5903. Meyer-Kiser bank (Indianapolis, IN)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
May 1, 1931*
Location
Indianapolis, Indiana (39.768, -86.158)

Metadata

Model
gpt-5-mini
Short Digest
cc70cf46

Response Measures

Borrowed from banks or large institutions, Capital injected, Full suspension, Books examined

Other: Liquidating agents (directors) initially conducted forced liquidation and later resisted appointment of a receiver; secret reserve (Smetal trust) and stockholder interventions are important aspects.

Description

Bank experienced heavy withdrawals (run) and closed in May 1931. Initially returned to its directors for liquidation; depositors sought a receiver and after litigation a receiver (Thomas E. Garvin) was appointed later and the bank remained in receivership. Cause of the run is attributed in the coverage to failures of other banks that precipitated withdrawals.

Events (3)
1. May 1, 1931* Run
Cause
Local Banks
Cause Details
Heavy withdrawals precipitated by failures of other banks and contagion in the local banking environment; reports state failure of other banks drained $4,000,000 in deposits from Meyer-Kiser.
Measures
Officers sold marketable securities and attempted liquidation of assets to meet withdrawals; later returned the closed bank to its directors to liquidate assets.
Newspaper Excerpt
The institution has been subject to heavy withdrawals...
Source
newspapers
2. May 12, 1931 Suspension
Cause
Local Banks
Cause Details
Bank closed after being drained by heavy withdrawals tied to failures of other banks and inability to convert assets to cash to meet deposit demands.
Newspaper Excerpt
the bank that closed late Monday; closed May 11 / closing Monday night
Source
newspapers
3. June 22, 1933 Receivership
Newspaper Excerpt
GARVIN NAMED TRUST RECEIVER... Upon agreement ... Garvin was appointed receiver for the trust; Thomas E. Garvin, receiver, is referenced throughout 1933 coverage as receiver of the defunct Meyer-Kiser bank.
Source
newspapers

Newspaper Articles (21)
1. May 12, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 12, 1931

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$4,000,000, in consequence of which, the remaining assets, while considered perfectly good by the directors, were not susceptible to immediate conversion into cash with which to pay depositors." The institution has been subject to heavy withdrawals and has been faced with inability to liquidate loans within the last few years, it was said. At the hour of closing Monday night, the institution reported $600,000 in total capital and surplus with deposits aggregating about $2,240,000. After preliminary examination, it is probable that the state banking department will file a petition in a county court for the appointment of a receiver to supervise distribution of assets. Officers of the bank are: Sol Meyer, president; Sol S. Kiser, J. J. Kiser, Ferd S. Meyer, M. S. Cohn and G. Jackson, vice-presidents; A. J. Wichman, cashier; B. E. Fischer, assistant to the president; J. E. Ohleyer, assistant to the cashier, and L. E. Ostheimer, assistant cashier and auditor. The Meyer-Kiser bank was organized in 1895 as a real estate and insurance partnership between Sol Meyer and Sol Kiser. Stockholders in the bank controlled the holding company, the Meyer-Kiser Corporation. The institution occupied its own building.

2. May 12, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 12, 1931

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BANK FAILURE 'LUCK' TO WOMAN ON TRIAL Convicted of Liquor Charge, She's Given Time to Pay Fine. Bad luck followed Mrs. Lyda Mann into municipal court today, but before her case was ended. Lady Luck had made a bid to aid her. Police told Judge William H. Sheaffer that in a raid on Mrs. Mann's home recently they found a quantity of home brew. Mrs. Mann admitted she made it "for my use and I never sold or gave any away." Sheaffer fined her $100 and costs and suspended a thirty-day sentence at the Indiana woman's prison. Then Sheaffer suspended the costs. As Mrs. Mann prepared to leave the court, her attorney told Sheaffer that Mrs. Mann's only money was in the Meyer-Kiser bank that closed late Monday. Sheaffer placed her on probation, allowing her sixty days to pay the fine.

