There was a Madison County Orphanage at the time Frances Hamilton would have been a child in Madison County. At the time I believe it was located on Columbus Avenue in Anderson.
The orphanage moved in the 1920's to a location east of town and housed children until probably the 1980's. By then it was called the Bronnenberg Home.
It's possible that there are records for that time period still in existence. They are kept by the current Madison County Detention Center.
Have you ever gotten a copy of the marriage license application for 1916? There should be one and it should tell you some information about who her parents were.
Beth E. Oljace
Indiana Room Librarian
Anderson Public Library
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