City Trust Company (Indianapolis) was closed on Oct. 23, 1930 by the state banking department / voluntarily closed that day, and did not reopen. A receiver was subsequently appointed and the institution was liquidated. Newspaper accounts attribute the closing to action by the state banking department and later show insolvency/asset overvaluation and receivership proceedings. There is mention of heavy withdrawals around the same time at other local banks, but no clear article states a depositor run specifically caused City Trust to suspend — the closure is reported as by the banking department/voluntary and followed by receivership and liquidation.
Events (2)
1.October 23, 1930Suspension
Cause
Government Action
Cause Details
Closed/taken into custody by the state banking department (state banking commissioner Luther F. Symons took charge); reported as closed voluntarily or by state action Oct. 23, 1930.
Newspaper Excerpt
The City Trust company ... closed by the state banking department here this afternoon.
Source
newspapers
2.November 17, 1930Receivership
Newspaper Excerpt
C. H. ROTTGER RECEIVER FOR CITY TRUST CO. ... Liquidation of assets of the City Trust Company, closed voluntarily Oct. 23, is expected to begin immediately, with the appointment of Curtis H. Rottger, ... as receiver. Rottger was appointed Monday by Circuit Judge Harry O. Chamberlin ... (article pub. 1930-11-18).
Source
newspapers
Newspaper Articles (19)
1.October 23, 1930The TimesHammond, 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.
2.October 23, 1930The TimesHammond, IN
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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.
3.October 28, 1930Muncie Evening PressMuncie, IN
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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.
4.October 30, 1930Franklin DemocratFranklin, IN
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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.
5.November 7, 1930The Indianapolis TimesIndianapolis, IN
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BATTLE IS STARTED OVER TWO BANK RECEIVERSHIPS; COURT CHANGE IS FOUGHT Ogden Denies He Approved Attempt by Commissioner Symons to Shift Suits Away From Judge Chamberlin. SUDDEN, MYSTERIOUS MOVE PROBED State Official Declares He Has Right to Dismiss Washington and City Trust Cases, Refile in Other Tribunals. BY DANIEL M. KIDNEY Receivership suits against two Indianapolis banks were at a deadlock today with refusal of Circuit Judge Harry O. Chamberlin to approve their dismissal and transfer to probate and superior courts as sought, without explanation by Luther F. Symons, state banking commissioner. Thousands of depositors and stockholders in the Washington Bank and Trust Company and the City Trust Company were left to wonder why the transfer was sought, as Attorney-General James M. Ogden and Judge Chamberlin stated their disapproval of the switch. "Any statement to the contrary, I did not approve the dismissal of these receivership suits," the attorney-general told The Times today.
6.November 10, 1930The Indianapolis TimesIndianapolis, IN
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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.
7.November 18, 1930The Indianapolis StarIndianapolis, IN
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BANK RECEIVER. to the financial disadvantage of the Mr. Rottger will take charge of affairs the bank today ney for the receiver probably named within few days. provided bond of Judge McMaster found the Postal subsidiary insolvent after hearing Mr. three examined the bank after it was closed Oct. 23. All told the court the institution was insolvent when closed. Dick Miller, president of the City Trust Company, in an informal statement to the court, declared that officers and directors the that receiver was necessary to give depositors and creditors the highest dividends possible. He the hope that the bank might be organized after receiver is named. Asaccording to Wallace Weatherhold, special deputy bank examiner, were $415,913 assets the same figure bank closed voluntarily by directors. The assets, however, actually were $62,000 than reported by the bank in that certain stocks and bonds were carried 50 to 100 per cent above their actual value, said. Deposits were $340,000. The examiner cited an instance stock issue being valued $15,000 by the bank when the securities were worthless. This was the stock of the City Shareholders Corporation, holding company of the City Trust Company, he Earl Conder, member the law firm of Pickens, Cox, Conder & Bain, named attorney for Brandt Downey, receiver for the Washington Bank and Trust Company. Mr. Downey, financial secretary of the Methodist hospital, was ceiver the Circuit court Saturday Mr. Conder will represent the all legal matters relative to the receivership.
