Citizens Bank (Liberty, IN)

Episode Information

Episode UID
71054571558
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7105457 routing
Routing Number
71-0545
Start Date
October 29, 1929
Location
Liberty, Indiana (39.636, -84.931)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
eb4eee12714cb0c6

Response Measures

None

Description

Articles state the bank was privately owned and was closed by the state banking department; later placed in receivership and did not reopen.

Events (3)
1. October 29, 1929 Suspension
Cause
Government Action
Cause Details
Closed by order of the state banking department / deputy commissioner following examination of books and shortage of cash
Newspaper Excerpt
The doors ... were closed October 29, 1929, by order ... deputy state banking
Source
newspapers
2. November 2, 1929 Receivership
Newspaper Excerpt
Elmer F. Bossert ... was appointed temporary receiver of the institution by Judge O'Byrne in Union circuit court today.
Source
newspapers
3. October 15, 1930 Other
Newspaper Excerpt
Trial of William P. Kennedy, cashier of the defunct Citizens bank, is in progress ... charged with embezzlement in five counts of indictments returned April 12.'
Source
newspapers

Newspaper Articles (18)
1. November 1, 1929 The Richmond Item Richmond, IN
Article from The Richmond Item, November 1, 1929

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PROGRESS SEEN IN FORMING OF TRUST COMPANY Further Details Will Be Ironed Out At Meeting In Liberty At Today LIBERTY, Ind., Oct. 31.-Definite made this afternoon in the organization of a trust company assume control of the Citizens' bank, which suspended operations, Monday, by order of the state banking commission, at meeting of the promoters "Another meeting is scheduled for Friday morning, the conclusion which hope to be able to make detailed statement,' Walter Bossert, local attorney, said this evening. can be stated at this time the company which to be organized will start with substantial surplus. Liberty business interiests are behind this project solidly," Mr. Bosadded. What condition the state banking department finds the Citizens bank to have been in at the time of suspension of its operations will not be known until the report of the examiners has been filed. William Kennedy, cashier of the Citizens bank which was controlled Kennedy and company the operations of which he is said have directed, was named one of the damage suit for $4,500, filed by Charles B. Decker and wife, living three miles south of town, for alleged prevention of sale of real estate. Kennedy comthe other defendant. Following the filing of this action Decker, operated general store filling station at Roseburg, southern Union county hamlet, was arrested on an affidavit filed by the Liberty Auto Sales company charging him with the issuance fraudulent check in excess of $100, last May. The warrant was issued by James Miles, justice of the peace. Decker's bond is $1,000. The Deckers allege in their comin 1925 to William P. Kennedy deed to their real estate and three pretended bills of sale covering personal merchandise and fixtures for the sole purpose of securing an indebtedness of $5,200 to Kennedy, evidenced by three notes; that the mortgage and bills of sale were in reality intended to be real estate and chattel mortgages, respectively, and understood by Kennedy. is alleged that Kennedy represented that two of the notes, for $2,000, the other for $700, had been assigned him by the Kennedy company. The Deckers allege an agreement with Kennedy wherehe to reconvey the property them at future upon the execution of mortgage to him. The complaint further avers that at the time of the of the deed and the pretended bills of sale Kennedy took possession of the property and the personal property during the temporary sence Decker. is alleged that after repeated demands by the plaintiffs Kennedy, in February, 1926, did relinquish possession of the property and personal goods upon the execution of chattel mortgage of $2, to him. He, in turn, executed bill of sale for the personal property the Deckers, but fused to deed back the real estate, it charged. Since that time, it is alleged, the Deckers offers for the of their which could not be accepted because the deed in the possession Kennedy. One offer was for $8,000 in cash, said. In June, 1928, the Deckers filed suit to have the alleged pretended deed declared mortgage and in June 1929, the Deckers and Kennedy reached compromise is averred under the terms which the court was to render judgment the mortgage, Kennedy to receive $6,500. The were to have 45 days pay the amount agreed to. At the expiration that period the Deckers were unable to meet the obligation and the estate and chattel mortgages they had issued at the time of agreement were forclosed. The real estate was sold for $3,900 at sheriff's sale last September.

