Citizens Trust Company (Sullivan, IN)

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STATE CLOSES SULLIVAN BANK President Lang Missing for Several Weeks. The State banking department today announced that it has closed and taken charge of the affairs of the Citizens Trust Company of Sullivan, Ind. J. M. Lang, president of the bank, has been missing several weeks. According to bank department officials, no discrepancies have been discovered in the bank's accounts, but some irregularities in management of the safety deposit department have been indicated. Thomas D. Barr, assistant State bank commissioner, and Examiner K. Z. Brownwell are in charge of affairs of the institution. They are expected to ask appointment of a receiver. Fear that Lang, who also is State treasurer of the grand encampment, Independent Order of Odd Fellows, is suffering with amnesia and is wandering around the streets of Indianapolis, was expressed today by George P. Bornwasser, secretary of the lodge. Bornwasser's theory was strengthened by Frank Wiseman. 620 N. New Jersey St., painter, who told The Times that he met a man answering Lang's description at Fortieth St. and College Ave. Wiseman said the man talked in a rambling way. Operatives of the Webster Detective Agency were to check with the Illinois Central Railroad to determine whether Lang had used the second part of his ticket to come to Indianapolis from Terre Haute.

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STATE BANKER CALLED FORGER Warrant Given to Sheriff for James Lang. By Times Special SULLIVAN, Ind., March 7.-First action under criminal law in the case of James M. Lang, 73, missing president of the closed Citizens Trust Company Bank here, has been taken. A warrant is in the hands of the Sullivan County sheriff today, based on a forgery charge filed in Sullivan Circuit Court Tuesday. Amount of Lang's shortage at the bank has not yet been determined. A check of records continue, but to date State bank examiners have disclosed that many forged notes have been discovered and that Lang failed to account for $60,000 in Liberty bonds. Denial that a reward of $10,000 has been posted for arrest of Lang, missing since Feb. 2, is made by Ben C. Crowder, temporary receiver of the bank, and by Mayor Richard Bailey, vice president.

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By Times Special SULLIVAN, Ind., March 8.-Directors of the closed Citizens Trust Company here, apparently are not sufficiently interested in James M. Lang, 73, its absconding president, to pay expense of arresting him. After a reward of $10,000 for Lang's arrest had been posted, didectors withdraw it when advised by Ben C. Crowder, temporary receiver, that arrest.expenses would come out of their pockets.

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THE EFFINGHAM DAILY RECORD

Entered as second class matter 1898 at Effingham, III., under the act of March 1878.

Effingham Daily Record Founded 1898 LICRONE PRESS BUILDING 110, 112, 114, 116 N. BANKER ST. EFFINGHAM, ILLINOIS

WARNING ISSUED AS MORE BANKS IN INDIANA FAIL

Indianapolis, Ind., Feb. 16.-FollowIng the closing today of more banks, Luther F. Symons, state bank commissioner, tonight issued statement asserting that the general stability of Indiana banks is assured, and urging depositors not to spread rumors 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 Bank 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 sixty-five, arrested, charged with 845,000 failure, at Bluffton, started the wholesale collapse there. Sullivan authorities tonight announced they have received tip that James Lang, president of the Citizens' Trust company there, who absconded some time ago with several thousand dollars, wrecking the Institution, has been traced to the Pacific The numerous Indiana failures are laid to crooked bank officials, negligende on the part of the official examiners, public hysteria, and straightened circumistances in rural areas.

