Bank of Fountain Run (Fountain Run, KY)

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Kentucky Bank Closes Doors

Glasgow, Ky., July 26.—The Bank of Fountain Run, a state bank doing business in Monroe county, closed its doors yesterday. It is thought that failure to realize on investments caused the embarrassment.

Hugh Grooms was cashier and his brother, Ralph, was assistant. The condition of the bank will not be known for several days.

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DIES ON WAY WEST DANVILLE—George Dunn, who until a few years ago was engaged in the grocery business here, died in a hospital at Cheyenne, Wyo., following an operation, having been taken suddenly ill enroute to California.

QUARANTINE SUSPENDED LOUISVILLE—Lack of funds caused the Board of Public Safety to order complete discontinuance of the quarantine clinic until Sept. 1 and direct the immediate release of seventeen persons under quarantine in the Jefferson county jail.

WOUNDED MAN NOT FOUND COVINGTON—Sheriff Peter Thiel and his deputies scoured the Madison pike and the surrounding country in an effort to find a man seen to fall in the roadway after several shots had been fired and a handkerchief was picked up on the pike covered with blood, but no wounded person could be found.

AUTO LICENSE REVOKED LOUISVILLE—Bernard C. Monical, New Albany, suffered his automobile license revoked by the secretary of state, under the provisions of an act of the 1923 Legislature, which specifies that automobile licenses shall be revoked in cases where persons are convicted or driving a machine while intoxicated.

SCOTS STUDY DRY LAW LOUISVILLE—Four Scotchmen, representing the committee of Scottish churchmen investigating the working of prohibition, will come to Louisville late today and remain until Monday as part of their swing around American cities studying the operation of the Volstead act in this country.

CONTRACTS IN AUGUST FRANKFORT—Contracts for the construction of 20 miles of road, for the reconstruction of 11 miles; for surface treating 85 miles and for the construction of four bridges, calling for an expenditure of approximately $650,000, will be let by the state highway commission at the August meeting.

THRU TUNNEL TO STILL FT. THOMAS—After working several hours with picks and shovels, James Wood and W. C. Huddleston, federal prohibition officers, dug a tunnel under a house near an isolated road three miles east of here, found a 300-gallon still 75 gallons of moonshine whisky and about 50 barrels of mash, arrested two foreigners, unable to speak English, found in the house.

FORMER AGENT CAUGHT LOUISVILLE—R. E. Delozier, former federal prohibition agent at Louisville, under P. Green Miller, chief agent and assistant to General Prohibition Agent J. L. Asher in many raids conducted in Louisville, was arrested by federal agents charged with violation of the prohibition law, it being charged that six and a half gallons of moonshine whisky were found in his automobile.

MUTE IS HELD OVER COVINGTON—When arraigned in Kenton county court on a charge of highway robbery, Ray Livingston, Negro mute, 17, who is alleged to have held up and robbed John Eilers, Sandfordtown grocer, of $15, July 19, denied the charge, using a pad and pencil to testify, but after Eilers and his wife had identified the mute as the bandit who robbed the till in their store and kept them covered with a revolver without saying a word, Judge John B. Read ordered Livingston to be held for grand jury action.

HUGE GIRDER FALLS LOUISVILLE—An iron girder, weighing several tons, came loose from its fastenings on the fifth floor of the new Elks' building, under construction at Third and Chestnut streets, and crashed thru a scaffold on the first floor, and Charles Wilson, 40, suffered a fractured left leg, a crushed hip and body bruises when he was knocked from his platform and fell thirty feet.

STATE BANK CLOSED FOUNTAIN RUN—The Bank of Fountain Run, a state institution here, closed its doors, directors placing the institution in the hands of the state banking department because of lack of reserves, but all depositors and stockholders will be paid in full if the papers of the bank prove worthy, said W. W. Peavyhouse.

FIERY CROSS BURNED COVINGTON—After 10,000 catholics of Covington and Cincinnati had wound thru the streets of Covington with lighted candles to commemorate the closing of the nine-day novena at St. Ann church, and thronged before the out door pulpit in front of the church, a huge fiery cross suddenly burst into flame on Forest hill, near the church, and when the resulting stir subsided Rev. Father Thomas J. McCafferty who occupied the outdoor pulpit launched into a defense of the Catholic church from the attacks of the Ku Klux Klan.

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State Bank Closes Doors

Fountain Run, Ky., July 27.—The bank of Fountain Run, a state institution here, closed its doors. Directors placed the institution in the hands of the state banking department yesterday, W. W. Peavyhouse, deputy state banking commissioner, said.

The plight of the Monroe county institution is due to lack of reserves, Mr. Peavyhouse said.

All depositors and stockholders will be paid in full if the papers of the bank prove worthy, said Mr. Peavyhouse, who added that it is the opinion of the bank's officers that their loans will prove good.

The failure of the institution seems not to be due to any serious situation in its affairs, but merely to the fact that in making loans it over-extended itself and as a result there is not enough surplus money on hand to run the business.

The bank is rated at a capitalization of $30,000, surplus of $6,000 and deposits of $130,000.

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BANK CLOSES ITS DOORS

Plight Said To Be Caused by Reserve Lack

Special to The Post. FOUNTAIN RUN, KY., July 30.—Bank of Fountain Run, a state institution doing business at this place, closed its doors Thursday.

Directors placed the institution in the hands of the State Banking Department. W. W. Peavyhouse, deputy state banking commissioner, said the plight of the institution is due to a lack of reserves. All depositors and stockholders will be paid in full if the paper of the bank proves worthy, Peavyhouse declared. It was overextended by loans.