2. November 3, 1929 The Richmond Item Richmond, IN
Article from The Richmond Item, November 3, 1929

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ELMER BOSSERT MADE CITIZENS' BANK RECEIVER Issues Statement He Will Expedite Liquidation of Institution's Assets LIBERTY, Ind., Nov 2.-Administration of the affairs of the defunct Citizens' bank of Liberty, which suspended operations last Monday, was surrendered to Elmer F. Bossert, local attorney, by the state bank department following Bossert's appointment as temporary receiver of the institution by Judge O'Byrne in Union circuit court today. Mr. Bossert stated he would do everything possible to hasten the set. tlement of the bank's affairs. He was placed in temporary control of the institution after the directors of the bank, including Mrs. Emmazetta Bonnelle, president, William P. Kennedy, cashier; Adelaide K. DuBois, Flora Kennedy and Samuel Lambert had petitioned for a temporary receiver and the State of Indiana, on the relation of Luther Symons, state bank had applied for permanent There will be hearing on the latter petition in Union circuit court next Saturday. In the action entered by the bank directors it is alleged the institution is insolvent and in "failing con dition." Judge Raymond S. Springer. Connersville, one of the attorneys aid ing in the organization of the Citizens' bank, said the organization of trust company to succeed the suspended institution was almost com- nation, is an illustration of the latter. It is not to the life of the soldier alone that the should be erected to Burnsides, but to the excellent example of citizenship and to his closing days as member of the United States senate representing Rhode Island. They were the crowning achievements of a long and useful life that his memory should ever be kept green in his native county. We are deeply indebted to Mrs. Thomas Daugherty of Boston for the loan of a book on the life of General Burnsides which furnished the data for the article. Mrs. Daugherty had as her childhood companions the nieces of General Burnsides who lived in the vicinity of Liberty and her interest in the famous general was greatly increased thereby. work sewing but at the same time reading "Cooper's Tactics" propped up before him. The one remark by Congressman Smith, "you ought to be a cadet at West Point" changed the course of the young tailor's entire life and though discouraged by friends who said he would never get the appointment kept at it until crowned his efforts. He was fortunate to have father at this time member of the Indiana state senate and he was able to influence the other senators in an appeal to the President, John Tyler. Accordingly in 1843 young Burnsides was enrolled in class of 34 embryo officers for Uncle Sam's army. From that time on through pleted and would be prepared to begin operations as soon as the settlement of the affairs of the old bank had been completed by the receivership. "I also wish to state there is no question but what the depositors in the Citizens will be paid dollar for dollar the amount of their accounts," Judge Springer stated. After the receiver begins to convert the assets of the bank into cash the court will, from time to time, order gradual reimbursement of deposits, Judge Springer added. The application for receiver filed by the bank officials states that the petitioners are partners in J. P. Kennedy and company, "which is vitally interested in the conservation of the assets of said bank, and which partnership is liable for any deficit that may exist in the funds of the bank.' The application also states that a temporary receiver is immediately required to administer the considerable assets of the Citizens bank. some of which are perishable, to collect rents and profits from real estate holdings and business estab. lishments and to supervise such assets as mortgages. Included among the bank's assets, Walter F. Bossert, attorney. listed the Crystal Ice company, Liberty, grocery at Roseburg and Kansas oil wells, from which the bank receives royalties, farm properties in several states and Chicago real estate. "The action taken today will have no detrimental effect on the eventual revival of the institution as a trust company operating under state charter. In fact it is my belief the receivership will hasten the reorganization of the bank's affairs," Mr. Bossert stated. The examination of the records of the Citizens bank by state bank department examiners, under the direction of Deputy Commissioner Barr. has almost been completed. Paper held by the institution is being closely scrutinized and Mr. Barr has stated that some of is of "questionable value. It is expected a detailed report of the bank's condition will be submitted to the state bank department the first of next week. Some woodpeckers store up acorns in hollow trees. In the winter when worms are unavailable, they break open the nuts, which have developed worms inside them during the interval of storage.

3. November 3, 1929 The Star Press Muncie, IN
Article from The Star Press, November 3, 1929

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LIBERTY BANK RECEIVER Liberty, Ind., Nov. Bossert, Richmond attorney, today was appointed temporary receiver for the Citizens Bank, of Liberty, which closed its doors early this week. Appointment followed application for receivership in the Union Circuit Court stockholders in the bank and by Luther Symons, state banking commissioner. Symons's petition was for permanent receiver and November set by the court as the date for the hearing. Examiners the state banking department have not completed their investigation of the affairs of the bank.

