First National Bank (Lagrange, IN)

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Episode Information

Episode UID
218401534
Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
21840 national
Charter Number
2184
Start Date
October 24, 1927
Location
Lagrange, Indiana (41.642, -85.417)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
c6b4006ad2285a7a

Response Measures

Capital injected, Full suspension, Books examined

Description

Articles cite an immediate run blamed on circulating rumors and later federal findings of forged paper and indictments.

Events (5)
1. September 12, 1874 Chartered
Source
historical_nic
2. July 30, 1894 Voluntary Liquidation
Source
historical_nic
3. October 24, 1927 Receivership
Newspaper Excerpt
John F. Utt, national bank examiner and temporary receiver for the La Grange bank; Utt took charge after run on bank; ledgers and papers were perused by federal accountants and grand jury later found forged paper relating to failure of the bank (about $75,000-$76,000).
Source
newspapers
4. October 24, 1927 Run
Cause
Rumor Or Misinformation
Cause Details
Circulation of rumors caused depositors to withdraw accounts, depleting reserves and triggering the run.
Measures
Directors closed the bank; negotiations opened for sale to Samuel J. Jacobs; reopening predicted in days.
Newspaper Excerpt
Its reserves depleted by a run, the bank closed its doors yesterday.
Source
newspapers
5. October 24, 1927 Suspension
Cause
Government Action
Cause Details
Federal bank examiner J. F. Utt closed the bank and was appointed temporary receiver after discovery of forged paper and depleted reserves.
Newspaper Excerpt
The bank was closed Oct. 24, 1927, by Utt, Federal bank examiner, appointed temporary receiver.
Source
newspapers

Newspaper Articles (18)
1. October 25, 1927 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 25, 1927

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LA GRANGE MAY REOPEN BANK Walb Denies Loan Rumors: Sale Talk Rife. Bill United Press LA GRANGE, Oct. 25.-Reopening of the First National Bank of La Grange within a few days was predicted by officials of the institution today. Its reserves depleted by a "run," the bank closed its doors yesterday. Negotiations 'also have been opened for sale of the bank to Samuel J. Jacobs, New York financier, owner of the Noble County Bank. Jacobs was expected to reach Kendallville, his former home, today or tomorrow. Clyde A. Walb, Republican State chairman who resigned as a vice president, a few weeks ago, denied that "excessive loans" had been made to him. He said his borrowings from the bank would not exceed $10,000. John P. Caton was elected to take his place and became acting president as result of resignation of Valentine Weaver. The bank had $600,000 in deposits and had been established for sixty years.

2. October 25, 1927 The Times Hammond, IN
Article from The Times, October 25, 1927

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CLOSED BANK REOPENING PREDICTED First National of Lagrange, Ind. Is Depleted by Panicky Run LAGRAGE Ind., Oct. 25 the First National Bank LaGrange within few predicted by officials of institution today Its reserves depleted the bank closed doors Negotiations also have been opened of the bank SamJacobs, New York city finanowner of the Noble County Bank. Jacobs expected to reach his former today tomorrow. His reorganizing the LaGrange arose, from his wish another bank in boyhood Clyde Walb, Republican chairman vicepresident the few weeks denied "excessive loans" He said his borrowings from the bank would John elected to take his place acting president result of resignation of president. The had in had established for Its to frozen assets, the closing blamed on rumors throughout the causing depositors withdraw counts. Failure County Trust Company take over the bank preceded decision the directors to close the doors.

3. October 25, 1927 Rushville Republican Rushville, IN
Article from Rushville Republican, October 25, 1927

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REOPENING OF LAGRANGE IN FEW DAYS PREDICTED Clyde A. Walb, Who Recently Resigned as Vice President, Denies He Has Excessive Loans WOULD NOT EXCEED $10,000 Lagrange, Ind., Oct. 25-(U.R) Reopening of the First National Bank of Lagrange within a few days was predicted by officials of the institution today. Its reserves depleted by a "run" the bank closed its doors yesterday. Negotiations also have been opened for sale of the bank to Samuel J. Jacobs, New York City financier, owner of the Noble county bank. Jacobs was expected to reach Kendallville, his former home, today or tomorrow. His interest in reorganizing the Lagrange institution arose, in part, from his wish to own another bank in a boyhood scene. Clyde A. Walb, republican state chairman who resigned as a vicepresident of the bank a few weeks ago, denied that "excessive loans" had been made to him. He said his borrowings from the bank would not exceed $10,000. John P. Caton was elected to take his place and became acting president as result of resignation of Valentine Weaver as president. The bank had $600,000 in deposits and had been established for 60 years. Its condition was attributed to frozen assets, but the closing itself was blamed on circulation of rumors throughout the country, causing depositors to withdraw accounts. Failure of negotiations to have the Lagrange county Trust Company take over the bank preceded decision of the directors to close the doors.

