J. F. Wild & Company State Bank (Indianapolis, IN)

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WILD BANK IS BEING CHECKED State Commissioner Confers With President. BULLETIN A receiver must be appointed to wind up affairs of the J. F. Wild & Co. State Bank, State Bank Commissioner Luther F. Symons declared today. State examiners have not determined how much depositors will lose, but they should be prepared to suffer some loss, Symons' statement said. Examiners continued to work today on the check-up following the closing Saturday noon of the J. F. Wild & Co. State Bank, 123 E. Market St. A conference, was. held this morning between State Banking Commissioner Luther F. Symons, who ordered the bank closed, and J. F. Wild, founder and president of the institution. It was announced by Symons that a joint statement of the bank officials and the State banking department would be forthcoming. Patrons having safety deposit boxes at the bank will be permitted to obtain their contents soon, Symons declared. The closing of the institution will in no way affect persons having valuables stored for safe keeping.

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WILD BANK RECEIVER

Coleman Mustard Indianapolis, Ind., Aug 2-(U.P.)- Curry Powder Eugene H. Iglehart, Indianapolis Saccharine Red and Black Pepper attorney, newly appointed receiver Mixed Spices Salicylic Acid of J. F. Wild and Co., State Bank, conferred with officers of the Tumeric Parafin state banking department today regarding steps to protect the bank's Every Commodity, Pure and Fresh, depositors. He was named by Judge Mahlon E. Bash on petition of Lu- Insuring the Best Results. ther F. Symons, state banking commissioner, who closed the $7,000,000 bank Saturday, and qualified at Johnson's Drug Store once by providing bond of $500,000.

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WILD BANK LOSS OF 20 PER CENT SEEN posits, pending settlement of the Depositors in the J. F. Wild & bank affairs, it was learned. Co. State bank, closed by the The audit being made by the State banking department Saturbanking department continues, day, will suffer a 20 per cent loss, State Bank Commissioner Luther F. or possibly slightly less, bankers in Symons announced today that it touch with the Wild Bank situation was unlikely that it would be combelieved today. pleted until the first of next week. Other Indianapolis banks are Attorney E. H. Iglehart, receiver loaning the Wild institution deposifor the institution, declared that he tors up to 60 per cent of their dewould make a statement to depositors as soon as he received the audit. "This probably will be in the midJURORS PROBE dle or latter part of next week,'.' Iglehart, said. He knew nothing of a meeting of depositors to be held GRADER LOAN in Superior Court, Room 1, Friday night. According to announcement, the meeting will be for the purpose of Contractor That Hear organizing depositors to protect their interests, but names of the Used County Machine. organizers have not been made public. The Marion County grand jury There are approximately 18,000 stopped its investigation of political accounts at the bank and the total corruption today long enough to deposits are a little less than $4,000,look into alleged irregularities by 000. he reported. county officials. "Our work at the bank is being The jury investigated alleged retarded some what by the many inloaning of a county road grader to quiries which we receive," Symons Smith Hawkins, Shelby County conasserted. "Should we assume a tractor. It was said Commissioner high-handed atitude toward the George Snider, minority member, public we might progress more found the grader on a road south of rapidly, but it is the department's Shelbyville. policy to be courteous and to give Luther Tex, road superintendent, information to all legitimate insaid Hawkins had previously loaned quirers." the county some equipment. The general banking situation in Snider, Tex, John Carlisle, counthe city has not been affected. ty auditor's office employe. and

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RECEIVERS FOR BANK CHOSEN Richard Lowther, Iglehart to Handle Wild Affairs. Richard Lowther, attorney with office at 710 Continental Bank Bldg., and Eugene H. Iglehart, attorney named receiver last week, were appointed joint receivers for the J. F. Wild & Co. State Bank today by Probate Judge Mahlon E. Bash. Iglehart's appointment last week was set aside by Judge Bash Saturday, when depositors objected to his appointment, on the grounds that they had not received notice that the appointment was to be made. Action today was taken by the court despite pleas of Attorney Joseph Williams, representing a group of depositors, who asked that the Farmers Trust Co. be appointed. Williams also presented the State Savings and Trust Company and the Union Trust Co. as possible receivership companies, declaring any of the firms would handle the proceedings without cost. Frank Ross, attorney, representing depositors with $50,000 in the bank, asked the companies not be selected because "an individual receiver could get more money for the depositirs and get it quicker." Luther Symons, State Bank examiner, testified the capital stock of the bank is "entirely gone." Solvency was in question "when $275,000 in bonds was stolen some time ago," Syrinons said.

