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BELIEVE NOTES GOOD Receivers of Bank at Kokomo Hope $100,000 May Be Realized. By Times Special KOKOMO, Ind., Oct. 11.-Receivers for the American Trust Company, the bank which was closed recently by the State banking
American Trust Company (Kokomo, IN)
Episode Information
- Episode UID
71014271533- Episode Type
- Suspension → Closure
- Bank Type
- trust
- Bank ID
-
7101427routing - Routing Number
71-0142- Start Date
- September 1, 1927*
- Location
- Kokomo, Indiana (40.486, -86.134)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
f415002bddcbbe42
Response Measures
None
Events (2)
1.
September 1, 1927*
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Bank was insolvent due to large overdrafts, unsecured loans and mismanagement; state funds and irregular payments implicated
- Newspaper Excerpt
- The American Trust Company ... closed its doors last September
- Source
- newspapers
2.
October 11, 1927
Receivership
- Newspaper Excerpt
- Receivers for the American Trust Company, the bank which was closed recently by the State banking ... Receivers for the American Trust Company, the bank which was closed recently by the State banking
- Source
- newspapers
Newspaper Articles (20)
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LOCAL MEN TO TESTIFY Two Called in Probe of Closed Kokomo Bank's Affairs. Bu Times Special KOKOMO, Ind., Dec. 5.-Witnesses called to appear this week before the grand jury here investigating affairs of the closed American Trust Company Bank, includes: Clyde R. Humston, of the City Trust Company, Indianapolis; Boyd Gurley, editor of the Indianapolis Times; T. F. Barr and T. R. Inwood, deputy State bank examiners; Grover Bishop and J. C. Herron, receivers of the bank,
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BANK RECEIVERS SUE DAVIES FOR $11,500 Kokomo, Ind., Dec. Joseph C. Herron and Grover Bishop. receivers for the American Trust Company of this city closed by order bank today filed suit against Ora Davies, former state treasurer, for $11,500 alleged to have been wfully collected by Davies on state money deposited in the defunct institution. The suit alleged that treasurof Indiana, Davies collected from the American Trust Company cent on all state funds deposited with the bank, appropriating the money to his own
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Officials Named for Negligence in Kokomo Failure. Ind., Dec eleven persons indicted Among here Saturday by the Howard county grand jury in connection with failure of the American Trust Company this city were Luther Symons, state bank comto closed some
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DAVIES' RESIGNATION AS BANK RECEIVER Dec. resignation Davies, Kokomo, as for the First National bank of Sheridan and the First National bank, of Noblesville, accepted today by Joseph McIntosh, comptroller currency. Davies, former state treasurer recently indicated by the Howard county, Indiana, grand jury in connection with affairs of the American Trust company, of Kokomo. The that Davies, while treasurer, received money from American Trust company. The trust company was closed months order of the bank examiner. lengthy investigation by the Howard county grand jury resulted indictments against Davies; Luther W. Symons, state banking commissioner; Thomas Barr, deputy commissioner; Frank Owens, president the institution time it was closed, and several others.
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ORA J. DAVIES RESIGNS POST Dec. ignation of Ora Davies, of Kokomo, Ind., receiver for the First National Bank Sheridan and the First National Bank of accepted to-day by Joseph of currency Davies, former treasurer. recently was indicted by Howard county, Indiana, grand jury in connection affairs the AmerTrust Kokomo, Ind. The indictment charged that Davies, while treasurer, unlawfully received money from the American Trust The company was closed few the state the grand Luther Symons, state banking commissioner: Thomas Barr, deputy commissioner: Frank H. the was closed, and several others.
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(Bluffton Banner) (Democratic) Luther Symons and Thomas D. Barr, connected with the State banking department, have been indicted by a Howard County grand jury at Kokomo for failing to close a bank when it was known to be insolvent. The bank was the American Trust Company and the claim made by the grand jury is that bank examiner reported last March that the bank was insolvent, but that his chiefs did nothing toward closing the institution nor in apprising the directors of the bank. The outcome of this matter will be of interest in Wells County and a number of other places where banks have failed. Surely, there is something wrong with the system of regulating banks. The Indiana commission has come in for much criticism of late months and many wonder just what protection comes from this commission. They make a lot of noise after the bank is closed, but seldom have they been instrumental in the closing. When a bank runs completely out of funds, as a matter of course the doors are closed. That seems to be the rule in Indiana. Former State Treasurer Ora J. Davies has been sued by the receivers of the American Trust Company at Kokomo for illegal fees collected. Just another case of the McCray administration using a bank to keep the good Governor going. Davies was accused of irregularities with the city funds of Kokomo and had to make restitution before he was elected State treasurer, but the people seemed not to care. He was elected anyway.