4. October 25, 1927 Evansville Press Evansville, IN
Article from Evansville Press, October 25, 1927

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TUESDAY, OCTOBER 25, 1927. LA GRANGE BANK TO REOPEN SOON Walb, Republican State Chairman, Denies Charges United Press opening of the First National bank of LaGrange within the next few days was predicted by officials of the institution today. Its reserves depleted by "run," the bank closed its doors yester- Negotiations also have been opened for sale of the bank to Samuel Jacobs, New York City financier owner the Noble County bank. Jacobs was expected to reach Kendallville, his former home, today or tomorrow. His interest reorganizing the LaGrange institution arose, in part, from his wish to own another bank in boyhood scene. Clyde A. Walb. Republican state chairman who resigned as vice president of the bank few weeks ago, denied that "excessive loans" had been made to him. He said his borrowings from the bank would not exceed $10,000

5. October 25, 1927 The Daily Republican Rushville, IN
Article from The Daily Republican, October 25, 1927

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REOPENING OF LAGRANGE IN FEW DAYS PREDICTED Clyde A. Walb, Who Recently Resigned as Vice President, Denies He Has Excessive Loans WOULD NOT EXCEED $10,000 Lagrange, Ind., Oct. 25-(U.P.) Reopening of the First National Bank of Lagrange within a few days was predicted by officials of the institution today. Its reserves depleted by a "run" the bank closed its doors yesterday. Negotiations also have been opened for sale of the bank to Samuel J. Jacobs, New York City financier, owner of the Noble county bank. Jacobs was expected to reach Kendallville, his former home, today or tomorrow. His interest in reorganizing the Lagrange institution arose, in part, from his wish to own another bank in a boyhood scene. Clyde A. Walb, republican state chairman who resigned as a vicepresident of the bank a few weeks ago, denied that "excessive loans" had been made to him. He said his borrowings from the bank would not exceed $10,000. John P. Caton was elected to take his place and became acting president as result of resignation of Valentine Weaver as president. The bank had $600,000 in deposits and had been established for 60 years. Its condition was attributed to frozen assets, but the closing itself was blamed on circulation of rumors throughout the country, causing depositors to withdraw accounts. Failure of negotiations to have the Lagrange county Trust Company take over the bank preceded decision of the directors to close the doors.

6. October 25, 1927 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 25, 1927

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REMUS FUNDS IN BANK; FIND FURTHER CHECK IS OREDRED GRANGE REOPEN Walb Denies Loan Rumors: Sale Talk Rife. LA Oct. of the First National Bank of Grange within days was predicted by officials the institution today. Its reserves depleted the bank closed its doors yesterday Negotiations 'also have been opened for sale of the bank to SamJacobs, New York financier, owner the Noble County Bank. Jacobs was expected dallville, his former home, today Clyde Walb, Republican State chairman who resigned as vice president, few weeks ago, denied that "excessive loans' had been made to him. He said his borrowings from the bank would not $10,000. John Caton was elected to take his place and became acting president as result of resignation of Valentine Weaver The bank had $600,000 in deposits and had been established for sixty years. Truck Driver Will Tell of Removing Furniture at Wife's Order. CHICAGO, Oct. leged to belong to George Remus, millionaire bootlegger, and appropriated by his wife, Mrs. Imogene Remus, have been recovered in Chicago, Harry Pritzker, attorney Remus, told the United Press today. total has been found, Fritzker said. He declined say where. Remus, who shot his wife to death Cincinnati recently, charged took much his wealth and deposited it secretly in banks in various cities. Check Up Four Banks of four Chicago banks asked by Pritzker to check deposits or safety deposits made in names of Augusta Campbell, Holmes and Gray, and Brown, all of which, he said, aliases used by Mrs. Remus. The banks First Trust and Savings, Foreman's Trust and Savings, Phillips State, Rogers Park National. Depositions will be taken Thursday, Pritzker said, from Oscar Melvin, Gary, Ind., truck driver; Charles McDonald, former Chicago Superior Court judge; William police chief Evanston; Bertha Sieman Joseph Chrone. Took Furniture to Indiana He refused to reveal the testimony expected from any but Melvin. Melvin, Pritzker said, was the truck driver who transported furniture on Mrs. Remus' orders from the home of Romola Remus, daughter Remus his first wife, an unnamed destination in Indi- Pritzker said Melvin would testify that Mrs. Remus accompanied his furniture truck, some trips riding in the truck, and in others lowing and that she carried handbag in which revolver and large roll bills. Miss Remus told the United Press today would father's when he tried on charge of murdering his wife.

