5923. State Savings & Trust Company (Indianapolis, IN)

Bank Information

Episode Type
Suspension → Closure
Bank Type
trust company
Start Date
April 25, 1930
Location
Indianapolis, Indiana (39.768, -86.158)

Metadata

Model
gpt-5-mini
Short Digest
e6efd12d

Response Measures

None

Description

The State Savings & Trust Company was closed by its board on April 25, 1930 and placed into liquidation; a receiver was sought and appointed soon after. Coverage thereafter documents receivership actions, sale of the safe deposit vault, lawsuits and grand-jury probes. There is no clear contemporaneous description of a depositor run triggering the initial closing (initial accounts state the board closed due to liquidity and shrinkage of deposits and called it voluntary liquidation). Later articles discuss legal actions and investigations.

Events (4)
1. April 25, 1930 Suspension
Cause
Voluntary Liquidation
Cause Details
Board of directors closed the bank and began voluntary liquidation citing liquidity problems, shrinkage of deposits, inability to market real estate holdings and depreciation of farm values.
Newspaper Excerpt
Doors of the State Savings and Trust Company ... were closed today on order of the board of directors ... Decision to close the doors of the institution was reached Friday afternoon
Source
newspapers
2. April 28, 1930 Receivership
Newspaper Excerpt
Petition for a receiver for the State Savings and Trust Company was filed today in Marion circuit court by Luther F. Symons, state banking commissioner ... The bank was closed Saturday on order of the board of directors ... Hearing for appointment of the receiver will be held by Judge Harry O. Chamberlin Saturday.
Source
newspapers
3. May 15, 1930 Other
Newspaper Excerpt
The safe deposit vault of the State Savings and Trust Company, closed recently, has been sold to the Bankers Trust Safe Deposit Company, Eben H. Wolcott, receiver of the former company, announced today.
Source
newspapers
4. April 24, 1933 Other
Newspaper Excerpt
Breaking like a bombshell ... disclosure of sensational developments in affairs of the defunct State Savings and Trust Company led to an order by Circuit Judge Earl R. Cox of a special hearing ... the hearing may be preliminary to a grand jury probe.
Source
newspapers

Newspaper Articles (22)
1. April 26, 1930 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, April 26, 1930

Click image to open full size in new tab

Article Text

STATE SAVINGS BANK CLOSES; TO LIQUIDATE 8,000 Depositors Affected as Doors Shut on City Institution. Doors of the State Savings and Trust Company, 123 East Market street, were closed today on order of the board of directors, as state banking department officials started liquidation of the company's assets. Decision to close the doors of the institution was reached Friday afternoon, affecting 8,000 depositors, according to Scott R. Brewer, president. Brewer, although making no definite comment on the possibility of full payment of claims, said with proper management payment might be made in full. Police Assigned to Bank "The reason for closing, in the mind of the board, was the matter of liquidity rather than solvency, especially as this was affected by shrinkage of deposits," Brewer stated. Police were asigned to the bank this morning as a protective measure. Thomas D. Barr, assistant state banking commissioner, said the inventory of assets and liabilities was started today. This will be followed by court action for the appointment of a receiver next week. Resolution Is Adopted Directors adopted a resolution stating that inability to market real estate holdings, depreciation of farm values and shrinkage of deposits made it expedient to go into voluntary liquidation in order "to save its depositors and stockholders from loss." When the closing order came, the financial situation was: Deposits, $1,410,000; capital stock, $375,000; surplus and reserves, $48,500, Brewer said. Samuel P. Good, state bank examiner, assisted by K. G. Inwood and J. W. Parrett, examiners, is working on the bank's books. The company moved into the Market street location several months ago, taking over the property formerly occupied by the J. F. Wild & Co. State bank, which crashed three years ago.

2. April 28, 1930 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, April 28, 1930

Click image to open full size in new tab

Article Text

SEEK RECEIVER FOR STATE SAVINGS BANK Petition Is Filed in Circuit Court by Indiana Commissioner. Petition for a receiver for the State Savings and Trust Company was filed today in Marion circuit court by Luther F. Symons, state banking commissioner, through Attorney-General James M. Ogden. The bank was closed Saturday on order of the board of directors, and Scott R. Brewer, president, issued a statement saying closing was a matter of liquidity rather than solvency. Eight thousand depositors were affected by the move. Assets of the bank are listed at $1,400,000 in deposits and $400,000 in other properties. Hearing for appointment of the receiver will be held by Judge Harry O. Chamberlin Saturday.

