gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
2c84ca031c618075
Response Measures
None
Description
Closed by state bank examiners and placed in receivership; multiple indictments and prosecutions followed.
Events (2)
1.September 14, 1927Suspension
Cause
Government Action
Cause Details
Closed by State bank examiners for insolvency/unsafe condition (state examination led to closure)
Newspaper Excerpt
the bank which was closed recently by the State banking
Source
newspapers
2.October 1, 1927Receivership
Newspaper Excerpt
passing over of the books of the bank to the co-receivers, recently appointed.
Source
newspapers
Newspaper Articles (22)
1.October 1, 1927The Indianapolis TimesIndianapolis, IN
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One Per Cent "Commission" on All Indiana Deposits Made With Trust Company, Now Bankrupt, Is Revealed. "PLUM" TOTAL SHOWN TO BE $9,000 Amount Will Be Collected From Him, Say Officials; Defunct Institution Had Strong Klan Leanings. BY FRANK J. PRINCE KOKOMO, Ind., Oct. 1.-Ora J. Davies, former State Treasurer of Indiana, received 1 per cent on all State of Indiana funds deposited in the now bankrupt American Trust Company, it is revealed by the passing over of the books of the bank to the co-receivers, recently appointed. The practice started while Davies was a State official and continued after he left office. This is admitted by Thomas D. Barr, deputy State bank examiner, who says that his department discovered this practice and stopped it. It is asserted by former City Judge Fred J. Byers, now city attorney and attorney for four of the directors of the defunct financial institution, who states that his clients objected to the practice about eighteen months ago and stopped it then. From other sources it was learned that the practice continued until Jan. 1, 1927.
2.October 11, 1927The Indianapolis TimesIndianapolis, IN
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BELIEVE NOTES GOOD Receivers of Bank at Kokomo Hope $100,000 May Be Realized. By Times Special KOKOMO, Ind., Oct. 11.-Receivers for the American Trust Company, the bank which was closed recently by the State banking
3.December 5, 1927The Indianapolis TimesIndianapolis, IN
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LOCAL MEN TO TESTIFY Two Called in Probe of Closed Kokomo Bank's Affairs. Bu Times Special KOKOMO, Ind., Dec. 5.-Witnesses called to appear this week before the grand jury here investigating affairs of the closed American Trust Company Bank, includes: Clyde R. Humston, of the City Trust Company, Indianapolis; Boyd Gurley, editor of the Indianapolis Times; T. F. Barr and T. R. Inwood, deputy State bank examiners; Grover Bishop and J. C. Herron, receivers of the bank,
4.December 17, 1927The Indianapolis TimesIndianapolis, IN
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Ex-State Treasurer Asked to Pay Back Commissions on Big Deposits. Suit to recover $11,500 from former State Treasurer Ora J. Davies, said to have been paid him by the now defunct American Trust Company, Kokomo, for keeping large amounts of State funds in that institution, has been filed in Howard Circuit court. Joseph C. Herron and Grover Bishop, receivers for bank, closed by the State bank examiners Sept. 14, filed the complaint. Davies served two terms as State treasurer, from 1920-1924 He is considered a lieutenant of Senator James E. Watson's Republican faction and managed the campaign of Senator Arthur R. Robinson last year. Obtained Commission The fact that he had received 1 per cent commission for the State deposits first was made public by The Indianapolis Times. A Times representative was called before the Howard County grand jury. The suit charged that Davies colelcted $6.500 from the bank for an average of $165,000 of State money deposited in the bank while he was State treasurer. Davies did not account for the $6,500 as treasurer of State and appropriated the sum to his own use, the suit alleged. About the time he retired from office Davies, with the consent and on the order of the State finance board, increased the amount of State funds on deposit with the American Trust Company to $225,000, it is charged. Ignores Conference Request From the last of January, 1925, until March, 1927, the bank paid Davies 1 per cent a year on that amount on his representation that he would cause the $225,000 deposit to be withdrawn, if he were not paid, the suit alleged. A total of $5,000.00, $187.50 a month, was unlawfully paid Davies after he left the treasurer's office. the receivers charged. The receivers declare they wrote to Davies several weeks ago and informed him of their claim and that they would fine suit, but Davies has ignored their requests for a conference.