JURY PROBES BANK CLOSINGS Further investigation of affairs of the City Trust Company and the Washington Bank and Trust Company will be made the Marion grand jury today. The probe of surrounding the closing of the institutions several days ago was opened by the grand jury yesterday. Four officers and employes of the Washington bank have subpenaed to appear before the jurors today, understood. Good, deputy state bank examiner, charge of the audit the City Trust Company, was in the jury more yesterday and William Rider, deputy charge examination of the City Trust Company, also was before the jury for some time. They were the only witnesses called yesterday. Judson L. Stark, prosecutor. declined discuss investigation other than declare that several persons had laid before him charges of irregularities in conduct of the stitutions.
8.November 18, 1930The Indianapolis TimesIndianapolis, IN
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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,
9.November 21, 1930The Indianapolis TimesIndianapolis, IN
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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.
10.January 14, 1931The Indianapolis TimesIndianapolis, IN
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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.
11.February 26, 1933The Indianapolis StarIndianapolis, IN
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RESIGNS
Action Taken After Judge Cox Orders 4 Employes of Officer Dismissed.
Resignation of Curtis H. Rottger, receiver for the City Trust Company, filed in Circuit court yesterday. The came after Judge Earl R. Cox, after examination of payroll vouchers, had issued order discharging four of the ceiver's employes. This examination disclosed that all of the persons ordered discharged were former officers and employes of the defunct bank. Judge Cox announced that he would not formally accept Mr. Rottpending detailed audit of the receivership. Second Receiver to Resign.
Mr. Rottger was the second ceiver of major bank to resign. Eben H. Wolcott, receiver for State Savings and Trust Company, submitted his resignation to Judge Cox Feb. Both resignations came while the judge in the midst of an investigation of the receiverships of Marion banks pending in his county court. In addition the City Trust Company and the State Savings and Trust Company they are the Washington Bank Trust Company and the Beech Grove State bank. Brandt C. Downey receiver for the Washington bank and Charles W. Jewett receiver for the Beech Grove bank. In submitting his resignation, Mr. Rottger, served receiver without compensation, declared in letter addressed to Judge Cox that operation of the could not continue if the four discharged, ordered Judge Cox.
Paid $210 Week.
The men discharged by the court were Dwight Murphy, former president of the City Trust Company: Halford Justin Forsythe Walter H. Hurd. They being paid total of $210 for their services and had been drawing high $855 month until few months ago, according to court Murphy ceiving $75 week. He had been getting $128 week until about year when the amount duced $100 His salary was cut $75 week reductions were made the pay the other three On the basis, the aries totaled year, Judge Cox pointed out. The judge declared that the could erated until liquidated by the ceiver and stenographer.
Says Liquidation Slow. strange feature about the statement of the receiver that could not operate without these ployes that the not an operating receivership at all, but liquidating receivership and portion its assets should
CONTINUED ON PAGE
12.June 6, 1933The Indianapolis StarIndianapolis, IN
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Elliott Is Not Receiver for Washington Bank
Homer Elliott, president the Indianapolis Bar Association, was not appointed receiver for the defunct Washington Bank and Trust Company reported in The Star yesterday morning. Oren Hack sole for the Mr Elliott said that he had many and personal visits from seeking formation regarding the bank's fairs he has referred them to Mr. Hack. have nothing whatever to do with Elliott said. this order that the of the Washington Bank and Trust Company and the City Trust which Hack also receiver, may not be confused.
13.June 9, 1933The Indianapolis StarIndianapolis, IN
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INTERVENING
Meyer-Kiser Receiver Is Granted Right in Pilgrim Properties Suit.
