Bank of Redkey (Redkey, IN)

Episode Information

Episode UID
3112014691483
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
311201469 hash
Start Date
July 20, 1923
Location
Redkey, Indiana (40.349, -85.150)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
9e6acc38bff8e705

Response Measures

None

Description

Bank closed to forestall a feared run after malicious gossip; later placed in receivership.

Events (2)

1. July 20, 1923 Suspension
Cause
Rumor Or Misinformation
Cause Details
Directors closed the bank to forestall a feared run after malicious gossip circulated alleging the bank had failed.
Newspaper Excerpt
When the bank at Redkey closed its doors Saturday evening and sent for a bank examiner, it had $8,000 to the good in its safe. The bank officials took the step they did to forestall a run on the bank which they feared would come after malicious gossip to the effect that the bank had failed had been spread about the little town.
Source
newspapers
2. August 30, 1923 Receivership
Newspaper Excerpt
The Union State bank, just organized at Redkey, has been appointed by Judge R. D. Wheat in the Jay circuit court as the receiver for the Bank of Redkey and the Farmers' State bank, the two Redkey institutions which recently closed their doors.
Source
newspapers

Newspaper Articles (16)

Article from The Fort Wayne News And Sentinel, July 20, 1923

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BANK CLOSES ITS DOORS WITH $8,000 TO GOOD (SPECIAL TO THE NEWS-SENTINEL) PORTLAND, Ind., July 20.—When the bank at Redkey closed its doors Saturday evening and sent for a bank examiner, it had $8,000 to the good in its safe. The bank officials took the step they did to forestall a run on the bank which they feared would come after malicious gossip to the effect that the bank had failed had been spread about the little town. Bank Examiner Fred J. Whicker said that the bank is sound. Every depositor will be paid every cent. The bank may reopen, but when it does it may be in consolidation with another bank.


Article from The Daily News-Tribune, July 21, 1923

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STOCKHOLDERS BIG LOSERS IN BANK FAILURE Fraud Run On Bank Because Of Gossip—Closed Doors Fred J. Whicker, state bank examiner, who has been working on the books of the Bank of Redkey since this old and reliable institution was forced to close its doors first of the week, is credited with having made the statement that the affairs of the bank are in no worse condition than many other banks, still operating over the state, and which Mr. Whicker has examined. It was his opinion that the Redkey bank could have continued to do business had it not been for "gossip" that had been spread about Redkey and surrounding county of the bank's failure. This word reached Redkey last Saturday night and is said to have originated in Portland. Fearing that there would be a "run" on the bank if it were opened for business Monday morning, the directors, in session there Sunday, decided to close the doors, pending plans for refinancing the institution. The stockholders in the bank will be the heavy losers as an assessment of nearly one hundred per cent will be made among them to make the settlement with depositors whom, it is said, will be paid in full.—Portland Sun.


Article from The Greenville Democrat, July 25, 1923

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STOCKHOLDERS BIG LOSERS IN BANK FAILURE Fraud Run On Bank Because Of Gossip—Closed Doors Fred J. Whicker, state bank examiner, who has been working on the books of the Bank of Redkey since this old and reliable institution was forced to close its doors first of the week, is credited with having made the statement that the affairs of the bank are in no worse condition than many other banks, still operating over the state, and which Mr. Whicker has examined. It was his opinion that the Redkey bank could have continued to do business had it not been for "gossip" that had been spread about Redkey and surrounding county of the bank's failure. This word reached Redkey last Saturday night and is said to have originated in Portland. Fearing that there would be a "run" on the bank if it were opened for business Monday morning, the directors, in session there Sunday, decided to close the doors, pending plans for refinancing the institution. The stockholders in the bank will be the heavy losers as an assessment of nearly one hundred per cent will be made among them to make the settlement with depositors whom, it is said will be paid in full.—Portland Sun.


