City Trust Company (Indianapolis, IN)

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IMPORTANT BANK CLOSED

INDIANAPOLIS, Ind., Oct. The City Trust company, with deposits of one of the most important financial institutions in Indianapolis, closed by the state banking department here this afternoon.

Luther F. Symons, state banking took personal of the Neither Symons Thomas Barr, deputy state bank commissioner, would reason for the closof the institution. make Barr mons may issue statement night." was believed that preliminary check of the bank's would by before he the Dick Miller, former president of the Indianapolis Chamber Commerce, president of the City Trust company. He built the bank from small institution important unit of this city's financial structure.

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IMPORTANT BANK CLOSED

INDIANAPOLIS, Ind., Oct. The City Trust company, with deposits of one of the important financial institutions in closed by the Indianapolis, banking department here this afternoon. Luther F. Symons, state banking commissioner, took charge of the bank's Neither Symons nor Thomas Barr, deputy state bank commissioner, would reason for the closing of the institution. "We no statement to make at this Barr said. Systatement night."

It was believed preliminary check the bank's would afternoon by Symons before issues the statement. Dick Miller, president of the Comthe City Trust company. He built up the bank from institution an important unit of this city's financial structure.

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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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BANK RECEIVER

Guardian Files Suit Against City Trust Company.

Appointment receiver for the Trust Company filed circuit court today by Hanford, Hinton Menges. ficial of the company are defendthe Hanford avers Menges $418 checking account the bank when its were closed the state banking department week Hanford charges the declined cash check for amount of Menges' account after the closing. Judge Harry Chamberlin did not date hearing.

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The Postal Station State bank Indianapolis, of which C. Brock, formerly of Trafalgar and Franklin, cashier, closed its doors Thursday evening to avoid, it said, heavy withdrawals that might follow the closing of the City Trust Company noon that day. Dick Miller is President of the City Trust Company and also of the Postal Station State bank. "Frozen Assets" is said to be the cause of the suspensions. Mr. Brock, it is said, thinks the Postal Bank of which he is cashier can be reorganized again, saying in fairly sound condition and he hopes to see it open again soon for business. The news of these financial verses was received with great prise by many in Johnson county. number of citizens in this county had accounts in the Postal Station bank. Besides Mr. Miller and Mr. Brock, officers of the bank are Barnard, M. Ewing, W. Fox, Sr., and Hurd. The institution capitalized at $25,000 has deposits amounting to approximately $372,000, surplus of $8,000. and undivided profits totaling about The frozen assets consist chiefly in loans on farm mortgages, it explained.

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BANK RECEIVERS ASKED State Files Action Against City Trust, Washington Institution. Suits by the state banking department for apponitment of receivers for the Washington Bank and Trust Company and the City Trust Company, both closed recently, were filed Wednesday in Marion circuit court. Hearing on the City Trust Company petition will be held on next Wednesday and on the Washington Bank and Trust Company petition two days later.

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State Files Action Against City Trust, Washington Institution.

Suits by the state banking department for apponitment of receivers for the Washington Bank and Trust Company and the City Trust Company. both closed recently. were filed Wednesday in Marion circuit court. Hearing on the City Trust Company petition will be held on next Wednesday and on the Washington Bank and Trust Company petition two days later.

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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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COMMITTEE TO WEIGH ASSETS OF CITY TRUST Judge Chamberlin Defers Action on Receiver Pending Report. Naming of a committee to fix the appraised value of assets of the City Trust Company, closed voluntarily Oct. 23, confronted directors and interested parties today after Circuit Judge Harry O. Chamberlin deferred acting on a petition for appointment of a receiver, The committee, to be named following conferences probably this afternoon between state officials, heads of the bank, and attorneys for depositors, will lay their findings before Chamberlin Nov. 20. Hearing evidence on the receivership petition Wednesday, ChamberJin indicated a liquidation of assets may fall to either a receiver of a liquidating agent. Witnesses said the institution's creditors, stockholders and depositors may not sustain heavy losses if ample time is allowed for the liquidation.

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SYMONS STAYS IN STATE POST

Reappointed by Leslie as Bank Commissioner.

Luther F. Symons, Lewisville, Ind., state banking commissioner, whose term expired Oct. 1, was reappointed today by Governor Harry G. Leslie for another four years from that date.

Symons immediately declared he will continue Thomas D. Barr one time banking commissioner, in the office of assistant.

Barr stepped down from commissioner to assistant and Symons was given the appointment under former Governor Ed Jackson. It had been reported recently that Barr and Symons were to exchange places again.

Symons, however, has been brought close to Leslie by the Indianapolis bank receivership fight recently. He refused to drop the fight with Attorney-General James M. Ogden until they had conferred with the Governor.

