State Savings & Trust Company (Indianapolis, IN)

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STATE SAVINGS BANK CLOSES; TO LIQUIDATE 8,000 Depositors Affected as Doors Shut on City Institution. Doors of the State Savings and Trust Company, 123 East Market street, were closed today on order of the board of directors, as state banking department officials started liquidation of the company's assets. Decision to close the doors of the institution was reached Friday afternoon, affecting 8,000 depositors, according to Scott R. Brewer, president. Brewer, although making no definite comment on the possibility of full payment of claims, said with proper management payment might be made in full. Police Assigned to Bank "The reason for closing, in the mind of the board, was the matter of liquidity rather than solvency, especially as this was affected by shrinkage of deposits," Brewer stated. Police were asigned to the bank this morning as a protective measure. Thomas D. Barr, assistant state banking commissioner, said the inventory of assets and liabilities was started today. This will be followed by court action for the appointment of a receiver next week. Resolution Is Adopted Directors adopted a resolution stating that inability to market real estate holdings, depreciation of farm values and shrinkage of deposits made it expedient to go into voluntary liquidation in order "to save its depositors and stockholders from loss." When the closing order came, the financial situation was: Deposits, $1,410,000; capital stock, $375,000; surplus and reserves, $48,500, Brewer said. Samuel P. Good, state bank examiner, assisted by K. G. Inwood and J. W. Parrett, examiners, is working on the bank's books. The company moved into the Market street location several months ago, taking over the property formerly occupied by the J. F. Wild & Co. State bank, which crashed three years ago.

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SEEK RECEIVER FOR STATE SAVINGS BANK Petition Is Filed in Circuit Court by Indiana Commissioner. Petition for a receiver for the State Savings and Trust Company was filed today in Marion circuit court by Luther F. Symons, state banking commissioner, through Attorney-General James M. Ogden. The bank was closed Saturday on order of the board of directors, and Scott R. Brewer, president, issued a statement saying closing was a matter of liquidity rather than solvency. Eight thousand depositors were affected by the move. Assets of the bank are listed at $1,400,000 in deposits and $400,000 in other properties. Hearing for appointment of the receiver will be held by Judge Harry O. Chamberlin Saturday.

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BANK RECEIVER PETITION TO BE HEARD SATURDAY

Hearing on petition for receiver for the State Savings and Trust Company, 123 East Market street, was set yesterday by Judge Harry O Chamberlain of the Circuit court for Saturday The petition was filed by James M Ogden, attorney general, and Charles eral. on behalf of Luther F. Symons, state banking commissioner Affairs of the institution were taken by the state banking department Friday afternoon upon request of directors of the bank.

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CLOSED BANK'S SAFE DEPOSIT VAULT SOLD State Savings Boxes Acquired by Bankers Trust Subsidiary. The safe deposit vault of the State Savings and Trust Company, closed recently, has been sold to the Bankers Trust Safe Deposit Company, Eben H. Wolcott, receiver of the former company, announced today. Various sections of the safe deposit boxes, each weighing two and one-half tons, will be removed today and Friday without disturbing contents of boxes. The Bankers Trust Safe Deposit Company, subsidiary of the Bankers Trust Company, Pennsylvania and Ohio streets, will continue service to safe deposit box holders of the closed bank without additional charge until expiration of leases of box holders.

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BANK FAILS INDIANAPOLIS

Heavy Run Closes Third

Oct. of the Washington Bank and Trust Company closed the institution today and placed its affairs the hands of the state banking partment. Heavy withdrawals yesterday caused the closing, was announced this morning by Luther Symons, banking The institution was capitalized and had surplus of

Barr Assumes Charge. Thomas Barr, assistant state banking took personal charge of the institution. of the bank are Edward Morris, president; Clifton Fields, Francis Payne, Pearcy, secretary; Calvin Clymer, assistsecretary. The bank was the third in Indianapolis to be closed in the past week. Others City Trust Company and the State Savings and Trust Company.