3. May 15, 1930 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 15, 1930

Click image to open full size in new tab

Article Text

CLOSED BANK'S SAFE DEPOSIT VAULT SOLD State Savings Boxes Acquired by Bankers Trust Subsidiary. The safe deposit vault of the State Savings and Trust Company, closed recently, has been sold to the Bankers Trust Safe Deposit Company, Eben H. Wolcott, receiver of the former company, announced today. Various sections of the safe deposit boxes, each weighing two and one-half tons, will be removed today and Friday without disturbing contents of boxes. The Bankers Trust Safe Deposit Company, subsidiary of the Bankers Trust Company, Pennsylvania and Ohio streets, will continue service to safe deposit box holders of the closed bank without additional charge until expiration of leases of box holders.

4. July 8, 1930 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, July 8, 1930

Click image to open full size in new tab

Article Text

# BANK RECEIVER SUED Casualty Company Asks $35,000 on Collateral. Suit asking the right to retain and cash notes valued at more than $35,000, given as collateral by the State Savings and Trust Company, was filed in federal court today by the Metropolitan Casualty Insurance Company, New York, against Eben H. Wolcott, receiver for the bank. The notes, with face value of $50,000, the complaint states, were given by the bank in January, 1929, as collateral for a $100,000 bond to obtain designation as a depository for the state of Indiana. The casualty company asks the right to cash the notes to cover any losses resulting from the bank closing its doors April 25.

5. September 10, 1930 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, September 10, 1930

Click image to open full size in new tab

Article Text

# BRING SUIT TO MAKE # STOCKHOLDERS LIABLE State Savings and Trust Depositors Also Ask Receiver Collector. Suit by creditor-depositors of the State Savings and Trust Company to make stockholders of the insti- tution liable in the amounts of their stock has been filed in superior court two. More than five hundred depositors are represented in the action. Request that a receiver be appointeed to collect amounts due the depositors was made in the complaint, plaintiffs in which are Carl J. Winkler, Mrs. Pearl Winkler, Mrs. Joseph M. Toole and George Pyritz.

6. October 28, 1930 Muncie Evening Press Muncie, IN
Article from Muncie Evening Press, October 28, 1930

Click image to open full size in new tab

Article Text

BANK FAILS INDIANAPOLIS Heavy Run Closes Third Oct. of the Washington Bank and Trust Company closed the institution today and placed its affairs the hands of the state banking partment. Heavy withdrawals yesterday caused the closing, was announced this morning by Luther Symons, banking The institution was capitalized and had surplus of Barr Assumes Charge. Thomas Barr, assistant state banking took personal charge of the institution. of the bank are Edward Morris, president; Clifton Fields, Francis Payne, Pearcy, secretary; Calvin Clymer, assistsecretary. The bank was the third in Indianapolis to be closed in the past week. Others City Trust Company and the State Savings and Trust Company.

7. November 10, 1930 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, November 10, 1930

Click image to open full size in new tab

Article Text

Jess Murden, state highway commissioner and sometimes termed "unofficial Governor of Indiana." Murden denied he had interested himself in the City Trust suit, but Symons previously had confided that Murden had suggested getting the suit before Milner if possible. This also was said to have been suggested by Governor Harry G. Leslie in a telephone conversation with Symons last week. McTurnan, who appeared as Symons' counsel today, is known to have conferred with Thomas D. Barr, Symons' assistant, at Barr's home Friday night. Barr originally was reported to be slated for one of the receiverships, but vigorously denied any such intention. He has been with the department many years and was chief before Symons was appointed by former Governor Ed Jackson. ### Symons' Term Ended Symons' term expired Oct. 1, and Barr was reported in line for the chieftainship again, but Leslie, following his policy, neither reappointed Symons nor appointed any one else to the place. Under these circumstances, the present office holder stays on without reappointment. Affirming jurisdiction of probate court in the appointment of receivers, a jurisdiction questioned by Ogden, Probate Judge Mahlon E. Bash issued a lengthy statement today in defense of his position. The statement cites statutory provisions as well as decisions in superior courts throughout the state. Among them is listed the receivership action against the Tuxedo State bank, which was prosecuted through the probate court and in which Attorney-General Ogden represented a creditor and obtained a judgment on a claim. ### Another Suit Entered Ogden is a director of the defunct City Trust Company. Erve Hanford, attorney, 511 Meyer-Kiser Bank building, contended today that he has a suit for receiver filed in circuit court against the City Trust Company, which takes priority over all of them. It was filed Oct. 29 by Hanford as guardian for Richard Hinton Menges, who had $428.25 in the City Trust bank when it closed. Hanford contends that the state banking department has no exclusive right to ask for a receiver and he wants his suit pressed. Should Barr be given a receivership, he would not be the first graduate of the department to receive one. Two former examiners are receivers in bank suits now pending in the supreme court, the record discloses. ### Parker Is Rebuffed One is Morris E. Stults, receiver for the Studebaker State bank, Bluffton, and the Lynn Grove bank in Wells county, and the other is Kenneth Kunkle, receiver for the Poneto State bank. When the State Savings and Trust bank closed here, Charles R. Parker, clerk in the banking department, is reported to have gone to Governor Leslie to ask if it would be all right for him to be made receiver. The Governor is reported to have said "no," in no uncertain way.

