The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-07-16
The Suspension Causes Panic, and q
Run on Several Other Banks
EnSues as the Result
A Receiver Asked For, and William
Wallace Appointed by Judge Taylor.
Speculation as to the Causes and Effects
of the Failure How Other
Bankers Regard 1t.

Yesterday was day of much excitement and
anxiety in Indianapolis business circles. The
announcement that the banking house OF
Fletcher & Sharpe, one of the oldest and most
reputable financial concerns in the city, had sus-
pended, caused apprehension Of widespread dis
aster, as we'll as much solicitude among deposit
ors who feared that their savings had been
swept away through no fault of their own. Wild
rumors rejecting upon the stability Of other
banks and regarding the extent and character of
the failure, did much to alarm all classes of
citizens, but with more accurate information,
and the allaying to certain degree, OF
the excitement came a return OF
confidence and a feeling of comparative
security. At the close of business hours, last
night, the fear of other failures had to a great
extent, abated, and the financial outlook was
regarded as much more encouraging than it had
been during the day.
EARLY yesterday morning the following notice
was conspicuously postedon the front door of the
bank:
INDIANAPOLIS, July Is.
Owing to inability to realize on our securities,
we regret to say that we are compelled to suspend
payments Our property is ample to pay all depos
49, = e' FLETCHER & SHARPE.
Nothing could have created greater surprise.
Fletcher 8 Sharpe's had always been considered
one Of the safest and most conservative banking
concerns of the city, and its ability to meet its
obligations had not even been questioned. No
rumors regarding its stability had been current,
and not even the other bankers Of the city, with
one possible exception, had any idea of the de-
plorable condition of affairs.
THE LEGAL PROCEEDINGS.
At the opening of Judge Taylor's court, in the
morning, Harrison, Miller & Elan, attorneys for
the partners in the bank, fled petition for the
appointment of receiver, which was granted,
and William Wallace named for the place. He
Immediately gave bond in the sum of 100000
and entered upon the trust A transcript of the
legal proceedings, which assigns their reasons for
the suspension is as follows:
Stoughton A. Fletcher, jr. vs. Thomas h. Sharpe
Ingrcm Fletcher and Albert E. Fletcher.
The plaintiff complains of the defendants, and says
that the plaintiffs and defendants partners, carry
ing banking business in the city of Indianapolis
and for many years last past have been such partners
that the said bank by of stress of the times is
unable to continue in said business and pay its ordn
airy bills and liabilities the same mature, and is,
therefore, insovent and it is necessary in order to
the preservation of the right of the creditors of said
bank and to prevent preferment being obtained in the
premises that receiver be appointed to take posses
bank and to pay its liabilities pro rata among its
era creditors. Plaintiff further says that account
ing is necessary between the partners in the
premises and he, therefore, prays the court
that this court will take charge of said
business and assets and viii administer said assets and
Will adjudge such according, and grant unto the par
ties dissolution of said partnership, and all such
further and proper relief as may be right and proper
Attorneys for Plaintiff.
To this an answer was fled by the defendants,
as follows:
The defendants come and answering the complaint
herein admit the allegations thereof Wherefore the
defendants join in prayer for the appointment of
receiver as prayed on said complaint.
w. F. HEMRIoHs, Attorney for Defendants.
The order of the court reviews proceedings,
and expresses the belief that case is made for
the appointment of a receiver, and decreeing-
1t is ordered that William Wallace Esq. of Indi-
annapolis be- and he is hereby appointed receiver of
the property rights and credits Of the said copart
nership known as Fletcher & Sharpes. Said receiver
Is requested execute his bond t.. for
such in the of five hundred thousand dollars
$500 ,oo0) Said receiver is hereby directed, upon
control and custody all the assets property books pa
pers and credits Of the said firm of Fletcher & Sharpe
and hold the same subject to the order of the court
He shall, possible, make, and file, under
oath, inventory and apprasement Of all the prop
erty which may into his hands receiver 1t is
further ordered and adudged that said receiver shall
have power and authority to bring, maintain and de-
fend suits in his own name in all matters relating to
said estate
And now comes the receiver above named, and files
bis bond which is in the words and figures following
Know all men by these presents, that we are held
and firmly bound unto Moses g. McLain, Clerk of the
Superior Court of Marion county, Indiana for the
of all parties interested in the penal of five
hundred thousand dollars $500 6o0), for the pay
ment of which we hereby bind ourselves, heirs,
and our personal representatives.
The conditions of the above obligation are as fol-
lows: Whereas, the above bounden, William Wallace
has been by the Honorable Napoleon b. Taylor Judge
of the Superior Court of Marion county, duly APP
pointed receiver Of the property and Of the
firm of Fletcher & Sharpe bankers, in the case of
Stoughton A. Fletcher, ir. against Thomas H. Sharpe
ct al, now if the said William Wallace shall faith
fully discharge his duties as such receiver in
said action, and obey the orders of the court
and of the judge thereof and shall for and
pay over all the moneys and assets which may come
INTO his hands as such receiver then the obligation to
Signed: William Wallace. BENZ. Harrison, w. a.
q. Miller, D. M Ransdell Theo. P. Haughey, John
W. Murphy, Ovid D. Butler, John B. ELAN, John S.
Epann T. 81. Spann, Robert Browning John c. New,
Charles +. Meyer, A. B. Meyer A. l. Wright Brain.
nrd Rorison, John Coburn
Approved by me this July Is, 1884
NAPOLEON B. TAYLOR Judge
Which bond and the sureties thereon are now APP
proved by the Judge and thereupon said receiver IS
sworn to faithfully discharge the duties Of said trust
NAPOLEON B. TAYLOR, Judge.
EXCITEMENT OVER THE FAILURE
The news of the suspension spread raoidIy
through the city and created the most intense
excitement In a short time there was an inn
mense crowd around the bank building com
posed principally Of anxious depositors. who
clamored vainly for admittance All of the
bank officials had gone to their homes except w
T. Fenton, the cashier, who remained to arrange
the papers and books. Nobody was allowed to
go in the room and posse Of police who had
been hastily summoned kept the crowd
away from the entrances and the windows.
Anxious inquiries were made for the partners in
the bank, but it was announced that they had
gone to their homes A few of the more solicit
GUS creditors followed them there but they de-
clined to see anybody. The excitement increased
about the bank as the crowd grew greater
Business men from all parts Of the
Of mechanics, workingwomen, and capitalist in
modest way jostled each other in their anxiety
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