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RUSH WORK IN BANK Extra Force of Examiners on Wild Co. Audit. An additional force of examiners was ordered to work today on the J. F. Wild & Co. State Bank audit by State Bank Commissioner Luther F. Symons. The extra force will work tonight in an effort to complete the check late tonight or early Wednesday. If the audit is completed tonight, the report will be turned over in two days to the co-receivers, who will announce findings. Eugene H. Iglehart, co-receiver with Richard Lowther, appointed Monday by Probate Court Judge Mahlon E. Bash, will analyze the report which will set out the bank's financial status. Following appointment of the receivers, members of the depositors' committee announced they would lend fullest cooperaiton to the receivers, although they favored selection of a local trust company.

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PLAN WILD PAYMENTS Depositors to Get Cash From Early Assets Sales. Probate Judge Mahlon E. Bash today said he will name a date for first payments on accounts of depositors of the defunct J. F. Wild and Company State bank soon. The distribution will not be the entire amount to be received by depositors, Judge Bash said. About $1,300,000 of the $3,650,000 worth of assets of the institution have been liquidated. Judge Bash pointed out that this amount includes cash received for sale of bonds to the Union Trust Company and $400,000 worth of notes that have matured since Eugene H. Iglehart and Richard Lowther became receivers.

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WILD ORDER CONTINUED By agreement of attorneys, the restraining order against receivers of the J. F. Wild & Co. State Bank, preventing them from selling $100,000 worth of "accommodation notes" as assets, was continued Tuesday by Superior Judge Linn D. Hay. The temporary order will stand pending a hearing on a permanent injunction.

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Former Official of Banking Institution and Its Subsidiary Tells of 'Sleight of Hand' Shifting of Accounts. PRACTICE CONTINUED FOR YEARS Judge Dunlavy's Searching Quiz Brings Full Details at Hearing to Set Aside Receiver Appointment. (Story of Detailed Examination On Page 11) How $171,000 of the assets of the now defunct J. F. Wild & Co. State Bank was used to pay the debts of the Elevator Realty Company, a subsidiary firm of the bank, controlled by bank directors, was told Superior Court Judge William O. Dunlavy Friday afternoon. The story was revealed when attorneys for the realty company sought to set® aside appointment of U. S. Lesh as receiver by the court Thursday on default on a receivership suit filed by Harry Meloy, stockholder. Otto B. Kern, former secretary treasurer of the realty company and director of the bank, and Stephen M. Davis, 4189 Ruckle St., accountant who investigated the books of the bank and realty company, faced examination by Attorneys Thomas A. Daily and Charles T. Hanna, representing Meloy and Kurt F. Pantzer.

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STOLEN BONDS OF WILD BANK MAY BE FOUND Receivers Hope to Recover Part of $271,000 Loot, Long Gone. GRAND JURY ON PROBE Investigation Being Made; Depositors' League Is Ready to Act. Hope that some of the $271,000 in negotiable bonds stolen from the J. F. Wild & Co. State Bank, Nov. 17, 1926, will be recovered is entertained by receivers for the bank, now defunct, Richard O. Lowther, one of the receivers, said today. The Marion County grand jury has had the bond theft under investigation from time to time ever since the bonds disappeared. The theft was one of the factors in the bank's crash, July 31, 1927. The grand jury now has before it testimony given in Superior Court Three last Friday, disclosing that the bank officials diverted $171,000 from "profit and loss account" to pay dividends upon preferred stock of a subsidiary realty firm and retire some of the stock, when the subsidiary failed to make a profit itself. Lowther said that the receivers had been conducting a quiet search for the bonds and hoped soon to compel the return of some of them. Several months after the bonds disappeared, $51,000 worth of them were traced to a man in Minneapolis. He was arrested. He said he obtained them from a garage owner. He, too, was held. Local detectives, however, failed to bring the men here, because they obtained their liberty on a writ of habeas corpus, the judge holding the evidence against them insufficient. Joseph R. Williams, attorney for the Wild Depositors' League, attempting to aid the receivers to get as much out of the bank assets as possible, said: "We will ingist that Probate Court compel the receivers to file such suits as the law will sustain against present officers of the bank and those who have been connected with it in an official capacity since 1921. "We also shall insist that suit be brought on the bond given by J. F. Wild, Sr., as president, and Otto P. Kern as cashier, for faithful performance of their duties." Williams stated that the receivers had told a depositors' league committee three weeks ago that they hoped to have some of the stolen bonds back within ten days. The bank had $75,000 worth of theft insurance upon the stolen bonds. Only $50,000 worth of this insurance has been paid.

