Farmers Trust Company (Indianapolis, IN)

Episode Information

Episode UID
20005371577
Episode Type
Suspension → Closure
Bank Type
trust
Bank ID
2000537 routing
Routing Number
20-0053
Start Date
May 4, 1931
Location
Indianapolis, Indiana (39.768, -86.158)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
14d38e096ec39c69

Response Measures

None

Events (5)
1. May 4, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors requested temporary closing due to lack of liquid operating capital to meet anticipated depositor demands; refinancing/reorganization planned.
Newspaper Excerpt
State banking department today closed doors of the Farmers Trust Company ... The closing is temporary, according to James W. Noel, attorney director of the bank.
Source
newspapers
2. May 6, 1931 Receivership
Newspaper Excerpt
Petition filed by Luther F. Symons, state banking commissioner, in Marion circuit court today, requested a receiver for the Farmers Trust Company, which closed its doors by order of directors Monday. Investigation by his department revealed the bank is in 'a failing condition,' Symons set forth in the petition.
Source
newspapers
3. May 21, 1931 Receivership
Newspaper Excerpt
Boyd M. Ralston, Indianapolis realtor, today was named receiver of the Farmers Trust Company, by Superior Judge Clarence E. Weir.
Source
newspapers
4. November 15, 1933 Other
Newspaper Excerpt
Indianapolis banks affected by the plan ... include the Farmers Trust Company, $1,280,000; ... Plans for a $20,000,000 liquidation of assets in eighty defunct state banks will be drafted ... Funds for the liquidation are to be provided by the RFC.
Source
newspapers
5. January 3, 1934 Other
Newspaper Excerpt
Preparatory to declaration of dividends to depositors of the defunct Farmers Trust Company, Judge Clarence E. Weir ... ordered all small depositors of the bank to file verified proof of claims with Boyd M. Ralston, receiver.
Source
newspapers

Newspaper Articles (12)
1. May 4, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 4, 1931

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Article Text

FARMERS TRUST CLOSES DOORS TEMPORARILY Bank Is Not Insolvent, Statement by Board Declares. State banking department today closed doors of the Farmers Trust Company, 150 East Market street, on request of directors of the institution, for refinancing and reorganization. Thomas Barr, assistant state bank commissioner. took charge of the bank and J. W. Parrett, state banking department examiner, was working in the institution. The closing is temporary, according to James W. Noel, attorney director of the bank. Depositors Are Safe The trust company is not insalvent, a statement by directors declared, adding, "there is no doubt in the minds of the board that depositors will lose nothing and that stockholders will, even in the event of liquidation, receive large distri-, bution on their stock." Last report of the bank showed capital of $300,000; loans, $1,010,000; deposits, $1,240,000; undivided profits, $165,000, and surplus, $75,000; The state had deposits totaling $65,336.75 in the institution. C. N. Williams is president. Shortly after the Washington Bank and Trust Company closed last fall, the Farmers Trust Company invoked a ninety-day call on time deposits. Statement Is Issued Directors of the institution issued the following statment after closing today: "By action of the board of directors, the banking commissioner has been requested to take temporary charge of the affairs of the Farmers Trust Company, with a view to refinancing, reorganization or segregation of its banking business from its mortgage loan and trust business. "The trust company is not insolvent, and there is no doubt in the minds of the board that depositors will lose nothing and that stockholders will, even in the event of liquidation, receive large distribution on their stock. "The immediate cause of the foregoing action is the lack of liquid operating capital necessary to take care of the anticipated demands of depositors and at the same time to carry on the mortgage business in the manner in which it has heretofore been done. "In view of the foregoing, it was the opinion of the directors that temporary suspension will be to the advantage, not only of the depositors, but of the stockholders."

2. May 6, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 6, 1931

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Article Text

ASKS BANK RECEIVER Petition Filed for Farmers Trust Company. Petition filed by Luther F. Symons, state banking commissioner, in Marion circuit court today, requested a receiver for the Farmers Trust Company, which closed its doors by order of directors Monday. Investigation by his department revealed the bank is in "a failing condition," Symons set forth in the petition. The bank was classed as a loan, trust and safe deposit company. The state banking department has taken over all books, notes and records of the institution. Last report of the bank showed $300,000 capital; $1,010,000 loans; $1,240,000 deposits; $165,000 undivided profits, and $75,000 surplus. In the bank were state deposits of $65,336.75.

