6260. First State Bank (Shelburn, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 16, 1929
Location
Shelburn, Indiana (39.178, -87.394)

Metadata

Model
gpt-5-mini
Short Digest
b57cff0f

Response Measures

None

Description

The First State Bank of Shelburn was closed by the state on or about Jan. 16, 1929 after discovery of large forgeries/defalcations by president Jessup F. Bolinger. State examiners sought and a receiver was appointed; articles state the bank is defunct and will be liquidated and that it will not be reopened. There is no description of a depositor run preceding the closure.

Events (3)
1. January 16, 1929 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed by state after discovery that president Jessup F. Bolinger forged large amounts of notes/forgeries (estimates $85,000–$250,000; later inventory showed $120,000+ loss).
Newspaper Excerpt
practically every resident who had surplus money was a depositor in the First State bank, closed by state after its president, Jessup F. Bolinger, confessed to forging notes
Source
newspapers
2. January 25, 1929 Receivership
Newspaper Excerpt
A receiver for the Shelburn Bank was to be appointed... H. V. Stark, manager... would be appointed receiver. The Shelburn bank has been placed in the hands of receiver and an attempt will be made to liquidate its remaining assets.
Source
newspapers
3. January 27, 1929 Other
Newspaper Excerpt
Bolinger... was sentenced... to serve two to fourteen years in the state prison when he pleaded guilty to charge of forgery. The Shelburn bank has been placed in the hands of receiver and an attempt will be made to liquidate its remaining assets.
Source
newspapers

Newspaper Articles (10)
1. January 24, 1929 Garrett Clipper Garrett, IN
Article from Garrett Clipper, January 24, 1929

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CLOSING OF SHELBURN BANK CAUSES Shelburn, Ind., Jan. bank has made this mining of 1,200 place of gloom, as resident who was depositor in the First State bank, closed state after president, Jessup Bolinger, forging in the amount of proximately Closing of the bank's and of Bolinger followed closely the death Edgar Maple, found shot death in the People's National Bank and Trust company of which he vice-president. Business men and other residents Shelburn have been struggling against financial difficulties for nearthree due to idleness of coal years, miners. The town except for busfarmers living around dependent entirely upon the mining industry. Bolinger has asserted that the bank's depositors not lose through his but view expressed by Charles Thompson, vice-president, who believes will be salvaged from the In the meantime state and county continued to investigate the Maple death. Threaten Bank President Sullivan, Ind., Jan. within two days of the man who shot Edgar Maple death in the People's bank here and threats of violence Bolinger, president the First State bank Shelburn, were startling today bank State and county vestigating the case, have abandoned early theory that Maple killed himself and they the name of the man who visited Maple in the bank, of which he and where he found dead. The name the visitor left by Maple his family, after he had arranged to meet banker by phone, according police. believed the visitor took missing from small safe near which Maple's body found. convinced there connection the death Maple and attempt suicide Bolinger few hours after the van banker's was found. linger was found unconscious in the of his home, due fumes garage from the of his automobile Bolinger was held the Sullivan county jail here, charged with forg. ing of which held by the People's bank. According to police, some residents of Shelburn have made threats against Bolinger.

2. January 24, 1929 Vidette-Messenger of Porter County Valparaiso, IN
Article from Vidette-Messenger of Porter County, January 24, 1929

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BANK TRAGEDY HAS MADE CITY GLOOMY PLACE CHELBURN Ind., Jan. -Sullivan county's bank tragedy has made this mining town of 1,200 # place of gloom as practically every resident who had surplus money was a depositor in the First State bank, closed by state at ter its president, Jessup F. Bolinger, confessed to forging notes in the amount of approximately $85,000 Closing of the bank's doors and arrest of Bolinger followed closely the death of Edgar D. Maple, found shot to death in the People's Na tional Bank and Trust Company of Sullivan, of which he was vicepresident. Business men and other residents of Shelburn have been struggling against financial difficulties for nearly three years. due to idleness of coal miners. The town except for business of farmers living around it, is dependent entirely upon the mining Bolinger has asserted that the bank's depositors will not lose through his defalcations, but a different view is expressed by Charles Thompson, vice-president, who believes little will be salvaged from the institution. In the meantime state and county officials comtinued to investigate the

