6112. Commercial Bank (Morristown, IN)

Bank Information

Episode Type: Run → Suspension → Unsure
Bank Type: state
Start Date: May 12, 1893
Location: Morristown, Indiana (39.673, -85.699)

Metadata

Model: gpt-5-mini
Short Digest: 9bd31505

Response Measures

Full suspension

Other: Bank closed its doors 'from fear of a run'; managers expected to 'bridge over the difficulty' and resume next day.

Description

Contemporary reports (May 12–13, 1893) state the Commercial Bank of Morristown closed this morning from fear of a run and was listed among institutions affected by the suspension/failure of the Columbia National (Dwiggins & Starbuck). Newspapers say managers were confident of 'bridging over' and resuming business 'to-morrow', but no clear, contemporaneous report of a successful reopening appears in the provided articles. Thus a run preceded suspension, but final outcome (reopening vs permanent closure) is unclear.

Events (2)

1. May 12, 1893 Run

Cause: Correspondent
Cause Details: Panic/withdrawal fears triggered by the failure/suspension of the Columbia National (Dwiggins & Starbuck) and affiliated banks; bank closed from fear of a run.
Measures: Managers said they could 'bridge over the difficulty' and resume business the next day; confidence communicated to depositors.
Newspaper Excerpt: MORRISTOWN, IND., May 18-The Commercial Bank of Morristown closed this morning from fear of a run.
Source: newspapers

2. May 12, 1893 Suspension

Cause: Correspondent
Cause Details: Suspension/closing occurred as part of a wave of closures tied to the Columbia National Bank's suspension and the Dwiggins-Starbuck bank network's collapse; some reports list it among suspended/failed banks controlled by that group.
Newspaper Excerpt: Commercial bank of Morristown, Ind., closed this morning; listed among banks that failed/closed due to connection with Columbia National.
Source: newspapers

Newspaper Articles (8)

1. May 13, 1893 Richmond Dispatch Richmond, VA

Article from Richmond Dispatch, May 13, 1893

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RICHMOND, VA., SATURDAY, MAY 13, 1893. fa of which $13,000 was subscribed by Dwiggins, 81 Starbuck & Co., of Chicago. The deposits B amounted to $30,000 and the loans something THE PRIZE DIVIDED. more than that. III MONROEVILLE, IND., May 12.-The bank here. a; n branch of the Chemical National Bank of hi BETWEEN DR. HAYS, OF OXFORD, AND Chicago, closed its doors to-day. A statement be as to the condition of the bank cannot be given. DR. GIBBON, OF CHARLOTTE. re MORRISTOWN. IND., May 18-The Commercial g Bank of Morristown closed this morning from DE Death of Colonel Thomas. Former Chief fear of a run. There is confidence in the manaer ger's ability to bridge over the difficulty and reof the Cherokees-Will Move to Ports. el sume business to<thorrow. No uneasiness is felt mouth-Raleigh's Bank Statement. by depositors. M MONTICELLO, IND., May 12.-The Commercial Bank of Brookston closed to-day. The princiA [Correspondence of the Richmond Dispatch.] pal stock is owned by the Dwiggins syndicate.