4. January 27, 1930 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, January 27, 1930

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CLOSED BANK RECEIVER LOSES IN COURT RULING Permission to Cancel Accounts of Borrowing Depositors Denied. By Times Special LIBERTY, Ind., Jan. 27.-A petition of Elmer F. Bossert, receiver of the defunct Citizen's bank here, to cancel the accounts of borrowing depositors to the amount of between $25,000 and $30,000 was denied in Union circuit court here. Bossert planned to subtract from depositors' accounts the amount of notes held against them by the bank. In denying the petition the court ruled that this method would divide the depositors into two classes. Those who had formerly borrowed money from the bank would receive 100 per cent settlement on their deposits, while those who had deposited and not borrowed may not receive such a satisfactory settlement.

5. January 27, 1930 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, January 27, 1930

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CLOSED BANK RECEIVER LOSES IN COURT RULING Permission to Cancel Accounts of Borrowing Depositors Denied. LIBERTY. Ind., Jan. 27.-A petition of Elmer F. Bossert, receiver of the defunct Citizen's bank here. to cancel the accounts of borrowing depositors to the amount of between $25,000 and $30,000 was denied in Union circuit court here. Bossert planned to subtract from depositors' accounts the amount of notes held against them by the bank. In denying the petition the court ruled that this method would divide the depositors into two classes. Those who had formerly borrowed money from the bank would receive 100 per cent settlement on their deposits, while those who had deposited and not borrowed may not receive such a satisfactory settlement.

6. February 21, 1930 The Richmond Item Richmond, IN
Article from The Richmond Item, February 21, 1930

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LIBERTY BANK TO BE INVESTIGATED BY GRAND JURORS Inquiry to be Resumed in Near Future, it is Expected, by Union County Body LIBERTY, Ind., Feb. 20. With the opening of the next term of the Union circuit court. March 17, expected the grand jury will be con vened delay the affairs defunct Citizens over William Kennedy presided for cashier. The doors the were closed October 29, 1929, by order Thomas deputy state Shortly thereafter Judge Roscoe O'Byrne, Union cuit court. appointed Elmer Bosser receiver the bank and later sert was appointed receiver for Kennedy company, which trolled the William Kennedy also acted manager of and The grand jury the present term of court its session few weeks time delving ago the affairs of the Citizens bank finally adjourning without taking any except recom mend further investigation the case, referred to as certain mat grand jury grand jury that the court specifically direct the attention succeeding grand jury this court to the transcript dence herein referred to in order investigation may be. succeeding fully finally concluded," the reads. for granted by former of the Citizens bank that the grand sume the the fairs of defunct cularly the activities of its cashier William Kennedy, will the some time after March and their hope that this grand jury will "fully finally' investigation. here the forthinvestigation of the Citizens bank failure will be largely centered the transactions recorded in the called "little black book,' found drawer at the bank by state examiner after the the closed. The book the "memo" type men carry in their The tions entered this said total $90,000 but, these particular tions are not shown on the official institution. To Investigate The grand jury expected to determine of generally circulated reports that many of the items the "little black book" concern funds left the bank by trons used for the purpose purchasing bonds other securities, securities owned by individuals left at the bank ror safe keeppresumed that other entries the "little loans said have made to the bank by There are people in Liberty and its vicinity who hold receipts given to them the Citizens bank for they had left the Institution to be for them the discretion the cashier, William P. Kennedy. There are other people who hold receipts issued securities turned over the bank for safe keeping. and. said, other former patrons the bank hold receipts for loans made Only Record of Bank the record to be found the "little black the grand jury of the of court money the bank the purchase of actualused for that purpose: not what was made such funds. When the bank operations there than $4,000 of hand. also be up the next grand jury determine what became those for the most part the entrusted the bank for safe keep- is understood that when the bank the only found in the of value $1,550 and were the actual property Receipts Presented Ever since suspended people who had left monthe bank have securities purchased for and people who had left securities the bank for safe keeping presented ceipts the formed by that their securities not Such people their chances other preferred the recovering the money left at the bank to be for the value of left for when the final made by the after liquidaof the assets of the bank and, necessary, the liquidation of the of the of the heirs of the late Kennedy There of the bank who assert they were by their safety deposit and them to the assurance that the vault much and. addition, the the vault were fully covered by insurance. These people are dering what became of their secur- Appraisers appointed by the court inventory the assets the Citibank reported an actual of the depart. after the bank closed, Oct. that the face value held the institution totalled $150,184.84. same notes given of valuof mortgage against reported face valuation Automobile notes held by the bank, an approximate total face $33,000, appraised list overitems, furniture fixtures, the bank $300,000 and