3. January 25, 1929 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, January 25, 1929

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$120,000 SET AS BANK LOSS Examiners Complete Check of Books at Shelburn. BY GEORGE SCOFIELD Times Staff Correspondent SULLIVAN, Ind., Jan. 24.-Depositors in the wrecked First State bank of Shelburn stand to lose at least $120,000 through the frenzied manipulations of Jessup F. Bolinger, former head of the town's only depository, it was learned today as state bank examiners, under direction of K. V. Brownell, completed their probe. The bank was closed after a series of startling events Jan. 16 which began when the body of Edgar D. Maple, vice-president of the Peoples National Bank of Sullivan, was found with a bullet in his forehead in his bank. Bolinger, after an alleged suicide attempt, admitted forging some $250,000 in notes, $115,000 of which were held by Maple's bank. He is held in county jail here on forgery charges. Receiver Sought A hearing on an application for receivership for the bank was to be held before Circuit Judge A. E. Debaum this afternoon. A. E. Barr, chief state bank examiner. arrived in Sullivan this morning to aid in the presentation of the examiners finding regarding the defunct Shelburn bank. It was understood that H. V. Stark. manager of the Shelburn Telephone Company would be appointed receiver. With the announcement of the shortage amount, the little town of 1,200 was plunged into gloom. It had been expected that a shortage would be discovered in the institution, but it had been estimated at less than $50,000 on the face of Bolinger's first statement that his bank was solvent. More Violence Threats Business in the town is virtually at a standstill, and many families are seriously discussing moving to another community. Threats of violence against Bolinger have become more open, especially among coal miners. Investigators, now confident there was a definite connection between Maples' death and Bolinger's alleged suicide attempt, have virtually abandoned the first theory that Maple committed suicide and are concentrating on a murder theory and the attempt to apprehend his slayer.

4. January 25, 1929 Muncie Evening Press Muncie, IN
Article from Muncie Evening Press, January 25, 1929

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BANK RECEIVER TO BE NAMED Attempt to Link Death With Attempted Suicide. SULLIVAN, Ind., Jan. 25. With a definite connection between the death of Edgar Maple, vice-president of the National Bank here and the alleged suicide attempt of Jessup Bolinger, president of the First State Bank at Shelburn, established. according to authorities, the investigation centered along that line today. The body of Maple was discovered by an assistant cashier who opened the bank, with a bullet hole in his forehead. A few hours after the finding of Maple's body, Bolinger was found overcome by carbon monoxide gas in his garage. A receiver for the Shelburn Bank was to be appointed this afternoon by Circuit Judge J. A. DeBaun. J. H. Crowder has been appointed by directors of the Sullivan Bank as Maple's successor. Authorities also said they would investigate further the charges that Bolinger and Maple and other business men had investigated heavily in oil stocks. It was considered likely that a special session of the grand jury would be called to investigate the cases. Lewis Waterman's application for patent on his first fountain-pen was filed in 1883.