2. May 13, 1893 The Morning News Savannah, GA

Article from The Morning News, May 13, 1893

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BANKS GOING 10 SMASH. Branches of the Chicago and Indianapolis Concerns Closing. Eight or Ten Small Institutions Forced to Close Their Doors- The Liabilities and Assets in Most Instances Do Not Represent Large Amounts. Some of the Officials Not to Be Found. Cincinnati, May 12.-The private banking firm of Dwiggins, Starbuck & Co. has failed. THE DUNKIRK BRANCH GOES. Portland, Ind., May 19.-The Dunkirk National Bank of Dunkirk, owned and controlled by Dwiggins, Starbuck & Co of Chicago has failed. Its liabilities are at least $75,000. The firm owns a number of other banks and these are reported to have gone to the wall. A CRASH AT CHARLEVOIX Charlevoix, Mich., May 12.-W. P. Brown & Co., bankers. doing business under the name of the Bank of Charlevoix, have made an assignment to R. W. Kane. No statement has yet been made as to the cause of the suspension. BANKERS SKIP TOWN. Paw Paw, Mich., May 2.-Great excitement prevails at Lawton. The managers of the local bank did not open the institution this morning, having left town last night. Citizens have some $18,000 deposited in the bank. TWO SHUT UP IN INDIANA. Kokomo, Ind. May e.-The state bank of Russiaville did not open its doors this morning. It was a small institution controlled by the Columbia National Bank of Chicago. Some of the stock held by farmers in the vicinity The officers claim that neither the depositors or stockholders will lose anything The bank of Greentown has closed its doors. The suspension is due to the suspension of the Chemical National Bank of Chicago. CAN'T FIND THE OFFICIALS. Toledo, O., May 12. The Ottawa County Bank at Elmore, a branch of the Chicago Columbia. has closed its doors The bank officials are not to be found. HERE ARE THREE MORE. Indianapolis, Ind. May The branch banks of the Columbian National at Moreystown and Greenwood are said to have failed, The Moreystown bank is of considerable importance, having a capital of $75,000. The Farmers and Merchants' Bank of Geneva, Ind.. closed its doors at noon. It was the oldest institution of the kind in the town. The Bank of Spiceland of Spiceland, Ind., suspended to-day. The bank was state institution, with $36,000 capital, of which $18,000 was subscribed for Dwig gins, Starbuck & Co. of Chicago. The de posits amounted to $30,000. and the loans were something more than that MONROEVILLE IN LINE. Monroeville, Ind. May 12.-A bank here. which was a branch of the Chemical National Bank of Chicago, closed its doors to-day. A statement as to the condition of the bank cannot be given. MONTICELLO FEELS THE CRASH. Monticello, Ind., May 12.-The Commercial Bank of Brookston closed to-day. The principal stock is owned by the Dwiggins syndicate. Efforts are being made to have a receiver appointed to protect the depositors. A Lynching Rumor. Columbia, S. C., May 12.-A report reaches here late to-night to the effect that the negroes of Barnwell are gathering together to lynch the colored woman who swore away the life of John Peterson before the mob. FEARED A RUN. Morristown, Ind. May 12.-The Commercial Bank of Morristown closed this morning from fear of a run. There is confidence in the ability of the managers to bridge over the difficulty and resume business to-morrow. No uneasiness is felt by the depositors. A ROCKFORD BANK CLOSED. Grand Rapids, Mich.. May 12.-The private banking institution of Paris & Nave, at Rockford, Kent county. closed its doors this morning upon order of the proprietors, who live at Indianapolis. The bank did lively business among farmers. Nothing is known.of the bank's condition, except that it was affected by the failure of the Capital National Bank of Indianapolis. A CONVOY BANK SUSPENDS. Convoy. O., May 2.-The Farmers Bank of Convoy, O., closed its doors to day, caused by its relations with the Columbia National Bank of Chicago. No statement of the bank's condition has been made. A card on the doors states: "This bank has suspended.' DOORS SHUT AT EDWARDSBURG. Edwardsburg, Mich. May 12.-The Citizens' Bank of this place closed doors this morning. About $25,000 of local deposits together with township and a school funds, are affected. It was branch of the Chicago Columbian. PAYMENT IN FULL PROMISED. Richland, Mich., May -The Union Bank. a branch of the Columbian of Chicago, closed this morning. Cashier Watts says that depositors will be paid in full and the bank running again in two or three days. A HEBRON BANK FAILS. Hebron. Ind., May 12.-The Citizens Bank of Hebron closed its doors to-day The suspension was caused by the Columbia National failure. WHISKY DEALERS FAIL. Louisville, Ky., May 12.-The wholesale whisky firm of W. H. Thomas & Sons suspended payment this morning. The suspension at first caused some excitement. which quickly subsided when it became known that this action was the result of dullness of the whisky trade and the tight money market. The different bankers with which the firm have done business place the excess of assets over liabilities at $150,000 to $400,000.

