6083. Farmers Bank of Milton (Milton, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
July 6, 1920
Location
Milton, Indiana (39.786, -85.156)

Metadata

Model
gpt-5-mini
Short Digest
8117921a

Response Measures

None

Description

Cashier Oscar M. Kirlin allegedly looted the bank (~$100,000) and committed suicide July 1, 1920; the bank did not open and was placed in receivership. Articles describe suits and receiver activity through late 1920–1921. No article describes a depositor run; sequence is suspension followed by receivership/closure. Article 3 notes the organization was effectively a private partnership.

Events (2)
1. July 6, 1920 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Cashier Oscar M. Kirlin allegedly embezzled/looted approximately $100,000; large worthless notes and shortages discovered, making condition uncertain.
Newspaper Excerpt
Kirlin committed suicide July 1. The bank did not open for business this morning.
Source
newspapers
2. September 29, 1920 Receivership
Newspaper Excerpt
Notice is hereby given that the undersigned ... has been appointed by the Wayne Circuit Court of Indiana and has duly qualified and is now acting as Receiver of Farmers Bank of Milton, Indiana. CLAUDE S. KITTERMAN, Receiver of Farmers Bank, of Milton. Sept. 29; Oct. 6, Oct. 13.
Source
newspapers

Newspaper Articles (9)
1. July 7, 1920 South Bend News-Times South Bend, IN
Article from South Bend News-Times, July 7, 1920

Click image to open full size in new tab

Article Text

INDIANA BANKER STEALS $100,000 Bank of Milton Farmers' Closes Doors-Cashier Commits Suicide. By Associated Press: RICHMOND, Ind., July 6.-Oscar M. Kirlin, cashier of the Farmers bank of Milton, Ind., looted the bank to the extent of $100,000, according to charges made in a suit for receivership filed in circuit court here Tuesday. Kirlin committed suicide July 1. The bank did not open for business this morning. The suit was filed by the stockholders of the bank and names the banking company and J. L. Harmeir, former partner of Kirlin and administrator of his estate. The complaint alleges that the books of the bank have not been properly kept for more than three months and that at this time P is impossible to tell just what is the actual condition. It is stated that there were notes with a face value of $90,000 in the bank. which are believed to be worthless, and that there is a shortage of several thou sand dollars in the cash account of the bank. Kirlin's estate contains a large number of shares of 01. stock, and other stocks of no value, and the complaint alleges that he converted large sums to his own uses. The deposits of the bank are $100,000. and the capital stock $25.000. The liabilities are placed at $150,000.

2. August 30, 1920 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, August 30, 1920

Click image to open full size in new tab

Article Text

WILLIAMS ESTATE ASKS TO MAKE LOAN A second court action resulting from the recent failure of the Farmers Bank of Milton has been instituted in the petition filed with Judge W. A. Bond by Carl T. Williams and Paul T. Caldwell, as executors of the estate of the late Albert E. Williams, a Washington township farmer. for an order to borrow $2,000 in the furtherance of their trust. The petition has been approved by the court. It was represented to the court that the loan was made necessary by reason of the fact that the funds of the estate, amounting to $1,800, were on deposit at the Farmers Bank and could not be withdrawn until the receiver for the bank was prepared to make a settlement. It was stated in the petition that it was "problematical" when the receiver will be enabled to pay the estate's funds to the executors. Under the provisions of Williams' will, Mrs. Flora B. Williams, the widow, is to be paid one-third of the annual net income derived from the farm of 180 acres, the payments to be made semi-annually and in no event to be less than $500 per year. In their petition the executors state that a payment is now due to the widow and that the inheritance tax must also be paid. It is also stated that funds are required at this time for the operation of the farm, for the making of necessary repairs and for the payment of general taxes. To meet these obligations the executors asked authority to make a loan of $2,000. Last week the receiver of the Farmers bank filed suit to collect a claim of $3,161.75, alleged to be due on a promissory note said to have been evecuted by Williams. The executors of the Williams' estate disallowed the claim on the ground that the note in question was fraudulent.

