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spent South Bend, Feb. for her receivership petition state bank at Lakethe Lakeville filed today in the Ind., was circuit court by Luther St. Joseph Symons, state banking commisThe was set for sioner. hearing Leo next Wednesday. of the bank was result Closing mutual arrangement by the state graph officials the bank and the banking department.
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Pattee to Hold Hearing on State's Petition Next Wednesday
Hearing on the appointment of a receiver for the Lakeville State bank, which was closed Monday on orders of the state banking commissioner, will be held before Judge Cyrus E. Pattee in circuit court next Wednesday morning at 9:30 o'clock. Petition for the appointment of a receiver was fileti with Judge Pattee to-day by Luther F. Symons, state banking commissioner, and the date for the hearing agreed upon. According to the the bank is insolvent and a receiver is needed to protect the interests of depositors and creditors After the closing of the bank it was announced by J. state examiner, that the closing was the result of cooperation between officials of the institution and the state banking artment The bank Mr Sanders said, notified his department of the existence of low cash reserve situation and after a consultation it was agreed that it would be expedient conduct an audit of the books. to Pending the result of the audit the bank would remain closed, he said. To-day's petition for a receiver revealed, however, that the audit had shown that the bank has an unsound financial structure.
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FARMERS TO GET ELEV to Turn Over Assets Owners Agree To Creditors. In an effort to save their creditors from as much loss as possible from the failure of the Wolff & in this grain elevator, county, Lee Wolff and Clem Schafer, the partners, were scheduled to tender their holdings and other assets to their creditors at a meeting this afternoon in the elevator, John G. Yeagley, of South Bend, attorney for Mr. Wolff, stated. The meeting. expected to be attended by about 75 farmers who have sustained losses through the failure of the business, was to be for the purof the creditors the depose giving tails of the failure, and tendering them the assets, including the elevator, that they may collectively salvage as much as possible from the collapse of the business. It was indicated that out of the meeting, new stock company made up of the creditors as stockholders might evolve. Mr. Wolff, when the failure was first made known week ago, asserted his belief that the assets of the partnership would probably be sufficient to cancel the losses to creditors. He revealed, in addition, that not only was the insolvent, but that grain stored in the elevator for future sale by farmers, had been sold. Mr. Wolff. until a week ago last Saturday, was cashier of the Lakeville State bank, which was. closed this week by state examiners, and a for which was asked in suit filed this morning in circuit court. Mr. Wolff explained that while he was cashier of the bank, the elevator business was operated by his partner, Mr. Schafer.
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THREE COUNTRY BANKS IN ST. JOSEPH COUNTY CLOSED
South Bend, Ind., Feb. 28.--Three banks in the farming communities of St. Joseph county have closed their doors within the last fortyeight hours and H receivership for another has been asked by the state banking commission. Since Jan. six banks of the county have been closed after n run. The state bank at Tyner closed its doors Wednesday In an effort to protect its depositors after a small run had been started. News of the Tyner closing spread quickly and within an hour after the Farmers State bank of Walkerton had opened for business a run on deposits forced Its closing. The bank will not reopen until compleof an audit. The latest closing occurred late
Thursday afternoon when directors of the Farmers State bank at Lapaz called In Thomas Barr, state inspector. Uneasiness among depositors and generally unsound business conditions were given as the reasons for the closing. The closIng was described as a "precautionary measure." The state bank commission Thursday fileda petion In the St. Joseph Circuit court asking a receivership for the Lakeville State arranged: bank, which closed its doors carlier Music. in the week because of frozen assets. On Jan. 17 the North Liberty State bank was closed because of shrinkage in deposits. The day Music. before the closing of the North Liberty bank the Argos State bank of Argos suspended business. Music.
