6298. Spencer National Bank (Spencer, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
9715
Charter Number
9715
Start Date
July 13, 1932
Location
Spencer, Indiana (39.287, -86.763)

Metadata

Model
gpt-5-mini
Short Digest
640ffbeb

Response Measures

None

Receivership Details

Depositor recovery rate
49.3%
Date receivership started
1932-07-30
Date receivership terminated
1937-10-23
Share of assets assessed as good
35.2%
Share of assets assessed as doubtful
57.0%
Share of assets assessed as worthless
7.8%

Description

Bank suspended operations July 13, 1932 and did not reopen; receiver appointed later (James O. Saunders). Articles document misapplication/misappropriation of funds by officers, arrests and federal convictions. No explicit contemporaneous depositor run is described; sequence is a suspension/closing with receivership.

Events (4)

1. March 29, 1910 Chartered
Source
historical_nic
2. July 13, 1932 Receivership
Newspaper Excerpt
Spencer National bank, which closed July 13, 1932 ... suit names James O. Saunders, receiver of the bank, as the defendant.
Source
newspapers
3. July 13, 1932 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank suspended after misapplication/misappropriation of funds by officers leaving bank unable to pay depositors; county funds left unpaid.
Newspaper Excerpt
on July 13. 1932 the Spencer National bank suspended operations as a banking institution without paying back all money deposited therein
Source
newspapers
4. July 30, 1932 Receivership
Source
historical_nic

Newspaper Articles (8)

Article from The Reporter-Times, August 20, 1932

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OWEN COUNTY FINANCE BOARD FILES SUIT LOCAL MEN INCLUDED IN PROCEEDINGS SEEKING TO RE COVER COUNTY FUNDS The Spencer Evening World of Fri day says "A complaint on Depository Bond has been filed at the office of the Clerk of Owen circuit court by the Owen Board of Fnance of Owen county, Indiana, VS Karl 1. Nutter, Charles 0 Abbott, Edward L. Avery. C. Sherman Cunningham, Temple G. Pierson, Rufus H. Cline, and Gottlieb Rentschler: in which the plaintiffs, Homer H. May Mel Britton and Benjamin F. Mugg county allege that on July 13. 1932 the Spencer National bank suspended operations as a banking institution without paying back all money deposited therein by plaintift and has since that date and prior thereto. failed and refused to pay de positors of funds deposited in said bank, although due demand has been made by the plaintiff, through Dan V. Lucas, treasurer and Charles H. Min.nick, auditor of Owen county The plaintiffs also allege that the Spencer National bank was declared depository for public funds of said county in accordance with the laws of the state of Indiana and the Board of Finance accepted such a proposal and awarded to the bank upon its application the sum of $150,000 and designated the bank as a Depository of public funds in the maximum amount of $150. 000 and said bank executed and ten dered its bond as a public Depository in the penal sum of $90,000 as required by law and the defendants as sureties. The Owen county Board of Finance alleges that on July 13. 1932 it had on deposit in the said bank the sum of $52,780.26 subject to check and withGrawal by the officers of the County Board of Finance. The plaintiffs demand judgment from the defendants and each of them in the sum of $60,000. Miller and Hoadley represent the Owen county Board of Finance as attorneys. An alleged copy of the personal bond of the Depository is attached and filed and marked exhibit 'A' Summons was issued to sheriff of Morgancounty for Karl L. Nutter, Charles O. Abbott and Edward L. Avery and to the sheriff of Owen county for Temple G. Pierson, Rufus H. Cline, and Gottlieb Renischler, returnable October 17, 1932."


Article from The Indianapolis Times, August 25, 1932

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BANKERS ARRESTED Misappliance of Funds Is U. S. Court Charge. Arrested on charges of misapplying funds of the defunct Spencer National bank, Owen county, Karl I. Nutter, Martinsville, former bank president, and Frank Wright, 2131 College avenue, former cashier, were held to the federal grand jury on Wednesday. The bankers were charged in warrants with "misapplying" funds to the amount of $3,500 on or about June 23. Federal accountants are studying records of the closed bank in preparation for investigation at the next grand jury session, according to George R. Jeffrey, district attorney. Suits to have Nutter and four other stockholedrs of the Spencer bank and the Martinsville Trust Company, also in receivership, declared involuntary bankrupts, were filed in federal court this week. The suits, filed by officials of various taxing units of Morgan and Owen counties, are seeking to recover on bonds given by the five men to guarantee public funds in the two banks. Nutter and Wright were released by Fae W. Patrilck, United States commissioner, on $2,500 bond each.


