The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-05-17
BELMONT BANK
TO GET FUNDS
FOR PAYMENT
Money Will Be Available for
All Unrestricted De-
post Accounts.
BY JAMES A. CARVIN
Times staff Writer


Assurance that funds are avail
able to the Belmont State bank for
payment of deposits in trust since
the national bank holiday was given
today by Frank B. Ross, receiver,
Ross answered rumors that cash
balance in the receivership was in
sufficient to meet demands for I'M
restricted deposits.
Announcement was made follow
ing receipt of word from officials of
the Fletcher American National
bank that a $4,000 deposit would be
turned over to the receivership
without restriction.
Approximately S714659 is avail
able to the receivership for pay
ment of new and unrestricted de-
posts of $5,18133 since the bank
holiday, Ross announced.
1t was explained that the $4,000
deposit was placed in vaults of the
Fletcher American for safe keep
ing, following a customary policy
of holding cash at the Belmont to
an amount sufficient for daily
transactions.
DepOsitOrs to Organize
According to the bank examiners
report, which preceded closing of
the Belmont bank last week, cash
on hand was $2,146.59 Spread of
this information led to rumors that
unrestricted deposits would not be
paid
Depositors of the Belmont bank
will meet at Saturday in the Bel
mont theater for organization, it
was announced today.
Considerable comment has been
heard regarding the alleged declara-
ton of Belmont officials that the
institution was affiliated with the
Fletcher American National bank. "
William A. Boyce Jr., attorney
for a group of depositors, who Mon
day filed suit to collect 5000
double liability from the bank
stockholders, conferred today with
Prosecutor Herbert E. Wilson re-
garding newspaper advertisements
of the bank in which the claim of
afdliation was made.
Referred to Hagemier
Wilson advised Boyce to discuss
the matter with Oscar Hagemier,
grand jury deputy prosecutor, to
determine what action was war
ranted.
According to the bank examiners
report, 165 of the $50 shares of
bank common stock are held by the
Fletcher American Company, which
now is IN process of liquidation. Tt
formerly was the bond and stock
house of the Fletcher American
bank.
The examiners report also re-
vealed that James G. Seaman, au-
tomobile dealer convicted of con-
spiracy in criminal court and SEN
fenced two to fourteen years in In
diana state prison recently, obtained
$500 from the bank on sales con-
tracts which, the report charges, are
fictitious.
The examiners report also re-
vealed that $122,19720 in security
assets of the Belmont bank are
pledged with the Fletcher American
bank for notes totaling $102,44382.
Best of Assets Pledged
The loans were made over pc
Rod of time during which with
drawals drained cash assets of the
Belmont bank, it was said.
Best of the security assets were
pledged in the transactions, the re-
port reveals. Par value of the COL
lateral with the Fletcher American
is S126,000, only $4,000 more than
the examiners estimate in the re-
port
The securities remaining in the
bank vaults are appraised at ST.
548.21. although the par value is
$4,000, the report states.
Eliminating liabilities of $73.-
1851, representing capital stock of
$4,000 and surplus, undivided
profits and reserves of S48, 1851,
the liabilities of the bank approx
mately are 1888 ,293.14.
Assets are listed as: Real estate
loans. $71,564.35; personal and COL
lateral loans, S53,95l11; real estate,
17,894.07, and bonds and stocks,
S193,74541. The latter item in
cludes the S122,1972O pledged to
the Fletcher American.