5802. Belmont State Bank (Indianapolis, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 5, 1933
Location
Indianapolis, Indiana (39.768, -86.158)

Metadata

Model
gpt-5-mini
Short Digest
3ceefedd

Response Measures

None

Description

The Belmont State Bank was closed by the Indiana state banking department in early May 1933 and subsequently placed in receivership. Articles report insolvency, examiner's findings of fictitious loans/pledged securities and affiliation with Fletcher American; receivers were appointed May 12, 1933 and the bank remained a defunct/closed institution with receivers pursuing suits and liquidations through 1933–1934. No article explicitly describes a depositor run on the Belmont bank prior to suspension.

Events (2)
1. May 5, 1933 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closed by the state banking department after examiner's report showing insolvency, fictitious automobile-sale contracts discounted, pledged securities and heavy liabilities tied to Fletcher American affiliations.
Newspaper Excerpt
the banks were closed on orders of the commissioner and now are in charge of the state banking department.
Source
newspapers
2. May 12, 1933 Receivership
Newspaper Excerpt
Receivers for the Belmont State bank ... were appointed today by Judge John Kern. Frank B. Ross ... was named the Belmont receiver with bond of $15,000.
Source
newspapers

Newspaper Articles (16)
1. March 15, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, March 15, 1933

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EIGHT MILLIONS PUT IN BANKS Deposits Are Heaviest in City's History, Report Officials. (Continued from Page One) cepting deposits which may be withdrawn in full. These included the Aetna Trust and Savings bank, Virginia Avenue State bank, Belmont State bank, Marion County State bank, Peoples State bank, and Citizens State bank of Beech Grove. State banking officials announced a large number of banks open throughout the state and they were working at top speed today checking condition of other banks in preparation for issuing permits for their reopening as soon as possible. It was announced at the statehouse today that practically every county in the state has at least one bank open. Bankers pointed out that the heavy excess of deposits over withdrawals was not caused by the limitation on cash withdrawals. The banks were forced to ask very few persons to sign affidavits that heavy withdrawals were for necessary purposes and not for hoarding. Gold coins and gold certificates today continued to pour into banks, officials reporting more than $100,000 in gold received in exchange for currency Tuesday. It was estimated that more than $700,000 in gold coin and gold certificates has been shipped to the federal reserve bank at Chicago in the last week. Heavy Penalty Provided A maximum penalty of a $10,000 fine and ten years in prison is provided for persons hoarding gold and gold certificates. Banks of the country have until Thursday to furnish the government with lists of persons who have withdrawn gold or gold certificates in sizeable quantities in the last few years without returning it. Building and loan associations reported increased business Tuesday and today as payments were made on loans. During the banking holiday no payments were made on loans and PA borrowers hastened to make paye ments as soon as funds were available. S Most of the money received was in cash, with few checks being tendered, it was said. Operations of these financial in] stitutions have been on a restricted basis for several months.

2. May 9, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 9, 1933

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BANK RECEIVERS ASKED Attorney-General Files Suits in Behalf of Commissioner. Suits asking appointment of receivers for the Belmont State bank and the Virginia Avenue State bank were filed today in superior court one by Philip Lutz Jr., attorneygeneral, in behalf of Richard A. McKinley, state banking commissioner. Complaints in the suits contain only formal allegations, to the effect that the banks were closed on orders of the commissioner and now are in charge of the state banking department.

3. May 9, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 9, 1933

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BANK RECEIVERS ASKED Files Suits in Behalf of Commissioner. Suits asking appointment of receivers for the Belmont State bank and Virginia Avenue State bank were filed today in court one by Philip Lutz attorneygeneral, in behalf of Richard A. McKinley, state banking commissioner. Complaints the suits contain only formal allegations, to the fect that the banks were closed on orders the and are in charge of the state banking

4. May 10, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 10, 1933

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SET BANK HEARINGS Receiver Action to Be Conducted Before Judge Kern Friday. Petitions for appointment of receivers for the Virginia Avenue State bank and the Belmont State bank will be heard in superior court one Friday by Judge John W. Kern. Suits were filed by Richard A. McKinley, state banking commissionem The institutions were closed last week by the bank department.

