e83d06b6Full suspension, Books examined
Other: Directors closed the bank and called state bank examiner; attempted consolidation negotiations with another bank; appointment of a receiver was later discussed/temporarily suspended and ultimately a receiver handled the bank's affairs.
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DIRECTORS CLOSE BANK Monticello Institution Shuts Doors to Halt Run. By United Press MONTICELLO, Ind., May 18.Doors of the Monticello National Bank were closed today by order of the directors. Depositors thronged the lobby of the bank Monday afternoon to withdraw their money. The run was resumed today and the doors of the bank were closed. Rumors that T. W. O'Connor, president of the bank, had made an assignment were blamed for the run. Such assignment was denied by directors.
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Called to ScrutinBank Examiners to Prove that InRecords stitution is Sound. (Special the MONTICELLO, Ind., May the Monticello NaThe doors of tional Bank were not opened for following what business today small "run" term was rectors depositors secure their money State Bank exMonday afternoon. the inaminers are in charge been sent here stitution having the board of directthe request of following its called meeting. bank said The on the had its inception in rumors have that Tom O'Connor, to the effect the bank, had made president of of his property. assignment unfounded, the rumors are directors state. The directors announced today that they were positive that neither the depositors or stockholders of lose by the institution would the belief transaction and would be the situation that within few days straightened out resumed by the bank. and business The invitation to have examiners the records of the instituwas taken means tion vince the public that the status the officials the bank was good, declare. "run" of Monday Belief that the followed by would have been this morning was expressanother who state that every ed by officers. had failed. effort quiet rumors The Monticello National Bank and with capitalized $50,000 $28,000 surplus. In showing of addition to O'Connor president. in are: Henry the officers charge McReed, and Paul Cuaig, cashier, assistant cashier.
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CLOSE DOORS AND SAY THERE WILL BE LOSS Ind., May The Monticello Natinoal bank closed today by orders of the directors. The decision to close followed heavy withdrawals yesterday by positors. The bank is capitalized at $50,000 Directors said the withdrawals precipitated by rumors that bad investments of the bank's funds had been made O'Conner. president, and reports that he had made an assignment of his property. O'Conner said to have been in financial difficulty recently but denies he has made any assignment. Bank there would be no loss positors and that the closing was considered necessary to an adjustment of the institution's affairs.
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NATIONAL BANK IS CLOSED TODAY FOLLOWING RUN Audit of Resources Now Being Made By Bank Examiner. CONSOLIDAT'N NOT EFFECTED Following a more or less feverish run on the bank all day yesterday by depositors, during which more than $35,000 in cash was withdrawn, the Monticello National Bank this morning did not open its doors. A sign was posted on the front door saying that the institution was closed by the board of directors and was now in charge of bank examiner McGrath, who came here from Indianapolis Monday evening in response to a call from officials of the bank. Mr. McGrath said that he had no statement to make. A check of the resources was being made today, and it is probable that an immediate effort will be made to liquidate outstanding indebtedness. The run on the bank Monday was caused by the report which became prevalent over the community that T. W. O'Connor, the president of the bank and the majority stockholder, was contemplating making an assignment of his property in favor of his creditors. Mr. O'Connor, who has been extensively interested in farming, has suffered severe reverses during the past several years of agricultural depression, and the deflation of farm values has swept away tens of thousands of dollars of what appeared to be conservative assets. When it became certain that the National Bank was in difficulties and might have to close its doors an effort was made to effect a consolidation with one of the other banks in the city. A conference with the directors of another institution lasted until five o'clock this morning, but an agreement was not reached. While no formal statement was issued by the directors of the National Bank, the general impression is that the depositors will be on April 12th. The public statement printed at that time showed total resources amounting to $419,522.15. The total loans were $305,417.64. Deposits amounted to $240,525.14. The cap- a ital stock of the bank was $50,000, the surplus $20,000 and undivided profits $1,594.61. None of the other banks in town are affected by the closing of the National Bank, it is understood. The probable result on the business of the community as a whole is hard estimate at this time, and depends largely on the stability and good sense of the general public. If the people do not become excited, general business will go ahead as usual.
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HEAVY RUN CLOSES WHITE COUNTY BANK Monticello National Bank at Monticello. White County, capitalized at $50,000 was closed by order of the directors The closing of the bank followed by depositors late Monday after According the board of direc. the the of rumors. Officers of the said the positors would loss and that closing of the institution deemed necessary to state bank examiners and have the affairs of the bank adjusted The the bank are W Conner president: Henry Reed, cashier. and Paul McClung. assistant cashier
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Monticello National Bank Closed Tuesday Noted Financial Institution Now in Hands of Federal Bank Officers for Investigation. Following a un on the bank Monday during which more than $35,000 in cash was withdrawn. the Monticello National Bank at MonticeNo did not open its doors Tuesday. A sign was posted on the doors saying that the institution had been closed by the board of directors and was in charge of the state bank examiner who was called Monday evening by the officials of the bank. The run on the bank Monday was caused by a report which was prevalent in that city that T. W. O'Connor, the president of the bank and leading stock holder was contemplating making an assignment for the benefit of his creditors. While no formal statement has been issued by the officials of the bank the general impression is that the depositors will be paid in full. The last call of the bank was made on April 12th. The public statement printed at that time showed total resources amounting to $419,522.15. The total loans were $305,416.64. Deposits amounted to $240,525. The capitol stock of the bank was $50,000, the surplus $20,000 and undivided profits $1,594 61. None of the other three banks in Monticello will be affected by the closing of the National Bank it is understood. When it became certain that the National Bank was in difficulty and might have to close its doors an effort was made to effect a consolidation with one of the other banks in the city. A conference with the officers of another institution was held but no agreement could be reached. The National Bank was founded by T. W. O'Connor when the building was erected something like twenty-two years ago and has been an outstanding figure in the financial lite of the city ever since. Following the closing of the National Bank, Daniel Fetters. a stockholder in the Cornbelt Mortgage Loan Co. filed a complaint asking that a receiver be appointed for that institution alleging that it was insolvent. Act. ing upon the complaint, the court appointed G. V. Love, receiver under a $50,000 bond. The Cornbelt Mortgage Loan Co. was organized in 1916 with $100,000 capitol and about sixty stockholders. T W. O'Connor has been a director and president of the company until about six weeks ago when J. F. Hacken burg was elected president.
