Farmers State Bank (Milford, IN)

Episode Information

Episode UID
71109771500
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7110977 routing
Routing Number
71-1097
Start Date
December 1, 1924*
Location
Milford, Indiana (41.409, -85.847)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ed5f385fcb51a425

Response Measures

None

Events (3)
1. December 1, 1924* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of large embezzlement and a substantial cash shortage by the cashier (estimated ~$200,000).
Newspaper Excerpt
The bank was closed Monday following discovery of the shortage.
Source
newspapers
2. December 16, 1924 Receivership
Newspaper Excerpt
The defunct Farmers State bank of Milford ... was in the hands of a receiver today, Tom J. Nye, former Kosciusko county auditor.
Source
newspapers
3. December 29, 1924 Receivership
Newspaper Excerpt
Donald Vanderveer, Milford attorney, was today appointed ... as permanent receiver for the defunct Farmers State Bank, at Milford.
Source
newspapers

Newspaper Articles (9)
1. December 13, 1924 The Huntington Press Huntington, IN
Article from The Huntington Press, December 13, 1924

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Article Text

BANK CASHIER GETS 14 YEARS IN PRISON FOR EMBEZZLEMENT WARSAW, Ind., Dec. 12.—By A. P.—James T. Shepard, cashier of the Farmers State Bank at Milford, was sentenced to serve from two to fourteen years in prison following his conviction here today on a charge of embezzlement of the bank's funds, the amount of which examiners estimate at approximately $200,000. The bank was closed Monday following discovery of the shortage. Shepard was arrested late today on an indictment returned by the county grand jury which had been investigating the case. He was put on trial immediately, the specific charge being that he accepted deposits when he had knowledge of the fact that the bank was insolvent. The bank was organized eighty years ago by Mr. Shepard with a capital of $25,000. There are 19 stockholders. At the time the doors were closed, the institution had deposits of $280,000 listed on its books. The audit which has not yet been completed, already shows a shortage of more than $80,000.

2. December 16, 1924 The Pharos-Tribune Logansport, IN
Article from The Pharos-Tribune, December 16, 1924

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Article Text

INDIANA BANK IN RECEIVER HANDS WARSAW, Ind., Dec. 16—The defunct Farmers State bank of Milford which failed for $200,000, was in the hands of a receiver today, Tom J. Nye, former Kosciusko county auditor. Fifteen indictments returned by the grand jury which investigated the banks shortage were believed to implicate one or more persons besides James Shepard, cashier, already sentenced to the state prison for 2 to 14 years on his plea of guilty to charges of embezzlement.

3. December 18, 1924 The Daily Worker New York, Chicago, NY
Article from The Daily Worker, December 18, 1924

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Article Text

Probe Bank Failure. WARSAW, Ind., Dec. 17.-The defunct Farmers State bank of Milford which failed for $200,000 was in the hands of a reciver today, Tom J. Nye, former Kosciusko county auditor. Fif. teen indictments returned by the grand jury which investigated the bank shortage were believed to implicate one or more persons besides James Shepard, cashier, already sentenced to the state prison or two to fourteen years on his plea of guilty to charges of embezzlement.

4. December 29, 1924 The Indianapolis News Indianapolis, IN
Article from The Indianapolis News, December 29, 1924

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Article Text

MILFORD BANK RECEIVER Donald Vanderveer, Warsaw Attorney, Named to Succeed T. J. Nye. [Special to The Indianapolis News] WARSAW, Ind., December 29.—Donald Vanderveer, Milford attorney, was today appointed by Judge L. W. Royse in Kosciusko circuit court, as permanent receiver for the defunct Farmers State Bank, at Milford. Mr. Vanderveer will take up his duties immediately, succeeding T. J. Nye, of Warsaw, former Kosciusko county auditor, who was appointed several weeks ago as temporary receiver. A petition, signed by 175 creditors and including all stockholders of the bank, was presented to the court asking for the appointment of Vanderveer. The signers represented about $200,000 of the $350,000 claims against the bank, it was said. The new receiver has been instructed by Judge Royse to report to the court as soon as he has collected $10,000 or $15,000 of the bank's assets so that the first divi-

5. December 30, 1924 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, December 30, 1924

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Article Text

Bank Receiver Named Bw Times Special WARSAW, Ind., Dec. 30.-Donald Vanderveer, attorney, was permanent receiver today for the Farmers' State Bank at Milford, recently closed as the result of $250,000 shortage. Vanderveer was appointed by Judge L. W. Royse on petition of 175 creditors.

