Martinsville Trust Company (Martinsville, IN)

Episode Information

Episode UID
71098871590
Episode Type
Suspension โ†’ Closure
Bank Type
trust
Bank ID
7109887 routing
Routing Number
71-0988
Start Date
June 23, 1932
Location
Martinsville, Indiana (39.428, -86.428)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
38b342d818c8ffb8

Response Measures

None

Description

Bank closed and placed in receivership after misapplication of funds by officers; officials later convicted.

Events (4)

1. June 23, 1932 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Misapplication of funds and insolvency tied to officers; deposits accepted while bank insolvent (misapplied funds ~June 23).
Newspaper Excerpt
deposit was accepted from him by the company on Saturday before the closing of the institution
Source
newspapers
2. August 25, 1932 Other
Newspaper Excerpt
the Martinsville Trust Company, also in receivership, were filed in federal court this week.
Source
newspapers
3. February 4, 1933 Other
Newspaper Excerpt
The trust company also is in the hands of receivers. Karl I. Nutter, president of the Spencer bank and the Martinsville Trust Company, was sentenced to five years
Source
newspapers
4. April 26, 1934 Other
Newspaper Excerpt
After closing of the bank last year, Avery was convicted of forgery and sentenced to two to fourteen years.
Source
newspapers

Newspaper Articles (5)

Article from The Indianapolis Times, August 25, 1932

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Article Text

BANKERS ARRESTED Misappliance of Funds Is U. S. Court Charge. Arrested on charges of misapplying funds of the defunct Spencer National bank, Owen county, Karl I. Nutter, Martinsville, former bank president, and Frank Wright, 2131 College avenue, former cashier, were held to the federal grand jury on Wednesday. The bankers were charged in warrants with "misapplying" funds to the amount of $3,500 on or about June 23. Federal accountants are studying records of the closed bank in preparation for investigation at the next grand jury session, according to George R. Jeffrey, district attorney. Suits to have Nutter and four other stockholedrs of the Spencer bank and the Martinsville Trust Company, also in receivership, declared involuntary bankrupts, were filed in federal court this week. The suits, filed by officials of various taxing units of Morgan and Owen counties, are seeking to recover on bonds given by the five men to guarantee public funds in the two banks. Nutter and Wright were released by Fae W. Patrilck, United States commissioner, on $2,500 bond each.


Article Text

MAKES STATEMENT H. K. Smith, of Hall, better known as "Keller" Smith, called at this office Friday and said that he desired make statement relative to the use of his name in the affidavit against certain officers of the Martinaville Trust Company and on which they were arrested. His name is given as prosecuting witness and it was aver red that a deposit was accepted from him by the company on Saturday be fore the closing of the institution, the officials knowing at that time that it was insolvent. Mr. Smith said he sired to state that he made no de


Article from The Indianapolis Times, February 4, 1933

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Article Text

BANK OFFICIALS ARE GIVEN U. S. PRISON TERMS 'Think of Depositors,' Says Baltzell in Sentencing Three State Men. Replying to pleas for leniency with the remark, "Think of the depositors," Federal Judge Robert C. Baltzell Friday sentenced three officials of the defunct Spencer (Ind.) National bank to a total of nine years and a day for violation of the national bank act. Karl I. Nutter, president of the Spencer bank and the Martinsville Trust Company, was sentenced to five years in Leavenworth prison. The trust company also is in the hands of receivers. Frank Wright, 3129 College avenue, cashier, was sentenced to the federal reformatory at Chillicothe, O., for three years. The bank's vice-president, Temple G. Pierson, was sentenced to a year and a day in Leavenworth prison. The three officials were among 170 men and women who faced Baltzell, charged with bootlegging, narcotic peddling, counterfeiting and kidnaping. Scored by Judge Nutter, who claimed he lost $200,000 in the closing of the two institutions, was scored by the judge when he said he did not know the condition of the Spencer bank at the time the misappropriation of funds took place. Nutter said he asked Wright for funds from the Spencer bank to bolster the crumbling Martinsville institution, but that he had no idea he was endangering the bank's security. "You were a bank president for twenty years," said Baltzell. "You should have found out in that time that it was your duty to know the bank's condition." When Homer Elliott, attorney for Nutter, pointed out that none of the officials had taken money for their own use, Baltzell said, "Does that mean anything to the depositors who now are living in or near poverty because of the money they lost in the bank?" Gets Slight Sentence Violation of the new law against use of the mails for extortion brought a sentence of a year and a day for Myr. Myers of Greenwood. The law was passed by congress following the Lindbergh kidnaping case last year. Myers sent a letter to a Greenwood business man threatening to kidnap his baby if he did not deliver $3,000. Myers was captured when he tried to collect the money. "I am passing a light sentence on this man," said Baltzell. "But if any gangsters try it, I will give them the limit." The law calls for "imprisonment of not more than fifteen years." Many Others Sentenced Those sentenced in the Indianapolis division on liquor charges were: Harry McCormack, four months; Joe Marino, six months; Joseph Dumato, $150 fine and ninety days; Walter Ewing, Negro, six months; Frank Beard, four months; William Jones, one day; Albert Shireman, four months; Charles Fosso, four months, and James Presuttio, four months. Sentenced on other charges were: Charles Truckey of Stendal, passing counterfeit money order and possession of counterfeiting equipment, five years; Miss Marguerite Pappas, Greenville, O., passing countereit money orders, year and a day; Raymond Enneking, Brooklyn, N. Y., tampering with mail box, two years; Arthur Dillingham, forging adjusted service certificate and counterfeiting, five years on each count, to run concurrently; Lauren H. Turk, white slavery, five years; William Ball and Helen- Sullivan forging,


Article Text

CONVICTED BANKER'S PAROLE PLEA DENIED Avery Is Refused Clemency by State Commission. Petition for a state prison parole for Edward L. Avery, former secretary of the Martinsville Trust Company, was denied today by the state clemency commission at its final hearing. After closing of the bank last year, Avery was convicted of forgery and sentenced to two to fourteen years. Petition for parole was granted in the case of Emmett Price, sentenced in Marion criminal court to three to ten years at the state reformatory on a burglary charge. Ray Bryant, serving a ten-year term for robbery imposed in 1930 in Marion criminal court, was refused parole. In all, the commission granted two parole petitions, continued two and denied fourteen.


Article Text

Connelly Visits Feeney E. J. Connelly, chief of department of justice agents assigned to this district, called on Al G. Feeney, state safety director, today, presumably to discuss closer cooperation between state and federal operatives in the hunt for John Dillinger. Mr. Connelly's visit came on the heels of Michigan state police charges today that the Dillinger hunt has been bungled by federal operatives. A petition from Mercer, Wis., whence Dillinger and his henchmen escaped Sunday, has asked removal of Melvin Purvis, chief of the Chicago federal office. Mr. Feeney said he could not discuss the conference this morning, except to say that he was assured by the federal agents' head that there is no nonco-operation complaint against the Indiana state police. Avery Is Refused Clemency by State Commission. Petition for a state prison parole for Edward L. Avery, former secretary of the Martinsville Trust Company, was denied today by the state clemency commission at its final hearing. After closing of the bank last year, Avery was convicted of forgery and sentenced to two to fourteen years. Petition for parole was granted in the case of Emmett Price, sentenced in Marion criminal court to three to ten years at the state reformatory on a burglary charge.