The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-11-03
VAN NUYS AND
EARL PETERS
SPLIT OPENLY
Senator Voices Protest on
Choice of Ft. WayNe
Bank Receiver.
BY WALKER STONE
Times Special Writer

WASHINGTON, Nov. 3.-Senator
Frederick Van Mugs today broke
openly with r. Earl Peters, Indiana
Democratic chairman, and National
Chairman James A. Farley in con-
troversy over appointment Of a re-
ceiver and attorneys for the old
First National bank of Fl. Wayne.
The controversy was brought into
the open when Currency Comptroller
J. F. T. OConnor, apparently on
advice of Mr.. Peters and Mr. Far
ley, today appointed E. G. Miller, Fit
Wayne lumberman, to serve as re-
ceiver for the bank, said to be the
largest in northern Indiana.
Appointment of Mr.. Miller as bank
receiver, it is charged. was made
with the understanding that the law
firm of Peters & Leas of FIT.
Wayne, of which Earl Peters is the
senior member, would be named at
torney for the receiver.
Up until today, since closing it's
doors, the bank has been under the
supervision of Frank Cutshall presi-
cent, who has been serving as con-
servator under authority of the
comptroller.
Served as Attorneys
The law firm of Eggeman, Reed &
Cleland, FIT. Wayne, has been serv-
ing as attorneys for the conservator.
1t is the charge of Senator Van
Mugs that the comptroller ignored
standing rule by naming as re
ceiver, a resident of the community
in which the bank is located.
Senator Van Nuys had recon-
mended appointment of J. B. E. La
plante, Vincennes, a former bank
president, who, according to the
senator's office, now is serving as
the federal governments liquidating
agent for three banks in southern
Indiana.
From Los Angeles, where Senator
Van Mugs has gone as a member of
senate subcommittee investigating
federal court receivership practices.
the senator today sent the follow
ing telegram to Postmaster General
Farley:
Thousands Interested
I hereby desire to protest for
mally your appointments of receiver
and attorneys for old First National
bank of Fit. Wayne, Ind. This re-
ceivership involves more than thirty
thousand depositors and fourteen
hundred stockholders. The aggre-
gate frozen deposits exceed
$6,000000. 1 continuously have de-
manded that the receiver and his
attorney for this bank be selected
solely upon the basis of efficiency
and experience. You have ignored
completely my recommendation on
behalf of the business interests of
the city of FIT. Wayne and the
thousands of citizens of that CITY
whose dearest interests are involved
in this receiverShip. I am, as afore-
said, hereby filing my formal pro-
test to what 1 believe to be repudia-
ton of our repeated promise of a
new and square deal to the citizen
ship of Indiana"
1t is understood that while Sen
ator Van Mugs was in INDIANAPOLIS
a couple of weeks ago, State Chair
man Peters came to Washington and
Wrangled out of Controller O'Connor
and Mr.. Farley a promise to name
Miller receiver for the F't. Wavne
bank, in order that Peters law
firm might become attorneys for the
receiver.
Charge Is Denied
To Senator Van Mugs protest. it is
said, the comptroller and the post
master-general replied that the
comptroller therefore had dispensed
all his Indiana patronage on the
basis of the senator's recommended
tlons, but that in the instance of
the FIT. Wayne bank it was felt that
Peters should be recognized, in as
much as Fit. Wayne is Peters home
town.
The feud between Senator Van
Mugs and Mr.. Peters became known
early in the summer when Senator
Van Mugs engineered the appoint
ment of Stephen B. Fleming. one of
Peters enemies, as manager of the
Fl. Wayne branch of the Federal
Home Owners Loan Corporation.
The senator's charge that the
comptroller had disregarded rule
in the appointment of a resident re-
ceiver today was denied at the
comptrollers Office, where it was
said that there is no rule as to the
residence or non-residence of a bank
receiver.
Served as POstmasteTs
Mr. Miller, a member of the Pc
tiers faction in FIT Wayne Demo-
cratic circles, served as postmaster
of that city during the administra-
ton of Woodrow Wilson.
1t is likely that in this contro-
versy the Allen county Democratic
organization will side against Pc
tiers, since Samuel Cleland of the
firm of Eggeman, Reed g. Cleland,
attorneys for me conservation. Is