5819. Farmers Trust Company (Indianapolis, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
May 4, 1931
Location
Indianapolis, Indiana (39.768, -86.158)

Metadata

Model
gpt-5-mini
Short Digest
672346a1

Response Measures

None

Description

The bank was closed by action of its board and the state banking department on May 4, 1931 for refinancing and reorganization due to lack of liquid operating capital. Shortly thereafter a petition for a receiver was filed and a receiver was appointed; the bank remained in receivership and is referred to subsequently as defunct. No run (heavy withdrawals or depositor panic) is described in the articles.

Events (5)
1. May 4, 1931 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Directors requested temporary closing because of lack of liquid operating capital to meet anticipated demands while carrying mortgage business; not described as insolvent.
Newspaper Excerpt
State banking department today closed doors of the Farmers Trust Company ... The closing is temporary, according to James W. Noel, attorney director of the bank.
Source
newspapers
2. May 6, 1931 Other
Newspaper Excerpt
Requests Appointment for Farmers' Company. asking the appointment of receiver for the Farmers' Trust Company was filed in circuit court Wednesday ... It was filed by Luther F. Symons, state ... (petition).
Source
newspapers
3. May 21, 1931 Receivership
Newspaper Excerpt
Boyd M. Ralston, Indianapolis realtor, today was named receiver of the Farmers Trust Company ... The bank was closed May 4 on vote of board of directors.
Source
newspapers
4. September 18, 1931 Other
Newspaper Excerpt
Appointment of appraisers to judge value of remaining assets of the defunct Farmers Trust Company was asked Thursday by Boyd M. Ralston, receiver...
Source
newspapers
5. April 30, 1934 Other
Newspaper Excerpt
Payment of approximately $80,000 dividends of the Farmers Trust Company, now in receivership, was authorized today by Superior Judge Clarence E. Weir.
Source
newspapers

Newspaper Articles (14)
1. May 4, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 4, 1931

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Article Text

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

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

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Article Text

BANK RECEIVER ASKED Requests Appointment for Farmers' Company. asking the appointment of receiver for the Farmers' Trust Company was filed in circuit court Wednesday before Judge Harry Chamberlin. It was filed by Luther F. Symons, state sioner. bank day by the request of the board of direc- Cash Grate

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

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Article Text

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

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

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Article Text

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

5. September 18, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, September 18, 1931

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Article Text

# APPRAISERS ARE ASKED Receiver of Defunct Farmers Trust Petitions Court. Appointment of appraisers to judge value of remaining assets of the defunct Farmers Trust Company was asked Thursday by Boyd M. Ralston, receiver, in a petition filed with Superior Judge Clarence E. Weir. Hearing was set for Sept. 24. Majority of the assets held by Ralston are farm properties in Indiana and adjoining states.

6. September 25, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, September 25, 1931

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Article Text

# COURT ORDERS # BANK APPRAISAL Farmers Trust Receiver's Plea Is Granted. Appraisal of properties of the defunct Farmers Trust Company was ordered Thursday by Superior Judge Clarence E. Weir on request of Boyd M. Ralston, receiver for the bank. Ralston's petition stated an appraisal was the only way to determine actual value of properties, listed on the institution's books at approximately $700,000. The court appointed Isaac E. Brokaw and George G. Cole, both of Indianapolis, as appraisers of the bank's farm properties in Indiana, Ohio, Illinois, Wisconsin and Missouri. Cole is secretary of the Evans Realty Corporation and Bro-kaw formerly appraised farms for the Federal Land bank of Louisville. Reports that the company will pay in full to depositors were denied by Ralston at the hearing. "It has been rumored that the

7. October 9, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 9, 1931

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Article Text

# Creditors of Defunct Farmers Trust May Battle # President's Move. Creditors of the defunct Farmers Trust Company today were considering organizing to fight the attempt of Charles N. Williams, president of the bank, to obtain a court order giving him a large portion of the institution's assets. Williams has filed a petition in superior court four asking the court to allow him a claim of $292,798.39, as a secured and preferred claim over claims of depositors and all other creditors. Court records also revealed today that Williams has filed another petition demanding that several thousand dollars worth of bonds, owned by him, be returned by Boyd M. Ralston, receiver. # Exact Value Unknown In his petition, Williams states that the large sum is held by the bank, as trustee, in a "special trust account," created Nov. 8, 1930. "The bank was to hold the moneys as trustee and agreed to hold the account as secured by a first lein upon all the assets of the Farmers Trust Company," the petition contends. Assets of the bank, now held by the receiver, include real estate, bonds, stocks, mortgages and other properties. Exact value of the real estate is unknown. However, appraisers have been appointed by Judge Clarence E. Weir to appraise farm properties owned by the bank in other states. # Administration Not Possible Williams states that he "deposited of his own funds various amounts, under terms of the special trust agreement, totaling $292,789," which he demands with interest. Administration of the bank's assets will not be possible for some time, Receiver Ralston stated recently, because the value of its real estate holdings is unknown. The bank closed its doors May 4, 1931. Othneil Hitch, attorney and creditor, charged today that "Williams wrote the agreement by which he now seeks to secure this large preferred claim."

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

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

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

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

10. 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.

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

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

12. April 30, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, April 30, 1934

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# FARMERS TRUST WILL # PAY $80,000 DIVIDENDS Court Approves Distribution for Firm in Receivership. Payment of approximately $80,000 dividends of the Farmers Trust Company, now in receivership, was authorized today by Superior Judge Clarence E. Weir. This amount represents 12½ per cent of divi- dends due depositors. Of this amount, $36,000 representing divi- dends to stockholders, temporarily will be held up pending a hearing Wednesday before Judge Weir. Boyd M. Ralston is receiver.

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

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

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.