The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-11-20
Circulation of Unfriendiy Stories
Though Situation Was sound.
SUDDEN RUN At FORT WAYNE
TRI-STATE TRUST COMPANY be-
siEGED By DEPosIToRs.
Building and Loan Company Also Az
fected-Run Due to Malicious Re-
pOrts-Banker Hatch Released.
special TO the Indianapolis journal.

Special TO the Indianapolis Journal.
ELkHART, Ind, Nov. l9.-The Indiana
National Bank, the most popular bank in
Elkhart, and which did the greatest busi-
ness, was forced by a quiet but steady run
of several weeks to decide on liquidation at
meeting of the directors last night. and
the notice was posted this morning. The
public was much surprised. Only small
group of men and women surrounded the
bank entrance when the notice was posted
The banks loans for the most part were
to local industrial institutions. which were
not prepared to respond quickly To requests
for funds, and, though the other two Elk
hart banks and a local capitalist offered TO
join in furnishing $4,000 yesterday, the In
diana National officers decided il would only
avert the issue few days and that il were
better TO close at once.
President Justus L. Broderick, in bed at
his home seeking rest after several sleep
less nights. declared that the depositors
would be fully protected. He ascribes the
closing to the steady, almost imperceptble.
run of several weeks, due TO rumors set
afioat by persons unfriendly to the insti-
tuition. and the banks inability TO secure
help because of the money stringency.
Ia declared there had been no specula-
tive loans and that ali of the funds out
standing had been loaned for legitimate
manufacturing enterprises in Elkhart. The
bank was popularity known as 1.-The factory
bank because of the known fact of it's
liberal and extensive dealings with local
manufacturing interests. Ii is feared that
bad results OF the closing will be wide
spread because of this relation to the fac
tories. President Broderick declared he
was unable to approximate the deposits or
the number of depositors.
The bank began business in January OF
$685. and because of the personal popularity
of President Broderick and some OF the
stockholders has always done a large bust
ness.
Bank Examiner C. II. Bosworth and AS
sistant +. S. Heath arrived from Chicago
this afternoon and are now working on the
books. Bosworth declines to talk until he
learns more of the real conditions. Infiu-
entail citizens are exerting themselves To
secure appointment OF thoroughly trust
worthy receiver.
population-working people as well as in
dustrial and business institutions. Among
other funds now tied up are several thou
sand dollars of the Y. M G. A. building
fund, the structure now nearing compile
ton; about $1,000 of the Evangelical
Church's building fund for structure
planned for next spring, and sl,400 belong
ing to the Elkhart Lecture Association.
| The lecture course viii be abandoned until
| the entertainment bureau consents to ac-
cept checks on the embarrassed bank. The
| next performance is booked for tomorrow
night
The unfortunate depositors bear their
| losses with unusual fortitude and there are
| no sensational incidents on the streets or
| at the bank building. Bankers and other
leaders in industrial and financial affairs
are making a concerted movement 10 give
| support and prevent serious results through
fear engendered by the Indiana failure.
However, neither of the other two banks
was called on to-day TO reimburse deposit
tors, for which they were amply prepared,
and new deposits were large.
President Broderick said the run was i'm
large measure due TO litigation with which
he had been identified president OF the
Elkhart Hydraulic Company. Certain stock
holders had then sold their interests to c.
G. Conn, who brought mandamus proceed
ings to compel Broderick 10 record the
transfer to him. The care is pending. Wal
ter Brown Broderick's brother-in-law is
head of the Elkhart Power Company, and
Governor Durbin is largely interested.