7. June 28, 1930 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 28, 1930

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RECEIVER WINS IN BANK CASE Set-Off Denied Depositor of Closed Company. By Times Special LIBERTY, Ind., June 28.-Judge Roscoe O'Byrne, in Union circuit court here has ruled that Ray Miles is not entitled to a set-off in a test case brought by Miles, against Elmer Bossert, receiver of the closed J. C. Kennedy Company. Bossert brought action for the collection of the note against Miles. Counsel for Miles raised the question of relation between the J. C. Kennedy Company and the defunct Citizen's bank, claiming that Miles should be allowed a set-off for a deposit he had in the bank. An attempt was made to show that the Kennedy company and the bank were composed of the same persons. There are more than twenty other depositors of the Citizen's bank facing a similar situation and these have organized for the purpose of seeking to prevent losses. Attorneys for Miles stated they would take the case to the Indiana appellate court.

8. August 27, 1930 Palladium-Item Richmond, IN
Article from Palladium-Item, August 27, 1930

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DEPOSITORS OF LIBERTY BANK PLAN ACTION LIBERTY, Ind., Aug. 27.-About 75 depositors the defunct Citibank met with members of the depositors' and Will Reller, attorney of Richmond, at the courtroom Monday evening to more fully discuss plans for the protection of the depositors. George Coughlin the sence of Lyman D. Orr, who is chairman of the committee. After giving report of the last meeting the signing of contracts which had been previously mialed to to be signed and to the Mr. Coughlin introduced Mr. Reller, who has been employed by the the depositors claims against the bank. Mr. Reller quoted from section of the law governing "Private Banking" which provides according to his inhave first lien all assets of such bank. He also stated that certain of the bond holder claimants had filed such claims on the theory that such bonds left in trust with the bank would preference. Mr. Reller said that this would be true if the money bonds could be traced into bank, otherwise inasmuch as this was private concern the agreement or contract should have been recorded in the office of the county not been done and therefore he that these bonds became of the bank and should be used in the payment of the claims the various depositors. fact, the attorney stated that instead of the bondholders appearing before the court asking for preference, the depositors should be doing this. As to the notes held by the Fletcher American bank against Citizens bank for the approximate amount of $34,000 to $50,000 as collateral, the attorney said that in his interpretation of the law the depositors should also have first claim on these notes and that same should gotten back into the the bank's receiver considered as assets of the bank He urged that an action be taken to recover the notes from the Fletcher American bank and "placed in the hands of Elmer Bossert receiver order that he might proceed to collect them. The attorney asserted that the dewere preferred creditors positors of the bank itself and the assets this was not sufficient pay out, then they, the depositors became general to the other sets held by partners of the banking institution. Mr. Reller also presented argument to the effect that Kennedy Company The Citizens bank were one and the same have always been so, strengthening his argument with the quoting from agreement which now wherein record the widow the Kennedy agreed the children to continue banking the Citizens Bank business known as and operated by the Kennedy Company for several years previous P. Kennedy, and the death of placed the mansuch agement the banking business Kennedy, in hands of William the the cashier since has acted as stated time. He emphatically that the two institutions are one and and been same the Mr. Bossert, stated the Mr. Reller receiver, that bank's he had obtained the information $45,now has some 000 that $50,000 ready for distribution arises as to how but the question to distributed this money and until this cording to law, no distribution by the court, can He be listed made. the assets of the bank Libnotes, real in including tracts of farm esty and estate lots in some the states of Illinois, Missouri, Chicago, and lots in Kansas, wells at city which are netting an income at the present rewhich income being time, and by the receiver. assets of the that the is bank may thought total $200,000, which make may 100% but will out substantial not pay payment to creditors. Julian the American Fletcher bank was in court Tuesday and conferred with the receiver, Mr. Springer and Mr. Reller in regard to the matter that bank. the held by notes agreement was conference made and on will be further there of this week. matter on Friday the were in number of attorneys court Tuesday and quite bit of time was taken an effort to determine hearing in the the proper procedure claims. Wednesday the court there will hear of which are the bond claims

