The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-07-07
MILTON BANK
DOORS CLOSE;
SUIT is FILED
Claude Kitterman, Receiver,
Says None Will Lose, AL
though Shortage of Over
$4,000 Exists.
AFTER K|RL|N'S DEATH

company of Milton, Ind, have been
closed, six days after the death of the
cashier, Oscar M. Kirlin, who COM
mitted suicide by shooting himself.
Late Tuesday afternoon stockholders
of the bank filed suit in Wayne cir
cult court asking for the appointment
of a receiver, declaring the institution
to be insolvent. Judge w A. Bond
appointed Claude S. Kitterman, presi-
dent of the First National Bank, Cam
bridge City. receiver. He gave bond
for 100000
Mr.. kitterman stated Wednesday
that the bank depositors are thorough
ly protected and that their deposits
will be returned to them in full as
soon as a settlement Of the banks
affairs can be made.
Irwin j. L. Harmeier, cashier of the
First National bank of Cambridge City
as administrator of the Kirlin estate,
caused the publication Wednesday OF
legal notice of the insolvency of
the estate.
No Worthless Stocks Listed.
Mr. Harmeier denied a report We'd
nesday that kirlin had invested heav-
lily in worthless securities for himself,
and Mr.. kitterman also denied that
the assets Of the Farmers Banking
company included valueless stocks.
Mr.. Kitterman declared that his in
vestigations had revealed that less
than $1,000 of stocks and bonds were
included in the banks assets The
principal assets of the institution are
notes, mostly those Of farmers living
in the neighborhood of Milton.
Although Mr.. Kitterman and a CORDS
of assistants have been working on the
books since Monday, he has not yet
been able accurately to determine the
condition of the institution.
ut would appear that there is a
shortage of between SIS, 900 and $780,
600. l cannot help but feel, however,
that part Of the shortage as now in
dicated will eventually be located" -"
Mr.. Kitterman said Wednesday.
He stated that conditions at the
bank were almost unbelievable. The
books had been neglected for some
time. 1t is even difficult to secure a
complete list of the bank depositors,
it was said.
Says No EmbezzIement.
The suit filed by the stockholders in
the bank asking for the appointment
OF a receiver alleges that Kirlin mis-
appropriated funds of the institution
and converted them to his own use
and that in other ways he mismanaged
and dissipated the funds of the in.
stitution.
Notwithstanding the allegations
contained in the complaint, Mr.. Kit
terman was not prepared to admit
Wednesday that his investigations
had revealed that Kerlin had appro-
priated bank funds for his persona
use.
Mr.. ktterman indicated that, in his
opinion, whatever shortage exists has
been, for the most part, due to the
making of poor loans. The receiver
admitted, however, that he had only
been able to make superficial exam
ination of the affairs of the bank
In the opinion of Mr. kitterman the
mismanagement of the Farmers
Banking company has extended over a
considerable period of time. The re.
port that alleged forged notes have
! been found among the banks assets
received no confirmation from him.
kirlin Couldn't Say "No"
Mr.. kirlin was a man who found
it hard to say no." Mr.. kitterman
remarked when explaining that there
was a possibility that a considerable
amount of notes of little or no value
might be found among the banks as
sets.
Men who had known Kirlin for
years unite In declaring that he was a
man of good habits. was never known
as a speculator, and that he enjoyed
the utmost confidence of the commun.
ity.
1t was learned Wednesday that Kir
Inns bondsmen probably will have to
make up his shortage. Kirlin had a
| blanket" bond and his bondsmen
were his father, Omer Kirlin, one OF
the wealthiest residents of southwest
ern Wayne county, and the late Lycur
gus Beeson.
AS the Beeson estate has not been
settled, 1t can be held liable under
the terms Of the bond. 1t is explained
that in making up the shortage the
resources of the bank and Of the Kir
lin estate would first have to be eX
hausted, but declarations have been
! filed showing the insolvency of both
the bank and the estate
May Have To Cover
This being the case, the bondsmer
would be called to cover the shortage
under the provisions of the law, an, ii
is stated, the bondsmen are amply
a bic to do so. Were they not the
stockholders of the bank would be
called upon to make up the shortage
! There is million dollars behind the
Farmers Banking company for the
protection Of the depositors," Mr.. Kit
! terman said
Records of the Farmers BankinG
company give the following list o.
stockholders: Charles Ferguson, pres
ident; M. D. Doddridge, vice presi
dent; Cyrus o. Hurst, Joseph Clev
enger, Mrs. Louis Beeson. George c
! Florea, James c. Mount. Howard H
Mount and the late Oscar NJ Kirlin
Depositors Want Money.
Many of the depositors called at tn,
bank Wednesday, asking that thei
| deposits be paid over to them, SOM
of them stating that they had urgen
need for their money. but all wer
Informed that no deposits would b.
paid out until the investigation Of tn
banks affairs had been completed. A
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