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Milton Bank Closed Following Suicide RICHMOND, Ind.) July 76 The doors of the Farmers' bank of MIIton are closed and Claude Kittersman, a banker of Cambridge City, has been appointed receiver, follow. ing close upon the suicide of Oscar M. Kerlin. The receiver was appointed on the application of the board of directors and stockholders in an action filed in Judge Bond's court.
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WHY WAS FUND OF COUNTY IN MILTON BANK? Examiners Ask Reason for Deposits Issued to Ed Weidner-Camp's Report Says Institution Solvent. KIRLIN'S BOND MISSED (Special to The Palladium.) INDIANAPOLIS, July 29.-Although the state banking department is no longer concerned in the affairs of the Farmers' Bank of Milton, Ind., because the bank is now in the hands of a receiver officials of the department are speculating on the fact that Oscar M. Kirlin, who was cashier of the Milton bank and who committed suicide the first of this month, issued seven or eight $5,000 certificates of deposit to E. J. Weidner, treasuer of Wayne county. Why Weidner should have such an account with the Farmers' Bank at ) Milton is questioned. The books of $ the bank showed deposits by Weidner ) of only $50. One of the certificates issued for $5,000. it is stated, was ree turned to the bank the day Kirlin shot himself. t "Solvent" In September, 1919. In the light of the present chaotic , condition in the affairs of the Farm1 ers' Bank at Milton the report subt mitted to the state bank department by one of its examiners, Charles F. Hurst, under date of Sept. 15, 1919, on the last examination previous to the suicide of Kirlin, is of interest. This report reads: "This bank is solvent. Capital unimpaired. They claim no bad loans. Past paper due is large. They claim it is borrowed by farmers and that it is all good. I ordered it renewed or 1 collected immediately. They are : badly overloaned. I ordered them to cease loaning and take up their rediscount. Also ordered them to raise $ their reserve. Officers are capable and, I believe, honest. Books are $ fairly well kept and in balance except $ C. D., which is $50 off. Ordered them ) to locate the difference and advise t me. Loan to officer charged off dur3 ing examination." Charles Camp, chief of the state bank department, reiterates his state) ment that there will be no loss to deI positors as the stockholders are all well to do and liable for every cent 3 they own. Bond Page is Torn Out. Mr. Camp sees something peculiar in the fact that Kirlin's bond for $ $20,000 is missing. At the September examination of the bank Kirlin was 1 ordered to provide this bond and he later reported to the bank department, in February, 1920 that he had done so. The bond cannot be located but there is evidence that it was torn out of a book in which it had been pasted. The report made last September on the Milton bank also disclosed that there were 27 accounts overdrawn for an aggregate of $842; that there were on hand $31,600 of Liberty bonds; de5 posits of $136,954 and rediscounted notes with the First National bank of Connersville, Ind., amounting to $124,560.