9. October 2, 1930 Palladium-Item Richmond, IN
Article from Palladium-Item, October 2, 1930

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DEPOSITORS FILE AGAINST LIBERTY BANK RECEIVER LIBERTY, Ind., Oct. 2.-Depositors, bond receipts holders, members of the savings and other departments of the defunct Citizens' bank have taken definite step to have their claims against Elmer F. Bossert, receiver, allowed. Thirty suits have been filed in the Union county circuit court, naming Bossert as defendant. In each case, two complaints were filed, one naming Bossert, receiver of the bank, as defendant, and the other naming him defendant as receiver of the J. P. Kennedy company. It was thought here Thursday that additional will be filed soon. although just how many could not be ascertained. The cases will be heard during the October term which will convene Monday, Oct. 13. for a period of four weeks' duration. The plaintiffs, previously, had filed with Bossert claims for the specified amounts, As he disallowed them, the depositors took more definite step and filed action in the Union county court.

10. October 15, 1930 Palladium-Item Richmond, IN
Article from Palladium-Item, October 15, 1930

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Trial of Kennedy Opens In Union Circuit Court Little Progress Made in First Day of Selection To Be Made from Special Panel of 75 With Embezzlement LIBERTY. Ind., Oct. the defunct Citizens bank, of this place, went on trial today, on charges of dictment Union county grand on April Selection of jury, from special panel 75, on order of Judge Roscoe probably will work accomplished the first Kennedy, accompanied by his wife, table attorneys, Ray K. Shiveley and Gath Freeman, Richmond, and Leland Bond, of Richmond. Charles Baker, prosecuting torney for Union and Franklin ties, has as special aides in the the case, Will Relof Estal The has subpoenaed but the state will place Elmer Bossert, the bank's receiver, Richard Ross Bruce Stephens, Ernest and Minnie Fields stand. Kennedy entered plea guilty the charges, liberty bond Closed Last Year The bank was closed on Oct. 28, last year, an order of the state banking following an that bank's books, the time of the closing, mand of more than $160,000 and the cash on hand amounted under $4,000 exBonnelle, Bois, William nedy, cashier; Kennedy, sistant cashier; Samuel Lambert and Mrs. Bonnelle, DuBois and W. Kennedy served the board of directors. The prospective jurors were being questioned to whether they had (Please Turn to Page Twelve)

11. October 16, 1930 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 16, 1930

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Alleged Embezzler on Trial at Liberty on Five Counts. Bu Times Special LIBERTY, Ind., Oct. 16.-Trial of William P. Kennedy, cashier of the defunct Citizens bank, is in proggress in Union circuit court here. Kennedy is charged with embezzlement in five counts of indictments returned April 12. Judge Roscoe C. O'Byrne overruled defense motions to quash the indictments and for a change of venue. Th bank was ordered closed by Thomas V. Barr, deputy commissioner of the state banking department, Oct. 29, 1929. The books showed demand deposits to be greatly in excess of cash on hand, Barr declared. Stockholders of the bank are Mrs. E. K. Bonnelle, president; A. K. Dubois, vice-president; William P. Kennedy, assistant cashier; Samuel Lambert and Mrs. Flora Kennedy. Elmer F. Bossert, Liberty attorney, who was appointed receiver for the bank, recently obtained a court order prohibiting the stockholders from disposing of any of their personal property, since, as the bank is privately owned, all property of the stockholders is considered assets of the bank. A special venire of seventy-five persons was drawn for prospective jury service.