3. May 13, 1893 The Times Richmond, VA

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MANY BANK FAILURES. Several State and Branch Institutions Shoved to the Wall. PORTLAND, IND., May 12.-The Dunkirk National Bank, of Dunkirk, owned and controlled by Dwiggins, Starbuch & Co., of Chicago, has failed. The liabilities of the firm are at least $75,000. The firm owns a number of other banks, and these are reported to have gone to the wall. "This Bank Has Suspended." CONVOY, O., May 12.-The Farmers' Bank, of Convoy. O., closed its doors today, caused by its relations with the Columbia National Bank, of Chicago. No statement of the bank's condition has been made. A card on the door states: "This bank has suspended." INDIANAPOLIS May 12.-Branch banks of the Columbia National at Moreystown and Greenwood are said to have also failed. The Moreystown bank is of considerable importance, having a capital of $75,000. The Farmers' and Merchants' Bank, of Geneva, Ind., closed its doors at noon. It was the oldest institution of the kind in the town. Another Slight Failure. CHARLEVOIX, MICH., May 12.-W. P. Brown & Co., bankers, doing business under the name of the Bank of Charlevoix, have made an assignment to R. W. Kane. No statement has yet been made as to the cause of the suspension. Managers of a Bank Disappear. PAW PAW, MICH, May 12.-Great excitement prevails at Lawton. The manzgers of a local bank there did not open the institution this morning. having left town last night. Citizens have some $18,000 deposited in the bank. Two Indiana Banks Go Under. KOKOMO, IND., May 12.-The State Bank of Russiaville did not open its doors this morning. It was a small institution controlled by the Columbia National Bank, of Chicago. Some of the stock is held by farmers in the vicinity. The officers claim that neither the depositors nor the stockholders will lose anything. The Bank of Germantown has closed its doors. The suspension is due to the suspension of the Chemical National Bank, of Chicago. Another Bank Fails. TOLEDO, May 12.-The Ottawa County Bank, at Elmore, a branch of the Chicago Columbia, has closed its doors, and the bank officials are not to be found. Private Banking Firm Fails. CINCINNNATI, O., May 12.-The private banking firm of Dwiggins, Starbuch & Co. has failed. Michigan Banks Suspend. GRAND RAPIDS, MICH. May 12.-The private banking institution of Paris & Nave, at Rockford, Kent county, closed its doors this morning upon order of the proprietors, who live at Indianapolis. The bank did a lively business among the farmers. Nothing is known of the bank's condition, except that it was affected by t the failure of the Capital National Bank of Indianapolis. EDWARDSBURG, MICH. May 12.-The Citizens' Bank, of this place, closed its doors this morning. About $25,000 of local e deposits, together with township and school funds are affected. It was a branch of the Chicago Columbia. Another Columbia Branch Fails. e RICHLAND, MISS., May 12. The Union S g Bank, a branch of the Columbia National g Bank, of Chicago, closed this morning Cashier Watts says that depositors will g V be paid in full, and the bank will be r running again in two or three days. More Indiana Failures. g HEBRON, IND., May -The Citizens' m Bank of Hebron closed its doors to-day. is The suspension was caused by the Columy bia National failure. INDIANAPOLIS, May 12.-The Bank of 1, Spiceland, of Spiceland, Ind., suspended 1to-day. The Bank was a State institution, with $26,000 capital, of which $13,000 was subscribed for Dwiggin, Starbuck & Co., of Chicago. The deposits amounted to $30,000, and the loans something more th than that. of MONROEVILLE, IND., May 12.-The y, bank here, a branch of the Chemical Na ic tional Bank, of Chicago, closed its doors t; to-day. A statement as to the condition iof the bank cannot be given. aMORRISTOWN, IND., May 12.-The of Commercial Bank, of Morristown, closed this morning from fear of a run. There is confidence in the managers' ability t bridge over the difficulty and resum ee to-morrow. No uneasiness is felt by de positors. MONTICELLO, IND., May 12.-Th by Commercial, of Brookston, closed to-day The principal stock is owned by the Dwig te gins syndicate. Efforts are being made to have a receiver appointed to protec xt depositors.