8. February 1, 1933 The Indianapolis News Indianapolis, IN
Article from The Indianapolis News, February 1, 1933

Click image to open full size in new tab

Article Text

JUDGE STUDIES BANK CASE; ANOTHER HEARD Decision in Suit Against Downey to Be Made Friday. $600 INVOLVED IN SECOND Judge Earl R. Cox of the Marion circuit court Wednesdaay was considering in petition brought against Brandt Downey, receiver for the defunct Washington Bank Company. Hearing on the brought against Downey the Cruse Realty Company and asking for was held Tuesday Judge Cox said he would rule Friday on the against the closed State Savings and Trust brought by Arthur Lynn and Charles Hasse, was heard by Cox The Cruse company alleges it bought the department of the defunct, bank with the privilege of renewing certain fire insurance policies but that many of the policies were reby Mr. Downey in a company of which he is treasurer Hasse and Lynn assert they de$600 after the State Savings bank April 25, 1930 the day the bank was closed. The money was taken to the bank to placed in deposit vault for safe keeping until the following ing, according to the petition The safety vault department was closed, according to counsel for the plaintiffs and the cashier induced the plaintiffs to an account and deposit the $600 with the bank The suit the money was held only in trust by the bank. Lynn, who was the principal witsaid he talked with Scott Brewer, president of the bank, following the closing of the trust company, and that on "two occasions Brewer said the money he had on deposit in the bank would be paid to him. Later in third conference with Brewer, Lynn said Brewer told him he no longer had to with the bank, but that all the business was being taken care of by the receiver. Lynn said in one of the conferences he was ordered out of Fred Dickson, of the Indiana Trust testified as to of the closing of the State Savings and Trust Company. Freight of the New York Cen tral System last week cars, the

9. April 22, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, April 22, 1933

Click image to open full size in new tab

Article Text

AWAIT BANK REPORTS Receivers Fail to Comply With Order of Judge Cox. Despite an order by Circuit Judge Earl R. Cox for full and final reports on receiverships of two defunct Indianapolis banks by noon today, none was filed. The order was issued ten days ago to Brandt C. Downey, former receiver of the Washington Bank and Trust Company, and Eben Wolcott, former receiver of the State Savings and Trust Company.

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

Click image to open full size in new tab

Article Text

AWAIT BANK REPORTS Receivers Fail to Comply With Order of Judge Cox. Despite an order by Circuit Judge Earl R. Cox for full and final ports of two funct banks by noon today, none was filed. The order was issued ten days ago to Brandt Downey, former ceiver of the Washington Bank and Trust Company, and Eben Wolcott, the State Savings and Trust Company.

