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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 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.
SECOND WOMAN TO NAMED BANK RECEIVER South Bend, Ind., Mar. been named receiver for the Franklin Trust company closed two years ago by the state banking She the second woman in Indiana to receive distinction. such She succeeded Elmer Peak was disqualified for the place when he was elected judge of court Miss secretary to Peak during receiver for incumbency the defunct bank. The other only ever to appointed bank receiver was at one according to ther Symons, state banking commissioner in
PART OF PLOT BANK OFFICIALS DODGE JUSTICE RECEIVER Declares Many Notes Were Given Former Officials Without Directors Approval SOUTH BEND, Ind., Dec. Elmer Peak of court No. today answered perior charge that fees receiver defunct Franklin Trust together with the fees drained the bank attorney half its cash Judge Peak received of the bank until he became judge of the court. answer Judge Peak allegthe charges against plot by former officials the defunct bank to escape conof their the bank's affairs. Judge Peak, as former receiver for the bank, charged suit filed Dec. former directors depositors with having made extravagant payments to himself, attorney his Miss Ethel Weaver. Miss Weaver became receiver for the bank when Judge Peak place the superior court bench. answer Judge Peak former bank officials with criminal negligence the conduct the bank's affairs. Among those charged Adam Hunsberger, former the bank. He accused by Judge Peak being "one of those sponsible It is alleged that assessment stockholder bank. Other former officials named by Judge Peak Bert McClellan, former treascashier, who charged owing the note and stock ment; John and former director, alleged to stock assessment; Rostiser, former secretary, charged with stock sessment of $1,000; Matt well, former president, charged personal note; Davis Berger, director, charged with stock assessment, Shafer, former vice president. Judge Peak alleges many notes given former officials without the approval of the entire membership the board of direct-
BANK RECEIVER ANSWERS SUIT Charges Former South Bend Officials With Fraud. South Bend, Ind., Dec. 26 for the Franklin Trust in made in Circuit Court today, made fraud against officers the defunct bank. The statement made Circuit Judge Daniel Pyle in whose court pending for dismissal Miss Ethel the receiver The suit was filed against Miss Weaver former officials and stockholders of the bank. It alleged that fees Miss Parker and Elmer Peak, preceded Miss had drained onehalf the bank's assets. Suit Termed "Smoke Screen." Peak retired receiver when he took office as judge of the Superior Court and was succeeded by Miss his Parker Judge that the suit brought the officials and stockholders against the receiver "smoke thrown up to aid them in escaping prosecution alleged of the bank's affairs. Judge Pyle at the conclusion of the hearing today ordered complete audit the bank's condition and of the operations the receiver. am ready and would enjoy an to go before grand jury any body and brought about collapse of this institution. Parker said Parker declared the bank was never solvent. He said more than onehalf of the capitalization consisted watered stock for which there was no security.
ARGUE PRIORITY OF CLAIMS Three Closed Institutions in County are Now Awaiting Ruling. A third St. Joseph county bank was added to the list of closed banks which are awaiting an important decision by the Indiana supreme court before paying dividends to depositors whose funds have been tied up in the institutions for several months. The petition by the Citizens Trust Savings bank, receiver for the Lakeville State bank. for permission to make blanket distribution of 10 cent, was blocked by objection by Union township and the town of Lakeville, whose total municipal funds make up two-fifths of the entire amount of deposits in the bank. Attorney Roland Obenchain, representing the and town, told Circuit Judge Dan Pyle that while the need their funds as well as the individual depositors, It was their decision await the supreme court's ruling concerning the priority of claims against closed He stated that the municipal funds in the bank total about $20.000 and that the entire deposits tal about $50,000. There is more than $5,000 ready for distribution by the receiver, which would release approximately $2,000 to the LWO government units and $3,000 would divided among the several hundred Due to this state of affairs and additional moving factor in the depreciation of the bank's assets, Mr. said, the municipalities are forced to oppose the pres. ent distribution and await the highor court's ruling. Receivers for the Franklin Trust company of South Bend and the North Liberty State bank signified some time ago that they are ready to make distributions of considerable amounts when the supreme court rules, Miss Ethel Weaver, receiver for the Franklin bank. stated that blanket distribution of 10 per could be made once should the supreme court that public funds do not hold priority over individual depositors. Should the municipal funds be given priority, Miss Weaver said. 20 per cent may be paid. St. Joseph county has about $44.000 tied up in the Franklin bank, while several townships also have smaller amounts in the closed bank. John G. Schurs, receiver for the North Liberty bank, said some time ago that sizeable distribution is ready to be made to depositors. but the Liberty township funds held in the bank make necessary await the supreme court's ruling. The matter has been before the high court for more than year and despite the fact that many receivers for closed banks throughout the state are awaiting ruling before releasing funds, the court justices have failed to make a decision.
Franklin Trust Dividend Of $2,200 is Promised DONALD ZOLMAN NAMED TO HEAD RILEY ALUMNI Donald Zolman president of the Riley High School Alumni amociation at Tuesday evening school building Her replaces Rob treasurer for the coming year Other officers are John and Mr man appointed the following to arrange for alumni pienic July Mr Man Jeanne Yockey Emmagene Ullery and Florence Ridenour 400 Depositors Will Get Payment Next Week. More than 400 depositors of the Franklin Trust company will tain more than of the money they had on deposit when the bank closed Oct early reported today by Miss Ethel Weaver and Ora attorney for the bank's receiver The dividend was made possible through recent order down by Circuit Judge Dan Pyle which transformed all deposits made after Jan 1928 into preferred claims petition filed by Donald Swisher Mr Parker said the order cleared the way for the preferred will followed soon by general dividend to all depositors Mr Parker added that the work of preparing checks for the pre. ferred depositors IN going forward rapidly and the checks probably will ready either Monday Tuesday of next week He said the distribution will be prorated cording the amount of money deposited after 1928, at which time Judge Pyle ruled the bank insolvent For this reason all monies deposited in the bank were taken despite the fact bank making those deposits preferred claims.
DEFUNCT BANK TO PAY $5,000 ON DEPOSITS Receiver of Franklin Trust Announces Dividend. Miss Ethel Weaver, receiver for the defunct Franklin Trust company, announced today that general depositors of the institution who heretofore have not received a distribution may obtain a five per cent dividend on their deposits by calling at her office in the Dean building. In addition a special distribution of a $2,251.75 trust fund will be made, Miss Weaver announced. It will be pro-rated among all depositors who also are required to appear personally in her office to sign receipts. The total amount available in the two distributions will be approximately $5,000. Miss Weaver sent notices to the last-known address of all depositors today and said checks already are prepared for them. Both distributions are being made under an order signed this morning by Circuit Judge Dan Pyle.