5733. First Trust (Hammond, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
March 3, 1931
Location
Hammond, Indiana (41.583, -87.500)

Metadata

Model
gpt-5-mini
Short Digest
8cb86f34

Response Measures

None

Description

Articles describe First Trust placed in receivership, liquidation of assets, payments to depositors, and a long assessment suit against stockholders. No contemporaneous run is described; the bank was closed and in receivership (per receiver Harry Folk) and appears permanently closed.

Events (5)
1. March 3, 1931 Receivership
Newspaper Excerpt
FIRST REPORT OF RECEIVERS IN 15 DAYS ... report of the for First Trust ... the receivership has collected about $100,000 cash ... the receivership staff conducting the investigation which the receivership staff conducting ... Mr. Folk, receiver of the bank ... $1,000,000 suit against stockholders of the institution (later articles). (combined excerpts). This indicates the bank was in receivership under Harry Folk and legal action against stockholders was under way.)
Source
newspapers
2. March 3, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank had poor/insufficient assets; placed in receivership and in process of liquidating collateral and assets to pay depositors.
Newspaper Excerpt
FIRST REPORT OF RECEIVERS IN 15 DAYS ... the receivership has collected about $100,000 cash ... the bank to and amount will to order to collect collateral that collateral will be liquidated cash and that amount be paid the initial installment
Source
newspapers
3. June 6, 1931 Other
Newspaper Excerpt
7 YOUNGSTERS RECEIVE FIRST BANK PAYMENT ... the first payment has been paid out of defunct First Trust ... Superior Judge Clyde Cleveland ordered funds ... The money had been in the First Trust ...
Source
newspapers
4. June 30, 1931 Other
Newspaper Excerpt
LEVER ACT IS COMMENDED ... buying the deposit books of their First Trust ... paid its for dollar deposits held by them in the closed institution ... The total reported $32,000.
Source
newspapers
5. July 19, 1933 Other
Newspaper Excerpt
FIRST TRUST ASSETS TWO MILLION SHORT ... evidence of suspended First Trust ... fall short introduced ... in Porter Circuit court ... $1,000,000 suit against stockholders of the institution ... present and former directors of failed 1931.
Source
newspapers

Newspaper Articles (9)
1. March 3, 1931 The Times Hammond, IN
Article from The Times, March 3, 1931

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Article Text

FIRST REPORT OF RECEIVERS IN 15 DAYS Initial Payment to Depositors Will Depend on the Report to Court The first report of the for First Trust and the to Judge Clyde Cleveland Hammond superior court No. within 15 according to Murray Turner, of the joint This report, Mr. Turner mandatory under the law. outline the results of the investigation which the receivership staff conducting If the conversion of assets by time has sufficiently justify an initial payment positors, court, no doubt, will payment then. Mr. Turner explained that the ceivership has collected about $100,000 cash. However, the bank to and amount will to order to collect collateral that collateral will be liquidated cash and that amount be paid the initial installment "The pay the as and at the least first and the of (Continued on Page Eight)

2. June 6, 1931 The Times Hammond, IN
Article from The Times, June 6, 1931

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Article Text

ARGUMENT OF DEMURRERS TO BE FEATURE No Date Has Been Set Yet for Hearing of Bank Assessment Suit Argument of demurrers, of which based on the same points of law, feature the opening session in the $1,000,000 assessment suit of the receivers of the First Trust and when heard Judge Porter county, it was indicated today. Crumpacker received the yesterday venued from the court of Judge Clyde Cleveland in Hammond What is believed most atto chief obstacle the assessment the demurrer which filed by Attorney M. Eliott Belshaw on behalf of his father, Will Belshaw, of the 233 Belshaw is member of the Hammond firm of Belshaw, Huebner and Belshaw. His the to be filed against the suit, declares that are without right common bringing their in 1915 under brought did not apply and, statute did apply has since been expressly repealed by the legislature in 1929. Other law firms which demurred the same grounds Tinkham and Galvin, William Whinery, John Sawyer, of Hammond, Draper and Draper, of Gary, and Pattee and McMahon of Crown No date has been set for the opening argument the Certified copies the court to Valparaiso, however, and the hearing expected next

3. June 6, 1931 The Times Hammond, IN
Article from The Times, June 6, 1931

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Article Text

No Date Has Been Set Yet for Hearing of Bank Assessment Suit Argument of demurrers. of which on the points of law, will opening session in suit First Trust heard by Judge Crumpacker of Porter county, it indicated Crumpacker received the yesterday it venued from court of Superior Judge Clyde Cleveland in Hammond What is believed by most torneys to be chief obstacle to the suit is demurrer which Attorney M. Eliott Belshaw behalf his 233 member of the Hammond of Belshaw, Huebner Belshaw demurrer, the first to be filed against that receivers are without right bringing their suit: in 1915 brought did if statute did apply has expressly repealed by the in which murred same grounds Galvin, William and Pattee McMahon of Crown Point been for the opening the Certified copies the forwarded to however, the hearing to next week.