7. October 27, 1927 The Waterloo Press Waterloo, IN
Article from The Waterloo Press, October 27, 1927

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LAGRANGE BANK BE REOPENED VERY Jacobs of New York City May Take Over First NationBank Closed on Monday The reopening of the First Nationbank LaGrange which voluntarily closed its doors Monday, exfew days. Negotiations with Samuel Jacobs, New York financier and president of the Noble County Bank at Kendallville is expected to result the sale of the bank Mr. Jacobs. is believed that none of the depositors will lose their savings in the bank. The bank was closed when excited depositors started run on the bank.

8. October 31, 1927 Rushville Republican Rushville, IN
Article from Rushville Republican, October 31, 1927

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Walb to Resign? Speculation about Clyde Walb's status in Indiana polities is rife following the failure of the First National Bank at Lagrange and the story that rumors about Walb's financial condition led to the run on the bank. The republican state chairman was an official of the bank until recently and is reported to have been a heavy borrower. Walb is quoted as saying that he has notes in the bank, but that they total only $21,000 and are well secured. In view of the reputed connection of Walb with the bank and the report that some of his political friends are endeavoring to raise a pool of $50,000 to "see him through" his financial difficulties, demands for his resignation will be renewed, if he does not voluntarily quit. Snee the failure of the Lagrange bank, and the probability of naming a successor to Walb loomed, several names have been mentioned, among them Lawrence Cartwright, vice chairman, who would be next in line if the state commitee thought him fitted. Cartwright will not do for state chairman because of his connection with the troubles of the republican party in Indiana. lle has been identitied from the beginning with the organization which has sought to thwart efforts at ridding the party of the political leaches that are threatening its overthrow. Cartwright was one of the strong forces back of the "ripper bill" in the 1925 session of the legislature. This was the bill which sought to dislodge the state highway commission and turn it over to the politicians by placing the power of appointing the director of the commission in the hands of the governor. At present the director is appointed by the commission. Failing in having the "ripper bill" passed, the politicians seeking control of this juicey plum succeeded in having returned the 'framed" indictments by which they hoped to rid the highway commission of men who refused to consent to the looting program. Cartwright was part and pareel of this movement from the beginning and the republican state committee would be jumping from the frying pan into the fire by electing succeed Walb. What the party needs is a man who has not been in any way connected with the disreputable things that have taken place within the republican organization during the past four years, and who will have the qualities of leadership which will be necessary to lead the party out of its present state of chaos.