12. October 22, 1930 The Richmond Item Richmond, IN
Article from The Richmond Item, October 22, 1930

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BANK RECEIVER IS EXPECTED TO TESTIFY TODAY Elmer F. Bossert, Important State Witness, to be Called GOOD REPORT COMPLETED Richard Ross, Employe of Defunct Bank, Gives Testimony BY W. POUNDSTONE LIBERTY, Ind., of the for the in the trial of William Kennedy, cashier the defunct Citizens bank of Liberty, on charge of embezzlement an agent of $2,387 belonging to Mrs. Minnie Fields, living near Quakertown, will be Elmer Bossert, receiver for the institution and for Kennedy Co., which owned and operated the bank until closed, Oct. 29, 1929, and expected to be called to the stand some time tomorrow. Since the opening of the trial, Monday, the state, despite the energetic but generally futile objections the part counsel for the fense, probing deeply the affairs of the Citizens' period months prior the of its that state's to material and irrelevant the issue, the extent, fact, that the criminal itself almost lost sight Attorney Will W. Reller. Richmond attorney assisting the ecution, has replied to the criticism the defense counsel, including torneys Ray K. Shiveley, Gath Freeman, of Richmond, and Leland Bond, Liberty, with the sertion that the he been cause seeks fraudulent activities on the part Kenimmediately the ing the Citizens' bank and the he alleged have agent for Minnie Fields her, and Judge Roscoe O'Byrne has largely ported the state this Mrs. Fields and her Fields, have testified she money Kennedy, Aug. 1929, for the purpose having him purchase for her but that bonds were never purchased that the never was her. The defense Mrs. Fields has preferred claim the bank that money will her in Elmer for the bank, called the stand day for the especial pur(Continued on Page Six)

13. October 25, 1930 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 25, 1930

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Former Cashier of Closed Bank at Liberty Accused of Embezzlement. Ball Times Special RICHMOND, Ind., Oct. 25. - Introduction of evidence by the defense is under way in the trial of William P. Kennedy, charged with embezzlement, which is being held in Union circuit court here. The state rested its case after presenting testimony for four days. Several days probably will be required for the defense to give its testimony. Elmer F. Bossert, acting as receiver for both the Citizens bank and J. P. Kennedy & Co., stated on the witness stand that there was no indication the two organizations were separate. The state charges Kennedy, former cashier of the bank, embezzled money intrusted to him by Mrs. Minnie Fields to buy bonds and states these funds were mingled with the bank funds. The defense contends Mrs. Fields' money was placed in with the J. P. Kennedy & Co. account and that it will be refunded.

14. October 27, 1930 Palladium-Item Richmond, IN
Article from Palladium-Item, October 27, 1930

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Henry G. Bonnelle accounts, but by the time the bank was closed the $90,000 had shrunk to something less than $2,000, as revealed by the balances of the three accounts at that time. "No one connected with the bank ever got anything out of these accounts, did they inquired Attorney Gath P. Freeman, Richmond, one of Kennedy's counsel. "No," replied Stephens. Previously Freeman had protested against the state's questioning into the condition of Citizens banks prior to its "We have drifted far afield," Freeman stated. "The question of whether Citizens bank was solvent or insolvent has nothing to do with the case at issue, which is a charge against William 2. Kennedy that he embezzled, an agent, $2,387 belonging to Mrs. Minnie Fields.' Judge Roscoe C. O'Byrne overruled the defense objection. Stephens told what he knew about the attempt to affect a reorganization of Citizens bank on the day it was closed by Thomas Barr, deputy state banking who was summoned to Liberty, the witness said, by Vice President Mueller of Fletcher-American bank, Indianapolis, the correspondent bank for Citizens bank. Mueller had come to Liberty the day before the closing. Stephens testified Citizens bank was indebted to Fletcher-American bank approximately $52,000, a liability which had not been reported to the state banking department. he said. He said it was not his duty to convey such information to the bank examiner. This indebtedness was listed only in the "little black book,' according to the witness, and its existence unknown to the state banking officials until after the bank had suspended operations. After Mueller arrived in Liberty he with members of the Kennedy family regarding the affairs of the bank, Stephens said. Mueller, to Stephens, said his bank would make no further loans to Citizens bank unless a reorganization could be affected. He then notified the banking department of the condition of Citizens bank and Deputy Commissioner Barr arrived in Liberty, Oct. 29, the day after the conference. According to Stephens, Barr said he would consider permitting the reorganization of Citizens bank with capital stock of not less than $25,000 and reserve of $5,000 but indicated the reorganization would have to be effected that day. When those who undertook the reorganization, including President William Morris and Cashier Charles Johnson of the only other Liberty banking institution, the Union County National bank, were only successful in obtaining stock subscriptions totalling $17,000 Barr instructed Mrs. Kennedy to lock up the bank and post notice of its closing by order the state banking departmen This occurred about o'clock in the afternoon without previous indication on the part of Barr, the witness said, that he contemplated such action. Stephens said Mueller and Barr were not shown the "little black book" but were informed of its contents. which the government is helping finance individuals, provides for 68 new ships, he said. A clause in the building contract enables the government to take over the ships in time of national emergency Along with the growth of the privately owned American merchant marine. Mr. O'Connor said, "we are witnessing the gradual retirement of the government from the field of ship operations." Out of 38 lines operated few years ago by the shipping board, only 10 now remain unsold, with a prospect that within the next year that number will be reduced to five lines, he said. "It is interesting to observe that our rivals are losing no opportunity to criticize us for enlarging our commercial fleet at a time when world shipping is experiencing decided slump,' Mr. O'Connor continued. "We believe, however, that the depression is merely temporary, and we have no intention whatever of permitting a passing condition to retard a movement which is prompted by considerations of national welfare and which has been so long in gathering momentum. "When international trade conditions improve-and some observers claim that there are signs of improvement on the horizonwill again come into its own. will then be matter for congratulation -as once more note our mounting foreign trade-that we allowed nothing to interfere with this modest and wholly reasonable expansion of our overseas merchant fleet."

