Studebaker Bank (Bluffton, IN)

Episode Information

Episode UID
71035071527
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7103507 routing
Routing Number
71-0350
Start Date
March 26, 1927
Location
Bluffton, Indiana (40.739, -85.172)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
be2d46a84fea32b2

Response Measures

None

Description

Bank suspended March 26, 1927 and entered receivership; permanently closed/defunct.

Events (3)
1. March 26, 1927 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank was insolvent; liabilities exceeded liquidating assets per receiver's testimony.
Newspaper Excerpt
the bank suspended business March 26. 1927.
Source
newspapers
2. May 20, 1927 Receivership
Newspaper Excerpt
Judge A. W. Hamilton announced he would name a permanent receiver for the institution at 9 a. m., Friday. Morris E. Stults, cashier of the Citizens Bank, which is the temporary receiver, testified the Studabaker Bank is insolvent.
Source
newspapers
3. February 28, 1929 Other
Newspaper Excerpt
authorized by Judge A. W. Hamilton to make 10 per cent distribution to general creditors of the bank, totaling $112,521.29.
Source
newspapers

Newspaper Articles (10)
1. May 20, 1927 Muncie Evening Press Muncie, IN
Article from Muncie Evening Press, May 20, 1927

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HOLD INSTITUTE AT BANK RECEIVER UNION CITY SUNDAY UNION CITY, Ind., May 20. The annual Wayne Township TO BE NAMED Leadership Training Institute will Judge Hamilton Will Appoint Today. BLUFFTON, May 20. After hearing evidence on the question of the solvency of the now defunct Studabaker Bank of this city, Judge A. W. Hamilton announced he would name a permanent receiver for the institution at 9 a. m., Friday. Morris E. Stults, cashier of the Citizens Bank. which is the temporary receiver. testified the Studabaker Bank is insolvent. The liquidating assets were 1,348,532.44 and liabilities are $1,563,314.32, he said. Mr. Stults said the figures on assets did not include assessment on stock and that the bank was probably insolvent in the sum of $89,781.88. The bank is capitalized at $200,000 and Mr. Stults said his estimate of assessment on stock would bring at least $125,000. be held here Sunday afternoon and At the afternoon session in the Presbyterian Church the speakers will be the Reverend A. E. Hoppes and the Reverend L. H. Graham. Conferences will be led by the Reverend A. L. Ward. In the evening session in the Christian Church the address will be delivered by the Reverend T. S. Haddock. Special music will be provided for both sessions by the Sunday schools of the township. The institute will be in charge of the township officers, Bethel McKnight, president, and Orla Bennett, secretary.

2. September 15, 1927 Leader-Tribune Marion, IN
Article from Leader-Tribune, September 15, 1927

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NO DIVIDENDS SOON IN BLUFFTON CASE Bluffton. Ind., Sept. Stults, cashier of the Citizens receiver for the defunct Studebaker bank. today informed Judge W Hamilton of the Wells circuit court. that no dividend could be paid to positors for some time. At present the receiver has only about enough cash on hand to make per cent dividend. and preferred claims now pending estimated $10,000 would have be paid out of that amount before dividend could be declared. Mr. Stults also reported that the defunct bank holds second mortgages on twenty to farms, which first mortgages far in excess of the value of the land. Farms held by the bank last year caused $75,000 to operate them, he said. The defunct Studebaker bank had more than deposit. About of the collectby the thus far paid to other banks on loans totaling

