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INDIANAPOLIS, Oct. Bank Trust company closed its doors Failure of this institution the other here week. They were the and the Postal bank Luther Symons, state banking took charge, withdrawals the last few were responsible for closing the Washington bank. Symons said the Institution capitalized According last report, it had assets
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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.
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AGREEMENT ON BANK RECEIVER SUITS REACHED Cases Will Be Called This Week in Circuit Court by Chamberlin. Armistic day brought cause for celebrating to the thousands of depositors of the City Trust Company and the Washington Bank and Trust Company, for armistice has been reached between AttorneyGeneral James M. Ogden and Luther F. Symons, state banking commissioner, in the bank receivership suits. As a final gesture Monday, Symons filed for receiver for the Postal Station State bank, a City Trust subsidiary, in superior court four, but agreement was reached on the filing by the two departments, both Symons and Ogden explained. The attorney-general will appear in the case and "sign the papers if propertly filed," Ogden asserted today. "The matter of jurisdiction in selection of the courts is not involved," Ogden explained. "That was ruled upon definitely in circuit court Monday." Ogden Wins Point Circuit Judge Harry O. Chamberlin, in taking over the City Trust Company and Washington Bank and Trust Company receivership suits, and overruling Symons' motion to dismiss, held that the attorney-general represents the state in the matter. Ogden and Symons had been at loggerheads for a week over the cases. Symons attempted to have the suits dropped in circuit court and filed in probate and superior court 5. Hearing on the City Trust suit will be in circuit court Wednesday and on the Washington bank suit Friday. Ogden is a director of the City Trust Company. Cases Are Recalled Having scored a victory in circuit court Monday morning, he returned to the courthouse with Symons in the afternoon and had the cases recalled in probate and superior court five. This action was agreed upon following a conference with Governor Harry G. Leslie. Symons, although defeated in circuit court, refused to have his probate and superior court filings dismissed without seeing the Governor. Leslie was reported to have interested himself in seeing that the City Trust suit was taken into superior court five, presided over by Judge James M. Milner. The Times reported that "from a reliable source" it had learned that the Governor had called Symons and told him that if he could do so without embarrassment to withdraw the circuit court suit and take it to Milner. Leslie Denies Report Upon his return to the statehouse Monday afternoon, Leslie vehemently denied that he ever had talked to Symons about the case, either in conference or by phone, and never had suggested either court, judge or receiver. Symons told The Times that Jess Murden, state highway commissioner and sometimes termed "unofficial Governor of Indiana," had talked to him about getting the suit in Milner's court, but Murden immediately denied it, also. Symons never admitted to The Times that the Governor had called. "I am leaving these matters up to the state banking commissioner, in whose integrity I have faith," Leslie said at the Monday conference. "I never have nor never will try to dictate in the matter of receiverships. "The only possible interest I might have is to urge that every possible saving be made for the sake of the depositors and the funds be not expended in excessive fees to receivers and attorneys." Symons, Ogden, and his assistant, Charles F. Werner, were at the conference when this assertion was made. Asked by The Times today why he had refused to dismiss the suits without seeing the Governor, if Leslie was not interested, Symons explained that he had done so in the interest of "common justice." When Symons and Ogden appeared to quash the case in Milner's court, they were rebuked severely.
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BANK RECEIVER TROUBLES GROW Difficulties in Suits Rise Again to Puzzle Ogden. Difficulties that beset receivership against banks last week again today to the action filed Monday by Luther Symons, banking commissioner, against Postal Station State bank, City Trust Company subsidiary. Although it was announced Tuesday that Symons and AttorneyGeneral James M. Ogden were accord on the filing of the Postal bank Ogden today said he would confer with looking toward dismissal of the action and refiling the court, superior court four, where Judge William McMasters presides. Calling the courthouse this morning. Ogden found tered on the file books, could not be found in superior court four, nor in the court's clerk's office. No summons had been
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# OGDEN AND SYMONS # NO LONGER AT ODDS Appear Together to File Petition for Bank Receiver. All trace of friction between Attorney-General James M. Ogden and Luther F. Symons, state banking commissioner, had disappeared this morning, when they appeared at the courthouse together to refile the petition asking appointment of a receiver for the Postal Station State bank which closed its doors Oct. 23. The suit was filed in superior court four where Judge William S. McMaster presides. It was in the same court that the suit originally was filed by Symons without advice of the attorney-general. Hearing was set for Nov. 17.