15. October 27, 1930 The Richmond Item Richmond, IN
Article from The Richmond Item, October 27, 1930

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MORE "SPECIAL" (Continued From Page One) had shrunk to than $2,000, revealed by the ances of the three accounts at that time. "No one connected with the bank ever anything of these counts, did inquired Attorney Gath Freeman, one Kennedy's replied Stephens. Previously Freeman had protested against state's questioning into the condition of Citizens banks prior to its closing "We have drifted far afield," Freeman stated. question of whethCitizens bank was solvent or insolvent has nothing do with the case issue, charge against Kennedy that agent, $2,387 belonging Minnie Fields.' Judge Roscoe O'Byrne overthe defense objection. Stephens told what he knew about the attempt affect reorganization of Citizens bank the day was closed by Thomas Barr, deputy state banking commissioner, was summoned Liberty, the witness said, by Vice President Mueller of bank, Indianapolis, the correspondent bank for Citizens bank. Mueller had come to Liberty the day before the closing. Stephens testified Citizens bank was Indebted to bank $52,000, which had not been reported he said. He said was not his such information to the examiner This listed only in the "little black according witness, and its existence unknown to the state banking officials until after the bank had suspended operations. After Mueller arrived in Liberty conferred with members of the Kennedy family regarding the affairs the bank, Stephens said. Mueller, according Stephens, said his would make no further loans Citizens unless organization could be affected. He notified the department of the Citizens bank and Deputy Barr Liberty, Oct. 29, the day after the conference. Stephens, Barr said he would permitting the reorganization of Citizens bank with capital stock not less than $25,000 and reserve $5,000 but indicated the reorganization would have effected day. When those undertook the reorganization, including President William Morris and Cashier Charles Johnson of the only other Liberty banking institution, the Union County National bank, were only successful in obtainstock subscriptions totalling 000 Barr instructed Mrs. Kennedy to lock up the bank and post notice its closing by order the state This occurred about o'clock the afternoon without previous indication on the of Barr, the witness said, that such Stephens said Mueller and Barr were shown the "little black book" were of its contents. is probable that Mrs. Kenndy one of the first witnesses called the stand when the trial resumed Monday mornhas not been ascertained whether Kennedy will be sent to the stand by his counsel.

