The Central State Bank

The Central State Bank

The Central State Bank opened its doors to the public in July, 1917. The Central State Bank became the fourth financial institution to open for business in the city of Whiting. According to the January 24, 1917 edition of The Times, "That the city (Whiting) is a good field for banking operations is attested by the fact that the older banks here have deposits of more than one million dollars each, and are among the most substantial in Lake County." The bank was originally housed in a building leased from John Buczkowski at the intersection of 119th Street, Cleveland Avenue and Indianapolis Boulevard. On its opening the bank was considered to have the best location of any financial operation in town. The Central State Bank started with a capital stock of $50,000. It was installed with all of the latest burglar proof equipment at the time, including a "good substantial, modern" vault.

The first directors chosen at the bank were as follows: George O. Schaaf, Henry F. Eggers, John Buczkowski, Oscar E. Meek, Dr. G. H. Hoskins, Rev. John S. Bradac and J. H. Feterhoff. The Central State Bank named William E Vater, President; J. H. Feterhoff, Vice President; Charles D. Gainer, Cashier; and J. S. Hurskovich, Assistant Cashier. The Times stated, "The Central State Bank is an institution of which the people may well be proud. The directors and officers are all well known residents of Whiting and its vicinity and will be a sufficient guarantee that all funds or business entrusted to the Central State Bank will be safeguarded and attended to in a most satisfactory manner."

The rapid growth of the Central State Bank, nine years after its doors first opened, made a new larger building necessary. Plans were drawn up in the fall of 1926 to create a six floor structure at the corner of 119th Street and Indianapolis Boulevard. The main floor of this new building was to house the bank, while the five floors above were to contain 64 offices. The initial estimate for the cost of construction was $460,000. The Central State Bank's new home would become the most prominent structure of the city of Whiting's skyline.

In April, 1928, the Central State Bank Realty Company was incorporated to own and hold the Central State Bank building, which was under construction at the time. According to the incorporation that was filed with the Secretary of the State of Indiana, the common capital stock for the realty company was $175,000, while the preferred stock was valued at $250,000. The incorporators and officers of the Central State Realty Company were as follows: John H. Fetterhoff, Oscar E. Meek, Henry F. Eggers, and Anthony D. Baker.

The new Central State Bank formally opened to the public on Saturday, October 27, 1928. The dedication ceremonies started at sunrise, when the American flag was hoisted to the top of the flag pole atop the six story structure, while reveille was performed by buglers. The ceremony was conducted by the American Legion in approved military form. Later in the day, the burglar alarms, provided by McClintock Alarm Systems, were set in motion. This gave visitors an opportunity to see and hear first hand what would occur if there was in fact a bank heist. Several hundred people visited the Central State Bank in the morning and a great many more went through the bank's doors throughout the day. All of the visitors were provided with escorts, who showed them through the building, from the basement to the sixth floor. Everyone who visited the "Oil City's" first and only skyscraper received a souvenir to serve as a memento for the day's activities. In addition, visitors were given the opportunity to inscribe his or her name in a registration book of imperishable parchment. The book was then presented to the Whiting Public Library. The Library still has the registration book in our Local History Room.
Erected at a cost of $425,000, the Central State Bank contained all of the modern conveniences and features. Throughout the six story structure, there was a habitable basement that housed four store rooms, banking quarters on the main floor, five shops and 66 offices on the upper floors. The entire structure was constructed of steel, concrete and marble, and it was one hundred percent fire proof. All of the marble that was used throughout the building was imported from Italy and Belgium.

The banking room located on the first floor was constructed so that it was concealed from view. This feature provided absolute protection against holdups. It gave armed employees of the bank the advantage of providing a full view of the first floor without being exposed themselves. In case of a holdup the perpetrators would receive a rather unfriendly reception. In addition, the banking room contained two vaults, installed by the York Safe and Lock Company, which had twelve inch steel doors, weighing fifteen tons. The doors were also equipped with a burglar alarm system, which was connected with the night depository. An innovation at the time, the night depository enabled customers to deposit money at all hours when the bank was closed.