5. May 12, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 12, 1933

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CREDITOR SUES CLOSED BANK'S STOCKHOLDERS Double Liability Judgment Asked in Meyer-Kiser Court Action. Suit to collect from sixty-five stockholders of the defunct MeyerKiser bank on a double liability basis, was filed today in circuit court by Charles D. Babcock, an attorney, who avers he is a general creditor with a claim of $150. Babcock, member of a depositors committee, states in the suit that he is acting for himself and more than 1,000 other creditors of the bank. Among the defendants are stockholders who served until a week ago as liquidating agents, having been displaced by Thomas E. Garvin, receiver, appointed by Circuit Judge Earl R. Cox. These stockholders are Ferd S. Meyer, from whom the suit demands $66,640; J. J. Kiser, $66, 000, and M. S. Cohen, $66,500. May Pay Well, is Claim From Sol Meyer the suit asks $66,500. Amounts of $6.000 or less ere sought from remaining defendants. Order for discharge of all former employes of the bank and cessation of operation of all departments was given Garvin by Cox today. Last Saturday Garvin discharged fourteen of the eighteen employes of the liquidating agents. Depositor creditors of the defunct State Savings and Trust Comto pany assets plan of the continue receivership, their search it for was revealed today when petition was filed with Cox asking for a further investigation. Examination Is Sought The petition. signed by K.I. Hamilton, J. S. Sisloff, R. D. Evans and S. to an the "arrange Pat Solomon, for examination asked the court of records and activities of the officers of the bank and its subsidiary, the State Property Company." Meyer-Kiser bank depositors could be paid in full, if total ascan at sets an of average the bank of 70 per be cent liquidated of their book value. Kiser said today, adding that only time and general business conditions govern this possiGarvin the bank bility. may pay depositors Thursday said 25 cents on the dollar. Kiser said that income from all sources during the twenty-three months of liquidation of $262,545.75. Expense for the same period, he said, was $232,125.27 leaving a net operations profit of $30,420.48. Cites Examination Results Examination by the state banking department showed approximately the following, Kiser said: Total liabilities, exclusive of $614,000, in capital surplus and undivided value of bankprofits, assets, $1,878,000; $2,492,000, total valued book by ing department at $1,373,000. If the assets are liquidated at the value placed on them by the banking on the department examination, the depositors basis of recent and creditors approximately 70 would per cent, receive Kiser said. Receivers for the Belmont State bank and Virginia Avenue State bank, closed recently on order of the state banking department, were appointed today by Judge John Kern in superior court one. Frank B. Ross, attorney and former was the $15,Belmont probate receiver judge, with bond named of 000. Edward A. Oliger, attorney, was appointed the Virginia Avenue receiver at $10,000 bond.

6. May 12, 1933 The Indianapolis News Indianapolis, IN
Article from The Indianapolis News, May 12, 1933

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TWO RECEIVERS NAMED. Court Acts in Belmont and Virginia Avenue Bank Cases. Receivers for two state banks in Indianapolis were appointed Friday by Judge John W. Kern, of superior court. James B. Ross, attorney, was appointed for the Bank and Edward A. Oliger, also an was for the Virginia Avenue State Bank Thomas D. Barr, of the state banking department, testified both banks were insolvent. Deposits of the Belmont State Bank total with bills of $60 The deposits in the Avenue State Bank $90,000, with bills payable of $82,000.