3. May 6, 1931 The Indianapolis Times Indianapolis, IN

Article Text

BANK RECEIVER Petition Filed for Farmers Trust Company. Petition filed by Luther mons, state Marion circuit court today, requested receiver for the Farmers Trust Company, which closed its doors by order of directors Monday. Investigation by his department revealed the bank failing condition, set the petition. loan, trust and safe deposit state banking department has taken over all books, and recof the institution. Last report the bank showed capital; loans; 240,000 deposits; $165,000 undivided profits, surplus. In were state deposits of $65,336.75

4. May 21, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 21, 1931

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Article Text

RALSTON IS RECEIVER OF FARMERS TRUST Indianapolis Realtor Is Named by Superior Judge Weir. Boyd M. Ralston, Indianapolis realtor, today was named receiver of the Farmers Trust Company, by Superior Judge Clarence E. Weir. Weir named H. Nathan Swaim, park board attorney, and Charles W. Richards, attorney, as counsel to work with Ralston on the receivership. The bank was closed May 4 on vote of board of directors and at a preliminary hearing earlier in the week, bank officials and Weir expressed the confidence that the bank would meet obligations to all depositors. Today, Weir said he did not know whether this would be accomplished but "had every confidence in these men and believe they will be able to bring this about."

5. December 2, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, December 2, 1931

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Article Text

BANKER SEEKS SEIZED LIBERTY BONDS' RETURN Head of Defunct Farmers' Trust Asks Mandate of Receiver. Two witnesses were called today in the first round of the fight of Charles N. Williams, president of the defunct Farmers' Trust Company to force B. M. Ralston, the receiver, to return liberty bonds valued at $25,000. Williams alleged in his suit today that the liberty bonds, used by the bank as surety for the deposit of Marion county government funds, are his property and not that of the bank. He alleged that he merely had loaned the bonds to the institution and introduced an agreement between him and the bank to this effect, which was signed by C. A. Plock, the vice-president. Dunn Certifies Total Harry Dunn, county auditor, testified that a total of $40,000 in liberty bonds was deposited by the Farmers bank in the Indiana National bank, to be held in escrow as surety for the county's deposit. Maximum to be deposited in the Farmers bank was placed at $80,000 by the county finance board, and $39,677.21 was on deposit when the bank closed, Dunn said. Williams' suit alleged that on Jan. 23, 1931, he loaned the Liberty bonds to the bank to be used in the manner stated above and that without his "knowledge or consent" these and an additional $15,000 of Liberty bonds were placed in escrow with the other bank. Seeks Court Order He asks that Ralston be ordered by the court to take $25,000 from the cash on hand in the closed institution and buy replacement bonds these to be returned to him. Or, he asks, that the bank pay back to the county the money on deposit, thus releasing his bonds for return, or that he be paid in cash the equivalent of the value of the bonds. Ralston counters with the statement that Williams is not a special claim, but that he only is a general creditor and that for this reason, he should take his chances with the other depositor. Henry Dowling and Henry Hornbrook appeared for Williams; and H. Nathan Swaim for Ralston.

6. March 3, 1932 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, March 3, 1932

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Article Text

Notice to Preferred Creditors of Farmers Trust Company. In. the Superior Court of Marion County. Indiana. Cause No. A-61157. State of Indiana on relation of Luther F. Symons, Bank Commissioner of the State of Indiana vs. Farmers Trust Company. Notice is hereby given that on the 2nd day of March. 1932, the court made and entered an order in the above entitled cause that all persons, firms or corporations having claims or demands against said Farmers Trust Company wherein they have or claim to have any right of preference or priority of payment out of the funds. property or assets of siad Trust over general creditors and depositors of said Farmers Trust Company are required to file and they shall file the same either with Boyd M. Ralston, Receiver in said cause, at his place of business at 150 East Market street in the city of Indianapolis, Indiana, or with the court in said cause by intervening petition and leave of court for such filing, not later than Saturday the 19th day of March, 1932, under penalty of thereafter having said claims disallowed as preferred in the discretion of the court: and further thereby ordering that all claims or demands so filed as preferred shall be supported by affidavit and shall set out the amount and nature of any security or lien held by the claimant and to which the claimant is entitled, and also the basis in law or equity for the preference and right of priority of payment relied on. Dated at Indianapolis, Indiana, this 3rd day of March, 1932. BOYD M. RALSTON, Receiver of Farmers Trust Company.

7. July 3, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, July 3, 1933

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Article Text

FARMERS TRUST OFFICERS SUED $70,000 Damages Asked From Ex-Directors of Company. Suit for $70,000 against former directors and officers of the Farmers Trust Company was filed today in superior court three by attorneys for Mrs. Mary Bain, 1425 Marlowe avenue. Allegation is made in the suit that the officials "entered into a conspiracy to cheat and defraud" through their handling of investment certificates. The suit alleges that Mrs. Bain purchased $700 of the investment certificates, which were represented as being secured by real estate mortgages equal to the full value of the certificates. Substitution of other mortgages of les svalue in the trust created for the certificates is charged in the complaint, resulting in a $70,000 loss to certificate holders. Approximately 300 persons purchased the certificates which totaled $100,000. Through the alleged substitution, assets of face value of only $78,000 were left in the trust. It is alleged that the actual value of the substituted assets is only $30,000, resulting in the $70,000 loss. The suit was filed in behalf of all of the 300 certificate purchasers. Defendants are Charles E. Coffin, Edward H. Forry, Alfred D. Hitz, Edward A. Kahn, Leroy J. Keach, Charles R. Kellogg, Frank M. Millikan, James W. Noel, Carl A. Ploch, Mark V. Rinehart, Riley E. Smith, Charles N. Williams, Thomas N. Yynne, the Farmers Trust Company and Boyd M. Ralston, receiver.