Article from The Star Press, July 27, 1923

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DECIDE ON PLAN TO REOPEN BANK Depositors of Redkey Institution Will Buy $91,000 Worth of Questionable Paper. Redkey, Ind., July 26.—Over 500 men and women, stockholders and depositors of the Bank of Redkey, met in the Knights of Pythias hall last night to hear plans for the reopening and the refinancing of the bank in a short time. Redkey and Richland Township citizens will be given an opportunity to take as much stock as they desire in the new institution, and what is left will be taken by outside persons. Fred J. Whicker, state bank examiner, after going over the papers of the bank, found $91,000 of unbankable notes, many of which are said to be collectible. Thomas Barr, deputy bank commissioner, presided at the meeting. Dell Dragoo, who gave a talk relative to the welfare of the depositors, stated that it would be necessary to raise $35,000, in addition to the assessment made on the stock, before the bank could be reopened. The plan approved by the depositors present provides that the depositors buy the $91,000 worth of questionable paper by giving in return 25 per cent of their deposits now in bank, which would raise the $30,000. Bankers Make Suggestions. Brandt C. Downey, vice-president of the National City Bank of Indianapolis, and E. E. Blackburn, president of the Marion National Bank, both suggested plans in their talks for the reorganizing of the bank. J. M. Adair, former congressman; A. A. Adair and J. A. Long, of Portland, all stockholders of the Bank of Redkey, made talks. W. M. Appenzeller, dry goods merchant, and C. C. Ayres, lumber dealer of Redkey, both heavy stockholders, each offered $1,000 free to help to re-establish the bank and likewise offered to take stock. The depositors will practically be paid in full. In addition to the 100 per cent assessment on the stockholders, the stock will be surrendered.


Article from The Star Press, August 5, 1923

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MAY KEEP REDKEY BANK FROM RECEIVER'S HANDS Redkey, Ind., Aug. 4.—Through the efforts of William Appenzeller, C. C. Ayers, Alpheus A. Adair, Lee Williamson, Morris Stults and W. C. Hoppess to keep the Bank of Redkey from going into the hands of a receiver, the necessary amount of $35,000 has practically been raised. Fred J. Wieker, state bank examiner, who has been in charge of the bank stated that the next step necessary would be the selling of the $25,000 worth of stock for the new institution. Local persons will be given the first preference. Mrs. Mary Brown, who has been employed at the Bank of Redkey for a number of years, left today for Syracuse, N. Y.


Article from The Indianapolis Times, August 10, 1923

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Second Redkey Bank Closes By Times Special REDKEY, Ind., Aug. 10.-A depositor's run has closed the Farmers State Bank. Several days ago the bank of Redkey closed under similar conditions. A meeting of the stockholders will be held Aug. 17 and it is thought a new bank to be known as the Union State Bank of Redkey will be opened as a result of the consolidation of the two.