7. May 13, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 13, 1933

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CREDITOR SUES CLOSED BANK'S STOCKHOLDERS Double Liability Judgment Asked in Meyer-Kiser Court Action. Suit to collect from sixty-five stockholders of the defunct MeyerKiser bank on a double liability basis, was filed Friday in circuit court by Charles D. Babcock, an attorney, who avers he is a general creditor with a claim of $150. Babcock, member of a depositors committee, states in the suit that he is acting for himself and more than 1,000 other creditors of the bank. Among the defendants are stockholders who served until a week ago as liquidating agents, having been displaced by Thomas E. Garvin, receiver, appointed by Circuit Judge Earl R. Cox. These stockholders are Ferd S. Meyer, from whom the suit demands $66,640; J. J. Kiser, $66,000, and M. S. Cohen, $66,500. May Pay Well, is Claim From Sol Meyer the suit asks $66,500. Amounts of $6,000 or less are sought from remaining defendants. Order for discharge of all former employes of the bank and cessation of operation of all departments was given Garvin by Cox today. Last Saturday Garvin discharged fourteen of the eighteen employes of the liquidating agents. Depositor creditors of the defunct State Savings and Trust Company plan to continue their search for assets of the receivership, it was revealed today when petition was filed with Cox asking for a further investigation. Examination Is Sought The petition, signed by K. I. Hamilton, J. S. Sisloff, R. D. Evans and S. Pat Solomon, asked the court to "arrange for an examination of the records and activities of the officers of the bank and its subsidiary, the State Property Company." Meyer-Kiser bank depositors could be paid in full, if total assets of the bank can be liquidated at an average of 70 per cent of their book value, Kiser said today, adding that only time and general business conditions govern this possibility. Garvin Thursday said the bank may pay depositors 25 cents on the dollar. Kiser said that income from all sources during the twenty-three months of liquidation of $262,545.75. Expense for the same period, he said, was $232,125.27. leaving a net operations profit of $30,420.48. Cites Examination Results Examination by the state banking department showed approximately the following, Kiser said: Total liabilities, exclusive of $614.000, in capital surplus and undivided profits, $1,878,000; total book value of assets, $2,492,000, valued by banking department at $1,373,000. If the assets are liquidated at the value placed on them by the banking department on the basis of the recent examination, depositors and creditors would receive approximately 70 per cent, Kiser said. Receivers for the Belmont State bank and Virginia Avenue State bank, closed recently on order of the state banking department, were appointed today by Judge John Kern in superior court one. Frank B. Ross, attorney and former probate judge, was named the Belmont receiver with bond of $15,000. Edward A. Oliger, attorney, was appointed the Virginia Avenue receiver at $10,000 bond.

8. May 17, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 17, 1933

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# BELMONT BANK # TO GET FUNDS # FOR PAYMENT Money Will Be Available for All Unrestricted Deposit Accounts. BY JAMES A. CARVIN Times Staff Writer Assurance that funds are available to the Belmont State bank for payment of deposits in trust since the national bank holiday was given today by Frank B. Ross, receiver. Ross answered rumors that cash balance in the receivership was insufficient to meet demands for unrestricted deposits. Announcement was made following receipt of word from officials of the Fletcher American National bank that a $5,000 deposit would be turned over to the receivership without restriction. Approximately $7,146.59 is available to the receivership for payment of new and unrestricted deposits of $5,181.33 since the bank holiday, Ross announced. It was explained that the $5,000 deposit was placed in vaults of the Fletcher American for safe keeping, following a customary policy of holding cash at the Belmont to an amount sufficient for daily transactions. Depositors to Organize According to the bank examiner's report, which preceded closing of the Belmont bank last week, cash on hand was $2,146.59. Spread of this information led to rumors that unrestricted deposits would not be paid. Depositors of the Belmont bank will meet at 2 Saturday in the Belmont theater for organization, it was announced today. Considerable comment has been heard regarding the alleged declaration of Belmont officials that the institution was "affiliated with the Fletcher American National bank." William A. Boyce Jr., attorney for a group of depositors, who Monday filed suit to collect $25,000 double liability from the bank stockholders, conferred today with Prosecutor Herbert E. Wilson regarding newspaper advertisements of the bank in which the claim of affiliation was made. Referred to Hagemier Wilson advised Boyce to discuss the matter with Oscar Hagemier, grand jury deputy prosecutor, to determine what action was warranted. According to the bank examiner's report, 165 of the 250 shares of bank common stock are held by the Fletcher American Company, which now is in process of liquidation. It formerly was the bond and stock house of the Fletcher American bank. The examiner's report also revealed that James C. Scanlan, automobile dealer convicted of conspiracy in criminal court and sentenced two to fourteen years in Indiana state prison recently, obtained $5,320 from the bank on sales contracts which, the report charges, are fictitious. The examiner's report also revealed that $122,197.20 in security assets of the Belmont bank are pledged with the Fletcher American bank for notes totaling $102,443.88. Best of Assets Pledged The loans were made over a period of time during which withdrawals drained cash assets of the Belmont bank, it was said. Best of the security assets were pledged in the transactions, the report reveals. Par value of the collateral with the Fletcher American is $126,000, only $4,000 more than the examiner's estimate in the report. The securities remaining in the bank vaults are appraised at $71,548.21, although the par value is $96,500, the report states. Eliminating liabilities of $73,785.11, representing capital stock of $25,000 and surplus, undivided profits and reserves of $48,785.11, the liabilities of the bank approximately are $283,293.14. Assets are listed as: Real estate loans, $71,564.35; personal and collateral loans, $53,951.11; real estate, 17,894.07, and bonds and stocks, $193,745.41. The latter item includes the $122,197.20 pledged to the Fletcher American.

