The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-06-16
MEYER-K|SER
HUSH LAID TO
Ex-BANk Chief
Symons Advised Silence on
Progress of Liquidation,
Witness Says.
EVIDENCE IN CONFLICT
Former Vice president and
Other Officials Disagree
on Profit Claim.

Information regarding progress of
liquidation of the defunct Meyer
Alser bank was withheld from the
public at suggestion of Luther Sy-
mons, former state banking COM
missioner, it was alleged in circuit
court today.
Ferd S. Meyer, former vice presi-
dent and liquidating agent, testified
that it was his understanding that
Symons suggested that announce
ments be withheld because of gen
eral business conditions"
The allegation was made during
questioning of Meyer by William B.
Miller, attorney for 6epositors, who
is assisting Thomas E. Garvin. re-
ceiver, in obtaining information on
the banks affairs.
Meyer also contradicted previous
statements issued by j. j. KiSer and
Mel Cohn. the other two liquidating
agents, that the liquidation had
been carried on at a profit.
Says Cost Was High
"Mark-off" of approximately SOL, =
600 in security assets, and an actual
operating loss of $1,000 brought the
total cost of the liquidation to $685.
600. Meyer admitted.
Cash surrender value of a 500, 900
insurance policy carried on the life
of Sol Meyer, president, amounting
to $4,000, was added to the income
of the liquidation, to show an ex-
cess of income over expenditures,
according to the records.
Miller questioned Meyer regarding
his willingness to pay liability on
his stock in the bank.
Now is not the time to talk
about that" the witness replied and
refused to answer further without
advice of counsel.
Will EndeavOr to Pay
After a short recess, during which
Meyer conferred with Paul Y. Davis,
his attorney, he returned to the
witness stand and declared:
After a judgment has been OBJ
tanned legally, I will endeavor to
pay, to the best of my ability"
The charge against Symons was
made when Miller asked Meyers
opinion regarding appraisal of
assets made by the banking depart
ment. showing more than 100000
in liabilities over assets.
Meyer indicated that he differed
with the banking examiners regard
ing certain assets.
Then you think the Meyer-Kiser
bank still is solvent?" Miller asked.
why don't you contest the receiver
ship suit brought in this court by
the banking Department."
Blamed on DepcSitors
I'VE decided it was not worth
while to continue our efforts, in the
face of the dissatisfaction expressed
by certain group Of depositors,
Meyer replied.
The audit which resulted in the
receiverShip was made after de-
positors organized in an attempt to
get information which it was charged
had been withheld for two years
Spurred on by discovery of
$545, 900 new assets in the defunct
bank. attorneys will continue their
Investigations.
Disclosure that a secret reserve"
of 100000 was maintained in the
bank without showing on any rec
ordS except income tax reports was
made by Meyer Thursday
A portion of the reserve fund and
other assets to total of S545, 900 is
the banks share in a 100000 cor
poration formed by members of the
Meyer and KiSer families, the ques-
tioning revealed.
sKnown as the Smetal Corpora
ton, a name derived from the legal
term Sol Meyer ct al. the organiza-
ton was formed to take title to real
estate and other assets belonging to
trust created by the two families,
principal stockholders, Meyer said.
Assets Are, Purchased
When the Institution began to
tottet under pressure of cash drain
age from Withdrawals, slow assets of
the bank we're purchased with cash
PAOAQNSQ EAANeltC 4OA IQllCn
of the stockholders. Meyer testified
Present value of the new assets,
represented by the banks interest
in the Smetal Corporation, have not
been determined yet, according to
Garvin, but an immediate appraisal
will be made to ascertain the cash
gain Of the receivership funds.
The secret reserve" was created
by Sol Meyer and Sol Kiser, mem
bers of the partnership which con-
trolled the bank and paid its oper-
ating expenses, the younger Meyer
said.
The fund was created for the
exact purpose for which it later was
used-that of providing cash when
needed by the bank" he said.
Possibility that Luther SymonS
and his son, Merwin Symons, who
was employed in the bank for flf-
teen months by the iquidating
agents, will be asked TO testify at
the hearing, was indicated by Gar