3. June 5, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 5, 1931

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# COURT TO HEAR # BANK SQUABBLE Meyer-Kiser Receiver Suit Comes Up Saturday. Hearing on a suit for receiver for the Meyer-Kiser bank, filed by at- torneys for creditors and depositors, will be held before Judge Joseph R. Williams Saturday in superior court two. Creditors and depositors are protesting against liquidation of the bank's assets by its officials as outlined by Luther F. Symons, state banking commissioner, following closing of the bank May 12. Defendants are the bank, Julian J. Kiser, Melville S. Cohn and Ferd S. Meyer, vice-presidents and liquidating agents. Illegal conduct on the part of state banking officials in turning

4. June 13, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 13, 1931

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# BANKING MIXUP # TO HIGH COURT Meyer-Kiser Halts Receiver Suit With Writ. Intervention of the Indiana supreme court by issuing a writ of prohibition today stopped efforts of depositors to have a receiver appointed for the Meyer-Kiser bank. The writ denies Thomas D. McGee, special judge, the right to hear arguments on the receivership petition in superior court two. Hearing on the writ, petitioned for by the bank's directors and liquidating agents, will be held before the supreme court Wednesday. It is claimed that Judge McGee is without jurisdiction in the case because under the state law only the attorney-general, on behalf of the state banking commissioner, can file receivership suits. The case may decide whether a few depositors can force the state banking department to place a bank in receivership when the bank has taken steps to liquidate its assets on approval of the department.

5. July 25, 1931 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, July 25, 1931

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# REFUSED BANK RECEIVERSHIP, DEPOSITORS SUE Seek to Make Meyer-Kiser Stockholders Liable for $300,000 Judgment. Charging assets of the bank will not cover the $2,000,000 deposits, two depositors of the Meyer-Kiser bank filed suit in superior court two Friday to hold the stockholders responsible under the stockholders' liability law. This followed closely a 3 to 2 decision of the supreme court prohibiting Special Judge Thomas D. McGee from proceeding with appointment of a receiver for the bank. The new suit demands that stockholders become responsible for judgment amounting to $300,000. A receiver for the fund also is asked. Symons Lauds Ruling Luther F. Symons, state bank examiner, who turned the bank back to its directors after its doors had been closed, heralded the supreme court decision as a "victory for depositors." It will save thousands of dollars by eliminating expensive receiverships, Symons declared. In the suit appealed to the supreme court, depositors were demanding a receiver because they feared their interests would not be guarded properly without one. Only the state bank commissioner has authorit yto petition for a receiver for a defunct bank, the supreme court ruled. Two Judges Dissent Judge Julius C. Travis and Judge Walter Treanor concurred in the opinion of Judge David A. Meyers, while Clarence R. Martin, chief justice and Justice Curtis Roll dissented, holding the writ should not have been issued against the court. In a dissenting opinion, written by Chief Justice Martin, it was pointed out that the law governing general receiverships of corporations still can be invoked in the case of banks since there is nothing in the law exempting bank corporations still can be invoked in the case of banks since there is nothing in the law exempting bank corporations. Under this interpretation bank creditors can ask a receivership in the same manner that creditors of any commercial corporation can do so.

