First State Bank (Owensville, IN)

Episode Information

Episode UID
71055971586
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7105597 routing
Routing Number
71-0559
Start Date
February 8, 1932
Location
Owensville, Indiana (38.272, -87.688)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
90c355291748d040

Response Measures

None

Description

Receiver appointed and litigation indicates the bank remained closed and assets are in receivership.

Events (3)
1. February 8, 1932 Receivership
Newspaper Excerpt
Another application for a bank receiver has been filed in circuit court... application is state commissioner of Indiana against the First State bank of Owensville. A hearing is set for February 19 in the circuit courtroom.
Source
newspapers
2. February 19, 1932 Suspension
Cause
Government Action
Cause Details
State bank commissioner filed suit seeking appointment of a receiver; court appointed Paul Brazelton as receiver.
Newspaper Excerpt
Paul Brazelton this afternoon appointed by Judge Claude Smith in circuit court receiver for the First State bank of Owensville.
Source
newspapers
3. June 30, 1932 Other
Newspaper Excerpt
Case of Paul Braselton, as receiver for the First State bank of Owensville against Forman E. Knowles as receiver for the Owensville State bank... action seeking an accounting of assets.
Source
newspapers

Newspaper Articles (4)
1. February 8, 1932 Princeton Daily Clarion Princeton, IN
Article from Princeton Daily Clarion, February 8, 1932

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Article Text

FIRST STATE BANK RECEIVER ASKED Another application for a bank receiver has been filed in circuit court. The title of the application is state commissioner of Indiana. against the First State bank of Owensville. A hearing is set for February 19 in the circuit courtroom. This action is supplementary to a suit filed some time ago in which a receiver was asked for the Owensville State bank and Old State bank. For man E. Knowles was named receiver. The Owensville State bank was the result of merger of two banks, the Old State and the First State banks.

2. February 19, 1932 Princeton Daily Clarion Princeton, IN
Article from Princeton Daily Clarion, February 19, 1932

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Article Text

Paul Brazelton this afternoon appointed by Judge Claude Smith in circuit court receiver for the First State bank of Owensville. The action taken by the court in the cently filed entitled State of Indiana on the Relation of Luther Symons, bank commissioner of state of Indiana against the First State bank an action the apointment of receiver. This afternoon Mr. Symons testified briefly on the stand to the bank. On question by the court, Mr. Symons advised that separate receiver be appointed rather than naming Forman Knowles, receiver of the Old State bank to that place. Judge bond $10,000 and fixed his fee month and five cent of the gross of the farms of the bank. The court asked Mr. Brazelton to secure The court against cautioned Mr. Knowles not to allow any of the offiof the bank access to the bank building and stated that the officers have no right in the bank.

3. May 19, 1932 Princeton Daily Clarion Princeton, IN
Article from Princeton Daily Clarion, May 19, 1932

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Article Text

TAKING VENUE IN ANOTHER BANK RECEIVER ACTION Change of venue from Special Judge John K. Chappell, of Petersburg, in the suit of Paul Brazelton. receiver for the First State bank of Owensville against Forman Knowles, receiver for the Owensville State bank. an action to "unscramble" bank assets. was taken this morning by Attorney T. Morton McDonald for Receiver Brazelton. Judge Claude A. Smith named Henry Kister, Hovey C. Kirk and 8. L. Vandeveer from whom to strike. The parLies are to strike by Monday morning.

4. June 30, 1932 Princeton Daily Clarion Princeton, IN
Article from Princeton Daily Clarion, June 30, 1932

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Article Text

BANK RECEIVER ACTION IS AGAIN IN CIRCUIT COURT ARGUMENTS HEARD IN LITIGATION GROWING OUT OF ATTEMPT TO SEPARATE ASSETS OF ONE OWENSVILLE BANK FROM THOSE OF ANOTHER The case of Paul Braselton, as re- ceiver for the First State bank of Owensville against Forman E. Knowles as receiver for the Owensville State bank: Warrick Johnson, Albert W. Thompson and James R. Montgomery as trustees for shareholders of the Owensville State bank: representatives of stockholders of the Old State bank: certificates of deposit in the Old State bank and depositors of the same bank. an action seeking an accounting of assets, came up again in circuit court today, before Special Judge S. L. Vandeveer. The case has been pending for some time and on June 25 the Gibson county board of finance was granted permission to be made party defendant. Several Issues Involved The case is considerably involved However, the principal point sought by the plaintiff to have assets of the First State bank at the time the two banks joined, separated from the combined assets and restored to the First State bank. This is sought under the theory that there was no bona fide merger but that the Old State at tempted to buy the First State bank. The resulting bank. known as the Ow ensville State bank, closed its doors last December. Under the merger theory the original assets of the First State bank would be assets of the Owensville State bank and could be levied against by the receiver of the closed institution. Arguments were heard today on a demurrer the complaint. Both sides seemed to admit that there was no law providing for merger of the two state banks. The defense, however, held that whether the result ing bank. which operated under the charter of the Old State bank was "de jure," "de facto" or simply a partnership. it did business as bank none the less and that all who entered into its operation were equally bound.