9. May 18, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 18, 1933

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EX-RECEIVER CHARGED WITH FUND WASTE Curtis Rottger Target of Suit by City Trust Depositors. Further revelations of affairs of defunct local banks and their receiverships were indicated today by petitions filed in circuit court and start of an audit of the MeyerKiser bank. The Meyer-Kiser audit will cover all transactions, it was announced by Thomas E. Garvin, receiver, who. with Charles D. Babcock, head of the depositors committee. obtained an order for the examination from Circuit Judge Earl R. Cox. Howard W. Painter, a certified public accountant, is making the audit, assisted by William M. Madden and Karl I. Hamilton. Probe of handling of the City Trust Company by Curtis H. Rottger as receiver is asked. The petitions were filed with Cox by two depositor-creditor corporations, through their attorney, Joseph Collier, alleging that $13,291.58 was was "dissipated" by Rottger, who was receiver until February. Ask $25,000 Judgment Simultaneously, suit was brought in superior court one to collect $25.000 stockholders' liability by Edward A. Oliger, receiver of the Virginia Avenue State bank, who was appointed last week. Defendants named in the suit are the Fletcher American Company and nine bank stockholders. The company, now in process of liquidation, formerly was the bond and securities house of the Fletcher American National bank. Judgment of $17,500 is sought from the company and $1,000 each from Wilson W. Godfrey, Walter J. Hubbard Jr., William Iverson, C. R. Keigh, Frank E. Rieman, Chester L. Robinson. Harry T. Shaneberger and Perry E. O'Neal. Sum of $500 is asked from Alfred G. Mueller. Petitioners for the City Trust probe are the Puritan Hotel Company and the Market-New Jersey Realty Company, owners of the property at Market and New Jersey streets, operated by the hotel company. Cox declared that his previously announced intention to "tear the veil of secrecy" from receivership affairs would be carried out with a complete investigation of charges against Rottger. Bad Exchange Charged Principal charge in the petition is that the receiver permitted solvent securities, totaling $74,500, to be exchanged for alleged worthless securities of the City SSecurities Corporation and other subsidiaries of the closed bank. Demand was made on Rottger for return of $29,077.11 to the receivership funds, with the allegation that the amount represented excessive expenditures for salaries on the receiver's staff. Another charge was that the receiver "wrongfully permitted $5,000 of the funds of this trust to be paid by Center Realty Company, an affiliate of the City Trust Company, to City Securities Corporation, an affiliate of City Trust Company, when the Center Realty Company was not indebted justly to the City Securities Corporation." Dividend "Set-Off" Alleged. It also was charged that more than $17,000 in dividends due to the trust were "set-off" against deposit claims by corporations owing the dividends. Other bank matters coming into the spotlight Wednesday concerned the Belmont State bank, and the Meyer-Kiser bank. Garvin, replying today to criticism of use of the elaborate offices of the Meyer-Kiser bank for the receivership work, stated that the three liquidating agents whom he succeeds had paid rent on the offices until Aug. 1, and that a move would entail more expense. The rent is $1,000 a month, paid from funds of the defunct bank. Announcement was made by Frank B. Ross, Belmont receiver, that funds were available for payment of deposits made since the bank holiday. A $5,000 deposit in the Fletcher American was released to the receiver to augment cash on hand in meeting post-holiday trust deposits of more than $5,000.