5.December 31, 1927Palladium-ItemRichmond, IN
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DAVIES' RESIGNATION AS BANK RECEIVER
Dec. resignation Davies, Kokomo, as for the First National bank of Sheridan and the First National bank, of Noblesville, accepted today by Joseph McIntosh, comptroller currency. Davies, former state treasurer recently indicated by the Howard county, Indiana, grand jury in connection with affairs of the American Trust company, of Kokomo. The that Davies, while treasurer, received money from American Trust company. The trust company was closed months order of the bank examiner. lengthy investigation by the Howard county grand jury resulted indictments against Davies; Luther W. Symons, state banking commissioner; Thomas Barr, deputy commissioner; Frank Owens, president the institution time it was closed, and several others.
6.January 2, 1928The Indianapolis TimesIndianapolis, IN
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(Bluffton Banner) (Democratic) Luther Symons and Thomas D. Barr, connected with the State banking department, have been indicted by a Howard County grand jury at Kokomo for failing to close a bank when it was known to be insolvent. The bank was the American Trust Company and the claim made by the grand jury is that bank examiner reported last March that the bank was insolvent, but that his chiefs did nothing toward closing the institution nor in apprising the directors of the bank. The outcome of this matter will be of interest in Wells County and a number of other places where banks have failed. Surely, there is something wrong with the system of regulating banks. The Indiana commission has come in for much criticism of late months and many wonder just what protection comes from this commission. They make a lot of noise after the bank is closed, but seldom have they been instrumental in the closing. When a bank runs completely out of funds, as a matter of course the doors are closed. That seems to be the rule in Indiana. Former State Treasurer Ora J. Davies has been sued by the receivers of the American Trust Company at Kokomo for illegal fees collected. Just another case of the McCray administration using a bank to keep the good Governor going. Davies was accused of irregularities with the city funds of Kokomo and had to make restitution before he was elected State treasurer, but the people seemed not to care. He was elected anyway.
7.January 4, 1928Palladium-ItemRichmond, IN
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STEPHENSON ASKED ABOUT BANK AFFAIRS AT KOKOMO
MICHIGAN CITY, Ind., State prison officials today awaited the arrival the Howard county prosecutor and one of the receivers the American Trust company, Kokomo, life of checks paid him from the bank October, 1922 1923. grand dragon Klux Klan the time and Trust time was the depository klan money in the Kokomo district. Stephenson, has been much in limelight as result of his political the be every opportunity talk to the bank receivers, Homer R. Howard county and Grover Bishop. one the bank's receivers, Kokomo presumably for Michigan City to They understood have learned that Stephenson "had something to tell them" regarding the checks ceived. checks in amount from $2,400, many of them only few days apart.
8.January 5, 1928The Indianapolis TimesIndianapolis, IN
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"MOST AMAZING STORY,' PLEDGE OF STEPHENSON Life Prisoner Promises Expose About Closed Bank at Kokomo. By Times Special KOKOMO, Ind., Jan. 5.-A "most amazing story of intrigue" will be told by D. C. Stephenson regarding the affairs of the closed American Trust Company Bank here, providing he is given an opportunity to appear before the Howard County grand jury. Stephenson, former head of the Ku-Klux Klan in Indiana, now serving a life term in the State prison for the murder of Miss Madge Oberholtzer, Indianapolis, promised the expose during a conference at the prison with Homer R. Miller, Howard County prosecutor, and Grover Bishop, receiver of the bank. The prisoner picked out seven or eight checks of a number cashed by the bank which he said were for "graft." Stephenson told Miller and Bishop that his story would be the most amazing one the prosecutor had ever listened to. Miller announced after the conference that he would investigate on the data Stephenson provided and, if found true, would call the county grand jury and have Stephenson appear as a witness.
