6196. Bank of Petroleum (Petroleum, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
February 14, 1929
Location
Petroleum, Indiana (40.611, -85.151)

Metadata

Model
gpt-5-mini
Short Digest
d45980c0

Response Measures

None

Description

Bank of Petroleum suspended operations during the Wells County panic (mid-February 1929) and officials later moved to liquidate the bank; articles indicate liquidation in progress rather than reopening. The suspension appears driven by runs on other local banks and lack of clearing cash rather than a specific run on Petroleum (no specific withdrawal amount for Petroleum reported).

Events (2)
1. February 14, 1929 Suspension
Cause
Local Banks
Cause Details
Suspended due to panic spreading from Bluffton/Wells County bank failures and runs elsewhere; lack of ready cash and county clearing disruptions forced closure.
Newspaper Excerpt
The Bank of Petroleum and the Liberty Center State bank also suspended operations.
Source
newspapers
2. February 16, 1929 Other
Newspaper Excerpt
Liquidation was reported in progress at Petroleum.
Source
newspapers

Newspaper Articles (12)
1. February 14, 1929 Journal and Courier Lafayette, IN
Article from Journal and Courier, February 14, 1929

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SEVEN BANK FAILURES SHAKE FINANCIAL CIRCLES OF Federal Examiner Finds Alleged Shortage of $100,000 in Accounts of Cashier of Hope Institution and Arrests Are Expected-Six Suspensions Due to Panicky Depositors. INDIANAPOLIS, Ind., Feb. epidemic of bank crashes which reached a total of seven in the last twentyfour hours. today rocked Indiana banking circles. Six of the bank suspensions were due to mad panic that started at Bluffton in Wells The county. seventh bank closing was blamed on GENERAL BANKING IN an alleged $100,000 defalcation by cashier. INDIANA IS HOPEFUL With the mad Ind., Feb. 14. frenzy commenting today spreading from Wells county upon the closing seven Ind iana banks since sible adjoining counties, every pos. yesterday effort was made state morning total deposits banking officials and by bankLuther Symmons, ers the affected districts state banking commissioner, public fear. said: mass meetings were general banking situabeing resorted towns tion hopeful enlist citizens to help their should be by local banks the conditions in Wells county. "RUNS" NOT JUSTIFIED. seems to have lost his sense Thomas Barr, state banking Indiana Artists' who has hurried Bluffton declared upon arriving there looking over Works Will Be the situation. "The runs most banks have been without justification. Exhibited Here to comment on the possible further spread Hoosier Salon Closes in Chipanic paralyzed business Wells cago and Pictures Will Be Virtually the entire force of the Brought to Purdue Univer- state department into the field today to sity February 22. help endangered banks stem the frenzy that has been spreading Feb. Bluffton all directions. portrait August Goth, Indianapall lay parpainted by his daughter, in Wells The banks county Marie Goth, won the Harry 30 Nye special prize $200 the and 60 day nótices on withdrawpicture possessing the most als. The panic at Bluffton had its inception the shattered banking institutions resulting from losses incurred the there on March the State bank, one of the oldest Indiana. Ralph president this bank, shot and killed himself after the bank was closed ONE BANK REOPENS. run Wells County bank Bluffton bank which deposits $1, 250,000 yesterday ing. followed by runs the Union Savings Trust company Bluffton and on other banks in the county Before day over four other banks had down, the Poneto closing half day When the Union Savings Trust of Bluffton failed open doors today, the panic spread from county to Blackford and forced the Deposit bank at Montpelier Meanwhile board of directhe National bank Hope in Bartholomew county, the bank closed after Utt, federal bank examiner found an alleged shortage the of Cashier W. LIST OF CLOSED BANKS. The seven banks closed diana since yesterday morning and their deposits follow: State bank of Bluffton, Union Savings and Trust company Bluffton, $400,000. Uniondale State bank of Uniondale Center State bank of Liberty Bank of Petroleum at Petroleum, Farmers Deposit bank of Montpelier, National Bank of Hope, $400,000.