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DRAFT BRIEFS IN SUIT

OVER WILD BANK NOTES

$100,000 Involved in Litigation of Receivers, Signers.

Briefs will be submitted in two weeks to Superior Judge Linn D. Hay in the case growing out of the signing of $100,000 worth of "accommodation" notes to the defunct J. F. Wild and Company State bank prior to its failure by three Indianapolis business men. Judge Hay took the case under advisement after a two-day hearing.

The notes were signed by the late Robert I. Todd, president of the Indianapolis Street Railway, Frank Millikan and John J. Appel, local business men. Receivers Eugene Iglehart and Richard Lowther have asked that the notes be included in the saleable assets of the institution while the note signers claim they were guaranteed no liability by John F. Wild, bank president.

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CARRY AFFAIRS

OF WILD BANK

TO FOUR COURTS

Failure of Institution Year Ago Results in Much Litigation.

Legal action resulting from the failure of the J. F. Wild & Co. state bank more than a year ago has been carried to four Marion county courts.

This case has entered more county courts in various ways than any other matter that has come before authorities in recent years. The first litigation brought to a court's attention was the petition for a receiver filed before Probate Judge Mahlon E. Bash.

Eugene H. Iglehart and Richard L. Lowther were appointed receivers and took steps toward sale of all the company's assets, including Florida holdings, which were considered extremely valuable during the boom period.

Iglehart since has withdrawn as co-receiver and Lowther now is preparing to pay depositors a 5 per cent dividend in December that will bring the amounts paid to various individuals who had interest in the bank to 62½ per cent. Lowther is sure that before the receivership matter is closed 80 per cent will be returned.

Indictments Are Pending

Indictments now are pending in criminal court against John F. Wild. president; Otto Fisher, cashier and John Craig Fisher and William P. McNairy, officers of the bank, for bank embezzlement.

These indictments were filed April 20 and please in abatement and motions to quash have been filed since then by defense attorneys.

Collins sustained the state's demurrer to the abatement pleas and now has the quash motions under advisement.

In superior court two, Judge Linn D. Hay plans to hear arguments late this month on three suits filed there to prevent $100,000 worth of accommodation paper from being sold as assets of the bank in the receivership clean-up.

The late Robert I Todd, president of the Indianapolis Street Railway Company, Frank M. Millikan. local capitalist, and John J. 9ppel, real estate broker, signed notes. which were renewed, to the bank on request of the bank's officials.

Notes for Accommodation

The men contended that the notes merely were for "accommodation of the bank" and since no consideration was involved in the transaction and no interest paid on the notes, they have no salable value.

The most recent litigation involving the bank is the filing of a suit in superior court three by Lowther against the Standard Accident Insurance Company of Michigan, seeking $30,000 on an insurance policy taken by the bank, when solvent, to protect the institution against losses by theft, larceny or destruction. The bank collected $50,000 on the policy following the "disappearance or theft" of $271,500 of Liberty bonds in November, 1926.

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WILD CASE RULING

WILL COME SOON

Ruling on the suit in which Richard L. Lowther, receiver for the defunct J. F. Wild & Co. State bank, seeks to have $100,000 worth of "accommodation notes," donated to the institution by Indianapolis business men, declared salable assets, is expected to be given soon by Superior Judge Linn D. Hay.

The court took the matter under advisement Tuesday afternoon, after several hours argument by attorneys on each side. He indicated that he would rule as soon as he had reviewed the evidence.

The men who gave the notes were Robert I. Todd and John J. Appel, both of whom have died since the bank was closed, and Frank M. Millikan.

Attorneys for Lowther declared the bank was insolvent several months before it was closed, and that the bank examiner was misled by the presence the "accommodation paper" in the bank which, he alleged, was published as assets of the institution.

Attorneys for the deceased men and Millikan asserted the bank was solvent and that it was closed without consideration of assets actually held.

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POSTPONE SUIT TO

RECOVER BANK FUNDS

Tral Date in Defunct Wild Bank's Petition Set Feb. 15.

