Commercial Bank - Russiaville, IN

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: May 1, 1893*
Location: Russiaville, Indiana (40.418, -86.271)

Metadata

Model: gpt-5-mini
Short Digest: a8823646

Response Measures

None

Description

The Commercial Bank of Russiaville suspended in May 1893 and a receiver (C.E. Waddell) is mentioned; the suspension appears permanent given receivership and court proceedings in 1894. Immediate trigger cited as failure of the Columbia National (a correspondent) though later testimony implicates embezzlement and misuse by John Paris and associates.

Events (2)

1. May 1, 1893* Receivership

Newspaper Excerpt: C. E. Waddell, receiver of the Commercial Bank of Russiaville, who testified that Paris was only connected with that concern as a shareholder.
Source: newspapers

2. May 1, 1893* Suspension

Cause: Correspondent
Cause Details: Article states the failure of the Columbia National (May 12) was the immediate cause of the closing; local mismanagement/embezzlement by John Paris and associates also cited as underlying cause.
Newspaper Excerpt: This bank suspended in May, 1893, with face value of assets $65,000 and actual value only $20,000.
Source: newspapers

Newspaper Articles (1)

1. June 22, 1894 The Indianapolis Journal Indianapolis, IN

Article from The Indianapolis Journal, June 22, 1894

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Article Text

PARIS TRIAL AGAIN MORE DAMAGING EVIDENCE POURING IN AGAINST THE BANKER. Brazil Grand Jury Indicts Seven Boys -Nonunion Man at Dunkirk Shoots Four Union Men. Special to the Indianapolis Journal. FRANKFORT, Ind., June 21.-The Paris embezzlement case was resumed this morning at 8:30 before a crowded court room. Judge Kent ruled on the law questions argued Tuesday afternoon permitting the State to present testimony showing Paris's relations with the chain of banks controlled by Paris, Dwiggins & Co. The first witness called was C, E. Waddell, receiver of the Commercial Bank of Russiaville, who testified that Paris was only connected with that concern as a shareholder. This bank suspended in May, 1893, with face value of assets $65,000 and actual value only $20,000. Mr. Paris owed this bank $7,600, and was an indorser for $2,000. When the Russiaville bank failed it owed $35,000. He said $5,000 had been realized from local stockholders, but not a cent from Paris, Dwiggins & Co. Ruben W. Wiles, cashier of the Russiaville bank, was next called. He had worked for Paris at Attica for nine years. Paris was a nephew of Zimri Dwiggins. When the Russiaville bank began business it had no capital. John W. Paris was president and organized the Commercial State Bank, taking the place of the old bank, putting in the assets and the good will of the old bank at par, and the stock of the new bank was put on the market at $150 per share. He said from $6,000 to $8,000 worth was purchased by local people. As cashier he reported to Mr. Paris at Indianapolis. Paris never contributed any funds to the concern. The United States Loan and Trust Company paid for its stock in bonds. Mr. Paris's advice and signatures were always regarded as authoritative. Mr. Miles was a partner in the bank, but did not have a cent invested. It was at Mr. Paris's suggestion that tne bank suspended. There had been received in deposits $30,000, but only $4,000 were on hand when the bank failed. When the Greentown bank opened it drew out of the Russiaville bank $25,000, and this was afterwards paid back by the Columbia National of Chicago in a very few days. The failure of the Columbia National was the immediate cause of the closing of the Russiaville bank. Just before noon the books of the Russiaville bank were presented for examination. After the noon recess, Louis S. Waldon, cashier of the Greentown Bank, and indicted with Paris, took the stand, answering the questions put to him by the State with promptness. The capital of his bank was $2,500, he said, realized on a draft on the Columbia National. Mr. Waldon had the books of the bank present and explained certain entries. He said that Paris had drawn various sums from $5,200 to $1,000 out of the bank on his individual note and the money was never paid back. Paris's word was law, he said, and he (Waldon) obeyed instructions. The witness had a working interest only in the bank, but had purchased gold mining stock with money taken from the bank. When the Columbia National failed, May 12, he received a telegram to close the bank. He had received deposits up to May 11. On the day the bank suspended the deposits were $18,623; loans and discounts, $15,000. Paris had represented to Waldon that the bank was perfectly sound. James Curless, the prosecuting witness, and a depositor who lost $281.40, made a. deposit a few hours before the bank closed. Walter S. Temple said he was solicited by Paris, a few days before the bank failed, to take stock, as the bank was to be reorganized. He was told that it was not his money that was needed, that the bank was full, but his influence. He could have got stock for 132 and was told that the bank was making 12 per cent. James P. Parker, a Greentown business man, said he lost $1,077, which he had on deposit, as treasurer of the Odd Fellows' lodge. He had been assured by Paris and Governor Chase that everything was all right. John T. Linden, the Dunkard president of the Russiaville bank, told how he had been induced to go in the banking business by Mr. Paris. "It was the only time I ever held office," said the old gentleman, and it cost me $1,200. John L. Moody and A. S. Thompson had also listened to Paris to their sorrow. Court adiourned until to-