Washington State Bank (South Bend, IN)

Episode Information

Episode UID
71119071590
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7111907 routing
Routing Number
71-1190
Start Date
June 26, 1932
Location
South Bend, Indiana (41.683, -86.250)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
30c51e1525d6e96c

Response Measures

None

Events (2)
1. June 26, 1932 Receivership
Newspaper Excerpt
More than $20,000 is lying dormant in St. Joseph county bank vaults awaiting decision by the Indiana supreme court ... The Washington State bank has one payment of 10 per ... that sufficient additional funds were available to meet claims ... receiver for Lakeville State bank
Source
newspapers
2. August 17, 1933 Suspension
Cause
Government Action
Cause Details
State department of financial institutions took control of the closed Washington State Bank as insolvent or in imminent danger of insolvency; placed under state liquidation.
Newspaper Excerpt
the Union Trust and Washington State bank, both of South Bend, having been under northern Indiana state control three weeks.
Source
newspapers

Newspaper Articles (2)
1. June 26, 1932 The South Bend Tribune South Bend, IN

Article Text

STATE COURT'S DELAY IN BANK RULING SCORED "Pathetic," Says One Receiver; "Dilatory" Second Charges. AFFECTED Public Funds Held Up; Also Prevents Distribution of $20,000 in County. More than $20,000 is lying dormant in St. Joseph county bank vaults awaiting decision by the Indiana supreme court that will provide for the distribution of the money by receivers for three defunct banks in the county. The same decision will directly effect nearly $1,000,000 in public funds tied up in three other closed South Bend which are now in the liquidation. Definite action by the higher court has been for nearly since the test case was transferred to that court from the Indiana court, where on file nearly two years before justices of that court disagreed decision. Since the Cound its way to the supreme court, several similar appeals have been taken from every section of the state. estimated that throughout the state effected by court's delay in handing down ruling. Calls Delay Attorney Orie Parker, who represents Miss Ethel receivfor the Franklin Trust company, declared: pathetic the way the court delays action on an important issue of that kind.' Schurz, receiver for the North Liberty State bank said: supreme court has the reputation being dilatory. or years making decision and, from past experiences, another five years before the ruling is made. The Franklin company has about $8,000 for the question the priority claims on public funds blocks the payment the money to depositThis question must be setin the higher Mr. Schurz said today that he could distribute about $8,000 if the priority claim dispute was The blocking the payment $5,000 ready the hands of Citizens' Trust Savings bank. receiver for Lakeville State bank Three Banks Affected. Three other large South Bend closed and in the process liquidation, are also hampered by the dispute to priority. They are Union Trust company half million dollars being held in public funds. The bank about $100,000 public funds tied up, of which $85,000 belongs to Bend school Over $100,000 school funds being held the American Trust comSeveral townships also have pany. funds in the closed South Bend banks. was pointed out that suits against surety bond signers coverthe money these banks have ing but determination been priority claims would exonerate the bond signers in event the public funds are given priority. Only recently the Union ship the town of this county, awarded in superior court No. against bond covering in Lakeville State the amounting to bank, $20,000. Will Be Appealed. This decision to be appealed the supreme court Attorney Walter Arnold, was said Saturday. petition by the receiver of the following the judgment, distribute blocked by town and until the higher court rules on the claims. The Washington State bank has one payment of 10 per but time that sufficient addithe tional funds were available to meet claims in the event the priority court ruled their favor. higher Continued Page Six. Column

2. August 17, 1933 The South Bend Tribune South Bend, IN

Article Text

STATE ASSUMES DUTIES AT BANK Takes Over Walkerton Institution; Name Clements Aid. J. B. E. LaPlante. state liquidating chief for closed banks in the South Bend-Gary district, today took over the Farmers' State bank of Walkerton upon instructions from Indianapolis. State control of the bank, which has been closed since Feb. 27, 1931, was ordered by Richard A. McKinley, director of the new state department of financial institutions. It is the third closed bank to be taken over, the Union Trust and Washington State bank. both of South Bend. having been under northern Indiana. state control three weeks. Mr. LaPlante announced that Milo W. Slick, who has been serving as liquidating agent of the Farmers' State bank of Walkerton. will continue in active charge of affairs as special representative of the state department. Walter L. Clements former city attorney of South Bend, has been designated as attorney to act for Mr. LaPlante and the state department. A formal notice stating that the bank is "insolvent or in imminent danger of insolvency" was filed by Mr. Plante in superior court No today. The notice claims that state control is necessary for the "best interest of the depositors. Mr. LaPlante, who is directing the activities of three appraisers at the Union Trust company. said he has no information as to whether the state will take over any other smaller banks in the the county county. Since the Farmers' State bank of Walkerton closed its doors following heavy run it has paid out dividends amounting to 36 per cent on its total deposit liability. Mr. LaPlante explained. boys. The present book value of the bank's assets as estimated by Mr. LaPlante $105,000 as against remaining deposit liability of $72,000.