mr. Stuart and his aids had completed the work on more than 1400 claims and had received the papers for proofs' of claims or more than one thousand additional ones. All depositors of the First National bank will receive their forty percent regardless of when they file their claim within the the ninety day period, Mr. Stuart declares, and unless individual is desirous of securing the money at once there is no need of rushing through the proof of claim- However. he emphasizes that the proof must be made with the receiver at the Logansport State Bank building. Fourth and Market street, before the new institution can make payments W. A. Deniston, president pointed out that depositors callfor their money at the new bank may secure it in cash. ing credit to their checking account, in certificates of deposit or in savings accounts All old depositors are welcomed-to of remain as patrons of the new institution and all residents the Logansport area are invited to become associated with THE NATIONAL BANK OF LOGANSPORT as patrons. A cordial invitation is extended to all to visit the new in stitution.

7. December 21, 1931 The Pharos-Tribune Logansport, IN
Article from The Pharos-Tribune, December 21, 1931

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Article Text

IMPORTANT TO DEPOSITORS Mare C. Stuart, receiver of the First National bank, has an Important message to depositors of that Institution which appears on page five of this Issue of the PHAROS-TRIBUNE:

8. December 21, 1931 The Pharos-Tribune Logansport, IN
Article from The Pharos-Tribune, December 21, 1931

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Article Text

PROOF OF CLAIMS READY TO NO. 2200 Proofs of claims for all First Nation bank depositors who have been assigned numbers up to 2200 have been prepared. Marc S. Stuart receiver, announced today. Persons in this group may appear at the Logansport State Bank building Fourth and Market street, any time to secure their,proofs.

9. December 21, 1931 The Pharos-Tribune Logansport, IN
Article from The Pharos-Tribune, December 21, 1931

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Article Text

Directors: Wm. A. Deniston W. O. Murdock L. Earl Riay Ralph W. Searight HE NATIONAL BANK OF LOGANS PORT and the Hon. J. W. Pole, ComptrolT ler of Currency of the United States at Washington, D. C., have arranged to make available, on Tuesday, the 22nd day of December, 1931, to the depositors of the First National Bank of Logansport, 40 per cent of their proven balance. This will be affected by transferring the 40 per cent of said balance of the First National Bank of Logansport, to the books of The National Bank of Logansport; the depositors thus becoming depositors of the latter institution. The National Bank of Logansport will acquire from the Receiver, assets of the First National Bank of Logansport, equal in value to the liabilities assumed by it. The National Bank of Logansport is doing this in the interests of the community which it will serve, and for the purpose of re-establishing the banking credit of Logansport throughout the entire country, and especially in the interests of the depositors of the First National Bank of Logansport, who have been inconvenienced by the tying up of their balance, making these funds available for present use.

10. December 23, 1931 The Pharos-Tribune Logansport, IN
Article from The Pharos-Tribune, December 23, 1931

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PERSONS MAKE DEPOSITS NEW BANK First National Depositors of the Bank Open Accounts With the New Institution. The number of depositors listed with THE NATIONAL BANK OF LOGANSPORT continues to grow and as the close the second banking day for this new instithe list tution drew near, proached the sixteen hundred mark. Practically every depositor of the First National Bank who has called for the dividend has become of the institution, patron new and listing money in savings accounts. Since the bank opened, Tuesday morning, three people have been kept busy during the banking hours writing certificates. Merchants throughout Tuesday were receiving checks on the new bank in payment for mechandise purchased by Christmas shoppers. Marc C. Stuart, First National Bank receiver, and his assistants, are working night and day serve the depositors of the old bank 80 that they may secure their money as soon as possible.

11. September 10, 1932 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, September 10, 1932

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NEW BANK DIVIDEND DUE Closed Logansport Institution to Give Depositors 10 Per Cent. By United Press LOGANSPORT, Ind., Sept. 10.Marc Stewart, receiver of the First National bank of Logansport, which closed in October, 1931, today was preparing for another 10 per cent dividend. A 40 per cent distribution was made last December.

12. December 20, 1932 The Pharos-Tribune Logansport, IN
Article from The Pharos-Tribune, December 20, 1932

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NOTICE OF SETTLEMENT OF THE RECEIVERSHIP OF W. C. ROUTH & COMPANY. NOTICE TO HEIRS CREDITORS ETC. vs. ROUTH COMPANY (A Being the ship Routh Company pending in the Cass Circuit Court November Notice hereby given that Marc Stuart, Receiver the First tional Bank of Logansport. Receiv. presented and filed. on behalf said bank. as Receiver of sajd trust. his account and vouchers final the same come up for examination and action fore on time creditors. stockholders and claimants said corporation required to appear in and show cause. if any there why said account and vouchers should approved. MARC Receiver of the FIRST ATIONAL BANK OF WITNESS hand and sent of my court Indiana. this 20th day of December BYERS Clerk of Circuit & DOUGLASS 20. SHERIFF'S certified cops of decree me directed from the Clerk's office Court wherein The Locansport Loan and Trust Commany plaintiff and Ulysses to make of Five Hundred Dollars and Thirty said of between the hours and M. door the of said rents following the of Logansport of said interest and HOMER STONERD County

13. November 7, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, November 7, 1933

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$60,000 Forgotten By Times Special LOGANSPORT, Nov. 7.-For- gotten money in the amount of $60,000 is awaiting claimants at the First National bank here, it is announced by Marc C. Stuard, receiver. The money is for claims which have been approved according to Stuart and represents both deposits and dividends.