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a subsidiary of the City Trust Company, closed voluntarily with its parent organization. McMaster found the Postal subsidiary insolvent after hearing Luther F. Symons, state bank examiner, and three witnesses familiar with the smaller bank's affairs Dick Miller, president of the two institutions, stated informally that the Postal Station bank may be reorganized under receivership. Any reorganization prior to appointment of a receiver was found impossible, Miller stated. Liabilities of the smaller bank were listed at $415,913, with assets $62,000 less than liabilities. Deposits totalled $340,000, Symons testified. Accepting receivership of the City Trust Company, Rottger stated today he accepted the appointment without compensation "to show his appreciation for the kindliness of Indianapolis people" toward him. "People of this city have been mighty nice to me, so I thought acceptance of this post would give me an opportunity to show them my appreciation of this kindness. I have always felt that depositors of a defunct bank should receive every dollar that it is possible to give them, and my services will help to keep down some of the expenses which otherwise would be incurred to the financial disadvantages of depositors," he said.
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# CHURCH BACK FUND DRIVE FOR STATE COLLEGE $1,500,000 Campaign for Hanover to Be Started by Presbyterians Immediate survey of Presbyterian churches in the state, preparatory to a $1,500,000 campaign over college, was deci- possibility of reorganization under the receivership. Brown's name figured in press dispatches from Chicago last week relating testimony before the United States senate committee which is investigating alleged irregularities in postoffice leases. The committee had been told Brown had been accorded favoritism in the awards because, it was testified, he claimed a close friendship with Harry S. New, former postmaster-general. Brown ridiculed the charges. Brown resides at 3025 North Meridian street. He declined to make any statement regarding the Postal Station bank receivership. "Brown's appointment will be to the best interest of the trust," McMaster stated.
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RECEIVER FOR POSTAL STATION BANK IS NAMED Raymon D. Brown Put in Charge of Institution by Court. First steps toward liquidation of assets of the Postal Station State bank, closed Oct. 23 with the City Trust Company, parent organization, were being considered today with appointment of Raymond D. Brown, president of the United Postoffice Corporation, as receiver. Brown was appointed Thursday afternoon by Judge William S. McMaster of the superior court four and provided $50,000 bond. At a receivership hearing Monday McMaster found the bank insolvent. Dick Miller, president of City Trust, indicated there might be a
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M. E. church, March 5 and 6. Resolutions conclemning both the personal and corporation income tax bills now before the Indiana general assembly was adopted by the Indianapolis Kiwanis Club at its weekly luncheon Wednesday. The club went on record as believing neither bill will aid materially the property taxpayers and that both will hinder business recovery. Veritas lodge 608 will hold its annual fish fry at 6:30 p. m. Saturday at Veritas temple, Roosevelt avenue and Adams street. Activities and educational work of the Indianapolis fire prevention bureau were outlined to members of the Men's Fellowship Club of the Central universalist church Wednesday night by Harry Davis, bureau inspector. Program for licensing well drillers was decided upon by the Indiana Well Drillers' Association at closing convention session Wednesday at the Lincoln. Officers elected were G. C. Stremmel, La Fountaine, president; C. O. Robertson, Campbellsburg, vice-president; William F. Helms, Chalmers, treasurer, and R. O. Monroe, secretary. Howard Muller was re-elected president of the Hoosier Athletic Club Wednesday night at a board of directors meeting at the Chamber of Commerce. Other officers: John Lyons, first vice-president; O. H. Hendron, second vice-president; Harry Yates, recording secretary; Vere Ransdell, corresponding secretary, and Fred Denny, treasurer. T.P. Burke has been promoted by the S. W. Straus Company to the position of manager of the wholesale division for Indiana, Kentucky and Tennessee, it was announced Wednesday. The Lilliputian Club, an organization of foremen and assistant foremen of Eli Lilly Company, met Wednesday night at the Lincoln. Albert Stump, attorney, spoke and Harold Leamon presided. Dr. Paul Leland Haworth, professor of history at Butler university, spoke at the annual banquet of the Indiana Society of the Sons of American Revolution Wednesday night at the Propylaeum. D-. Fletcher Hodges, Indianapolis, was elected president of the body. Suits on five notes, totaling $285, were filed today in municipal courts one and two by Raymond D. Brown, receiver of the Postal Station State bank.
