The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-02-28
STUDY RULING
HOLDING WILD
BANK SOLVENT
Bank Commissioners Are
Scored by Judge for
Closing Doors.

County prosecutors today scruti-
nized the ruling of Superior Judge
Linn D. Hay, in which he held the
j. F.-<Wild g. Co. State Bank SOL
vent when the doors we're closed by
state bank examiners in July, 1927.
Hays opinion on the soIvency Of
the institution was contained in his
dec'ee given Wednesday on the
100000 in accommodation notes"
made by three Indianapolis business
men, two of whom have since died.
In this case Richard L. Lowther, re-
celver Of the bank, was seeking to
have the court declare the notes as
sets, to be sold in iquidating the
banks debts, but Hay held the max
ers of the notes were not liable.
Bank Commission Scored
Prosecutor JudSon L. Stark, who,
with Homer Elliott, special prosecu-
tor, is conducting a second inveStl-
CATION into the banks closing, said
that since the first question to be
decided in this probe was whether
or not the bank was insolvent, the
courts ruling will be interesting to
us"
Hay criticised bank commissioners
for not giving more consideration"
to the situation before demanding a
receiver.
ut would have been better for de-
positors and creditors Of the bank,
had a receiver not been appointed
and officers and directors Of the
bank been given more time to work
out the condition of the bank with
out the sacrifice necessary to liqui-
date the receivership, the court
said. THE bank might have tided
over the condition if little more
consideration had been given by the
bank examiners to the interest of
creditors andadepoSitors."
Surplus Was Possible
Lowther brought the suit to COL
lect the notes from the estate of the
late Robert 1. Todd and John j.
Appel, and Frank M. Millikan.
Lowther maintained that the bank
would hove been closed, had not
the notes been used to bolster
the banks assets.
Frank B. Ross, attorney for
Lowther, said within a few days a
new trial will be asked and added
that the courts ruling will have no
effect on the receivership which was
granted in probate court.
Hay also held that if 100000 in
city school bonds, that were trans
ferred to another local bank on
order of bank examiners, had been
retained in the Wild bank there
would have been no danger of in
solvency. He said these would have
balanced the 100000 in "accommo-
dation notes" and the bank, accord
ing to testimony given in the case
should then have had a surplus OF
at least $4,000"
Note Makers Not Liable
The court pointed out that the
surplus figure might have been as
high as $4,000, if other items had
been considered.
The makers of the notes could not
be held liable for any alleged at
tempt to defraud depositors by
boosting the banks assets with the
notes, the court said, because the
notes, when made with John F.
Wild, president, we're merely for
accommodation purposes and for
no other"
Luther F. Symons, state bank
examiner, stated, following the rul-
ing. that there was mo question
that the bank was in a failing con-
dition when it was closed"
Oral arguments on the petition OF
Mrs. Frieda P. Harrington, Evans
ton, ILL.,. a preferred stakeholder, to
remove Lowther as probate court
receiver for the ]. F. Wild Realty
Company will be heard in federal
court at IL a. m. Friday.