Belmont State Bank (Indianapolis, IN)

Episode Information

Episode UID
20009271599
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
2000927 routing
Routing Number
20-0092
Start Date
March 15, 1933
Location
Indianapolis, Indiana (39.768, -86.158)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
9ea4a2a7d28fecfa

Response Measures

None

Events (3)
1. March 15, 1933 Other
Newspaper Excerpt
these included the Aetna Trust and Savings bank, Virginia Avenue State bank, Belmont State bank ... open throughout the state
Source
newspapers
2. May 1, 1933* Suspension
Cause
Government Action
Cause Details
Closed by order of the Indiana state banking commissioner during post-holiday examinations/closures
Newspaper Excerpt
the banks were closed on orders of the commissioner and now are in charge of the state banking department
Source
newspapers
3. May 12, 1933 Receivership
Newspaper Excerpt
Receivers for two state banks in Indianapolis were appointed Friday ... James B. Ross ... was appointed for the Bank ... Thomas D. Barr ... testified both banks were insolvent.
Source
newspapers

Newspaper Articles (14)
1. March 15, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, March 15, 1933

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EIGHT MILLIONS PUT IN BANKS Deposits Are Heaviest in City's History, Report Officials. (Continued from Page One) cepting deposits which may be withdrawn in full. These included the Aetna Trust and Savings bank, Virginia Avenue State bank, Belmont State bank, Marion County State bank, Peoples State bank, and Citizens State bank of Beech Grove. State banking officials announced a large number of banks open throughout the state and they were working at top speed today checking condition of other banks in preparation for issuing permits for their reopening as soon as possible. It was announced at the statehouse today that practically every county in the state has at least one bank open. Bankers pointed out that the heavy excess of deposits over withdrawals was not caused by the limitation on cash withdrawals. The banks were forced to ask very few persons to sign affidavits that heavy withdrawals were for necessary purposes and not for hoarding. Gold coins and gold certificates today continued to pour into banks, officials reporting more than $100,000 in gold received in exchange for currency Tuesday. It was estimated that more than $700,000 in gold coin and gold certificates has been shipped to the federal reserve bank at Chicago in the last week. Heavy Penalty Provided A maximum penalty of a $10,000 fine and ten years in prison is provided for persons hoarding gold and gold certificates. Banks of the country have until Thursday to furnish the government with lists of persons who have withdrawn gold or gold certificates in sizeable quantities in the last few years without returning it. Building and loan associations reported increased business Tuesday and today as payments were made on loans. During the banking holiday no payments were made on loans and PA borrowers hastened to make paye ments as soon as funds were available. S Most of the money received was in cash, with few checks being tendered, it was said. Operations of these financial in] stitutions have been on a restricted basis for several months.

2. May 9, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 9, 1933

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BANK RECEIVERS ASKED Attorney-General Files Suits in Behalf of Commissioner. Suits asking appointment of receivers for the Belmont State bank and the Virginia Avenue State bank were filed today in superior court one by Philip Lutz Jr., attorneygeneral, in behalf of Richard A. McKinley, state banking commissioner. Complaints in the suits contain only formal allegations, to the effect that the banks were closed on orders of the commissioner and now are in charge of the state banking department.

3. May 9, 1933 The Indianapolis News Indianapolis, IN

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BANK RECEIVERS ASKED Commissioner's Suits Name Virginia Avenue and Belmont State, Suits for the appointment of receivers for the Virginia Avenue State Bank and the Belmont State Bank were filed in superior Room Tuesday, by Richard A. McKinley, state The banks few days ago by the state Judge John W. Kern set Friday forenoon as the date for hearings on the suits.

4. May 9, 1933 The Indianapolis Times Indianapolis, IN

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BANK RECEIVERS ASKED Files Suits in Behalf of Commissioner. Suits asking appointment of receivers for the Belmont State bank and Virginia Avenue State bank were filed today in court one by Philip Lutz attorneygeneral, in behalf of Richard A. McKinley, state banking commissioner. Complaints the suits contain only formal allegations, to the fect that the banks were closed on orders the and are in charge of the state banking

5. May 10, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 10, 1933

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SET BANK HEARINGS Receiver Action to Be Conducted Before Judge Kern Friday. Petitions for appointment of receivers for the Virginia Avenue State bank and the Belmont State bank will be heard in superior court one Friday by Judge John W. Kern. Suits were filed by Richard A. McKinley, state banking commissionem The institutions were closed last week by the bank department.

