Farmers State Bank (Monticello, IN)

Episode Information

Episode Type
Suspension → Closure
Start Date
March 17, 1930
Location
Monticello, Indiana (40.745, -86.765)
Bank Type
state
Routing Number
71-0468

Metadata

Episode ID
Bank ID
City ID
180439369
Model
gpt-5-mini
Short Digest

Events (3)
1. March 17, 1930 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank examiners' report prompted state banking commissioner to petition for a receiver; bank was insolvent or in unsafe condition leading to suspension
Newspaper Excerpt
when the bank was suspended
Source
newspapers
2. March 31, 1930 Receivership
Newspaper Excerpt
appointed joint receivers for Farmers' State bank this morning Judge Ralph McClug[h]y appointed Brucker Loughry, appointed joint receivers for Farmers' State bank this morning
Source
newspapers
3. December 1, 1930 Other
Newspaper Excerpt
The distribution of $40,000 to depositors of the defunct Farmers State Bank was started today by the receivers. The amount represents 35 per cent of the total deposits of the institution.
Source
newspapers

Newspaper Articles (11)
1. March 24, 1930 The Monticello Journal Monticello, IN
Article from The Monticello Journal, March 24, 1930

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CONTINUANCE IS GRANTED TO BANK

Depositors Name Committee To Go Over Report of Bank's Condition.

A weeks continuance was granted this morning by Judge Ralph McClurg in circuit court to permit the depositors of the Farmers State Bank more time to determine the condition of the bank and the possibilities of reorganization before a receiver is appointed.

A petition had been filed by the state banking commissioner asking that a receiver be appointed for the bank this morning. A large crowd of depositors was present in the court room although it had been voted at depositors meeting to ask for a continuance. T. J. Hanna, acting as attorney for the depositors, explained to the court the attitude of the depositors and asked for the delay. Judge McClurg said he was anxious to give the depositors as much time as possible without further injuring the condition of the bank, and the representatives of the state banking department who were present, agreed to the week's continuance.

Mr. Hanna requested that a committee from the depositors be given access to the report filed with the court by the bank examiner and this was agreed to. The depositors held a meeting in the jury room and selected a group of five who were to act for the rest in selecting the committee. They were Dr. A. B. Cray, S. W. Young, Mrs. Rosa Sills, Bert Jackson and Charles Si' The committee which they select work in cooperation with W. K. Fraser of the state banking department and on their report probably will determine the action of the court next Monday morning.

Suit was filed in circuit court this morning by the White County Board of Finance against the Farmers State bank and others asking ,000 on bond. It is set forth in the complaint that the bank was used as a depository of public funds and that on March 17, when the bank was suspended the county treasurer had on deposit. Named in the suit are Burdell B. Baker, Frank U. Baker, S. W. Young, O. A. Rothrock, Wm. Lods, Burdell W. Baker and Wm. N. Scott. L. D. Carey is the attorney for the county. The county commissioners were in session Friday, and it is understood decided upon the filing of the suit as a precautionary measure. Many of the depositors are hopeful of opening the bank in the near future, and there are several means suggested for reorganization. Others say that if the assets are properly liquidated and are not hurried too much, that the depositors will easily be paid in full.

It is expected that some time during the week enother meeting of the depositors will be held, when- the committee will report on the condition of the bank. At that time decision will be made as to the best course to pursué. Whatever is done, of course, will have to meet the approval of the state banking department, which is now in charge of the assets of the Farmers Bank.

2. March 29, 1930 Journal and Courier Lafayette, IN
Article from Journal and Courier, March 29, 1930

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Article Text

FRICTION BETWEEN HOOVER S. NAVAL DELEGATION AND

Acting Secretary of State Cotton, After White House Conference, Issues Statement Saying Delegates Have Unqualified Support and Authority of President in Negotiations.

