The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-08-14
THE FINANCIAL OUTLOOK.
John Landers Appointed Receiver of
the Indiana Banking Company.
a Statement of the Causes Leading to the
FailUre-The Affairs of the First Ma
tionaI Practically Unchanged.

After Intellectual effort to effect some ar
raugement by which the bank might continue
its business, the Indiana Banking Company was
yesterday forced INTO voluntary liquidation, and
compelled to ask for the appointment of q
receiver. This action was almost totally unex-
pected, as 1t was generally thought something
would be done to relieve the banks embarrass-
ment. Indeed, without making direct prom
ises, the bank officials indicated that such would
be the case, and definitely stated that on yes
terday they would make known their inten-
tions in the matter The determination to have
a receiver appointed was definitely made yes
terday morning, although it had been in con-
temptation since Saturday. The announcement
of the fact created general surprise and undis-
euised condemnation on the part of many of the
depositors, who were not at all backward in
giving expression to their opinions. In defense
OF their action several officials of the bank yes
terday stated to journal reporter that in no
other way could there be an equitable settle
ment of the claims of their creditors. They
said that they were threatened with suits on all
sides, and receiver was absolutely necessary.
THE OFFICIAL STATEMENT.
The Banking Company yesterday pre-
pared the following official statement;
ITO the Public:
I'm February, 1878. an opportunity was
offered to this bank to purchase controlling
interest in the First National Bank upon what at
that time seemed favorable terms. The price
given for the stock, $l65, as the assets turned
out, was largely in excess OF its rea value by
the recent settlement this bank was compelled
to surrender one-half of its stock or We under
the impuIatlon of preventing an adjustment
that wOuld enable the First to resume-a re-
spOnsblity that it was unwilling to assume.
The purchase of that stock proved disastrous,
resulting In a net loss of over 100000. The
real estate and other property that the bank has
been compelled from time TO time TO take mas nOb
in many instances proved convertible into cash,
except at such loss as the bank has not felt
justified in making; and these, with other facts
of recent occurrence, have convinced the bank
that 1t could not after its doors had been closed
for several days, in fairness to all classes OF It's
creditors, open its doors with the certainty that
its available assets would be exhausted in
satisfying the demands of those who might como
first. Ii has been, therefore, determined TO place
the bank and all its assets in the hands OF a re-
ceiver, to wind up for the benefit of all crditors
alike and Mr.. John Landers has been appointed
by the court for that purpose, and this VIII pre-
serve the funds for an equal distribution.
THE INDIANA BANKING COMPANY.
august IS, 1888"
THE PROCEEDINGS IN COURT.
The following is the full text of the petitions
filed in the clerks office yesterday regarding the
appointment of a receiver for the bank;
"Mary Morrison, Jane NJ. Ketcham and Mary
Morrison, administrative of the estate OF William
FL. Morrison, John L. Ketcham VS.. William Need.
ham, Peter Ditmars, Peter j. Banta and Freder-
lex A. W. Davis.
1.-The above named plaintiffs complain OF the
above named defendants and say that for "A long
time the parties plaintiff and defendants have
been engaged as partners in the general bank
ing business of discount and deposit, in the city
of Indianapolis Marion county, and that on
Friday, the 10th day OF August, 1883, said bank
was compelled to close it's doors and to suspend
payment, and has not been able to resume pay
ment; that said bank has large amount of
assets, real and personal. and owes to IT'S depOs-
itors and others large amounts of money, the
particulars of which, as to assets and liabilities
cannot now be stated with approximate accu-
racy; that there Is danger that unless such
assets are taken into the possession OF the court
they may be wasted by reason of suits that
may be brought by the creditors of said
Banking Company, and in COSTS and expenses of
litigation, by reason whereof there is necessi-
ty for the appointment of Il receiver to take pos
session OF and hold said assets and administer
the same under the order of the court. The
plaintiffs further say that there is a large num-
Der OF the depOsit0rs whose funds are tied up by
reason OF said suspension, and by reason there
of they are suffering great hardship and incon.
venienee, They show the court that the assets
OF said bank are of such u character that in
short time sufficient amount can be realized in
cash 10 pay dividend upon the deposits, and
that If the receiver can be instructed to forth
with pay out of the cash that may come to his
hands, or that he may procure, a partial divi-
dend to the deposiTors, great Inconvenience
avoided. They therefore pray the court
to appoint receiver to take possession
of the assets of said bank, and under the
orders Of this court to administer the same, and
TO that end they pray for such introductory or
der may seem proper and equitable in the
premises. They pray for dissolution of said
firm, for an accounting and adjustment of the
partnership accounts, and for ali proper relief.
"HARRIsoN, HINES Il MILLER,
Attorneys for Plaintiff"
"Mary Morrison ct al. vs.. william Needham ct al.
Come now william Needham, Peter ]. Banta,
Peter Ditmars and Frederick A. W. Davis, and
enter their appearance TO this action waive the
issuing and service OF process, and consent TO
the appointment of a receiver as prayed for.
"OYLER, WOODEN d HUNTER,
Attorneys for Banta, Needham & Banta.
"FREDERICK a. W. DAVIS,
"By VIM. G. Keteham, his attorney"
The proceedings were before Hon. Lewis c.
Walker, Judge of the Superior Court, and after
the application ready Senator Harrison
moved that John Landers be appointed receiver
of the trust John NJ Judah, who represented
heavy creditor, objected to the appointment of
Mr.. LandeTs, because he lacked experience in
such matters, and suggested John W. Ray In his
place. An objection was made TO the latter be-
cause he was related to Mrs. Ketcham, one of
the partners, and the court finally ordered the
appointment of MIR. Landers, and fixed his bond
at 100000.
MEETING OF DEPosIToRs
AS soon as the action of the court became gem
orally known, small bills were posted on the
doors Of the banE, signed "Numerous Deposit
ors," calling for meeting of depositors at the
Supreme Court room, mt $50 O'Clock in the after
noon. AT the time des grated aboIt 200 deposit
were present and DR.. E. 8. Elder
was called to the chair. motion was
made for the appointment of a committee, to get
an exact statement of the condition of the bank,
but this idea abandoned. Colonel Oyler OF
Franklin, addressed the meeting. saying that he
represented the interests OF TWO of the partners
in the bank, AS well "a some of the creditors
He insisted that there was no occasion for the
meeting, and, hat depositors would receive dol
lar for dollar. Mr. J. NJ Judah questioned Mr.
Oyler closely about the assets of the hank and
the partners, and the latter was unable to give
such satisfactory answers as the depOstOrs de-
sired, and his efforts towards pacification were
somewhat i'll the nature OF dismal failure
Among the creditors present were cashier OF u
country bank and the treasurer OF Hancock
county, and the lat ter made short speech, in
which he urged the necessity of the appointment
of another receiver, who would look after the
denOsl IOrS' lnterests. A resolution MnA finally