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Bank Receiver Sought BM Times Special SOUTH BEND, Ind., Oct. 11.Luther F. Symons, Indiana banking commissioner has filed suit in St. Joseph circuit court here, asking that a receiver be appointed for the Franklin Trust Company which the state banking department ordered closed Saturday because of "frozen" assets and a lack of cash reserve. The suit was filed through Thomas Barr, deputy commissioner, who investigated conditions of the bank.
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KREISLER IS OFF RADIO Noted Violinist Declines to Play Again This Season. NEW YORK, Oct. 11.-A disment is in store for ether listeners-in Kreisler fans will not hear their favorite over the radio this year Upon the arrival of Fritz Kreisler in New York, after a summer spent abroad, the famed violinist declared he still would not consider ng for unseen auKreisler diences Bank Receiver Sought BN Times Special SOUTH BEND. Ind., Oct. 11.Luther F. Symons, Indiana banking commissioner has filed suit in St. Joseph circuit court here, asking that receiver be appointed for the Franklin Trust Company which the state banking department ordered closed Saturday because of "frozen" assets and a lack of cash reserve. The suit was filed through Thomas Barr. deputy commissioner, who investigated conditions of the bank.
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STATE SYNDICATE TAKES OVER DEFUNCT BANKS Ind., Oct. banking syndicate headed State Oliver Holmes Gary, will take over two defunct northern Indiana banks, was liably reported here today. institutions the Franklin Trust Company South Bend, and the Provident Trust company of ColumCity. Elmer Peak has been appointreceiver the South Bend bank. Action receivership petition for the Columbia City institution was postponed until Nov.
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BANK RECEIVER SUES. J. Elmer Peak, receiver for the defunct Franklin Trust company, today filed suit in circuit court to foreclose a chattel mortgage on John Veger, of Lakeville, this county, in an attempt to raise money with which to pay off the trust company's depositors. The notes were for $837 and $286 and were secured by the mortgage.
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BANK NOT TO PAY BEFORE SUMMER Peak Says Legal Actions Delay Franklin Settlement; Funds Low. Depositors of the defunct Franklin Trust company, which closed its doors last fall on orders of the state banking commissioner, will not be paid until next summer and it is uncertain whether they will collect 100 per cent on their deposits, Peak, receiver for the bank, said The amount of the payments can not be determined, Mr. Peak said, until after the of score of legal pending in the county courts and the receipt of all claims against the bank. All creditors of the bank must file their claims before April 15. Mr. Peak said that majority of the Franklin Trust have paid the 100 per cent cash assessment levied them by Circuit Judge Cyrus E. Pattee and several have time Only few face the threat of contempt of court citations for failure to meet the he said. A large judgment was gained by the bank receiver in superior court No. late Wednesday when Judge Orlo R. Deahl granted the bank $28,531 from the Charles Weldler estate. The based on second will be taken from the Charles Weidler building on South Main street. The American Trust company, holders of the first mortgage on the property and trustee for the Weidler estate. was given judgment of $33,713.63.
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SENSATIONAL CHARGES MADE IN BANK HEARING Receiver's Attorney Accuses Franklin Trust Officers. GRAND JURY MAY ENTER SOUTH BEND, Ind., December 26. The possibility of special grand jury investigation of that about the collapse of the Franklin Trust Company here two years ago appeared today after sensational charges of malfeasance and criminal negligence were made circuit court against group of former officials and stockholders of the institution Alleged of thousands of dollars of money was the present receiver in charged officials who recently brought former suit that Judge Elmer Peak, former receiver Miss Ethel Weaver. his successor as receiver. and Orie Parker receiver's attorney the money assets of the company fees. Attacks Former Officials Mr. Parker, in vigorous statement in circuit court, identified the former name and of score officials by of instanaces of alleged fraud and malfeasance on their part. The suit former officials of the twenty Peak and Miss Weaver against Judge is merely thrown up by them in an attempt to "intimidate and browbeat' the present receiver and thereby escape criminal prosecution for their mismanagement of the bank's affairs. Parker charged am and an go before grand jury or any body and brought about the collapse of this institution, he asserted Miller Guy, attorney for the twen ty-five former officers the bank sought to check Parker's recital asking not an proper time to It. The before the court was his demand for bill particulars from Miss Weaver and Judge Peak, Guy said interested in Judge am Dan replied. ahead, Mr Parker Always He Says A few minutes later the court asked Mr. Parker whether the Franklin Trust Company was ever solvent. "That bank was never solvent. the attorney for the receiver answered. fraud from its very More than one-half the $100,000 italization the bank of watered for was no security only time the full italization on hand was for an hour two the day the bank opened This, he said, was in money borrowed deceive the bank and was taken away after spectors they He that investigation has explained that only about of the shown capital was sold and the $55,000 was out whose notes for on deposit in bank Subsequent revealed. he said, that many the persons who signed these notes supposedly had purchase the not stock and that their forged and on other notes were found to be fictitious, he alleged. Parker charged that Matthew Caldwell, president the was by his sign note told for fifty of carry it in his name until such time could be unloaded on some else that in the the and would carried the books charged to fixtures. receiver's attorney said that he has statements from Caldwell together with photostatic of other illegal operations and ready time to present them before at any a grand jury Alleges Illegal Borrowing He also said that officials the bank money from the institution on notes that were not signed by the directors as is required by He said such bor rowing offense in Indiana. During its operation of three years of $35,000 year. the Frank lin issued between $160,000 and $170,000 worth of bonds, it certificates of that existed the end today's hearing Judge Pyle asserted that he would down bottom of this thing complete audit of bank's and receivership operation by Chambers It was indicated that the would be set for trial an early date, probably in January.