5. January 27, 1929 The Anderson Herald Anderson, IN
Article from The Anderson Herald, January 27, 1929

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FORGERY PLEA SENDS SHELBURN BANKER TO CELL Admits Guilt on Bolinger One Charge and Is Sentenced. LINK IN SULLIVAN DEATH Officials Report Other ForWill Amount geries Ind., Jan. Bolinger, was president of the First State Bank of Shelburn, Ind., until it was closed on January 16, was sentenced today to serve two to fourteen years in the state prison when he pleaded guilty to charge of In addition he was gery. fined $100. Bolinger sentenced on the specific charge of forging the name Gaskins, of Shelburn, note for officials questioned him since his arrest the day the bank closed say has confessed other forgeries and defalcations which will amount Included in the forgeries admitted Bolinger notes approximate value $80,000 held by the People's National Bank and Trust Sullivan. Edgar company Maple, this bank, found dead in the bank Jan. 16. McGrew, coroner, held that bullet which caused Maple's death was inflicted by an known murderer. Other officials have expressed the belief that Maple committeed suicide. By Gas. About two hours Maple's body was found, Bolinger was dis. covered in his garage at town six miles of Sullivan, unconscious from the effects of bon monoxide gas fumes emitted by his He was revived. rectors of his bank met during the adopted resolution to close the institution. Bolinger questioned regarding several transactions discovered Kenneth Brownell, state bank examiner, and during the night was rested on forgery charge. made sworn statement in which he declared that Maplo had no know. ledge the forged notes that were the Sullivan bank. Receiver Takes The Shelburn bank has been placed in the hands of receiver and an attempt will be made to uidate Its remaining assets. What these will total has not been deter mined. Dolinger to be taken the prison next week by Sheriff Luther Keene. He has been held here since arrest. He made furnish the $10,000 bond attempt which he held. into Maple's death being The state crimnial and state police and private detective agencies have been co-operating with local authorities the inquiry.

6. March 19, 1929 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, March 19, 1929

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the theft of bonds as charged Sullivan oy of William Abbott, former man. now a resident of Texas. Following Lang's disappearance in Abbott filed a claim against he 1928, bank for the bonds, which safe the asserted had been placed in keeping there with Lang. Victim of Circumstances Abbott had withdrawn the bonds he left Sullivan, Lang con- he before today, declaring also that withtended could show a receipt for the drawai. Abbott claim and the resultThe suit were the immediate causes ant of the closing of the bank. Belief that Lang will defend hima "victim of circumstances" that self and as the problematical defense as will involve other men is seen, the preparations are made to bring hear the grand jury out of recess to to of the man who was urged return story to Sullivan by his friends and "clear it all up.' Released on Bond Released on a bond signed by his friends, the aged banker told North today of his wanderings in Ohio, return South Carolina, and his There and here from Spartanburg, S. C. clerk. he was employed as a hotel He told how at one time, destitute, filling took employment as a S. C. station he attendant at Florence, met in Importuned by friends he to reKnoxville, Tenn., he agreed to "face the music, Monday and turn he arrived in Vincennes Sullicompleted night the trip by auto to van. was met by Weslay Williams, Richard He county sheriff, and CitiBailey, Sullivan former president of the zens Trust Campany. Lang was questioned at length result the trip, but the revealed. of throughout the questioning was not Key to Series of Crashes alleged irregularities in closed the The company, which was retrust 23, 1928, and thrown into Feb. were said to total $15,000 $5,000 ceivership, in forged notes and possibly in cash. the return of Lang, state lid With officials hope to lift holds the the banking mystery box that in off key of to a a series of bank crashes Sullivan believed county. that Lang can open the It doors is to deals that involve Shelthe First State Bank of defunct and the episodes that death tripped of burn themselves in the of Edgar over D. Maple, vice-president and People's National Bank conviction the Company, and the BoTrust embezzler of Jessup P. State linger, as an president of the First Bank of Shelburn. Florida Fiasco in Tangle the tangled skein of oil, real In and bonds, which involves there estate Sullivan county bankers, Florida is these twisted, too, the snarl of a land fiasco. Three figures prominent in involved Indipolitics are said to be bank ana this welter of oil deals, in closings, and bursting land bubbles, be for two notes, said to United $5,000 through and $2,500, signed by a repreStates senator, an Indiana Terre sentative in congress, and shares a Haute politician, given for com- in Florida land development signs pany, a which shows no further of life. These two notes, it is expected, of be listed among the assets Lee F. will Bolinger, by his attorney, of Sullivan, in the bankruptcy former proceedings Bays brought by the bank president's creditors. list of assets was due to have This filed March 8 with Everett referee been of Clinton, federal Inin Davisson bankruptcy for southwestern diana. Bolinger Confessed Bays obtained a ten-day exten- in because of the manner insion Bolinger's assets were list volved which and was due to file the Monday morning at 10 a. m. failed to do so and explained total that He he had not completed the listing. the claimants are total- three Among who are holding notes ing banks, about $200,000 which were forged by Bolinger. Within a few hours after his ar- to Jan. 16, Bolinger confessed was rest. forgeries, and a week later to the to the state prison fourserve on his a way term of from two to teen years. declared when brought officials Bolinger bank examiners and explain before Shelburn bank to his forgof the forgeries that he began on a his dropping $35,000 "hot ery tip after in 1923 to buy Sinclair oil.