9. October 31, 1927 The Daily Republican Rushville, IN
Article from The Daily Republican, October 31, 1927

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Walb to Resign? Speculation about Clyde Walb's status in Indiana polities is rife following the failure of the First National Bank at Lagrange and the story that rumors about Walb's financial condition led to the run on the bank. The republican state chairman was an official of the bank until recently and IS reported to have been a heavy borrower. Walb is quoted as saying that he has notes in the bank, but that they total only $21,000 and are well secured. In view of the reputed connection of Walb with the bank and the report that some of his political friends are endeavoring to raise a pool of $50,000 to him through his financial difficulties, demands for his resignation will be renewed, if he does not voluntarily quit. Snce the failure of the Lagrange bank, and the probability of naming a successor to Walb loomed, several names have been mentioned. among them Lawrence Cartwright, vice chairman, who would be next in line if the state commitee thought him fitted. Cartwright will not do for state chairman because of his connection with the troubles of the republican party in Indiana. He has been identified from the beginning with the organization which has sought to thwart all efforts at ridding the party of the political leaches that are threatening its overthrow. Cartwright was one of the strong forces back of the "ripper bill" in the 1925 session of the legislature. This was the bill which sought to dislodge the state highway commission and turn it over to the politicians by placing the power of appointing the director of the commission in the hands of the governor. At present the director is appointed by the commission. Failing in having the "ripper bill" passed, the politicians seeking control of this juicey plum succeeded in having returned the "framed" indictments by which they hoped to rid the highway commission of men who refused to consent to the looting program. Cartwright was part and pareel of this movement from the beginming and the republican state committee would be jumping from the frying pan mto the fire by him to succeed Walb. What the party needs is a man who has not been in any way connected with the disreputable things that have taken place within the republican organization during the past four years, and who will have the qualities of leadership which will be necessary to lead the party out of its present state of chaos.

10. December 30, 1927 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, December 30, 1927

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JURY NEAR END OF BANK PROBE No. 3 Head-See Puzzle Baltzell May Get Findings of Group Today. Final report of the Federal grand jury on its investigation of the failure of the First National Bank of La Grange was expected to be made to Judge Robert G. Baltzell today. The grand jury has been investigating closing of the bank after the finding of $76,000 in alleged forged paper, and the connection with the failure, if any, of Clyde A. Walb, Republican State chairman and former bank vice president. A part of the forged paper is alleged to have been used to cover overdrafts of the Walb Construction Company of La Grange, of which Walb is president. Ledgers and papers of the defunct bank and Walb's company were perused today. Oscar E. Ross, Indianapolis, certified public accountant, who audited Walb's books until 1923, and Clyde Larue, Muncie, another certified accountant, who succeeded Ross in making Walb's audits, were called upon for explanations of their records. Other witnesses today included John F. Utt, national bank examiner and temporary receiver for the La Grange bank; H. E. Laufer and Glenn E. Paulsen, examiner for the Department of Justice. Walb Construction Company employes, bank employes and Federal accountants went before the grand jurors Thursday. Neither Walb, nor Valentine D. Weaver, former president of the bank, appeared as a witness.

11. January 1, 1928 The Cincinnati Enquirer Cincinnati, OH
Article from The Cincinnati Enquirer, January 1, 1928

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INDICTMENT Of Indiana as Violator of National Bank Act. D. Weaver Accused With Clyde Walb As Conspirator To Use Money Wrongfully. La Grange Institution Closed as Result Of Misappropriation, Is Grand Jury Charge. County Inquisitors Keep Secret Their Victim Until Arrest, But Recommend Contempt Citations. Indictments charging violation of the national banking laws and acy to violate the same were turned today against Clyde Walb, and Valentine Weaver, of Lagrange, in Federal Court. Chairman of the State Central Republican Weaver served President of the defunct First National Bank of grange June, 1927, while Walb its Vice President. Walb also is President of the Walb Construction was set for January Federal Judge Robert Baltzell. Both men are charged violations the closing of National Bank The counts. charge Walb and Weaver with The others charge specific violations banking which Weaver pictured the petrator, the TAKEN, TIS SAID. Thousands funds were appropriated by the duo, according the indictment, for himself and Walb for himself and the Walb Construction Sale of preferred of the Construction Company stopped recently by the State Securities Commission because the company sound. The indictment specifically charges his business account. covered up for him honoring the checks and entering credits to Walb's accounts whether the Chairman made posits or not, alleged. Among typical overt acts listed the indictment June 1923. Walb signed check for $306 without funds in the June 28, 1928, Weaver credited $6,000 accounts. June 1926, Weaver forged the name of Tobias Yoder to note for WHEW! 99 CHECKS. February Walb checks upon his personal account, taling when his account would cover them. The same day Weaver credited Walb's account with March Walb overdrew his account $4,601. Sixty. such overt listed under the two conspiracy counts, with Walb charged with having shettey overt of Weaver The bank was closed October 24, 1927. by Utt, Federal Bank Examiner, as temporary receiver, after Department of Justice called by him had found $75,000 forged paper. Utt took charge after run on bank. Depositors probably will be paid in full, examiners INDICTMENT IS SECRET. After returning one indictment recommending that three persons cited for contempt of court, the rion County Grand made its final report of six months' investigation today and urged all citizens to sume the responsibility their citi zenship and vote elections. The name of the person indicted novaced that man not and that the charges were to false affi Those the jury would for contempt Kiplinger, Rushville Mildred former of C. Evanaville,