11. April 24, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, April 24, 1933

Click image to open full size in new tab

Article Text

State Savings and Trust Officials Must Answer to Judge Cox on Transactions Revealed by Investigation. CLEANUP INQUIRY IS ORDERED Roosevelt Building Deal and Swapping of Farm Lands Under Fire; Many to Be Subpenaed. BY JAMES CARVIN Breaking like a bombshell in a nearly deserted courtroom this morning, disclosure of sensational developments in affairs of the defunct State Savings and Trust Company led to an order by Circuit Judge Earl R. Cox of a special hearing for further airing of transactions by former officials of the bank and the receiver. Cox said the hearing may be preliminary to a grand jury probe. At a hearing to obtain permission for sale of property, R. Evans and K. Hamilton, representing the depositors' committee, disclosed knowledge of transactions involving hundreds of thousands of dollars in the bank's funds. The information disclosed by the representatives paralBANK QUESTIONS lels facts obtained by Co xin private investigation begun COURT'S POWER six weeks ago, he said. Cox ordered Homer Elliott cessor to Eben Wolcott as receiver, prepare petition for court Meyer-Kiser Attorney Puts der to subpena witnesses for investigation which Cox termed the Jurisdiction Issue to Fore "preliminary to grand jury investigation. Will Go to Bottom "If officers and officials of the bank money belonging to the they come in tell what became Cox declared will endeavor to get to the bottom receivership. and don't care who Principal disclosure by Hamilton concerned stock transaction involving the Roosevelt building, Illinois which and Washington streets, in 600 common stock shares the Libby Realty Cc. were obtained by the State Property Co., real the bank. The stock obtained by trade of tion, farm lands and other consideratained 000 worth by Cox. information addition $125,- obof named from Chicago real estate operator assumed Frankenstein. No Record Kept, Is Charge According information from both Cox and no record of the kept Records fthe the reveal bank. however that $19,000 the funds principal and interest the paid notes in Later, Wolcott the claim was off by and abandoned. According to ment representing half $7,500, payto Klein Kuhn, management the agents was refunded property bank, but no record exist of Kirk McKinney president of and former of official the was manager the realty Hamilton said. Judge said Voices Euspicion Cox he had State ment of Property the bank payThe funds derived later traced to number local banks of payCox the from the inforyou given me and what have collected myself there every evidence which will bear much Cox told and our conversation for about $38,000 which should be the funds of the bank It's young which belongs to the we should see that they get it if they enttled Cox revealed that has records and information of private after he lock box, where was placed encountered facts" his private investigation. Elliot He invited Hamilton over the information with his wish had known that these gentlemen were in possession of Cox told and Evans. "It would have Hamilton saved me many hours' work.' Elliott told the court he had no of the disclosures until they were brought his attention by the depositors' committee this

12. April 25, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, April 25, 1933

Click image to open full size in new tab

Article Text

Letter to Wilson From Judge Cox Charges 'Assets Sequestered or Abstracted From General Fund.' FALSE STATEMENTS ARE ALLEGED Criminal Judge Frank P. Baker Pledges Co-operation; Officers of Failed Institution to Be Grilled. BY JAMES A. CARVIN Times Staff Writer Affairs of the defunct State Savings and Trust Company and its receivership under Eben Wolcott in the last ten years will be investigated by the Marion county grand jury, Herbert E. Wilson, Marion county prosecutor, declared today. Wilson's announcement followed receipt of a letter from Circuit Judge Earl R. Cox, charging that "assets which should have been in the receivership either have been sequestered or abstracted from the general fund which the receiver took over."

13. April 26, 1933 The Indianapolis News Indianapolis, IN
Article from The Indianapolis News, April 26, 1933

Click image to open full size in new tab

Article Text

AUTHORITY GIVEN FOR STATE SAVINGS QUIZ Continued from Page 1, Part 1 I. Hamilton accountant for the decommittee Judge Cox would be presented to the prosecutor and court judge for use in either direct grand jury investigation of the Judge had in his possession Wednesday canceled checks which, he said, are part of the evigathered by Hamilton. large paid by the returned in part but without of One of the checks for $7,500 was dated December 28, 1928, and made payable to Klein and property was indorsed with the words "Pay to State Savings and Trust and was signed "Klein & Kuhn, by George Kuhn. further reads Credit to the real check for $7,500, dated 31, 1928, made payable to the company to Property Manageand was indorsed by the According to the by Hamilton, the judge said, the two checks paid by the trust when sold lease on ground now occupied by the Circle Cox said that his information that to 1930, the State Company subsidiary of the bank, paid to the bank's estate department the sum of 569 in commisand sum of $4,250 alleged to been paid departments individuals of the bank Another $4,000 which records indicate, Hamilton, paid to George E. Brewer, father Brewer, president of the for some transaction the Roosevelt building, in which bank owned stock, will be Judge Cox said. The receiver, according to Judge Cox, has full authority to call authority the court he pleases. The judge added, however, that he expected to be sought to some the advanced by infor Elliott's for authority in part, that by the committee "made it parent need for inquiry determine whether former officer employe the trust recelved money or therefrom not in conpermitted to Judge that his court in every way with Judge phase of the cirinvestigation of defunct affairs might come under evidence to presented Mrs. Broo concern alleged failure State Savings officials carry the of the bank and on as liability 000 to Chicago bank, Judge Cox