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DEPOSITORS IN DEFUNCT BANKS HAVE TO WAIT Low Market Values Hinder Liquidation, Claim Hearings Show. Settlements with depositors and nonpreferred creditors of three defunct Indianapolis banks, the Washington Bank and Trust Company, the City Trust Company and State Savings and Trust Company appeared far off today as hearings on. preferred claims against the banks were continued in circuit court. Another bank now in receivership, the Postal Station State bank, is expected to pay dollar for dollar to depositors and creditors within a few days through arrangements between the receiver, Raymond D. Brown and superior court four, in which the case is filed. Judge Harry O. Chamberlin, who is hearing petitions for preferred claims against the three banks, has announced the banks do not have sufficient funds to pay preferred claims already allowed. More than one hundred such claims are awaiting court action, it is saíd. Possibility that all payments to depositors of the three banks will be withheld until market values increase to enable the receivers to secure better prices on real estate holdings involved also has been announced. Receivers in the receiverships now in circuit court are Eben H. Wolcott, State Savings and Trust Company, Curtis H. Rottger, the City Trust Company and Brandt C. Downey, the Washington Bank and Trust Company.
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POSTAL BANK IS PAYING UP 40 Per Cent Dividend Is Sent Depositors. First dividend payment of 40 per cent to depositors of the defunct Postal Station State bank was ordered today by Judge Clarence E. Weir of superior court four. The order was issued on a petition filed by Elton F. Leffler, attorney for the receiver, Raymond D. Brown, United Post Offices Corporation president. Division with depositors has been expected for sometime, it having been announced previously the bank would pay depositors in full. It is reported this was made impossible, for the present, when a move to sell the bank did not mature. The bank was closed Oct. 23, 1930 and a receiver was appointed Nov. 17. It is said the bank has approximately $194,000 in small notes outstanding and a $23,000 preferred claim with the defunct City Trust Company, of which the postal bank was a subsidiary. It is probable other dividends will be paid depositors later. Brown announced that checks for the dividend are being mailed depositors today and probably all will be sent out by Monday.
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$122,424 in Dividends Ordered Paid to Depositors. ASSETS IN READY MONEY Authorization of per cent. dividend to depositors in the Postal tion State Bank, which suspended operatoins October 21, 1930, was granted Saturday by Judge Weir, of superior Raymond Brown. receiver for the bank. Judge Weir signed an order permitting the payment of dividends to depositors. Dividend checks will be mailed Saturday except few whose deposits in question. Assets of the bank at the time closed chiefly of deposits Continued on Page
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charge of arrangements DR. A. H. KENNA TO ADDRESS DIVIDENDS MAILED INDIANA CENTRAL GRADUATES BY BANK RECEIVER Commencement Exercises Will Be Held June 3 for Class of 52-Senior Week Program Ar- ranged. Dr. Alpha Hunter Kenna, pastor of the Roberts Park M. E. Church, will give the address at Indiana Central college June 3. Commencement activities will open with the presentation of the "Charm School. play by the class, in auditorium Friday, night, The play directed by Miss Weimar, head of the department. will be repeated June The Rev. Edmond Kerlin, pastor of the First Evangelical Church Indianapolis, will preach the baccaSunday May 31, will be held. Coeds will the annual spring pageant the Tuesday Pauline Riley of Milford and Miss Bertha Lammers of Indianapolis will have the The of alumni of the be at with a College which will be by session and Officers will be Stoneburner of Mr. and Mrs R. Kek of Indianapolis are by Hillary Balley.) treasurer and secretary, respectively. will be held the morning of June 3. redegrees approximately thirty will the Prof. M. Stonecipher is in Dividends totaling 40 per cent were declared yesterday for depositors and creditors of the defunct Postal tion State bank by Raymond D. receiver. Judge Clarence E. Weir of Superior court, Room the dividend. Checks were mailed to the deposicreditors. The receiver that additional dividends will be declared the bank converted into cash. Plans to reopen the institution were favor of the dividend system The bank was closed Oct. 21, 1930. by the state departsubsidiary of the defunct City Company totaled $315,000. distribution yesterday totaled The receiver also had off an additional of notes due from which the the had the bank. Assets institution consist chiefly of payable.