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BANK PAYMENTS TO STEVE BARED $600 to $1,000 Monthly Drawn From Kokomo Institution, With No Record That He Had Account There, Co-Receiver Announces. D. C. Stephenson drew sums between $600 and $1,000 each month from the American Trust and Securities Company of Kokomo, it was revealed today by Grover Bishop, co-receiver for the bankrupt institution. Thus far the receivers have been unable to discover that the former grand dragon of the Klan, now a life termer in the penitentiary, had an account at the bank. Payments were made by cashier's checks and drafts and appear to have been paid regularly each month during 1923, when Stephenson was a political power in the State, and headed the hooded order.
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STATE OF INDIANA WILL LOSE IN BANK FAILURE Kokomo. Ind., Dec. 31.-The state stands to lose $55,000 of the $160,000 in state funds on deposit at the American Trust Company, which closed its doors last September, according to Grover Bishop, one of the receivers. Bishop declared although the state has been able to collect $37,000 of the money, it can only file a common claim for the balance and will lose approximately $55,000 since it is expected the receiver will not be able to pay more than 25 per cent to depositors The suit in the DeKalb circuit court of the Ashley State bank against James B. Whysong to foreclose mortgage on real estate has been dismissed.
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The KNIGHTSTOWN BANNER Entered at the Postoffice in Knightstown, W. K. DEEM and R. D. SHIPMAN Editors and Publishers Soiled feet usually accompany those who play at politics. That bank suspension up at Ko komo is taking on a bad smell Walter S. Chambers, editor of The New Castle Daily Times, is in Wash ington, D. C., on a sightseeing trip. He joined a party of friends at Indianapolis. With machine gun battles taking place every day in the city of Chicago why the necessity of sending U. S. troops to quiet the turbulent country of Nicaragua Republican district committeemen of Indiana met yesterday (Thursday) at Indianapolis to elect a state chair man in place of Clyde Walb, who handed in his resignation on Tuesday. D. C. Stephenson is to have another vacation from the state penitentiary. He is coming down to Kokomo to tell the Howard county grand jury what caused the American Trust Company to "bust." Stephenson says his tes timony will involve bankers in all parts of Indiana Opinion prevails there is some rottenness hidden away in the vaults of the Kokomo, bank
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WRECEIVER Hartman, Columbus, Ohio, New Appointee Hartman, Columbus, has arrived and taken charge of the First National Bank receiver, having pointed by controller of curWashington. He came rency here from Acherman. Miss., where was stationed for some time similar He connected with federal department of banking and has the years. He many takes the place made vacant the resignation Ora Davies, komo, did not wish to fill the position following indictment the Howard county grand jury out of the failure the growing American Trust Company, of that After his resignation the controller the currency here take charge of the local bank, but this appointment only temporary. Mr. Hartman has planned here, he until affairs of the bank are settled.
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ASK PAROLE FOR BANK CASHIER KOKOMO. Ind., petition being circulated here today asking for Frank Owens, cashier of the defunct condition that he $23,000 the bank's and turn state's against indicted in connecwith the bank's failure. special effort being made to depositors sign the petition. HoMiller movement the ground that Owens should forced return $38,000 due for assessments in addition to other moneys allegedly owed the clemency petition considered. Joe Heron, receivers the bank. the move cause will available, money the many depositors were left almost destitute by the collapse of institution. Grover Bishop. receiver, is understood oppose action. howpersons are under indictthe failure the American Trust Co., which for large funds during the time the Ku Klux Klan regime was supreme Indiana. These include Luther Symons, bank commissioner. Thos. Barr, assistant commissioner, who alleged to known the bank insolvent long before doors closed last September: Ora Davies, state treasurer the time state funds deposited there, is said received one per cent such moneys reward for placing in institution: Arnold, former president the Owens, and the institution at the time failed. The bank said to have failed because and unsecured Among the latter borrowed from his without security
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THURSDAY, FEBRUARY 16, 1928. WOULD PAROLE BANK CASHIER Petition to Free Official If He'll Return Money By United KoKoMo, Ind., Feb. 16.-A petition was circulated here today asking parole for Frank S. Owens, cashier of the defunct American Trust company of this city, on condition that he return $23,000 to the bank's receivers and turn state's evidence against others indicted in connection with the bank's failure Prosecutor Homer R. Miller op poses the movement on the ground that Owens should be forced to return $38,000 due for assessments in addition to other monies allegedly owed the Eleven persons are under indict ment in connection with the failure of the company, which was depository for large amounts of state funds during the Ku Klux Klan regime in These include Luther Symons, state bank commissioner: Thomas Barr. assistant commissioner: Ora Davies, state treasurer at the time state funds were deposited there, and who is said to have received one per cent on all such monies: W. H. Arnold. former president of the bank, and Owens, his son inlaw and president of the bank at the time failed The bank is said to have failed because of large overdrafts and unsecured loans. Among the latter is said to be which Arnold. It is charged, borrowed from his own bank without security.