6. May 12, 1933 The Indianapolis News Indianapolis, IN

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TWO RECEIVERS NAMED. Court Acts in Belmont and Virginia Avenue Bank Cases. Receivers for two state banks in Indianapolis were appointed Friday by Judge John W. Kern, of superior court. James B. Ross, attorney, was appointed for the Bank and Edward A. Oliger, also an was for the Virginia Avenue State Bank Thomas D. Barr, of the state banking department, testified both banks were insolvent. Deposits of the Belmont State Bank total with bills of $60 The deposits in the Avenue State Bank $90,000, with bills payable of $82,000.

7. May 13, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 13, 1933

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CREDITOR SUES CLOSED BANK'S STOCKHOLDERS Double Liability Judgment Asked in Meyer-Kiser Court Action. Suit to collect from sixty-five stockholders of the defunct MeyerKiser bank on a double liability basis, was filed Friday in circuit court by Charles D. Babcock, an attorney, who avers he is a general creditor with a claim of $150. Babcock, member of a depositors committee, states in the suit that he is acting for himself and more than 1,000 other creditors of the bank. Among the defendants are stockholders who served until a week ago as liquidating agents, having been displaced by Thomas E. Garvin, receiver, appointed by Circuit Judge Earl R. Cox. These stockholders are Ferd S. Meyer, from whom the suit demands $66,640; J. J. Kiser, $66,000, and M. S. Cohen, $66,500. May Pay Well, is Claim From Sol Meyer the suit asks $66,500. Amounts of $6,000 or less are sought from remaining defendants. Order for discharge of all former employes of the bank and cessation of operation of all departments was given Garvin by Cox today. Last Saturday Garvin discharged fourteen of the eighteen employes of the liquidating agents. Depositor creditors of the defunct State Savings and Trust Company plan to continue their search for assets of the receivership, it was revealed today when petition was filed with Cox asking for a further investigation. Examination Is Sought The petition, signed by K. I. Hamilton, J. S. Sisloff, R. D. Evans and S. Pat Solomon, asked the court to "arrange for an examination of the records and activities of the officers of the bank and its subsidiary, the State Property Company." Meyer-Kiser bank depositors could be paid in full, if total assets of the bank can be liquidated at an average of 70 per cent of their book value, Kiser said today, adding that only time and general business conditions govern this possibility. Garvin Thursday said the bank may pay depositors 25 cents on the dollar. Kiser said that income from all sources during the twenty-three months of liquidation of $262,545.75. Expense for the same period, he said, was $232,125.27. leaving a net operations profit of $30,420.48. Cites Examination Results Examination by the state banking department showed approximately the following, Kiser said: Total liabilities, exclusive of $614.000, in capital surplus and undivided profits, $1,878,000; total book value of assets, $2,492,000, valued by banking department at $1,373,000. If the assets are liquidated at the value placed on them by the banking department on the basis of the recent examination, depositors and creditors would receive approximately 70 per cent, Kiser said. Receivers for the Belmont State bank and Virginia Avenue State bank, closed recently on order of the state banking department, were appointed today by Judge John Kern in superior court one. Frank B. Ross, attorney and former probate judge, was named the Belmont receiver with bond of $15,000. Edward A. Oliger, attorney, was appointed the Virginia Avenue receiver at $10,000 bond.

