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Three of the Bank’s Officials arePlaced Under Arrest by FederalAuthoritiesAmount of the Shortage is So Large That Plans to Salvage the Wreck Prove Unavailing and SettlementWill Proceed Under Receivers.siamoElW ithlt;EVERYBODY STILL TALKING ABOUT THE WRECKEverybody is still talking about tbe failure of the Cory don National Bank and the Farmers’ Savings and Trust Company and speculation is rife as to what will be the final outcome of the big crash. Depositors are anxious to know how much of their money is to be returned to them and estimates are made by knowing ones that range from thirty cents to seventy-five ■ cents onthe dollar.A receiver is to be appointed for tbeFarmers’ Savings and Trust Company by Judge Thomas J. Wilson to-morrow morning but it, is not known when a federal receiver will be appointed for the bank which remains in charge ofposit in the Corydon National Bank when its doors were closed. The bank had given a bond of $180,000 for the security of county funds and this bond is signed by B. S. Applegate, George W. Applegate, A. B. Richert, Ed. O'Connor, M. W. Bean, Frank Self and Thos. S. Jones. Mr. Taylor has deposits in the other banks of the county as follows :Lanesville bank............$34,561.31Palmyra bank.............. 28,364.79Crandall bank ..............22,178.58Corydon Junction bank .....9,442.08The County Treasurer, under the law as construed by the Attorney General and the State Board of Accounts, hascoimeB.deiBainCobothlt;1lt;National Bank Examiner William M. the option of depositing the couutyMorgan.funds up to the amount of $500,000 inMany inquiries have been made by !«*V tank In the county that he mightpersons who have experienced some ; consider the strongest^ safest.uneasiness about bonds and securities placed by them in the bank’s safetydeposit boxes and they are given the assurance that so far as examinationsOther Public Funds.Harrison township had the sum of $10,584.85 on deposit when the bankhave been made all papers have been closed. This is secured by a_ bondfound to be secure.* * * *Bank Officials Under Arrest.Wilson E. Cook, president, and B. S. Applegate and George W. Applegate, vice presidents of the Corydon National Bank, were placed under bond of $20,-000 each by United States Commissioner H. J. Needham at New Albany last Tuesday afternoon, to await the action of the Federal grand jury which will investigate the charges filed against them by National Bank Examiner William M. Morgan that they had violated the federal laws. The affidavits embody the following generalcharges:Wilson E. Cook, Benjamin S. Applegate and George W. Applegate, all officers and employes of the Corydon National Bank of Corydon, Harrison county, Ind., in violation of Section 5209 of the Revised Statutes of the United States, did unlawfully abstractsigned by B. S- Applegate, Geo. W. Applegate, Arthur B. Richert, Ed. O’Connor, Milton W. Bean, Frank Self and Thomas S. Jones. The same bondsmen are sureties for the deposits of the town of Corydon wnrch amounted to between $10*000 and $11,000 according to the statement of W. H. Keller,Sr., the town treasurer.• * * *To Halt Road ImprovementThe Board of Commissioners has given notice that there will be a haltof road construction and improvementin the county on account of the crisis brought on by the bank failure. Bonds in the sum of $13,400 were sold last Saturday to provide funds for the construction of the J. D Pitman road for which the contract had been let These bonds were taken by the Citizens’ Bank of Palmyra. The commissioners made an exception of the S. D. Breeden roadth«19stlt;re:anPhdeanttanfubepccdrriinefor which the people of Scott Town- --------. ship voted at a special election andand willfully misapply moneys, unas i^on(^s for ^jg improvement were sold 3 ^ \ToflAHUland credits of the Corydon National lagt Tuesday ln the 2xim oI ?9250. TheBank of Corydon, Indiana, in sums ag- - - Citizens’ Bank of Palmyra also pur-gregating more than $200,000, and chased these bondSipaying a premiuma nnrYlon illn TBfl k A . , *of five dollars therefcr.within the period named did make numerous false entries in books of said bank and numerous false reports and statements to the Controller of the Treasury and t3 the examiners, for the purpose of deceiving them.”The warrants for the arrest of the* * * *A’To Appoint Receiver forFarmers Savings Trust Co.Upon application of Charles W, Camp, Bank Commissioner of Indiana,1djdefendants were issued last Saturday Thomas J Wilson, sitting inchambers, will appoint a receiver forthe Farmers Savings and Trust Company tommorrow morning.