6. April 5, 1932 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, April 5, 1932

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CLOSED BANKS FAIL TO PAY IN TWO YEARS to Depositors No Nearer Recovering Funds in Five Institutions. REAL ESTATE BLAMED Delay Gradually Is Making Inroads on Assets With Receivership Expenses. BY SHELDON KEY Depositors of four defunct Indianapolis banks have been waiting almost two years for receivers to liquidate assets and those of a Afth institution have waited since May 4. 1931, without any dividend payments. The long delay in liquidation was revealed today by an examination of the banks' records. Defunct banks and dates they closed State Savings and Trust Company, closed April 25. 1930, Eben H. Wolcott named receiver May 2. City Trust Company, Oct. 23, 1930, Curtis H. Rottger named receiver Nov. 17. Postal Station State bank. closed Oct. 23, 1930, Raymond D. Brown named receiver Nov. 20. Washington Bank and Trust Company, closed Oct. 28. 1930. Brandt C. Downey named receiver Nov. 15. Farmers Trust Company, closed May 4, 1931, Boyd M. Ralston named receiver May 6. In addition, promises that depositors in the Meyer-Kiser bank, which closed but returned to its directors for liquidation, soon would be paid, have not been fulfilled. Blame Real Estate Market Unsatisfactory condition of the real estate market is advanced by the receivers as the reason for de laying liquidation. This delay gradually is making inroads on assets, records revea! Expenses that must be borne include salaries to receivers their attorneys, clerks and office assistants. In addition, large amounts are being expended to keep realestate holdings in repair. The dismal part of this latter picture is that hundreds of houses belonging to the banks are vacant and have not been rented for many months That depositors may not become alarmed over the long delay, most of the receivers have formed depositors' committees. Through these committees, an attempt is being made to keep creditors informed as to the bank's status. The committees also advise and work with the receiver. Can't Be Liquidated According to reports, condition of the State Savings and Trust Company is about the same as when the bank closed. "Real estate, the defunct institution's chief asset, can not be liquidated because of adverse refinancial conditions," Wolcott, ceiver. said today. First dividend to depositors, Wolcott. said, is expected to come from a suit against stockholders on their liability, still pending in superior court two. Frozen assets of the City Trust Company principally include real estate and mortgage bonds for which there is no market now, it was said. "Dividends to creditors depend upon the real estate market. now at its lowest ebb." Rottger, who is serving without fee, said. Awaiting Court Decisions The City Trust, like the other banks, is awaiting court decisions on certain claims, alleged to be preferred against all other claims. Earnings are keeping the receivership going. without diminishing assets," Rottger explained Litigation in connection with the defunct Washington Bank and Trust Company has been involved and extended. Large real estate holdings of four subsidiary companies of the bank have augmented this condition, Downey announced "everything possible is being done to keep expenses of the receivership at a minimum. and, at the same time, save all possible assets." Recent report of Ralston, Farmers Trust Company receiver, showed the institution also is "loaded" with real estate, which can not be sold. Assets of the Farmers Trust Company have an appraised value of $596,300.76, instead of the value of $1,425,184.07 at which they were carried on the company's books when it closed its doors May 4, the report indicates. Plans to reopen the defunct Postal Savings State bank failed. been However, depositors have paid a 40 per cent dividend.

7. December 14, 1932 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, December 14, 1932

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Depositors in Defunct City Banks Will Get No Dividends as Yule Gifts that his bank is expecting to make Litigation and Dullness of a 2½ per cent distribution to depositors early in 1933. Realty Market Bars The defunct Washington Bank and Trust Company, which made to Payments. a $30,000 distribution at tax paying Depositors of six defunct Inditime, sees no other payment in sight for at least six months, Brandt C. anapolis banks probably will not reDowney, receiver, announced. ceive dividend payments within the Inability to sell real estate and next six months, receivers of the farms for cash will delay any disinstitutions said today. tribution by the Farmers Trust Pre-Christmas distribution to deCompany for a similar or longer positors and creditors will be imperiod, Boyd M. Ralston, receiver, possible, receivers stated. said. Litigation over preferred claims and the depressed condition of the Depositors of the City Trust Comreal estate market are chief factors pany are receiving a $23,000 equity hindering liquidation, they said. from sale of real estate mortgage Several institution receivers are certificates issued by the company. awaiting decisions from the appel"However, this will not be dislate court regarding preferred tributed until the appellate court claims. rules on preferred claims," C. H. Although majority of the banks' Rottger, receiver, stated. claims have been heard and decidEben H. Wolcott, receiver of the ed in Marion county courts, the State Savings and Trust Company, higher court ruling may change sees "no dividends for six months at the picture of assets completely, least." A suit against stockholders according to Circuit Judge Harry is awaiting decision. O. Chamberlin, whose court is Liquidating officials of the Meyerhandling three receivership actions. Kiser bank declared they are awaitRichard L. Lowther, receiver of ing decisions from Marion county the J. F. Wild bank, denied a report) courts regarding claims.