8. May 18, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 18, 1933

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EX-RECEIVER CHARGED WITH FUND WASTE Curtis Rottger Target of Suit by City Trust Depositors. Further revelations of affairs of defunct local banks and their receiverships were indicated today by petitions filed in circuit court and start of an audit of the MeyerKiser bank. The Meyer-Kiser audit will cover all transactions, it was announced by Thomas E. Garvin, receiver, who. with Charles D. Babcock, head of the depositors committee. obtained an order for the examination from Circuit Judge Earl R. Cox. Howard W. Painter, a certified public accountant, is making the audit, assisted by William M. Madden and Karl I. Hamilton. Probe of handling of the City Trust Company by Curtis H. Rottger as receiver is asked. The petitions were filed with Cox by two depositor-creditor corporations, through their attorney, Joseph Collier, alleging that $13,291.58 was was "dissipated" by Rottger, who was receiver until February. Ask $25,000 Judgment Simultaneously, suit was brought in superior court one to collect $25.000 stockholders' liability by Edward A. Oliger, receiver of the Virginia Avenue State bank, who was appointed last week. Defendants named in the suit are the Fletcher American Company and nine bank stockholders. The company, now in process of liquidation, formerly was the bond and securities house of the Fletcher American National bank. Judgment of $17,500 is sought from the company and $1,000 each from Wilson W. Godfrey, Walter J. Hubbard Jr., William Iverson, C. R. Keigh, Frank E. Rieman, Chester L. Robinson. Harry T. Shaneberger and Perry E. O'Neal. Sum of $500 is asked from Alfred G. Mueller. Petitioners for the City Trust probe are the Puritan Hotel Company and the Market-New Jersey Realty Company, owners of the property at Market and New Jersey streets, operated by the hotel company. Cox declared that his previously announced intention to "tear the veil of secrecy" from receivership affairs would be carried out with a complete investigation of charges against Rottger. Bad Exchange Charged Principal charge in the petition is that the receiver permitted solvent securities, totaling $74,500, to be exchanged for alleged worthless securities of the City SSecurities Corporation and other subsidiaries of the closed bank. Demand was made on Rottger for return of $29,077.11 to the receivership funds, with the allegation that the amount represented excessive expenditures for salaries on the receiver's staff. Another charge was that the receiver "wrongfully permitted $5,000 of the funds of this trust to be paid by Center Realty Company, an affiliate of the City Trust Company, to City Securities Corporation, an affiliate of City Trust Company, when the Center Realty Company was not indebted justly to the City Securities Corporation." Dividend "Set-Off" Alleged. It also was charged that more than $17,000 in dividends due to the trust were "set-off" against deposit claims by corporations owing the dividends. Other bank matters coming into the spotlight Wednesday concerned the Belmont State bank, and the Meyer-Kiser bank. Garvin, replying today to criticism of use of the elaborate offices of the Meyer-Kiser bank for the receivership work, stated that the three liquidating agents whom he succeeds had paid rent on the offices until Aug. 1, and that a move would entail more expense. The rent is $1,000 a month, paid from funds of the defunct bank. Announcement was made by Frank B. Ross, Belmont receiver, that funds were available for payment of deposits made since the bank holiday. A $5,000 deposit in the Fletcher American was released to the receiver to augment cash on hand in meeting post-holiday trust deposits of more than $5,000.