Permission to intervene in suit filed by Sidney S. Horn, attorney. asking that receiver be filed for Pilgrim Properties. Inc., subsidiary of the Meyer-Kiser bank, was given Thomas E. Garvin, receiver for the bank. by Judge Earl R. Cox in Circuit court yesterday. Closing evidence in the receivership will be heard by the judge Monday. The action opened the way for the bank receiver to collect approxi- mately $18,000 alleged to have been owed the bank by affiliate. Demands $25,000 Judgment. The bank judgment of $25,000 against the Pilgrim company, owner of three Indianapolis apartment houses. The original receivership action was brought after the subsidiary alleged to have failed to pay dividends Judge Cox named Charles Coen at $25 day to conduct an audit of books of the defunct City Trust Company on petition of the depositors' committee of the bank William R. Ringer, member deposcommittee, was named attorney
14.September 12, 1933The Indianapolis NewsIndianapolis, IN
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NEW YORK
Refuses to Recognize Order Sent to Indianapolis Bank Receiver.
VACATION REPORTS MADE
Income and Expenditures for June, July and August Are Set Out.
Defiance Judge Earl R. Cox, of circuit court, purported York order in connection with default judgment against eastern insurance companies and the filing of current receivership Tuesday the Indianapolis Cox, to New York order to Oren Hack, receiver of the Bank and Trust enjoining from actions certain companies, entered default judgment for Hack, receiver, against the Indemnity Philadelphia, Lloyd's Insurance Company, Maryland
Judgment Qualified.
The judgment entered on ure of the defendant companies to file acceptable to Judge tempting appear for the eastern however, that he would set aside the judgment the brought by Hack on bonds depositors Bank and Trust Company from wasting money by officers and employes the bank.
No Jurisdiction, He Says.
Judge Cox held that the New York court, in which the two companies are being liquidated, had no jurisdicasked definite instructions from the insurance commissioner New York as to who should defend the Marion county tion before he would aside the judgment and permit continued in Current reports July August were Thomas Garvin, receiver the Hack ceiver the City Trust Company. Expenditures of $11,038.65.
Garvin reported that in the threemonth period the income to the receivership totaled and expenditures Expenses includes various appraisals audits well the regular expenses of the receivership. Allowances of total of Walter and Clyde were out in the list by Garvin August he reported.
Cash Increase Reported.
Hack reported an increase in cash in banks and on hand for the City Trust receivership from Income taled and Expenses included lowance to Hack receiver and to Joseph Collier in attorGarvin's report, which included general in his appointment that than half assets the trust outside Marcounty, in the form real in large loans realty companies Lake county. bank also owns large amounts of stock these realty companies, according to report.
Property Values Shrink. properties in Indiana alarming values compared the made by the officers the bank, caused made them, time these loans The shrinkage amounted to to 75 per Garvin reported. report made comparison expenses of receivership under Garvin for the four four under former officers the bank to $47,925.83.
15.February 21, 1934The Richmond ItemRichmond, IN
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FOUR OFFICERS OF INDIANAPOLIS BANK INDICTED
Affidavits Charging Criminal Actions Signed by Bank Receiver
INDIANAPOLIS, Feb. 20. (P) Affidavits charging four officials of the defunct Meyer-Kiser bank with criminal actions were presented today to Prosecuting Attorney Herbert E. Wilson by Alvah J. Rucker, special investigator for the circuit court. The affidavits were signed by Thomas Garvin, receiver for the closed bank. The officials named were the president, Sol Meyer, and three vice presidents, Julian J. Kiser, Melvin Cohen and Fred S. Meyer. The affidavits were first placed before Judge P. Baker of the criminal court. Wilson, notified that the affivavits had been prepared, said: "It has not been the spirit of our lawmakers to have the prosecutor file affidavits when the grand jury is in session. The matter is of such grave importance I think it should go before the grand jury. Rucker reported to Circuit Judge Earl R. Cox earlier in the day that he had found ample evidence in the records the bank for prosecution of the officials on felony charges. Rucker at the direction of Judge Cox has been making an investigation of the affairs of several closed banks here including the City Trust, the Washington Bank and Trust and the State Savings and Trust. In his report to Judge Cox Rucker advanced the theory that the active officers of the Meyer-Kiser bank knew of its insolvency before the institution was closed and despite this knowledge continued to accept deposits.
