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FRANKLIN BANK CLOSES DOORS Examiner Acts Quickly After Starting On Books—Deposits Small—Loss Reported On Loans To North Ohio Company FRANKLIN, OHIO, Feb. 19—"Closed by order of Directors and Harry L. Lincoln, Bank Examiner." A placard bearing these words confronted patrons of the Warren National Bank when they found the doors of the institution closed shortly before noon Friday. Lincoln, beyond saying that the decision to close the bank had been reached by the Board of Directors and that he had notified the Comptroller of the Treasury at Washington of the circumstances, refused to give any information concerning the closing of the institution, which is Franklin's second largest bank and which was established in 1905. Deposits Drop Business men of Franklin expressed the opinion that closing of the bank was due to the fact that deposits had been dwindling rapidly and that efforts to merge the institution with the stronger Franklin National Bank last November failed to materialize. The bank, in its statement at close of business December 31, published recently, showed deposits aggregating $59,202 and loans and discounts of $71,000, it was recalled. The bank was capitalized in 1905 for $25,000 and had $5,000 surplus and was credited with having $3,000 as undivided profits, with a note circulation of $25,000. Decision Reached Quickly Harry L. Lincoln, bank examiner, arrived in Franklin Thursday and began examination of the bank's accounts when the bank was opened, as usual, for business. Decision to close the bank was reached after Lincoln evidently had gotten deeply enough into the examination to indicate this course of action. Franklin Directors of the bank declined to speak of the closing, referring questioners to the examiner. There were reports that the bank had suffered heavily on a loan to a construction company having contracts in the Northern part of the state. This report, however, was not verified. The bank, established for 22 years, never had gained a great following, according to Franklin business men. Some time ago its deposits were reported as $147,000, but these had declined until the total was less than $60,000 at the beginning of the current year. It was reliably reported that in November, 1926, an effort was made to consolidate the Warren National with the stronger Franklin National Bank, but nothing came of the negotiations, and among business men the closing of the institution occasioned little surprise, since it was known the volume of business was not heavy. The last reported sale of stock of the bank was for $155 a share. Trading Is Reported Following news of the suspension of the bank this morning, there was reported to have been trading in the shares of the bank. George D. Francis is President of the bank, A. D. Barkalow is vice-President, C. W. Munger is the Cashier and C. L. Berger the Assistant Cashier. The above with W. H. Berger, father of the Assistant Cashier, and H. W. Meeker, Franklin insurance man and Dayton financier, who is reputed to be a heavy stockholder, comprised Directors of the institution. Excitement was rife in Franklin following the news that the bank had suspended, but this was lessened by the fact that the deposits of the institution were comparatively small. Closing of the bank today recalled a similar occurrence in this community 30 years ago when another bank failed, the Cashier later being convicted of embezzlement and sentenced to the Ohio Penitentiary. No statement of liabilities and resources, or, indeed, of the cause of the closing, was made by either Directors or the bank examiner in charge of the institution. Other national banking inspectors are expected to arrive in Franklin on Saturday, or Monday at the latest.