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South Bend. Ind., Feb. 28. The number of banks which have suspended operations in this vicinity since Jan. was boosted to six. when the Farmers' State Bank, of Walkerton. and the Farmers State Bank. of Lapaz, closed their doors yesterday. The State Bank. of Tyner, suspended business Wednesday after noon after a small run had started. The State Banking Commission yes terday filed a petition in the St. Joseph county court asking receivership for the Lakeville State Bank, which was closed earlier in the week because of frozen assets The North Liberty State Bank was forced to close Jan. 17, because of a shrinkage of deposits. The Argos State Bank, of Argos, suspended operation Jan. 16.
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Swindling Alleged By Times Special SOUTH BEND, Ind., March 3.Lee Eolff and Clem Schaefer face charges here of swindling in connection with operation of a grain elevator at Lakeville. Seventy-five farmers of St. Joseph county are said to have lost several thousand dollars. Wolff until two weeks ago was cashier of Lakeville State bank, for which a receiver has been asked.
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Appointment of a receiver for the Lakeville State bank, which was clos ed 10 days ago on orders of the state banking department, was postponed by Judge Cyrus E. Pattee in circuit court to-day. The postponement was made nec. essary, the court explained, because examiners of the state department have not completed their audit of the institution's books and are not ready to appear in court. Judge Pattee did not set a new date for the Petition for the receivership was filed by Luther F. Symons; state bank. ing who claimed that the bank is insolvent and that a receiver is needed to protect the interests of depositoss and creditors.
The Citizens' Trust & Savings bank of South Bend to-day brought suit in circuit court asking $2,100 from John G. Schurs, receiver for the North Liberty State bank. The South Bend bank is receiver for the Lakeville State bank, which, according to the complaint, holds note from the North Liberty institution dated in July. 1927
After hearing considerable testimony Wednesday, which failed to clear up the mystery of mutual debts between the Lakeville State bank and the North Liberty State bank, Circuit Judge Dan Pyle adjourned the hearing to allow the Citizens Trust & Savings bank of South Bend, receiver for the Lakeville bank, to investigate further the $1 951.37 debt on its books credited against the North Liberty bank. When suit was filed by the receiver for the Lakeville bank against John G. Schurz, receiver for the North Liberty bank. Mr. Schurz filed a cross-complaint against the Lakeville bank receiver for $380.56, which he found owing the North Liberty bank by the Lakeville bank.
DELAY IN COURT TO TIE UP FUNDS
Lakeville Bank Receiver Ready to Distribute 10 Per Cent.
Distribution of funds from another closed bank in St. Joseph county probably will be blocked because of the delay on the part of the Indiana supreme court to rule on the question as to whether public funds are to be considered prefe: ed claims. The Citizens Trust & Savings bank, receiver for the Lakeville State bank, is in a position to make a 10 per cent distribution on all deposits, it was revealed in intervening petitions filed in court today by Trustee Delbert Neddo of Union township and officials of the town of The petitions ask that the court restrain the receiver from making any distribution of funds until the court is set and that both the township and town judgments received recently in circuit court, be paid in full before any other general claims. It was explained that the order was necessary to place the governmental units in a secured position pending the supreme court's action. The bank receiver has on hand approximately $5,000 to distribute to the depositors, who had $50,000, in the institution when closed. The supreme court has been in possession of ppeals from other sections of the state on this question of priority. it was explained today, and fails to render an immediate decision. Many banks throughout the state are affected by the delay, while three banks in St. Joseph county are withholding ready Hearing on the petitions will be held- Saturday at 11:30.
About 85 of the out of per cent dividend checks positors of the defunct Lakeville Levan State bank has dividend two months ago, Rausch, presi- ing dent and the and Citizens' Trust Savings said today. The Citizens' is receiver cated. the closed bank and dividend on order of Circuit Judge ler, Dan Pyle despite legal question on the status public funds in ing closed banks, proposition morrow. awaiting action the state supreme After court. Dividends were paid Rogers, public deposits as on was vidual accounts, last Although the amount of money already paid out amounts 85 banditry, the dividend Joseph about cent the checks will been called Mr. Rausch posting This many checks small he Found explained. possession