71-0087Luther F. Symons, Indiana banktoday filed in the court of Superior Judge Virgil S. Reiter in which he asks the appointment of receiver for the American Trust bank which failed open its doors Wednesday Argument heard on the 30, by Reiter shortly after the filed. The closed by order of directors. The today liquidation ceedings supervision the state banking department.
Luther F. Symons, Indiana banktoday filed tion the court of Judge Virgil Reiter which he asks the appointment of receiver for the American Trust and Savings bank which failed open its doors Wednesday morning. Argument be heard the matter Dec. according decision made by Judge Reiter shortly after the petition filed. order of The day to put liquidation proceedings under the supervision of the banking department.
David manager of the Hammond: Delaney Printing comresearch department for Pace, Inc., pany, of Hammond: Chicago, started Gary, Garman's Chicago dustrial survey for the proposed indus- North Publishing trial expansion the for class started next spring by the its bid This Times' printed porter, Mr. Taylor explained that forms, Other bidders were the East will remain in Hammond until the Chicago Printery, with bid study is completed. Then he will and the Franklin Press, his findings Chicago office of Pace, final the of Com- Delaney Printing company, merce, he Hammond, for He expects to complete his work two on its low bid of $1,702.12. the fore part next This class blanks may be Publishing explained, by Ben Franklin Press; the East Chicago ing has selected Ham- Printery, and $2,915.50 by the Calualso met Press Gary. for its plant to learn sources their Tribe received the their fin- (Continued Page ished products, the labor and general tax structure affects industries in city. My ASK RECEIVER report, when completed, consensus of the economic structure of Hammond. statistical and economic FOR AMERICAN study will be made reduce my findings and analysis all factors that make TRUST BANK status. that analysis the negative of the indusLuther F. Symons, Indiana bankthat information at hand, filed definite in of Superior Judge tions the Chamber of Commerce Reiter which he the the best methods to pursue for appointment of receiver for the the proposed expansion of American Trust and Savings bank chamber. which its doors follow Wednesday morning. in the Argument heard on the of 30, according haps in Monthly. Personal made by Judge Reiter shortly after and all the filed. of the other factors that The bank was closed by order of cluded its The worked out detail to support the day put liquidation ceedings supervision Mr. Taylor said his firm has the state banking department. highly in promoting such throughout the tion during the 20 years of its TWO FIRMS TO istence.
Luther Symons, Indiana banktion the of Judge Virgil Reiter which the appointment of receiver the American Trust and bank which failed open its doors Wednesday morning. Argument will heard on the matter Dec. 30, according decision made Judge Reiter shortly after the petition filed. bank closed by order of day to put liquidation the state banking department.
Luther Symons, Indiana banking today petition in the court of Superior Judge Virgil Reiter which he appointment of American and Savings bank which failed to open its doors Wednesday Argument heard on the made by Reiter after the filed. The bank closed by order of directors. day liquidation under of the state banking department.
[SPECIAL TO THE TIMES] CROWN POINT, Ind., March 25.—Clarence Eder, deputy county highway superintendent for District 1, which includes Hammond and nearby territory, today filed suit in the Circuit court to compel the county commissioners to reimburse him for money he lost through the closing of the American Trust & Savings bank of Hammond.
He had presented a claim of $193 to the commissioners but the board refused to allow it.
Eder says that the board has been turning over to him the amount due his employes and that he had been issuing checks to them on the American Trust & Savings bank. He says he warned them to cash the checks at once but that several failed to do so and it was necessary for him to make the checks good after the bank closed
[SPECIAL TO THE TIMES] CROWN POINT, Ind., March 25.—Clarence Eder, deputy county highway superintendent for District 1, which includes Hammond and nearby territory, today filed suit in the Circuit court to compel the county commissioners to reimburse him for money he lost through the closing of the American Trust & Savings bank of Hammond.
He had presented a claim of $193 to the commissioners but the board refused to allow it.
