6346. Farmers State Bank (Urbana, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
September 19, 1932
Location
Urbana, Indiana (40.898, -85.793)

Metadata

Model
gpt-5-mini
Short Digest
c9ce640b

Response Measures

None

Description

Multiple articles (1932–1934) describe the Farmers State Bank of Urbana as closed and under a receiver (H. Smith). No article describes a depositor run; instead the bank was closed and in receivership with suits and judgments against stockholders and alleged mismanagement (signing of depository bonds, turning over notes to protect deposits). Classified as a suspension leading to permanent closure/receivership.

Events (2)
1. September 19, 1932 Receivership
Newspaper Excerpt
H. Smith, receiver for the Farmer's State bank of Urbana, was today named trustee ... Judgment was taken today in suit of Nondus Pretorius against directors of the Bank at Urbana for enforcement of the stockholders liability law. The court ordered a 100 per cent assessment against the stockholders. the same to be paid to A. H. Smith, receiver ... The total judgments amounted to about $12,000. (Chronicle Tribune, 1932-09-19).
Source
newspapers
2. September 19, 1932 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank already closed; evidence of mismanagement and questionable handling of depository bonds and notes by cashier and directors; closing appears due to adverse bank-specific problems.
Newspaper Excerpt
H. Smith, receiver for the Farmer's State bank of Urbana, was today named trustee ... affairs in the closed institution were such that he would probably request a grand jury investigation.
Source
newspapers

Newspaper Articles (4)
1. September 19, 1932 Chronicle Tribune Marion, IN
Article from Chronicle Tribune, September 19, 1932

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Article Text

BANK'S RECEIVER NAMED TRUSTEE WABASH, Ind., Sept. 19.- H. Smith, receiver for the Farmer's State bank of Urbana, was today named trustee for Glen Richards, voluntary bankrupt, after hearing before A. F. Marsh. Richard's said his property amounted to $629 and claimed an exemption of $600 under the law. It was brought out during the hearing that Richards was a director of the Urbana bank and as such was a signer of three depository bonds, one for $25,000 for county money; one for $40,000 of township money and the third of $10,000 for school funds. He admitted signing the bonds but said he did not know what they were. "E. V. Sholty cashier, often gave us papers to sign, which we put our names on without really knowing what they were," Richards said, A. N. McCracken, attorney for the bank receiver, said affairs in the closed institution were such that he would probably request a grand jury investigation. Judgement was taken today in suit of Nondus Pretorius against directors of the Bank at Urbana for enforcement of the tockholders liability law. The court ordered a 100 per cent assessment against the stockholders. the same to be paid to A. H. Smith, receiver and he in turn is to pay it out to creditors in the bank. Judgment was ordered against John Zintsmaster, George Printy, Herman Wasem, Caroline Wasem. Adam and Horace Baer, Martha Speicher Earl Sholty, Frank and Howard Plummer, Olive Alger. John Miller, Virginia Speicher, Miriam Speicher, Naomi Speacher, Henry Vincent, Esta Schafer George Wolf, Carl Wasem, Roy Clark, Charles Scott, Floyd and Philip Beghtel, Merle Gochenour. Carrie Haupert, Esther Speicher, Edward Baker and Jacob Pretorius. The total judgments amounted to about $12,000. HOLD RITES TODAY Funeral services for Thomas Jefferson Mills, 67, who died Saturday at his home, south of Gas City, were to be held at 2:30 p. m. today at the home. Burial was to be in Gas City cemetery

2. March 3, 1933 The Indianapolis Star Indianapolis, IN
Article from The Indianapolis Star, March 3, 1933

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Article Text

$50,698 Judgment Taken Against Malott Estate [Special to The Indianapolis Star.] WABASH, Ind., March 2.-Judgment of $50,698.55 was taken in Circuit court today against the estate of John C. Malott, wealthy farmer and stockholder in the closed Farmers State Bank of Urbana. The action taken was in four different suits in each of which plaintiffs were creditors of the closed bank. Lagro township board of finance, awarded $35,000, had brought suit against Malott and other stockholders and directors asking $50,000. the greater portion of which represented township school funds Albert H. Smith, receiver, given judgment for $11,698.55. The Wabash county board of finance was awarded judgment of $2,800, representing county funds on deposit in the bank. Naomi Pretorius and other depositors were $800 against the estate and $400 against Mrs. Malott.

3. February 1, 1934 Leader-Tribune Marion, IN
Article from Leader-Tribune, February 1, 1934

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Article Text

CLAIMS FILED IN BANK CASE Receiver and 2 Attorneys Seek Total of $7,000 for Work in Receivership of Lagro Bank. Wabash. Ind. Jan. -Claims for $7,000 in the receivership of the Citizens' State Bank of Lagro were filed in circuit court here today by Ike Duffy, receiver for the bank, and D. F. Brooks and Walter Bent, local attorneys. Brooks and Bent filed a detailed report of their work for the receiver during the last three years. They ask $3,500 for their services. Duffy in his claim also asks $3,500, setting out that the first three months of the receivership he spent practically his whole time for It and has been called in at least once a day since for some action in the receivership. He says he has collected approximately $57,000 for the bank. Of this amount 000 was from bondsmen of T. W. Gillespie cashier, and $35,000 was from sale of notes on mortgages to the Wabash Loan & Trust Co., also now in receivership. Duffy was supposed to file an amended report tomorrow, but on request of his attorneys the time for filing the report was extended to Feb. 15. He was expected to resign as receiver tomorrow, but since the request of his attorneys was granted will not resign until Feb. 15. Depositors of the bank are expected to protest allowance of the $7,000 asked today. The court also allowed D. F. Brooks $800 on a $950 claim in the receivership of the Farmers' State Bank of Urbana and allowed Plummer and Plummer, attorneys, $500 on a $600 claim for services to the same bank.

4. December 3, 1934 Chronicle Tribune Marion, IN
Article from Chronicle Tribune, December 3, 1934

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Article Text

SEEKS ACTION BY RECEIVER WABASH, Ind., Dec. 3.-Naomi Keaffaber, depositor in the closed Farmers State Bank of Urbana, who last week lost suit in circuit court under which she sought to force Mary Bruner to return to the bank receiver notes amounting to $5,500, has filed petition in the receivership. asking that Smith, receiver, be ordered to sue for return the notes. In the original action the court held that the receiver, and not depositor in the bank, should institute the court action In the present petition Mrs. Keaffaber sets out that when the bank failed she had $1,300 on deposi in That short time prior to the failure E. Sholty, cashier, turned over to Mary Bruner, notes given the bank by various persons and amounting to $5,500 order to protect deposit of $5,509.81 Mrs. Bruner had in the bank It is charged that at the same time Sholty turned over notes to Eldevert Thompson of Lafontaine and Florence Freed, North Manchester to protect deposits they had in the bank. The sum of the notes turned over to these two persons and their deposits were not listed in the petition. The petitioner asks that the receiver ordered to name all three persons named as defendants in the suit to rcover and that they be ord-