Porter County State Bank (Kouts, IN)

Episode Information

Episode UID
71079671528
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7107967 routing
Routing Number
71-0796
Start Date
April 11, 1927
Location
Kouts, Indiana (41.317, -87.026)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
bbe271cb0f5d0487

Response Measures

None

Events (3)
1. April 11, 1927 Receivership
Newspaper Excerpt
Receiver to Be Appointed for Kouts Institution, Closed by State Monday
Source
newspapers
2. April 11, 1927 Suspension
Cause
Bank Specific Adverse Info
Cause Details
State audit found gross mismanagement: forgeries, bad loans and shortages causing resources to be wiped out
Newspaper Excerpt
closed Monday by the state banking department
Source
newspapers
3. November 28, 1932 Other
Newspaper Excerpt
Judgment in the sum of $7,418.17 was entered ... in favor of Edward M. O'Brien, of Kouts, receiver for the defunct Porter County State Bank of Kouts, against Thomas L. Applegate, former receiver
Source
newspapers

Newspaper Articles (5)
1. April 14, 1927 Evansville Courier and Press Evansville, IN
Article from Evansville Courier and Press, April 14, 1927

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Article Text

CASHIER CHARGED WITH BANK THEFT Receiver to Be Appointed for Kouts Institution, Closed by State Monday VALPARAISO, April of were filed today against Charles H. cashier and director of the Porter county state bank of Kouts, closed Monday by the state banking department, simultaneously with filing of application for receiver to take charge of the institution's Deputy Prosecutor Ira C. Tilton. filed the affidavit against Cannon, declared he expected sufficient evidence would be gained to cause of warrant against person connected with the Cannon is charged with borrowing from the bank on his personal note directors. also alleged he submitted to the state banking department which he asserted was due from North Judson bank, whereas the latter bank's records showed only $5 on appointment of refor the bank will be held April Directors the today they to effect reorganization. patrons of local upon complaint to police authorities that delivery had not been made certain purchases made and paid for in advance, found themselves without legal "Purchasers of they were "have They not come into court with clean hands.

2. December 16, 1931 Vidette-Messenger of Porter County Valparaiso, IN

Article Text

COURT ORDERS REPORT FILED OF Receiver of Defunct Bank Asked to Show What Funds Have Been Collected Since Last Report. DEPOSITORS MAY GET A DIVIDEND Depositors in the defunct Porter County State Bank of Kouts which failed in April, 1927, with shortage which later proved to be the entire resources of the institution, approximately $200,000, may get another dividend in the near future. Tuesday in Porter circuit court, Judge Grant Crumpacker entered an order requiring the receiver, T. L. Applegate, to make another report funds collected since the last report. The order specified the report was to be filed within ten days. Recently the receiver received $6.600 as the bank's Chare of the asof Charles Cannon, former cashier, whose well-stocked farm and other assets near Kouts, were taken in charge by Charles L. Surprise, of Hammond, receiver in bankruptcy. To date only one per cent dividend has been paid to depositors, the receiver being unable to realize much from bundle of worthless notes, $58,000 of which were charged order of the court, or from assets of any of the banking officials, excepting Cannon, the majority of whom went into bankruptcy. The bank building in Kouts, one of the few remaining assets of the defunct institution, remains unsold. This will probably not realize more than $3,000 or $4,000. Porter county had $38,000 and Pleasant township about $14,000 in the Kouts bank when it was closed by the state banking department. Criminal charges against directors (Continued on page 3, column 3)