9.January 13, 1928Tri-County BannerKnightstown, IN
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The KNIGHTSTOWN BANNER
Entered at the Postoffice in Knightstown,
W. K. DEEM and R. D. SHIPMAN Editors and Publishers
Soiled feet usually accompany those who play at politics.
That bank suspension up at Ko komo is taking on a bad smell
Walter S. Chambers, editor of The New Castle Daily Times, is in Wash ington, D. C., on a sightseeing trip. He joined a party of friends at Indianapolis.
With machine gun battles taking place every day in the city of Chicago why the necessity of sending U. S. troops to quiet the turbulent country of Nicaragua
Republican district committeemen of Indiana met yesterday (Thursday) at Indianapolis to elect a state chair man in place of Clyde Walb, who handed in his resignation on Tuesday.
D. C. Stephenson is to have another vacation from the state penitentiary. He is coming down to Kokomo to tell the Howard county grand jury what caused the American Trust Company to "bust." Stephenson says his tes timony will involve bankers in all parts of Indiana Opinion prevails there is some rottenness hidden away in the vaults of the Kokomo, bank
10.January 13, 1928Tri-County BannerKnightstown, IN
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Symons And Barr Willing To Aid Willingness to assist in any legitimate investigation into circumstances leading to the failure of the American Trust Company, of Kokomo, which was closed recently, was expressed on Tuesday in a statement given out by Thomas D. Barr, deputy state bank commissioner. Barr and Luther S. Symons, state bank commissioner, are under indictment by the Howard county grand jury on charges of neglecting to perform their official duties when they first learned of the precarious condition of the bank. Barr asserted that in the forthcoming trial he will ask no mercy or favors and that the same statement would apply to Symons. Barr said that he would not hide behind any constitutional privileges to hinder any légitimate investigation which might be made of the bank's failure and that a
There is, perhaps, not yet a full realization by farm women that failure to play means that work becomes a drudgery, and that failure to rest means that work becomes forced and of poor quality. No one needs a vacation away from home more than does housekeeper.
Button's Sale Barn Jan. 14 Hector Kirk Jan. Button's Sale Barn Jan. 21 Frank Shaw Jan 24 Trowbridge & Troyer Jan. John Knecht Jan. 26 Button's Sale Barn Jan. 28 Will Brooks Feb. Button's Sale Barn Feb Fred Masters Feb. Claude Sears Feb. Glen Kirkham Feb. 9 Luther Lankston Feb. 10 Button's Sale Barn Feb. Cameron & Oger Feb. Will Horton Feb. 14 Binford & Lukens Feb. 15 Redick & Ball Feb. 16 Mrs. Lewis Cranfill Feb. 17 Button's Sale Barn Feb. Jonathan Curry Feb. Chester Kellum Feb. 21 Binford & Lewis Feb. Jesse Williamson Feb. Chas, Manche Feb. 24 Button's Sale Barn Feb. 25 Heaton & Midkiff Feb. 28
11.January 19, 1928The Noblesville LedgerNoblesville, IN
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WRECEIVER
Hartman, Columbus, Ohio, New Appointee
Hartman, Columbus, has arrived and taken charge of the First National Bank receiver, having pointed by controller of curWashington. He came rency here from Acherman. Miss., where was stationed for some time similar He connected with federal department of banking and has the years. He many takes the place made vacant the resignation Ora Davies, komo, did not wish to fill the position following indictment the Howard county grand jury out of the failure the growing American Trust Company, of that After his resignation the controller the currency here take charge of the local bank, but this appointment only temporary. Mr. Hartman has planned here, he until affairs of the bank are settled.