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Washington Fails To "Run"

Heavy run Monday, which depleted cash was given as the reason for closing the Washington Bank and Trust Company at Indianapolis by Luther Symons, state banking commissioner. The bank failed to open its doors Tuesday, directors having voted to put the institution in the hands of the banking department, according to Symons. Thomas D. Barr, assistant state banking commissioner, took personal charge. The institution was capitalised at $200,000 and had surplus $88,824.59 at the last bank call. Report at that time showed the bank in fair condition, Symons said, but could not withstand the Monday run. City Trust Company closed by vote of directors last week. The Washington bank is the fourth downtown financial institution to close, others being the Wild bank and the State Savings and Trust Company. Officers the Washington bank Edward Morris, president: Clifton Fields, Francis W. Payne, and trust officer; William Pearcy, secretary; Calvin assistant secretary; Petrache assist-

Mrs. W. H. Schlosser attended meeting and luncheon of the Gen. Lew Wallace chapter of the Daughters of the Union at Terre Haute, Thursday. In the evening she was the guest of honor at dinner the home of Mrs. George Shannon, regent of the Terre Haute D. of U. entertaining the board members of the chapter. Mrs. Schlosser is Indiana state regent of Daughters of the Union.

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Jess Murden, state highway commissioner and sometimes termed "unofficial Governor of Indiana." Murden denied he had interested himself in the City Trust suit, but Symons previously had confided that Murden had suggested getting the suit before Milner if possible. This also was said to have been suggested by Governor Harry G. Leslie in a telephone conversation with Symons last week. McTurnan, who appeared as Symons' counsel today, is known to have conferred with Thomas D. Barr, Symons' assistant, at Barr's home Friday night. Barr originally was reported to be slated for one of the receiverships, but vigorously denied any such intention. He has been with the department many years and was chief before Symons was appointed by former Governor Ed Jackson.

### Symons' Term Ended

Symons' term expired Oct. 1, and Barr was reported in line for the chieftainship again, but Leslie, following his policy, neither reappointed Symons nor appointed any one else to the place. Under these circumstances, the present office holder stays on without reappointment. Affirming jurisdiction of probate court in the appointment of receivers, a jurisdiction questioned by Ogden, Probate Judge Mahlon E. Bash issued a lengthy statement today in defense of his position. The statement cites statutory provisions as well as decisions in superior courts throughout the state. Among them is listed the receivership action against the Tuxedo State bank, which was prosecuted through the probate court and in which Attorney-General Ogden represented a creditor and obtained a judgment on a claim.

### Another Suit Entered

Ogden is a director of the defunct City Trust Company. Erve Hanford, attorney, 511 Meyer-Kiser Bank building, contended today that he has a suit for receiver filed in circuit court against the City Trust Company, which takes priority over all of them. It was filed Oct. 29 by Hanford as guardian for Richard Hinton Menges, who had $428.25 in the City Trust bank when it closed. Hanford contends that the state banking department has no exclusive right to ask for a receiver and he wants his suit pressed. Should Barr be given a receivership, he would not be the first graduate of the department to receive one. Two former examiners are receivers in bank suits now pending in the supreme court, the record discloses.

### Parker Is Rebuffed

One is Morris E. Stults, receiver for the Studebaker State bank, Bluffton, and the Lynn Grove bank in Wells county, and the other is Kenneth Kunkle, receiver for the Poneto State bank. When the State Savings and Trust bank closed here, Charles R. Parker, clerk in the banking department, is reported to have gone to Governor Leslie to ask if it would be all right for him to be made receiver. The Governor is reported to have said "no," in no uncertain way.

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Co-Receivers Are Chosen for Three City Banks Homer Elliott and Oren S. Hack Will Replace Trio Who Resigned Posts. Receiverships of three defunct Indianapolis banks were being consolidated receivers. today, following appointment of two local attorneys as coOren S. Hack and Homer Elliott were named to handle affairs of the Washington Bank and Trust Company, the State Savings and Trust Company and the City Trust Company. A

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AWAIT BANK REPORTS Receivers Fail to Comply With Order of Judge Cox. Despite an order by Circuit Judge Earl R. Cox for full and final reports on receiverships of two defunct Indianapolis banks by noon today, none was filed. The order was issued ten days ago to Brandt C. Downey, former receiver of the Washington Bank and Trust Company, and Eben Wolcott, former receiver of the State Savings and Trust Company.