12. January 1, 1928 St. Louis Post-Dispatch St. Louis, MO
Article from St. Louis Post-Dispatch, January 1, 1928

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C. Walb and V. Weaver A. Accused of Fraud on Closed Lagrange, Ind., Bank. Ind., Dec. 31. Reaching back to New Year's day to lay the foundation years ago of its indictment, the Federal grand jury today lodged charges of conspiracy violate the national banking laws against Clyde Walb, chairman of the Repubtican State Committee, and Valentine D. Weaver. Bond be set and an day fixed by Judge of arraignment Thomas W. Slick of South Bend. president and Walb vice president the First National Bank of Lagrange until Aug. 1927, when they resigned and John Caton vice president and acting president. After run on the bank two later the closed Oct. 24. John Utt, Federal banking examiner, appointed temporary receiver. Utt turned report to the troller of Currency in WashThis report, understood, referred to the Department of whic sent Glenn aulson, Federal accountant. go over the bank's books. Paul has been of the principal before the grand jury in its four days' taking of evidence. According ot the indictment, the procedure that and the Walb Construction Co., of which he president, kept accounts the bank and continually drew checks against them am larger than the funds the bank falsely the benefit Walb and Walb accused and abetting the alleged acts. There are 12 the indictments. the first nine counts overt acts carries with fine up to $5000 of not more than in the penitentiary. Each last three counts carries upon of confine up to and imprisonment of not more than two

13. January 1, 1928 The Star Press Muncie, IN
Article from The Star Press, January 1, 1928

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WEAVER IS HELD WITH CHAIRMAN OF Face Charges of Conspiracy to Violate the National Banking Laws. ALLEGED FRAUD RUNS BACK FOR SIX YEARS Indianapolis, Dec. Reaching back to New Year's Day six years ago to lay the foundation of its indictment, the federal grand jury today lodged charges of conspiracy to violate the national banking laws against Clyde A. Walb, chairman of the Republican state committee, and Valentine D. Weaver, former president of the defunct First National Bank Lagrange. The indictment tained twelve counts and ated scores of alleged acts of the defendants. The first nine counts charged that principal, abetted" fraud ulently misapplied funds the bank and falsely forged credits for the benefit of Walb sonally, and of the Walb Construetion Company, of which he president. other three counts, blanket fendants jointly with conspiracy do the contrary banking the United States. Jury Goes to Judge, morning spent by Albert district attorney, and his sistants preparing, checking and indictment, the grand jurors heard the charges voted the indictment, left their chamber and trudged groups their foreman, Theodore Stunkle, of Haubstadt, the library of Judge Robert Baitzell. Stunkle, his feet and seven inches towering above his the indictment to the judge without comment. "This completes your work?" the court asked. does," Stunkle replied The court excused the jurors ject call and them for The indictment public by Ward. brought in the Wayne division the district courts of Indiana, in which located. Warrants will Fort Wayne, where the deputy marshal will Walb and probably early week. Bond will be arraignment day fixed Judge Thomas Slick, of South Bend, whose jurisdiction the automatically now transferred. Back to January 1922. The first date in the charges January 1922, when Walb and Weaver charged with starting the alleged conspiracy which the indictment undertook to trace from that date until June 1927, the date the last overt president, and Walb vice-president throughout riod. They continued hold those positions until August 1927, when they resigned and John Caton acting president. bank In rectors closing October turning its affairs over to Utt, federal banking was appointed temporary Utt its and turned report to the comptroller currency Washington which, understood. transferred the Department of Justice. The latter agency Continued Third Page.