Article from The Fort Wayne News And Sentinel, August 10, 1923

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(SPECIAL TO THE NEWS-SENTINEL) PORTLAND, Ind., August 10.—Following what might be termed a run on the bank for the past several days, the Farmers' State bank, Redkey's second banking institution, closed its doors yesterday, the directors taking this action, it is said, on advice from Deputy State Bank Commissioner Thomas S. Barr, who has been there for the past several days. The directors decided to close the bank until such a time when the consolidation with the other bank—the Bank of Redkey—which was forced to close its doors several weeks ago because of financial difficulties, can be formed. A meeting of the directors of both banks has been called for Friday afternoon at 2 o'clock, August 17. The meetings will not be held jointly and the stockholders will then ratify the action of the directors of the banks taken toward consolidation. In Colored Circles (By Sella Smith.) Mr. and Mrs. J. H. Johnson gave a reception at their home on Winter street recently in honor of their twentieth wedding anniversary. The rooms were beautifully decorated in pink and white, with large vases of pink and white gladiolus and roses in the living room. The appointments of the refreshments were in the same color. Mr. and Mrs. Silas Miles who were maid of honor and groomsman at the wedding 20 years ago received with Mr. and Mrs. Johnson. Mrs. Anna McCord furnished the music. Little Carrie Josephine Black received at the door while Mrs. Margaret Black presided at the punch bowl. Miss Juanita Peters and Master Melvin Brown served. Mrs. Lulu Peters, of Indianapolis, Mrs. Minnie Giles, Mr. and Mrs. Monroe Harris and John Britton, of Marion, were the out of town guests. Mrs. S. P. Jones, of 1229 Hayden street entertained with a luncheon recently in honor of Mrs. Claude Peters of Indianapolis. Mr. and Mrs. W. A. Ganaway have gone to Laconia to attend the funeral of the former's mother, Mrs. Florence Ganaway. Mr. and Mrs. George Williams have returned home from Kokomo where they attended the funeral of the latter's stepmother, Mrs. Rilla Ballanger. Miss A. Elizabeth Abbott, who has been attending the Community Service school in Chicago for two weeks has returned home. Deloris Curl, of Marion, is spending the remainder of the summer with her aunt, Mrs. S. P. Jones, of 1227 Hayden street. The churches and laity of the city are about to unite in a movement to advance the interest of the colored and foreign population of the Rolling Mill district, now officially known as "Westfield." The beautiful brick church for sometime out of use and dismantled will pass under the ministration of the Rev. Simms, and will be known as Shiloh Baptist church. Installation services will be held on Sunday afternoon, August 12, and immediately following entertainments of different character, will be given for the purpose of restoring the inside furnishings, pulpit, choir railings, etc. Mrs. Jackson of the Phyllis Wheatley Center will take charge of some other interesting features. V. O. Ridley, Dentist moved to 1020 Harrison first door south of New Keenan hotel. HICKSVILLE NEWS Miss Della Kyle has been in Toledo where she has been a guest of friends... Helen Newton, of Fort Wayne, has been a guest at the Mrs. Clara M. Wiety home... Charles D. Connor has arrived from Long Beach, Cal., to spend the next six months with his mother, Mrs. Florence Conner... Mr. and Mrs. J. E. Berger and daughter, Helen, of Kalamazoo, are here for their annual vacation at the Simon Shank home... Miss Ona Fowler, of North Adams, Mich., has been a guest at the E. F. Armstrong home. Miss Fowler is a former teacher in the Hicksville high school, but has taught the past two years at Fulton, Mo., and has been re-employed for another year... The Rev. Charles Oakley, wife, and two daughters, of Chicago, have been here to visit at the Simon Shank home... Mr. and Mrs. J. T. Venable and two daughters, of Eton, Ohio, and Mr. and Mrs. Dan Thomas and daughter, of Louisburg, Kan., have been guests of Mr. and Mrs. L. B. Phillips... Mrs. George Gilbert and Mrs. Martha Fish have been at Wooster, where they attended the annual reunion of the Miller family. Mrs. Fish will visit relatives in Medina county... Mrs. Walter Kobler, of Waverly, Mass., is here to visit at the Mr. and Mrs. Sherd Dowell home. Mrs. Kobler will also visit a sister at Dayton before returning home... Mr. and Mrs. H. F. Cartwright and son, of Cleveland, have been guests of Mrs. G. A. Farrah and Mrs. Bernice Kerr and Mrs. Mary Hanna here. From Hicksville they went to Hamilton lake for a week's outing at the Kerr cottage... Mrs. Fern Drake, of Tiffin, is a guest for a week at the Willis Aten home... Will J. Cuppy, of New York city, has arrived here to visit his mother, Mrs. J. W. Lilly... Mr. and Mrs. James Furnish, of Ada, Oregon, are here to attend the Dorsey family reunion and visit relatives. Mr. Furnish left this vicinity 18 years ago. This is his first visit to the old home community. Mr. and Mrs. Furnish made the trip by auto... Miss Lillian Swanson has gone to Angola to visit a friend and will leave soon for Sandusky, where she will assume her position as a teacher in the schools there... Mr. and Mrs. Arthur Driver, of South Bend, are here for a week as guests at the Joe A. Mann home... Mrs. Tom Clark and children, of Toledo, have been guests of relatives here... Mr. and Mrs. J. E. Shirley and Mr. and Mrs. H. H. Stralley, of Toledo, have been guests at the E. M. Bilderback home... Miss Erma Hilbert has been spending her vacation with her parents, Mr. and Mrs. Charles D. Hilbert. Miss Hilbert is a stenographer at the White Cross hospital, Columbus, Ohio... Mr. and Mrs. J. H. Billerbeck, of Tampa, Fla., are here to visit at the E. M. Bilderback home... Carmi Shafer, of Pittsburgh, is here to spend his vacation with his mother, Mrs. John Shafer... Mrs. Gust Karageorge and son, Ted, have been in Garrett, guests of Mr. and Mrs. Christ George... Mr. and Mrs. Wayne Bilderback, who are attending school at Ohio Northern university at Ada, have been guests of Mr. and Mrs. E. M. Bilderback... Mr. and Mrs. Arthur Breininger, of Pontiac, Mich., have been guests of Mr. and Mrs. G. A. Thompson. Let us have your ad in time for our big Saturday Classified Section. Phone it, bring it in, or notify us and a solicitor will call. Phone Main 100. Do it now! It takes about 300 ermine skins to make the average Siberian ermine wrap.