8. April 19, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, April 19, 1933

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MEYER-KISER FIGHT LOOMS Closed Bank's Depositors Organize: Suit to Be Heard April 27. Formal request to Richard A. McKinley, state banking commissioner, for an immediate examination of affairs of the Meyer-Kiser bank was made by the bank's officials today. Action by the liquidating agents followed closely the announcement of plans for formation of a permanent committee representing depositors for the purpose of demanding an accounting. A joint statement issued by J. J. Kiser, M. S. Cohn and F. S. Meyer, liquidating agents and former officers of the bank, branded allegations concerning the bank as "of such a ridiculous nature that they are not even worthy of a denial." "Nevertheless, we have made a formal request to Richard A. McKinley, state banking commissioner, asking him that he make an immediate examination of this bank and the progress of its liquidation," the statement declared. "We are hopeful this request will be granted and that the banking department will thereupon be in a position to make an authoritative statement to all interested parties. At a meeting Tuesday, a resolution was adopted by a temporary depositors' committee citing that no dividends have been paid since liquidation of the bank began nearly two years ago, and that no information has been given to depositors. Charles D. Babcock, attorney, was named temporary chairman of the depositors' organization. Appointment of a receiver has been asked in a suit filed in circuit court by Mrs. Jessie B. Powell, 78, of 5132 East Washington street. Circuit Judge Earl R. Cox has set April 7 as date for the receivership hearing.

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

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Refuse to Answer Queries on Bank's Assets and Sales of Stock. Liquidating agents of the MeyerKiser bank, defunct for two years, refused today to give a depositors' committee a statement of the bank's assets and liabilities. They also refused to state whether they or officials of the bank have disposed of any of its stock in the last five years. The agents will appear before Circuit Judge Earl R. Cox Thursday to contest an effort to displace them with a receiver, whose appointment is sougfiht by Richard A. McKinley, state banking commissioner. Another case involving a defunct bank, the State Savings and Trust Company, will be heard by Cox on Wednesday. He ordered an inquiry into certain real estate transactions and the former receivership of Eben H. Walcott. The Meyer - Kiser liquidating agents, J. J. Kiser, Ferd Meyer, and M. S. Cohen, replied to all but two of fifty-nine questions propounded by the depositors' committee, headed by Charles D. Babcock, an attorney, and including Saul I. Rabb, Philip Greenwald, and Harold L. Scotten. Replies to the questionnaire reveal that the Meyer and Kiser families own 90 per cent of the bank's stock and 75 per cent of it is owned by the liquidating agents. Each of the agents is receiving a salary of $425 a month. They formerly received $500. Besides the agents, nineteen persons are employed, the monthly pay roll for them being $2,500. They formerly received $3,500.

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

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BANK HEADS TO MAKE REPORT Meyer-Kiser Agents to Answer Questions of Depositors. Statement of assets and liabilities of the Meyer-Kiser bank, defunct two years and in process of liquidation by three agents who own 75 per cent of its stock, will be given to a depositors' committee headed by an attorney, Charles D. Babcock, he announced today. It was stated Tuesday that the liquidating agents, J. J. Kiser, Ferd Meyer and M. S. Cohn, had refused to make the statement, asked for in a list of fifty-nine questions submitted to the agents by the committee. However, it was explained by Babcock that press of other matters at the time replies to the questionnaires were made prevented submitting the statement. In regard to a question as to whether the agents or officers of the bank had disposed of any of its stock in the last five years, which was without reply, Babcock said today that the agents had sold 1,300 of the 15,000 shares they held. The agents will appear before Judge Earl R. Cox in circuit court Thursday to contest an action by Richard A. McKinley, state banking commissioner, who seeks to oust them and have a receiver appointed. Personal real estate holdings of officials of the Meyer-Kiser bank were sold to the public through the bank stock and bond department, it was revealed today under questioning by Judge Cox. The hearing was on a petition for receiver for the Pilgrim Properties, Inc. brought by Edward W. Little, local attorney, in his own behalf, as a stockholder of the property company. Cohn was on the witness stand during the morning. Cohn testified that the property company was organized as a holding company for three local apartment houses, and that 17,000 shares of common stock of $25 par value were issued and sold, through the bank. The apartments were owned by S. (Turn to Page Two)

11. 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.