14. April 27, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, April 27, 1933

Click image to open full size in new tab

Article Text

# WILSON OPENS # PROBE OF BANK Personal Investigation Will Be Made Into Affairs of State Savings. Following a conference Wednesday at which records of the defunct State Savings and Trust Company were inspected, Prosecutor Herbert E. Wilson announced today that he would conduct a personal probe of charges brought by Circuit Judge Earl R. Cox regarding the bank and its receivership. Cox said today that additional records would be turned over to Criminal Judge Frank P. Baker Friday. It is expected that Baker will summon the grand jury and request an investigation. Letters written to Baker and Wilson by Cox charged irregularities in handling of the bank's funds and followed disclosures to Cox by K. I. Hamilton, auditor for the depositors' committee. Wilson was closeted with Cox and Mrs. Ida Broo, accountant, who audited the records and uncovered information regarding statements given by bank officers to the state banking department. It was understood that Mrs. Broo discussed with Wilson a series of notes totaling $125,000 which were not listed as liabilities of the bank in statements to examiners. Information regarding a sum of $40,000 on deposit in the Fletcher American National bank also was disclosed by Mrs. Broo. It is charged that the funds were carried as an asset of the State Savings although, in reality, a liability of a subsidiary concern. Other charges made by representatives of a depositors' committee relate to refunded commissions and an alleged deal in stock of the Roosevelt building, Illinois and Washington streets. Special hearing in open court of the charges from the depositors will be conducted Wednesday by Cox. Witnesses will be subpenaed for questioning regarding the commissions and an abandonment of funds by Eben Wolcott, former bank receiver.

15. April 27, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, April 27, 1933

Click image to open full size in new tab

Article Text

OPENS PROBE OF BANK Personal Investigation Will Be Made Into Affairs of State Savings. Following conference Wednesday which records of the defunct State Savings and Trust Company were inspected, Prosecutor Herbert Wilson today that would conduct personal probe charges brought by Circuit Judge Earl Cox regarding the bank Cox said that additional records would over Baker day that Baker will the grand jury and request an Baker Wilby Cox in handling the funds and followed Cox by Hamilton, auditor for the depositors' committee Wilson was closeted with Cox and Mrs. Ida Broo, accountant, who dited the records and uncovered formation regarding statements given by bank officers to the state understood that Mrs. Broo Wilson series $125,000 which were not listed liabilities of the bank Information $40,000 on deposit the Fletcher American National was disclosed Mrs. Broo charged that the funds carried as the State although, in reality, liability of subsidiary concern. Other charges made by representatives depositors committee relate to refunded commissions and alleged deal stock the Roosevelt building, Illinois and streets. Special open court charges the will conducted Cox. Witnesses will be subpenaed for questioning regarding sions abandonment funds Eben Wolcott, former bank receiver.

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

Click image to open full size in new tab

Article Text

# COX TO RENEW STATE SAVINGS BANK INQUIRY Ex-Officials Subpenaed to Appear Today Before Circuit Judge. Further investigation of affairs of the defunct State Savings and Trust Company and its receivership was to be held this afternoon in a special hearing before Circuit Judge Earl R. Cox. The hearing was delayed this forenoon due to another bank hearing. Former officials of the bank were subpenaed Tuesday by Homer Elliott, present receiver, on order of Cox, for questioning regarding real estate transactions uncovered by an audit conducted by a depositors' committee. Scott Brewer, former president of the bank and now of Louisville, appeared in court today. E. Kirk McKinney, works board president, and George E. Brewer, father of the bank president, also were present. # Wolcott Not Subpenaed Eben Wolcott, former bank receiver, also was expected to appear. He was not included on the list of witnesses supenaed by Elliott. Today's hearing was arranged by Cox after K. I. Hamilton, accountant, who audited the bank records, and R. D. Evans, representing the depositors, appeared in court more than a week ago to disclose information, which they alleged showed questionable real estate transactions. Testimony at the hearing will be sent to Prosecutor Herbert E. Wilson, who is conducting a personal investigation of records turned over to him by Cox last week. # Wilson in Washington It is expected that Oscar Hagemier, grand jury deputy prosecutor, was to be in the courtroom during the questioning. Wilson, who now is in Washington, had several conferences last week with Cox and Mrs. Ida Broo, court auditor of the bank's records. Transactions involved in transfer of stock in the Roosevelt building,

