The Indianapolis times., 1932-04-05
CLOSED BANKS
FAIL TO PAY
IN TWO YEARS
DepoSltorS No Nearer to
Recovering Funds in
Five Institutions.
REAL ESTATE BLAMED
Delay Gradually Is Making
lnroadS on Assets With
ReCeiverShip Expenses.
BY SHELDON KEY


apolis banks have been waiting al
most two years for receivers to
liquidate assets and those of a
1fth institution have waited since
May 4, 1881, without any dividend
payments.
The long delay in liquidation was
revealed today by an examination
OF the banks records. Defunct
banks and dates they closed.
State Savings and Trust Com
pany, closed April 25, 1890, Eben II.
WOlcott named receiver May 2.
City Trust Company Oct. %,
1880 Curtis H. Rottger named re-
ceiver Nov. II.
Postal Station State bank, closed
Oct. %, 1880, Raymond D. Brown
named receiver Nov. 20.
Washington Bank and Trust Com
pany, closed Oct. %, 1880, Brandt
G. Downey named receiver Nov. Is.
Farmers Trust Company, closed
May 4, 1881, Boyd M. Ralston named
receiver May 6.
In addition, promises that depos-
itors in the Meyer-Kiser bank,
which closed but returned to its
directors for liquidation, soon would
be paid, have not been fulfilled.
Blame Real Estate Market
Unsatisfactory condition of the
real estate market is advanced by
the receivers as the reason for de d.
laying liquidation.
This delay gradually is making
inroads on assets, records reveal.
Expenses that must be borne in
clude salaries to receivers their
attorneys, clerks and Office as
siStantS.
In addition, large amounts are
being expended to kesp real estate
holdings in repair. The dismal
part of this latter picture is that
hundreds Of houses belonging to
the banks are vacant and have not
been rented for many months.
That depositors may not become
alarmed over the long delay, most
OF the receivers have formed de-
positorS' committees.
Through these committees, an
attempt is being made to keep
creditors informed as to the banks
status. The committees also ad-
wise and work with the receiver.
Can't BE Liquidated
According to reports, condition of
the State Savings and Trust Com
pany is about the same as when the
bank closed.
Real estate. the defunct in
stitution's chief asset, can not be
rquidated because of adverse
financial conditions" Wolcott, re-
ceiver, said today.
First dividend to depositors, VOL
colt, said, is expected to come from
a suit against stockholders on their
liability, still pending in superior
court two.
Frozen assets of the City Trust
Company principally include real
estate and mortgage bonds for
which there is no market now, it
was said.
Dividends to creditors depend
upon the real estate market, now
at its lowest ebb," Rottger, who is
serving without fee, said.
Awaiting Court Decisions
The City Trust, like the other
banks, is awaiting court decisions
on certain claims, alleged to be pre-
ferred against all other claims.
Earnings are keeping the receiv-
erShip going. without diminishing
assets" Rottger explained.
Litigation in connection with the
defunct Washington Bank and
Trust Company has been involved
and extended Large real estate
holdings of four subsidiary COM
panies of the bank have augmented
this condition
Downey announced everything
possible is being done to keep ex-
penses of the receivership at a
minimum and, at the same time,
save all possible assets"
Recent report of RalSton. Farmers
Trust Company receiver, showed the
institution also is loaded" with real
estate, which can not be sold.
Assets of the Farmers Trust Com
pany have an appraised value of
S596,S00.76, instead of the value of
s1,425,ls4.O7 at which they were
carried on the companys books
when it closed its doors May 4. the
report indicates.
Plans to reopen the defunct Pos
tai Savings State bank failed.
However, depositorS have been
paid 40 per cent dividend.