12.February 16, 1928Evansville PressEvansville, IN
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THURSDAY, FEBRUARY 16, 1928. WOULD PAROLE BANK CASHIER
Petition to Free Official If He'll Return Money
By United KoKoMo, Ind., Feb. 16.-A petition was circulated here today asking parole for Frank S. Owens, cashier of the defunct American Trust company of this city, on condition that he return $23,000 to the bank's receivers and turn state's evidence against others indicted in connection with the bank's failure Prosecutor Homer R. Miller op poses the movement on the ground that Owens should be forced to return $38,000 due for assessments in addition to other monies allegedly owed the Eleven persons are under indict ment in connection with the failure of the company, which was depository for large amounts of state funds during the Ku Klux Klan regime in These include Luther Symons, state bank commissioner: Thomas Barr. assistant commissioner: Ora Davies, state treasurer at the time state funds were deposited there, and who is said to have received one per cent on all such monies: W. H. Arnold. former president of the bank, and Owens, his son inlaw and president of the bank at the time failed The bank is said to have failed because of large overdrafts and unsecured loans. Among the latter is said to be which Arnold. It is charged, borrowed from his own bank without security.
13.February 24, 1928The Indianapolis TimesIndianapolis, IN
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FUNDS TO CLOSED BANK Estate Pays $4,000 to American Trust Receiver at Kokomo. By Times Special KOKOMO, Ind., Feb. 24.-Addition of $4,000 to assets of the closed American Trust Company bank here has been made through payments on claims of the bank against the estate of Herman Mitchell. Following receipt of the money, which 'was a part payment, Grover Bishop, one of the bank receivers, said another distribution of money would be made to depositors within about six months. He expects a 10 per cent payment. A previous one was 20 per cent.
14.February 25, 1928The Call-LeaderElwood, IN
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GUARD FACTS KOKOMO CASE
(Continued from Page because of necessity Stephenson to Be Called. Especial Interest attaches to the of the grand Jury for the reas that Prosecator Miller recently de clared that he will call Stephen son before the body to testify rela five the failure of the American Trust Company and $30,000 in cash ler's made out to the former Klan dragon which were found by re reivers for that institution The fall of the bank resulted in the indict rient of eleven persons ncluding Le then Symons. state bank commis sioner: Thomas D. Burr deputy bank mer state treasurer the bank who was also indicted. him having proved the Arnold in Judge Marshall said today that he ecided upon his program of secrecy "As it. the newspapers really to blame for the failure of Prosecutor and Sheriff John Spear man to bring Arnold the judge said that case had been kept quiet it would have been possible to make much better headway
15.February 28, 1928The Valdosta Daily TimesValdosta, GA
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GRAND JURY BEGINS TRUST FIRM PROBE
Failure of American Company, of Kokomo, Investigated; Stephenson Summoned
DRAGON TO TALK KLAN
Warren T. McCray diana Governor Testify at Hearing of the free American free of by formally begun means jury, Howard County operations were whose by of the HowJohn Marshal and Judge Circuit court. D. Stephenson. former grand dragon of the Indiana Ku Klux Klan, is to be brought from state prison at Michigan City, where he is life prisoner, to be one of the first witWarren McCray, former governor of Indiana, and the state's star witness in the recent trial of Gov.) Ed Jackson, may also testi-
Failure of the American Trust company several weeks ago resulted in indictments against Ora Davies, former state treasurer and others Among these was William H. Arpold. former president of the bank, now in Florida Efforts to obtain extradiction of Arnold failed In returning to Kokomo today to tell his story of "amazing intrigue" which he told Miller and Grover Bishop, one of the bank receivers, he could unfold, Stephenson resists the scenes of his installation of grand dragon of the glan. He was placed in office here in 1923 before a klan gathering of 40,000 people. The story told to the grand jury by Stephenson is expected to be adbstantially the same as that he related tto Miller and Bishop severweeks ago, when he told how score more of politicians were "milking". the banks of the state by charging interest on deposits of state money
16.April 11, 1928The Indianapolis StarIndianapolis, IN
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PICK JUDGE TO TRY SYMONS AND BARR
KOKOMO, Ind., April P. Brown of this city has been selected as special judge to try the case of Luther F. Symons, state bank commissioner. and Thomas D. Barr, his deputy, who were indicted by the Howard county grand jury in connection with the failure of the American Trust Company, it was announced today.