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Letter to Wilson From Judge Cox Charges 'Assets Sequestered or Abstracted From General Fund.'

FALSE STATEMENTS ARE ALLEGED

Criminal Judge Frank P. Baker Pledges Co-operation; Officers of Failed Institution to Be Grilled.

BY JAMES A. CARVIN Times Staff Writer

Affairs of the defunct State Savings and Trust Company and its receivership under Eben Wolcott in the last ten years will be investigated by the Marion county grand jury, Herbert E. Wilson, Marion county prosecutor, declared today.

Wilson's announcement followed receipt of a letter from Circuit Judge Earl R. Cox, charging that "assets which should have been in the receivership either have been sequestered or abstracted from the general fund which the receiver took over."

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WILSON OPENS

PROBE OF BANK

Personal Investigation Will Be Made Into Affairs of State Savings.

Following a conference Wednesday at which records of the defunct State Savings and Trust Company were inspected, Prosecutor Herbert E. Wilson announced today that he would conduct a personal probe of charges brought by Circuit Judge Earl R. Cox regarding the bank and its receivership.

Cox said today that additional records would be turned over to Criminal Judge Frank P. Baker Friday. It is expected that Baker will summon the grand jury and request an investigation.

Letters written to Baker and Wilson by Cox charged irregularities in handling of the bank's funds and followed disclosures to Cox by K. I. Hamilton, auditor for the depositors' committee.

Wilson was closeted with Cox and Mrs. Ida Broo, accountant, who audited the records and uncovered information regarding statements given by bank officers to the state banking department.

It was understood that Mrs. Broo discussed with Wilson a series of notes totaling $125,000 which were not listed as liabilities of the bank in statements to examiners.

Information regarding a sum of $40,000 on deposit in the Fletcher American National bank also was disclosed by Mrs. Broo. It is charged that the funds were carried as an asset of the State Savings although, in reality, a liability of a subsidiary concern.

Other charges made by representatives of a depositors' committee relate to refunded commissions and an alleged deal in stock of the Roosevelt building, Illinois and Washington streets.

Special hearing in open court of the charges from the depositors will be conducted Wednesday by Cox. Witnesses will be subpenaed for questioning regarding the commissions and an abandonment of funds by Eben Wolcott, former bank receiver.

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COX TO RENEW STATE SAVINGS BANK INQUIRY

Ex-Officials Subpenaed to Appear Today Before Circuit Judge.

Further investigation of affairs of the defunct State Savings and Trust Company and its receivership was to be held this afternoon in a special hearing before Circuit Judge Earl R. Cox. The hearing was delayed this forenoon due to another bank hearing. Former officials of the bank were subpenaed Tuesday by Homer Elliott, present receiver, on order of Cox, for questioning regarding real estate transactions uncovered by an audit conducted by a depositors' committee. Scott Brewer, former president of the bank and now of Louisville, appeared in court today. E. Kirk McKinney, works board president, and George E. Brewer, father of the bank president, also were present.

Wolcott Not Subpenaed

Eben Wolcott, former bank receiver, also was expected to appear. He was not included on the list of witnesses supenaed by Elliott. Today's hearing was arranged by Cox after K. I. Hamilton, accountant, who audited the bank records, and R. D. Evans, representing the depositors, appeared in court more than a week ago to disclose information, which they alleged showed questionable real estate transactions. Testimony at the hearing will be sent to Prosecutor Herbert E. Wilson, who is conducting a personal investigation of records turned over to him by Cox last week.