At that conference Leslie denied he had telephoned Symons regarding the City Trust Company receivership and asserted that he was leaving the banking department affairs in the hands of Symons in whose judgment and integrity he had "implicit faith."

The post pays $5,000 a year.

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C. H. ROTTGER RECEIVER FOR CITY TRUST CO. Bell Telephone Chief to Handle Bank Position Without Pay. Liquidation of assets of the City Trust Cotipany, closed voluntarily Oct. 23, is expected to begin immediately, with the appointment of Curtis H. Rottger, chairman of the board of the Indiana Bell Telephone Company, as receiver. Rottger was appointed Monday by Circuit Judge Harry O. Chamberlin under the express agreement that he is to receive no pay for his services. Chamberlin made the appointment unexpectedly, diverging from a plan to continue the receiversnip hearing Nov. 20, when appraisers were to submit a statement of the bank's assets. Chamberlin said the Thursday hearing was abandoned and the receiver appointed to facilitate immediate liquidation of certain securities held by a Chicago firm. Incident with the appointment Monday, Superior Judge William S. McMaster heard evidence in a petition for appointment of a receiver for the Postal Station State bank,

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ORDERS TAXES PAID $4,813 Must Go to County From City Trust. First step in the receivership of the City Trust company was entered today in circuit court records where Judge Harry O. Chamberlin directed Curtis H. Rottger, receiver, to pay the Marion county treasurer $4,813.98 taxes collected by the bank as treasurer's agent. City Trust Company, according to Rottger's petition, as a designated agent for County Treasurer Clyde R. Robinson, turned none of the fall tax revenue over to Robinson before it's doors were closed v)Juntarily Oct. 23. A similiar petition, seeking to pay from receivership funds other county tax collections totalling $1,405, was approved by Chamberlin.

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SUES BANK OFFICERS

FOR COLLECTED FUNDS

Sinker-Davis Co. Head Charges City Trust Chiefs Withheld Money.

Charge that officers of the defunct City Trust Company withheld funds collected on a promissory note for a client is made in a suit today in superior court one by Henry W. Bliss, secretary-treasurer of the Sinker-Davis Company.

In the suit, Bliss avers he placed eleven promissory notes totaling $678.16 with the trust company for collection in November, 1929.

Bank officers collected the notes, but failed to keep the money sepa- rate from the bank's funds, the suit charges.

Curtis H. Roettger, receiver for the bank, said he had handled nothing in connection with the notes described, and had heard of no such transaction.

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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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COX ASKS REPORTS ON DEFUNCT BANKS Probability of Dividends Is Sought. Letters asking receivers of four Indianapolis banks in receivership to inform the court as to the probability of early dividends for depositors were sent yesterday by Circuit Judge Earl R. Cox. Judge Cox asserted that bank depositors are entitled to know whether they are going to receive any dividends soon. Banks in receivership in circuit court are the Washington Bank and Trust Company, City Trust Company, State Savings and Trust Company and the Meyer-Kiser bank.

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CITY TRUST'S DEPOSITS WASTED,

CHARGES BANK PROBER IN REPORT

WHEN THE HELMSMAN OF SHIP OF STATE GOES TO SEE

When the U. S. S. Houston, above, heads out from Annapolis, President Roosevelt will embark on a cruise that will carry him more than 7,000 miles before be-

Suit Asking $500,000 From Directors Filed Within Hour of Time Alvah J. Rucker's Findings Are Presented Court.

PROSECUTOR WILSON IS UNDER FIRE

Officers of Closed Institution Accepted Funds While Knowing Firm Was Insolvent, Investigator Says.

Conduct of affairs of the defunct City Trust Company was criticised severely in a report filed today with Circuit Judge Earl R. Cox by Alvah J. Rucker, special investigator for the court in bank matters.

Within an hour of the time Mr. Rucker's report was filed, ten directors of the bank were sued for $500,000 by Oren S. Hack, receiver, on the ground that illegally they had declared dividends out of the bank's capital and reserve.

Just before Mr. Hack's suit was filed, Judge Cox had assured Mr. Rucker, whose report also contained forthright criticism of Prosecutor Herbert Wilson's action in bank matters, that it would be given to Criminal Judge Frank P. Baker, to Prosecutor Wilson and to the new grand jury.

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CITY BANK RECEIVER PAYS OUT $80,000 Depositors to Receive Payment on Monday. Approximately $80,000 is to be distributed today to the more than 4000 depositors of the defunct City Trust Co., Oren S. Hack, receiver, declared. This payment represents a 5 per cent dividend and will go to all depositors, both common and preferred. No additional dividend will be given to preferred creditors at this time. This is the second dividend distributed by Mr. Hack. Last November a 5 per cent dividend totaling approximately $80,000 was paid with an additional 3 per cent totaling about $17,000 being given to preferred creditors. The checks are to be placed in the mails this afternoon, Mr. Hack announced.