16.April 21, 1934The Indianapolis TimesIndianapolis, IN
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NOTICE To Creditors of City Trust Company of Indianapolis to File Their Claims With Receiver. Notice is hereby given to all the creditors of City Trust Company. of Indianapolis. Indiana, that on the 19th day of April. 1934, the Circuit Court of Marion County. Indiana, entered an order in the cause of State of Indiana, on the relation of Luther F. Symons. Bank Commissioner of the State of Indiana vs. City Trust Company. and being Cause No. 45292 of the proceedings of said court directing all creditors of the City Trust Company. of Indianapolis, Indiana. to file their several verified claims. with all asserted contentions of priority of payment thereof. with Oren S. Hack. as Receiver of City Trust Company. 302 New City Trust Building. Indianapolis, Indiana, on or before May 31st. 1934, except the general depositors. who assert no priority of payment over other creditors and who assert no claim in excess of the amount shown due them by the books of said City Trust Company: and said order further provides that all claimants desiring a preference over general or common creditors. failing or refusing to file their claims with all asserted priority of payment. shall be debarred from participation in any dividend declared in said matter. Dated at Indianapolis. Indiana. this 19th day of April. 1934. OREN S. HACK As Receiver of City Trust Company. JOSEPH COLLIER. Attv.
17.June 26, 1934The Indianapolis TimesIndianapolis, IN
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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.
18.June 27, 1934The Indianapolis StarIndianapolis, IN
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Lash Officials of City Trust
CONCLUDED FROM PAGE ONE. when it closed Mr. Rucker said and he quoted from the decision of the Appellate Court as follows: eighteen months before the trust company was closed its cash reserve had been averaging from to 10 per cent of the aggregate amount of demand and time deposits instead of the 151 per cent required by law This was matter general discussion at directors meetings and among the officers of the trust company During this entire time its being gradually The officers of the trust company were cognizant of these on April 18, 1930 he continued "the minutes the that there no cash value to the sets on Oct. and for at least several months theretofore Frantic efforts were made by the officers to borrow from $100,000 to $150,000 on them. but no No banker thought enough of them to advance that although the assets were listed books as being worth more than $2,000,000.
Dick Miller Bank President Dick Miller was president of the bank when it closed its doors, and other controlling officers were Dwight A. Murphy, vice president and secretary J. Dwight Peterson. vice president C. Milton Kelly, vice president and treasurer and Earl H. Richardson and Harry O. Garman, Mr Rucker reviewed the alleged refusal of Prosecutor Wilson to present the of by Meyer Kiser officials to the grand jury, and again suggested that the Criminal Court judge might appoint special nothing he it be demonstrated that while the bandit punished inside bandit goes free then there would be remedy The statute of not begin to run any bank case fore On when judge and prosecuting sworn the evidence may be presented as well as now.
Alleges Dividends Illegal. The Hack suit asks $500,000 from the officers and directors of the City Trust Company alleging that in 1928. 1929 and 1930 the bank declared dividends cash and stock illegally. The defendants are Mr. Miller, Mr Garman, Mr. Kelly Mr. Mr. Murphy, Mr Richardson and James M. Ogden, John T. A. B. Ayres and William F. Fox.
19.June 30, 1934The Indianapolis TimesIndianapolis, IN
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# CITY TRUST COMPANY
# RECEIVER'S SON SHOT
John Hack Wounded by Bullet
Fired at Sick Rabbit.
John Hack, 23, son of Mr. and Mrs. Oren S. Hack, living near Boggstown, was seriously wounded yesterday when a bullet fired at a sick pet rabbit ricocheted from a rock and struck Mr. Hack, penetrating his upper right lung.
He was taken to the Major hospital in Shelbyville, and later was brought to Methodist hospital here. X-ray pictures showed the bullet had lodged in his back.
Oren S. Hack, father of the young man, is receiver for the City Trust Company.