3. October 28, 1927 The Star Press Muncie, IN
Article from The Star Press, October 28, 1927

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BLUFFTON Bluffton, Ind., Oct. party of 92 Wells County farmers and business men arrived home this ning from 3-day trip to points in Ohio, Michigan and Canada heavily infested with corn borers and all Ar. Macon (Cof G) are thoroughly converted the Jacksonville (ACL) am. urgent necessity of taking every Miami (FEC) Tampa (ACL) od possible to keep the borers Sarasota under control in Indiana. Judge W. Hamilton today enSt. Petersburg 6:25 pm. tered judgment in favor of the Citidescriptive literature. fares, zens Bank as receiver for the Studebaker Bank, against the CenH.M. Mounts, tral Investment Company in the Carpenter, City sum of $28,117, including attorneys Merchants Bank Building fees of $1,140. Virgil M. Simmons, Ph.Riley local attorney, was then appointed Milliken, for the defendant in the Louisville, Ky. tion, the Central Investment Company, a local corporation, with bond placed at $10,000. William Snyder, crippled farmer living near Kingsland, taken B A D into custody late yesterday and brought to the county jall here to await hearing on petition asking that he be declared of unsound mind and admitted to a state institution for A license Issued today to Mrs. Edith Mildred Lazette, 22. daughter of and Mrs. Charles Turner and her first husband, Clarence Ellsworth Wolf. She was divorced from him, married Lazette and divorced the latter and successfully wooed again by Wolf.

4. October 30, 1927 The Star Press Muncie, IN
Article from The Star Press, October 30, 1927

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BLUFFTON Bluffton, Ind., Oct. 29.-John Flechter, Jr., and son, Ervin, 12, were recovering today from the effects of partial asphyxiation suffered yesterday afternoon while working in cistern in the basement of home five miles northeast of Bluffton. All persons in Wells County who are desirous of making borer Canada, who did not get accompany the Wells County delegation, this week, will have an opportunity to make the trip next week with an expedition from Wabash and Whitely counties, County Agent M. S. Smith announce The Citizens Bank, today receiver for the Studabaker Bank judgment in the sum 85 by Judge A. W. Hamilton in Circuit Court today. Petition for foreclosure of mortgage on defendants' was granted. Judgement sum $117.44 on an alleged unpaid note was demanded supplemental complaint filed in Circuit Court today by the Union Central Life In surance Company against Francis Gore and others. A sedan belonging to D. F. Mitzwhich was stolen from in front of the Mitzner home by joyriders night found abandoned rear school building here this morning.

5. February 24, 1928 The Star Press Muncie, IN
Article from The Star Press, February 24, 1928

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BLUFFTON Bluffton, Ind., Feb. 23.-Morris E. Stults was appointed receiver for the Studebaker Bank this afternoon by Judge A. W. Hamilton in the Wells Circuit Court, following acceptance by the court of the resignation of the Citizens Bank as ceiver. Stults's bond was put at $50,000. Laverne Kitchen. 3. son of Mr. and Mrs. James Kitchen, of this city, suffered severe injury his right hand and forearm when his hand was caught in an electric clothes M. Walbert, local justice of the peace. sitting as special judge in Juvenile Court here, today quitted George Snow and Miss Yolande Perry. of of charges of contributing to the delinquency of 14-year-old girl. James Reynolds today filed complaint Circuit Court here against Blanche Reynolds, seeking annulment of their marriage, which took place July The Kiwanis Club voted last night to sponsor Kiwanis boys' potato club for Wells County. Each Kiwanian and will sponsor boy potato raiser assist him in procuring seed for a. quarter of an acre patch. calf club also to be organized.

6. February 15, 1929 Chicago Tribune Chicago, IL
Article from Chicago Tribune, February 15, 1929

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WARNING ISSUED AS MORE BANKS IN INDIANA FAIL Indianapolis, Ind., Feb. 14.-[SpeFollowing the closing today of more banks, Luther F. Symons, state bank commissioner, tonight Issued a statement asserting that the general stability of Indiana banks is assured, and urging depositors not to spread rumors that might cause runs. Not a bank in Bluffton, Ind., remains open, and only the Craigsville State bank, the Farmers State bank, at Ossian, and the State Pank of Poneto, remain open in that county. Wells County bank was closed yesterday, and the Union Savings and Trust company was closed today. State banks are also closed in Wells county at Petroleum, Liberty Center, and Uniondale, and Farmers' Deposit bank, at Montpelier, nearby, was also closed today. The Citizens' National bank, at Hope, was closed today and Herman A. Stewart, age arrested, charged with embezzlement. The Studebaker bank failure, at Bluffton, started the wholesale collapse there. Sullivan authorities tonight they have received a tip that James Lang, president of the Citizens' Trust company there, who absconded some time ago with several thousand dollars, wrecking the inAll druggists. stitution, has been traced to the Pacific Coal. The numerous Indiana failures are laid to crooked bank officials, negligence on the part of the official examiners, public hysteria, and straightened circumstances in rural areas. HELD ON BAD CHECK CHARGE. Robert Benedict, 24 years old. manof the Evanston the Wilms Electric ager company 1616 Chicago avenue. Evanston. was taken into custody with yesterday by Evanston police and charged worthless checks amounting

