6393. Washington Bank and Trust Company (Washington, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 15, 1930
Location
Washington, Indiana (38.659, -87.173)

Metadata

Model
gpt-5-mini
Short Digest
9ec0e8c5

Response Measures

None

Description

The articles consistently describe the Washington Bank and Trust Company as 'defunct' and discuss receivers, asset appraisals, lawsuits, and alleged defalcations. There is no description of a depositor run prior to suspension; the bank was closed and placed in receivership (failed). OCR minor issues corrected (e.g., receiver name Oren S. Hack). The approximate closure/receivership date is taken from internal article reference to Nov. 15, 1930 as the start of receiver payments.

Events (5)
1. November 15, 1930 Receivership
Newspaper Excerpt
Brandt C. Downey ... receiver of the defunct Washington Bank and Trust Company ... Oren S. Hack, receiver of the Washington bank, filed a report in circuit court Thursday ... Oren S. Hack, receiver for the defunct Washington Bank and Trust Company, filed ... petition for recovery of $18,987 paid in dividends ... between June, 1929, and September, 1930. (articles 1,6,9).
Source
newspapers
2. November 15, 1930 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Alleged defalcations and mismanagement revealed; assets greatly impaired (appraised value shrank sharply) leading to failure and suspension.
Newspaper Excerpt
From Nov. 15, 1930, to Jan. 1, this year, Downey received $750 for his services as receiver
Source
newspapers
3. February 25, 1932 Other
Newspaper Excerpt
Depositors and creditors of the defunct Washington Bank and Trust Company filed suit ... to collect liability against all the bank's stockholders.
Source
newspapers
4. February 28, 1933 Other
Newspaper Excerpt
I herewith tender my resignation as receiver of the assets of the Washington Bank and Trust Company, effective as of the close of business on Feb. 28, 1933. (Downey resignation filed Feb. 1933).
Source
newspapers
5. June 23, 1933 Other
Newspaper Excerpt
Dividend of 15 cents or more likely less on the dollar deposited in the defunct Washington Bank and Trust Company may be expected by creditors. Oren S. Hack, receiver ... filed a report ... assets ... present day value of $304,084.82.
Source
newspapers

Newspaper Articles (9)
1. February 25, 1932 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, February 25, 1932

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Article Text

# BANK BACKERS SUED Washington Depositors Act to Collect Liabilities. Depositors and creditors of the defunct Washington Bank and Trust Company filed suit in superior court one Wednesday to collect liability against all the bank's stockholders. The suit affects all stockholders of the defunct bank and the Washington Investors' Corporation, a subsidiary. Henry and Blanche Roberts, restaurants owners, are plaintiffs. Par value of the bank's stock was $200,000, the suit stated, of which amount, 1,878 shares at $100 par value are held by the investors' corporation. Jackiel W. Joseph, attorney, is receiver for the investors' corporation, and Brandt C. Downey is receiver for the bank.

2. January 18, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, January 18, 1933

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Article Text

# BANK LIABILITY FIGHT # IS OPENED IN COURT Washington Trust Arguments Aired in Suit to Compel Payment. Argument against enforcement of the state double-liability law against stockholders of the defunct Washington Bank and Trust Company opened in superior court one today when Judge John Kern conducted a hearing on a demurrer filed in a suit to compel payment. The suit, filed by Nettie and Myrtle Peak, said to represent 7,000 depositor-creditors of the bank, alleged that assets of the receivership will be $1,800,000 less than necessary to liquidate claims. According to argument advanced by Homer Elliott, attorney representing twenty-four stockholders named defendants in the suit, the statute can not be enforced legally because the stockholders in the bank, previous to its failure, had transferred their holdings to the Washington Investors Corporation, which controlled the majority of the bank's stock. The transfer was not made to avoid liability, Elliott said, but prevents enforcement of double liability assessments. Included among the defendants is Mrs. Isa Morris, administrator of the estate of the late J. Edward Morris, president of the bank. It is alleged that Mr. Morris held stock amounting to $58,200.