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MILTON BANK REPORT MADE First report made by Claude Kitterman on his receivership of the Farmers' bank of Milton, Ind., which institution was closed July 6 following the suicide of Oscar M. Kirlin, the cashier, July 1, was submitted to Judge William A. Bond, Thursday afternoon. The report was brief and listed the assets of the bank but gave no figures on the liabilities of the institution. The total assets were fixed at $245,541.99. Can't Give Exact Liabilities In the report the receiver stated that he was not able to give the exact liabilities of the bank at this time as all the claims against the institution have not been filed with the receiver. Included among the assets of the bank is an item of $66,968.12 for overdrawn accounts of customers. The receiver, in his report, expresses the opinion that not all the notes and overdrawn customers accounts will be collectable for the reason that "some of the parties of said notes and overdrawn customers accounts are insolvent." The assets of the bank are listed by the receiver as follows: Total notes receivable $339,785.54 Less notes rediscounted 171,919.60
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INVENTORY OF KIRLIN ESTATE LEAVES DOUBT Fails To Shed Light on Farmers Bank Shortage at Milton, Estimated at Large Sum. HAD 'NO VALUE' STOCKS Inventory of the personal estate of the late Oscar W. Kirlin, former cashier of the Farmers' Bank of Milton, Ind., who committed suicide last July, taken by Irvin J. L. Harmeier, administrator, and appraisement made by Frank Callaway and William H. Doney fails to shed any light on the Farmers' Bank shortage, which has been estimated variously from $100,000 to $200,000. The bank suspended operations over two months ago, shortly after Kirlin killed himself, and is now in the hands of a receiver. The appraised value of the debts due to the Kirlin estate, as shown in the report which has been submitted to the circuit court, is $16,973.20. The appraised value of Kirlin's personal effects is placed at $2,256.00, making the total appraised value of the estate $19,229.20. Much "No Value" Stock. The inventory shows, however, that a considerable amount of Kirlin's personal estate consisted of corporation stocks listed as of "no value." Among the stocks so listed is that of the Farmers Bank of Milton. Kirlin owned stock of the Farmers Bank of the par value of $1,000. Other stocks listed as valueless, with its par value, are the following: Reliance Refining company: Par value of the amount held, $2,000. Dixieland Oil company: par value of the amount held, $1,000. Rose City Oil company: par value of the amount held, $2,000. Chase Oil corporation: par value of the amount held $20. Interstate Petroleum company: par value of the amount held, $800. General Appliance company: par value of the amount held, $950. Total $7,770 "No Value" The total par value of the corporation stock held by the Kirlin estate which is listed as of "no value" is $7,770. It is also shown in the inventory that Kirlin held stock in the Doddridge-Beck company, a manufacturing concern in Milton, with a par value of $4,200. The appraised value of this stock is given as $1,290. Also included among the assets of the Kirlin estate is stock in two other corporations of a total par value of $1,900. but which shows an appraised valuation of $1,155. Kirlin held temporary receipts for notes of the Crow-Elkhart Motor corporation amounting to $6,000, bearing 8 per cent interest. These notes are appraised at $3,600. Had Promissory Notes assets are Included promissory among notes, the estate's one for $4,000 secured by mortgage, the others for relatively small amounts. Only one of these notes is listed as of no value. The total face valuation of these notes is $4,914.70 A life insurance policy for $5,000. which has been paid, is one of the largest items in the assets of the estate. It is also shown that Kirlin held half interest in the firm of Kirlin brothers, stock dealers. Four Liberty bonds of the fourth issue, each with a par value of $100 but appraised at $84.20, are held by the estate.
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JUDGE WILL DEMAND SETTLEMENT IN BANK CLAIMS; JURY CALLED It was learned Saturday that Judge William A. Bond had notified an attorney representing Claude S. Kitterman, receiver for the Farmers' Bank of Milton, Ind., that he would expect the receiver to call upon the stockholders of the bank to make a prompt settlement of all bona fide claims of the bank depositors. It is stated that the court takes the position the question of whether the alleged bondsmen of Oscar M. Kirlin, cashier of the bank up to the time he committed suicide last July, or the stockholders shall assume the bank shortage was a dispute in which only the alleged bondsmen and the stockholders were interested, and that inasmuch as this dispute might be in the courts for months, even years, it would be manifestly unfair to delay a settlement with such depositors of the Farmers' Bank who had bona fide claims, until the question of who was to assume the bank shortage should be definitely determined. Grand Jury is Called Announcement was also made Satfurday that the court would issue a call for a session of the Wayne county grand jury the first Monday in October, at which time the grand jury would be asked to investigate all criminal cases and to determine whether any acts of a criminal nature had entered into the failure of the Farmers' bank of Milton, other than the alleged speculations of its former cashier, Oscar M. Kirlin. It is expected that the investigation of the Milton bank case will be one of the first activities of the grand jury. It is understood that Prosecutor Gath Freeman is already making inquiries into the Milton bank case for the purpose of collecting evidence for presentation to the grand jury. Hardship on Depositors The closing of the Milton bank, over two months ago, has worked a great hardship on a large number of residents of southwestern Wayne county who had- on deposit in that bank practically all their funds and whose claims are known to be legitimate. With the closing of the bank, all withdrawals of deposits were suspended. In many instances patrons of the bank have had to negotiate loans elsewhere for the purpose of providing for actual living expenses.