17. May 20, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 20, 1933

Click image to open full size in new tab

Article Text

# HUGE FRAUD IS LAID TO DEFUNCT BANK OFFICERS $1,750,000 Loss to Patrons of Washington Trust Is Held Criminal Act. (Continued From Page One) the directors knew of the acts 'purged' Morris?" Miller asked. "No, but in my opinion I thought that there was a fine point to be decided as to whether the time of giving notice of default had not expired with the knowledge of the directors, even before the bank went into receivership." Morris 'Needed the Money' Conder then corroborated Downey's testimony regarding an admission by Morris that he had released mortgages totaling $70,000. "We (Conder and Downey) asked him why he did it, and he replied, 'I had to, because I needed the money," Conder said. "I told him that he must make restitution," Conder continued. "I thought it was better to have a bird in the hand. I knew he had his home, which was valued at $125,000 and, at our suggestion, he deeded it to the trust." At conclusion of Conder's testimony, a general discussion followed regarding the possibility of collecting on the bonds. Cox announced at the conclusion of the hearing that he would order suit immediately upon receipt of information from the attorneys regarding legal points. Losses Pass Million In a summary handed to Cox during the hearing the auditors listed acts of the officers and directors, with the note that losses specifically accounted for totaled $1,114,261.25. Other losses "not specifically assigned" amount to $636,831.16, bringing the total loss to $1,751,092.41. Among the charges are: "Permitting president to borrow for himself and corporations in which he was interested and to give worthless paper, $48,565.02. "Permitting the president to sell worthless paper to the bank, $154,377.63. "Permitting the president to sell worthless paper to the bank, $47,072.42. Relative Borrows Money "Permitting loans to corporations in which directors were interested and accepting worthless paper, $375,395.31. "Permitting relatives of the president (Irvin Morris, a brother) to borrow for himself and for a corporation in which he was interested and to give worthless paper, $45,840.76. "Authorizing dividends to be paid contrary to law, $48,000." Other acts for which specific losses were not assigned include: "Carrying bad notes at face value. "Omission of liabilities from the records. "Permitting officers to pledge assets twice as collateral." Reveals Large Payment Downey also was questioned about a specific act during his term of receivership, in which payment of a large sum of money had been made to the Fletcher American National bank to release collateral held on a loan. In his final report, submitted recently, Downey explained that the payment was made because it was his opinion that the collateral was of greater value than the amount of the loan. He admitted from the stand that no court authority had been given for the payment. Downey also declared that Scott Brewer, former president of the State Savings and Trust Company, owes a personal note for $17,000 to the Washington bank. Brewer later was connected with the State Savings and Trust Company, also defunct, and now is associated with a Louisville bank.

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

Click image to open full size in new tab

Article Text

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)

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

Click image to open full size in new tab

Article Text

# 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.

20. May 24, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, May 24, 1933

Click image to open full size in new tab

Article Text

# JURY PROBE OF # STATE SAVINGS # BANK STARTED Acts of Closed Organization Chiefs Are Put Under Scrutiny. Grand jury investigation of affairs of the defunct State Savings and Trust Company began today with two acts by former officers under scrutiny. Two witnesses, Homer Elliott, receiver of the bank, and Miss Catherine Holland, his employe, were subpenaed for the grand jury hearing. A $40,000 deposit at the Fletcher American National bank carried as an asset of the State Savings and Trust, and called statements to the state banking department will be investigated by the grand jury, Prosecutor Herbert E Wilson said after a conference with Oscar Hagemier, grand jury deputy. Wilson said that, apparently, the $40,000 was carried as a bank as-