Hearing on the suit of Richard L. Lowther, receiver of the defunct J. F. Wild & Co. State bank, to collect $152,313, from the Elevator Realty Company, a subsidiary firm of the bank, was postponed Tuesday by Superior Judge William O. Dunlavy when attorneys for Lowther were unable to appear.

The court tentatively set the trial date for Feb. 15.

Lowther alleged that the bank "loaned" the realty company this money over a period of five years to keep the company, which owned a grain elevator near Beech Grove, functioning.

He is seeking to collect the amount for bank depositors from stockholders in the realty company and through sale of the company's assets.

U. S. Lesh, realty company receiver, is resisting the petition.

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COUNTY PROBE IN WILD BANK CASE ORDERED Second Quiz to Be Started in Condition at Time of Closing. IS ISSUE SOLVENCY Hope to Settle Conflicting Reports of Examiners by Inquiry. Investigation of the financial condition of the J. F. Wild & Co. state bank, when its doors were closed by state banking examiners about two years ago, will be reopened by county authorities within the next few days, it was reported today. Homer Elliott, former federal district attorney, is to be appointed prosecutor special deputy the to bank's carry on the second probe into it was said. failure, an immediate personal He investigation will begin and later submit the facts he obtains to the county grand jury for consideration. Solvency Is Issue The main point in the quiz will be to determine whether the bank actually was insolvent when it was closed in July, 1927. On the quesof the results of tion will hang possible solvency, the it is criminal known, Two were in investigation. countants charge firms of and of tabula- ac- acof the bank's books, to evidence cording tion given the in bank's court cases, growing out of one of the insolvent failure, the bank while firms the declared other disputed this statement. Prosecutor Judson L. Stark declined to comment on possible moves relative to reopening the investigation. An indictment, charging bank embezzlement, returned by a prejury J. Fisher, vious Wild, grand Craig named W. John H. Mc- F. Nary and Otto P. Kern, officers of the bank, as defendants." A motion this weeks ago to tained quash several indictment by was Crim- susinal Judge James A. Collins. The true bill alleged that officers the bank continued to accept from depositors of money when insolvent they were aware of the alleged condition of the institution. Richard L. Lowther, receiver for the bank, has returned 67.5 per cent in 5 per cent dividend lots to deIt is reported that several are as other positors. payments planned Indian- soon as properties of the bank in apolis and Florida are sold. Realty Company Sold Ruling on a suit by Lowther to sell as assets $100,000 worth of "accommodation notes" given the bank by Frank M. Millikan, the late Robert. I. Todd and the late John J. now is awaited. Superior Linn D. Hay is Appel, Judge the exected case soon. to give his decision in also is Lowther shareholders trying to and collect the $151,000 from of the Elevator in a suit before pany assets Superior Realty Judge ComWilliam O. Dunlavy. The realty company, a subsidiary of the bank, "leeching" the bank for money to and was operate pay stock dividends, it is alleged.

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GRANT WILD HEARING

Plea for New Bank Trial to Be Heard in April.

Oral arguments in support of a new trial motion in the suit brought by Richard L. Lowther, receiver for the J. F. Wild & Co. state bank, against three Indianapolis business men, two of whom now are dead, to collect $100,000 worth of accommodation notes, will be made in April.

Attorneys for Lowther filed a petition asking permission to argue the new trial motion and Hay granted it, announcing that a date will be set later.

Three weeks ago Hay held that although the men had signed the notes to the bank they could not be held liable. Lowther contended that since they put up the notes, they should pay the amount as assets of the bank.

Robert I. Todd and John J. Appel signed two of the notes several years before their deaths and Frank M. Milliken signed another.

