6085. Farmers' bank of Milton (Milton, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
July 1, 1920*
Location
Milton, Indiana (39.786, -85.156)

Metadata

Model
gpt-5-mini
Short Digest
9a299270

Response Measures

None

Description

Bank suspended business July 6, 1920 after cashier Oscar M. Kirlin committed suicide. Receiver Claude S. Kitterman was appointed and the bank remained in receivership with numerous suits and investigations; no contemporaneous run is reported in the articles.

Events (4)
1. July 1, 1920* Other
Newspaper Excerpt
Claude Kitterman, receiver for the Farmers' bank of Milton, which suspended business July 6. ... immediate appointment of a receiver was asked and Claude S. Kitterman ... was appointed to take over the affairs of the defunct institution. (receiver appointed and receivership proceedings underway).
Source
newspapers
2. July 6, 1920 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension followed the suicide of cashier Oscar M. Kirlin and subsequent discovery/allegations of mismanagement and large shortages in the bank's affairs.
Newspaper Excerpt
which suspended business July 6. following the suicide of the cashier. Oscar Kirlin
Source
newspapers
3. July 30, 1920 Other
Newspaper Excerpt
Orders issued by Judge William A. Bond ... authorized the appointment of an expert accountant to assist the receiver in untangling the banks' affairs. ... $1,000 of the $2,000 in cash, found in the bank when It suspended business, be paid over to the First National bank of Connersville to be applied to note ... (court orders in receivership).
Source
newspapers
4. October 13, 1920 Other
Newspaper Excerpt
grand jury ... thorough investigation of the affairs of the defunct Farmers' bank of Milton, Ind., which went into the hands of a receiver two months ago following the suicide of its cashier, Oscar M. Kirlin.
Source
newspapers

Newspaper Articles (9)
1. July 30, 1920 Indiana Daily Times Indianapolis, IN
Article from Indiana Daily Times, July 30, 1920

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Article Text

ORDERS ISSUED IN BANK TANGLE Accountant to Aid Receiver at Milton. Special to The Times. RICHMOND. Ind., July 30. Orders is. sued by Judge William A. Bond of the Wayne circuit court, acting on petitions submitted by Claude Kitterman. receiver for the Farmers' bank of Milton, which suspended business July 6. following the suicide of the cashier. Oscar Kirlin, show that the affairs of the bank are in a state of confusion. One of the orders from Judge Bond's court authorized the appointment of an expert accountant to assist the receiver in untangling the banks' affairs. Another order directs the surrender of original notes held by George J. Klemme for $3,000 and by Ed Wilson for $1,700 upon payment of copy notes. each in the form of a renewal and held by the First National bank of Connersville, which were executed by Kirlin without authority. This order further authorizes the receiver to treat all. similar circumstances in the same way. A third order directs that $1,000 of the $2,000 in cash, found in the bank when It suspended business, be paid over to the First National bank. of Cornersville to be applied to note for $4,500 taken out with the Farmers' bank Dy Edgar R. Beeson It is alleged in the petition that on April 2, Beeson executed the note which was then transferred to the First National bank of Connersville. which was the reserve banks for the Milton bank. It is claimed that on May 10 Beeson paid Kirlin $1,000 to be paid on the note, but Kirlin kept the monêy at his own bank, while Beeson held a receipt to show that he had made payment of $1,000 on the note.

2. August 10, 1920 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, August 10, 1920

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Article Text

PROBE AT MILTON BANK NEARING END Investigation of the affairs of the Farmers' bank of Milton, Ind., which went into the hands of a receiver a few weeks ago, is now being brought to a close and, it is said, the receiver may be able to submit his report to Judge Bond of the circuit court within the next week or 10 days. There is no indication as to what the report will reveal. Patrons of the bank are anxiously awaiting this report, for they are hopeful that a settlement of claims will be made very soon after the received concludes his work. A large number of the depositors of the Farmers' bank have been financially embarrassed by the closing of the institution owing to the fact that it will not be possible to withdraw their money until the receiver is ready to make a settlement of the claims.

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

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GRAND JURY SESSION GOES INTO NEXT WEEK It was learned Wednesday that the grand jury, which began its sessions last Wednesday, will not be able to complete its work until some time next week. The grand jury was expected to return its first indictment Wednesday afternoon against Elmer Fackson, colored, charged with the murder of Amos Carpenter colored. Probe Milton Crash The grand jury is now engaged in a thorough investigation of the atfairs of the defunct Farmers' bank of Milton, Ind., which went into the hands of a receiver two months ago following the suicide of its cashier, Oscar M. Kirlin. The purpose of the investigation is to ascertain whether any other persons were implicated with Kirlin in his alleged criminal mismanagement of the bank's affairs. The bank investigation has been in progress all this week. Quite a number of witnesses have been examined and Wednesday a number of other witnesses were summoned to appear before the jury.