21. June 17, 1933 The Indianapolis Star Indianapolis, IN
Article from The Indianapolis Star, June 17, 1933

Click image to open full size in new tab

Article Text

Liquidation Report Ordered CONCLUDED FROM PAGE ONE. note or security and the loans were offset April 1933, meeting of the board and charged the in the bank of the partnership with the notation that mistake had been made in taking the money from funds of the Insolvent When Closed. The bank when was closed by the state banking department, Mr. Garvin's definition of insolvency, to meet curobligations, is accepted. The liquidating agents, Mr. Cohn, Ferd Meyer Kiser, paid out bank than upon Symons, then although other claims totaling 000 were pending which were not The liquidating agents sold numerthe bank much below assets book decrease the bank and the same time decrease liabilities in the same amount Instead of profit, as shown the liquidating agents, the bank actually operated loss approximately during the liquidation includwhich Ferd Meyer tended should be charged to capital account and not operation. agents operated profit approximately $30,000. Run on Bank Blamed, run on the bank following the forced closing State Savings and Trust Company was given as the cause for the closing of the institution. Ferd Meyer, Kiser and Mr. monthly salary $500 from the Lincoln Loan Company, small loan company owned the Corporaacting as bank month and while the Kiser which owned common stock of the loan concern, in receivership. Assets Concerns Assets of Smetal Co. and Sol Meyer Et Trust. secret organized by bank officers and totaled The entitled worth of these hidden although record of the bank's the books Meyer these assets were "hidden purposely by directors of the bank form for the protection depositors the bank The liquidating agents, all of whom stockholders bank, action to collect stockholders' liability for though, according Ferd represented the depositors. Ferd Meyer agreed pay his stockholder's liability the best ability event judgment stockholders' liability obtained. Insurance Policy Asked. A $100,000 policy Sol Meyer, cashed for $35,500 before the bank was closed, was carried by the liquidating agents as an operating profit, contribution to the the bank During the period total worth bank assets written off the books as worthless assets. In ordering the report on operation the liquidating agents, Judge Cox that had body handled the liquidating agents. want to know what you fellows with and where went anything about it in your report to this Paul Davis, attorney for the agents and former bank protested that preparation such port would "take lot of time. Judge Questions Witness. "That's all have left in this trust. There appears to be little or no money for depositors,' the judge Judge questioned the witness regarding payment of the $6,000 in preferred claims. could you pay this money without first having the aggreamount claims bethe felt doubt but that claims preferred, replied. have left only $100,000 to pay $150,000 worth preferred claims now these $6,000 of claims?" the judge queried. would say that we made mistake in paying them," the witness The claims were paid out of funds of the bank. Cites Lack of Cash. The court also asked: you had liquidated the bank immediately after was wouldn't there have been more money for depositors?" witness replied: that were pledged for bank loans worth more today than they were worth testified that the bank bank closed cause felt useless borrow more and cause the bank. of cash forced the bank by Meyer said that the bank closed. He

22. February 21, 1934 The Richmond Item Richmond, IN
Article from The Richmond Item, February 21, 1934

Click image to open full size in new tab

Article Text

FOUR OFFICERS OF INDIANAPOLIS BANK INDICTED Affidavits Charging Criminal Actions Signed by Bank Receiver INDIANAPOLIS, Feb. 20. (P) Affidavits charging four officials of the defunct Meyer-Kiser bank with criminal actions were presented today to Prosecuting Attorney Herbert E. Wilson by Alvah J. Rucker, special investigator for the circuit court. The affidavits were signed by Thomas Garvin, receiver for the closed bank. The officials named were the president, Sol Meyer, and three vice presidents, Julian J. Kiser, Melvin Cohen and Fred S. Meyer. The affidavits were first placed before Judge P. Baker of the criminal court. Wilson, notified that the affivavits had been prepared, said: "It has not been the spirit of our lawmakers to have the prosecutor file affidavits when the grand jury is in session. The matter is of such grave importance I think it should go before the grand jury. Rucker reported to Circuit Judge Earl R. Cox earlier in the day that he had found ample evidence in the records the bank for prosecution of the officials on felony charges. Rucker at the direction of Judge Cox has been making an investigation of the affairs of several closed banks here including the City Trust, the Washington Bank and Trust and the State Savings and Trust. In his report to Judge Cox Rucker advanced the theory that the active officers of the Meyer-Kiser bank knew of its insolvency before the institution was closed and despite this knowledge continued to accept deposits.