HooWASHINGTON, March ver moved today to quell reports that he is at odds with Secretary of State Stimson and the other American delegates at the London naval conference over Stimson's anthe United States into a nounced willingness to put political pact. These reports have gained such wide currency that LOSS EXPECTED they have been embarrassing to Mr. Hoover, to the state to an even greater degree to the American delegation London. the president sumActing Secretary of State moned the White House this CLOSING Cotton to BANK after conference morning, and Cotton to the department issued this Committee Recommends Re- differences "There view between the president ceivership and Estimates delegation London. delegation has always had, Depositors Will Get But now unqualified support authority. delegation in London Sixty Cents on Dollar. patiently to explore suggesMONTICELLO, Ind., March made and every any that leads the great purpose tempt at the State bank, special limitation naval Farmers' duction and depositors' committee recommended and preservation of the the of receiver, of the peace meet- that the high hope last court room be evolved which for doing The closed nearly

3. March 31, 1930 Journal and Courier Lafayette, IN
Article from Journal and Courier, March 31, 1930

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MONTICELLO BANK RECEIVERS NAMED

Ind., March Brucker Loughry, appointed joint receivers for Farmers' State bank this morning Judge Ralph McClug, in circuit Both accepted and to take

4. December 1, 1930 The Monticello Journal Monticello, IN
Article from The Monticello Journal, December 1, 1930

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Article Text

DISTRIBUTION OF $40,000 STARTS

Depositors Now Receiving Checks at Farmers State Bank.

The distribution of $40,000 to de positors of the defunct Farmers State Bank was started today by the receiv. ers. The amount represents 35 per cent of the total deposits of the institution.

The checks ranged in amount from a few cents to $1400, and were given to about 130 people, ninety per cent of whom live in this community.

Under a ruling of the banking au thorities, interest on certificates of de posit was allowed up to the date of the closing of the bank.

Coming as the distribution does, just at the opening of the Christmas season, the money doubtless will have a beneficial result on the trade in this vicinity. Confidence is expressed that the bank will pay at least so or 60 per cent through future dividends.

Preferred claims, comparatively few in number. have not yet been allowed, but it is expected that action will be taken shortly and funds will be available to make payment.

It is understood that the bank will be included among others who may contest suit filed by Guy Wolverton to foreclose mortgage on farm owned by Burdell Baker in Big Creek townsihp. While the bank is not directly interested. it feels that it might become so should certain litigation now pending in court turn in its favor.

5. December 11, 1930 Journal and Courier Lafayette, IN
Article from Journal and Courier, December 11, 1930

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Article Text

Decision Made On Bank Claims At Monticello

MONTICELLO, Ind., Dec. 11.matter of claims in the Farmers State bank receivership was up for hearing in the White circuit court and the fol. lowing were allowed as preferred and ordered paid in full by the receivers: William Hilbert, $815, only $400 of which is preferred; Mrs. V. N. Henderson, $21; W. N. Scott, $67.42: L M. Ferguson, $14: Guy Wolverton, $111.57; Marilyn Inskeep, $132.51 Wm. K. Inskeep, $5.50: William Hickman, $60. The following were allowed as general claims and the receivers were ordered to pay 35 percent of the amount at this time: Toledo Scale Co., $7.36: American Petroleum Co., $287.86; Hillcrest Beach, $103.02; Mrs. Daisy Louderback, $13: United Corporation, $5.50; Victor Safe and Equipment Co., $3.17; Elwood Bank Supply Co., $42.

FEW ON ROLL. The scholarship honor roll for the third month of school was yesterday by Principal Robert Ross and shows that in the senior high school of 260 members, 11 1-6 percent made the honor roll. Of the 29 on the honor roll, 13 or nearly one half are members of the junior class. There are 130 in junior high school and total of seven. or 5 1-3 percent, are on the. November honor YOUTH DIES. William Fred Burns, 16-year-old son of Mr. and Mrs. Jesse Burns, of the Sitka passed away Wednesday at a. m. following a' long illness of heart trouble. His condition had been critfor three weeks. The funeral will be held from the Sitka church Friday afternoon at 2:30 with Rev. Alvin Hall officiating. Burial in the Shafer The parents and four brothers Mrs. Freeman Cripe was removed to the Home hospital at Lafayette in the Free ambulance Wednesday in critical condition from a complication of appendicitis and peritonitis. PROFESSOR SPEAKS "The Service of Life" was the subject of brief talk given by Prof. Blackwell of Franklin college, before the student body of the high school, Wednesday morning.