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NATIONAL MONTICELLO Closes Doors Following Run Monday BANK EXAMINER In Loss to Depositors Difficulties of Officers is Cause. sign reading bank closed by order the Directors and National Bank Examiner taken charge" signed McGrath, Examiner was posted the door Monticello National Bank Tuesday morning. The tion of the directors closing the bank and calling for Bank Examiner to take charge followed small run the bank Monday which some of withdrawn from the institution several days previous that there had been consistent afloat to the effect that O'Connor, president of the institution, about make ment for the benefit of his crediand thought that this gether with the fact that county showed some of the bank officials to be disposing of their realholdings for the recent of deposits which culminated in the run on the bank Monday. During the day Monday some of the other banks of the city fearing that the might become contagious and spread to other banks fortified themselves by bringing considerable of currenfrom the depositories in Chiorder to be able to meet any demands that might be made them nothing of the kind upon developed and by Tuesday afterhad quieted down and moving along almost normal basis. When became apparent Monday evening that the National Bank would have hard time to weather the storm conference called the Examiner and the Directors of another bank the city hopes that consolidation rangement could be made but all night conference failed to develsuch and the an lowed. Examiner McGrath was at the National Bank throughout the day Tuesday but called away Tuesevening and another examiner took charge Wednesday. Neither the examiners the officials nor the bank have yet given out by official statement but it is the prevailing opinion among the other the that the institution probably solvent and that none of the depositors lose money by closing. Many the depositors will, however, be for time by havtheir funds and working capital up for the present. They call attention to the that the results the will depend largely the good judgment of the public state that there is no reason why the business affairs of Monticello and this community should go usual. W. O'Connor, who has been National Bank president since its organization in 1902, has been extensive land owner this counties for adjoining number and is thought years that the deflation in real estate which has been going on for prices several years is the past the condition that gave rise the rumors that he would probably assignment. This first serious bank that occurred in White trouble but due to County many years better transportation facilities ready availibility money from the city depositories and more stable system than was existence the early days, the run the bank, experienced in this case, did not take of frantic aspects of the any the "bank runs" of the earlier days are depicted to those of this by the moving pictures. There tion no crowds, disturbance of kind, the public, any including the depositors rather feeling of security the playing banking system of this day feeling that their interests be by the would properly protected officials the bank and the governing their conduct. there considerable though withdrawal of deposits Monday, about the there no activity that would indicate to the bank general public that there anything in only small percentage of the people were aware of was prountil Tuesday morning. gress
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Run on Bank Closes Doors Rumors relative an alleged assignment of property by nor, president of the Monticello National Bank, were responsible for run it Monday which the doors. After the run in the afternoon, the board of directors met in the evening decided to close the bank. Bank examiners were expected arrive shortly after the run to investigate. Henry Reedy is vicepresident of the bank, which was capitalized Miss Lineback, of Carthage, Ind., student at University. was recently elected member of Mortar Board. national honorary senior woman's She the president of Mu Phi Epsilon, musical sorority.
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RECEIVERSHIP OF NATIONAL BANK IS SUSPENDED Quiet Efforts Being Made to Reorganize and Open Bank Again. EXAMINER GOES TO CHICAGO Information has been obtained that the appointment of David M. Boyle, of Lafayette, as receiver to take charge of the Monticello National Bank, has been temporarily suspended by the comptroller of the currency pending reorganization of the bank or other negotiations. The appointment of a receiver, it is said, would not mean that the bank is solvent or insolvent. It is unlikely that the examination has
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IS MADE BANK RECEIVER FOR TO HANDLE MEBANK NAMED DARYVILLE INSTITUTION. secretary of the David M. Boyle, Trust of Loan & Company been appointed receiver fayette has National Bank for First McIntosh, by United States comptroller of curwill wind up the busirency. He ness of the bank, which closed its doors about ten days ago. Mr. Boyle was year ago for the Monticello pointed receiver Bank Monticello, National through his bank was organized, taking assets of the bank. the receivership terminated less than thirty days. On achis satisfactory handling the Monticello bank, the of requested that troller name be permitted to remain the books the government for appointments in this territory. Although accepted untangling the appointment Medaryville bank, Mr. fairs of Boyle continue to manage the office of the City Trust secretary's Company.
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SHAREHOLDERS OF BANK BELIEVE IN SANTA CLAUS MONTICELLO, Ind., December 11 here are convinced there is a Santa Claus. Shareholders of the defunct Monticello National Bank have received word from J. R. Gamble, Washington, general receiver, that $5,411 is being returned for distribution those who paid a $75-a-share ason a proportionate This the residue left after all claims against the bank have been settled.