The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-11-17

Findings in the report will
be turned over to Alvah
Rucker, special circuit court
investigator, who will deter
mine whether grand jury ac-
ton is advisable, according to
Thomas E. Garvin, receiver.
Mr.. Garvin emphatically denied
this morning that he had said grand
Jury investigation of the bank is
pending He pointed out that such
action is not within his province as
receiver, and that the determination
of future action rests with Mr..
Rucker.
Much of the information in the
auditors report was used in framing
questions asked Sol Meyer, former
bank president, in a public hearing
in circuit court this week.
The hearing was continued i1-
definitely on request Of Mr.. Garvln
and his attorney, Walter Myers, to
enable them to make further invests
cations.
Summary Is Given
Numerous facts of particular
significance" are listed in the OPEN
ing of the report as basis for possible
criminal action against the former
bank officials. The summary fol-
/ lows:
Through a systematic practice OF
manipulation of the accounts OF the
bank, and it's affiliated partnerships,
individuals, and corporations, the
directors and officers of the bank
made false statements of the banks
affairs.
1.-THE banks money was loaned in
large amounts to affiliated partner
ships, individuals and corporations,
and related corporations.
THE banks assets we're donated
to affiliated corporations.
Claim Assets Not Owned
Certain assets recorded as be-
longing to the bank, are not now
owned, and have not been ac-
counted for.
STAPLE assets belonging to the
bank, consisting of federal and mu-
nicipal bonds. and high grade stocks,
were sold, and the proceeds of such
sales we're used to acquire and sup
port bonds on Florida properties,
then in default and since de-
preciated to a great extent.
Bad loans and deprecated assets
we're carried at face and cost values,
in the accounts, and the officials
failed to charge off such losses and
deprecated amounts as they oc-
CURED.
Money was advanced to- Indiana
realty companies, with which to pay
preferred stock and dividends COM
ing due, in which it was then ap-
parent that such advances consti-
tuted long time loans and specula-
tive transactions; the preferred
stock paid off with such cash ad-
vances was subsequently turned
over to the bank. in payment Of the
advances, and the due dates of the
stock were then extended, and such
stock now is held by the receiver in
a large aggregate amount; all Of
which apparently was done to sup
port the said preferred stock issues,
originally sold by the bank to its
customers, and which had faced de-
fault.
Large salaries were paid officers
Of the bank, at the time when the
bank was in failing condition.
Borrowing Is Charged
Large sums of money were Dor
rowed from other banks, in order to
keep the bank open and going, with
the officials pledging as collateral
security for payment Of such loans.
the best and apparently hand picked
assets belonging to the bank, and
apparently in larger amounts than
was customary or necessary; and
furthermore, Il was not known from
published reports that such assets
were so pledged"
Under the heading "liquidating
period" the audit report discusses
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