12. May 27, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 27, 1933

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Plug Income Tax Hole All of the "nuisance" and excises carried in the 1932 revenue act are extended for an additional year, until July 1, 1935. A last minute compromise transferred the electric energy tax from consumer to producer. The house, at the last minutes, plugged one income tax hole. It altered the "net loss" section to prevent carryover of losses from one year to another for purposes of income tax reduction. Few believe the senate would be content with this comparatively mild revision. BANK QUIZ IS ORDERED Meyer-Kiser Directors Will Face Examination Under Oath. Examination under oath of directors on liabilities and assets of the defunct Meyer-Kiser bank was ordered today by Circuit Judge Earl R. Cox, on petition of Thomas E. Garvin, receiver. Cox set June 13 for appearance of the directors.

13. June 13, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 13, 1933

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# ASSETS OF NO VALUE FOUND IN DEFUNCT BANK Best Meyer-Kiser Securities Sold, Depositors Are Told at Meeting. Unsalable and, in some cases, worthless securities remain in the assets of the Meyer-Kiser bank after forced liquidation by officers to meet withdrawals, according to Thomas E. Garvin, receiver. Garvin's statement was made at a meeting of depositors in the bank building Monday night, at which a report of the first month's operation of the receivership was given. More than 200 depositors, headed by Charles D. Babcock, chairman, heard Garvin relate conditions under which the bank was operated by its former officers for five years prior to its close. From 1926 to May, 1931, when the bank closed, deposits of more than $4,000,000 were withdrawn, forcing officers to sell the best marketable securities to meet demands, Garvin said. Bulk in Florida Property As a result, 90 per cent of the present assets are in mortgage certificates and real estate bonds, the majority on Florida property, according to Garvin. J. J. Kiser, former vice-president of the defunct bank, told the depositors that former officials "feel a deep sense of responsibility to all of you." "We will do all in our power to help you get a maximum recovery in dividends," he said. "We have done our best and we have no apologies to offer." He repeated a previous statement from officials, in which it was declared that the two-year liquidating period, which culminated with the receivership, had shown a profit of approximately $30,000. Loss Is Claimed Report from the state banking department, which resulted in the appointment of a receiver, shows, however, that $36,000 was added to the receipts of the liquidation by the cash surrender value of an insurance policy on Sol Meyer, former president, making a net operating loss of $6,000. Depositors voted against a proposal by Garvin to form a corporation to take over the remaining assets and supplant the receivership in handling the bank's affairs. A resolution thanking Garvin for his information was adopted, with the declaration that depositors "have received, in one month, information that we could not get in two years when the former officers were serving as liquidating agents." Hope for Early Dividend Garvin previously had predicted that depositors would receive not more than "25 cents on the dollar." He promised depositors at the meeting that every effort would be made to declare an early dividend. Other information given by Garvin included the fact that $450,000 in securities is pledged with local banks as collateral on a $250,000 loan obtained shortly before the bank closed.

