The Indianapolis times., 1932-03-26
VACANT LOTS
BUBBLE TAKES
COUNTY'S Cash
Taxpayers Stung $61, 800
on Land Financed With
School Funds.
SCHEME PROVES FLOP
Unimproved Tracts Taken
as Collateral by
EX-AuditOr.
BY SHELDON KEY

Marion county taxpayers Monday
must prepare 10 assume a tax bur-
den Of SCI 800 for redemption of
scores Of vacant lots, part of an al
legged real estate scheme originating
in 1923 and 1929 and financed with
common school funds.
With revelation of the county's at
tempt TO recoup, The Times today
learned that nineteen persons, who
owned none of the lots in Rainbow
Ridge, near Speedway City, had per-
mitted use Of their names in the
original transaction.
County records have revealed that
the unimproved lots were accepted
As collateral by Harry Dunn, former
county auditor.
Dunn, it is said, did not have the
completed abstracts or affidavits to
show that the property was unin-
numbered when the loans were
made.
Legal, Says Dunn
According to information obtained
the nineteen principals permitted
their names to be used, resulting
in more than a maximum amourG
being borrowed from the schooi
fund.
This is denied by Dunn, who
claims attorneys were consulted and
legal procedure adhered to in the
transaction.
Ira P. Haymaker, county recorder,
today declared that none of the
nineteen persons owned any of the
lots when Dunn allowed the loans.
Haymaker admits acting as go
between during negotiations of the
loans from the school fund.
Nineteen checks bear indorse-
ment of Wesley Ryan, 56O2 Car
rollton avenue, indianapolis con-
tractor, who, it is said, is the pro-
moter behind the alleged scheme.
Except in one case, it is revealed, the
checks eventually we're turned over
to Ryan and countersigned by him
as the last indorser.
How the plan was conceived and
worked was revealed to The Times
by Haymaker.
Ryan Advanced Plan
He explained that Ryan, with
whom he previously has been as
sociated in real estate deals, sub
mitted the proposal to purchase the
undeveloped vacant tract near
Speedway City and create a sub
division from it.
The property then was owned by
Joseph Young, former indianapolis
real estate operator and at that
time owner of Hollywood (Fla)
hotels.
Ryan told Haymaker that Young
wanted to sell the property here
in order to open the hotels for the
season and this would be an oppor-
tunity to buy the acreage and start
a boom subdivision.
Haymaker then went to Dunn to
negotiate the loans from the COM
mon school fund.
The auditor declared that the
statutes prohibited him from max
ing a loan of more than $4,000 to
any individual.
County Has Obligation
The statutes provide that the
county auditor may lend money
from the common school fund upon
free and unincumbered real estate"
I'm to so per cent of the joint
assessed and appraised valuation.
Three appraisers fix the figures
and the recommendation is acted
upon by the auditor.
If the interest is not paid or the
property redeemed, it goes under the
hammer and the county must bid.
If there are no other bidders, the
county must buy the land at the
loan figure to protect the school
fund.
Haymaker then discussed the sit
uation with Ryan and it was decided
to break up the property in as many
parcels as possible, make assignment
Of title to the nineteen persons, col
lect the amount of the loans, and
buy the property.
Dunn appointed appraisers and
after their reports made the loans
upon the vacant lots.
Safeguards Fail to Work
But, despite safeguards set about
the loan provisions of the common
school fund by the statutes, it is
said they either were ignored or
openly flouted.
Examination of the abstracts re-
veals that ownership was not shown
in some cases when the loans were
made.
The nineteen persons said to have
permitted use of their names in the
transaction, financed by the tax
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