Kokomo Trust Company (Kokomo, IN)

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RUN ON BANK FORCES CLOSE TODAY

Farmers Trust and Savings Institution in Charge of State Officials.

Kokomo. Ind., Jan. 29 Seaward, president the Farmers Trust and Savings Bank of Kokomo, announced tonight that because of unexpected heavy withdrawals of cash, the institution will not open its doors tomorrow. Thomas Barr and deputies of the state banking placed charge bank's and arrange to liquidate the to depositors soon as the books have been examined. Deposits Near

Farmers and small merchants princomprise the clinetele said have total posits nearly Mr. Seward issued following officers and directors the Farmers Trust and Bank regret announce that owing heavy unexpected deposits have depleted the cash they find advisable close upon state banking take charge. They take this step in order to treat customers fairly and partially and with the desire not impare the bank's reserve further

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Fortunate City from Embarrassment In

Failure of the Farmers Trust Savings Bank its open doors Thursday morning served only temporary the of whose funds deposit that institution. Policemen, firemen and others expected receive their salary checks Thursday ment of the bank's closing which tied all funds the But the was short duration.

By fortunate circumstance. the city had already made arrangements negotiate temporary loan of by the issuance time loan, which in the usual custom this time the year money to meet the city's penses until tax money became had already been proved by the city council and had been publicly advertised. as quired and the time for the sale of the warrants set at o'clock Thursday morning. Two Blds on Loan.

Two bids received from banks for the purchase the warrants, being awarded to Citizens National Bank $10. was then nounced by city officials that the money would be placed on deposit that bank and the salary checks issued Thursday usual. In the Farmers Trust Savings bank the city had Of this about $38,000 contained the fund, about $12,000 the line fund and the rest among other funds the city. amount on deposit regarded amply protected bonds and which signed by Simmons, Learner, Danner, liams. Conrad. Dietzen. Geo. Roemer, and W. Drink. water. About $3,500 in funds collected by the bailiff the city deposit the Farmers Trust Savings bank and also said to be covered personal

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LIQUIDATE

Unusual Withdrawals Given As Cause of Action Taken By Bank Officers

THOMAS BARR IN CHARGE

Early Liquidation Promised For Benefit of Depositors: Assurance Given

Depletion of its cash reserve by unusual the of the closing of Farmers Trust bank this city Wednesday evening. Its affairs have been placed the hands of Thomas Barr, chief and other members the department of banking for liquidation.

With announcement of its request officers local came assurthat its affairs would found essentially sound. Indications that would the case were found statements both officers local bank. the state banking and Kokomo Clearing Doubted.

Mr. Barr stated that on Dec. the state department had examined the affairs the institution thoroughly and had found nothing indicate conduct irregularities. He said that and Morris Stultz of the state banking department would examine assets immediately would keep the public informed times to the conditions found shall be greatly disappointed any said. Statements made by the banks Kokomo. of Dec. 31, 1929, vealed them to be unusually good condition this period of the That the other banks and their officers regretful the closing of the institution and willing to every way expressed by ments and statement from the Clearing House Association. statement issued by the The komo Clearing House follows: Co-Operation Promised regret that the Trust and Savings bank found to close doors. necessary and associates Clearing House feel that bank's af fair fairs in liquidation will have combined efforts looking successful and funds Its many payment depositors. the the guard safely will have our loyal support and taken the That the the officers of the bank the protection all that its assets would and dated quickly as possible that Indicated purpose ments made by and other officials of president, also and 000 all Three other directors of the bank had been reached the time

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FARMERS BANK

Impressive Scene as Hundreds Depositors Visit Suspended Institution.

TALK OF REORGANIZING

Officials Hopeful Way May Be Found to Bring About Such Action.

Orderly, yet impressive, was the scene the Farmers Trust Savings bank Friday. The spacious lobby of the institution was crowdpractically throughout the iness hours the day with positors who called to leave pass books verification. visit their safe-deposit boxes confer with officials or other attaches of the institution. By late in the afternoon number of callers had reached hundred. indicating eral movement upon the part depositors direct inquiry what to expect in the liquidation of the bank's gations. Most of the depositors were taking. the smiling grimly the predicamont which the bank's closing had left them hopefully. There did not have their feelings entirely under control, who wept were bit their versations with the bank's There angry expressions, however, and pleasant Audit Progressing

In the meantime, the state banking department going forward with the work auditing the bank's This work proceeding under supervision Morris representative the deputy state bank who charge the hank, been called to Indianapolis for day. Mr. Stutts said the state banking was hurrying the work over books much as possible, to the end that depositors might know exactly how their accounts stood time the bank's closing. marked too, that holders deposit boxes were being access needed papers the boxes contained ranging for new banking tions. While Mr said the partment wished be dating possible the bank's depositors, he remarked would tend confusion and hasten the work of making the praisal of the bank's assets would, after the business bringing them withdraw, instead lingering in the lobby and engagin conferences there. Favor Reorganizing Officials bank were talkmore Friday about the poselbility of reorganizing and ing the than they They said they were much undertake such movement. asserted that many of the bank's depositors had them with assurances they would stay with them if they would reorgan-

