Valparaiso National Bank (Valparaiso, IN)

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APPLEGATE IS REMOVED BY JUDGE'S ORDER

Stockholders Who Asked His Removal, Claim Reports Ordered, Were Never Made.

$7,500 ON DEPOSIT IN NATIONAL BANK

T. L. Applegate, former cashier of the Valparaiso National Bank, was removed as receiver for the Porter County State Bank of Kouts by Judge Grant Crumpacker in Porter circuit court this morning. The action came after members of stockholders' committee, comprising Edward O'Brien, Herman Kosanke and A. F. Hofferth, filed petition late Friday asking that the receiver be removed and he be cited for contempt of court. It was charged by the committee that the receiver had failed to request payments of persons owing notes to the bank, and that on two occasions, when ordered by the court to file reports, never com-

On Feb. 4, at a meeting the receiver and depositors, an agreement was reached whereby a committee was named to co-operate with the receiver in the collection of notes due the bank. At the time Judge Crumpacker ordered the receiver to make a report within 30 days. Friday was the last day and no report was filed. Judge Crumpacker's order today called for the filing of report by next Tuesday, and also the resignation of the receiver. At the time of its closing the Kouts bank had resources of $200,000. Only per cent dividend has been paid to date. According to recent report of the receiver, a total of $7,500 in money on deposit in the Valparaiso National bank, which closed its doors on Jan. 11. Depositors of the Kouts bank maintain that this money have been distributed some time ago as dividend, and they threaten to sue the receiver on his bond. Charles H. cashier of the Kouts bank, prison forgery petition to charge off in notes, most which were forgeries. Cannon, was filed sometime ago with Judge Crumpacker.

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RECEIVER OF NATIONAL TO BE IN CHARGE

Comptroller of Currency Orders Step to Make Liquidation; Time to Be Given for Payment.

WILL BE LEVIED ON 100 PER CENT BASIS

Stockholders of the Valparaise National Bank, which closed its doors on Jan. 11, last, were notified Wednesday by J. W. Pole, comptroller of the currency, United States Treasury department, that a 100 per cent assessment had been levied against their share holdings, The notice mailed to all shareholders of the bank contained the following reason for the "Whereas upon proper accounting by the receiver to collect the assets of the Valparaiso National Bank, and upon a valuation of the uncollected assets remaining in his hands, it appears. my satisfaction that in order to pay the debts of such association it is necessary to enforce the individual liability of the Under the order of Comptroller Pole, shareholders are liable for the full amount of the capital stock of the bank, $150,000. This amount must be paid on or before May 21, 1932.

Clay Haymond, receiver the bank, is directed to take necessary proceedings, by suit otherwise, to enforce the individual liability of all shareholders owning stock at the time of the bank's closing. Receiver Haymond authorIzed, however, by the comptroller to grant an extension, without interest, to shareholders who pay 25 per cent of the on or before May 21, providing they give a written obligation, satisfactorily guaranteed, to pay 25 per cent additional on or before June 21. 1932, 25 per cent on or before July 21, 1932, and the remaining 25 per. cent on or before August 21, 1932. Deferred payments will bear interest after May 31, 1932, at the legal rate, except that interest may be abated in the case of any shareholder who pays one-fourth of his assessment on or before the dates at which they mature, under the terms of the extension. Shareholders of the bank are scattered in various parts county. Because a splitting of several big a number of years the number shareholders was materially Increased.

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DEPOSITORS' DIVIDEND ANNOUNCED

VALPARAISO, Ind., Aug. 26.—(U.P.)—The first relief from financial difficulties here following three bank failures was seen today with an announcement that a dividend will be available for depositors of the Valparaiso National bank.

F. Clay Hammond, receiver for the institution, said that the treasury department had approved an immediate dividend payment of 35 per cent. The $220,000 will be sent out at once, Hammond said.

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DEPOSITORS' DIVIDEND ANNOUNCED

VALPARAISO, Ind., Aug. 26.—(U.P.)—The first relief from financial difficulties here following three bank failures was seen today with an announcement that a dividend will be available for depositors of the Valparaiso National bank.

F. Clay Hammond, receiver for the institution, said that the treasury department had approved an immediate dividend payment of 35 per cent. The $220,000 will be sent out at once, Hammond said.

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VALPARAISO, Ind., Aug. 26.—(U.P.)—The first relief from financial difficulties here following three bank failures was seen today with an announcement that a dividend will be available for depositors of the Valparaiso National bank.

F. Clay Hammond, receiver for the institution, said that the treasury department had approved an immediate dividend payment of 35 per cent. The $220,000 will be sent out at once, Hammond said.

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DEPOSITORS' DIVIDEND ANNOUNCED

VALPARAISO, Ind., Aug. 26.—(U.P.)—The first relief from financial difficulties here following three bank failures was seen today with an announcement that a dividend will be available for depositors of the Valparaiso National bank.