14. June 16, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 16, 1933

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# MEYER-KISER 'HUSH' LAID TO EX-BANK CHIEF Symons Advised Silence on Progress of Liquidation, Witness Says. EVIDENCE IN CONFLICT Former Vice-President and Other Officials Disagree on Profit Claim. Information regarding progress of liquidation of the defunct Meyer-Kiser bank was withheld from the public at suggestion of Luther Symons, former state banking commissioner, it was alleged in circuit court today. Ferd S. Meyer, former vice-president and liquidating agent, testified that it was his understanding that Symons suggested that announcements be withheld because of "general business conditions." The allegation was made during questioning of Meyer by William B. Miller, attorney for depositors, who is assisting Thomas E. Garvin, receiver, in obtaining information on the bank's affairs. Meyer also contradicted previous statements issued by J. J. Kiser and Mel Cohn, the other two liquidating agents, that the liquidation had been carried on at a profit. Says Cost Was High "Mark-off" of approximately $61,000 in security assets, and an actual operating loss of $7,000 brought the total cost of the liquidation to $68,000, Meyer admitted. Cash surrender value of a $100,000 insurance policy carried on the life of Sol Meyer, president, amounting to $36,000, was added to the income of the liquidation, to show an excess of income over expenditures, according to the records. Miller questioned Meyer regarding his willingness to pay liability on his stock in the bank. "Now is not the time to talk about that," the witness replied and refused to answer further without advice of counsel. Will Endeavor to Pay After a short recess, during which Meyer conferred with Paul Y. Davis, his attorney, he returned to the witness stand and declared: "After a judgment has been obtained legally, I will endeavor to pay, to the best of my ability." The charge against Symons was made when Miller asked Meyer's opinion regarding appraisal of assets made by the banking department, showing more than $1,000,000 in liabilities over assets. Meyer indicated that he differed with the banking examiners regarding certain assets. "Then you think the Meyer-Kiser bank still is solvent?" Miller asked. "Why don't you contest the receivership suit brought in this court by the banking department?" Blamed on Depositors "We decided it was not worth while to continue our efforts, in the face of the dissatisfaction expressed by a certain group of depositors," Meyer replied. The audit which resulted in the receivership was made after depositors organized in an attempt to get information which it was charged had been withheld for two years. Spurred on by discovery of $545,000 new assets in the defunct bank, attorneys will continue their investigations. Disclosure that a "secret reserve" of $500,000 was maintained in the bank without showing on any records except income tax reports was made by Meyer Thursday. A portion of the reserve fund and other assets to a total of $545,000 is the bank's share in a $902,000 corporation formed by members of the Meyer and Kiser families, the questioning revealed. Known as the Smetal Corporation, a name derived from the legal term Sol Meyer et al, the organization was formed to take title to real estate and other assets belonging to a trust created by the two families, principal stockholders, Meyer said. Assets Are Purchased When the institution began to totter under pressure of cash drainage from withdrawals, slow assets of the bank were purchased with cash produced from the private fortunes of the stockholders, Meyer testified. Present value of the new assets, represented by the bank's interest in the Smetal Corporation, have not been determined yet, according to Garvin, but an immediate appraisal will be made to ascertain the cash gain of the receivership funds. The "secret reserve" was created by Sol Meyer and Sol Kiser, members of the partnership which controlled the bank and paid its operating expenses, the younger Meyer said. "The fund was created for the exact purpose for which it later was used—that of providing cash when needed by the bank," he said. Possibility that Luther Symons and his son, Merwin Symons, who was employed in the bank for fifteen months by the liquidating agents, will be asked to testify at the hearing, was indicated by Garvin.

15. June 17, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 17, 1933

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# JUDGE ORDERS # MEYER-KISER # BANK REPORT Cox Wants More Light on Handling of Funds by Liquidators. Detailed reports of funds handled by liquidating agents of the Meyer-Kiser bank is being prepared by order of Circuit Judge Earl R. Cox. Order for the report was issued by Cox at the close of Friday's hearing, conducted by attorneys for Thomas E. Garvin, receiver, and depositors. The court was informed that the information was not available readily, and that its preparation would "take a lot of time." "That's all we have left in this trust," Cox retorted. "There doesn't appear to be any money left for depositors." Quiz to Be Resumed Questioning of former bank officials and liquidating agents will be resumed Monday by William B. Miller, Saul Rabb, attorneys for depositors; Walter Myers, attorney for Garvin, and the receiver. Most important information uncovered since start of the hearing Wednesday was the disclosure by Fred S. Meyer, former vice-president and liquidating agent, that the receivership trust owns a $545,000 share in assets with a book value of $902,000, held in the Smetal Corporation. The corporation was formed by the bank's officers when slow assets were replaced by cash in a forced liquidation over a period of several years preceding the bank's close, May 11, 1931. Failure of other banks brought on heavy withdrawals, which ultimately drained $4,000,000 in deposits from the bank, Meyer said. Symons Is Involved Other testimony included the allegation that Luther Symons, former state banking commissioner, suggested withholding information regarding the progress of the liquidation, because "it would be better for general business conditions." The allegation was made by Ferd Meyer. Meyer also declared that a sworn statement by Symons regarding the cash surrender value of a $100,000 insurance policy on Sol Meyer, president, was incorrect. Proceeds of the policy added $36,500 to the bank's income during the liquidation, Ferd Meyer said, although Symons reported the amount at $37,771. Declaration also was made by Meyer that preferred claims amounting to between $6,000 and $7,000 had been paid "because the liquidating agents were sure, in their own minds, that the claims should be preferred." Mistake Is Conceded "If you have left only $100,000 to pay $150,000 of preferred claims, what would you say regarding the payment of the $6,000?" Cox asked. "Then I would say we had made a mistake," Meyer replied. Testimony also revealed that the liqudating agents, Ferd Meyer, J. J. Kiser and M. S. Cohn, received $500 monthly salaries each from the Lincoln Loan Company, one of their companies, during the period when they also were drawing $500 monthly salaries as liquidating agents.