3. September 15, 1920 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, September 15, 1920

Click image to open full size in new tab

Article Text

OMER KIRLIN WILL REFUSE TO PAY BOND One of Sureties on Alleged Bond to Contest Payment of Receiver's Claim Against Him of $100,000. STOCKHOLDERS LIABLE Omer Kirlin, father of the late Oscar M. Kirlin, and one of the sureties on the bond his son is alleged to have given as cashier of the Farmers Bank of Milton, Ind., will refuse payment on the claim of $100,000 filed by Claude S. Kitterman, receiver for the bank, against Mr. Kirlin and the other alleged surety on the bond, the estate of the late Lycurgus W. Beeson. In filing claim for $100,000 against Mr. Kirlin and the Beeson estate the receiver alleges that the late cashier of the Farmers bank violated his bond in three particulars, that he appropriated to his own use in excess of $80,000 of the funds, bonds and notes of the bank; that he permitted insolvent customers of the bank to overdraw their checking accounts in excess of $10,000, and that he made loans in excess of $10,000 to persons whom Kirlin knew to be insolvent, the loans being advanced on unsecured notes or without sufficient security. Says Bond is Lost The receiver in submitting his claim against Kirlin's bondsmen admits that the bond alleged to have been executed by Kirlin has been lost or destroyed. The receiver has filed with his claim what he purports to be an accurate copy of the missing bond. The receiver has asked the author ity of the court to file suit, if necessary, to collect the claim entered ogainst the sureties on the "lost or destroyed" bond. Whether the Beeson estate will reject this claim has not been ascertained. It would occasion no surprise if such action was taken by the heirs of the estate. It is generally understood that Mr. Kirlin intends to contest the claim in the courts, if necessary, in which event the principal question involved would be the authenticity of the copy of the bond which the receiver has submitted as a duplicate of the original bond Oscar Kirlin is said to have executed to the Farmers' bank. Stockholders Liable In the event the receiver for the Formers' bank would be defeated in his efforts to collect the claim of $100,000, said to represent the bank shortage, from Kirlin's alleged bondsmen. the stockholders of the bank would then be liable for the full amount of the shortage, it is said. Stockholders of barks organized and incorporated under the banking laws of the state of Indiana are liable for double the amount of their stock holdings in the event of a bank failure. The organization of the Farmers' bank at Milton was a peculiar one, however. In reality it was a private, partnership enterprise, but organized as a stock company. As a partnership concern. it is stated, the stockholders of the Farmers' bank are, under the law, held responsible to meet the full amount of the shortage in the event the shortage is not recovered from the alleged bondsmen and from the estate of the former cashier, which consisted in great part of stock holdings inventoried as valueless or worth considerably less than par value.

4. September 27, 1920 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, September 27, 1920

Click image to open full size in new tab

Article Text

# Judge Bond Fixes Nov. 26 # As Limit For Milton Claims Judge Bond in circuit court issued an order Monday fixing Nov. 26, 1920, as the last day for the filing of claims against the Farmers Bank of Milton, Ind., now in the hands of a receiver. The order provides that upon default of any creditor or claimant in so fil-ing his claim on or before November 26 without sufficient legal excuse, that all such claimants be barred from thereafter filing such claims and from participating in the distribution of the bank's assets. No effort will be made to make a distribution of funds to claimants until after Nov. 26.

5. September 29, 1920 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, September 29, 1920

Click image to open full size in new tab

Article Text

LEGAL NOTICE NOTICE OF APPOINTMENT OF RECEIVER AND NOTICE TO FILE CLAIMS In the Wayne Circuit Court of Indiana. April Term, 1920. No. 19119. George C. Florea, et al. vs. Farmers Bank et al. Notice is hereby given that the undersigned has, in the above entitled cause, been appointed by the Wayne Circuit Court of Indiana and has duly qualified and is now acting as Receiver of Farmers Bank of Milton, Indiana. Pursuant to Order of said Court. any and all persons having, holding. alleging or desiring to make claims against said Farmers Bank or against said Receivership Estate of said Bank are hereby notified that, by virtue of said Order of Court, they are each required to file with the undersigned, Claude S. Kitterman. as such Receiver. at the Farmers Bank Building in Milton, Indiana, or with said Receiver at the First National Bank of Cambridge City, Indiana, at Cambridge City, Indiana, on or before the 26th day of November, 1920. verified statements of their claims, generally in such form as is required by the Decedents Estate Act of the State of Indiana with respect to the filing of claims against such Estates: Notice is further hereby given that, by virtue of said Order of Court, upon default of any such creditors or claimants in SO filing their said claims on or before said 26th day of November. 1920, without sufficient and legal excuse for such default to be thereafter found and adjudged by the Court. all such persons, claimants and creditors are barred from thereafter filing such claims against said Receivership Estate of said Farmers Bank. and from participating in the distribution of the assets of said Farmers Bank through said Receivership. CLAUDE S. KITTERMAN, Receiver of Farmers Bank, of Milton. Indiana. Sept. 29: Oct. 6, Oct. 13.