Wilson in Washington

It is expected that Oscar Hagemier, grand jury deputy prosecutor, was to be in the courtroom during the questioning. Wilson, who now is in Washington, had several conferences last week with Cox and Mrs. Ida Broo, court auditor of the bank's records. Transactions involved in transfer of stock in the Roosevelt building,

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COURTS WILL ACT IN CLOSED BANK INQUIRY Officials of Two Defunct Institutions Will Be Called to Account. WILSON PROBES CASES Prosecutor Says Evidence Will Be Laid Before Grand Jury. After more than two years' delay, criminal as well as civil law will demand an accounting from officials of defunct local banks, it appeared today. At least two transactions of the State Savings and Trust Company will be given to the grand jury, Prosecutor Herbert E. Wilson announced. Charges of "criminal and dishonest acts" against former officials also will be investigated by the grand jury at the direction of Wilson, provided "newspaper accounts are true," Wilson said. "My only knowledge of the acts is through reading the newspapers," Wilson said. "As soon as I have had opportunity today to examine the records, I will take whatever action is warranted. If newspaper accounts are true, the grand jury will investigate." Cox Assures Action Circuit Judge Earl R. Cox, who precipitated the sensational disclosures of recent weeks, announced that civil action would be taken to recover from bonding companies At the time of the closing of the Washington bank. officials and employes were covered by a $100,000 bond, evidence in circuit court disclosed Friday. Suit will be started immediately by Samuel Miller, attorney for Oren S. Hack, present receiver. Charges that depositors in the bank lost more than $1,750,000 through acts of the officers were brought to light Friday, when Hack petitioned for instructions regarding suit on the bond. No Action Taken It was revealed that two years ago, an audit showed the loss, but that no action was taken by Brandt C. Downey, -former receiver. Downey testified that he left action to Earl R. Conder, his attorney, but that Conder preferred to obtain a deed to the home of J. Edward Morris, former bank president, in restitution. Temporarily crowded from the spotlight by developments in the other two banks, affairs of the remaining institutions in the group of four major closed banks also will be considered this week. Charges of depositors that Curtis Rottger, former receiver of the City Trust Company, "dissipated" more than $125,000 of trust funds will be aired in circuit court. Meyer-Kiser Case Up Hearing also will be conducted on a petition of former liquidating agents of the Meyer-Kiser bank to obtain records and other documents of bank departments. J. J. Kiser and Melville S. Cohn, two of the former bank officials who were in charge of the liquidation until recently, have petitioned for the records to act as registration and fiscal agents for securities handled by the bank. The attempted action is opposed by Thomas E. Garvin, receiver, and William J. Fahey, attorney. Garvin's oppostion to the move centers on the contention that handling of registration and other service by a private business will remove profitable business from the receivership. Belmont Depositors Active Fahey's petition in the interests of Mrs. Margaret Caito, 221 East Henry street, holder of approximately $36,000 of bonds issued by the bank, represents an attempt to secure information regarding the securities. Emphatically voicing a determination "not to sit by while we lose our money," 191 depositors, with $68,000 in the closed Belmont State bank, laid plans Saturday for an aggressive organization and protection of their claims. At a meeting held in the Belmont theater, a depositors' committee was elected and empowered to act by employing an attorney, and an accountant if necessary. Members of the committee are A. E. Moore, Harry Markun, Dr. William L. Jennings, C. A. Klingensmith and Walter Gingery, principal of Washington high school. Numerous speeches by depositors exhibted varying attitudes regarding closing of the bank and appointment of Frank B. Ross as reciver. Practically every speaker referred to his understanding that the Belmont bank was "affiliated" with the (Turn to Page Two)

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JURY PROBE OF

STATE SAVINGS

BANK STARTED

Acts of Closed Organization Chiefs Are Put Under Scrutiny.

Grand jury investigation of affairs of the defunct State Savings and Trust Company began today with two acts by former officers under scrutiny.

Two witnesses, Homer Elliott, receiver of the bank, and Miss Catherine Holland, his employe, were subpenaed for the grand jury hearing.

A $40,000 deposit at the Fletcher American National bank carried as an asset of the State Savings and Trust, and called statements to the state banking department will be investigated by the grand jury, Prosecutor Herbert E Wilson said after a conference with Oscar Hagemier, grand jury deputy.