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60 DAYS TO FILE MILTON BANK CLAIMS Judge Bond Fixes Period Following Conference With Receiver, Attorneys and Stockholders. MUST SETTLE IN FULL Following a conference with Claude S. Kitterman, receiver for the Farmers' Bank of Milton, Indiana, and attorneys representing the receiver and bank stockholders, Judge William A. Bond announced Wednesday that as soon as Receiver Kitterman prepared a petition for submission to the court he would issue an order fixing a period of 60 days for the filing of claims against the Farmers' Bank. Judge Bond stated that he would expect all claims to be submitted with in that period, following which the receiver will be instructed to make settlements in full of all bona-fide claims. Monday Judge Bond announced that he had instructed the receiver of the Farmers' Bank to arrange to make a settlement with all patrons of the bank who had legitimate claims as soon as possible, even if the receiver was required to call upon the stockholders to assume such obligations. Question Concerns Bank Only He stated that the question of whether the alleged bondsmen of the late Oscar Kirlin, who was cashier of the bank, or the stockholders should assume the bank shortage was one in which the patrons of the bank were not interested and that it would be manifestly unfair to those people who held legitimate claims to delay a settlement of their claims until the courts had passed upon the validity of the claim for $100,000 which has been filed by the receiver against Kirlin's alleged bondsmen. Judge Bond states that such claims as are not filed within the time limit of 60 days which he will establish, will be given no consideration unless a claim filed after that period was delayed in submission for a reason the court believes to be a particularly justifiable one. Progress Has Been Made. The receiver has reported that some progress has been made in the settlement of notes held by the bank, but expressed he opinion that it would require at least 60 days more to collect and pass upon all outstanding claims. While Mr. Kitterman was in Rich(Continued on Page Twelve)
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# Twenty Per Cent Milton Bank # Claims Ordered Paid by Court The Wayne county circuit court or- $59,959 on an overdraft of the Farm- dered payment of claims of depositors ers' Bank of Milton on the First Na- of the Milton Farmers' bank amount- tional bank of Connersville. These ing to 20 percent of the total claims, claims were assigned to the claimants following the filing of the report of and will be paid after the final pay- Claude S. Kitterman, receiver for the ment to depositors has been com- institution, Wednesday afternoon. pleted. The report shows that the claims Other large claims set aside to be filed total $317,155.29. Of this amount paid afterwards are those of Sarah F. $228,447 has been allowed. Expenses Hart, $11,000; Anderson and Sous of the receivership amount to $6,794. Grain company, $28,000; Washington The balance now on hand totals township, $11,000; and Wayne county, $44,841.90. $27,000. The order states that claims filed with the receiver for stock in the bank shall be settled after the first pay- ment to depositors has been made. It excludes from the first payment all depositors who are stockholders in the institution. Among the claims disallowed were: John Coyne, claims for $2.380, $2,520 and $2,014; the Doddridge-Beck com- pany, $2,500, $6,376 and $10.000; and two for Edward J. Weidner totalling over $45,000. Among the large claims filed against the bank were those totalling # Milne Will Review # Civic Needs Soon W. A. Milne, recently employed sec- retary for the Richmond Chamber of Commerce, will visit the city again before coming here to take up his work, Jan. 1, according to Walker Land, president of the organization. It was thought probable that Mr. Milne would arrive Wednesday, but he had failed to come at a late hour Wednesday afternoon. Mr. Land said Mr. Milne wanted to review the city situation as it relates to the Chamber