6. December 30, 1924 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, December 30, 1924

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Article Text

Bank Receiver Named By Times Special WARSAW, Ind., Dec. 30.—Donald Vanderveer, attorney, was permanent receiver today for the Farmers' State Bank at Milford, recently closed as the result of $250,000 shortage. Vanderveer was appointed by Judge L. W. Royse on petition of 175 creditors.

7. January 6, 1925 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, January 6, 1925

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Article Text

TOTAL SHORTAGE SET Temporary Receiver of Milford Bank Says Loss Is $230,000. Bu Times Special WARSAW, Ind., Jan. 6.-Total shortage of the Farmers State Bank at Milford, Ind., which closed its doors in December, is $230,000, according to a report made in Kosciusko County Court by Tom Nye, tem porary receiver.

8. October 30, 1925 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, October 30, 1925

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Article Text

Hoosier Briefs ARSAW'S curfew law is being enforced again after W twenty years. Too many school children were going to night picture shows, officials said. Kosciusko Circuit Court has ordered Donald Vanderveer, receiver of the Farmers State Bank, Milford, which failed last spring, to sell the bank building and fixtures. Herbert Laramore, former editor and owner of the Starke County Republican, takes up his duties as postmaster of Knox, Monday. A post of disabled war veterans will be organized soon in Greencastle. Baltimore & Ohio shops at Washington have indefinitely furloughed ninety-two men, leaving`a force of 750 men. William Settle, president of the Indiana Farm Bureau Federation, will speak at Greensburg Nov. 3. UNCIE G. A. R. post will dedicate the huge cannon M in the courthouse yard on Monday. Senator James E. Watson will speak. Vegetables and fruit frozen during the present cold spell can be saved if not moved and permitted to thaw out slowly, C. L. Burkholder of Purdue University has announced. Charles Polk, 11, of Rochester, will probably lose the sight of his right eye as a result of being struck by a match fired from an air gun by another lad. Sampson was a "ladies' man, according to Dr. W. H. Beachler, evangelist at Peru, who spoke on "An Expensive Hair Cut."

9. March 20, 1926 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, March 20, 1926

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Article Text

Harvey Kreider has been chosen as president of the Farmers State Bank of South Whitley to succeed John Swihart, former president, who died as a result of injuries suffered in an automobile accident. D. S. Vanderveer, receiver of the Farmers' State Bank of Milford, has filed a report with the Warsaw Circuit Court here, showing claims amounting to $322,135.74, and a distribution of 18 per cent or $58,834.58. It is now evident that creditors will receive less than 20 per cent. J. S. Hubbard, assistant supervisor of the State vocational rehabilitation department in conjunction with Harry Lewallen, county superintendent of schools, has arranged for a health survey of Kosciusko County. Boynton Garman, 30, Claypool, jumped to safety when the locomotive of a Big Four freight train struck and completely demolished his automobile. The city council has purchased the old Wabash hospital site for $5,000 and the land will be made a part of the Wabash park system. As a result of rapidly changing weather conditions, half of the 5,000 residents of Warsaw are taking medicine, according to physicians. The Cooperative Creamery of New Paris will ship 5,000 gallons of milk daily to Chicago in new thermos trucks. Hammond folk say an early Spring is positive. Wild geese are returning from the South, they say. Igleheart Brothers Milling Company of Evansville has been taken over in a merger with the Postum