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LANG WILL BE STAR WITNESS IN BOND FIGHT Claim for $60,000 Will Be Presented April 22 in Vincennes Court. BANK WILL NOT REOPEN Conditions in Sullivan Are Regarded as Too Unfavorable. By Times Special SULLIVAN, Ind., March 21.-Interest in efforts to clear up Sullivan county's tangled banking situation will be centered in Vincennes April 22, when in Knox circuit court William Abbott of Spencer will present his claim for return. of $60,000 worth of Liberty bonds from the closed Citizens Trust Company. James M. Lang, 72, president of the trust company, who returned to Sullivan Monday night after being a fugitive for more than a year on a charge of forging $15,000 in notes, is expected to be the star witness in the Abbott hearing Lang asserts he returned the bonds to Abbott. Regardless of the outcome of the case, Ben C. Crowder, receiver for the company, believes there is scant chance that the concern will be reopened. Many Hope for Reopening With return of Lang-"Uncle Jimmy" to hundreds of county residents-many depositors expressed hope that the bank would be reopened. But Crowder points out that the city already has two banks; that three others in the county are closed, and that industrial conditions are bad, due to idleness in the coal mining industry. Lang's testimony at Vincennes is not expected to disclose any great volume of evidence regarding the Sinclair oil stock phase of the county banking situation. He declares he never dealt in the stock and that his sole connection with oil was represented in small sums for "wild cat" drilling ventures. The next court move in the situation will be at Newport March 28, when a list of assets of Jessup F. Bolinger, president of the closed First State Bank of Shelburn, is filed by his attorney, Lee F. Bays, with Everett Davidson, federal referee in bankruptcy. Grand Jury to Report Bankruptcy proceedings against Bolinger, who is serving a term in Indiana state prison in Michigan City, after confessing to a forgery charge, were involuntary. Estimates of Bolinger's forgeries of notes run as high as $200,000. The Sullivan county grand jury will report April 15 on.its probe of the situation, including the fatal shooting of Edgar D. Maple, vicepresident of the People's Bank at Sullivan. Lang, facing a charge of forging $15,000 in notes, will not be tried before the May term of the Sullivan circuit court, unless he asks for an earlier hearing, Prosecuting Attorney Jesse Bedwell announces. Business Staggers On In the meantime, business throughout the county is going on as best it can under the circumstances. Many residents have money in closed banks. As yet no estimate has been made of what percentage of deposits, if any, will be paid. "I don't know whether I have even a dime left," is an oft-heard remark from bank depositors.

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SULLIVAN WAITS COURT HEARING ON ABBOTT $60,000 CLAIM AGAINST BANK

(By Staff Correspondent The IndianaSULLIVAN, Ind., May 17.-Almost the whole of the city of Sullivan is interested in the forthcoming struggle of William Abbott, of Spencer, to establish his claim against the Citizens Trust Company $60,000, which James Lang, of the defunct bank, says Abbott has already obtained. Abbott's petition to declare his claim scheduled for hearing in the circuit court Knox county May 22, and on that day citizens as find possible will go to Vincennes hear the evidence in this remarkable controversy. The claim of William Abbott to of the assets the Citizens Trust Company is predicated on transnumber of years in which he and Lang almost. to the of other attaches of the bank which was closed February 23, 1928. On the whole, the contentions of these two men do not vary to great extent. Abbott asserts that when the Citizens Bank was closed, following the flight of James Lang from Sulliowed him in fourth Liberty bonds which he had intrusted to its president for safekeeping. Lang, who returned voluntarily to Sullivan after spending more than as asserts that Abbott got his bonds long before Lang ran away. Second Check Pointed Out. In support of his claim for the issued by Lang for $60,000 of Liberty bonds. In denial, Lang points to was in the files the Citizens Trust Company, made by the bank to bearer, which that given lieu of duplicate deposit slip that was lost. Abbott this instrument as forgery and an part of the hearing at will be the controversy over the of the signature on check purports to be the signature of William Abbott. Abbott says he "trusted Lang with never even had and that merely called on Lang and checked up his balances on stubs in at various intervals, during which he deposited thousands of dollars with the trust company. Records bank show that were issued either Abbott count, that least $35,000 of bonds were bought Abbott's and that several thousand dollars passed through his checking None these is disputed by the of the it is fact that both parties the have freely exchanged information attempts to determine the truth as to Abbott's claim. A deal interest that the claim is pecuthe bank not owe Abbott the $60,000 he claims, then the creditors will pro rate money their losses the failure will be materially reduced If Abbott makes good his claim there will be little to rate among these