Eder says that the board has been turning over to him the amount due his employes and that he had been issuing checks to them on the American Trust & Savings bank. He says he warned them to cash the checks at once but that several failed to do so and it was necessary for him to make the checks good after the bank closed
[SPECIAL TO THE TIMES] CROWN POINT, Ind., March 25.—Clarence Eder, deputy county highway superintendent for District 1, which includes Hammond and nearby territory, today filed suit in the Circuit court to compel the county commissioners to reimburse him for money he lost through the closing of the American Trust & Savings bank of Hammond.
He had presented a claim of $193 to the commissioners but the board refused to allow it.
Eder says that the board has been turning over to him the amount due his employes and that he had been issuing checks to them on the American Trust & Savings bank. He says he warned them to cash the checks at once but that several failed to do so and it was necessary for him to make the checks good after the bank closed
IT MIGHT EASILY BE ADOPTED IN HAMMOND
Civic Leaders Studying Plan Impressed With Its Practical Value
Hammond may very easily adopt the South Bend plan for stimulating business and liquidating closed banks, a committee of Hammond civic leaders reported today after spending yesterday in South Bend studying the plan in detail.
Mayor Charles O. Schonert, who headed the committee, was particularly impressed with practical value of the plan. Other members of the committee who asserted that the scheme may be adopted in Hammond, were Ed Simon, president of the Manufacturers' association; Irving Chayken, president of the Merchants' association, and John H. Rippe, receiver of the American Trust and Savings bank.
The committee now proposes to report their findings to all bank receivers in Hammond and then to Superior Judges Virgil S. Reiter and Clyde Cleveland, who maintain supervision over receiverships of closed state banks in this city.
IT MIGHT EASILY BE ADOPTED IN HAMMOND
Civic Leaders Studying Plan Impressed With Its Practical Value
Hammond may very easily adopt the South Bend plan for stimulating business and liquidating closed banks, a committee of Hammond civic leaders reported today after spending yesterday in South Bend studying the plan in detail.
Mayor Charles O. Schonert, who headed the committee, was particularly impressed with practical value of the plan. Other members of the committee who asserted that the scheme may be adopted in Hammond, were Ed Simon, president of the Manufacturers' association; Irving Chayken, president of the Merchants' association, and John H. Rippe, receiver of the American Trust and Savings bank.
The committee now proposes to report their findings to all bank receivers in Hammond and then to Superior Judges Virgil S. Reiter and Clyde Cleveland, who maintain supervision over receiverships of closed state banks in this city.
Receiver of American Trust Will Give So. Bend Plan in Detail to Them
Receivers of closed banks in Hammond will be called into special session soon by John H. Rippe, receiver of the American Trust and Savings bank, to listen to details of the South Bend plan for liquidating closed banks and stimulating business.
Mr. Rippe is acting for Mayor Charles O. Schonert, who headed a committee that went to South Bend Wednesday to study the plan in detail. Mayor Schonert believes the plan may be adopted in Hammond with beneficial results for depositors and business men alike.
After the bank receivers have
John H. Rippe, receiver of the American Trust and Savings bank, of Hammond, is arranging for the appearance of the South Bend men. Mr. Rippe was a member of Mayor Charles O. Schonert's committee which investigated the South Bend plan in person last Wednesday.
Mayor Schonert is highly in favor of introducing the plan in Hammond. He has delegated Mr. Rippe to arrange for a complete discussion of the enterprise with local bank receivers and Superior Court Judges Virgil S. Reiter and Clyde Cleveland.
[SPECIAL TO THE TIMES] CROWN POINT, Ind., June 28.—A judgment of $127 was obtained against Lake county by Clarence Eder, of Hammond, former assistant highway county superintendent, in the Lake circuit court this morning.
Judge E. Miles Norton instructed the county treasurer to pay Eder that amount of money. Eder testified that he signed a salary pay check for John Basler, of Hobart, on Dec. 23, 1931, as payment for Basler's services under him while he, Eder, was assistant county highway superintendent.