7. March 1, 1929 The Star Press Muncie, IN
Article from The Star Press, March 1, 1929

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CREDITORS PAID TEN PER CENT Studebaker Bank, Bluffton, in Distribution. Bluffton, Ind., Feb. 28.-Morris E. Stults, receiver of the Studebaker Bank, this afternoon was authorized by Judge A. W. Hamilton to make 10 per cent distribution to general creditors of the bank, totaling $112.521.29. The checks were placed in the mail this evening, ready for delivery to creditors in the morning. There are about 3,000 general claimants to share in the distribution, the first that has been made to general creditors since the bank suspended business March 26. 1927. Accompanying the checks there was sent to each general creditor letter in which Receiver Stults detailed the work that has been performed in the receivership. This included the statement that the receiver had to collect and pay to banks approximately $350,000 loans. also to collect funds to pay preferred claims amounting to approximately $80,000 before he began make any accumulations towards payment of any funds to general creditors. In addition he had to pay expenses accruing that totaled about $40,000. A total of about $85 000 was settled by allowance of set-offs. The receiver shows that there remains in his custody unliquidated assets that include personal and mortgage notes totaling $435,000. also 1867 acres of land, six city properties. thirteen vacant lots and $2,500 worth of farm personal property No estimate was given as to what per cent of the remaining assets are thought collectable. Conscience Money With Interest. Fred Carnall. farmer living southeast of Bluffton. today received an anonymous letter by special delivery. in which was enclosed $25 in currency. $20 and $5 bill. with the statement that the writer desires to make restitution for keeping $15 which Mr. Carnall lost and the writer found at an unstated date. Mr. Carnall recalls that he lost $15 about nineteen years ago and had carried lingering suspicion that it had been stolen. The anonymous letter reads as follows: "Dear Mr. Carnall: Please accept this $25 for the $15 I found once. with interest. Am so sorry I did it. Please forgive me. realize if everything is not made right here, it will be too late over there Ossian Power Meeting Set. The Ossian town board today gave notice by publication that there will be a meeting of the board on March 15 to give further consideration to an ordinance contract with the Ossian Water Company for installation of a power waterworks system at Ossian early the coming summer. Tentative action was taken on February 26th for such contract. The board also gives notice of purpose to issue bonds in the sum of $11,000 to pay for stock subscribed in the water company The tentative contract calls for installation of eighteen fire hydrants at $80 each per year. with similar cost for each additional hydrant. except for one that is to be installed free of rental charge. The maximum rate to commercial users of water is to be 40 cents per 1,000 gallons. To Improve Highway. Arthur Glass, superintendent of the Bluffton- Wayne division of state road No. 3, stated today that the entire road between the two cities is to be treated the coming season with resurfacing material. The work will not be started for several weeks. Couple to Wed March 2. Announcement has been made at Ossian that the marriage of Miss Arlene Vananda. teacher in the Ossian schools. daughter of Mr. and Mrs. Fred Vananda. and Ralph Archbold will take place Saturday. March 2. at Ossian. Both are graduates of the Ossian High School and the groom has made his home with an William The couple will re- side in Fort Wayne, in which city Mr. Archbold is employed as an electrician. Bluffton Short Notes. The funeral of Lewis Hardin. who died while on a visit at Virgil, Kan., will be held at the First Baptist Church in this city, at 2 o'clock Friday afternoon. and burial will be in Elm Grove Cemetery. The city fire department was called at noon today to the residence of Perry Thompson, on East Wiley avenue, to extinguish a roof fire started by a spark from chimney. The damage was nominal. Coach Louis Means of the Bluffton High School, has issued call for applicants for a new high school honorary athletic fraternity. Prescribed athletic records in high school activities are qualifications for membership. Mrs. Ellen Kahn. living in the south part of the city, was sentenced by Judge A. W. Hamilton to tenday term in the county jail upon being found guilty of contributing to the delinquency of her minor children.