Leaders in The legal battle for this $60,000 is the direction of Charles Bedwell, former Speaker of the Indiana legislature, for the bank's receiver, and C. E. Henderson, of Indianapolis, for Abbott. are attorneys known integrity in the of the struggle both given of greater desire to to the truth of the conthan to win law of the between Lang and Abbott has been that Abbott bought of certificates of deof the Citizens Trust Lang has asserted that the held Abbott correct and valid claims against the bank. The certificates were issued to Abbott and bear his name. But, on the are shown as issued William H. Allison. James Abbott, John Ella AdJohn Lang asserts that changes were made on this register to assist Abbott in avoiding taxation on his money while Abbott asserts these edge for to On his return to Sullivan after his year of Lang statement in which he that Abbott's of him over to the for in with of Abbott's taxable property contributing cause to his flight from Sullivan Abbott he to conceal his that he threatened Lang any Abbott's bonds is that he instructed Lang to buy for him

No. 1. The signature on the $60,000 James Lang says was given by William Abbott ceipt for bonds which Abbott says forgery. No. Signature on a check held by the Citizens Trust which says forgery substituted for check the same amount which was issued by him.

No. 3. recent authentic signature of William Abbott on letter written with lead pencil and offored for No. Abbott's name as he wrote It with pen serve return address on an

$60,000 of fourth Liberty bonds, and placed at Lang's disposal the money to make the purchase. He says he turned to Sullivan once to of the bonds for him, and other for period because Lang did not desire to convert Abbott's deposit into bonds and thereby deprive the bank of the use money at that time. Story by Lang. Later, Abbott says, he checked over the $60,000 of bonds which Lang had bought for his account, found them satisfactory and instructed Lang to hold them subject to his orders. Lang says that Abbott him in the bank on certain day, told him that revenue officers were after him, and that he wished to get his bonds to Shelburn, where he could take evade officers; that Abbott then took his bonds and signed the check for and was to by Whitaker, an employe of Abbott that Whittaker drove to serts that he was told by Lang that officers that hurried some which car at Shelburn went directly to the office of the internal partment at to what from him. He denies he his bonds from Lang at or any the thenticity the serts was to act as receipt for the This $60,000 check or receipt bears the of Armistice established in on Citizens open that date. On his return to Lang serting that dated relative to Abbott's which would have been by the issuance dated on the day he asserts the was ten. Abbott fixed these puted from statements of each, it is indicated that the incidents out of which the check originated place the latter part of April, 1927. Checks and Stubs Held. The Citizens Trust Company holds as number of checks issued by Abbott which conform to the bank's records of his account. holds on his account with the bank is shown to at variance with the bank's records These checks and stubs pertain only to Abbott's account, which separate his general account. involving the bonds and certificates of deposit. However, the checks are inevidence for the check, around which the rages. There are checks drawn in lead penand in ink those the The the $60 check nearly bles those signatures than in those in ink. and Abbott that not the on the forgery, but that is and that been for issued by him the that, $60,000 forged for Experts pected to for both coming trial at Vincennes, where record is whether the $60,000 the claim whether the the point no longer suit for but ing the integrity of the Jesse has heard both sides in grand jury sel yet in all and he belief bring toward still the in county the start long of that startled the county. the

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Expert Didn't

BULLETIN

G. Woods, noted hand expert, of Chicago, testified this afternoon that the signature the alleged receipt of $60,000 bonds, Abbott's. He made detailed analysis of his reasons for lieving the signature not

Abbott's. Woods also testified that the alleged receipt made from $10 check.