Wilson said that, apparently, the $40,000 was carried as a bank as-

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MEYER-KISER BANK CASE IS BEFORE JURY Affidavits Turned Over to Talesmen by Prosecutor Herbert Wilson. SIGNED BY RECEIVER Accusations Loosely Drawn, Is Official's Charge to Probers. Talesmen of the Marion county grand jury today were considering the Meyer-Kiser bank case, referred to them yesterday by Herbert E. Wilson, Marion county prosecutor. In laying the bank case before the grand jury, Mr. Wilson stated that charges made against four officials of the defunct bank were of "such great importane" as to warrant such action. Affidavits were signed Tuesday by Thmoas E. Garvin, receiver for the bank, against Sol Meyer, Ferd S. Meyer, Julian J. Kiser and Melville S. Cohn, the four former officials of the bank, charging them with embezzlement of bank funds, conspiracy to accept deposits in an insolvent institution, and accepting deposits in an insolvent institution. Turned Over to Wilson Previous to the signing of the affidavits, Alvah J. Rucker, a special investigator named by Judge Earl R. Cox in circuit court. to investigate the circumstances surrounding defunct Indianapolis banks, read a forty-page typewritten report outlining the bank's alleged condition. Judge Cox instructed that the affidavits be delivered to Mr. Garvin and then sent to Judge Frank P. Baker of criminal court for approval. Judge Baker pointed out that all affidavits must be signed by the prosecutor and the documents were finally turned over to Mr. Wilson. Mr. Wilson charged that the affidavits as drawn by Mr. Rucker were subject to a motion to quash. He charged that they were not properly drawn. Mattice Is Named Floyd J. Mattice, chief deputy prosecutor was named yesterday by Mr. Wilson as special grand jury deputy prosecutor to conduct the investigation. Mr. Rucker and his aids have completed a five months' investigation of the closed bank. A former grand jury heard events incident to the closing of the Washington Bank and Trust Company and the State Savings and Trust Company, but refused to return true bills against any person or persons connected with either bank. The grand jury report also set out that the evidence obtained by Judge Cox and his court attaches was not sufficient to hold any particular individual criminally liable for affairs of the bank.

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MEYER-KISER BANK CASE IS BEFORE JURY Affidavits Turned Over to Talesmen by Prosecutor Herbert Wilson. Talesmen of the Marion county grand jury today were considering the Meyer-Kiser bank case, referred to them yesterday by Herbert E. Wilson, Marion county prosecutor. In laying the bank case before the grand jury, Mr. Wilson stated that charges made against four officials of the defunct bank were of "such great importane" as to warrant such action. Affidavits were signed Tuesday by Thmoas E. Garvin, receiver for the bank, against Sol Meyer, Ferd S. Meyer, Julian J. Kiser and Melville S. Cohn, the four former officials of the bank, charging them with embezzlement of bank funds, conspiracy to accept deposits in an insolvent institution, and accepting deposits in an insolvent institution. Turned Over to Wilson Previous to the signing of the affidavits, Alvah J. Rucker, a special investigator named by Judge Earl R. Cox in circuit court. to investigate the circumstances surrounding defunct Indianapolis banks, read a forty-page typewritten report outlining the bank's alleged condition. Judge Cox instructed that the affidavits be delivered to Mr. Garvin and then sent to Judge Frank P. Baker of criminal court for approval. Judge Baker pointed out that all affidavits must be signed by the prosecutor and the documents were finally turned over to Mr. Wilson. Mr. Wilson charged that the affidavits as drawn by Mr. Rucker were subject to a motion to quash. He charged that they were not properly drawn. Mattice Is Named Floyd J. Mattice, chief deputy prosecutor was named yesterday by Mr. Wilson as special grand jury deputy prosecutor to conduct the investigation. Mr. Rucker and his aids have completed a five months' investigation of the closed bank. A former grand jury heard events incident to the closing of the Washington Bank and Trust Company and the State Savings and Trust Company, but refused to return true bills against any person or persons connected with either bank. The grand jury report also set out that the evidence obtained by Judge Cox and his court attaches was not sufficient to hold any particular individual criminally liable for affairs of the bank.