7. March 21, 1929 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, March 21, 1929

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LANG WILL BE STAR WITNESS IN BOND FIGHT Claim for $60,000 Will Be Presented April 22 in Vincennes Court. BANK WILL NOT REOPEN Conditions in Sullivan Are Regarded as Too Unfavorable. By Times Special SULLIVAN, Ind., March 21.-Interest in efforts to clear up Sullivan county's tangled banking situation will be centered in Vincennes April 22, when in Knox circuit court William Abbott of Spencer will present his claim for return. of $60,000 worth of Liberty bonds from the closed Citizens Trust Company. James M. Lang, 72, president of the trust company, who returned to Sullivan Monday night after being a fugitive for more than a year on a charge of forging $15,000 in notes, is expected to be the star witness in the Abbott hearing Lang asserts he returned the bonds to Abbott. Regardless of the outcome of the case, Ben C. Crowder, receiver for the company, believes there is scant chance that the concern will be reopened. Many Hope for Reopening With return of Lang-"Uncle Jimmy" to hundreds of county residents-many depositors expressed hope that the bank would be reopened. But Crowder points out that the city already has two banks; that three others in the county are closed, and that industrial conditions are bad, due to idleness in the coal mining industry. Lang's testimony at Vincennes is not expected to disclose any great volume of evidence regarding the Sinclair oil stock phase of the county banking situation. He declares he never dealt in the stock and that his sole connection with oil was represented in small sums for "wild cat" drilling ventures. The next court move in the situation will be at Newport March 28, when a list of assets of Jessup F. Bolinger, president of the closed First State Bank of Shelburn, is filed by his attorney, Lee F. Bays, with Everett Davidson, federal referee in bankruptcy. Grand Jury to Report Bankruptcy proceedings against Bolinger, who is serving a term in Indiana state prison in Michigan City, after confessing to a forgery charge, were involuntary. Estimates of Bolinger's forgeries of notes run as high as $200,000. The Sullivan county grand jury will report April 15 on.its probe of the situation, including the fatal shooting of Edgar D. Maple, vicepresident of the People's Bank at Sullivan. Lang, facing a charge of forging $15,000 in notes, will not be tried before the May term of the Sullivan circuit court, unless he asks for an earlier hearing, Prosecuting Attorney Jesse Bedwell announces. Business Staggers On In the meantime, business throughout the county is going on as best it can under the circumstances. Many residents have money in closed banks. As yet no estimate has been made of what percentage of deposits, if any, will be paid. "I don't know whether I have even a dime left," is an oft-heard remark from bank depositors.

8. March 27, 1929 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, March 27, 1929

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PLAN ACTION ON BANK Receiver of Shelburn Institution to Collect Assets. H. V. Stark, receiver for the First State Bank, Shelburn, and his attorney, Judge A. Bidwell, conferred today with state banking officials. They declared they will make an effort to collect all possible assets. President Jessup F. Blinger of the defunct institution is serving time in the Indiana state prison and R. G. Kirk, assistant cashier, is now under indictment on embezzlement charges.