Attorney for William Abbott, of Spencer, who pressing his $60,000 claim against the defunct Citizens Trust Company, of Sullivan, in Superior court here, laid today what is believed to be the ground work for their charge that receipt William Lang, president of the bank, purported have given Abbott for $60,000 worth of Liberty bonds is rank forgery and made from $10 check. Lang claims he gave the bonds Abbott and result Abbott has no claim against the bank's receiver. Abbott denies that he ever ceived the bonds. Checks Introduced. His attorneys today introduced evidence three checks; for one for and $159.57. All were made out to the Citizens Trust Company. Abbott, who was still on the stand from yesterday, dented that had written these checks, and declared them to forgeries. He read from his check book stub that he had cheeks for these amounts on the very same dates, but that they were made out niece by the name of Mary. Abbott's attorneys will attempt show, was said, that Lang substituted the alleged forgeries for the real checks in order establish new signature of Abbott and thereby make possible the alleged forged receipt for the worth of bonds, which Abbott denies he has signed. Woods, of Chicago, one of the country's most noted hand writing experts, was placed on the witness stand the afternoon session. He said that the three checks introduced into testimony this morning were not written by Abbott. Woods his gave reasons detailed analysis of the photographic copies of the checks. One other hand writing expert expected called this afternoon: The introduction of the checks the only high spot of the morning's which drgaged due to the deliberation of Abbott. Henderson, his attorney, turned Abbott over to the defense attorneys shortly before 10 o'clock. Charles Bedwell, chief defense counsel, then began the battle, bring forth some definite information from Abbott. Most his answers were don't remember." Abbott substantiated also his reputation as man of mystery. Bedwell spent all morning endeavoring get Abbott to tell where he lived from 1921 to 1924, the time when the negotiations over the bonds taking place. Tells of Travelings. Abbott testified that was in Arizona, New Mexico, California, Sullivan, Dupont, Ind., Arkansas, and other places, but refused to say when or how long he was various places. The cross examination was interrupted at one point to enable William Tichneor, an official of the Terre Haute Bank and Trust company and formerly of the United States Bank and Trust company, to testify. Tichneor said that on Feb. 19, 1923, the latter bank loaned M. Lang $11,500 with deposited Liberty Bonds collateral. He said the loan was paid off finally on Aug. 15, 1924. Evidence was also troduced show that the pro(Turn to Page Seven)

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Lang Admits He Changed Abbott Receipt

VINCENNES. May 72, served the defunct Citizens Trust company bank of Sulliven president for nearly years. has admitted on the witness stand in Knox circuit court here that he "dated receipt for $60.000 in Liberty bonds to deceive internal revenue agents on an come tax return. William Abbott, Spencer, suing the bank's receiver. Ben Crowder, for declaring represents that amount in bonds which the bank never returned him. Lang, first witness for the defense. asserted the bonds had been returned and the receipt has been offered in evidence. The bank's former president testified that although the receipt bears the date of Nov. 11. 1925, really written May 1927. explained the discrepancy in dates designed to show revenue men that Abbott did not possess the bonds on the May date. Lang was the first witness callby the defense in the case. bott, the plaintiff, is seeking to tablish himself proferred creditor bank.

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BANKER ADMITS

CHANGING DATE

Tax Evasion Revealed in Abbott-Lang Case.

By Times Special VINCENNES, Ind., May 28. — James M. Lang, 72, who served the defunct Citizens Trust Company Bank of Sullivan as president for nearly twenty-five years, has admitted on the witness stand in Knox circuit court here that he "dated back" a receipt for $60,000 in Liberty Bonds to deceive internal revenue agents on an income tax return.

William J. Abbott, Spencer, is suing the bank's receiver, Ben C. Crowder, for $60,000, declaring it represents that amount in bonds which the bank never returned to him. Lang, first witness for the defense, asserted the bonds had been returned and the receipt has been offered in evidence.

The bank's former president testified that although the receipt bears the date of Nov. 11, 1925, it was really written May 17, 1927. He explained the discrepancy in dates as designed to show revenue men that Abbott did not possess the bonds on the May date.

Lang was the first witness called by the defense in the case. Abbott, the plaintiff, is seeking to establish himself as a preferred creditor of the bank.

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ADMITS "DATING BACK' RECEIPT

FORMER PRESIDENT OF DEFUNCT BANK TESTIFIES IN $60,000 SUIT

VINCENNES. Ind., May 29 (UP) Pames M. Lang, seventy-two.jwho served the defunct Citizens Trust Company bank of Sullivan as president for nearly twenty-five years, has admitted on the witness stand in Knox circuit court here that he "dated back" a receipt for $60,000 in Liberty bonds to deceive internal revenue gents on an income tax return. William J, Abbott, Spencer, is suing the bank's receiver, Ben C. Crowder, for $60,000 declaring it represents that amount in bonds which the bank never returned to him. Lang, first witness for the defense, asserted the bonds had been returned and the receipt has been offered in evidence. The bank's former president testified that although the receipt bears the date of Nov. 11, 1925, it was really written May 17, 1927. He explained the discrepancy in dates as designed to show revenue men that Abott did not possess the bonds on the May date. Lang was the first witness called by the defense in the case. Abbott, the plaintiff, is seeking to establish himself as a preferred creditor of the bank.