Article from The Dearborn County Register, September 1, 1932

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Items of General Interest total valuation for all classes The of property in Decatur county by the is $21,933,382 as 1932 compared with last year. is 22½ per cent, or $6,371,923. Three barber shops in Brownstown have worked out plan whereby they will aid the unemployed. On Monday Thursday they will cut hair without charges of any kind for anyone who is out of work or otherwise situated so as to be unable to afford such. The Jackson County Farm Bureau has filed an appeal with the state tax board in an effort to prevent the per cent increase in valuation in the counIt is said that a number of other counties who were included in the per cent increase, are planning to assist Jackson county in the fight to prevent the boost in valuation. The five cent increase would increase the valuation farmland in Jackson county from the figure set by the county board of review $7,018,440, by $350,922. making the total valuation $7,360,362. Owen County Commissioners have filed a complaint on depository bond Owen Circuit Court against Karl Nutter, Charles Abott. Edward Avery, Sherman Cunningham of Martinsville, Tempel Pierson, Rufus H. Cline Gottlieb Rentschler of Owen county. The complaint alleges that on July 13, 1932 the Spencer National Bank suspended orperation as banking institution without returning to the county all money deposited therein. The complaint also alleges that the bank was declared a public fund depository in accordance with Indiana laws. bond was signed to this effect by the above named defendant officers as surety. The counalleges that on July 13, the county funds amounted to something over $52,700. The county asks judgment in the sum of $60,000.00. In an effort to bring the financial affairs of the organization to more stable basis, stockholders of the St. Paul Building and Loan Association agreed to accept a twelve and onehalf per cent reduction in stock of the institution. The step has been taken in order that the company will be able to realize on some of the assets of the organization without the necessity of paying dividends on the entire stock. Mrs. W. B. Ross of Aurora, left recently with group of Gold Star Mothers on the steamer President Roosevelt to visit the battlefields of France. Mrs. Ross visit the grave of her son, Keith. for whom the Aurora American Legion is named. The trip will over a period of six weeks during which they will be guests of the government. At a recent meeting of the city council of Vevay, the budget for 1933 was drawn up and the tax rate was reduced from $1.34 to 75 cents. The school board made reduction in the tax rate from $1.40 to $1.20. Captain Nicholas DuRand, pilot of the steamer City of Memphis which struck rock while the boat was returning to New Albany, Ind. from an excursion and imperiled the lives of 800 passengers, was given 60 day suspension. told Federal Board of Inquiry that he had'taken the boat out of the river channel. The accident occurred at Portland near the government lock and boat started to sink in mid-stream. became alarmed but officers were able to keep order and avert a panic and reached the Kentucky shore safely. The Annual Harrison County Fair was decided success. Fair officials reported that more than 10,000 attended on Wednesday with almost as many on Thursday. Friday was several hundred ahead in attendance over any Friday for several years. Night crowds were larger than for sometime. One of the most interesting feaures of the fair was the presenting of four men present who have attended all the fairs. Jesse Chaille, age 54, of Milan died at the Whitlatch hospital, from injuries sustained when his left the road on State road A bumblebee had entered his car and in trying to drive it out, lost control of his car and plunged into sink hole at the roadside. He received a fracture of the skull, four broken ribs, severe concussion of the brain and lacerations on his face. He is survived by his wife and one daughter. According to Robert Feller, deputy county auditor of Monroe county, tentative salary of county officers, as provided by legislation passed at the recent special session of the general assembly will total $10,045.27. The county budget has been reduced $15,379.88 total counexpenditures. The proposed tax levy is 58 cents, which five cent reduction from the 1931 rate. The salaries of the county treasurer and the circuit court officials suffered the largest The salary of the county superintendent of schools was ereased slightly. The county coroner's salary remained the same. Approximately 1,000 men are employed at the Bloomington and Bloomfield plants of Showers Brothers Furniture company. The company officials say that the outlook brighter than it has been for several months. The city dads of the city of Rockport have gone back to the good old days of candles and coal oil lamps as far as street lights are The city is out of money and by cutting the street lights are saving $2,000 per year. The interstate commerce commission has authorized the Baltimore and Ohio railroad to borrow $31,625,000 from the finance corporation. The money to used to refinance $63,250,000 bond issue due March 1, 1933. The B. & and its subsidiary the Alton already have received $35,000,000 in loans from the corporation. five pre cent dividend, a total of $70,000 will be distributed by the New Albany Bank and Trust Company which has been in process liquidation several months. This is the fourth dividend issued by the bank, which closed last September. The dredge "Urbana" owned by company in Greenville is in Vevay to carry out a government contract for dredging the river channel. Three slices will be made by the dredge in order to cut 330 foot strip. The present normal pool of 418 feet above level will be cut to 406 feet. A government patrol yacht "The Aurora was near Portsmouth on the Ohio river Wednesday of last week. The fire said to have been caused by backfire the carburetor. Capt. Ben Harris Cincinnati, formerly Rising Sun, Ira DeHart and Herschel Stewart of Rising Sun escaped lifeboat. They received slight injuries. The yacht was valued at $18,000. A $270,000 cut will be made the budget of Indiana University for $1932-33, of which is to be cut from the Bloomington expenses. The University officials are making careful study of the budget of all departments to cut their costs before making any cuts in the salaries of faculty members. A disput as to the closing of Buckeye school, Ohio county; caused those who seek to close the school to appeal to State Supt. George C Cole. Township trustee, H. B. Scranton granted petition requesting that the school be closed. When the matter was brought before the County Superintendent he decided in favor of continuing the school. It is said that two years the state superintendent declined to consider an appeal on the same question, on ground of lack of jurisdiction. Mrs. Marjorie Wentmore Moor, who is alleged have been shot by her husband, Hubert C. Moor while enroute from visit with their parents at Indianapolis, to their home in Robinson, was former teacher at Brookville. Mrs. Moor taught in the Brookville high school during 1922, 23 and 24. She also had charge of English and girls Physical Education. Mr. Moor also a teacher having taught in the Robinson, III. high school. Albert Wagner, 24, of Vincen: wshes to go back to the Indiana refrom which he says he has been a parole violator since 1929. Wagner claims that he owes the state six more years of penal service thinks that. he may able find employment at the end of his term. The Ripley County Fair Association has elected the following officers for next year, 0. R. Jenkins; vice-president, W. M. Turner; secretary, G. A. Triplett and treasurer, Jacob Young. The association was well pleased with the fair this year, though it was not a success financialThe spirit of cooperation and the increase in attendance at this year's fair, are given as reasons for keeping the fair going. Mrs. Vernie Bray, of county, is suing John Dalgleish, Madison policeman and the Metropolitan Casualty Insurance Company of New York, for $10,000 damages due to the death of her son, Virgil Bray. Dalgleish a of from one to ten years for the death of Bray, who met his death in the spring while being pursued by police officers.