Article from The Fort Wayne News And Sentinel, August 30, 1923

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Bank Receivers Named. (SPECIAL TO THE NEWS-SENTINEL) PORTLAND, Ind., Aug. 30.—The Union State bank, just organized at Redkey, has been appointed by Judge R. D. Wheat in the Jay circuit court as the receiver for the Bank of Redkey and the Farmers' State bank, the two Redkey institutions which recently closed their doors.


Article from The Fort Wayne Journal Gazette, August 30, 1923

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RECEIVER APPOINTED FOR REDKEY BANKS Joint Trusteeship Is Given by Court Into Hands of New Financial Institution PORTLAND, Aug. 29.—The Union State bank, of Redkey, was appointed receiver this morning for Redkey's two defunct banks—the Bank of Redkey and Farmers State bank—by Judge R. D. Wheat following a hearing held in the circuit court. Attorney Frank Jaqua, representing the Bank of Redkey, showed that stockholders and depositors in the bank favored the appointment of the Union State bank as receiver. There is something like $400,000 owned by depositors in this bank and it was said those who signed the petitions represented over $280,000 of this amount. There were one hundred or more depositors and others interested in the two Redkey banks, who appeared in court during the hearing this (Continued On Page 2, Column 6)


Article from The Richmond Item, October 26, 1924

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COURT NEWS Marriage Licenses William Everett Prescott, 23, proprietor of pool room and Margaret Ellen Scholl, 20, housekeeper, both of Union City. Divorce suits have been filed by Lennie M. McGunnejill against Emmett H. McGunnejill and Worly E. Duncan against Josie Duncan. Union State Bank, Receiver of the Bank of Redkey has filed suit against Willard Silvers, Claudia L. Silvers,


Article from The Indianapolis News, December 10, 1924

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AGAINST BANK RECEIVER Friendly Suit Filed in Redkey Case to Determine Liability. [Special to The Indianapolis News] PORTLAND, Ind., December 10.—Suit to recover liability of stockholders in the defunct Bank of Redkey, of which the Union State Bank of that place is receiver, was filed in the Jay circuit court yesterday by James R. Fleming, attorney, in the interest of the Cline-Ayres Lumber Company, of Redkey, against Clement L. Arthur and sixty-one other stockholders of the bank. The suit is a friendly one and its purpose is to ascertain the total liabilities of the Bank of Redkey, also the liability of each stockholder, this to be fixed by the court and judgment given against each of the stockholders for the amount, also that all other depositors and creditors of the bank be enjoined from bringing separate suits against individual stockholders, and that a receiver, aside from the regularly constituted receiver of the bank, be appointed to collect the amount of liability from each of the stockholders and make a distribution to creditors.


