The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-28
PAPERS NOW PREPARED
FOR SUIT AGAINST THE
COMMERCIAL TRUST CO.
Attorney General, 1t Is Said, Will
Ask for Appointment of a
Receiver.
NO LOSS FOR DEPOSITORS
Troubles of the Company Will Not
Disturb Financial Circle of
the City.
NO LOSS FOR DEPOSITORS

1t became known yesterday that papers
have been prepared in the office of the at
torney general of Indiana for a suit against
the Commercial Trust Company of this
city, with offices at No East Market
street, for the appointment of a receiver.
Some time ago the affairs of this COM
pany were brought to the attention of the
auditor of state, and an examination of
the company's books was recently made by
George u. Bingham, expert accountant in
the auditors office 1t is understood that
after Mr.. Binghams report had been thor
oughly considered by Auditor David f.
Sherrick, the matter was submitted to the
attorney generals office for immediate ac-
ton, with the result that the papers are
now ready TO be turned over to the prose-
cutting attorney for this circuit. John c..
Ruckelshaus. who will bring the suit on
behalf of the State.
When questioned yesterday attaches of
the attorney generals office were loath to
speak of the matter before the filing of the
suit. but it is learned on good authority
that the complaint asking for receiver
to handle the affairs of the Commercial
Trust Company will contain three principal
allegations:
First. that the company is insolvent.
Second that the directorate is not prop
erly constituted, for the reason that some
of the directors do not own the ten shares
of stock each required by the law govern
ing trust companies
Third, that at the time the Commercial
Trust Company secured certhcate from
the auditor of state emitting ii TO do busi-
ness in Indiana, Ii did not have the neceS-
sary amount of paid-up capital stock.
The Commercial Trust Company was or
ganized a year ago last January by w. w.
Hubbard and Willis r.. Hackedorn,' but
these men have since disposed of their in
terest in the company and are said to be no
longer identified with it,, The present Off
GERS are:
President-C. c. Pierce, jr
Vice President-R. T. Snapp.
Secretary and Treasurer. NJ. Martens.
Assistant Secretary-W. E. Ashbaugh.
1t is understood that the depostors OF
the Commercial Trust Company will not
lose anything if the company is placed in
the hands of a receiver and is shown to be
insolvent The law governing trust COM
panies makes the stockholders liable for
twice the amount of their holdings to Sc
cure depositors, and il IS understood that
this provision will afford ample security
for the depoSitOrS
In local banking and financial circles
there is gossip that there may be some
sensational Developments in the litigation
affecting the Commercial Trust Company
These Developments it is said. will hinge
the substantiation of the third allegation
In the complaint-that, at the time the
company secured it's certificate from the
auditor of state, it did not have the re-
quired amount of paid-up stock.
1t is understood that some of the stock
holders of the company have neen dissatis- is
fed for some time with the condition of its
affairs The suit. it is said. VIII be brought
either to-day tomorrow.