4. May 13, 1893 Rock Island Daily Argus Rock Island, IL

Article from Rock Island Daily Argus, May 13, 1893

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BANKING ON WIND. Alleged Facts About the Columbia Concern. DIRECTORS TALK OF RESUMPTION, But Matters Are In a Much Mixed Condition-Development of Financier Dwig-Operations of His County Bank Scheme-Connections That Have Gone Inder-Correspondents in Illinois-Im tators at Indianapolis-An Epidemic of Failures. CHICAGO,May 3.-Interesting disclosures are promised in connection with the investigation into the Columbia National bank failure. The directors have held a meeting to discuss the practiciability of resuming, but the result of their affairs of the bank are in such deliberations was not given out. The a thorough mix that it is not known just how matters stand. Zimri Dwiggins. president of the Columbia bank, was a banker at Attica, Ind., ten or twelve years ago and at that ti e established close relations with G. W. Wiggs and J. M. Starbuck, who were running a system of bucket shops under the name of Wiley, Strawbridge & Co. Sunk $300,000 in a Silver Mine. They determined to start a bank and organized the United States National bank with a capital of $50,000. The bucket shop business was subsequently broken up un der the bucket shop law, the bank being left in Dwiggins' control while Wiggs went to New Mexico. The stock of the United States bank was swelled to $500,000 and Wiggs, who had discovered an alleged gilt-edged mine, drew $300,000 to pay for it. The mine was to be sold to English investors. The mine was a "dead horse" and never panned out. Took Up a Country Bank Scheme. Nothing daunted by the failure of the New Mexican scheme, Dwiggins and Starbuck undertook the establishment of a chain of country banks. It is not own how many were then organized, but after the Columbia was established they went it with vim, and their connections are now more extensive than before. The scheme was to visit some well-known and well-todo farmer in a town and secure his services s cashier of a branch, the farmer taking a large block of stock. The money was advanced by the Columbia and some one put in control whom they could manipulate The country bank stock thus acquired was either used as collateral for loans by the Columbia National or bought outright. As the money sent out into the country soon came back to the reserve center the bank was not out of cash long, and practically no capital was required in the promotion business, Got on Too Heavy a Load. The Columbia, however, finally got load ed up with country bank stock for which it had no special use, and then it was de termined to organize a company to take stock, issue debenture bondson them and sell the bonds, The United States Loan and Trust company was according ly put in the field, with Zimri Dwiggins as president, and incorporated under the laws of Indiana, The company represented that upon the basis of country bank stocks yielding 8, 10 and 12 per cent. dividends and 6 per cent debenture bonds would be issued. Who Is Good for the Loan Company? To make the bond good the United States Loan and Trust company guaranteed the payment of principal and interest. The scheme caught on in good style and it is known that at one financial concern's office $250,000 of the United States Loan and Trust company's debentures had been registered. The approximate amount of bank stock held for this is 8450,000 and President Dwiggins.ha $500,000 more on hand. The nited States Loan and Trust company has no visible assets except about $1,000 in office furniture. Country Concerns That Failed. The following banks connected with the Dwiggins-Starbuck-Columbia bank combination, have closed: Commercial bank of Brookston, Ind.: bank of Dunkirk, Ind.: Commercial bank of Morristown, Ind.; Commercial bank of Russiaville, Ind.: Citizens' bank of Edwardsburg, Mich.: Union bank of Richland, Mich., Others in Indiana: Bank of Spiceland, at Spiceland, capital $36,000, Dwiggins subscribing $13,000 thereof; Citizens Bank of Hebron; Citizens' State Bank, of Knox (Dwiggins): Bank of Orleans at Orleans (Paris & Nave); banks at Walkerton, Arcadia, Oxford and Boswell. Correspondents in Illinois. There are a good many correspondents in Indiana and the following in Illinois: Byon's bank,of Byron (Dwiggins, Starbuck & Co.); Farmers' and Merchants bank of Casey; Bank of Lynn, East Lynn (O. A. Ross); Georgetown bank (Dwiggins, Starbuck & Co); First National bank of Hoopestown, capital $50,000; People's bank of Martinsville; Farmers' and Merchants' Carmel; State Bank of Farmers' Bank of Boyden & Son's of capital farm; Sheffield; Mount A. $25,000; W. bank, Ridge- Orian, of Spring Valley National bank, capital $50,000. Creditors Assured of Their Money. Crowds of people congregated around the offices of the Columbia National bank, but who were assured from notices posted by those had drawn on the bank that they themselves would see to the liquidation all given such drafts, and other assurances were of by officials that all would get their money. DID A DWIGGINS BUSINESS.