Basler held the check five days. It was drawn on the American Trust and Savings bank, of Hammond, which had failed in the meanwhile. Eder sued for recovery. Now, Basler will have to stand the loss, or wait until the bank pays a dividend.
Board of Finance Approves Steps Taken With American Bank Sureties
The Board of Finance of Hammond last night extended to Mayor Schonert, City Controller William Spellman and the council finance committee full power to accept or reject (with the council's approval) cash settlements or equivalents on the bonds of sureties of city funds impounded in the closed American Trust and Savings bank.
A motion that the committee must act unanimously on any offer made by the individual sureties was made by Alderman William M. Thompson and passed by the board.
Alderman John F. Laws declared that he would not vote to accept any settlement other than cash, negotiable or collectible securities. He voiced disfavor of accepting any note regardless of how many co-signers had affixed their signatures. "We must have something tangible, something that we can sell," he said.
Thirteen sureties of the bank are to pay $8,750 in cash or equivalent before January 6, according to an agreement with the board made early this month. Each is to pay $673.08. Attorney William J. McAleer and E. C. Minas, merchant, have already made settlement and have been released by the city.
Two of the others have come forward with offers of settlement, it was said, but have not yet been accepted.
The city had $180,000 on deposit in the bank when it closed a year ago. The $8,750 represents 35 per cent of the bond signers' liability, and leaves 65 per cent unpaid. Liberty bonds sold some time ago brought $63,150 to the city.
Board of Finance Approves Steps Taken With American Bank Sureties
The Board of Finance of Hammond last night extended to Mayor Schonert, City Controller William Spellman and the council finance committee full power to accept or reject (with the council's approval) cash settlements or equivalents on the bonds of sureties of city funds impounded in the closed American Trust and Savings bank.
AMERICAN TRUST AND SAVINGS BANK BARED
Story of Juggled Assets And Other Irregularities Is Told
The frenzied, extra-legal attempts of officers of the defunct American® Trust and Savings bank, of Hammond, to stave off insolvency vealed in the volumious 72-page report which Receiver John Rippe filed with Superior Judge Virgil Reiter this morning, outlining the condition of the bank before it was closed and the status of the receivership during the last 12 months. Between the dry, crisp, legal terminology the report may be read dramatic story by the initiated It is age-old story of juggled concealed liabilities, entries, and similar irregularities. To start the beginning, the bank closed December 15, 1931, with reported total assets of $888,742.53. that amount, $157,727.51 were listed trust securities and first lien trust
BONDS the bonds, shows that this bank sold bonds absolute recourse the bank. In other words, the institution guaranteed them. receiver estimates that approxithose sold. That equals the total assets of the institution. Receiver Rippe states that nuactions now are pending against receivership those bond assignments. He said they allowed, they will increase the method to is contained in the that payable, to $12,403 as liabilities the bank at the time of its Furthermore, the bank officers on November 6, accounts placed them undivided profit count the bank; the owners these still proper against the assets, even their names not disclosed on the bank records. On the date of closing, taxes due delinquent totaled $13,000 on real on the bank build$4,927.40 on personal prop(Continued on Page Ten)
Depositors Should Wait for Their Notices Before Applying for Checks
Payment of the $19,000 dividend authorized for depositors of the defunct American Trust & Savings bank, of Hammond, will be started tomorrow morning on the second floor of the First Trust building, new quarters of the bank, Receiver John Rippe announced today.
He said that dividend notices will be placed in the mail today and that depositors should wait for their notices before they apply for their checks.
The disbursements represents a 5 per cent payment on the depository balance of $400,000. It will be the third 5 per cent payment made by the bank since it was placed in receivership. The other two amounted to $20,000 each; consequently, that to be started tomorrow will bring the total dividend disbursement to approximately $59,000 thus far.
The bank had a depository liability of approximately $440,000 when it was closed. Mr. Rippe has moved the receivership staff to the second floor of the First Trust building on orders from the owner of the bank building on State street.