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FUNDS TO CLOSED BANK Estate Pays $4,000 to American Trust Receiver at Kokomo. By Times Special KOKOMO, Ind., Feb. 24.-Addition of $4,000 to assets of the closed American Trust Company bank here has been made through payments on claims of the bank against the estate of Herman Mitchell. Following receipt of the money, which 'was a part payment, Grover Bishop, one of the bank receivers, said another distribution of money would be made to depositors within about six months. He expects a 10 per cent payment. A previous one was 20 per cent.
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FUNDS TO CLOSED BANK Estate Pays $4,000 to American Trust Receiver at Kokomo. By KOKOMO. Ind., Feb. 24.-Addition of $4,000 to assets of the closed American Trust Company bank here has been made through payments on claims of the bank against the estate of Herman Mitchell Following receipt of the money, which was part payment. Grover Bishop. one of the bank receivers, said another distribution of money would be made to depositors within about six months. He expects a 10 per cent payment. A previous one was 20 per cent.
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$4,000 IS ADDED TO BANK ASSETS KoKoMo, Ind., Feb. Addition of $4,000 to assets of closed American Trust company bank here has been made through payments on claims of the bank against the estate of Herman Mitchell. receipt of the money. which was part payment, Grover Bishop, one of the bank receivers, said another distribution of money would be made to depositors within about six months. He expects ten percent payment previous one was 20 percent.
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PICK JUDGE TO TRY SYMONS AND BARR KOKOMO, Ind., April P. Brown of this city has been selected as special judge to try the case of Luther F. Symons, state bank commissioner. and Thomas D. Barr, his deputy, who were indicted by the Howard county grand jury in connection with the failure of the American Trust Company, it was announced today.
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# KOKOMO BANK # CRASH ACCUSED # WINS ACQUITTAL Frank S. Owens Freed in Case Which Involved State Officials. By United Press FRANKFORT, Ind., Nov. 13.- Frank S. Owens, former president of the defunct American Trust Company, Kokomo, has been acquitted in Clinton circuit court here on charges of embezzlement. The charge against Owens was based on the alled taking of funds from depositors when he knew the bank was to be closed. Indictments against Luther Symons, state banking commissioner; Thomas D. Barr, deputy commissioner, and Ora Davies, former state treasurer, were quashed. They were indicted with Owens. The charge against Davies was quashed because the statute of limitations had run, and those against Symons and Barr, because it was held they were not liable for error in the performance of their duties. Indictments against William H. Arnold, a former president of the bank; his son, L. B. Arnold, and a brother, Tom Arnold, were retired. Authorities have failed in their attempts to extradite W. H. Arnold from Florida.
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MORE MONEY ON HAND Closed Kokome Bank May Pay Another Dividend to Creditors. By Times Special KoKoMo, Ind., July 29. - The twelfth current report of Attorneys J. C. Heron and Grover Bishop, receivers of the closed American Trust Company bank, discloses a balance of $32,927.09 on hand and the prospects are promising for payment of a dividend of 5 per cent to creditors. The receivership has already paid 32.5 per cent. After the creation of the receivership. the announcement was made that creditors would only receive 25 per cent, but by careful management, the amount has been raised to 37½ per cent.
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ACCUSED MAY RETURN SOON Former Kokomo Banker Said to Be in III Health. By Times Special KoKoMo, May 11.-That William H. Arnold, now a resident of Palatka, Fla., defendant in criminal proceedings brought by Howard county authorities three and onehalf years ago, is contemplating an early visit to Kokomo, is a report current among acquaintances here. The report is that Arnold is broken in health and feels that if he could have a change of scene his condition might improve. The rumor has served a revive interest in the prosecution of Arnold for alleged criminal transactions while serving as president of the American Trust Company, local banking institution, defunct since September, 1927. The case against Arnold was taken to Cass county on a change of venue and has been at a standstill for more than a year.