The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-05-09
A BANK HAS TO CLOSE
STATE EXAMINER TAKES CHARGE
OF THE CITIZENS, OF UNION CITY.
The Assets VIII Probably Equal La
biIitics-The Former Cashier Was
n Little Short.

Auditor Of State Daily yesterday notified
State Bank Examiner t. Ii. Millikan. OF
New Castle to take charge OF the Citizens
Bank. Of Union City. pending the appoint
ment of a receiver for that institution. This
was done In response to a request from Pres
ident Cadwallader, OF the bank, in letter
In which 10 was stated that the bank had
decided 10 suspend business and close up its
affairs. The receiver will be appointed by
the Randolph Circuit Court. and until that
time Mr. Millikan will act as custodian OF
the affairs of the bank.
The bank closed its doors yesterday Morn
ing. after over thirty years of existence. 1t
was founded in 1866 by Ex-Governor Isaac p.
Gray and Nathan CadwalIader. 1t was oper-
ated as a private banking house, and was
known as the Gray & Cadwallader Bank un-
I'll the passage Of the State banking law, in
1S72. In the spring of 1873 the bank was in
corporated as the Citizens Bank of Union
City. being the second bank in the State 10
incorporate.
The bank has always been looked upon as
one Of the sound institutions OF its kind in
the State, and 1t is still so considered by
persons who know anything about it. It's
reports at the Statehouse and the informa-
ton which the Auditor is able 10 gather
about TO lead him 10 the belief that the sus-
pcuSiOn Will hot Iesuit N loss 10 elmer ue-
positors or stockholders. The application for
the appointment Of a receiver however
shows that IL Is not the intention OF the
management OF the bank To attempt 10 re-
sumo again, but that IL is the intention TO
wind up the business.
The last report OF the bank made to the
State Auditor. as well as many previous re-
ports, shows that the bank held a large part
OF its assets in real estate. This fact would
naturally weaken the ability OF the bank TO
stand heavy run, ana would also make the
winding up OF its affairs slow. As 10 the
reasons which led TO its suspension the Au-
iitor or state Is not informed. The letter
asking for some one TO take charge OF the
oank gave no Information. concerning the
condition OF the bank. From a gentleman
who has just returned from Union City and
who. Is In position 10 know considerable
about the bank. some facts were learned
The trouble began witt. the resignation
time ago of Cashier r. W. Reeves
Shortly after his withdrawal from the bank
a shortage was discovered. and ne was called
over TO the bank some real estate, and the
recorders Office at Union City shows a SINH
lar transfer made by his mother. This ac-
ton is believed 10 have set rumors afloat
sureties on the bond OF the city treasurer
had a meeting. and the result was request
that the treasurer withdraw the city funds
from the bank. The meeting OF these bonds
men and the subsequent withirawal of the
FUNDS was not Kept very q2tet, and gossip
began 10 cause people TO determine 10 get
their deposits from the Institution. The re-
suit OF the whole thing vas that there was
run on the hank. IL did not take long to
then there was nothing ieff but s a fIa
In considering the situation Tuesday evening
the directors came 10 the conclusion that
they would wind up the banks affairs. and
wrote the State Auditor TO that effect.