2. February 14, 1929 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, February 14, 1929

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TWO ADDED TO CLOSED BANK LIST IN STATE Includes Another Bluffton Institution and One at Montpelier. TOTAL STANDS AT SIX Receivership Plea of Examiners to Be Heard Feb. 21. By Times Special BLUFFTON, Ind., Feb. 14.-The number of banks closed as the result of the failure Wednesday of the Wells County State bank of Bluffton was increased to five today when the Union Savings and Trust Company of Bluffton and the Farmers' Deposit bank of Montpelier failed to open for business. Both were closed as a precautionary measure by their directors after runs, induced by the three previous bank failures, mounted to large figures. $68,000 Withdrawn A run of $50,000 was made on the Union institution Wednesday, according to Fred J. Pangeman, president, while Guy Bracken, president of the Montpelier bank, reported withdrawals of $18,000. Both officials reported that their institutions were solvent, but said that after a conference with Thomas D. Barr, assistant state bank commissioner, they decided it would be unwise to open in view of the attitude of the public. The state banking department has taken charge of all five institutions. Receivers Asked Hearings on petitions asking appointment of receivers for two of the five banks have been set here for Feb. 21, by Circuit Judge A. W. Hamilton. Receivers are asked for the Wells County State bank of Uniondale. The others closed Wednesday are the Bank of Petroleum and the Liberty Center State bank. Investigation of the banks is being made by seven state examiners, assigned by Luther F. Symons, state bank commissioner and working under direction of Barr. Symons said he was unable as yet to say whether deposits of $1,250,000 in the bank at Bluffton are safe. He indicated there is a possibility that the bank may be reorganized.

3. February 14, 1929 The Richmond Item Richmond, IN
Article from The Richmond Item, February 14, 1929

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dale, two of the institutions that closed. The bank of Petroleum and the Liberty Center State bank also suspended operations. The set that examinations by the department showed the County State bank and the State bank Uniondale are "in a failing and insolvent condition.' Judge A. W. Hamilton set February 21 the date for hearings on the petitions. The Wells County bank was capnot open for today, shortly afternoon the three banks, which through the Bluffton institution, also closed their doors. The Wells county bank was cap- italized at $100,000 and showed deposits of $1,250,000. B. Williamsson is president; R. Morrow, first vice president; Frank Waugh, second vice R. N. Fitzpatrick cashier. The bank was closed by Thomas Barr, The capitalization the Uniondale bank was $25,000 and deposits were $200,000. H. W. Lipkey is president and W. A. Brickley cashier. The Union Savings Trust company now is the only bank in Bluffton. Studebaker bank failed 1927, with deposits of $1,500,000 as yet have made no payments on deposits. Snakes, contrary to common be lief cannot sting-but some can bite.

4. February 14, 1929 Vidette-Messenger of Porter County Valparaiso, IN
Article from Vidette-Messenger of Porter County, February 14, 1929

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BANK PANIC IS SPREADING TO BLACKFORD co. (Continued from better take The bank doesn't one cent and solvent.' Barr explained that while the state banking department didn't close the Union Savings Trust company, once was closed by its board of directors, "we had step Meanwhile the residenta of Ponecommunity of about permiles south of Bluffton today were pledged to back their only the State Bank of Poneto, the present crisis. The bank was said to have withstood yesterday's run but after the close the day's business Cashier Mussellman called community mass meeting which held at the auditorium the Poneto grade school last night. More than 125 citizens attended. Mussellman made stirring plea for support of the bank and every one present prom!sed to get behind the bank. While excited citizens were discussing the closing of the last Bluffton bank today, the state banking examiners here force, were following procedure in taking charge of the closed institutions Applications were filled with Circuit Judge Hamilton here for receivers for the Wells County State Bank of Bluffton and for the Uniondale State Bank Judge set February 21st as the date for the hearing: An application also was filed the circuit court by officials of the bank of Petroleum, which vate bank, for the appointment of trustee to liquidate the bank's affairs. The Liberty Center Bank Liberty Center was declared fully solvent by Barr, having received his permission close to avoid the frenzy the depositors. Barr, however, characterized the situation in Wells county today situation the result of local conditions the like of which don't know of anywhere else," Barr He expressed the hope that the worst was over. Officials of the two banks which receivers were asked said this morning that the applications were "precautionary measures" which might later be withdrawn. Cashier Tangeman of the Union Savings Trust company said that the bank would oppose the appointment of receiver but