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F. WILD BANK NEAR CRASH IN '21, NOTES SAY Overdraft by Elevator Firm Caused Early Tangle in Affairs. The J. F. Wild & Co. State Bank, which was closed in July, 1926, was perilously close to a crash in April, 1921. and was saved only by the pouring in of $380,395 of money and securities by friends of the president, J. F. Wild, it was disclosed today. The disclosure was contained in a memorandum, signed by the directors and stockholders of the bank, which has been made part of the record in the suit of Richard L. Lowther, received for the Wild bank, against the Elevator Realty Company. a bank subsidiary also in receivership. The suit seeks to recover $172,000 alleged to have been paid by the bank to keep the realty company functioning for several years. The $380,395 raised in the 1921 emergency was to cover an overdraft of that amount which the bank officials had permitted to accumulate in the account of the Big Four Elevator Company. Meetings Held The memorandum discloses that the bank officials and officials of another Indianapolis bank held hurried meetings and hustled around from financier to financier to raise the money while a state bank examiner held over them an ultimatum that the overdraft had to be covered by a certain date. Henry H. Hornbrook, then attorney for the bank, proposed a plan "to meet the siutation" at a meeting April 15, 1921. According to the bank records, his plan, which was followed, was that the Big Four company give its demand note for the full amount of the overdraft indorsed by LeRoy Urmston, then president of the company and owner of the common stock of the Elevator Realty Company. The Elevator Realty Company was to increase its preferred stock to $200,000 and its common to $100,000, with the preferred stock then outstanding to be retired and the bank to purchase the new preferred stock at 95, which would produce $190,000.

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WILD SUIT DATE SET Hearing in Action Against Realty Firm to Be Held May 15. Oral arguments in the suit of Richard L. Lowther. receiver of the defunct J. F. Wild & Co. State Bank, against stockholders of the Elevator Realty Company, a subsidiary firm. in which he seeks to collect $172,000 will be heard by Superior Judge William O. Dunlavy May 15. Lowther, in his petition, alleges the bank paid the money into the realty company to sustain it and that the realty company's property was worth only $40,000. A hearing was held on the petition before Dunlavy several weeks ago in which alleged juggling of accounts by the bank to the company was revealed.

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REFUSE WILD CLAIM Bank Loses $170,000 Suit Against Realty Firm. The long-fought legal battle of Richard L. Lowther, receiver of the defunct J. F. Wild & Co. State Bank, to collect $170,000 from stockholders of the Elevator Realty Company, a subsidiary, ended today with the situation the same as it was before the suit was brought. Superior Judge William O. Dunlavy announced his ruling that disallowed the claim by Lowther and also one contained in the cross complaint of U. S. Lesh. realty company receiver. who sought $142,000 from the bank. With Dunlavy turning down both demands, neither group benefited. Lowther claimed that the realty company accepted money from the bank with which to pay dividends and that it should be repaid. Lesh contended that the bank owed the stockholders for $142.000 worth of stock purchased in 1921.

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SUIT IS ATTACK ON BANK LEASE

Wild Building Contract Is Alleged Illegal.

Suit attacking legality of the twenty-year lease of the State Saving and Trust Company on the first and second floors of the J. F. Wild bank building was filed today in circuit court by Edgar M. Blessing, J. F. Wild Realty Company receiver. The action seeks to have the lease canceled.

According to the complaint, the lease of the two floors of the Wild building was executed in December, 1928, by Richard L. Lowther, receiver for the J. F. Wild & Co. State bank. The Wild Realty Company is a subsidiary of the Wild bank and was the financing company in leasing of ground and construction of the Wild twelve-story building. The State Savings Company, according to the lease, was to have the use of two floors for twenty years at a sum not mentioned.

The complaint alleged that Lowther as Wild bank receiver, executor of the lease, had no authority to lease a portion of the Wild building, and that Lowther has failed to pay the Wild Realty Company certain sums involved in the lease management.

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WILD BANK TO PAY DIVIDEND

Additional 2.5 Per Cent Payment Is Ordered by Judge.

Distribution of an additional 2½ per cent dividend to depositors of the defunct J. F. Wild & Co. state bank was ordered today by Probate Judge Smiley N. Chambers.

With 62½ per cent previously paid, this allowance makes a total 65 per cent dividend to depositors, Receiver Richard L. Lowther told the court.

"This will not be the last of the dividend," Chambers said. He directed Lowther to write each depositor explaining status of the trust.

Cash on hand, available for distribution, is $93,818, Lowther's report to the court states. However, only $85,037 will be disbursed at this time.

The receiver asked permission to retain part of the fund to complete operation of the receivership.

Fund from which the payment is made was secured from judgments against estates of John J. Appel, Robert I. Todd and from Frank N. Millikan, former directors of the institution, the petition stated.

The receiver has collected majority of the $115,000 put up by the directors on accommodation notes prior to the bank's closing, according to Chambers.

Letters from Lowther accompanying the dividend checks stated that unliquidated assets left in the receivership total about $500,000.

While the court and receiver desire to liquidate these assets immediately, he said, they feel that it is advisable to await better real estate market conditions.