The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-05-13


Nobiesville. and the bank is in no wise
affected by the failure at Chicago. except
that there Ia q small balance on the books
of the Columbia due TO tne First National
Bank of Noblesviile. The amount OF this
balance is so insigniticant that il will IN no
wise AFFECT the Nobiesvllle bank.
In addition 10 the numerous banks OF
which Dwiggins was tho head he was like
wise the organizer nnG president OF the
United States Loan and Trust Company,
which did o large business in the way or
farm loans, his method being to loan the
money 10 the farmers at per cent. inter-
est. payable semi-annuaiy. In closing up
the loan he required the borrower to exc
cute first mortgage for the amount OF the
principal. The mortgage bond Tor the
principal had interest coupons attached
for the interest at the rate OF O per cent.
He then took second mortgage and notes
for the other 2 per cent. OF the interest.
The principal note with the per cent.
coupons were sold throughout the coun-
try. and the money thus obtained was put
into new loane. He TINS secured as bis
profit the per cent notes. srcured by the
second mortgage. together with whatever
principal note. In this way the United
States Loan and Trust Company has
placed q large amount of money on farms
IN this State.
A Paris g. Dwiegins Failure.
specia. 10 the Indianapolis Journal.
KoKoMo, Ind. May 12.-The Farmers
Bank. of Greentown. in this county, went
to the wall to-day. which. taken with the
Russiaville Commercial Bank. had deposits
of 100000. The two institutions were
under the Same management The two
had capital stock of $50 600 each. under
the control of Paris. Dwiggins ~ Co. They
are practically branches of the Dia
National Bank, OF Chicago. that failed yes
terdny. The Chicago people owned but
little of the stock. and the loss will fall
heavily on local stockholders and depos-
ltors. The banks were crippled recentiy
by the failure of the o. l.. Evans Milling
Company. Ex-Gov. Ira j. Chase is stock
holder in the wrecked bank ut Greentown.
The officers claim they can pay ont. bnt
there is great apprehension that the wind
mp will not show the necessary assets.
The Russisvfiie Bank Cicsei.
Special TO the Indianapolis Journal.
RUssIAvILLE. Ind. May 12.-The Com
mercial State Bank, of this place. closed it's
doors this morning with piacard on che
door announcing suspension on account of
the failure of the Columbia National Bank.
of Chicago. The Commercial Is one of the
many small banks put in operation by the
Dwiggins syndicate, of Chicago. and has
for three years. Their deposits were not
overly heavy at this time aud the officers
say that the depositors will be paid in full.
The failure has created good deal of
ness will he somewhat crippled for q few
days. The general opinion Is that they
will make good their deposits.
A dispatch from Washington says: THE
failure of the Russiaville bank In conse-
quence of the collapse of the Columbia Ma
tional Bank of Chicago. caused no surprise
at the Controllers office to-day. as the dis
tress of q number of small hanks ard hank
ing frme IN northern Indiana wae clly ex-
pected."
Orleans Bank SuspeDds
Special to the Indianapolis Journal
ORLEANS, Ind. May 12.-The bank of
Orleans closed its doors to-day. The fail
ure of the Columbia National, of Chicago.
ana the Capital National. of Indianapolis.
are assigned as the cause. The bank is
owned by Paris x Nave. of indianapolis,
and was dong good business. Frank
Rawlings. the cashier. is using every effort
to satisfy the demands of the excited de-
poeltOra Negotiations are now pending by
which the necessary relief will he secuted.
and it is probable the bank will be doing
business again In q few days. Its capital
stock is SIC. 900. and it is reported that its
deposits will reach S25 0o0.
Bank at Brookston Gone Under.
Special to the Indianapolis Journal
DELPHI. Ind. May 12-Tbe Commercial
Bank OF Brookston. White county, one of
the Dwiggips banks closed its doors this
morning. The depositors were mostly
farmers. and announcement of the bank
suspension spread rapidly through the
country. 1t was not long before the little
town was thronged with anxious deposi-
Rarnaa a Al
home. and stated that there was enough
money and securities In the safe TO pay
every depositor in full. Steps have been
taken to have u receiver appointed.
tIzens' Bank at Knox Closed.
Special to tho indianapolis journal
KNOX. Ind, May 12-The Citizens State
Bank, of this oity. suspended to-day.
Dwiggins of the Columbia Bank of Chi
cago, was the principal owner. Depositors
have been panic-stricken all day. The
banks at Walkerton. Arcadia. Oxford and
Boswell have closed. All were dependent
On the Columbia.
Morrisuown Commercial Bank Closed.
Special 10 the Indianapolis Journal
MoRRIsrowN, Ind. May 12.-The Com
mercial Bank ct this place suspended this
morning caused by the failure of the
Columbia National Bank of Chicago. It is
thought the bank may resume IN the morn.
ing and pay deposits. No uneasiness is felt.
Rochester Banks Not Affected.
Special TO the Indinnapolis Journal
ROCHESTER,. Ind. May 12.-Zimri DwiR-
gins. who was one of the organizers of the
Citizens State Bank here. sold all his in
terest therein some time ago. None of the
banks In this city are affected by the fail
uTe of the Columbia National
Bank at Monroevilie Fails
Special to the Indianapolis Journal
MoNRoEvILLE. Ind. May 12.-Tte bank
here. q branch of the Columbia National
Bank of Chicago. closed It's doors to-day.
A statement Sc to the condition of the bank
cannot be given. The depositors were OF
the poorer class OF people.
Citizens Hank of Hebron Suspends.
Special TO the Indianapolis journal
HEBRON. Ind. MAY 12-The Citizens
Bank of Hebron closed Its doors to-day.
The suspension was caused by the Colum-
bia National failure.
Dunkirk Bank Closed.
DuSKIRK. Ind. May 12.-The Dunkirk
Bank closed it's doors last night A crowd
J IUonlinusd GA secona PHss-l