NEW SUITS FILED The suits have been filed in White circuit court during the past few days: Appointment of a guardian for Hugh F. Treanor. Robert H. Shook et al vs. John Kern. Flyod Wheeler et al VS. John L. Fife, et al-Action on note. Farmers and Traders State bank of Monon VS. Emery D. Kellenburger et al-Action for foreclosure of mortgage. Dena Bauman vs. Leq Gross et al-Action on note. Prudential Insurance company vs. Emma Decker et Foreclosure of first mortgage. Eastern Rock Island Plow company vs. Tom Lampe et alAction on note.

6. January 22, 1931 The Monticello Journal Monticello, IN

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VAN TO MOVE TO BANK BLDG.

Rumors Say Chain Store May Occupy BakerAnheier Bldg.

O. P. Van Alstine, proprietor of Van's Lunch, has leased the Farmers Bank Building from Pete Combis, of Valparaiso, who recently purchased the building from the bank receivers, and plans to move his restaurant to the corner room formerly occupied by the bank as soon as the vault can be torn out and the necessary alterations made.

T.J. Hanna will continue occupy the rooms on the second floor. Mr. and Mrs. Van Alstine will move into the suite of rooms now rented by Mr. and Mrs. Heiny. The restaurant will be moved as soon as the remodeling of the bank is completed, which will probably take several weeks.

The Baker-Anheier building, now occupied by Van's Lunch, has not yet been leased, although it is understood that negotiations are under way with several companies. One concern which has shown especial interest in the location is understood to be Tuttle Bros., a large packing company of Gary, who now operate 37 chain meat markets in the Calumet region. It is also rumored that a chain grocery company has been considering the advisability of opening a store in the building. Mr. Combis has made no announcement, and it is not known how authentic either of these reports may be.

The Van Alstine restaurant was opened in the Baker-Anheier building about seven years ago by Ralph Davis. It was later purchased by Mr. Van Alstine, who has successfully operated it for five and a half years.

7. November 13, 1931 Muncie Evening Press Muncie, IN

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STATE SEEKS PRIORITY IN BANK FUNDS

Appellate Court Fails to Agree.

IS TEST ACTION

Suit Goes Before SuCourt. preme

INDIANAPOLIS, Nov. The question of priority of state funds over general deposits debanks placed in hands state court today judges in the lower court failed in decision. The case appealed to the pellate court in the White Circuit which ruled that claims state funds had no priority rights. Attention. Regarded test the suit has and to clarify situation that has aroused bitter controversy. State funds at issue in the suit to $10,000 deposit the Farmers State Bank Monticello when that closed March, 1930. F. Brucker, one the bank receivers, was named defendant. started by the Fidelity and Deposit Company, which responsible for state funds in the The asked that claims to the state funds in the bank be given The request was denied in the lower court.

8. April 25, 1932 Journal and Courier Lafayette, IN

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A MONTICELLO CASE before the of the important questions One Indiana supreme court for decision is that of funds in defunct bank whether not state in claims. The question prior application, contained in suit brought of Marythe Fidelity and Deposit company land against W. F. Brucker and William N. Farmers' State bank receivers of the Loughry, Monticello. had $10,000 in the The state deposited Monticello bank with the Fidelity company bond in that amount security posting When the bank closed in March, 1930, and the state the Fidelity company paid the amount, it filed claim in its intervening petition asking that its claim be allowed preferred claim with priority payment general The grounds which the filed was that the company claim right of to the state's sovereign abrogated preferred payment. The Fidelity company lost its suit in the White circuit court and appealed the decision court. After conthe Indiana appellate sidering the case for some time, appellate on to the supreme court passed the case of the six appellate judges court because four failed to agree. Brucker, Loughry, the appellees Farmers' State bank receivers, and the bank itself relation of Luther Symons, state banking commissioner.