9. March 27, 1929 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, March 27, 1929

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PLAN ACTION ON BANK Receiver of Shelburn Institution to Collect Assets. H. V. Stark, receiver for the First State Bank, Shelburn, and his attorney, Judge A. Bidwell, conferred today with state banking officials. They declared they will make an effort to collect all possible President Jessup F. Blinger of the defunct institution is serving time in the Indiana state prison and R. G. Kirk, assistant cashier, is now under indictment on embezzlement charges.

10. April 15, 1929 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, April 15, 1929

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to Grand Jury Reconvenes Conclude Tragic Financial Crashes. INCLUDES MAPLE DEATH Suicide Theory Gaining in Support Among Citizens. B1 Times Special SULLIVAN, Ind., April 15.-Sullivan's interest today turned toward which has affected the which has sent stitutions, its three bank of tangle, county's financial the presi- indent of one to serve a sentence of from two to fourteen years in Michigan City prison, caused the death of the vice-president and trust officer of a second and which made the president of the third a fugitive from his home city for more than a year. This came with a reconvening of the into the of finish this morning its probe grand death jury to Edgar D. Maple, vice-president and trust officer of the Peoples National Bank, and into the affairs of the defunct Shelburn bank, for forgeries on which Jessup Bolinger, its president, is now in state prison. It seems improbable that Bolinger will be brought back to face the grand jury, though Prosecutor Jesse Bedwell had once declared he might be. Since the jury was granted a rehas an and of cess his Bolinger assets filed liabilities inventory before a federal court referee in bankruptcy. This, is is understood, is to be presented to the grand jury for its use in untangling affairs of the Shelburn State Bank. Woman on Jury Mrs. Georgia Bardsley, Shelburn, is the only woman member of the jury. So far as could be learned, no witnesses in the bank cases were the those appearing in ,case. It is heard jury, another. at morning session expected being of called the the be in session today Boljury Developments will two included in the weeks. inger bankruptcy case filing of claims with W. T. Douthitt, trustee, appointed by Everett Davidson. federal referee. The claims included one of $150,000 for the Peoples bank; $2,181.80 by Herschel V. Stark, receiver of the defunct First State Bank of Shelburn, and $9,496.60 for the Terre Haute Trust Company. Sentiment in Sullivan regarding the death of Maple, who, it was discovered, had made heavy loans from his bank to Bolinger and discounted notes Bolinger forged, has changed gradually until fully half of the town believes he took his own life. At first more than 90 per cent of the citizens believed Maple was murdered. Bolinger's inventory showed the loss of the bank Maple represented to be more heavy than at first was thought. It also showed that a Terre Haute Terre Haute lost $23,000 bank, pany, the through Trust Bolinger's death, Combad Since Maple's R. Trust James Terre paper. Haute Royce. president Company of also the took his own life. these events of the town speak more men Following business frankly think of Maple's death, saying they he shot himself. Shortly after the grand jury was granted a recess, the town was thrown into another uproar when Uncle Jimmie Lang, president of Trust more a leaving a disappeared the Citizens tangled than condition Company, year of who ago, affairs at his bank, was brought back to his home town "to help straighten out things." Bond Case Thursday Uncle Jimmie's first statement to old neighbors was that he had not taken a cent from this bank and returned to William of $60,000 bonds which that Liberty Abbott he had Spencer Abbott worth claimed of had been missing since Lang left. Abbott's suit for the return of the bonds will be tried in Knox county circuit court at Vincennes, starting Thursday. Sullivan, to a man, says it becontinued to lieves It has that Lang returned lionize the bonds. Lang return and is expected to to moral since send him a to his delegation give support Vincennes during with the trial. Sullivan oday is as one of its business men declared. "lanquid" in interest about the Bollinger-Maple case, "since that money is gone. anyway." but "rarin' to go" in its efforts to prove Lang "hasn't got them bonds and did nothing wrong but get scared."