14. January 1, 1928 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, January 1, 1928

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MORE CHARGES FOR INDIANA OFFICERS Grand Jury Goes Back 6 Years For Foundation For Conspiracy Indictments IND., Dec. back New Year's Day years ago the its Grand Jury today lodges conspiracy violate the banking laws Clyde chairman the Republican State Committee Valentine Weavformer the defunct First National Bank of LaGrange The indictment of alleged The first nine charged that principal and Walb, 'aided abetted" Weaver, fraudulently misapplied funds the bank and entered forged credits for Walb and the Company which The other counts, charged the defendants with conspiracy to acts contrary the national banking The was brought the Fort case Indiana LaGrange located Warrants will sent Wayne, where the marshal on Walb and early Bond will and an day Slick the case The first date the charges when Weaver are charged starting the alleged conspiracy the date June 1927, the date of the last Weaver was president and Walb was president throughout the to hold positions until when they resigned and vice dnet and acting president. run on the bank months later closing 24 and turning its affairs over John Federal banking examiner, was appointed temporary receiver tigated its affairs and turned report the currency Washington, which understood, was ferred to the The sent out Glenn Paulover the Paulson has been the the Grand Jury in four-day taking of evidence the The nine counts against Weaver each set forth which trace through the state the Federal law violated by the action and name who aided and abetted Weaver. other charge of the carries fine not than five the penitentiary Each the last carries upon conspiracy, fine $10,000 and of not than officials office, the penalties with equal force both deof conviction INQUIRY ENDS. months inquiry political Indiana ended today discharge of Marion County Jail Grand Jury after had added another name list indicted which ready included Ed Jackson and public officials recommending that no further general investigation into charges political intrigue, the Jury that the inquiry be continued into the report that Ralph Updike, the Indiana Distract the Ku Klux Klan and life term in the Michigan City state prison The investigation should be only the that the Grand next Monday, finds been an conthe fact had the report alleged contract Steph enson and Updike, the Grand Jury said further gation the may find the fact was committed and they that the prosecutor proceed with such investigation.

15. January 5, 1928 Garrett Clipper Garrett, IN
Article from Garrett Clipper, January 5, 1928

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WANTS CLYDE WALB TO TAKE BACK WORTHLESS STOCK LaGrange. Dec. 31. Clyde A. Walb, chairman of the Republican state committee. became involved in other litigation in connection with the closing of the First National Leaves bank here when suit was filed 3:50 a. m. against him for unlawful sale of bank stock Edward A. Olney, wealthy farmer and director of the defunct bank. filed suit against Walb, asking that he take back 50 shares of the bank stock bought last August According to Olney's suit. Walb sold 50 shares of the bank's stock to him for $155 per share when its par value for the 50 shares was $5,000. Olney owned stock in the Walb Construction company at the time and it is understood that part of that stock was traded for stock in the bank. Olney already owned 50 shares of stock in the bank and was a director of that institution at the time of the latest transaction. Olney charges hat Walb knew the bank was insolvent when he sold him the stock. Assessments of 100 per cent have been made against each of the stockholders. This would make Olney's assessment $10,000. He seeks to force Walb to buy back half of the stock before he must satisfy the assessment. A deal has been made whereby Mr. and Mrs. Harry Cain of Butler have taken over the ownership and management of the new Whitley theatre at South Whitley.