9. January 3, 1933 The Indianapolis News Indianapolis, IN

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FINDS STATE DEPOSITS HAVE NO PREFERENCE

Supreme Court Decides Against Priority of Claims.

IN BANK RECEIVER CASE

Claims of the the state of Indiana against of insolvent banks for money on deposit at the of the closing the banks have no priority over claims of other general depositors. the Indiana supreme ruled Monday The opinion was written by Judge Clarence R. Martin. who spent his day Monday as Judge of the supreme court. Judge Julius C. Travis, whose last day on the court was Tuesday. did not participate in the dedecision of the White circuit court that $10,000 state deposit in the defunct Farmers State Bank of Monticello was not preferred claim. to be paid before claims of general depositors were satisfied The appeal was filed by the Fidelity and Deposit Company of Maryland, the which provided bond for state funds. which the state, contended statute had covering the situation the common law and that this right had been inherited by bonding The supreme court decision, in part, said "When the state determines to place the funds has collected in bank as general deposit, subject to check and bearing interest, it enters upon business with the banking corporation, the same as any might do: the absence express the the courts can not not extend the preference inheres in the exercise of functions to include such business Especially this true where has appointed for the insolvent bank and the rights of all the of the bank been attached to the funds in his The opinion pointed out that there no statute specifically up the right preference. There any inherent right of the state for nor any showing intent on the part of the legislature create right of preference, according to the opinion.

10. January 12, 1933 Reno Gazette-Journal Reno, NV

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HOLDS PUBLIC FUNDS NOT PREFERRED

Inasmuch as the state of Nevada and its civil subdivisions may set up the claim that their deposits have preferred status over individual deposits in the closed Wingfield banks and that they should be paid in full. the following dispatch from Indianapolis, Ind., interesting. According the supreme held that in the absence of state statute to that effect the state has no such preferred satus. The Indianapolis dispatch says: state of Indiana does not have preferred claim for its deposits in closed banks, the Indiana supreme court has ruled in upholding decision of the White circuit court. "The suit was instituted by the Fidelity Deposit Company of Maryland against W. Brucker and William Loughry, receivers for the closed Farmers State Bank of Monticello, and Luther Symons, state bank commissioner. The state had been reimbursed for its loss by the curety and the latter was seeking ferred status on the theory that the state was cliamant and that the surety was subrogated to its rights. 'Because there are no statutes providing for priority, the supreme court held that the state has no preference for debt which bank incurs when accepts deposit of state funds under the Indiana depository laws. The surety had contended that in the absence of statute, the state has priority under common law court said that because there was no prefernece, unnecessary to decide whether the surety was subrogated to all of the rights of the state after paying the loss.'

MASTER MECHANIC VISITS master mechanic for the Salt Lake division of the Southern Pacific Company, visited Sparks yesterday. He made tour of inspection of the entire plant, returning to headquarters in Ogden last night

11. March 14, 1935 The Monticello Herald Monticello, IN

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Newton County Loan and Savings Association of Indiana vs James H. Lucas et al—On plaintiff's motion this cause is dismissed and costs paid.

State of Indiana vs Farmers State Bank of Monticello, Indiana—Receivers report the deed to Mary Drake for the real estate described in report of sale. Deed is examined and approved by the court and ordered delivered.

Margaret Lytle vs Bert Rose—Defendant files affidavit for a change of venue.

State of Indiana ex rel Luther F. Symons, Bank Commissioner of the State of Indiana vs the State Bank of Wolcott—Court finds the intervening petitioner Walter Benge that his claim of $20.64 be allowed and receiver of said bank pay the claimant the sum as preferred claim together with costs.

The Department of Financial Institutions of the State of Indiana vs Sam Wingardner et al—On plaintiff's motion this cause is dismissed as to the defendant, S. F. Schlegel-