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BANKERS TESTIFY AGAINST ABBOTT

Claim Lang's Receipt for $60,000 Bonds Was Not Forged.

By Associated VINCENNES, Ind., May cennes and Sullivan bankers had testified in Knox superior court here today that in their opinion the signature on the alleged receipt for $60,000 worth of liberty bonds is in the handwriting of William Abbott, suing Ben receiver for the Citizens' Trust company of Sullivan, to establish himself as preferred creditor. Presentation of evidence in support of Abbott's suit had been completed to-day and the defense was continued with James M. Lang, former president of the bank, as the first witness. Under examination by Charles Bedwell, attorney for the receiver of the Cititzens' Trust company, Lang testified that Abbott came into the Citizens' Trust company May 17. 1927, and obtained $60,000 in bonds which he had purchased through the bank and left in Lang's private safety deposit Abbott's suit to establish himself as preferred creditor is based upon these bonds which, he contends, were turned to him. Lang he the $60,000 worth of bonds in the general banking room of the Trust pany and that he filled out check for in lieu of deposit slip issued on Sept. 24, 1924, which Abbott said he had Lang declared that Abbott this which Intended receipt for the bonds. The purported receipt was offered evidence during the presentation Abbott's case and was denounced by him as forgery.

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BOND TRIAL NEAR END

Jury Will Get Abbott Case at Vincennes Friday.

_By Times Special_

VINCENNES, Ind., May 30.-The suit of William Abbott, Spencer, seeking to recover $60,000 in Liberty bonds from the receiver of the defunct Citizens Trust Company of Sullivan, will reach the jury in Knox circuit court here Friday.

Following resting of the defense case, the state offered rebuttal witnesses, including Robert A. Butler, Indianapolis newspaper man, who testified that he refused an offer of $10,000 to $30,000 made by Abbott if he would help him in obtaining bonds. Other rebuttal witnesses were Hymera residents, who testified Abbott's reputation for honesty and fairness was bad.

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BOND CASE HALTED Arguments on Claim Against Sullivan Bank Set for June 17. By Times Special VINCENNES, Ind., May 31.-The suit of William J. Abbott, Spencer, on a claim for $60,000 against the new defunct Citizens Trust Company Bank of Sullivan, came to an abrupt halt in Knox circuit court here today when Judge W. F. Calverley announced that no further proceedings would be had until final arguments are made June 17. Evidence for both Abbott and Ben C. Crowder. receiver of the bank, was closed today when witnesses in rebuttal were heard. They tesified regarding the character of Abbott and James M. Lang, former head of the company.

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ARGUMENT ENDS IN BOND TRIAL Abbott Case Decision Probable This Month. By United Press VINCENNES, Ind., June 18.Arguments have been completed in the suit of William Abbott, Spencer, against the receiver of the Citizens Trust Company, Sullivan, on a claim for $60,000 in liberty bonds. Judge W. F. Calverley of Knox circuit court did not give a definite date for his ruling on the case, but said he would endeavor to reach a decision before June 29 when the present term is concluded. Attorneys for Abbott challenged the defendant to name the piece of poper which James M. Lang former president of the institution gave Abbott as a receipt for the $60,000. The receipt was said to have been in the form of a check. Abbott charged that he placed the bonds in care of the bank and had failed to receive either the bonds or a receipt.

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FORMER BANK HEAD ON TRIAL Faces Two Charges in Sullivan Court. By United Press SULLIVAN, Ind., July 3.-The trial of James M. Lang, former president of the defunct Citizens Trust Company bank here, on charges of embezzlement and larceny is in progress today in Sullivan circuit court. A jury composed of five women and seven men was chosen Tuesday to hear the case. The indictments, consisting of five counts, were returned against Lang in February, 1928, after he had mysteriously disappeared. The trust company was closed by the alleged finding of bad paper and a claim for $60,000 in liberty bonds which William Abbott contended he placed in the bank's care. He. said he failed to receive either the bonds or a receipt. Lang. who disappeared before the institution was placed in the hands of a receiver, was induced to return and has been at liberty under bond since. Abbott filed a claim against the company demanding possession of the bonds which he said were left with Lang. Trial of the claim was held in Knox county sometime ago, evidence and arguments being heard. Judge Calverly, who heard the case. intimated that he would decide the claim in September.