16. June 17, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 17, 1933

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# Meyer-Kiser Fund Report # Ordered by Circuit Judge Cox Wants More Light on Handling of Funds by Liquidators. Detailed reports of funds handled by liquidating agents of the Meyer-Kiser bank is being prepared by order of Circuit Judge Earl R. Cox. Order for the report was issued by Cox at the close of Friday's hearing, conducted by attorneys for Thomas E. Garvin, receiver, and depositors. stery Death Still Awaited then ran from the house. Taylor was found near death in the street several hours later. Dr. John E. Wyttenbach, deputy coroner, has conducted the county investigation of the case, but has not filed a verdict. Today he declined to comment on the status of the case. The police investigation apparent- The court was informed that the information was not available readily, and that its preparation would "take a lot of time." "That's all we have left in this trust," Cox retorted. "There doesn't appear to be any money left for depositors." Questioning of former bank officials and liquidating agents will be resumed Monday by William B. Miller, Saul Rabb, attorneys for depositors; Walter Myers, attorney for Garvin, and the receiver. Most important information uncovered since start of the hearing Wednesday was the disclosure by Ferd S. Meyer, fromer vice-president and liquidating agent, that the receivership trust owns a $545,000 share in assets with a book value of $902,000, held in the Smetal Corporation. The corporation was formed by the bank's officers when slow assets were replaced by cash in a forced liquidation over a period of several years preceding the bank's close, May 11, 1931. Failure of other banks brought on heavy withdrawals, which ultimately drained $4,000,000 in deposits from the bank, Meyer said.

17. June 17, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 17, 1933

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ORDERS MEYER-KISER Cox Wants More Light on Handling of Funds by Liquidators. Detailed reports of funds handled liquidating agents of the MeyerKiser bank being prepared order of Circuit Judge Earl Cox. Order for the report issued of Friday's hearing, by attorneys for Thomas Garvin, receiver, The court was informed that the not available readily, and that its preparation would "That's all have left in this trust," Cox retorted. "There doesn't appear any money left for depositors." Quiz to Be Resumed Questioning of former bank offiand liquidating agents will be ler, Saul Rabb, attorneys for depositors; Walter Myers, attorney for Garvin, the receiver. Most uncovered since start the hearing Wednesday was the disclosure by Fred Meyer, liquidating agent, that the trust share book value $902,000, held in the Smetal Corporation. corporation was formed by the bank's officers when slow assets by cash forced period several years preceding the bank's close, 11, 1931. Failure of other banks brought on heavy withdrawals. which ultimatedrained $4,000,000 in deposits from the Meyer said. Symons Is Involved Other testimony included the allegation that Luther Symons, former banking commissioner, suggested withholding information regarding the the liquidation, would be for general business The allegation was made by Ferd Meyer. Meyer declared that sworn statement by Symons garding the cash surrender value $100,000 insurance policy Meyer, was the policy added $36.the income during the Ferd Meyer said, though Declaration also was made by Meyer that preferred claims amounting between $6,000 and been paid "because the liquidating agents were sure, their minds, that the claims should preferred.' Mistake Is Conceded you have left only $100.000 to pay claims, what would you say the payment the Cox asked. "Then would say we had made mistake,' Meyer replied. Testimony that the liqudating Ferd Meyer, Kiser Cohn, received $500 monthly each from the Lincoln Company, one their companies, during the period when they also drawing $500 monthsalaries as liquidating agents.

