The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1927-10-01

Estimates place the amountN
collected by Davies for this
purpose at close to $4,000,
which, it is said, will be collect
ed from him.
Davies, now secretry Of the In
diana Manufacturers Association,
with Offices in indianapolis. was
campaign manager for Senator Ar
thur R. Robinson in the campaign
of 1926.
On recommendation Of Robinson
he was appointed receiver of the
First National Bank OF NobelsVille,
also defunct, on June 3. 1926. He
still is serving in that capacity.
$500 Is Repaid
Prior 20 serving two terms as
State treasurer, he was treasurer OF
Howard County. Between the coun-
ty and State jobs he paid approx
imately $4,000 to the county, on in
sistence Of the State board Of ac-
counts.
Shortly after Davies took office as
treasurer of the State, the finance
board allocated $250,000 Of State
funds to the bank. which was ac-
knowledged TO have strong Klan
leanings and influence.
This amount has been reduced to
Sl60000 through insistence Of Mrs.
Grace Banta Urbahns, present
treasurer, and Lew S. Bowman. aud
itor Of State. after they learned
more than year ago that the solv-
ency OF the bank was questionable.
The capital stock of the bank Is
100000.
Jury to Be Called
A grand jury will be called by
Judge John Marshall to INVESTIGATES
the history of this bank failure.
which has proved a great blow toS
the community. already harassedI
through the failure Of the Haynes|
Automobile Company and the Ap-
person Automobile Company.
John G. Heron, Kokomo attor-
ney, who, with former Deputyj
Prosecuting Attorney Grover Bishop.
is acting as receiver under appoints
ment of Marshall, says that the de-
positors will receive about 25 cents
on the dollar and that no payments
can be made in much less than six
months.
No one places the salvage paid
after liquidation at more than so
cents on the dollar.
Payments to Davies and the large
amount of State funds on deposit
under his treasurership will not be
the only circumstance to be investi-
gated by the grand jury.
Bank Known to Be Shaky
Failure Of the bank did not come
as a surprise to either financiers or
politicians of the city. It's condi-
tion was known to be shaky for
months. An attempt was made to
merge 1t with another bank under
conditions which would have forced
the other bank to assume dead pa
per, which, it is estimated now, will
reach $250,0O0.
Every banker and every lawyer
in this town has known Of the con-
dition Of that bank for year and
half, said Heron. "Other banks
even set aside an emergency reserve
against the day when they expected
run on their institutions because
of the insolvency Of this bank"
Another irregularity to be investi-
gated is among the directorate. T.
w. Underwood, a director. was not
a stockholder at the time of the
closing of the bark His wife, Ma
tilda Underwood, is listed as the
owner of twenty shares.
Farm Transfer Shown
Perusal Of transfer records show
that recently Underwood decided
317-acre farm to a joint title. Byers.
his attorney, stated that Underwood
was willing to set this conveyance 4
aside and pay his full share in thd!
failure. The transfer was explained
by Byers as being for the purp1 81.
Of protecting Underwood from A<'
own family and not to sh'~'S k<.4.
snonsibilitv 1T the hank era
] Total ee1--eiA- ce 49, M
about 100000 OF this az '.><