Article from The Star Press, January 21, 1925

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boy, who was arrested Sunday night for intoxication after returning from the Mills Lake dance. Proctor's bond was placed at $2,000, and, being unable to give it, he was remanded to jail. Judge A. L. Bales rendered his decision today in the divorce proceedings of May Cox against Ottiwell Cox. He gave the plaintiff a divorce and $1,250 alimony. A complaint on notes to foreclose a chattle mortgage and a demand for $5,500 was filed in Circuit Court today by the Union State Bank, receiver of the Bank of Redkey, against Robert Luzadder. The suit was venued from the Jay Circuit Court. A suit on note has been filed by the Farmers and Merchants Bank against Leander H. Bosworth. GUARDSMAN IS HELD Fred Jones, a member of the Indiana National Guard, was arrested last night by Detective Cunningham on a warrant charging him with failure to report for drill at the armory.


Article from Palladium-Item, June 3, 1925

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judge deferred sentence until SaturJune Clarence E. Austin has filed a com plaint against Ray Engle for foreclosure of Mechanic's Lien. Catherine Ryan VS. Harlod M. Benson, et al, complaint on promissory note was filed here Tuesday William Rodenheffer has filed suit against Marion Gordon et al, to collect a promissory note. Helen North. an infant by George Crivy, has filed suit against Margar et North et al to contest a will. The case was brought here from Jay county The Union State bank receiver for the bank of Redkey has filed suit against Jacob C. and Fay M. Weaver, to collect note and set aside fraud ulent conveyance, brought to this county on a change of venue from Jay county.


Article from The Star Press, June 10, 1925

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REDKEY DEPOSITORS GET PART PAYMENT Fourth Distribution of Funds of Two Defunct Banks Made. Redkey, Ind., June Union State Bank, receiver for the old Bank of Redkey and the Farmers' State Bank, which were closed two years ago, made the fourth distribution of funds to the depositors of two banks today. Morris Stults is in charge of the work The distribution today 20 per cent of the original deposit at the Farmers' State Bank cent at the Bank of Redkey The Farmers' State Bank has paid the Bank of Redkey has paid 50 per cent. Redkey Short Notes. The town board has purchased new pipe-pulling to be used by George plant. Jesse Neely and Dott Barley taking the male census of The Indiana General Service Company begin short time to rebuild its lines Redkey


Article from The Star Press, July 31, 1925

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ASKS RECEIVER BE APPOINTED Baker Mould Company, of Dunkirk, Sued by Receiver of Redkey Bank. ing the appointment of a temporary was filed in the Jay Circuit Court, today by the Union State Bank, receiver of the Bank of Redkey, against the Baker Mould Company, of Dunkirk The complaint alleges the organized in 1923 for the of for glass products and that the owns tools ment property of $3,000 the par of $100 common shares issued at the value $5,300 of which the plaintiff the of shares. complaint states that the and officers of the company unable upon management and by their the assets the are being there against the company amounting to more than To Municipal meeting of the city council evening voted of the the in that the the Don Driscoll of the latest presented of the proposes plant here period of Other for broached the Indiana GenCompany York Winchester, and the Insull Public Invited to Test. and repairs made purposed to rect the be tested evening the city seven strings of strings fire truck put under Chief ruins rear the has been invited the completed the water and leaks of of of been invited will Portland lodge Penny this will today where they Miss Dorthea graduated Miami University will the schools coming term.


Article from Muncie Evening Press, December 30, 1927

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JUDGMENT OF $7,000 GRANTED BY COURT Ind., Dec. ment of $7,762.32 has been awarded the Aetna Life Insurance Company against Lucinda Stratton. Wilfred Stratton, the Union Sate Bank, receiver of the Bank of Redkey, Wellington Doddridge, Henry W. Lonknecker, Ward Bell, Powell, Wolfe and John W. Holmes, receiver of the Farmers State Bank of Portland. The judgment was awarded the insurance company by Judge R. Wheat Circuit Court on its notes, mortgag and receivership suit. Frank of this city, was named as receiver of the real estate in Jay County involved in the suit possession of the and he was given and placed under $1,000 property bond. English is spoken by about 000,000 people.