17.May 30, 1928The Times-MailBedford, IN
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DAVIES RELEASED FROM INDICTMENT
Statute of Limitations Responsible for Quashing of Charges
Ind., May Davies, former state today the ranks of among have been released by special jurige from indictments Howard grand jury in the county nection with the failure the Kokomo, which ican Trust Company slated to be the official klan bank Indiana. The statute of limitations was for the quashing the sponsible Davies, who accorddictment against to charges, while state treasand while one of those directing the deposits of state funds, collected cent on the moneys the received for deposit the bank. Special Judge John Joyce of Howard county circuit court ruled that the state had not proved active cealment the alleged irregularity and that consequently the limitations statute prevented Davies still faces civil suit brought by the bank receiver recover Alleged to have been collected by Davies, was for United States Senpaign ator Arthur Robinson in
18.October 26, 1928The Indianapolis TimesIndianapolis, IN
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# THREATENS TO
# MAKE ANOTHER
# PROBE OF BANK
Prosecutor Aroused Over
Missing Papers in
Kokomo Case.
By Times Special
FRANKFORT, Ind., Oct. 26.-
Trial of Frank S. Owens, charged with embezzlement in connection with the American Trust Company bank failure at Kokomo, entered upon its eighth day in Clinton circuit court this morning with a threat on the part of the state that another grand jury investigation of the case may be made.
Prosecuting Attorney Homer R. Miller of Howard county voiced the threat when it developed that debit and credit slips of the bank were missing. Efforts are being made to locate the slips, which Miller intimates will constitute "damaging" evidence that books of the bank were "juggled."
Disclosure that the papers could not be found when Miss Daisy Ervington, secretary to Owens when he was head of the bank and later in the employ of the bank's receivers, was on the witness stand. She said they were placed in a vault but that a search she had made during the last two weeks gave no trace of them.
It is expected the trial of Miller will continue for several days yet. Attorneys for both sides agree there is no possibility of the case being concluded this week.
19.February 26, 1929The Indianapolis TimesIndianapolis, IN
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# CASE AGAINST
# DAVIES CLOSED
Former State Treasurer
Faced Bank Suit.
By Times Special
KOKOMO, Ind., Feb. 26.-Legal action against Ora J. Davies, former state treasurer of Indiana, in connection with failure of the American Trust Company Bank, is apparently at an end.
Following sustaining of demurrers to a complaint against Davies by Judge Cleon W. Mount in Tipton circuit court, to which the case was taken on a change of venue, counsel for the bank's receivers stated no further action is likely.
One paragraph of the complaint sought recovery from Davies of $6,500 paid him by the bank in consideration of his making it a depository for state funds. A second paragraph sought $4,894.15 alleged to have been paid after Davies left the state treasurer's office.
Judge Mount intimated it might be possible to draw a complaint on the second paragraph which would stand, but that the second paragraph was inherently groundless, as the transaction referred to occur at a time when Davies was acting merely as an agent of the bank.
A new development in the bank case is filing of a suit for $5,000 by the Farmers Trust and Savings Ban the Farmers Trust and Savings Bank of Kokomo against Frank S Owens, former American Trust president, on notes he signed as security.
20.November 27, 1929The Indianapolis TimesIndianapolis, IN
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# FIVE CHARGES
# END IN BANK
# FAILURE CASE
William H. Arnold Still Facing Like Number for Trial at Kokomo.