Another interesting report given by the bank's official circle that offers assistance event reorganization should attempted had been from some three four out-ofsources. One of from and one from county adjoining county. Officials of the bank. while they were disposed to favorable consideration the proposition, said that nothing the way of work could be done until the banking completed its of the resources. That reveal much money would the institution on its again. Mr. Stutts reiterated Friday the statement made that the state banking would afford full opportunthe shareholders ize the they really desire enter such He would not. of hazard any opinion to the obstacles such action would Depends on Appraisal present that whether the praisal which being made. hoped be pleted by the middle soon the appraisal

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Estimate Given After Closing of Kokomo Institution. Ru Times Special KOKOMO, Ind., Feb. 18.-Losses due to closing recently of the Farmers Trust and Savings bank here will total about $500,000, according to Maurice Stults, examiner. A hearing for appointment of a temporary receiver will be held Friday in Howard circut court before Judge Joseph Cripe on petition of Luther F. Symons, state bank examiner. It is believed by Stults the bank will pay about 75 cents on the dollar.

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Fredrick, Parson Named Kokomo Bank Receivers

Ind. Feb. Judge Joseph Cripe of the Howard Circuit court today and Walter for the Farmers Trust and Savings here. which order banking ment. Fredrick Parson filed joint bond the $100,000 and assets of the bank have been turned them by representatives of the partment.

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RECEIVERS OF FARMERS BANK SUGGEST THESE BE TURNED IN QUICKLY.

Announcement was made Monday John Fredrick and WaltParson, receivers the Farmers Trust and Savings bank. that several passbooks possession of depositors have handed be checked and balanced. The receivers suggest depositors having passbooks that have not been ballanced since the bank was closed make point to turn them in immediately. The are collecting notes due the bank rapidly possible. This true, however, only cases where the Individual owing note not depositor in the bank. The receivers balancing against accounts this time, they leaving cases used proposed set-up for the organization cases of that kind, they simply ask the interested wait little while. Receiver Parson spending all his time at the bank, handling talls the receivership they arise. Fredrick also the the time, but being mainly the movement organize bank take the place of the closed Institution. have been made have Fredrick attend the stockholders meeting at the hall Monday evening and prethe facts to what the prospects are for the bank that would the valuable assets the Farmers' and join in that plan would to stockholders depositors of the Farmers' alike.

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NEW

PLEDGES TO THAT FARMERS' meeting Monday at city stockholders the Farmers Trust and Savings bank, which suspended little for the organize new bank was pledged. fifty of the shareholders, report, bound any legal sessment the receivership might impose to each the slock he owned in the old bank, toward creation of fund used in institution. In all there approximately the Farmers Trust and bank. Of these do not live county. This explains their Some the shareholders reside here were unable to tend. The meeting got under way o'clock. Simmons, who president of the board of the Farmers', presided, and Elmer M. Matthews, trust officer, served secretary. After considerable time had been spent discussing plan the for bank, with Fredrick, the receivers Farmers'. toward pledging support for the latter clearly that the plan the bank, not the

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PLEDGES NEW BANK

Scores of Depositors Closed Institution Put Names on Dotted

MOVEMENT GOING WELL

Depositors' Committee Reports Fine Progress on New Bank Scheme.

An interesting and highly aging report progress the to establish bank on the the tersection of Main and Sycamore streets, made Thursday by the representing the depositors the Farmers Trust and Savings bank, which suspended operations six weeks and is now In ago the hands of receivers. The depositors committee has been engaged obtaining, from persons firms each having $500 deposit the Trust and Savings bank when failed, signed binding In would pledged ultimately to depay full, leave their money deposit with such new bank for least one from its year opening. Handed List of The committee says was handlist approximately 400 positors, each whom had deposit with the Farmers' bank when ceased operations. These deposits totaling Drafting sixteen helpers, the committee to work of the depositors included the list mentioned. Thursday forenoon the committee reported that signed total of 274 depositors, representing total of $626,000. There remained approximately depositors on the who not yet been seen, being temporarily from away Kokomo while others residents of other cities, of some them other states. These will all however, and believed that practically will The committee further reported that in making canvass among depositors each whom in the closed bank, encountered many each $500 tied up; who only willingness, but desire, agreement similar to the that one was being circulated.