5. May 13, 1893 Waterbury Evening Democrat Waterbury, CT

Article from Waterbury Evening Democrat, May 13, 1893

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Many Bank Failures. WASHINGTON, May 13.-The following bank failures are announced to-day: First National bank of Hillsdale, Mich.; State bank, Knox, Ind ; City bank, debion, Ind.; Commercial bank, Morristown, Ind. J. W. Poris and J. Shannon, who control several banks in Indiana, have ordered them all to suspend.

6. May 17, 1893 Morris Tribune Morris, MN

Article from Morris Tribune, May 17, 1893

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ANOTHER AT CHICAGO. The Columbia National Bank Forced to Suspend Payment. CHICAGO, May 12.-The Columbia National bank has suspended. In a report of the bank's condition made by its officers at the close of business, May 4, the deposits were stated to be nearly $1,500,000. The capital stock of the bank is $1,000,000. CHICAGO, May 12.-As a consequence of the suspension of the Columbia National, the following banks, all controlled by it, have also failed: Commercial bank of Brockston, Ind., (copartnership concern); Bank of Dunkirk, Ind., (co-partnership); Bank of Greenwood, Ind., (not incorporated); Commercial bank of Morristown, Ind., capital $25,000; Commercial bank of Russiaville, Ind.; City bank of Edwardsburg, Mich.; Union bank of Richland, Mich.

