The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-21
j. It. Johnston Was President of Both,
and Bank Examiner Caldwell
Charges Gross Mismanagement.
$4,000 WORTHLESS LOANS
STARTLING REVELATIONS TO COME
WITH EXAMINERS REPORT.
State Medical Society Meets at Terre
Haute-Jury Has BrOwn-Sex-
ton Murder Case.
Special to the indianapolis Journal.

Special TO the Indianapolis Journal.
LOGANSFORT, Ind, May 20.-Business
circles of this city were thrown into ex-
citement this morning by the announce
ment of the failure of the State National
Bank. Business was transacted yesterday
as usual and deposits were received up to
and after the time of closing. The insttu-
ton has been considered by outsiders as
one of the most substantial in northern
Indiana National Bank Examiner George
G. Caldwell, Of Detroit, examiner for the
northern Indiana district, came unexpect-
eddy yesterday morning and called on the
officials of the State National to submit
their books for examination. He soon found
the bank was rotten and called a meeting
of the directors for o'clock this morning.
This resulted in the examiner closing the
bank and taking possession pending an in
vestigation The true state of affairs is not
given out. The last statement made by the
bank on March shows resources to the
amount of $716,065.36, of which over 1922 900
is in the shape of notes and other paper
which are now supposed to be bad. largely.
In this connection it is reported tonight
that the rotten condition of the bank as It
will be fully revealed in a few days can
hardly be surmised The further the bank
examiner got in his examination of the
banks securities the worse the case be-
came. Some of this could not help becom-
ing gossiped about, as several are said
to have knowledge of the corrupt situation,
and tonight alarming rumors were af1oat.
1t is believed, however, that these reports
are exaggerated. 1t is not believed that
there was any forgery or ENLIGHTENMENT
or any willful squandering of the depos-
itors' money. 1t is understood that Presi-
dent Johnston and others indebted to the
bank will make over private property to
secure the depositors as far as possible. If
so, this will probably stop any criminal
prosecution.
The liabilities include deposits subject to
check amounting to $2O4,372, ana demand
certificates of deposit of $146,559 The line
of loans has been decreased about $1,000
since the statement was issued, and the de-
post line is not so heavy by about $4,000.
Examiner Caldwell is not ready to make a
detailed statement, but said:
When l began an examination of the
banks condition yesterday l very soon
found things which convinced me the bank
should be closed in the interest of the de-
positors. / not able to state what the
deposltors will realize; in fact, l can give
no figures at all. There has been gross
mismanagement of the bank s affairs. The
line of loans is too large and much is worth
less. Just how much l am not able to
state | think / will be able to give an
authoritative statement in figures to the
public at the close of the week
The bank directory comprises some of the
foremost citizens here. They are john +.
Johnston, president; 5. W. Ulery, vice
PRESIDENT w. II. Snider, W. M. Elliott and
Jehu r. Elliott, direcors. Since the death
of Henry j. Heitbrlnk, the cashier about
year ago, there has been no regularly
elected officer in that position.
Among the heaviest deposltorS are county
Treasurer Isaac Cash, $4,000 and City
Treasurer Ed Barnett. $500. Other indi-
city School Board had all of the city school
money on deposit there, but the amount
was small and will not affect the running OF
the schools.
Following are the stockholders in the
bank whose stock was claimed to be quoted
Elliott, SO shares; Samuel W. Ullery, 90
shares Alex. Hardly, 10 shares; Sophoma j..
Elliott "a shares; Mary j. Snider, "A shares
Sophonia j. Elliott, extra 10 shares; w. M;
Elliott 20 shares; Jehu I. Elliott, 80
shares; Mary Jeroleman, 10 shares; So
pbonia ]. Elliott, trustee, lis shares; Harry
S. Elliott, 20 shares; John F. Johnston, o62
shares j. c. Ingram Indianapolis, ~
shares William G.. Metzger, Chicago, ~
shares Caroline NJ. Reeves, RICHMOND Az
shares Caroline M Reeves and Mary L. X.
Foulke, Richmond, 200 shares; Henry Z.
Thornton, trustee, at Newtown, so shares;
Henry c. Thornton, Newtown, IA, ~
shares: M c. Thornton, Newtown, Pa, 81
shares; Mary T. Goodman, Newtown, Pa,
20 shares: George w. Bishop, Walton, IND,
sc shares; George II. Prescott, Terre Haute'
70 shares. 49,.
1t is said that Johnstons bank at Month
cello, which failed to-day owed the State
National $14, 900.