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E. F. LEFFLER 709 Meyer Kiser Bk. Bldg. Li. 6969. # SHERIFF'S SALE By virtue of a certified copy of a decree to me directed from the Clerk of the Superior Court of Marion County, Indiana, in cause No. A-63749, wherein Raymond D. Brown, Receiver of the Postal Station State Bank, Plaintiff and Edward B. Holtam, Alma M. Holtam, et al Defendants requiring me to make the sum of Thirty-eight Hundred Seventy-four Dollars and Eighty-six Cents ($3874.86), as provided for in said decree, with interest and costs. I will expose at public sale to the highest bidder, on # SATURDAY, THE 7TH DAY OF # MAY, 1932, between the hours of 10 o'clock A. M. and 4 o'clock P. M. of said day, at the door of the Court House of Marion County, Indiana, the rents and profits for a term not exceeding seven years, of the following real estate in Marion County, Indiana: Lot No. thirty-three (33) in Eliza T. Edwards Northwestern Park Addition, an addition to the City of Indian-apolis, as per plat thereof in plat book 14, page 7, in the office of the Recorder of Marion County, Indiana. If such rents and profits will not sell for a sufficent sum to satisfy said decree with interest and costs, I will, at the time and place, expose to public sale the fee simple of said real estate, or so much thereof as may be sufficient to discharge said decree. Said sale will be made without relief from valuation or appraisement laws. CHARLES L. SUMNER. Sheriff of Marion County.
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E. F. LEFFLER 709 Meyer Kiser Bk. Bldg. Li. 6969. SHERIFF'S SALE By virtue of a certified copy of a decree to me directed from the Clerk of the Superior Court of Marion County, Indiana, in cause No. A-63749, wherein Raymond D. Brown. Receiver of the Postal Station State Bank. Plaintiff and Edward B. Holtam. Alma M. Holtam. et al Defendants requiring me to make the sum of Thirtyeight Hundred Seventy-four Dollars and Fightv-six Cents ($3874.86). as provided for in said decree, with interest and costs. I will expose at public sale to the highest bidder. on SATURDAY. THE 7TH DAY OF MAY, 1932, between the hours of 10 o'clock A. M. and 4 o'clock P. M. of said day, at the door of the Court House of Marion County, Indiana, the rents and profits for a term not exceeding seven years, of the following real estate in Marion County. Indiana: Lot No. thirty-three (33) in Eliza T. Edwards Northwestern Park Addition. an addition to the City of Indianapolis, as per plat thereof in plat book 14, page 7. in the office of the Recorder of Marion County, Indiana. If such rents and profits will not sell for a sufficent sum to satisfy said decree with interest and costs. I will, at the time and place, expose to public sale the fee simple of said real estate, or so much thereof as may be sufficient to discharge said decree. Said sale will be made without relief from valuation or appraisement laws. CHARLES L. SUMNER, Sheriff of Marion County.
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Closed Bank Head Admits Loaning Without Security Testimony that officials of the deended a hearing in a suit brought funct City Trust Company, prior to by Brown against Curtis H. Rotits collapse, made huge loans to a ger, City Trust Company receiver. private enterprise in which they Cox ordered attorneys to file were interested, without requiring briefs, and said he would fix a date security, was in hands of. Circuit for final arguments in the case Judge Earl R. Cox today. within a few days. Dick Miller, City Trust president, "As a matter of fact wasn't the chief witness at Wednesday's probe City Trust holding the bag for $159,of defunct banks, admitted the bank 000 for which Brown had no liacarried a loan of $159,000 on its bility at all until a settlement in books in 1927. April, 1927?" Cox asked Miller. The money was advanced to "Yes, that is right," Miller replied. finance construction of the Postal Station bank building in this city, according to testimony. Cox quizzed Miller, concerning 20% Discount Sale! deals with Raymond D. Brown, postal station bank receiver, in promotion and sale of stock for erection KAHN of the local bui'ding and in negoMADE TO ORDER CLOTHES tinlions commerning similar post offine bu in other cities. Second Floor Kahn Bldg. The bank president's testimony
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# DIVIDEND PAID # DEPOSITORS OF # DEFUNCT BANK Postal Station Distributes $15,184 With Approval of Judge Weir. Approximately 1,700 depositors of the Postal Station State Bank, which closed in October, 1930, today were receiving $15,184.71 in second dividends from Raymond D. Brown, receiver, with approval of Superior Judge Clarence E. Weir. The second dividend is based on 5 per cent of the original claims and brings to 45 per cent the total amount paid to depositors. A 40 per cent dividend, aggregating $122,090.04, was paid by Brown approximately a year after the bank closed. In his report to depositors, Brown lists in detail the current financial condition of the receivership including the remainder of the unliqui-