The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-02-01
SEARCHING PROBE INTO
CLOSED BANKS AFFAIRS
PRESSED BY JUDGE cox
State Savings Accepted
$500 Deposit After Crash,
Suit Charges.
HELD SHAKY FOR YEARS
Indiana National President
Tells of rundown at
Midnight Session.

Investigation of local bank
closings and receiverships
was pressed today by Circuit
Judge Earl R. Cox as, with
pointed questioning of wit
nesSes, he sought to deter
mine condition of the State
Savings and Trust Company
prior to its closing, April 2,
1880.
Within the last three days Cox
has heard testimony regarding af-
fairs of the Washington Bank and
Trust Company and the State COM
pany, both of which are closed and
are alleged to be unable to pay
depoSltors' claims in full.
Today's hearing was based on the
trial of suit brought by Arthur
Lynn and Charles HaSse to recover
a $500 deposit which they allege
was made at the bank after on
the day the institutions doors were
closed
Long Source of Worry
Cox questioning revealed that
condition of State Savings was an.
object of concern in banking circles
at least three years before the clos
ing date.
Fred G. Dickson president of the
Indiana National bank, told Cox that
he had not liked published state
mentS of the bank" for several years
prior to the closing.
The statements revealed an "un-
balanced" condition for three or
four years" Dickson said.
Dickson also told of being called
from his bed to attend a meeting
at 1870 on the night before the
bank closed. Officers and direc-
tors of the bank were present, as
were representatives of the local
clearing house and leading banks.
Banks Refused Aid
Discussion of the banks affairs
took place at the meeting, at which,
according to Dickson, it was said
the bank would have to close I'M
less its deposits were guaranteed by
other institutions.
Dickson said aid was refused the
bank by the representatives, who
shared his opinion that its condi-
ton was unsafe.
First witness in the suit was
Lynn, who related a purported con-
versation with Joseph Brady teller
in the bank, late or the afternoon
of the final day the bank func..
toned.
Lynn said he explained to Brady
that he wished to withdraw the $500
the next morning. When he re-
turned the next morning, the clos
ing notice was posted on the door
and the police we're restraining a
crowd, he said.
$500 in Savings Account
He also testified that he had a
savings account with the bank in
which was $1,000, representing the
accumulation of twenty-five years.
Cox asked Lynn at what time he
made the $500 deposit.
Il opened my account at six min
utes after A." Lynn replied. The
bank was closed for the day and
had to leave by a side door"
Lynn charged from the witness
stand that Scott Brewer, former
president of the bank, had ordered
him from the Office several months
after the closing, when Lynn sought
information regarding possibility of
recovering his money.
Seven days after the bank closed,
Lynn met Brewer on the street, and
was assured that he would get his
money, Lynn said.
Tells of Talk With Brewer
Other conversations with Brewer
in person and by phone we're relat-
ed by Lynn, who said that on each
occasion he was assured that his
money would be recovered.
You get out of my Office and stay
out" Brewer ordered on one occa-
sion, Lynn said About two years
later Lynn testified, he encountered
Brewer on the street and Brewer
said he had nothing more to do with
the bank and was mot responsible"
Other witnesses were Brady, who
substantiated Lynn's story Of the de-
post, and Eben H Wolcott, appoint
ed receiver Of the ban, May Is, 1880.
Receiver on Stand
Wolcott testified that at the time
of taking over the receivership he
was given custody of approximately
$4,000 in liquid assets, in addition
to notes and other paper included
among the banks assets.
Paul Roadarmer, attorney for
Hasse and Lynn, told the court that
ecorts to locate Brewer as a wit
ness had failed.
we were told he's out of the
city" Rhoadarmer said.
Cox has taken under advisement
a case involving the defunct Wash
ington company. Brandt c. Downey,
receiver Of the Washington bank, adj
mitted from the witness stand Tues
day that he diverted the banks
/ insurance business to his own and
other companies.
Cox announced he would rule
Friday in the suit for $4,000 DAM
ages against Downey, filed by the
j. S. Cruise Realty Company.
Downey admitted he had renewed
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