6390. Peoples National Bank (Washington, IN)

Bank Information

Episode Type
Run Only
Bank Type
national
Bank ID
3842
Charter Number
3842
Start Date
July 1, 1901*
Location
Washington, Indiana (38.659, -87.173)

Metadata

Model
gpt-5-mini
Short Digest
340eef58

Response Measures

Accommodated withdrawals, Public signal of financial health, Capital injected

Description

Articles (Sep–Oct 1901) describe a large shortage/embezzlement by cashier R. C. Davis that produced two runs earlier (around July 1901). Directors, Davis, his bondsmen and stockholders made restitution and issued a statement that restored confidence. There is no mention of a suspension or receivership — bank remained open.

Events (2)

1. February 2, 1888 Chartered
Source
historical_nic
2. July 1, 1901* Run
Cause
Bank Specific Adverse Info
Cause Details
Embezzlement/large shortage discovered in cashier R. C. Davis's accounts (shortages reported $50,000 to $70,000), leading depositors to withdraw.
Measures
Reorganization of bank staff; restitutions made by ex-cashier R. C. Davis, his bondsmen, transfer of Davis family stock and real estate, contributions by stockholders; public statement issued to reassure depositors.
Newspaper Excerpt
a shortage of over $50,000 was discovered and two runs were made on the bank.
Source
newspapers

Newspaper Articles (2)

Article from The Indianapolis Journal, September 29, 1901

Click image to open full size in new tab

Article Text

An Ex-Cashier of a Bank Brings Snit Against Gamblers to Recover $30,000 Lost in Gaming. HERSELF STARVED WIFE HUSBAND A CONVICT, SHE REFUSED TO EAT AT POOR FARM. Yorktown Boy, Deserter from Army, Broke Prison Twice, and Eludes Efforts at His Capture. Special to the Indianapolis Journal. WASHINGTON, Ind., Sept. 28.-The development that Richard C. Davis, exrashier of the People's National Bank, had embezzled $5,000 belonging to Dr. N. J. Goshorn, has been made public by the fact that Goshorn holds a worthless order on a $rust company for that amount. Davis has Attempted to settle the matter, but has failed and suit will be brought. The case recalls the summary removal of Davis as *ashier two months ago, after a shortage of over $50,000 was discovered and two runs were made on the bank. Davis and his family made good the known shortage by furning over to the directors their bank stock, being a controlling interest, and all of Davis's real estate. Deeds for the latter were made to E. L. Hatfield, director, and the records show the consideration was $1. The transfer included Davis's home, one of the finest in the city. Many instances are being found where Davis entered credits on depositors' books that were not passed to the records of the bank, and several cases of falsifying the bank accounts have been discovered. An Instance reported is that of the Capital National Bank, of Indianapolis. The bank Records showed a credit of over $7,000, when st was found the account was nearly $15,400 in the Capital's favor. An unexpected Visit of Vice President Packard, of the Capital National, revealed the true condi"ion, and this hastened Davis's removal. Davis tried to hide this account by recallEng a special report to the Capital National that had been made by President Burke, of the People's, and mailed with a special delivery stamp. Davis recovered the letter from the postoffice and when it failed to meach its destination a telephonic interview Zed to discovery of the falsification. Davis claims to have lost $75,000 "shooting &raps." He has employed Tharp & Downey and Ogdon & Inman to sue three local &amblers for nearly $30,000. He caught sevwral friends for large sums, and is a bankyupt, whereas he was supposed to be worth $100,000. I The reorganization of the working force st the People's National Bank has completely restored confidence, and it is now believed to be greatly strengthened by the élimination of the ex-cashier. Davis was one of the organizers of the People's National, and came to this city from OwenHown, Ky., about twenty years ago.


Article from Evening Times-Republican, October 2, 1901

Click image to open full size in new tab

Article Text

BANK SHORT $70,000 Big Deficit In an Indiana Bank Made Good by Cashier's Bondsmen. The Shortage Said to Have Been $70,000--Explanation by the Directors. Property of Bondsmen Held to Protect Patrons of the Institution. Washington, Ind., Oct. 2.-A shortage of over $70,000 in the accounts of the People's National Bank, it is declared in a statement made public by the directors of that institution, was discovered within the last few weeks, and was made good by former Cashier R. C. Davis, his bondsmen and stockholders of the bank. It is declared that the restitutions give the bank a surplus of $4,298, that the institution is solvent, and that no further trouble is expected. Rumors concerning the shortage have been current for some time, and the bank made preparations for a hard run, but the statement issued yesterday brought business men and heavy depositors to the rescue and prevented any embarrassment. Davis resigned his place with the bank recently, ostensibly to give his time to private business. A few days ago he said that he had lost $75,000 in gambling and threatened to bring suit against four gamblers to recover part of the money. According to the statement of the directors there Is a shartage of $31,200 in the draft account, $20,746.22 in the note account and discrepancies amounting to $20,000 on the ledger. To reimburse the bank the entire stock held by the Davis family, valued at over $22,000, was transferred, together with real estate worth $31,000. Davis' bondsmen made up $12,414, and nine stockholders raised as a personal contribution $10,000 to carry the bank thru the trouble. The disclosures came about thru a demand made upon the bank by Dr. Noah Goshorn of Eldorado. Ill., for $5,000 which he deposited and which was supposed to have been placed with the Columbia Trust Company of Louisville. Goshorn threatens to begin bankruptcy proceedings against Davis unless the bank gettles with him. The effect of this would be to take from the bank all the property transferred by Davis to straighten his accounts.