Article from The Indianapolis Times, February 4, 1933

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BANK OFFICIALS ARE GIVEN U. S. PRISON TERMS 'Think of Depositors,' Says Baltzell in Sentencing Three State Men. Replying to pleas for leniency with the remark, "Think of the depositors," Federal Judge Robert C. Baltzell Friday sentenced three officials of the defunct Spencer (Ind.) National bank to a total of nine years and a day for violation of the national bank act. Karl I. Nutter, president of the Spencer bank and the Martinsville Trust Company, was sentenced to five years in Leavenworth prison. The trust company also is in the hands of receivers. Frank Wright, 3129 College avenue, cashier, was sentenced to the federal reformatory at Chillicothe, O., for three years. The bank's vice-president, Temple G. Pierson, was sentenced to a year and a day in Leavenworth prison. The three officials were among 170 men and women who faced Baltzell, charged with bootlegging, narcotic peddling, counterfeiting and kidnaping. Scored by Judge Nutter, who claimed he lost $200,000 in the closing of the two institutions, was scored by the judge when he said he did not know the condition of the Spencer bank at the time the misappropriation of funds took place. Nutter said he asked Wright for funds from the Spencer bank to bolster the crumbling Martinsville institution, but that he had no idea he was endangering the bank's security. "You were a bank president for twenty years," said Baltzell. "You should have found out in that time that it was your duty to know the bank's condition." When Homer Elliott, attorney for Nutter, pointed out that none of the officials had taken money for their own use, Baltzell said, "Does that mean anything to the depositors who now are living in or near poverty because of the money they lost in the bank?" Gets Slight Sentence Violation of the new law against use of the mails for extortion brought a sentence of a year and a day for Myr. Myers of Greenwood. The law was passed by congress following the Lindbergh kidnaping case last year. Myers sent a letter to a Greenwood business man threatening to kidnap his baby if he did not deliver $3,000. Myers was captured when he tried to collect the money. "I am passing a light sentence on this man," said Baltzell. "But if any gangsters try it, I will give them the limit." The law calls for "imprisonment of not more than fifteen years." Many Others Sentenced Those sentenced in the Indianapolis division on liquor charges were: Harry McCormack, four months; Joe Marino, six months; Joseph Dumato, $150 fine and ninety days; Walter Ewing, Negro, six months; Frank Beard, four months; William Jones, one day; Albert Shireman, four months; Charles Fosso, four months, and James Presuttio, four months. Sentenced on other charges were: Charles Truckey of Stendal, passing counterfeit money order and possession of counterfeiting equipment, five years; Miss Marguerite Pappas, Greenville, O., passing countereit money orders, year and a day; Raymond Enneking, Brooklyn, N. Y., tampering with mail box, two years; Arthur Dillingham, forging adjusted service certificate and counterfeiting, five years on each count, to run concurrently; Lauren H. Turk, white slavery, five years; William Ball and Helen- Sullivan forging,