16. November 15, 1930 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, November 15, 1930

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CLOSED BANK'S RECEIVER MAY PAY $50,000 Dividend Likely at Liberty as Former Cashier Faces Charges. Ball Times Special LIBERTY, Ind., Nov. 15.-Depositors of the closed Citizens bank here may receive $50,000, now in the hands of Elmer F. Boscert, receiver, within the next few days, representing between 10 and 15 per cent of the total of claims. In the meantime, Union county prosecuting authorities are preparing to push charges of em-bezzlement against William F. Kennedy, former cashier of the bank. Recently a circuit court jury disagreed at his trial on a charge of appropriating $2,300 left with him at the bank by Mrs. Minnie Fields for purchase of bonds. The indictment on which Kennedy was tried alleged he took the money for his own use, but the new charge includes, in addition to Kennedy, as recipients, Adelaide K. Dubois, Emagetta K. Bonnell, Samuel Lambert and Flora Kennedy, who constitute the J. F. Kennedy Company, which operated the bank. Six counts make up the indictment. In one It is alleged that at the time Kennedy took the money from Mrs. Fields the bank was insolvent and each of the persons named as recipients were insolvent. The trial cost Union county $4,000, including $2,000 for payment of speCall prosecutors.

17. January 1, 1931 The Dearborn County Register Lawrenceburg, IN
Article from The Dearborn County Register, January 1, 1931

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Items of OSGOOD LIONS CHARTER The newly organized Lions Club of Osgood held their charter night gram Tuesday evening, Dec. 16, in the school auditorium. About 125 guests attended. came from Hope, Paul, North Vernon, Seymour and Bloomfield. prize for the largest visiting by North Vernon. AT CLIFTY FALLS Clifty Falls State Park was visited summer by persons, cording to the report of Doland, custodian grounds. The tendance figures for the past year, taken from April to November show only slight difference from those of the year. During the winter months Mr. Doland expects repair and maintenance he states. program, COLE RIPLEY COUNTY PEOPLE Two former residents of Ripley have appointed to coutny tions the State Department of Publice Instruction by Geo. Cole, state superintendent. Miss Fay Terrell will work in the license ment and Charles R. Hertenstein, former Ripley County Superintendent of schools, will act as state auditor the department. PRISON TERMS Ripley circuit court recently sentenced four men to prison terms. Jeffries, who was arrested in charged with robbing the Sunman bank, plead guilty ten sentence the given year City prison. Clarence SnyMichigan to receiving stolen plead guilty and drew from one to five years City. Clifton from three years the for second dematory burglary. Beard gree to five at Michyears for possession still. City The Saylor brothers staged of robberies, which was among looting of Telles Store at Batesville. GIVEN PREFERENCE in the Citizens' Bank at Depositors who also borrowers Liberty from the bank will receive 100 cents the dollar for their deposits, extent of their notes, according decision of the Indiana Appellate The case question was one court. which the bank receiver sought to from Ray Miles note which Miles the for Miles had deposits of bank. claimed the right to offset one and the other. the Union against Judge O'Byrne ruled cuit court the right offset and Miles against the with the result that appealed case, ruling the lower court There about $10,000 versed. are of notes, held by the receiver, worth affected by this decision. are FIRE BIG LOSS the most destructive farm One of fire losses occur recently in that the Judah county on mile west of Franklin, farm, of last week. Two Monday night destroyed, thirteen barns were head cattle, large quantity ground feed, farming implements hay, articles of value. large and other and number of outstack the efforts of buildings were saved by Fifteen dairy cattle, meighbors. them badly burned, escaped flames, but the rest the from the The loss valuable herd perished. estimated from to covered by insurance. DEDICATED where the citizens of SaThe site raiders in the Civil met Morgan's days was the scene the Washington Historical Society on Sunday, County 21. bronze tablet December the trail marker by the placed Preceeding the ciety held the exercises were monies, Salem Public Library. Judge the Wilson, of Corydon, president Society, was the prinSoutheastern speaker.

18. September 4, 1931 The Richmond Item Richmond, IN
Article from The Richmond Item, September 4, 1931

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First Report Filed By Liberty Bank Receiver Collections Not Being Made Rapidly, Report Shows, As of Bank and Operating Company Are Largely Real Estate By Staff Correspondent LIBERTY, Ind., Sept. report Elmer has filed the Union since his receiver both Citizens' bank Liberty holding shown that the total of this year total leaving balance hand. result of the failure the owned the director of Kennedy last his recently appealed supreme court. first months disagreepart jury. The accused Kennedy irregularities the management affairs of the Bossert states report assets both the bank operating company realty holdings, and because industrial agricultural been make collections rapidly (Continued On Page