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Disallowed Claims of Milton Bank Form Basis For Suits suits. The various claimants and the Creditors whose claims had been disamounts claimed follow: allowed by Claude Kitterman, receiver for the Farmers' bank of Milton, filed C. W. Caldwell, $788.96; John Coyne, suits in circuit court Thursday, in ac$2,890.10; Margie I. Frazee, $500; Will cordance with an order by the court Hicks, $500; Emma B. Thornburg, which said that disallowed claims $1,000; Samuel V. Thompson, $50; Edwere to be declared as separate causes ward Fink, $50; Robert Callaway, on the issue docket and to be disposed $1,606.87; J. W. Doddridge, $4,000; Edof according to law. gar C. Denny, $100; Charles Callaway, The amounts named in the suits $200; Malinda S. Barton, $479.80; Benrange from a few dollars into the jamin Miles, $50; Cora Kellam, $100; thousands. The largest amount is John Kellam, $100; Sarah Meehan, that of the claim of County Treasurer $200; Jesse Huddleston, $50; Ann Edward J. Weidner, who claimed $45,Emma Moore, $1,021; H. R. Manlove, 870. Claude Kitterman, receiver, is $50; J. Katherine Thompson, $50; named as the defendant in all the Mary J. Borders, $37; Edna Squier, $128; Kirlin Bros. $1,468; Mrs. H. R. Manlove, $56; Charles Shank, $113.86; JUDGE BOND DECIDES James Ferguson, $125: Milton Booster club, $915; Harry C. Murley, $393; Van Crawford, $408; Mina S. ClevenHISTORIC LAND CASE ger, $50; Elmer Little, $,000; John T. Connell, $2.578; Robert A. Connell, Decision in the case of Mary Sulli$6,408, $1,350 and $404; John Faucett, van vs. Alfred Henderson handed $550; Watson Faucett, $784; Emma down by Judge Bond in circuit court More, $725.14: Bankers' Law PublishThursday morning, brought to a close ing company, $50; Mary Sills, $195; a suit that had lasted 10 years, been Hattie Sills, $168; Edward J. Weidner, argued in three counties, and had $45,870 and $295; Doddridge-Beck comcome up before two judges in this pany, $6.376. $2.500 and $10,000. county. "I have nothing to say for publicaIn his decision, Judge Bond, declartion in regard ato that matter" said ed the defendant the owner of the Claude Kitterman, when questioned property in dispute and the plaintiff Thursday as to why the claims of certain creditors had been disallowed. was ordered to pay the costs of the suit There will be no deferred payment on the accounts of Sarah Hart, AnderThe case started over the disputed ownership of some land valued at son and Sons, Washington township about $20,000 in Union county. The and Wayne county, the receiver said case had been argued in Union, Thursday. These claims were allowed with the others and through an error Fayette, and Wayne county courts. Major Stanford, an attorney from were published as slated for deferred Liberty represented the defense. payment.
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MILTON, Ind., Dec. 23.-Depositors and claimants against the Farmers' Bank of Milton decided to take immediate steps to hasten the settlement of the claims against the bank, at a mass meeting held in Grange Hall, Wednesday night. A committee of depositors was appointed to hasten complete settlement of legal claims against the bank and receivership. The committee of five appointed to work with Receiver Claude S. Kitterman and Judge Bond is composed of Edgar Beeson, chairman, Dr. C. E. Deny, secretary, Albert Anderson, Clark Faucett, and Mrs. Mary Walker. Over 100 depositors and claimants were present at the meeting with a large number of interested parties and stockholders in the defunct bank. Address Gathering. Albert Anderson, of Richmond, formerly of Milton, and Attorney William Kelly, of Richmond, talked to the meeting advising them on the appointment of a committee. It was urged that the depositors had waited patiently that many were in need of the money, and that some steps should be taken to hasten action by the court and receiver. Attorney Kelly stated that it was only natural that considerable time would elapse before the payment of claims on the bank. The poorly kept records and bad business condition of the bank, together with the fact that the validity of many claims filed were questioned, were given as cause for much of the delay. He told the claimants that they were protected by the stockholders and would ultimately re-
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# Claims Disallowed # in Milton Bank Case Special to The Times RICHMOND, Ind., Jan. 24.-Claim of Claude Kitterman, receiver of the Farmers' Bank of Milton, for $100,000, against the estate of Oscar Kirlin, cashier, who ended his life when a shortage of $125,000 was discovered, has been disallowed by the Probate Court. A claim of $100,000 against Emma H. Beeson, administratrix of the estate of Lycurgus Beeson, her husband, who was a bondsman of Kirlin, also has been disallowed and transferred to the civil docket.