* * * *and were placed in the hands of United States Marshal Mark Storen at Indianapolis. The thTee bank officiate arranged to meet Mr. Storen at New Albany Tuesday when the warrants were served and the bonds filed and accepted. In addition to the large number of persons from Corydon and Harrison county who signed the bonds, many others were present and offered to attach their signatures but Commissioner Needham said the security was an^ple aifc that no more was wanted.* * * *Proposition to Salvage the Bank Falls.An all-night meeting was held at the bank.last Friday night for the purpose of determining what could be done toward saving the bank by putting in fresh capita] and starting anew. The meeting was attended by V. J. Bnlleit,. president of the Lincoln Savings Bank, of Louisville, who with others had proposed to take hold of the matter if It was found that the bank could be salvaged. Others attending the meeting were Mr. Bulleit’s brothers, F. A. and E. S. Bulleit, and E. G. Keller, Maurice Griffin and A B. Richert, all of Corydon. William M. Morgan, National Bank Examiner, was present and assisted in the*work of going over the papers. The situation found by these gentlemen, according to report, was that the amount of bad paper is $500,000 with $100,000 classed as doubtful. The amount or all notesheld is $1,100,000 and of these only $500,000 were classed as gilt-edged securities. These revelations, it was announced, made it impossible to carry out the-plan of reorganizing the bank on the proposed basis or paying the depositors fifty cents on the dollar.We do not mean to give the above statements as to the bank’s condition as actual facts but merely as reports following the examination Friday might0 0 0 0Amount of County Funds In Jeopardy*William Taylor, County Treasurer,Only a Few Things LeftRoscoe Lewis, of New Albany, is reported by the Louisville Times as saying that his father-in-law, George W. Shuck, had lost nearly everything hepossessed in the crash of the Corydon National Bank. The man, Mr. Lewis said, had sold his farm and paid all his debts on the Saturday before Mr. Morgan refused to permit the bank to reopen. Then, just two hours ^before the institution closed, he deposited in it $945. He has written his son-in-law that everything he has in the world is $2 in cash, a cow, hog, a horse andseventy chickens.Mr. Shuck moved to New Albany thisweek and will engage in truck farmingnear that city on lend owned by hisson-in-law, Mr. Lewis.* * * *a:iThe Situation as to a New Bank.Samuel J. Elsby, president of the American Bank and Trust Company of fcew Albany, and other prominent business men of that city including William P. Huff, Otto Voyles land Roscoe Lewis, jail former citizens of Harrison County, were in Corydon yesterday to take steps to organize a state bank here with a capital stock of $150,000 or more. They announced that stock had already been subscribed to the amount of $165,000 and that thirty^of the stockholders are residents of Harrison County. An application for a charter will be made at a meeting of tbe State Finance teoard at Indianapolis today. The name of the proposed bank is the Old Capital State Bank and Trust Company.IEFJ/ttIcI(1Application will also be made at Indianapolis today for a charter for the Corydon State Bank, with capital stock of $50,000 and paid up surplus of $12,-500. It is announced that Judge William Ridley is to be president of this bank and Sam Pfrimmer cashier. About twenty-five citizens of Corydon- ■ . - W w w f — -T — - •» T — — V — gtates that he had $197,211.15 on de- have subscribed stock, according to
Newspaper Details
Corydon Republican
Corydon, Indiana, US
Thu, Mar 02, 1922
Page 1
Full Page
Clipped by
Stephen T.
USA 26 Oct 2019
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