16. January 5, 1928 Garrett Clipper Garrett, IN
Article from Garrett Clipper, January 5, 1928

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WALB INDICTED IN FAILURE OF LAGRANGE BANK Indianapolis, Dec. 31.-Clyde A. Walb, of LaGrange, republican state chairman for the last three and onehalf years, and Valentine Weaver, also of LaGrange, were indicted by the federal grand jury today in connection with failure of the First National bank of LaGrange. Walb was formerly vice president of the bank and resigned after the Walb Construction company of which he was president became involved Weaver was president of the bank. Walb's home at LaGrange was reached by telephone shortly after the indictment was reported. Mrs. Walb said he had just left the house. Walb and Weaver will be arraigned before Judge Robert C. Baltzell, in U. S. district court January 7. it was announced. Neither was under arrest. Ten separate charges were made against Weaver alone and three jointly against Weaver and Walb. Those against Weaver charge false entry, abstraction and misapplication of funds. The joint counts accuse them as officers of the bank of abstracting a $4,000 note signed by Samuel Wier and giving it to Wier without paying it off to the bank. They also are charged with conspiring to misapply and abstract funds for the use and benefit of themselves through the Walb Construction company and with making false entries to deceive National bank examiners. The bank was closed Oct. 24. 1927. by J. F. Utt. federal bank examiner. serving as temporary receiver, after department of justice agents called by him had discovered $76,000 in forged paper. Utt took charge after run on the bank. Weaver resigned as president last June after a director had learned some of the bank's paper was not genuine. Weaver was said to have told directors some of the money obtained with this paper was used to cover overdrafts of the Walb Construction company Walb denied his company's difficulties had been tided over by forgery of the names of others. but ma de good the amount at once. The bank is expected to be able to repay depositors almost in full through Silas D. Weaver, brother of the former president. who turned over his personal fortune of $25,000 to minimize the loss. Weaver served as pr sident/ for four years. He worked from 6 a. m. until late in the night during the time and refused to take a vacation. No one else handled the note ledger in the bank. His hard work and benevolent and philanthropic efforts made him highly popular in the community. He was superintendent of a Sunday school. Walb has been republican state chairman during a stormy time for the party. Faced with financial ceveres, he announced recently the would resign his position in the party soon. Failure of the bank was followed by collapse of the LaGrange Hardware Co. LaGrange Fixture Sales Co. and smaller merchants.

17. January 6, 1928 The Plain Dealer Cleveland, OH
Article from The Plain Dealer, January 6, 1928

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GON BARES FRAUD RING Charge of Cruelty Suffered in State Prison. (Plain Dealer Special) KoKoMo, Ind., Jan. 5.-State wide banking frauds under the Klan regime involving several public officials in the handling of state funds are alleged in the latest charges to be broadcast by D. C. Stephenson, former Klan dragon and political czar, from his lifer's cell at the state prison. After interviewing Stephenson regarding Klan interests in the bankrupt American Trust Co. here. Prosecutor Homer Miller and Grover Bishop, bank receiver, said they heard startling story. never told before, of manipulation of large sums of public money. Stephenson also renewed charges that have suffered many cruelties at state prison. have been forced into dungeons, forced to lie on a bare cement floor, stripped naked and flogged with rubber hose, blasted with cold air streams and down to only two glasses of milk Warden Sees Jackson Indianapolis this afternoon den Walter Daly of state prison into secret conference with Ed Jackson who. as secretary estate. permitted the Klan to be chartered in Indiana and who then was supported for governor by Stephenson himself. Daly was appointed Warden by Jackson Miller and Bishop asked Stephenson about $30,000 in cashier's checks to Stephenson found in the bank vaults. Stephenson picked out seven or eight checks which he said represented illegitimate transactions between himself and officers of the bank and went on to say: "If your grand jury will hear me I will unfold an amazing intrigue in connection with state wide banking frauds and handling of deposits of state money such as you have never dreamed of." Names "Brains." Stephenson named specifically the "brains" of the clique engaged in 11legal banking practices and frauds and also listed twenty individuals involved in the alleged conspiracy Clyde Walb Republican state chairman, was indicted last week for violation of federal banking laws as R. result of the failure of the First National Bank at Lagrange, Ind. One Davies, former state treasurer: Jer Symons, present state bank asioner. and Thomas D. Barr, for Symons. have been inin connection with the bmo Bank failure. ller and Bishop said they were ted courteously by Daly and officials. The interview was the presence of guard, but the guard remained beyond hearing distance. FORT WAYNE Ind., Jan. 5.Frank A. Cutshall. vice president of the Old National Bank of Fort Wayne, has been appointed receiver for the Walb Construction Co. of Lagrange, dredging concern of which Clyde A. Walb. Republican state chairman. is president.

18. January 6, 1928 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, January 6, 1928

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FIGURES $118,000 DEBT Receiver for Walb Company Estimates Amount Owed. Times Special FT. WAYNE, Ind., Jan. 6.-The Walb Construction Company owes $118,000, according to an estimate announced here by Frank R. Cutshall, vice president of the Old National Bank and receiver for the company. Clyde A. Walb, Republican State chairman, is head of the company. He with Valentine Weaver, former president of the First National Bank, La Grange, is under indictment by a Federal grand jury on charges of irregularities in management of the bank, which failed recently.