9349. Reed City National Bank (Reed City, MI)

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
12474
Charter Number
12474
Start Date
May 1, 1929*
Location
Reed City, Michigan (43.875, -85.510)

Metadata

Model
gpt-5-mini
Short Digest
65a9f20b

Response Measures

None

Receivership Details

Depositor recovery rate
33.6%
Date receivership started
1929-05-02
Date receivership terminated
1935-04-13
OCC cause of failure
Governance
Share of assets assessed as good
73.8%
Share of assets assessed as doubtful
23.2%
Share of assets assessed as worthless
3.0%

Description

The Reed City National Bank was closed in May 1929 and placed in receivership. Articles describe receiver changes (J. Garver Bly replaced by Phillip Holman, appointment reported May 31, 1930) and later criminal charges against the former receiver for shortages/embezzlement. No contemporary report of a depositor run or reopening is present; the bank remained defunct and in receivership.

Events (5)

1. December 18, 1923 Chartered
Source
historical_nic
2. May 1, 1929* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank was closed (failure) in May 1929; later reports indicate shortages and misconduct by the receiver, suggesting bank-specific insolvency/irregularities.
Newspaper Excerpt
receiver for the Reed City National bank, which was closed in May, 1929.
Source
newspapers
3. May 2, 1929 Receivership
Source
historical_nic
4. May 31, 1930 Receivership
Newspaper Excerpt
Phillp Holman, of New Cumberland, W. Va., has been appointed by the comptroller of currency at Washington to succeed J. Garver Bly ... as receiver for the Reed City National bank, which was closed in May, 1929.
Source
newspapers
5. November 7, 1930 Other
Newspaper Excerpt
J. Garver Bly ... former receiver of the Reed City National bank, was indicted ... on two counts for abstraction and embezzlement of funds while handling the two receiverships.
Source
newspapers

Newspaper Articles (10)

Article from The Ludington Daily News, June 1, 1930

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Article Text

HART'S BABY TROUT GO TO PENTWATER, BALDWIN HART. Mich., May 31.-Fingerling brook trout at the Hart fish hatchery maintained by the state department of conservation are being moved to rearing ponds. Most of the two-inch minnows already have been taken to the feeding stations on the north branch of the Pentwater river and Baldwin, and 150,000 are now being moved to the south branch of the White river near White Cloud where the department maintains one rearing pond. There are still about 75,000 baby trout left in the troughs at the Hart hatchery and the disposition of these has not yet been decided. For the first time in the history of the local plant no trout will be kept here this summer in the ponds in Brooks creek and 'it is probable that the hatchery will be closed entirely, according to Erwin Moody, superintendent of the plant. Names New Bank Receiver. REED CITY, Mich., May 31 (P)-Phillp Holman, of New Cumberland, W. Va., has been appointed by the comptroller of currency at Washington to succeed J. Garver Bly, of Allegan, as receiver for the Reed City National bank, which was closed in May, 1929. Mr. Bly resigned recently after his automobile had been seized on a writ; of attachment to satisfy a debt he was said to have owed to the bank.


Article from The Flint Journal, June 13, 1930

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Article Text

BANK RECEIVER ADMITS ALLEGAN FUND SHORTAG Allegan. Mich., June Garver Bly, former receivfor the First National bank of Allegan and the Reed City National bank, who was arraigned Wednesday in Kalamazoo on a charge of irregularity in handling bank funds, admitted yesterday there is shortage in the Allegan the time he 60 At same that the bank would not suffer because bonding company will cover the loss. the A1"There shortage in legan account which will be made good as soon as the amount is determined his statement said. "Depositors of the defunct bank will lose am bonded in the amount of $75,000." Bly was ousted recently as receiver for both banks.


Article from Lansing State Journal, June 13, 1930

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Article Text

BANK RECEIVER ADMITS SHORTAGE IN ACCOUNTS Bonding Company Will Cover At Allegan Institution, Man Explains Court June 13 Garver former receiver for the First tional bank of Allegan and the Reed City National raigned Kalamazoo irregularity in handling the Allegan bank. same he promised not bondcover the Allemade the the defunct will bonded amount of Bly ousted recently receiver both banks.


Article from The Grand Rapids Press, June 14, 1930

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Article Text

FORMER BANK RECEIVER IS FACING BAD CHECK COUNT Reed City, June M. Fleischhauer issued a warrant Friday for J. Garvey Bly, former receiver of the Reed City National bank, charging him with passing bad check for $20 June The complaint by Alfred Stevens, manager of Hotel Osceola here. Bly, who was receiver also of the First National Bank of Allegan and who was replaced in both positions, was arraigned Wednesday at Kalamazoo before United States Commissioner Forrest D. Simmons charged with Allegan. June Garvey Bly former receiver of the First National bank of Allegan, bonds of 000 and left Friday for The signed by Mayor Joseph F. Mosier of A1legan and Marinus VanderMaas, cashier of the Citizens State Savings bank, Plainwell.


Article from Jackson Citizen Patriot, June 14, 1930

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Article Text

ACCUSED BANK RECEIVER FACES SECOND WARRANT Reed City, Mich., June for the Reed City National Bank and the First National Bank of legan, facing charges bank day was second warrant. issuance check. complaint signed Alfred Stevens, has the warrant Bly, under $5,000 left Michigan and now visiting in Indianapolis


Article from The Flint Journal, June 14, 1930

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Article Text

FORMER BANK RECEIVER FACES NEW CHARGES Reed June Garver former for the Reed City National bank and National bank of already charges handling bank funds, yesterday was in this of worthless check. complaint signed by Alfred manager hotel has been the under $5,000 bonds, has Michigan now is visiting


Article from Battle Creek Moon-Journal, November 7, 1930

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Article Text

EX BANK RECEIVER INDICTED BY COURT Grand Rapids, Nov. 7.-J. Garver Bly, of Indianapolis, former receiver of the First National Bank of Allegan and the Reed City Nation al bank. was indicted in United States district court here Thursday on two counts for abstraction and embezzlement of funds while handling the two receiverships. No specified amounts wore set Bly was a bank examiner for five years before being appointed re. ceiver of the Allegan bank in 1927.


Article from The Muskegon Chronicle, November 7, 1930

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Article Text

BANK RECEIVER NAMED IN THREE TRUE BILLS Grand Rapids, Nov. 7-(P)-Three true bills, embracing 14 charges of embezzlement, abstraction, and misapplication of funds, were returned Thursday by the federal grand jury in true bill against G. Garver Bly, former for the defunct First National bank of Allegan and the Reed City National bank. An aggregate of $10,000 alleged to be involved in the counts.


Article from The Herald-Palladium, November 7, 1930

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Article Text

FORMER ALLEGAN BANK RECEIVER INDICTED BY U. S. GRAND RAPIDS, Nov. 7-J. Garver Bay of Indianapolis, former receiver for the First National bank of Allegan and for the Reed City National bank, was indicted in two true bills on charges of abstraction and embezzlement under the national bank act in the United States district court here yesterday. The bills named no definite amount embezzled. but allege the violations of the act had occurred at various times. Bly was bank examiner for 5 years previous to being appointed receiver for the Allegan bank in 1927.


Article from The Flint Journal, November 12, 1930

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Article Text

BANK RECEIVER GUILTY IN EMBEZZLING CHARGE Grand Rapids, Nov. (By Garver Bly. former refor the First National bank of Allegan and the Reed City National bank. pleaded guilty yesterday in federal court to several of 14 counts of embezzlement, abstraction and misapplication of funds. Other counts are to be dismissed. Bly, who previously had pleaded not guilty to all the counts, will be sentenced Thursday.