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Circuit Court , Claims of John Coyne and C. W. Caldwell against Claude S. Kitterman, receiver for the Farmers' Bank of Milton, Ind., were stricken from the docket Tuesday morning on motion by the claimants at the costs of the receiver. Robert L. Hungerford was granted a divorce from Lillian B. Hungerford by Judge Bond in Wayne circuit court Tuesday on the grounds of cruel and inhuman treatment.
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CREDITORS OF MILTON BANK WILL RECEIVE ADDITIONAL DIVIDEND Creditors of the Farmers' bank of Milton will receive a further dividend of five per cent, according to an order issued by Judge Bond in Wayne circuit court Thursday on the acceptance of a partial report of the receiver for the defunct institution, Claude S. Kitterman, of Cambridge City. Claims amounting to $287,946.89 for certificates, checking accounts and Christmas Savings accounts have been filed with the receiver, the report states. Of this amount obligations for just and valid claims that have been allowed amount to $226,234.68. There is now $38,414.14 to be distributed among the creditors of the firm. Previous to this time $43,278.31 had been distributed. This was the 20 per cent dividend that was declared by the receiver last November. Additional Claim A report of additional claims filed with the receiver since the expiration of date for filing claims, and which are considered just and valid by the receiver and which he reconmended the court to allow were allowed by Judge Bond. These were William H Robbins, $74; George Borgerding, $10.15; Floyd Smith, $50; B. H. Dodd ridge, $32.10; Esther Hoshour, $6. The report states that Mr. Kitterman has collected and reduced to cash, notes and claims in favor of the bank with what cash was on hands in the bank at the time of his taking possession to the amount of $89,917.61. During the time of receivership $5,299.91 has been paid out on allowances by the court. To this was added $1,172.21 asked in the report Thursday.
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MILTON BANK FAILURE RESULTS IN FILING OF 84 ACTIONS IN WAYNE CIRCUIT COURT Eighty-four cases have been filed holders in the bank, which was a private institution. Two direct suits to Wayne circuit court in connection collect from the receiver on money with the failure of the Farmers' bank deposited with the bank have been of Milton. Several more will probstarted. ably be added to this list soon, as Start 23 Actions. depositors are now starting action diDuring the past two months 23 acrectly against the stockholders to coltions have been started. Efforts to lect their money. collect money deposited in the bank The first case against the bank was directly from the stockholders has filed on July 6, 1920. This was two been made in 12 cases now before the days following the suicide of Oscar M. court. Kirlin, cashier of the bank. The bank The First National bank of Connersdid not open its doors on July 6 and ville has brought action in 11 inaction was started by George C. stances against executors of notes and Florea et al vs. Farmers' bank of Milthe receiver for the Milton bank, to ton and Irvin J. Harmeier, adminiscollect sums due it on notes sold betrator of the estate of Oscar M. fore the bank failed. Kirlin. The reports filed by the receiver at Appoint Receiver different times during the past year Immediate appointment of a receivare volumnous. These have lists of er was asked and Claude S. Kitterman all claims allowed and disallowed, toof Cambridge City was appointed to gether with settlements made thus take over the affairs of the defunct far.