18. June 21, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 21, 1933

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# SECRET FUNDS # IN MEYER-KISER # BANK SOUGHT Garvin Opens Probe After Court Testimony on Hidden Money. Thomas E. Garvin, receiver of the defunct Meyer-Kiser bank, assisted by atorneys and auditors, today is sifting a mass of information regarding affairs of the institution. After a week's session, a hearing before Circuit Judge Earl R. Cox, at which former officials of the bank testified, was adjourned indefinitely late Tuesday. The adjournment was taken on a verbal petition of Garvin, who explained to the court that further investigation was necessary on disclosures revealed by the bank officials. Reveal New Assets Most important of the facts in Garvin's possession are new assets with a book value of $545,000. The assets represent the bank's share in a secret reserve fund created by former officers. Determination of the present value of the new assets and the amount which may be added to the receivership funds will engage Garvin's immediate attention, he said. Form of questioning by William B. Miller and Saul Rabb, attorneys for depositors' groups, throughout the hearing indicates that suits may be instituted to collect on blanket indemnity bonds covering acts of the bank officials. Suits May Be Filed No definite declaration to sue has been made by the attorneys, however, and it is believed that the recess period will be used in studying testimony for preparation of complaints. Association of the defunct bank with the international banking firm of J. P. Morgan & Co. was disclosed by M. S. Cohn, former vice-president, with the declaration that the local institution acted as agent for the Morgan interests in disposing of securities. Securities floated by Morgan were purchased by the bank officials for re-sale to local investors whenever the issues were believed appealing to the bank's customers, Cohn said.

19. June 22, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 22, 1933

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# GARVIN NAMED # TRUST RECEIVER Ex-Judge to Handle Assets in Meyer Fund; Bank to Get Share. Upon agreement between Thomas E. Garvin, Meyer-Kiser bank receiver, and stockholders of the Scl Meyer trust, Garvin was appointed receiver for the trust today by Circuit Judge Earl R. Cox. A recent hearing before Cox developed that the trust holds approximately $938,000 in assets created by the removal of slow assets from the bank. The bank's estimated share of this trust has a book value of approximately $545,000. Bank officials testified the trust assets were pledged as collateral to the Indiana Trust Company for cash loans which were obtained to meet withdrawal demands of Meyer-Kiser depositors, prior to the bank's closing. Included among the trust assets is the common stock of the Smetal Corporation, a company organized to hold title to the bank's Florida properties. Estimated return to the receiver-ship from the Smetal stock realization is approximately $50,000.

20. June 23, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 23, 1933

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# GARVIN HANDLES # PARTNER FUNDS Receiver Named to Control Meyer-Kiser Assets in Pool. Thomas E. Garvin, receiver for the defunct Meyer-Kiser bank, today was appointed receiver, on his petition, for the Meyer & Kiser partnership, comprised of Sol and

21. June 29, 1934 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, June 29, 1934

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The statement was compiled under instruction of Circuit Judge Earl R. Cox and copies are to be mailed to each depositor tonight. It was revealed that the receiver holds assets appraised at $531,211.67, of which $221,994.87 represents assets held as pledges by certain creditors, leaving only $309,216.80 free assets. Liabilities, including $1,196,106.45 in deposits, total $1,635,570.95. Expenses of the receivership, under Mr. Garvin, have totaled $89,311.10. The larger items of disbursement include: Allowance to receiver for services, $8,166.66; salaries of clerks and stenographers, $7,504.27; attorneys' fees, $8,250; auditing fees, $8,614, and investigating fees to determine criminal liability, $3,850. Describing the appointment of auditors and their reports, Mr. Garvin said in letters to depositors: "It developed that prior to the closing of the bank that the officers of the Meyer-Kiser bank had