4. October 16, 1920 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, October 16, 1920

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AUDIT IS ASKED FOR ACCOUNTS OF TREASURER State Board of Accounts Requested by Prosecuting Attorney to Audit Books Beginning Jan. 1, 1920. GIVES NO EXPLANATION It was learned Saturday that Gath P. Freeman prosecuting attorney of Wayne county has requested the state board of accounts to make an audit of the books of the treasurer of Wayne county from January 1 this year to the present time. Mr. Freeman has informed the state board of accounts that he will keep the grand jury of the Wayne circuir court in session until this audit has been completed. Offers No Explanation. Under ordinary circumstances the state board would make no audit of the books of the treasurer of Wayne county for 1920 until some time after the first of next year. No explanation has been offered for the action of the prosecutor in asking for the 1920 audit of the treasurer's books at this time. It is presumed there is some connection with the prosecutor's action and the investigation the grand jury has been making of the affairs of the Farmers' bank of Milton, Ind., which was placed in the hands of a receiver over two months ago, following the suicide of Oscar M. Kirlin, the cashier. Grand Jury Investigates The purpose of the grand jury's investigation of the affairs of the Farmers' bank is to ascertain, it is stated, whether any persons were associated with Kirlin in criminal activities leading up to the failure of the bank. It is understood that next Monday the grand jury will return several indictments as a result of investigations of various criminal matters. The grand jury adjourned Thursday out of respect for Judge William A. Bond, whose mother died that day. The jury will resume its sessions Monday morning. It is not known how long the jury will remain in session.

5. April 11, 1921 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, April 11, 1921

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SEVEN DIVORCE SUITS DISMISSED MONDAY Seven suits for divorce were dismissed in Wayne circuit court Monday These were as follows: morning. Mattie Vertrees vs. Thomas W. Vertrees; Sadie J. Gard vs. Clarence D. Gard: Hazel Gertrude Reece VS. Ernest Reece; Jessie Slusher vs. Murial Slusher; Anna Morton vs. James H. Morton and Lavon G. Zook VS. Russell Zook. Other cases dismissed were Milton Booster club vs. Claude S. Kitterman, receiver for the Farmers' bank of Milton; Daniel J. Nolte vs. Daisy Foster to foreclose a chattel mortgage of $657.76: and Silas W. Bricker VS. Noble G. McKinley to foreclose a mechanics lien of $72.55

6. April 23, 1921 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, April 23, 1921

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Circuit Court Ethel Lewis, of Muncie, was fined $25 and costs and sentenced to 30 days at the home for friendless women, on a statutory charge. filed in city court Saturday by Elsie Wilson, of Muncie. Charles Wilson. of Muncie, escaped from the city after Miss Lewis, with whom he had been living, had been arrested. Julia Gillom. colored. was granted a divorce from George Gillom in Wayne circuit court Saturday morning. Abandonment was alleged in the complaint. Two claims against Claude S. Kitterman. receiver for the Farmers' bank of Milton, were dismissed at the costs of the defendant in Wayne circuit court Saturday morning. The claim of Kirlin Brothers for $1468.91 was disallowed and a claim for $1415 was allowed. The claim of Edna Spuier for $128.19 was disallowed and applied on a note.

7. August 22, 1921 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, August 22, 1921

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CONNERSVILLE BANK SUES FOR $11,274 Actions to collect on notes trans ferred by the Farmers' bank of Milton to the First National bank of Connersville were started in Wayne circuit court Monday, when 10 suits, aggregating $11,274.06, were filed by the Connersville bank against the executors of the notes and Claude S. Kiiterman, receiver for the defunct bank The complaints state that the notes which were purchased by the plaintiff, have not been paid and ask the value of the notes, plus interest, attorney's fees and contingent costs. The complaints are filed against th following persons: Charles Dailey. $1,324.06; John T. Connell, $600: Jacob Schneider, $625; Park M. Man love, $1,525; Elmer Lowry, $350; Herman and Charles Wolford, $1,625; The Doddridge-Beck company, $3,000; Nora B. Scott, $1.300; Vesper B. Richardson, $400; and Ozro Dailey, $525.

8. August 27, 1921 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, August 27, 1921

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Eighty-four cases have been filed in Wayne circuit court in connection with the failure of the Farmers' bank of Milton. Several more will probably be added to this list soon, as depositors are now starting action directly against the stockholders to collect their money. The first case against the bank was filed on July 6, 1920. This was two days following the suicide of Oscar M. Kirlin, cashier of the bank. The bank did not open its doors on July 6 and action was started by George C. Florea et al vs. Farmers' bank of Milton and Irvin J. Harmeier, administrator of the estate of Oscar M. Kirlin. Appoint Receiver Immediate appointment of a receiver was asked and Claude S. Kitterman of Cambridge City was appointed to take over the affairs of the defunct institution. It was estimated at that time that the bocks of the bank would show a shortage of $125,000. In trying to untangle the affairs of the institution the receiver has had considerable difficulty in selecting between claims. Fifty suits have been brought against the bank through the receiver to establish valid claims. Question Execution The execution of several notes has been questioned. Signatures on some of the paper held by the bank have been declared forged, by interested parties. Claude S. Kitterman, receiver, has brought seven suits to collect on notes held by the bank. One suit charging conversion was filed against the stock-

9. July 21, 1922 The Richmond Palladium and Sun-Telegram Richmond, IN
Article from The Richmond Palladium and Sun-Telegram, July 21, 1922

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# CONNERSVILLE BANK # SUITS COMPROMISED Suits of the First National bank of Connersville against the Doddridge-Beck company and Charles S. Kitterman, receiver of the Farmers' bank of Milton, and of the Doddridge-Beck company against the Farmers' bank of Milton were compromised in circuit court Friday and a settlement by agreement reached. The suits were over notes of the Doddridge-Beck company, held by the Farmers' bank and the First National bank, of $3,500 and $3,960, and a check for $6,367.97, made by the company in favor of the Farmers' bank. By the terms of the settlement, the company is to receive the cancelled notes and the receiver of the bank is to accept the check.