9. May 22, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 22, 1933

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COURTS WILL ACT IN CLOSED BANK INQUIRY Officials of Two Defunct Institutions Will Be Called to Account. WILSON PROBES CASES Prosecutor Says Evidence Will Be Laid Before Grand Jury. After more than two years' delay, criminal as well as civil law will demand an accounting from officials of defunct local banks, it appeared today. At least two transactions of the State Savings and Trust Company will be given to the grand jury, Prosecutor Herbert E. Wilson announced. Charges of "criminal and dishonest acts" against former officials also will be investigated by the grand jury at the direction of Wilson, provided "newspaper accounts are true," Wilson said. "My only knowledge of the acts is through reading the newspapers," Wilson said. "As soon as I have had opportunity today to examine the records, I will take whatever action is warranted. If newspaper accounts are true, the grand jury will investigate." Cox Assures Action Circuit Judge Earl R. Cox, who precipitated the sensational disclosures of recent weeks, announced that civil action would be taken to recover from bonding companies At the time of the closing of the Washington bank. officials and employes were covered by a $100,000 bond, evidence in circuit court disclosed Friday. Suit will be started immediately by Samuel Miller, attorney for Oren S. Hack, present receiver. Charges that depositors in the bank lost more than $1,750,000 through acts of the officers were brought to light Friday, when Hack petitioned for instructions regarding suit on the bond. No Action Taken It was revealed that two years ago, an audit showed the loss, but that no action was taken by Brandt C. Downey, -former receiver. Downey testified that he left action to Earl R. Conder, his attorney, but that Conder preferred to obtain a deed to the home of J. Edward Morris, former bank president, in restitution. Temporarily crowded from the spotlight by developments in the other two banks, affairs of the remaining institutions in the group of four major closed banks also will be considered this week. Charges of depositors that Curtis Rottger, former receiver of the City Trust Company, "dissipated" more than $125,000 of trust funds will be aired in circuit court. Meyer-Kiser Case Up Hearing also will be conducted on a petition of former liquidating agents of the Meyer-Kiser bank to obtain records and other documents of bank departments. J. J. Kiser and Melville S. Cohn, two of the former bank officials who were in charge of the liquidation until recently, have petitioned for the records to act as registration and fiscal agents for securities handled by the bank. The attempted action is opposed by Thomas E. Garvin, receiver, and William J. Fahey, attorney. Garvin's oppostion to the move centers on the contention that handling of registration and other service by a private business will remove profitable business from the receivership. Belmont Depositors Active Fahey's petition in the interests of Mrs. Margaret Caito, 221 East Henry street, holder of approximately $36,000 of bonds issued by the bank, represents an attempt to secure information regarding the securities. Emphatically voicing a determination "not to sit by while we lose our money," 191 depositors, with $68,000 in the closed Belmont State bank, laid plans Saturday for an aggressive organization and protection of their claims. At a meeting held in the Belmont theater, a depositors' committee was elected and empowered to act by employing an attorney, and an accountant if necessary. Members of the committee are A. E. Moore, Harry Markun, Dr. William L. Jennings, C. A. Klingensmith and Walter Gingery, principal of Washington high school. Numerous speeches by depositors exhibted varying attitudes regarding closing of the bank and appointment of Frank B. Ross as reciver. Practically every speaker referred to his understanding that the Belmont bank was "affiliated" with the (Turn to Page Two)

10. November 15, 1933 The Indianapolis Star Indianapolis, IN

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LOANS FROM RFC RELEASE Payment of Half of Frozen Deposits Planned Before Christmas-City Share Is $1,500,000. Christmas closed companies planned by Seventh Federal Indiana and the state committee is arranging frozen deposits about defunct banks through reconfinance loans. will make possible Christmas gifts by many would have small yuletide cheer It will mean business for and possible payment of debts. Details of the plan be outlined and liquidating agents banks meeting tomorthe Indianapolis Athletic Would Release Nearly Half. At the banking department yesterday it explained that the expected release about half the deposits the closed banks in the Seventh district, which comprises most liquidating agents invited to attend the meeting letters sent out by Robert R. Batton, chairman of the Federal committee and the other four members, all of whom are members the department financial instituFour closed Indianapolis banks eligible the state officials explained. half the deposits in Indianapolis institutions as approximately $1,500,000 free in the The Indianapolis banks and approximate deposits, Farmers Trust $1,Aetna Trust Company, Virginia AveState and Belmont State to Furnish Funds. Mechanics of the plan simply provide for long-term loans to the funct banks, through the receivers liquidating Existing sets are pledged collateral for the loans. funds derived from the reconstruction finance corporation. The assets be liquidated orderly fashion and the loans repaid to the Federal government by the receivers and liquidating agents. This will the flooding markets bank and prevent assets sacrifice figures. period five years the assets be advantage, it explained. Banks eligible the loans include about closed was explained banking department. Banking Department at Helm. Most of the involved be done through the state banking deThe Indiana committee will co-opwith the finance corporation and the deposit liquidation board in making the loans banks through James Leavell of Chicago and Walter W. Smith of the Seventh and Eighth Federal districts The Indiana committee. headed by Mr. Batton of includes Myron H. Gray of Muncie, Harvey Hartsock Indianapolis, Setser Columbus and Oscar Welborn of Indianapolis. one committees of bankers and business men appointed to speed the of more than $3,000,assets closed national and state banks throughout the country. Banks to Make Applications. The receive applications from closed banks for loans from the poration. The committee then will review the application and fix liquidating for the listed assets period of three to five years. The application then will be passed along to the district chairmen with for amount, less the cost determining district chairman will recomaction to the deposit liquidatBanks operating under liquidating agent of the state banking mission receiver to which the notices sent included Citizens Loan and Trust Company of Frankfort, Peoples State bank at East ChiCitizens State bank at NoblesExchange Lyons, Wabash County Loan Trust Company Trust ComIndianapolis, Valley

11. 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.