6. October 13, 1920 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, October 13, 1920

Click image to open full size in new tab

Article Text

LEGAL NOTICE NOTICE OF APPOINTMENT OF RECEIVER AND NOTICE TO FILE CLAIMS In the Wayne Circuit Court of Indiana, April Term, 1920. No. 19119. George C. Florea, et al. vs. Farmers Bank et al. Notice is hereby given that the undersigned has, in the above entitled cause, been appointed by the Wayne Circuit Court of Indiana and has duly qualified and is now acting as Receiver of Farmers Bank of Milton, Indiana. Pursuant to Order of said Court, any and all persons having, holding, alleging or desiring to make claims against said Farmers Bank or against said Receivership Estate of said Bank are hereby notified that, by virtue of said Order of Court, they are each required to file with the undersigned, Claude S. Kitterman, as such Receiver, at the Farmers Bank Building in Milton, Indiana, or with said Receiver at the First National Bank of Cambridge City, Indiana, at Cambridge City, Indiana, on or before the 26th day of November, 1920. verified statements of their claims, generally in such form as is required by the Decedents Estate Act of the State of Indiana with respect to the filing of claims against such Estates: Notice is further hereby given that, by virtue of said Order of Court, upon default of any such creditors or claimants in so filing their said claims on or before said 26th day of November, 1920, without sufficient and legal excuse for such default to be thereafter found and adjudged by the Court, all such persons, claimants and creditors are barred from thereafter filing such claims against said Receivership Estate of said Farmers Bank, and from participating in the distribution of the assets of said Farmers Bank through said Receivership. CLAUDE S. KITTERMAN, Receiver of Farmers Bank, of Milton, Indiana. Sept. 29; Oct. 6, Oct. 13.

7. March 19, 1921 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, March 19, 1921

Click image to open full size in new tab

Article Text

MILTON RESIDENT SUES BANK RECEIVER Alleging that partners in the Farmers Bank of Milton knew that Oscar M. Kirlin, deceased cashier, was dishonest and unreliable two years previous to the time of his death, William Hicks, of Milton. filed suit against Claude S. Kitterman, receiver for the defunct bank, to collect a $500 Fourth Liberty loan bond, interest and costs in Wayne circuit court Saturday morning. Ray K. Shively, attorney for Mr. Hicks. obtained permission to sue the receiver from Judge Bond Friday afternoon. The complaint is filed in three paragraphs charging conversion. The first states that the bond was placed in the bank on October 18, 1918 and the same has not been returned to the plaintiff. The second paragraph alknew that Kirlin was dishonest and alleges that the partners in the bank unreliable but notwithstanding this knowledge the partners negligently continued to keep him as cashier. The third paragraph charges carelessness and negligence on the part of the partners and asks proper relief for the plaintiff, Mr. Hicks.

8. April 7, 1921 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, April 7, 1921

Click image to open full size in new tab

Article Text

# RECEIVER OF MILTON # BANK SUES FOR $2,500 Suit for $2,250 on promisory notes and overdrafts was filed by Claude S. Kitterman, receiver for the Farmers bank, of Milton, against William H. Miller, of Milton. in Wayne circuit court Thursday morning. The complaint is prepared in five paragraphs. The first three are for promissory notes, and the others for accounts due and overdrafts. According to the complaint notes for $115.92, $418.95, and $183.82 are now due with interest and an overdraft of $958.55 with interest is to be collected. The attorney's fees and interest bring the total amount to $2,250. Five suits that had been filed against Mr. Kitterman, as receiver for the defunct bank, on claims that had been disallowed by him, were dismissed at the costs of the defendant in Wayne circuit court Thursday morning. These were the suits of the Doddridge-Beck company; Charles H. Shank, on demand of $113.86; Mary J. Borders, demand of $37.02; James Ferguson, claim $125; and Banker's Law publishing company, claim $50.

9. August 2, 1921 Indiana Daily Times Indianapolis, IN
Article from Indiana Daily Times, August 2, 1921

Click image to open full size in new tab

Article Text

File Suits Against Bank's Stockholders Special to The Times RICHMOND, Ind., Aug. 2.-Direct suit against the stockholders of the defunct Farmers Bank of Milton, have been filed in Wayne Circuit Court. Three complaints totaled $23,614.76. Suits of other claims have been brought against the receiver. Claude S. Kitterman of Cambridge City. Albert Anderson, who operated a grain elevator at Milton makes the largest demand, $21,001.08 with interest. Other claimants are Louis P. Klieber, for $947, and Andrew Kerber, for $1,666.68. plus Interest for the time of the deposits. The stockholders, whom the complaint charges were operating in partnership, are named as Charles Ferguson, Cyrus O. Hurst. M. D. Doddridge, L. B. Wilson, Joseph Clevenger, George C. Florea. James C. Mount and John H. Mount.