10. May 22, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 22, 1933

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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)

11. May 23, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 23, 1933

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# JUDGE ORDERS # SUIT AGAINST # BANK OFFICERS Cox Grants Permission to Receiver to Demand $1,150,000. # CHARGE DISHONEST ACTS Washington Trust Leaders Guilty of Criminal Moves, Is Claim. Permission to file three suits seeking $1,150,000 was granted today by Circuit Judge Earl R. Cox to Oren S. Hack, receiver of the Washington Bank and Trust Company. Grand jury investigation of transactions involving former officials of the defunct State Savings and Trust Company was ordered to begin Wednesday by Prosecutor Herbert E Wilson. Suits which Hack is to file will be based on alleged dishonest and criminal acts of directors and officials of the Washington bank, which was closed Oct. 27, 1930. Of the total sought, $1,000,000 would be asked in a suit alleging directors by "omission, commission, malfeasance, misfeasance and non-feasance" caused loss to the bank. False Entries Charged Among the specific allegations is one that the directors permitted Edward Morris, former president, who died of carbon monoxide poisoning from the exhaust of his automobile, to negotiate loans with worthless paper as security. They also charged directors permitted false entries, allowed reports to the state banking department which did not disclose the true condition of the bank, and made loans to corporations in which they were interested. Second suit would be based on an indemnity bond of the Fidelity Deposit Company of Maryland, which was for protection of the bank against loss due to dishonest and criminal acts of officers or employes. Cites Confidential Report Basis of the third suit will be an allegation that $50,000 was lost to the bank through unlawful action of directors in declaring dividends when it is declared the bank did not have net earnings or surplus in sufficient amounts to warrant dividends. The allegations on which the suits would be based, Hack declared in petitions for permission to sue, are based on statements in a confidential report to Brandt C. Downey, replaced as receiver by Hack on the order of Cox. The State Savings probe will center on a charge that $40,000 was carried as an asset of the bank, when in reality it was a liability of the State Property Company, a subsidiary, Wilson said. Bank Statements Probed Bank statements showing notes totaling $500,000 also will be investigated. Wilson declared that the actual total of the notes was $700,000 when the statement was made to the bank examining department. Assistance of Mrs. Ida Broo, accountant who audited the records at direction of Circuit Judge Earl R. Cox, and the accounting firm of Spradling, Carter & Jordan, will be asked in presentation of the records to the grand jury, Wilson said. Recommendations of the depositors' committee of the closed Belmont State bank will be submitted at a meeting to be held Saturday at the Belmont theater. C. A. Klingensmith, chairman, announced today. Action in another bank case today was taken by Superior Judge Russell J. Ryan, who delayed appointment of a receiver for the Acton State Bank to await outcome of an attempt at reorganization.

12. June 2, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 2, 1933

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# JUDGE ORDERS # $12,200 PAID # TO DEPOSITORS Unrestricted Amounts in Belmont, Virginia Avenue Banks Released. Payment of $12,200 in unrestricted deposits of two banks, now in re- ceivership, was ordered today by Su- perior Judge John W. Kern. Of the amount $5,500 will be paid depositors in the Belmont State bank, through Frank Ross, receiver, and $6,700 to Virginia Avenue State bank claimants through Edward A. Oliger, receiver. The money will be that held in separate accounts after the reopen- ing of the banks in March. It will have no bearing on the 5 per cent restricted balances that were tied up with the closing of the institutions, Kern said. Circuit Judge Earl R. Cox today issued an order giving Mrs. Mar- garet Caito the privilege of inspect- ing the records of the defunct Meyer-Kiser bank in her suit against the former liquidating agents. Thomas E. Garvin, receiv- er for the institution, was recipient of the court order. Records of other local banks were to come before the grand jury to- day after no evidence of a criminal nature had been revealed in the quiz into affairs of the State Sav- ings and Trust Company, Prosecu- tor Herbert E. Wilson said. Oscar C. Hagemier, grand jury deputy prosecutor, announced that no additional witnesses had been subpenaed today. Deposits of the State Savings in the two banks prior to its closing will be studied, with the banks' rec- ord brought before the grand jury, Hagemier said.