3. March 1, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, March 1, 1933

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Article Text

# DOWNEY OFFERS # RESIGNATION AS # BANK RECEIVER Third to Quit Since Probe of Closed Institutions Was Begun by Cox. Resignation of Brandt C. Downey, defunct Washington Bank and Trust Company receiver, was on file today with Circuit Judge Earl R. Cox, but has not been accepted. He is the third receiver to resign since Cox began an investigation of closed banks several weeks ago. Downey's action was not explained. He only requested that the court allow him to examine records of the 1st that he might file a final report. From Nov. 15, 1930, to Jan. 1, this year, Downey received $750 for his services as receiver, according to Cox. Earl R. Conder has been payed approximately the same amount, Cox said. Evidence at a hearing in circuit court recently revealed the insurance business of the defunct Washington bank had been sold to a company in which Downey personally is interested. The resignation follows: "I herewith tender my resignation as receiver of the assets of the Washington Bank and Trust Company, effective as of the close of business on Feb. 28, 1933." Cox ordered the resignation filed and ruled it would not be accepted until Downey compiles and files a final report with the court.

4. May 5, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 5, 1933

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Article Text

# DOWNEY FILES # WASHINGTON # BANK REPORT Cost of Receivership for 28 Months Revealed as $111,485. # ACCOUNTING IS DELAYED Ordered In by April 22 but Is Not Made Until Today. BRANDT C. DOWNEY, former receiver of the defunct Washington Bank and Trust Company, today filed his final report, showing operating expense of the receiver-ship totaled $111,485.40. THOMAS E, GARVIN, former municipal judge, assumes duties as receiver of Meyer-Kiser bank, following appointment by Circuit Judge Earl R. Cox. JUDGE COX continues probe of affairs of the State Savings and Trust Company, real estate commissions. HEARING CONTINUES on petition for receivership of Pilgrim Properties, Inc., real estate company organized by Meyer-Kiser bank officials.

5. May 18, 1933 The Indianapolis News Indianapolis, IN
Article from The Indianapolis News, May 18, 1933

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Article Text

STOCKHOLDER SOUGHT OF GARVIN Registrar Firm for MeyerKiser Affiliates Asks Surrender in Court. BANK CASE DEVELOPMENT Exceptions Taken to Report Filed by Rottger, Receivfor City Trust. Filing of an intervening petition the circuit court Thursday asking that the court direct Thomas Garreceiver the Meyer-Kiser Bank, to surrender the stock register all minutes of affiliated corporations one of the in developments in the bank receiverin that court. petition asked that these books turned over to the Kiser, Cohn Shumaker Corporation, which has been formed serve registrar fiscal agent for each of the thirty-one affiliates. Other developments were: Action of Judge Cox, of that court, in ordering an audit made books of the bank. Such action been requested petition filed Garvin. William M. Madden and Karl Hamilton were named to conthe audit. Announcement that hearing on suit for appointment of receiver for the Pilgrims Properties, Inc., one of the affiliates the Bank, had been postponed indefinitely. Hearing Scheduled Friday. Hearing will held by Judge Cox Friday afternoon petition filed by Oren Hack, receiver for the Washington Bank and Trust Company, for instructions whether he should collect fidelity bonds held by the former bank officials and ployes. petition said report by the state indicated the receiver has cause for action the bonds that the bank funds not been handled properly. alleged that the former receiver had made no attempt collect on the bonds and that question exists whether the bonding companies would be liable since no notice served them. Audit Detailed. The audit Judge Cox records the Meyer-Kiser Bank will consist complete, detailed examination transactions before closed and during the period in which its business was the hands of liquidating agents, Judge Cox depositors, headed Charles D. Babcock, quested that the detailed audit be made, Judge Cox said. Commenting the action former officers of the bank in forming the new Kiser, Cohn take over the business of realty and other types of corporations affiliated with the bank, Judge Cox said that appeared such action might an attempt to remove of iness which the bank formerly had from the of the receiver and clear legality such would have to be shown before the court would permit The new corporation will not ceive action from the court its petition to have books of affiliated corporations, now held by the bank receiver, turned over until full investigation has Exceptions the final report the City Trust Company, were out Continued on Page Part

