Commercial Bank - Russiaville, IN

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: May 12, 1893
Location: Russiaville, Indiana (40.418, -86.271)

Metadata

Model: gpt-5-mini
Short Digest: db4e2921

Response Measures

None

Description

Multiple articles (May 12–17, 1893) report the Commercial Bank of Russiaville closed its doors/suspended payment and is listed among banks that 'have also failed' as a consequence of the Columbia National Bank (Chicago) suspension. No reopening is mentioned; thus classified as suspension leading to closure. OCR corrected minor name variants — some articles call it 'Commercial State bank' which supports bank_type = state.

Events (1)

1. May 12, 1893 Suspension

Cause: Correspondent
Cause Details: Closed because it was connected to/controlled by the Columbia National Bank of Chicago and was 'caught with deposits' there when Columbia suspended; failure of correspondent/controlling bank precipitated closure.
Newspaper Excerpt: The Commercial State bank, of Russiaville, ... closed their doors this morning, caught with deposits in the Columbia bank failure of Chicago.
Source: newspapers

Newspaper Articles (5)

1. 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.

2. May 13, 1893 St. Paul Daily Globe Saint Paul, MN

Article from St. Paul Daily Globe, May 13, 1893

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COLUMBIA BRANCHES. Many Country Banks Carried Down by the Chicago Failure. CASEY, III., May 12.--The Columbia National bank is the principal stockholder in the Farmers' and Merchants' bank. of this city. The Farmers' and Merchants' made an assignment today. The assets, consisting of money, notes are are uncertain, and liabilities fixtures, probably $16,000. but, it The is thought, will reach $23,000 or over. DUNKIRK, Ind., May 12.-The Dunkirk bank closed its doors last night, suspending payment to depositors. The bank is owned by Starbuck, Dwiggins & Co., of Chicago, and has gone down for about $70,000. It is assumed that the failure is the result of the collapse of the Columbia National bank, of Chicago, of which Mr. Dwiggins was president. KOKOMO, Ind., May 2.-The Commercial State bank, of Russiaville, and the Farmers' bank at Greentown, both under one management, closed their were in $60,000. doors this They morning, caught with deposits the Colum- of bia bank failure, of Chicago. They were recently crippled by a large milling company failure. INDIANAPOLIS, May 12.-A special from Brookston, Ind., to the News says the Commercial bank of that place has closed its doors. It was closed entirely by the Chicago Columbia. No statement of assets or liabilities as yet. The banks of the Columbia National string at Morristown and Greenwood are said to have also failed. The Morristown bank is of considerable importance, having a capital of $75,000. FORT WAYNE, Ind., May 12.-News of the suspension of the Farmers and Merchants' bank, at Geneva, reached here late this afternoon. The bank closed its doors at noon. It was the oldest institution of the kind in the town. INDIANAPOLIS. May 12.-The Central bank, of West Lebanon. Ind., is running today, but will probably have to close, at least temporarily, on account of the failure of the Columbia National bank. The impression is that the Central will be only temporarily disabled. CHARLEVOIX, Mich., May 12.-W. P. Brown & Co., bankers, doing business under the name of the Bank of Charlevoix, made an assignment to R. W. Kane last night. No statement has yet been made as to the cause of suspension. GRAND RAPIDS, Mich., May 12.-The private banking institution of Paris & Rye, of Rockford, this county, closed its doors today upon orders of the comptroller, who lives at Indianapolis. Nothing is known of the bank's finances, except that it was affected by the failure of the Capital Bank of Indianapolis. LAWTON, Mich., May -The village IS greatly excited over the failure of the local bank to open this morning. The managers have left town. The citizens have deposits there amounting to $18,000, and are taking legal steps to realize something. RICHLAND, Mich., May 12. -- The Union bank, a branch of the Columbia

3. 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.

4. 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.

5. May 17, 1893 The Advocate and Topeka Tribune Topeka, KS

Article from The Advocate and Topeka Tribune, May 17, 1893

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The Columbia was not a member of the clearing house. Lyman J. Gage says it made application for membership a year ago, but after examination e of the bank's affairs, it was denied. President Viggins has issued a statement that all the depositors will be paid in full. DUNKIRK, IND., May 12.-The Dunkirk bank closed its doors last night, suspending payment to depositors. A crowd of several hundred excited people surrounded the bank this morning. The concern is owned by Starbuck, Dwiggins & Co., of Chicago, and has gone down for about $70,000. It is assumed the failure is the result of the collapse of the Columbian National bank, of Chicago, of which Dwiggins was president. KOKOMO,IND. May 12.-The Commercial State bank, of Russiaville, and the Farmer's bank, at Greentown, both under one management, closed their doors this morning with deposits of $60,000. They were caught in the Columbia bank failure of Chicago. The Commercial bank is one of about twenty banks in Indiana that are thought to be connected with the Columbia National bank, of Chicago. Perhaps as many private banks were also related to the Chicago concern to some extent. CINCINNATI, O., May 12.-The private bank of Dwiggins, Starbuck & Co., at Williamsburg, O.' assigned last night in compliance with instructions from Dwiggins, of Chicago. Assets, $35,000; liabilities, $60,000. It was one of the branches of the Columbia bank, of Chicago. An expert accountant who has been employed at the bank has been arrested. The charge seems to be based on the suspicion that he was employed to conceal some of the funds of the bank. OTTAWA, ILL., May 12.-Richard J. Hornick, banker, assigned this morning. The cause of his assignment is given as a run on his bank caused by financial entanglement of his brother and backer, John Hornich, Sioux City Iowa. INDIANAPOLIS. IND., May 12.-A special from Brookston, Ind., says the Commercial bank of that place closed its doors to-day. It was controlled entirely by the Columbia bank, of Chicago. CHICAGO, ILL, May 12.-The tight money scare has had a disastrous effect on the World's Fair attendance. The total attendance to date is 285,000, and the money taken in at the gate will not 80 far pay the running expenses. Interest on $5,000,000 bonds is about due, and it looks as if the directors must borrow $300,000 to take up the coupons. MINNEAPOLIS, May 15.-The Northwestern Guarantee Loan Company is now in an embarrassed condition owing to the financial stringency. L. F. Menage, the president of the company, this morning declined to say anything. The capital stock of the company is $1,250,000. It owns the $2,000,000 building in which its offices are located, and a large amount of real property here, in Chicago and elsewhere. Its business has been the floating of commercial paper on sufficient collateral and the guaranteeing of the paper. It has some three millions of this paper and the refusal of its patrons to take up or renew their notes has precipitated the trouble. If the company suspends it will not do so for several days. MINNNAPOLIS, May 15.-The Farmers' and Merchants' State bank has suspended payment pending a run. The cashier states that the bank expected to resume in a few days. The bank is a very small one, its paid up capital being but $60,000, and its surplus about $7,000. t should be noted that this is not the Farmers' and Merchants's Savings bank, which is perfectly solvent. TROY, N. Y., May 15.-Nehr & Carpenter, eastern managers for the Northwestern Guarantee Loan Company, of Minneapolis, this morning made a general assignment and closed their doors. Two million dollars of $16,000,000 worth of debenture bonds recently issued by the Northwestern Guarantee Loan company has been disposed of to people in this city and vicinity through the eastern managers. CHICAGO, May 15.-Godfrey Clark & Co., pa-