7. May 17, 1893 The Star Reynoldsville, PA

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A LONG LIST OF FAILURES MANY SMALL BANKS GO UNDER. The Failure of the Columbia National Bank of Chicago had a Far-Renching InEffect. Most of the Suspended stitutions in Country Towns Be Where the Farmer Will the Loser. officials of the Capitol National doors Bank Indianapolis, The Ind.. which closed its bussay they will be able to resume the Friday within a few days providing is Chemical iness National Bank. of Chicago, able to open its doors. failure of the Columbian National instituThe of Chicago caused banking their Bank, throughout Indiana to close small conlions doors Friday. Most of them are was and the majority of their stock of the error by Dwiggins & Starbuck, stock Columbia owned National. Their capital Columfrom $20,000 to $50,000. The banks in ranged National controlled about 27 bia State and more failures are anticipated State this failures were: the Commercial The of Russiaville; Bank at Dunkirk; Bank Bank. of Greentown; Commercial WalFarmers'. Morristown; Commercial Bank, Greenwood; of of Bank of Greenwood. of The kerton; and Merchants'. of Geneva. The Farmers' at Dunkirk was the heaviest. are failure liabilities are $700,000 and the amount. assets about two thirds that be reported The Indianapolis banks claim to not affected by these failures. FAILURES Mich.-W. IN OTHER P. STATES Brown & Co. CHARLEVOIX. doing business under the made name an of the bankers, Bank of Charlevoix. have assignment -The Ottawn County Columbia, Bank at Elmore, TOLEDO, a branch of the Chicago has its-doors. clo-ed O.-The Farmers Bank its of Con- relaCONVOY, closed its doors. caused by Bank of tions voy, O., with the Columbia National Chicago. MICH Great excitement of a local prePAWPAW. Lawton The managers institution vails at there did not open up the the prebank morning, having left town $18,000 Friday vious night. Citizens have and are some taking legal a deposited in the bank of realizing sotaething. Bank. steps in the hope MICH The Union of Chicago RICHLAND the ColumbiaNational depositis branch closed. of The cashier says that the ors will be RAPIDS, paid in MICH.- full. The private bank RockGRAND institution of Paris & Nove. doors at upon ing county, closed its Indianford, Kent proprietors who live at among the order apolis. of The the bank did a lively business farmers. MICH-The Citizen's About Bank, $25,EDWARDSBURG, closed its doors. township 000 of this of local place. deposits together affected, with It was a and school funds are Columbia. branch of the Chicago -The private banking of Williams firm Dwiggins. Starbuck About $8.000 is of burg. CINCINNATI, O., has failed. & by Co., the Columbia. due be of the Chicago, Williamsburg all of which bank it is Williamsburg thought will orthe arrest for started lost. The postmaster of Lawrence at P. Good. Cincin- exdered pert accountant. who taken had in custody on his arrival nati. Good here. was He is charged with embezzlement. ILL ...RRe J. Hornick, of Grand bankOTTAWA. merchant and speculator. The cause is er. Ridge, made an on assignment. his bank, caused brother by and the given as a entanglement run of his City, Ia. financial backer, John Hornick. of Sioux FAILURES. BANK R. OTHER THA N. Colonel A. of Kuser. the TRENTON. stockholder and applied creditor for the Hygerian principal Ice Company for that company appointment liabilities of a receiver are said to be $150,000 and The the total assets about WIS. the The same. big house furnish- and MILWAUKEE of Frank A. Lappen & Co., are in ing house Furniture Company. were the straits. Bank for Wisconsin National Co. for financial the Lappen Judgments & $10 000: entered $44.000. by and by A. Landauer has filed an attach ment The Piankinton for $219,000. Bank The sheriff is in possession. W. VA.-J. S. packers Sorrell. for in PARKERSBURG, of the largest pork in the meat years West one Virginia. but recently made an assignment are business, liabilities and grocery F. Atkinson. The Cincinnatia to several W. times the asssets. and Philadelphia Pirt-burg. Baltimore The Citizens' National parties are caught. is large creditor. Bank, of this city KY.-The wholesale whiskey LOUISVILLE, Thomas & Sons suspended with firm of W. H. The different business bankers place the of over assets excees payment. which the firm has done liabilities at from $150. 000 to $400,000.

8. May 18, 1893 Grant County Herald Lancaster, WI

Article from Grant County Herald, May 18, 1893

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MANY BANKS CLOSE. Result of the Failure of the Columbia National of Chicago. CHICAGO, May 13.-Dispatches received here announce the suspension of the following banks, all of them due to their connection with Dwiggins, Starbuck & Co., of the Columbia national bank of this city, which closed its doors on Thursday: Bank of Dunkirk, Portland, Ind., liabilities estimated at from $75,000 to $100,000; Commer rial state bank of Russiaville, Ind., deposits, 560,000; Farmers' bank, Greentown, Ind.: priwater banking firm of Dwiggins, Starbuck & Co., at Williamsburg, O.; Ottawa bank, Elmore. O: Commercial bank of Morristown, Ind: Citizens' national bank, Boswell. Ind.: Commercial bank of Brookston, Ind.; Commercial bank at Walkerton, Ind.: Farmers' and Merchante bank of Genewa. Ind : Bank of Greenwood, Ind.; Bank of Orleans, Orleans, Ind.: Citizens bank, Hebron, Ind.: Farmers' and Merchants' bank, Casey, Ill.: Citizens' bank of Edwardsburg, Mich Bank of Lawton, Mich.: Bank of Oregon. Wis: Union bank, Richland, Mich: Spiceland bank, Spiceland, Ind : Citi zens' state bank, Knox, Ind: Central bank, West Lebanon, Ind.; banks at Oxford, Ind, and Arcadia. Ind.