The check desks in the lobby were of marble, while the back of the cashier cages were finished with rubber stone. The ceiling of the banking room was finished with old ivory, and the sides were finished with Tiffany panels. Throughout the main floor there were several decorations finished with genuine gold leaf. All of the floors were of marble, while the fixtures, which were the most modern at the time, were of walnut and marble, with a travertine background.
The upper floors, which contained 66 offices, were accessible through Otis elevators, which were controlled by lady operators. When the bank opened in 1928, nine individuals had perfected leases and were to have offices in the building. The were Dr. A. J. Lauer, Dr. Bopp, Dr. Frank R. Doll, The Standard Drug Company, Dr. B. W. Avery, W. B. Jennings, Attorney Charles S. Perel, Attorney Gilbert S. Brindley and the Law Firm of Fetterhoff Ahlgren and Kelley. The remaining leases were being negotiated by a number of other business and professional men, and it was estimated that after a short time all available space would have been occupied.

Each office was provided with hot and cold water and double cabinets. The woodwork in the offices and in the corridors was silver oak, with cream colored walls and Tiffany borders. In addition, the offices had automatically controlled heating systems, which permitted individuals to regulate the temperature based on their own preferences. On the sixth floor, there was a large room that was used as a reception area for all of the tenants to share. Also, there were ample rest room facilities provided on each floor. The citizens of Whiting were quite impressed with the new Central State Bank building. The Times said that Whiting's citizens should be proud of the structure, "To open a building of this size and caliber would be a welcome addition to cities many times the size of Whiting is by no means a small accomplishment, and to them this community can feel grateful."

Sadly, four years after the Central State Bank opened at its new location, the bank became defunct. In 1932, during the Great Depression, the bank suffered a run, where a majority of their customers demanded to withdraw their money. The bank did not have sufficient funds to pay out this high demand and was forced to close. The Central State Bank paid a dividend of 10 per cent on all claims. In addition, they paid off all claims of $5 or less in order to eliminate the costly bookkeeping. Although the bank was no longer in business, the offices in the building remained for many years to follow.
In November, 1974, Lake Superior Court Judge James J. Richards ordered the Central State Bank building to be closed and put into receivership. The motion was presented by Dominic and Mariann Sevald, part owners of the building. The Sevalds were suing Clement and Alice Knapp, the other owners of the six story structure. The lawsuit claimed that the Knapps allowed over $200,000 worth of damages to occur to the property since they took over the operations of the building in 1970. The Sevalds and Knapps co-owned the Central State Bank building since 1941. In addition, the lawsuit reported that the Knapps allowed property tax bills to go unpaid. The Knapps responded by alleging that the Sevalds abandoned the building in 1969, when they feared that the real estate became unprofitable, failing to pay their fair share of the taxes in the process. The Whiting City Council had been threatening to condemn the building, stating that the brickwork was unsafe and could loosen and fall when water and ice formed between the bricks.

In January, 1984, Whiting councilwoman Marge Pardinek, sent a letter, signed by all seven members of the city council, to the Lake County Commissioners requesting that an inspector check the Central State Bank building and fix any repairs that needed to be made. The 60 year old building had been abandoned for 25 years after it was reverted from private to county ownership, when its real estate taxes were failed to be paid. In a written response from Lake County, the County Commissioners claimed that they did not have the money to repair abandoned buildings. In addition, the letter stated that Whiting Mayor Joseph Grenchik contacted Lake County several months earlier asking that the property be given to the city. Hearing this, Pardinek questioned the Mayor as to why he did not share his plan with the common council. The Mayor responded that the building is a city problem not a county problem. Grenchik went on to say, "It's my job as city administrator - not council members as legislators - to handle this problem." The Mayor planned to acquire the property, dismantle it, and then sell the land.

A month later, the Whiting Board of Public Works was told that it would cost $101,000 to demolish the Central State Bank building. But, Councilman William Ciesar. Jr. stated that the city did not have the funds to raze the structure. He said, "Whiting had $5 Million in revenue last year, but spent $5.5 Million - and still has many bills outstanding." The Mayor responded by saying, "That excuse will look flimsy when a brick falls off the building onto one of Whiting's citizens."

In the fall of 1984, concern over the safety of the Central State Bank building was heightened when the President of the Whiting Plan Commission, Kenneth Curosh stated that he was especially worried by the proximity of the building to the students at St. John the Baptist School. For eight months, Whiting had been trying to acquire the property from Lake County. But, the transfer procedures were stalled because there were two heirs to the past owners of the building that had to be contacted so that they could give up their rights to the property, before the city could take possession. The Mayor stated that as soon as the city has legal title to the building demolition would begin. In addition, the Mayor claimed that there was a potential buyer