12. January 2, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, January 2, 1934

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# NOTICE TO CREDITORS OF THE BELMONT STATE PANK TO THE CREDITORS OF THE BELMONT STATE BANK, OR THE RECEIVER THEREOF: You and each of you who are hereby notified that pursuant to an order made by the Superior Court of Marion County, Room No. 1, in a cause entitled State of Indiana, on relation of Richard A. McKinley, Bank Commissioner of the State of Indiana vs. Belmont State Bank, being Cause No. A-72181 on the docket of said Court, all creditors of, and all those having any claim of any kind or nature against the Belmont State Bank or its Receiver, with the exception of persons having active demand deposits, savings accounts, and/or 1933 Christmas savings accounts, must file their claims with the undersigned Receiver at his office, 901 State Life Building, Indianapolis, Indiana, on or before January 15, 1934, or be forever barred from participating in any distribution of the assets of the said Belmont State Bank. Persons having active demand deposits, savings accounts and/or Christmas savings funds for the year 1933, will participate as their claims are shown to exist upon the books of said Belmont State Bank and any persons wishing to verify said amount as shown upon the books may call at the office of the Receiver for such purpose. All persons having inactive demand deposits, upon which no deposits or withdrawals have been made since June 1, 1932, are required, under this order, to file their proofs of claim in order to participate in any dividend. FRANK B. ROSS, Receiver of Belmont State Bank, 901 State Life Building, Indianapolis, Indiana. EDWARD P. FILLION, Attorney for Receiver, 1214 Merchants Bank Building, Indianapolis, Indiana.

13. May 4, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 4, 1934

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PARTY HARMONY TO AID KERN IN MAYORAL RACE Judge Starts Windup of Long, Vigorous Speaking Campaign. Judge John W. Kern, Democratic mayor candidate, today began the windup of a long and vigorous speaking campaign he has carried on during the last month in every section of Indianapolis. Drafted to make the race for mayor, Judge Kern is known to carry almost perfect organized party support. In spite of this fact, he states he has carried on this intensive speaking campaign for the purpose of acquainting citizens in every section of the city with the true facts of who he is and why he is running for the office. Decided upon several weeks ago by leaders as the man to carry the party banner, and reunite the insurgent factions, Judge Kern reluctantly withdrew as a candidate for re-nomination and election to the judgship of superior court, room one. During the last three years, Judge Kern has established an enviable record in that court, finishing second among the five superior judges in number of cases disposed of in 1931 and leading the group in number of cases disposed of in 1932 and 1933. Proud of Bank Record He points with pride to the fact that in the bank receiverships, he has handled the Belmont State bank and paid 18 per cent dividend, with a possible 7 per cent more to come, and the Maple Road bank has paid 35 cents on the dollar to depositors. The Virginia Avenue State bank paid 40 cents on the dollar, and within the last week Judge Kern ordered an initial 30 per cent dividend paid to Aetna Trust Company depositors. Judge Kern is proudest, however. of being able to bring about reorganization of the Trustees System bank and said if nothing hap-

14. December 23, 1935 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, December 23, 1935

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3 DEFUNCT CITY BANKS DECLARE YULE DIVIDENDS $141,000 Is Distributed to Depositors in Time for Christmas. Depositors of three defunct Indianapolis banks have received Christmas presents of dividends in excess of $141,000, it was announced today by the receivers. The City Trust Co. declared a 5 per cent dividend amounting to $80,000 last Saturday, Oren S. Hack, receiver, said. A similar dividend payment was made in October, 1934. The Aetna Trust & Savings Co., declared a 7½ per cent dividend amounting to $60,000 last month, officials said. A 2 per cent dividend was paid this week by Maple-rd State Bank, E. Kirk McKinney, receiver, said. The amount paid was $1534 and brings the total dividend payment up to 39½ per cent. Litigation prohibits the. Washington State Savings & Trust Co., Farmers Trust Co. and Meyer-Kiser Bank from declaring dividends at this time, receivers said. Receivers for the J. F. Wild & Co. State Bank and State Savings & Trust saw no prospect of dividend payments, and the Belmont State Bank anticipates a dividend payment soon after the holidays.