Article Text
FEDERAL GRAND JURY NOW PROBING BIG BANK FAILURE Examiner McIntosh on Stand All Afternoon Telling of Institution's Affairs. NAMED IS RECEIVER Judge Anderson Appoints Stafford Maxon to Take Charge of National Manufacturing Co. The federal grand jury began the investigation of the Indiana National Bank failure at Elkhart yesterday afternoon. District Attorney Joseph B. Kealing is presenting the case to the grand jury and is being assisted by Jesse J. M. Lafollette, assistant district attorney. About twenty-five witnesses in all will be brought before the grand jury to testify. There were five men summoned yesterday, but the whole afternoon was spent in hearing the testimony of State Bank Examiner Jas. L. McIntosh, who made the examination of the bank's affairs. It is expected that the investigation will be concluded by Thursday or Friday of this week. Charles H. Bosworth, receiver of the defunct bank, the Metropolitan Trust and Savings Bank of the city of Chicago and Charles J. Deiber filed a civil suit against the National Manufacturing Company of Elkhart, of which Walter Brown was secretary, asking that a receiver be appointed for the company and that it be declared a bankrupt. Judge Anderson appointed Strafford Maxon as receiver and ordered him to file a $25,000 bond. The plaintiffs to the suit are creditors of the defendant company and claim that the company owes debts to the amount of over $100,000. The plaintiffs present claims against the defendant company amounting to about $53,000. Receiver Bosworth holds notes on the company amounting to $48,762.38; the Metropolitan Trust and Savings Bank holds a claim for $2,000 and Deiber claims that the company owes him $2,500. The Elkhart Circuit Court appointed Louis Dennert receiver of the National Manufacturing Company some time ago, but the creditors thought that as bankruptcy proceedings had been instituted in the Federal Court it might embarrass Dennert in operating the plant and Judge Anderson appointed Maxon.