By Times Special
KOKOMO, Ind., Nov. 27.-William H. Arnold, originally accused in ten indictments in connection with failure of the American Trust Company bank here, will have only five of them to contend with, when he faces trial, attorneys announce after looking over the records of the case. After successfully resisting efforts to return him to Indiana from Florida for trial, covering nearly two years, Arnold returned here and surrendered.
Three of the indictments now extinct accused Arnold and his son-in-law, Frank S. Owens, who followed him as president of the bank, with conspiracy to commit a felony. These were dismissed after Owens had been acquitted on a charge of bankers embezzlement. As the indictments named the two jointly, dismissal as to one ended the case for the other.
In another indictment, now invalid, Arnold was accused with R. H. Leavitt and Lewis Kirtley of conspiring to commit a felony. This was dismissed June 21, 1928.
The fifth indictment believed at an end, accused Arnold and his son, Glenwood, of a felony conspiracy. It is said the statute of limitations has run against it.
Still remaining are four charges of borrowing money from the bank without consent of the board of directors, and an indictment for embezzlement and grand larceny.
However, with the five charges out of the way, Arnold is likely to face a strong fight, as during the trial which resulted in Owens' acquittal, much blame was thrown on Arnold in connection with the bank's failure, and evidence which authorities hold will be damaging to him was taken and can be used when he faces the court. No date for trial has yet been set.
21.February 8, 1930The Indianapolis TimesIndianapolis, IN
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INDIANA EXAMINERS OF BANKS ASSAILED receiver showed it to be from 80 to 85 per cent insolvent. It was Judge at Hartford City charged Guy R. Brackin, bank Orders Probe of Montpresident, and other officers accepted deposits after they knew the institution was insolvent. William pelier Closing. A. Kunkel, Bluffton, is receiver. R.V. Times Special Thomas D. Barr, deputy commisHARTFORD CITY, Ind., Feb. 8. sioner of the state banking department, said K. L. Billings had con-The Blackford county grand jury ducted the investigation of the in session here is investigating failbank. Billings is no longer in state ure of the Farmers Deposit bank employ. of Montpelier following a charge Barr said he was unaware of any of Circuit Judge Victor H. Simmons basis for the jury investigation of that state bank examiners, although the examiner's procedure. knowing the bank was insolvent, The Montpeller case is similar to failed to close it. He instructed that of the American Trust Comthe jurors to indict the examiners pany of Kokomo in which Barr and and bank officials is evidence warthe chief examiner, Luther P. ranted charges. Symons were indicted. The indictments at Kokomo Judge Simmons said examiners had inspected the bank's books becharged the two men permitted the fore the closing and refused to trust company to continue operaorder it to suspend operations until tions despite evidence of weakness. Later the indictments were a private citizen threatened to ask receivership. quashed by Special Judge C. T. Brown on the grounds that the pow"Any bank commissioner who ers of the banking commission were fails to report an insolvent condilargely discretionary, and that no tion of a bank may be guilty of a statute made the failure to close an felony," the judge said. unsound institution a crime. In an The judge pointed out that the statement of the examiners showed opinion given by Attorney-General Arthur L. Gilliom the ruling of the bank to be only 4 per cent inJudge Brown was upheld. solvent, while a later report of the
22.May 11, 1931The Indianapolis TimesIndianapolis, IN
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ACCUSED MAY RETURN SOON Former Kokomo Banker Said to Be in III Health. By Times Special KoKoMo, May 11.-That William H. Arnold, now a resident of Palatka, Fla., defendant in criminal proceedings brought by Howard county authorities three and onehalf years ago, is contemplating an early visit to Kokomo, is a report current among acquaintances here. The report is that Arnold is broken in health and feels that if he could have a change of scene his condition might improve. The rumor has served a revive interest in the prosecution of Arnold for alleged criminal transactions while serving as president of the American Trust Company, local banking institution, defunct since September, 1927. The case against Arnold was taken to Cass county on a change of venue and has been at a standstill for more than a year.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