13. September 14, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, September 14, 1933

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# DEFUNCT BANK # CHIEFS FACE # $261,000 SUITS Permission to File Action Is Given by Judge Kern in Belmont State Case. # CHARGE LAW VIOLATION Cashier, President and Directors Are Targets in Complaints. Superior Judge John W. Kern to- day ordered Frank B. Ross, receiver of the defunct Belmont State bank, to file suits to recover $261,000 with which to pay depositors. Permission for the suits was granted following the filing of a petition by Edward Fillion, Ross' attorney, charging George C. For- rey Jr., president; William J. Clark, cashier, and five other directors with "misfeasance, malfeasance and non- feasance." Shortly before noon, Fillion filed a $10,000 suit in superior court four against Clark and the American Surety Company of New York, and a $1,000 suit in superior court five against Forrey and the surety com- pany, to collect on the officials' in- demnity bonds. A suit for $250,000 against the directors will be filed shortly, Fillion said, since the complaint now is being prepared from information secured by auditors. # Suit to Hit Directors The court order instructed Ross to institute proceedings against Louis P. Robinson, Ralph K. Smith, Charles R. Keogh, Theodore Stempfel and Elmer W. Stout, who with Forrey and Clark formed the board of directors. Charges against Forrey and Clark are contained in thirteen separate points, with an additional para- graph alleging that Clark arranged a personal loan through a third party "for the alleged purpose of cheating and defrauding the bank and evading the state banking laws." According to the complaint, Clark, unable to obtain a loan as an official of the bank, obtained the signature of Fred Goepper Jr., on a note for $500, and made the loan on June 30, 1926. On April 1, 1927, Goepper refused to sign a re- newal note, the complaint says. # Charge Loss Incurred Clark is charged with then ob- taining the signature of Homer W. Sears, which is alleged to have resulted in a loss of $430 to the bank. The complaint alleges Clark paid all the interest on the notes when due and repaid $70 of the principal. Both Forrey and Clark are charged with having parts in an alleged transaction which took place between June 30 and July 1, 1931, involving $25,000, in an alleged at- tempt to "bolster the financial statement of the bank at the close of business June 30, and deceive de- positors. The transaction, it is charged, was arranged between the Belmont bank, the Madison Avenue State bank and the Fletcher American National bank, whose directorate also included directors in the Bel- mont bank. # Securities Bought, Sold According to the complaint, the Madison bank deposited $25,000 with the Belmont bank, where the sum was carried as a demand de- posit. On June 30, the day of the deposit, the Belmont bank is said to have used the money to purchase securities held as collateral by the Fletcher American in the amount of $24,983.33. The next day, July 1, the Bel- mont bank again sold the securities to the Fletcher bank and returned the $25,000 to the Madison avenue institution, it is charged. Another charge against the for- mer president and cashier recounts business dealings with the J. C. Scanlan company, whose presi- dent, James C. Scanlan, now is serving a term in Indiana state prison for discounting fictitious automobile sales contracts. # Loans Past Limit, Claim Loans totaling $40,000 were made to the company, whe nthe legal limit to one individual by state banking law would have been only $6,000; the suit charges. The Scanlan Company also was permitted to ovedraw its account to as much as $16,418.11, on Aug. 6, 1931, it is alleged. The former bank officials also are charged with failure to use "dili- gence in ascertaining true value of notes," totaling $5,320 and given for automobile purchases on Oct. 13, 1932, and discounted with the bank. The notes are valueless, the suits allege. Other allegations are that Clark obtained a $2,250 second mortgage on real estate he owned and mort- gaged for $6,250, when the actual value of the property was insuffi- cient to warrant the second mort- gage. Forrey, who also was president of the defunct Fletcher American Company, is charged together with Clark with loaning money to the security company, although know- ing it was insolvent. The complaints allege the Bel- mont bank officials were "com- pletely under the domination and dictation of the Fletcher Ameri- can company."