8. November 15, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, November 15, 1933

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BANK 'THAW' OF $20,000,000 TO BE FORMULATED Meeting Set to Arrange for Liquidation With RFC Money. Plans for a $20,000,000 liquidation of assets in eighty defunct state banks will be drafted by the state banking commisison and Seventh district reserve committee at a meeting tomorrow afternoon at the Indianapolis Athletic Club. The move is in addition to the one announced last week for putting $10,500,000 into liquidation through the Home Owners Loan Corporation, it was said. Receivers Invited Robert R. Batton, chairman of both the federal reserve district committee and state banking commission, called the meeting and will preside. Funds for the liquidation are to be provided by the RFC. Receivers and liquidating agents for the closed institutions have been asked to attend the meeting and hear the plan unfolded. Machinery of the project is to provide long term loans to the banks on frozen assets. Four in City Affected It was estimated by the state banking department that nearly all can have their deposits released by Christmas in this manner. Indianapolis banks affected by the plan and approximate amount of deposits include the Farmers Trust Company, $1,280,000; Aetna Trust Company, $1,280,000; Virginia Avenue State bank, $123,000, and Belmont State bank, $250,000.

9. January 3, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, January 3, 1934

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Article Text

FARMERS TRUST TO PAY: CLAIMS PROOF IS ASKED Superior Judge Instructs Depositors to File With Receiver. Preparatory to declaration of dividends to depositors of the defunct Farmers Trust Company, Judge Clarence E. Weir, superior court, room 4, yesterday ordered all small depositors of the bank to file verified proof of claims with Boyd M. Ralston, receiver, by Jan. 15. According to a petition filed by the receiver, the books of the Farmers Trust Company showed more than 1,000 accounts averaging less than $5, some of which had been on deposit more than fifteen years. Addresses of many of the depositors are not contained in the bank records. The order, as entered by Judge Weir, requires the filing of verified proof of claims with Mr. Ralston, 150 East Market street, in the following cases: Where the claim or demand in question is for an amount not more than $5; where the claim is for an account against the company on which account the books of the company show no transaction since 1927; where the claim is based on an obligation which is not shown by the books of the company; cases where the claim is based on an obligation which is evidenced by check, certificate of deposit, draft or any other negotiable instrument, and all other cases where the claim or demand is based on an obligation, the present owner or holder of which obligation is not shown by the books of the company. The order does not require filing of formal proof of claim in the case of a depositor who, at the time the bank closed, had a credit balance of more than $5 and which account had been active up to the closing of the bank.

10. February 8, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, February 8, 1934

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STATE WINS CLAIM IN FARMERS' TRUST CASE Awarded $12,000 in Ruling by Judge Weir. A claim of $12,000 asked by the State of Indiana against the closed Farmer's Trust Company was granted today by Judg eClarence E. Weir, of superior court, room four. Hearing on the claim, together with all others filed by depositors against the bank, were held Monday, prior to the granting of a request from Boyd M. Ralston, receiver, for permission to petition the Reconstruction Finance Corporation for a loan of $195,695. Judge Weir has apaproved the petition for the loan, which if granted, will be used to pay dividends of from 25 to 30 per cent to creditors of the bank.

11. April 19, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, April 19, 1934

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FARMERS TRUST DIVIDEND NEARS Depositors Would Receive 12 1-2 Per Cent Payment If Court Approves. Possibility of the payment of a 12½ per cent dividend to depositors of the defunct Farmers Trust Company was seen today in superior court four. Judge Clarence E. Weir is expected to act on a petition tomorrow of H. Nathan Swaim and Charles W. Richards, attorneys for the receiver, for the payment of the dividend. Suit to enjoin payment of the

12. December 11, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, December 11, 1934

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STATE SAVINGS DEPOSITORS TO SHARE $80,000 51-2 Per Cent Dividend Is Declared, Checks Go Out Today. Payment of a 5½ dividend to depositors of the defunct State Savings and Trust Co., totaling $80,000, was begun today at the receivers offices, 301 New City Trust Bldg. Announcement of the dividend was made yesterday by Homer Elliott, receiver. Depositors whose names begin with A, B or C will receive their checks today. Others may obtain their checks later in the week, in alphabetical order. The money for the dividend was obtained as the result of action brought to collect stockholders' liability before Superior Juage Joseph R. Williams. Eighty-three certificate holders of the defunct Farmers Trust Co. will be mailed dividend checks of 15 per cent, totaling $11,259, Thursday. The Union Trust Company was named substitute trustee by Gideon W. Blaine, judge pro tem. in Probate Court, yesterday.