The bank rates a capitalization of $30,000, surplus of $6000 and deposits of $130,000.

Edward Grooms is president; J. M. Hughes, vice president, and W. C. Landrum is assistant cashier.

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Directors Close Bank of Ft. Run

State Bank Examiner Vance Checking up Transactions of Institution

The Bank of Fountain Run was closed one day last week, by Messrs. Ed Grooms of Fountain Run, President, and J. H. Harlin of this place, these two gentlemen owning about three-fourths of the stock in the bank. The bank had a capital of $30,000, with $5,000 surplus. Excessive loans to farmers who are unable to realize on their property is given as the cause, and it is believed that enough of the assets are secured to ultimately pay out, so that the depositors will not likely lose anything. Messrs. W. W. Peavyhouse, Deputy Bank Commissioner, Frankfort; Leslie Vance, Greensburg, State Bank Examiner, and Wm. Cotton of Louisville, an expert accountant, were all through here Monday, on their way to Fountain Run, to take charge of the affairs of the bank. This bank was established 22 years ago, by J. H. Harlin and his father, the late Mr. G. W. Harlin, and had a remarkable successful career, until the reconstruction period following the war, unfavorably affected its affairs. — Glasgow Republican.

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DEFUNCT BANK'S BOOKS MOVED TO GLASGOW

Depositors Threaten Examiners, Demanding Their Money at Fountain Run

GLASGOW, Ky., Sept. 15.—The books of the Bank of Fountain Run, Monroe county, the failure of which several weeks ago was followed by the arrest of H. L. Grooms, cashier, have been brought to Glasgow where the remainder of the work of winding up the bank's affairs will be undertaken.

While John Harlin, who has been succeeded as special deputy banking commissioner by Ed Smith, local banker and attorney, would not discuss details, it was said here that there had been considerable difficulty in handling the defunct bank's business at Fountain Run.

Depositors, it was said, came in from the more remote sections of Monroe county and demanded that their money be returned. Some, it was stated, showed a threatening attitude and were armed. Difficulties of this nature caused the removal. Mr. Harlin said he resigned because other business occupied his attention and he did not care to continue with the bank. The bank failed for between $25,000 and $30,000, it was said.

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BANK CASHIER IS UP ON 20 COUNTS

Defunct Bank of Fountain Run Unlikely To Pay More Than 25 Percent.

Frankfort, Ky., April 15 (AP)—The commonwealth at Tompkinsville is trying H. L. Groomes, cashier of the Fountain Run, Monroe county, bank on twenty or more counts on alleged defalcations, W. W. Peavyhouse deputy banking commissioner, reported today, before departure to testify in the case.

His father, president of the bank, is also indicted on charges of making false reports to the banking commissioners and receiving deposits after he knew the bank was insolvent, he said.

The bank closed last July after having failed for $50,000. Under direction of Commissioner Peavyhouse, Cotton and Eskew, Louisville accountants, made an audit of the bank and found irregularities and defalcation. The jury last week stood ten to two for conviction, Mr. Peavyhouse said.

E. H. Smith, Glasgow, is the receiver in charge of the bank in liquidation.

"It is feared that the bank will not pay more than 25 per cent to depositors," Mr. Peavyhouse said.

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Bank Conditions Excellent in State

STATE BANKING COMMISSION'S REPORT REVEALS INTERESTING CONDITIONS AND FIGURES.

By The Associated Press.

FRANKFORT, Ky., July 28.—The total resources in the 474 banks, trust companies and combined banks and trust companies in Kentucky have increased about three million dollars within the last twelve months, H. H. Shanks, of the state banking commission, declared today. He filed a condensed statement as of June 30, 1924, the end of the last fiscal year, with Gov. Fields.

The statement showed the resources total $260,394,024.52.

"There are $150,000,000 more in resources than in 1912," he said, "and forty million dollars more than double within the last twelve years.

"This is due to the fact that there is more money in circulation. Products bring more money. The natural development of business has shown a consistent and steady growth. The increased valuation of farms and other products also have brought about the increased resources."

Since Dec. 31, 1922, the total resources of building and loan associations of Kentucky have increased nine million dollars," he said.

"Within the last fiscal year, this nine million dollar increase represents a difference in the total resources of 46 and one-half million dollars at the rate of the last call report, and 55 million dollars resources at present," he said

For the first time in the history of the state banking commission, he said, the time and saving deposits are more than the demand deposits.

The time and saving deposits total $100,445,720.09 while the demand deposits total 96,887,568.57.

From the fiscal period, June 30, 1923, to June 30, 1924, there were six banks chartered, he added: The Peoples State Bank, at Campbellsville; Bankers Trust Company, Louisville; Bank of Royalton, Royalton; Letcher State Bank, Whitesburg; Commercial Deposit Bank, Winchester; and the Farmers Bank and Trust Company, at St. Mathews.

The following seven banks in that period ceased their corporate existence:

Bowling Green, Liberty Trust company, dissolved; Casey Creek, Farmers' Bank, dissolved; Hardyville, Deposit Bank, closed by board of directors; Paducah, Ohio Valley Trust Company, closed by directors. Glendale Banking Company, closed; Fountain Run, Bank of Fountain Run, closed by board of directors; Tolu, Ky., Farmers & Merchants Bank, bank and records destroyed by fire.

There are approximately 850,000 checking and saving accounts in the 474 banks, Mr. Shanks said.

Ten new building and loan associations in Kentucky have been granted charters in the last fiscal year, he said, two in Louisville,