The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-12-18
REPORT SHOWS
SHRINKACE AT
CLOSED BANK
Assets of State Savings Are
Less Than Estimated,
Says Receiver.

Shrinkage in assets of closed State
Savings and Trust Company from
estimates Of the state banking de-
partment when the institution closed
April IS was indicated in a partial
report filed in circuit court late
Wednesday by Eben H. Wolcott. re-
ceiyer.
The receiyership has not pro-
crossed far enough to permit an
nouncement Of what payments may
be made to depositors and creditors
or when the first distribution may
be made, the report. stated. The re-
port covered. the period from May 5
to Nov. 30.
Forecast Is Impossible
",rhis report has been prepared
for the benefit Of the court as well
as any creditor or stakeholder who
may be interested" said the report.
Until preiorities all are determined
and settled it will be impossible to
forecast as-to when or what amount
of distribution can be made to gen.
eral creditors.
Expenses are being kept as low
as is consistent with handling the
vast amount Of detailed work that
is necessary. in a matter so compli-
Gated and involved as this.
TN addition to services of the
employees as shown in the report this
receiver has been exclusively en-
ployed in this matter since his quail
ficaton as receiver"
First Mortgages Sold
A $4,000 shrfnkage in assets from
the banking departments earlier
figures was occasioned, the report
said, by the fact that that amount
was carried on books of the bank
as an asset when in reality it was
a debt ofthe State Property Com
pany subsidiary.
Trust accounts were found to be
approximately $4,000 less than the
S112,452.55 figure set by the bank
ing department.
The report further declared the
receiver found the bank had pooled
100000 worth of supposedly first
mortgages b.. on Indianapolis real
estate with the power of substitute
ing securities of the same face value
as the mortgages expired.
1t was found, said the report, that
$4,000 of these had been sold to
realize cash, but second mortgages
on Indiana farm property instead
of indianapolis real estate had been
Balance Is Owed
TO the: -$64517.13 cash on hand
when the receiver took charge, $685.
424.50 had been added up to Nov. 30
from collection, but disbursements
Of $140,677.48 were made in that
period, so that the receivers bal
ance Nov. 80 was ,27415, accord
ing to the report.
These did not include $128,021. 10
collections made on the State Saw
ing and Trust Company by the IN
diana National bank on $3.50 400
notes held against the former in
stitution, fully secured by collateral.
The balance thus owed the Indiana
National is $157, 504.53, said the re-
port. The sum of $4,000 owed the
Fletcher American bank on a note
had been reduced to $449O on Nov
80, it said.
Lesser Securities ON Hand
Difficulties of Wolcott in collecting
cash on notes held by the institu-
ton also was revealed in the report
TO the court. According to the
statement, Wolcott only has been
able to collect $4C,865 90, while the
Indiana National bank has obtained
Sll9,S65.09 on notes and securities
held by it in lieu of loans to the
State Savings Company.
The Fletcher American National
bank has collected $4,000. Ii was
pointed out that other banks. In
making loans to the State Savings
have selected the best grade of Sc
curities as collateral. This leaves
the receiver only lesser grade secu-
rules on which to collect.
In SDain TuecSoVy i- ao.....y.-,