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VANDALIA BANK CLOSED MONDAY Cashier Carl Fritz Issues Statement to Bank's Depositors The Farmers & Merchants Bank of Vandalia did not open for business Monday morning, and has not opened since, and Cashier Fritz will petition the Circuit Court for the appointment of a receiver for the bank in order that the depositors may realize as largely as possible from the bank's assets. The closing of the bank's doors was a surprise to many. The bank was organized twelve years ago by Mr. Fritz and a man named Gunn, who at that time resided at Saginaw but is now engaged in manufacturing in Canada. The bank enjoyed a good business and Cashier Fritz enjoyed the confidence of the people of Vandalia and vicinity, so that the deposits sometimes reached approximately one hundred and fifty thousand dollars. The past few months Mr. Fritz had been working to organize a stock company to take over the bank and operate it as a State Bank. Seventy-eight persons subscribed for the $25,000 of capital stock, the shares selling at $125.00 each, $100 being capital stock and the other $25.00 of each share going to create a surplus fund, which would have made a strong bank for the community. The following named men were elected directors of the proposed state bank: Wm. Coulter, Chas. F. Born, Elmer Benham, P. C. Hunt, Henry H. Born and Carl Fritz. At a meeting for the purpose of considering taking over the assets of the Farmers & Merchants Bank, the directors of the new organization passed a resolution declining such action. Following this a "run" started on the bank and kept up for several days, with the result that at the close of business Saturday evening Mr. Fritz knew the bank could not long continue to pay out money at the rate it was being demanded without jeopardizing the interests of the remaining depositors, and, after making strenuous efforts to raise money to tide over the run, he decided to not open the bank on Monday and to petition for the appointment of a receiver. The Vigilant knows nothing of the nature of the paper held by the bank or the value of its assets, but in an interview with Mr. Fritz who was in Cassopolis on Tuesday, he said that if the affairs of the bank could be economically administered he had no fear but that depositors would get all their money. He has issued the following statement to depositors: Vandalia, Michigan, December 31, 1923. To the Patrons and Customers of the Farmers & Merchants Bank of Vandalia, Cass County, Michigan: Friends: It is with the profoundest regret that I make this announcement. The above bank was established in 1912. Since that time I have devoted my time and my energy and my best thought to make it a success for the benefit of the people of Vandalia and the surrounding country. It has been a successful institution and was getting along and doing a nice business. However within the last year there was a feeling among the people and its patrons which was approved by the owners of the bank that it would grow to be a bigger and better institution if it were under State supervision. Therefore I, during the summer past made application for a state charter. It was approved by the state banking department. Articles of incorporation were filed and approved. A board of directors was elected to take charge of the bank when a charter would be granted. The banking department sent a representative to look over the assets of the Farmers & Merchants bank and I had every assurance that the State Bank to be organized would take over the assets of the Farmers & Merchants Bank so far as they were approved by the Bank examiner. Unfortunately however at the last meeting of the Board of Directors with the bank examiner a resolution was passed refusing to take over any of the assets or the building and fixtures of the old bank in consequence of which no charter was granted. Rumors began to circulate which resulted in depositors gradually withdrawing the whole or part of their funds from the bank until I found that it would be impossible to keep the bank open longer without greatly jeopardizing the assets, and entailing a loss to the depositors. I therefore felt justified in closing and did close the bank on the morning of December 31, 1923, and applied for a receiver that the assets may be conserved and a proper distribution made thereof. The books of the bank show that the assets exceed the liabilities and it is my sincere hope and wish that the receiver whoever may be appointed will so handle the affairs of the bank that every depositor will receive one hundred cents on a dollar. CARL FRITZ, Cashier.