5. February 14, 1929 Princeton Daily Clarion Princeton, IN
Article from Princeton Daily Clarion, February 14, 1929

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MORE WELLS COUNTY BANKS CLOSE DOORS The Union Savings and Trust company. the only remaining bank in Bluff ton. closed its doors this morning after $50,000 run yesterday The Farmers Deposit bank of Montepelier. on the county line. also closed this morning due. it was said to an $18,000 run yesterday Four banks in Wells county closed yes Fred J. Tangeman president of the Union Savings and Trust company and Thomas Barr. state bank examiner. said the closing was due to the run on the bank and that it was entirely solvent Officers and directors said they expected to take advantage of the 60 days permitted by law to ef feet a reorganization and then hoped to reopen The nion Savings and Trust had deposits of approximately $800, Closing of the Wells County State bank here Monday precipitated the closing of three other banks in small towns in Wells county They were the Bank of Petroleum. the State bank of Union dale and the Liberty Center State bank The banks in the three small com munities closed within few hours after the Wells County State bank here had been closed by Thomas Barr. state bank examiner. The banks in the three small towns all cleared through the Wells County State bank Lack of ready eash prevented them from continuing business today. In each instance hope was expressed that a reorganization might be affected and the officers of all the institutions said there would probably be no loss to depositors The Studebaker bank of Bluffton failed in 1927 with deposits of $1,500. 000. Receivers of this institution have thus far made no payments to deposi The Bank of Petroleum was capital ized at $13,500. It had deposits of $140,000 The officers are Henry Schodt. president. and Howard Nutter cashier The enpitalization of the State bank of Uniondale was $2,000 and deposits were $200,000 H. W. Lipkey is prest dent and W A. Brickley cashier. The Liberty Center State bank also was capitalized at $25,000 and had $200,000 deposits. Its officers are John V. Funk. president, and Roy Mossburg. cashier. CARD OF THANKS We take this means of expressing our thanks and appreciation of the many acts of kindness and sympathy shown us during the recent illness and death of our father. William Hyneman, and especially for the beautiful flowers that help much to remove THE FAMILY

6. February 14, 1929 The Times-Mail Bedford, IN
Article from The Times-Mail, February 14, 1929

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RETURN EPIDEMIC Soon to be Arraigned in Circuit Court Grand Larceny Charge Sheriff Tyree arrived home this morning over the Monon on train from Detroit, having in custody William Covey who wanted here on charge of grand larceny. Covey was arrested in Detroit Monday on Lawrence county warrant and Sheriff ree left to after him Tuesday ternoon. will probably be arraignbefore Judge James Cox in the Lawrence circuit court late today Covey is alleged to be member of the quartet which entered and robbed Homer George Store at Peerless October Lawrence Hillenburg and Glenn Kinder, two of the members of the robber gang now serving penfarm sentences inflicted by Judge Cox after they pleaded guilty grand larceny charges during the Determ the Lawrence circuit court and Orlando Cazee, the fourth given an indeterminate reformatory sentence of from to 10 morning when he pleaded guilty to grand larceny charge. Cazee was arrested by local police early Tuesday morning while hiding in the home of here. Both Cazee and Covhad been fugitives from justice for three months. STATE BANKING CIRCLES AS SEVEN INSTITUTIONS CLOSE DOORS DAY OFFICIALS Declare Panics Were Without Justification and Attempt to Halt Mad Rushes INDIANAPOLIS, Ind., Feb. An epidemic of bank crashes which reached total of seven in the last hours, today rocked Indiana banking circles. Six of the bank suspensions were due to mad panic that started at Bluffton in Wells county. The seventh bank closing was blamed on an leged $100,000 deflation by cashier. With the mad frenzy spreading from Wells county to adjoining ties, every possible effort was made by state banking officials and by the bankers in the affected districts allay the public fear. Community mass meetings were beresorted to in some towns to list citizens to help their banks weather the crisis. "Everybody seems to have lost his sense of proportion," Thomas Barr, assistant state banking commissionwho was hurried to Bluffton in person, declared upon arriving there and looking over the situation. runs on most of the banks have been without Barr refused to comment on the possible further spread of the panic that has paralyzed business in Wells county. Virtually the entire force of the state banking department musterinto the field today to help endangered banks to stem the frenzy that has been spreading from Bluffton all directions. Meanwhile all business lay paralyzin Wells county. The banks still operating were demanding 30 and day notices on withdrawals. The panic at Bluffton had its confidence banking institutions resulting from heavy losses incurred in the $1,400,000 failure there on March 1927, of the Studebaker state bank, one of the oldest banks in Indiana. Ralph Etudebaker Todd, 45, president of this bank, shot and killed himself after the bank was closed. A run on the Wells county state bank Bluffton forced that bank which had deposits of $1,250,000 suspend yesterday morning. This was followed by runs on the Union Savings & Trust Company at Bluffton and on other banks in the counBefore the day was four other banks had shut down, one, the Poneto State Bank, closing for only half day and reopening this morning. When the Union Savings & Trust Company of Bluffton failed to open its doors today, the panic spread from Wells county to Blackford county and forced the farmers deposit bank Montpelier close. Meanwhile the board of directors of the Citizens National Bank at Bartholomew county, ordered the bank closed today after Utt, federal bank examiner found an leged $100,000 shortage in the counts of Cashier Stewart. The seven banks closed in Indiana since yesterday morning and their deposits follow: Well County State Bank of Bluffton, $1,250,000. Union Savings Trust Company Bluffton, $400,000. Uniondale State Bank of Uniondale, $230,000. Liberty Center State Bank of Center, Bank of Petroleum at Petroleum, $155,000. Farmers Deposit Bank of Montpelfier, $610,000. Citizens National Bank of Hope, $400,000. INDIANAPOLIS, Ind., Feb. In commenting today upon the closing of seven Indiana banks since yesterday morning with total deposits of Luther Symmons, state banking commissioner, said: general banking situation Indiana is hopleful and should not be affected by local conditions in Wells county."