F. Clay Hammond, receiver for the institution, said that the treasury department had approved an immediate dividend payment of 35 per cent. The $220,000 will be sent out at once, Hammond said.

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MRS. HILL WINNER

COUNTRY CLUB, Peoria, Ill., Aug. 26.—(I.N.S.)—Mrs. Opal S. Hill, of Kansas City, who started playing golf at her doctor's orders, today moved one step nearer to another Women's Western Golf association title.

VALPARAISO, Ind., Aug. 26.—(U.P.)—The first relief from financial difficulties here following three bank failures was seen today with an announcement that a dividend will be available for depositors of the Valparaiso National bank.

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DEPOSITORS' DIVIDEND ANNOUNCED

VALPARAISO, Ind., Aug. 26. — (U.P.) — The first relief from financial difficulties here following three bank failures was seen today with an announcement that a dividend will be available for depositors of the Valparaiso National bank.

F. Clay Hammond, receiver for the institution, said that the treasury department had approved an immediate dividend payment of 35 per cent. The $220,000 will be sent out at once, Hammond said.

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VALPARAISO BANK PAY DIVIDEND

VALPARAISO, Ind., Aug. first relief from financial difficulties here following three bank failures seen today with an announcement that dividend will he available to of the Valparaiso National bank Clay Hammond receiver for the institution. said that the treasury department had approved an immediate dividend payment of 35 per cent. The be sent at once. Hammond said.

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$9,000 SUIT ON BANK STOCK

VALPARAISO, Sept. 29.—Suit for $9,000 assessment on stockholdings in the closed Valparaiso National bank was filed in United States district court at Hammond this week by F. Clay Haymond, receiver, against Robert Wark of Valparaiso. The stock originally was owned by the late Elizabeth Wark, but was left to Mr. Wark during his lifetime, with a provision that it would then go to his three children. This is the second action brought against stockholders of the Valparaiso National by Receiver Haymond. Leroy M. Pierce of Valparaiso was recently made defendant in a similar action.

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NEW BRITISH NOTE DRAFTED DEBT ENTER JUDGMENT BY HENRY T. RUSSELL BY KOUTS BANK RECEIVER (United Press Staff Correspondent) LONDON, Nov. new

British war debt note, drafted over the week-end, was expected today to claim that if the United States insisted on payment of the $95,000,000 December installment there would be world financial repercussions.

The question of payment or fault would remain unsettled the by

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Judgment in the sum of $7,418.17 was entered this afternoon in Porter circuit court by Judge Grant Crumpacker in favor of Edward M. O'Brien, of Kouts, receiver for the defunct Porter County State Bank of Kouts, against Thomas L. Applegate, former receiver, and the United States Fidelity and Guaranty Company, of Baltimore, Md. The judgment against the defendants represents money belonging to the Kouts bank which was on deposit in the Valparaiso National Bank when it closed on January 11 last. Mr. Applegate, as former receiver of the bank, was held accountable for the amount by

Judge Crumpacker when It was shown that the money had been in the bank for nearly year and the receiver had failed to make report to the court after having been notified to do The Kouts bank closed its doors in April, 1927. when an audit by examiners for the state showed the bank's affairs to have been grossly mismanaged. Resources of over $200,000 dwindled by reason of forgeries and bad loans so that only small amount was realized. One dividend of five per cent, was paid. Edward Ryan, of this city, was attorney for Receiver O'Brien, and John P. Crumpacker, of this city, was counsel for the defendants.

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1,800 GET BANK

Receiver F. Clay Haymond of Valparaiso National Bank Announces Receipts of Dividend Checks

NEARLY $600,000 HAS BEEN RETURNED

"I've got money for you and get it!" come

This was the cheering justgreeting sent to some 1,800 Valaraiso and Porter county individuals late this afternoon by F. Clay Haymond, receiver for Valparaiso National Bank. Receiver Haymond has $38,000 hand to distribute to former depositors in the Valparaiso National. It brings the total dividends paid by the closed banking house to approximately $600,000 or about 77 per cent of the deposits.

The bank was closed on order of the department on Monday, Jan. 11, 1932, at the height of Valparaiso's most severe banking scare.

Mr. Haymond was sent here in February, 1932, to take charge and liquidate. The first dividend came in Septemebr, 1932, the second, in March, 1933, the third in 1934.

The receiver preferred and secured full. Stockholders assessed and payments are still being made it is said. First payments went to the Federal Reserve Bank, the U. postal department for postal savings deposits and Porter county. Checks for the $38,000 distribution came from the comptroller of the treasury this afternoon. Receiver Haymond complimented the federal banking officials upon their co-operation. wanted the dividend checks to arrive in time for Christmas so that the community might get the benefit." Mr. Haymond stated. "They did all they could in Washington to speed It along from their end." he added.

In announcing the distribution Receiver Haymond urged all properly accredited claimants bring their receiver's certificates to the bank at once, and claim their checks.