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NEW YORK BANKER, STOCKHOLDERS IN CLOSE FRIEND OF DALE BANK SUED Creditors of Defunct InstituSMITH, ENDS LIFE tion Name 74 Under Statutory Liability Law
James i. Riordan Shoots Self to Death Because of Heavy Market Losses, Belief
NEW YORK, Nov. bullet through his head, James Blordan, president of the Country frust company and close friend of former Governor Alfred E. Smith. was found dead yesterday in his home in East Eleventh street where he lived with his sister. Police said it was suicide. News of the death was withheld until today to avoid possible run on the bank and to permit check of its books. The reason for the act, police headquarters said, was heavy losses in the stock market Other friends and the board of directors of the bank ascribed the act to ill health. BANK CONDITION SOUND The bank is in "wholly sound condition' the board of directors said in statement at conclusion of meeting today which Joseph Broderick state superintendent of banks. attended. Mr. Broder'ck was quoted as having said that he had found the company in "wholly liquid and satisfactory condition First intimation of the suicide, Dr. Charles A. Norris, city medical examiner. sa'd. came yesterday afternoon when an official of the bank discovered that the cashier's pistol was missing Former Governor Smith was notified and went immediately to the bank and then informed Mrs. Margaret Murray. Riordan's sister. The discovery of Mr. Riordan's body, slumped down in an easy chair in front of desk in room he used both as private office and bedroom, followed. SHOCK TO DEMO LEADERS Mr. Riordan's death came as distinct shock to state democratic leaders, who were in session here today Governor Franklin D. Poosevelt said: "That's terrible" when told of the death and then added that it was such deep personal loss that he would like to be **cused from commenting further. Former Governor Smith could not be for a statement. Although he had never held a political off ce, Mr. Riordan had worked with Governor Smith, friend or childhood days on the East Side, in all his various campaigns, acting as treasurer of the citizens' committee in two of them. He was present at Houston last summer when Mr. Smith was nominated for president by the democratic party and h's old friend's failure to win the election last fall affected him deeply. "GOLF CABINET" MEMBER He was member of the governor's famed "golf cabinet" which also included John J. Raskob and William F. Kenny. During the campaign last fall he was almost constantly at Mr. Smiths side He had been banker for many years, recently he and Mr. Smith joined forces when the defeated presidential candidate was made director of the Country Trust. He also was sa'd to have joined with Mr. Sm th and Mr Raskob in several financial enterprises. Mr Riordan was 47 years old, native New Yorker. He was widower with four children who survive him
Seventy-four stockholders of the defunct Farmers and Merchants State bank of Dale were named defendants in suit for $25,000 filed in Spencer county circuit court today by Frank Schroer in behalf of all creditors of the bank. No officers or directors of the bank are named in the suit which seeks application of stockholder's statutory liability law. The complaint charges that the bank is indebted to creditors to the extent of $140,000 and that assets do not exceed $100,000.
Under the stockholder's liability statute. stockholders of banks are liable for twice the amount of the stock which they hold. The suit sets out that there are 250 shares of stock and that based on $100 per share, stockholders should be made to increase the assets $25 000. Even if the suit is successful, creditors of the bank will not be paid in full. Schroer sets forth in the complaint filed in behalf of the ceditors that each_of the defendants have failed to pay his liability and asks that each be made to pay the full amount to the receiver or the county clerk for The Farmers and Merchants bank closed Its doors nearly year ago and suit brought by the state board of banking succeeded in having Talbert W. Stone appointed receiver Roy Galnes, cashier of the bank, was charged with as result of the failure, and was returned from California last spring to stand trial on the charges. His trial date has not yet been set.