7. February 14, 1929 Evansville Courier and Press Evansville, IN
Article from Evansville Courier and Press, February 14, 1929

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HOPE OF COLLEGE FOUR BANKS WELLS COUNTY IN lowing the closing of four Wells county banks today Luther Systate bank commissioner, appeared in circuit court here this ernoon two petitions asking that be appointed for Wells County State bank, Bluffton. and the State Bank of Uniondale, two of the institutions that closed. The bank of Petroleum and the Liberty State bank also suspended operations. O. Glenn Stahl. son of Mr. and Mrs A. Stahl. 1326 Powell avenue. to Indiana Evansville college in the State Oratorical contest which be college Friday with sities tives from eight colleges and univercompeting Stahl, who the at college, will take as sophomore his subject 'Mass Feeling or Man Thinking He has member of the college ing he entered, and also debater HAFFA RECEIVES at Bosse high He is member the local chapter of TWO-YEAR TERM Kappa Alpha, national debating fraternity He has been coached by Miss CHICAGO, Feb. Pearl LeCompte, who will accompany year penitentiary sentence fine him to Richmond $11,000 handed Titus Other contestants will represent Haffa. Chicago and forPurdue university, col- lieutenant of Mayor lege, Franklin college, Butler William Hale Thompson in federal Wabash college, Notre Dame court today He was convicted last university, and Earlham college. week operating liquor prize of will be awarded for ring. Denied new trial. the alderfirst place and 825 for second The man went to unable for the winner the state contest go to being the appeal the which will be held in bond set by Judge Walter C. Lindley. March five candidate for reelection this contest The two winners the 43rd ward north side this group will take part in the na- of the indicated his of tional contest which held annually the fight and to begin at Northwestern university, Evans- serving his sentence within a short ton, III.

8. February 14, 1929 The Call-Leader Elwood, IN
Article from The Call-Leader, February 14, 1929

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RECEIVERS ASK FOR WELLS COUNTY BANKS Bluffton Ind., Feb. 13.-Receivers were sought for the Wells County State Bank of Bluffton and the State Bank of Uniondale in a petition here today. The petition was filed by Luther F. Symons, state bank commissioner, following the closing of four Wells county banks today. The petition was filed in Circuit court by Mr. Symons The Bank of Petroleum and the Liberty Center State Bank also sus pended operations. The petitions set out that examinations by the banking department showed the Wells County State bank and the State Bank of Uniondale are

9. February 15, 1929 The Indianapolis Star Indianapolis, IN
Article from The Indianapolis Star, February 15, 1929

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BANKS SHUT Heavy Run Also Closes One in Meeting Called. The closing of the and Trust Company of and the failure the Deposit bank Montpelier morning made total of five banks closed county and the line Blackford county within two days. mass meeting of citizens has been called enlist aid opening bank here to carry on business. A $50,000 on the Union Savings and Trust Company yesterday was said to responsible for the closing that institution and an $18,000 run on the Montpelier bank prevented its opening today Fred Tangeman, president of the Union bank, declared that the bank entirely solvent and that directors hoped to reopen the institution in due time without loss to depositors The bank had deposits of approximately $1,The Farmers Deposit bank had deposits of approximtely $50,000. Guy Bracken is president. Four Closed Wednesday. The Wells County bank, with deposits of closed yesterday State Bank of closed. Petitions for were filed the Circuit court here late yesterday for both banks. The Bank of Petroleum and the Liberty Center State bank also closed OLD FAILURE BLAMED. Luther F. Symons. state bank comyesterday issued the folstatement "The banking situation in Wells county has largely continual growout failure of the about two rumors been persistently circulated that have undermined public confidence in that my opinion that the most, If closed banks will come out their present difficulty with very little, if any loss to the deThe stability the banking situation in state should affected by the conditions in Wells county

