The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-10-21
SHOWS LOSS OF $4,000
RECEIVER FOR THE RESERVE FUND
s. AND l.. ASSOCIATION.
state Auditor starts an Investigation
and Proceedings Are Filed In
Court Immediately After.

A receiver was yesterday asked for the
Reserve Fund Savings and Loan Associa-
ton. of this city. which was Incorporated
for business in June, 1895. The association
failed to file an annual statement, az re-
quired by law, on June 30 last, and yester-
day Auditor Hart ordered an Investigation
of its condition. The examination was made
by George u. Bingham, expert for the de-
partment, and IL disclosed a loss of 81 ,449. IS.
On this report Auditor Hart asked the at
torney generals department to take steps
to close up the affairs of the association,
and Assistant Attorney General Merrill
Moores filed the application before Judge
Allen, of the Circuit Court. Judge p. w.
Bartholomew, president of the association,
appeared in its interests and did not OBJ
ject TO the appointment of a receiver. 1t
was suggested by the attorney for the state
that Alfred Dickey be appointed receiver,
but Judge Bartholomew objected and asked
that the Marion Trust Company be named
as receiver. Judge Allen took the selection
of receiver under advisement until to-day.
and in the meantime he required a bond Of
$40, 600.
The association has been under suspicion
at the auditor of states department for
some time, and sharp inquiries have been
made as to the condition of its business. 1t
was known that the expenses were high
and the officers of the association promised
to make a reduction in them, but
the Investigation show the reduction
has not been made, and 1t is mani
testify impossible for the association to con-
tinue business. Charles ii. Young was the
organizer Of the association and has always
been its secretary. John F. Wallick and
w II Ouvap have hean fornor nrpGi6pntS
Judge Bartholomew has been in Office but a
few months, and he caused the expert ex-
animation to be made by Mr.. Redman so
that he might ascertain the true condition
of affairs. The directors at the present
time are Judge Bartholomew, Charles III.
Young. John T. Brush and VIM. +. Floyd,
of Wayne county.
The department has no suspicion of any
dishonesty, but the officials freely say they
believe the loss has been caused by wrong
management. So far as has been learned.
the directors have had but slight pecuniary
interest in the business and have given 1t
but little attention. The association has
transacted the greater part of its business
outside of this city and county, and the
heaviest losses will fall throughout the
State. 1t is believed that Wayne county
people will suffer more from il than any
Otner. III is eXpecleu II Will pay dDOul JV
cents on the dollar, but no investigation as
to the value of assets has been made yet.
THE EXPERTS REPORT.
The report by Mr.. Bingham, on which the
action was based, is as follows:
Acting under your instructions of this
date TO make an examination OF the Re-
serve Fund Savings and Loan Association,
of this city, for the reason that the said
association has failed TO file with you the
annual statement of its condition on June
80. 1899, as required by law, although the
president and secretary had been notified
of such failure more than thirty days prior
to this date, as provided by law. / have
the honor to report as follows: Upon call
ing at the associations office L found that
its books had been written up from the
beginning of the association, in 1895, TO
June 80, 1899, by w. NJ. Redman. an expert
accountant, and that he had just COM
pleted his work. / took off a statement of
the condition OF the association on June 30,
1899, from the books as now written NJ.
This shows the following condition.:
i abilities