3. March 5, 1932 Vidette-Messenger of Porter County Valparaiso, IN

Article Text

APPLEGATE IS REMOVED BY JUDGE'S ORDER Stockholders Who Asked His Removal, Claim Reports Ordered, Were Never Made. $7,500 ON DEPOSIT IN NATIONAL BANK T. L. Applegate, former cashier of the Valparaiso National Bank, was removed as receiver for the Porter County State Bank of Kouts by Judge Grant Crumpacker in Porter circuit court this morning. The action came after members of stockholders' committee, comprising Edward O'Brien, Herman Kosanke and A. F. Hofferth, filed petition late Friday asking that the receiver be removed and he be cited for contempt of court. It was charged by the committee that the receiver had failed to request payments of persons owing notes to the bank, and that on two occasions, when ordered by the court to file reports, never com- On Feb. 4, at a meeting the receiver and depositors, an agreement was reached whereby a committee was named to co-operate with the receiver in the collection of notes due the bank. At the time Judge Crumpacker ordered the receiver to make a report within 30 days. Friday was the last day and no report was filed. Judge Crumpacker's order today called for the filing of report by next Tuesday, and also the resignation of the receiver. At the time of its closing the Kouts bank had resources of $200,000. Only per cent dividend has been paid to date. According to recent report of the receiver, a total of $7,500 in money on deposit in the Valparaiso National bank, which closed its doors on Jan. 11. Depositors of the Kouts bank maintain that this money have been distributed some time ago as dividend, and they threaten to sue the receiver on his bond. Charles H. cashier of the Kouts bank, prison forgery petition to charge off in notes, most which were forgeries. Cannon, was filed sometime ago with Judge Crumpacker.

4. November 28, 1932 Vidette-Messenger of Porter County Valparaiso, IN

Article Text

NEW BRITISH NOTE DRAFTED DEBT ENTER JUDGMENT BY HENRY T. RUSSELL BY KOUTS BANK RECEIVER (United Press Staff Correspondent) LONDON, Nov. new British war debt note, drafted over the week-end, was expected today to claim that if the United States insisted on payment of the $95,000,000 December installment there would be world financial repercussions. The question of payment or fault would remain unsettled the by (Continued on page 3, column Judgment in the sum of $7,418.17 was entered this afternoon in Porter circuit court by Judge Grant Crumpacker in favor of Edward M. O'Brien, of Kouts, receiver for the defunct Porter County State Bank of Kouts, against Thomas L. Applegate, former receiver, and the United States Fidelity and Guaranty Company, of Baltimore, Md. The judgment against the defendants represents money belonging to the Kouts bank which was on deposit in the Valparaiso National Bank when it closed on January 11 last. Mr. Applegate, as former receiver of the bank, was held accountable for the amount by Judge Crumpacker when It was shown that the money had been in the bank for nearly year and the receiver had failed to make report to the court after having been notified to do The Kouts bank closed its doors in April, 1927. when an audit by examiners for the state showed the bank's affairs to have been grossly mismanaged. Resources of over $200,000 dwindled by reason of forgeries and bad loans so that only small amount was realized. One dividend of five per cent, was paid. Edward Ryan, of this city, was attorney for Receiver O'Brien, and John P. Crumpacker, of this city, was counsel for the defendants.

5. November 30, 1932 The Times Hammond, IN

Article Text

RULES FOR KOUT'S BANK RECEIVER [SPECIAL TO THE TIMES] VALPARAISO, Ind., Nov. 30. — Judgment in the sum of $7,418.17 was entered this afternoon in Porter Circuit court by Judge Grant Crumpacker in favor of Edward M. O'Brien, of Kouts, receiver for the defunct Porter County State bank of Kouts, against Thomas L. Applegate, former receiver, and the United States Fidelity and Guaranty Co., of Baltimore, Md. The judgment against the defendants represents money belonging to the Kouts bank which was on deposit in the Valparaiso National bank when it closed on Jan. 11 last. Mr. Applegate, as former receiver of the bank, was held accountable for the amount by Judge Crumpacker when it was shown that the money had been in the bank for nearly a year and the receiver had failed to make a report to the court after having been notified to do so. The Kouts bank closed its doors in April, 1927, when an audit by examiners for the state showed the bank's affairs to have been grossly mismanaged. Resources of over $200,000 dwindled by reason of forgeries and bad loans so that only a small amount was realized. One dividend of five per cent was paid. Edward J. Ryan, of this city, was attorney for Receiver O'Brien, and John P. Crumpacker, of this city, was counsel for the defendants.