10. February 15, 1929 The Richmond Item Richmond, IN
Article from The Richmond Item, February 15, 1929

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SIX BANKS CLOSED IN WELLS COUNTY (By The Associated Press BLUFFTO Ind., Feb. 14.-The closing of the Union Savings and Trust of Bluffton and the failure of the Farmers' Deposit bank of Montpelier to open this morning, made total of six banks closed in Wells county within two days. A mass meeting of citizens has been called to enlist aid in opening a bank here carry on business. $50,000 run on the Union Savings and Trust company was said to be responsible for the closing of that institution, and an $18,000 run on the Montpelier bank prevented its opening today. Fred Tangeman, president of the Union bank, declared that the bank was entirely solvent and that directors hoped to reopen the institution in due time without loss to depositors or stockholders, The bank had deposits of approximately The Farmers Deposit bank had deposits of approximately $500,000. Guy Bracken is president. The Wells county bank. with deposits of $1 closed yesterday morning and a few hours later the state bank of Uniondale closed. Petitions for filed in the circuit court here late yesterday for both banks The bank of Petroleum and the Liberty Center state bank also closed yesterday Luther F. Symons, state bank at Indianapolis today, declared that the stability of the banking situation in the state should not be affected by the various banks in Wells counHe said the situation here had been brought about by the continual agitation of banking problems grow. ing out of the Studebaker bank failure two years ago. He said was his opinion that most, if not all of the banks would come out of their present difficulty with very little. If any loss to the CONSTABLE SHOT Herman Kelm. 52, special constable, probably fatally wounded late this afternoon when he attempted to serve warrant on Orra Hart Hart shot the constable three times, the bullets penetrating his abdomen back Kelm former patrolman on the Lafayette police force.

11. February 15, 1929 The Anderson Herald Anderson, IN
Article from The Anderson Herald, February 15, 1929

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SIXTH BANK CLOSES IN WELLS COUNTY Citizens Call Meeting to Enlist Aid in Business. BLUFFTON, Ind., Feb. 14. (AP) The closing of the Union Savings and Trust company of Bluffton and the failure of the Farmers Deposit bank of Montpelier to open this morning, made total of six banks closed in Well county within two days. A mass meeting of citizens has been called to enlist aid in opening a bank here to carry on business. A $50,000 run on the Union Savings and Trust company yesterday was said to be responsible for the closing of that institution, and an $18,000 run on the Montpeller bank prevented its opening today. Fred J. Tangeman, president of the Union bank, declared that the bank was entirely solvent and that directors hoped to reopen the institution in due time without loss to depositors or stockholders. The bank had deposits of rpproximately $1,000,000. The Farmers Deposit bank had deposits of approximately $500,000. Guy Bracken is president. Receivers Are Asked The Wells County bank, with deposits of $1,250,000 closed yesterday morning and few hours later the state bank of Uniondale closed. Petitions for receivers were filed in the circuit court here late yesterday for both banks. The bank of Petroleum and the Liberty Center State bank also closed yesterday. Luther F. Symons, state bank commissioner, in statement issued at Indianapolis today, declared that the stability of the banking situation in the state should not be affected by the various banks in Well county. He said the situation here had been brought about by the continual agitation of banking problems growing out of the Studebaker bank failure two years ago. He said it was his opinion that most, if not all of the banks would their present difficulty with very little, if any losg to the lepositors.

12. February 16, 1929 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, February 16, 1929

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CLOSED BANKS PLAN TO OPEN Wells County Crisis May Be Eased Next Week. By Times Special BLUFFTON, Ind., Feb. 16.-Wells county's banking crisis may be eased early next week when the Union Savings and Trust Company is expected to open its doors. Five financial institutions in the county closed- during the week. A mass meeting at which all parts of the county was represented was held here Friday night, several speakers expressing confidence that the situation could be relieved. There were indications that the panicky feeling which caused runs is subsiding. The Wells County State bank here was the first to close. Three other banks, which used the local institution for clearing purposes, ceased business the following day. Then the Union Trust and Savings closed as a precautionary measure, after a run had started. The three others closed were at Liberty Center, Petroleum and Uniondale. At the meeting there were indications that the Liberty Center and Uniondale banks also would re-open next week. Liquidation was reported in progress at Petroleum. The audit of the Wells County State bank has not been completed and there is no information available at this time on its condition.