6. June 23, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 23, 1933

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Article Text

# BANK MAY PAY # 15 PER CENT Little Will Be Left for Washington Trust Co. Depositors. Dividend of 15 cents or more likely less on the dollar deposted in the defunct Washington Bank and Trust Company may be expected by creditors, according to a new appraisal of assets. Oren S. Hack, receiver of the Washington bank, filed a report in circuit court Thursday, revealing that assets of former book value of $1,937,529.85 have shrunk to a present day value of $304,084.82, a decrease of 85 per cent. From the remaining assets, the expenses of receivership administration must be paid, Hack pointed out, which automatically indicates that the maximum dividend to depositors will be less than 15 cents. Depositors' liability of the bank is $1,213,289.47, according to Hack's report. The receiver requested the new appraisal more than six weeks ago, in a petition to Circuit Judge Earl R. Cox, with the declaration that the book value carried at the time the bank closed was not a true indication of receivership assets. Appraisers appointed by the court were Kenneth Woolling and Rollin W. Spiegel for intangibles, and Harry Nicoli and Claude Richie for real estate. Accounts receivable, formerly carried at $559,053.38, show the greatest drop, with a new appraised value of $15,742.88.

7. June 24, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 24, 1933

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Article Text

# BANK BOND SUIT # SENT TO COURT Action on Officers' Surety Shifted From Circuit Tribunal. Suit filed in circuit court to collect $200,000 from the Amsterdam Casualty Company on the bond covering officers of the defunct Washington Bank and Trust Company has been transferred to federal court. Order for the transfer was issued by Circuit Judge Earl R. Cox Friday on petition of attorneys for the bonding companies, who cited that the defendant is incorporated out of the state. The suit is one of four, seeking $625,000, filed by Oren S. Hack, Washington bank receiver, after alleged defalcations totaling $1,750,000 had been revealed. Disclosure of the charges against the officials was made by Hack from a confidential report made by the accounting firm of Spradling, Carter & Jordan, at request of Brandt C. Downey, former receiver. Although Downey knew of the report contents for more than two years, no action was taken to collect on the bonds until Hack petitioned for instructions.

8. June 24, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 24, 1933

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Article Text

BANK BOND SUIT COURT Action on Officers' Surety Shifted From Circuit Tribunal. Suit filed in circuit court to collect $200,000 from the Amsterdam the bond ering officers of the defunct Washington Bank and Trust Company has been transferred to federal court. Order for the transfer issued by Circuit Judge Earl Cox Fripetition for the bonding cited that the incorporated out of the The one of four, seeking filed Oren Hack, Washington bank receiver. after alleged defalcations totaling 000 had been revealed. Disclosure the against the officials made by Hack Carrequest Brandt Downey, former Although Downey knew the two years, no action was taken lect the bonds Hack petitioned for instructions.

9. September 5, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, September 5, 1933

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Article Text

RECOVERY OF BANK DIVIDENDS SOUGHT Washington Receiver Files for $18,987. With reopening of county courts todays, the Indianapolis defunct bank situation, which has been dormant for the last two months, again occupied the stage. In circuit court, where several sensational developments were produced in probes by Judge Earl R. Cox, the auditor's report of the receivership of Curtis Rottger, former receiver of the City Trust Company, was filed. Cox accepted the report, compiled by Howard W. Painter, auditor, but made no comment. Oren S. Hack, receiver for the defunct Washington Bank and Trust Company, filed, through his attorney, Joseph Collier, a petition for recovery of $18,987 paid in dividends to the Washington Investors' Corporation. The petition charged that the dividends had been paid illegally between June, 1929, and September, 1930. The petition also pointed out that many directors of the defunct bank also are officers of the investors group, of which Jackiel Joseph, attorney, is receiver.