14. November 15, 1933 The Indianapolis Star Indianapolis, IN
Article from The Indianapolis Star, November 15, 1933

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LOANS FROM RFC RELEASE Payment of Half of Frozen Deposits Planned Before Christmas-City Share Is $1,500,000. Christmas closed companies planned by Seventh Federal Indiana and the state committee is arranging frozen deposits about defunct banks through reconfinance loans. will make possible Christmas gifts by many would have small yuletide cheer It will mean business for and possible payment of debts. Details of the plan be outlined and liquidating agents banks meeting tomorthe Indianapolis Athletic Would Release Nearly Half. At the banking department yesterday it explained that the expected release about half the deposits the closed banks in the Seventh district, which comprises most liquidating agents invited to attend the meeting letters sent out by Robert R. Batton, chairman of the Federal committee and the other four members, all of whom are members the department financial instituFour closed Indianapolis banks eligible the state officials explained. half the deposits in Indianapolis institutions as approximately $1,500,000 free in the The Indianapolis banks and approximate deposits, Farmers Trust $1,Aetna Trust Company, Virginia AveState and Belmont State to Furnish Funds. Mechanics of the plan simply provide for long-term loans to the funct banks, through the receivers liquidating Existing sets are pledged collateral for the loans. funds derived from the reconstruction finance corporation. The assets be liquidated orderly fashion and the loans repaid to the Federal government by the receivers and liquidating agents. This will the flooding markets bank and prevent assets sacrifice figures. period five years the assets be advantage, it explained. Banks eligible the loans include about closed was explained banking department. Banking Department at Helm. Most of the involved be done through the state banking deThe Indiana committee will co-opwith the finance corporation and the deposit liquidation board in making the loans banks through James Leavell of Chicago and Walter W. Smith of the Seventh and Eighth Federal districts The Indiana committee. headed by Mr. Batton of includes Myron H. Gray of Muncie, Harvey Hartsock Indianapolis, Setser Columbus and Oscar Welborn of Indianapolis. one committees of bankers and business men appointed to speed the of more than $3,000,assets closed national and state banks throughout the country. Banks to Make Applications. The receive applications from closed banks for loans from the poration. The committee then will review the application and fix liquidating for the listed assets period of three to five years. The application then will be passed along to the district chairmen with for amount, less the cost determining district chairman will recomaction to the deposit liquidatBanks operating under liquidating agent of the state banking mission receiver to which the notices sent included Citizens Loan and Trust Company of Frankfort, Peoples State bank at East ChiCitizens State bank at NoblesExchange Lyons, Wabash County Loan Trust Company Trust ComIndianapolis, Valley

15. November 15, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, November 15, 1933

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BANK 'THAW' OF $20,000,000 TO BE FORMULATED Meeting Set to Arrange for Liquidation With RFC Money. Plans for a $20,000,000 liquidation of assets in eighty defunct state banks will be drafted by the state banking commisison and Seventh district reserve committee at a meeting tomorrow afternoon at the Indianapolis Athletic Club. The move is in addition to the one announced last week for putting $10,500,000 into liquidation through the Home Owners Loan Corporation, it was said. Receivers Invited Robert R. Batton, chairman of both the federal reserve district committee and state banking commission, called the meeting and will preside. Funds for the liquidation are to be provided by the RFC. Receivers and liquidating agents for the closed institutions have been asked to attend the meeting and hear the plan unfolded. Machinery of the project is to provide long term loans to the banks on frozen assets. Four in City Affected It was estimated by the state banking department that nearly all can have their deposits released by Christmas in this manner. Indianapolis banks affected by the plan and approximate amount of deposits include the Farmers Trust Company, $1,280,000; Aetna Trust Company, $1,280,000; Virginia Avenue State bank, $123,000, and Belmont State bank, $250,000.

16. January 2, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, January 2, 1934

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# NOTICE TO CREDITORS OF THE BELMONT STATE PANK TO THE CREDITORS OF THE BELMONT STATE BANK, OR THE RECEIVER THEREOF: You and each of you who are hereby notified that pursuant to an order made by the Superior Court of Marion County, Room No. 1, in a cause entitled State of Indiana, on relation of Richard A. McKinley, Bank Commissioner of the State of Indiana vs. Belmont State Bank, being Cause No. A-72181 on the docket of said Court, all creditors of, and all those having any claim of any kind or nature against the Belmont State Bank or its Receiver, with the exception of persons having active demand deposits, savings accounts, and/or 1933 Christmas savings accounts, must file their claims with the undersigned Receiver at his office, 901 State Life Building, Indianapolis, Indiana, on or before January 15, 1934, or be forever barred from participating in any distribution of the assets of the said Belmont State Bank. Persons having active demand deposits, savings accounts and/or Christmas savings funds for the year 1933, will participate as their claims are shown to exist upon the books of said Belmont State Bank and any persons wishing to verify said amount as shown upon the books may call at the office of the Receiver for such purpose. All persons having inactive demand deposits, upon which no deposits or withdrawals have been made since June 1, 1932, are required, under this order, to file their proofs of claim in order to participate in any dividend. FRANK B. ROSS, Receiver of Belmont State Bank, 901 State Life Building, Indianapolis, Indiana. EDWARD P. FILLION, Attorney for Receiver, 1214 Merchants Bank Building, Indianapolis, Indiana.