Comply With Wish. comply with the wishes depositors in this class, the committee having blank form of ment prepared for submission them. The committee will not able to go out and hunt them but with the receivers banking room open every next from twelve o'clock, noon, nine the which period members the depositors' will to explain the plan to depositors be and accept signatures of those wish to sign. believed that the of this will result dollars more being pledged be left on deposit new bank for definite period after the institution ed. tically According to the committee, practhe plan making the among depositors each had more the bank when Sentiment, according report, practically unit extending such pledge bank binding Itself ultimately of the bank cents the dollar. that timent of like kind be found among most of the who had than $500 in the bank had business. that the spirit co-operation already manifested practically success the movement bank Contents To that public may something details the agreement that is being ed the the depositors, the ollowing paragraph covering most of the points quoted from one of the forms: the undersigned, depositor the Farmers Savings the time of closing the

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TAKEN CUSTODY ALLEGED

Charges Him With Loaning to Himself Last on Day Bank Was in Bond in Amount of to Insure Appearance When That Further May Be Says He Can Explain All His Transactions Satisfactorily.

Charles C. Price, councilman for the Third ward, residing at 308 West Taylor street, cashier of the Farmers Trust and Savings bank, which suspended operations six weeks was arrested ago, by Sheriff Clinton Small and Chief of Police Clinton Jackson, at Saturday forenoon, at the Johnson & Weddel store, Union and Superior streets, on charge unlawfully extracting $6.900 from the bank, on or about January 1930, which was the last day the institution was and running. Specifically, the charge against Price is that of loaning from the bank to one of its officers, without the written consent of the board of directors. effect, the charge is that Price loaned to himself from the bank's money $6,900, on or about the date mentioned, without obtaining consent of the directors and without having such consent indorsed on the back of the note evidencing the loan. About one o'clock Price was able to supply bond in the amount of $10,000, as fixed by Judge Joseph Cripe. The bond was signed by Price's wife. Minnie Price, who is said to own property in her own name in both Howard and Cass county, and by George B. Jones, member of the Kokomo board of public works, who served with Price in the last four years, and by Fred B. Stradling, superintendent of the Kokomo Water Works company. As soon as the bond was given, Price left the sheriff's office for his home.

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BANK'S CAREER MAY CLOSE IN VENUE CHANGE Shift of Suit to Frankfort Checks Plan to Reorganize at Kokomo. By Times Special KOKOMO Ind., March 22.-Doubt prevails that an effort to reopen the closed Farmers Trust and Savings bank here will be continued in view of the fact that receivership proceedings have been taken to the Clinton circuit court at Frankfort on a change of venue. It is pointed out that should Judge Brenton Devol of Frankfort rule that a permanent receiver be appointed. thus doing away with the present temporary arrangement, the only course open would be liquidation. thus ending the bank's career. It is considered likely Judge Devol will favor the permanent plan, it being believed that court in a county other than the one in which the bank is located would not care to be burdened with the responsibilities connected with the temporary arrangement. More than-three-fourths of stockholders at a meeting held recently signed an agreement to contribute toward a fund for reorganizing the bank, between $700,000 and $800,000 being offered. However, this will have no effect under a permanent receivership. The application for a change of venue was filed on behalf of Bern Tate, a depositor of $240. He alleged that the state banking department, on whose orders the bank was closed, "exercises an undue influence over the citizens of Howard county," and that an odium attaches to the defendant's cause in Howard county," the bank being the defendant.

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New Kokomo Bank.

A new bank for Kokomo, to succeed the Farmers Trust and Savings bank, which suspended business the middle of January, probably to be under federal reserve supervision. This was announced last night.

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LETTERS TERMS

Definite Statement as to How Payments Will Be Made by New Bank.

PROGRESS IS BEING MADE

Everything Possible Being Done to Expedite Opening of New Institution.

As means of expediting the ening of the bank that being organized Kokomo, all persons, deposits $200 more with the Farmers Trust Savings bank, are being asked to immediately the receivers that Institution and sign contracts stinulating how such denosits shall be handled by the new bank. Letters to hundreds of the denositors, the terms under they will receive their in full, placed the mails Tuesday Like notices others are being placed in the mails fast they gotten out. of deposits of $200 more being left with the new bank, the latter agrees to pay three months from the date of its opening, months. in nine months and in with interest the rate of per cent. This plan, it is understood, is acceptable to-practically all depositors and believed that agreements embodying will signed up promptly. All depositors understand that the sooner such preliminaries taken care of the sooner the new bank will get into operation. Self-interest should deter any depositor from needlessly delaying signing, is contended. Walter E. Parson and John E. Fredrick, receivers of the Trust Savings bank, assert that all but very few of the that have paid their 100 per cent stock and that the few who have not yet paid are arranging to pay possible, wishing delay longer than absolutely the opening of the new bank. The speak the outlook, that thing connected with the bank movement going along satisfactorily. No one prepared to say just when the bank be opened, but with good made in the matter of obtaining depositors' agreements and collecting stock the opening date should not be far away.

Returned to Prison. Michigan City, Ind., May 28 (AP) Hayes, 57, sentenced from county two years serve one to ten years for vehicle taking and released from the state prison here last Feb. was turned the penitentiary today for parole violation.