4. June 6, 1931 The Times Hammond, IN
Article from The Times, June 6, 1931

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Article Text

7 YOUNGSTERS RECEIVE FIRST BANK PAYMENT Seven ranging form less this the first pay ment of has out of defunct First Trust and ings for each Mrs. dep. uty had held Madelyn Krizmanic to desk that she could her mark on the Krizmanic children dividing $514 estate left by their brother, he was killed in an accident the Indiana Harbor Belt railroad in September of Superior Judge Clyde Gleveland ordered funds he of the destitute the The money had in the First Trust by administrator of young Krizmanic's

5. June 30, 1931 The Times Hammond, IN
Article from The Times, June 30, 1931

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Article Text

LEVER ACT IS COMMENDED The action of Lever Brothers comin buying the deposit books of their First Trust and met hearty by the board directors of the Hammond Chamber of Commerce last night. The passed resolution praisIng Bruce Vernon, plant manager, and company represents for its hupolicy. Lever Brothers instituted its policy the of last week. paid its for dollar deposits held by them in the closed institution. The will wait for the the bank liquidate assets before receive amount out. The total reported $32,000.

6. September 17, 1931 The Times Hammond, IN
Article from The Times, September 17, 1931

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Article Text

cuting attorney of Lake county, had said that county too him, don't the force that staying his hand, although there must such "That confronting your honor today. When our duly elected public officials will not perform the of their offices, the only thing left is present matters courts of law. am convinced the prosecutof his office calls under Estill court time this upon made, but his said somecaustically: cannot understand have from o'clock find that Mr. Estill and myself had force operating prevent doing should lose sight of the fact that in the past eight months, 1,027 cases filed criminal court. great find to be first cannot keep these jail than absolutely Underwood Metz started verbal wrangle meaning term facto which been used discussions of the statute of limitations. The chief deputy prosecutor ques. tioned Metz's knowledge term, stating that its literal includes passed after mitted within federal BACK TO SUBJECT Metz not his the flung the additional the question, but interrupted his principal fine statute but present the of the have been considered the prosecuting Metz immediately delved into loans the officers bank themselves. these matters, his had been Estill, silent took exception to this court for the observed prosecurising his remarked the first WOULD Estill ignored the taunt. plained the court that did propose make public his evidence that could his personal publish in replied that every person should be to heard and all Judge the pending the the statement that desired talk would heard. Rev. Horton of the First Baptist addressed court the latter's He said the of Estill, but ought be because of the time he has voted Caleb White, also of Hammond He he of the bank's and he the worth of most of them. He First Trust the shares that expedite liquidation the bank's assets. All stockholders and should be made to pay their just claims, White TELLS OF COUNCIL'S ACT Alderman Frank whose petition special prosecutor being heard, the speaker. informed the that night of Metz special proseand the the grand additional discusthe manner which the names grand jurors Judge Smith that the cirrcuit court lects the jurors blind

7. October 14, 1931 The Times Hammond, IN
Article from The Times, October 14, 1931

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SMITH DELAYS HEARING UNTIL MEET IS HELD [SPECIAL TO THE TIMES] CROWN Ind., Martin Smith of the Lake Judge Criminal this morning granted to Monday, October petition Alderman Frank H. Seliger, of Hammond, prosecutor to conduct anspecial jury investigation into other grand the First Trust and the failure of bank Merritt Metz, Hammond atAldertorney Seliger and special appeared the before Judge Smith today to ask for the He said mass meeting is to be Hammond High School the Friday night permit asked hearing this had been done. He pointed out that the mass meeting is being held in conformance with the request of Judge Smith, himself, last month advised to for purpose. chief deeputy the state, agreed to continue the hearing. Judge Smith then set the date for Monday, October This third Judge Smith thus far on this petition.

8. July 19, 1933 The Times Hammond, IN
Article from The Times, July 19, 1933

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Article Text

FIRST TRUST ASSETS TWO MILLION SHORT New Facts Brought Out in Porter Circuit Court Before Special Judge [SPECIAL TO THE TIMES) July Evidence of suspended First Trust and Hammond, fall short introduced Judge Albert of in Porter Circuit court yesterday by Charles Wolters, assistant to Harry Folk, receiver of the bank evidence part of the ceiver's $1,000,000 suit against stockholders of the instituMr. Wolters presented case after case in which the present and the former collect poor assets but have failed. He his recitaproceed testimony read into the to prove that the assessment suit justifiof the larger stockholders fighting the action. They United Charles Surprise, of Hammond, and Albert Maack, Crown Point banker, were directors of failed 1931. They contend the receiver cannot legally suit against them for collection their liability until all other assets have been proven insufficient meet liabiliThat places the burden proof on the receiver: hence, the lengthy recitation of case examples by Virtually other large stockholders the bank already settled out court Mr. Folk. judgments the court and thus strike their from the list of 232 Folk being represented Attorney Glen Peters, the firm Bomberger, Peters Morthland, Surprise retained Attorney Carl sel and Mr. Maack represented Attorney Frank Pattee, of Crown Point. The suit now is more than two years but expected be settled the current vacation the Circuit court. Judge Albert ruling that the than subsequent determine the liability stockholders (Continued on Page Seven)

9. September 21, 1933 The Times Hammond, IN
Article from The Times, September 21, 1933

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Article Text

STRICKLAND HEARS PEOPLES CO-OP REPORT old report, filed the PeoAn former for ples the Peoples Co-Operative State will come up for bank of in Judge Harold StrickHammond Superior court No. land's October This report was filed April 6, 1931, when the Peoples State bank replaced receiver Harry E. Folk and Orville O. Carpenter. Owing illness of the late Judge Clyde Cleveland, report not receiver of the Mr. Folk, urged Judge Strickland hold hearing on the the report may be disposed Judge Strickland has set October as the date for hearing. The is for o'clock in the morning. Depositors and creditors be heard at that time. receivership for the Peoples Co-Operative State is joined for the First Trust and under the direction of Mr. Folk.