Article from The Indianapolis Times, February 25, 1933

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# BANKER CONVICTION # SPLITS DEPOSITORS Many Plead for Suspension of Term: 250 Protest. Divided sentiment among residents of Spencer, Ind., as to advisability of suspending the year and a day prison sentence imposed on Temple G. Pierson, vice-president of the defunct Spencer National bank, was found by Federal Judge Robert C. Batzell at a hearing late Friday. Many persons who had lost sums ranging as high as $27,000 by failure of the bank were among those pleading on behalf of the bank official, charged with taking part in one transaction said to have helped result in the bank's failure. Baltzell took the case under advisement until March 4, after receiving a petition signed by 270 residents of the town protesting against suspension of the sentence. Two other officials of the bank were sentenced by Baltzell two weeks ago, Karl I. Nutter, Martinsville, president, receiving a five year sentence, and Frank Wright, Indianapolis, cashier, being sentenced to serve three years in prison.


Article from The Indianapolis Times, February 25, 1933

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# BANKER CONVICTION # SPLITS DEPOSITORS Many Plead for Suspension of Term: 250 Protest. Divided sentiment among residents of Spencer, Ind., as to advisability of suspending the year and a day prison sentence imposed on Temple G. Pierson, vice-president of the defunct Spencer National bank, was found by Federal Judge Robert C. Batzell at a hearing late Friday. Many persons who had lost sums ranging as high as $27,000 by failure of the bank were among those pleading on behalf of the bank official, charged with taking part in one transaction said to have helped result in the bank's failure. Baltzell took the case under advisement until March 4, after receiving a petition signed by 270 residents of the town protesting against suspension of the sentence. Two other officials of the bank were sentenced by Baltzell two weeks ago, Karl I. Nutter, Martinsville, president, receiving a five year sentence, and Frank Wright, Indianapolis, cashier, being sentenced to serve three years in prison.


Article from The Indianapolis Times, June 27, 1933

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SPENCER SCHOOL CITY SUES BANK RECEIVER Seeks Status of Preferred Creditor in Federal Court Action. Preferential creditor of the Spencer National bank, which closed July 13, 1932, was the status sought by the school town of Spencer in a federal court suit filed Monday. The suit names James O. Saunders, receiver of the bank, as the defendant. It alleges that on July 13 it had $20,039.03 on depost in the bank. The bank is not qualified to accept more than $15,000 of the school town's funds, the suit asserts. It also declares that a transfer of the funds from the Owen county treasurer was illegal.


Article from The Indianapolis Times, June 27, 1933

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SPENCER SCHOOL CITY SUES BANK RECEIVER Seeks Status of Preferred Creditor in Federal Court Action. Preferential creditor of the Spencer National bank, which closed July 13, 1932, was the status sought by the school town of Spencer in a federal court suit filed Monday. The suit James O. Saunders, of the bank, as the defendant. It alleges that on July 13 it had $20,039 on depost in the bank. The bank is not qualified to accept more than $15,000 of the school town's funds, the suit asserts. It also declares that transfer of the funds from the Owen county treasurer was illegal.