8. August 20, 1929 Imperial Valley Press El Centro, CA
Article from Imperial Valley Press, August 20, 1929

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BLUFFTON, Ind., Aug. 20.-(U.P) -For six years James R. Crosbie, 73, toiled faithfully without pay to satisfy the debt of another man. Now he is again on a payroll, having satisfied a $12,000 debt for which he went as security. This remarkable example of honesty was revealed when M. E. Stultz, receiver for the Studebaker bank, gave Crosbie a check for his work during the past month as caretaker of one of the farms owned by the defunet bank, and now in charge of the receiver. Crosbie suffered a business misfortune which turned him from affluence to poverty. Then a friend whose note he had signed for $12,000 also "went under" and creditors came to him for the money.

9. August 28, 1929 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, August 28, 1929

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BOND JUDGMENT GIVEN Receives Administrator Bluffton Award of $7,137. Award of $9,137.85 to Frank W. Gordon, Bluffton, administrator of the John Gordon estate, for Liberty bonds deposited in the defunct Studebaker bank, Bluffton, was approved today by the appellate court. The ecase was appealed from the Wells circuit court by Morris E. Stultz, bank receiver. The bonds deposited with the bank by John Gordon totaled $8,700 and were sold by the bank for $7,748. The judgment includes the value of the bonds and interest.

10. August 29, 1929 The Star Press Muncie, IN
Article from The Star Press, August 29, 1929

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AFFIRM RULING IN WELLS COURT Studebaker Bank Receiver Loses Estate Action. Bluffton, Ind., Aug. Indiana Appellate Court today handed down decision affirming Judge of the Wells Circuit Court, in ruling in the bank receivership case. The case was wherein Frank Gordon. administrator of the John W. Gordon filed preferred based on Liberty bonds face value, which he had posted with the bank and which the receiver, Stults, contended were bank assets, on with funds deposited on certificates of deposit and therefore entitled only to general claims' status. appealed from Judge Hamilton's finding The total including principal and interest, The receiver stated today that similar claims by other depositors bonds would bring the total of this class of claims to When the receiver made distribution recently retained funds with which to pay these bond claims in the event an Appellate Court ruling to that effect. Mistake May Cost Man's Life. Lewis Burgess, prominent resident Petroleum, patient in the Wells County Hospital here ous condition from the effects of bichloride of mercury tablets taken mistake yesterday afternoon at his home. He had intended to take tablets for stomach medicine He discovered his mistake within few minutes and to the office local and after treatment taken the He appears improved today but has not been pronounced out because of the slow action the bichloride tablets. The tablet taken mistake contained seven grains the bichloride of mercury. Proposed Tax Levy Unchanged. The city council met last night and adopted budget for the coming which provides for total raised. The council adopted levies which provide for total city tax levy of cents, the same as last year. The rate held the same total despite fact that the city valuation $507,000 lower than last year. hearing will held the proposed budget on September 10. Denies Chicken Thefts. Arnold Holmes, arrested Huntington and returned here to answer charges of larceny and burglary, clared his innocence charge stealing chickens from Robert McCracken, near Liberty Center He held in under bond $10,000. while the sheriff makes further in vestigations. Mrs. Herman Dies at Hospital. Mrs. Susanna Herman, 75, wife of John Herman, died at the county hospital here this morning after an 111ness of several weeks from heart disSurviving are the husband and sons, William Hatfield, of Fort Wayne, and George Hatfield, of ButThe funeral held the First Church this city Burial will be in Cemetery. Bluffton Short Notes. John Penrod. living on West Wa- bash street, this city, reported today the theft of 250 glass fruit jars from at his home. They had placed in two barrels which had disappeared when the Penrods were ready to use the Fire of undetermined origin last night destroyed barn on the Lewis Mills farm, east of this city, near the county line. The is estimated $3,000, with parinsurance. The family was absent and neighbor discovered the fire. Contents included fifteen tons of new hay placed in the barn yesterday. Arthur Ferguson, farm hand. living west has received $25 paid farm paper for the capture of Smith, now serving penal farm sentence, after having apprehended by Ferguson in the act of stealing gasoline from tank on the Cyrus Allen farm, west of Ossian.