The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-05-05

Downey in an analysis of personal
collateral and real estate loans. Ac'
ording to the report, AZ per cent O
the total personal loans made by the
bank were to "ofiliates, employees
and directors interests
Other loans secured by deeds tC
real estate, originally owned BY
afiHates and officers. brings the
total loans made to inside inter.
ests" to so per cent, the report
stated.
Mortgage loans amounting tt
S256, 900, or 70 per cent of the total
also we're made to inside interests.
Garvin Meyer-Kise Receiver
How little the management was
interested in the general commercial.
needs of its commercial bank de-
partment customers is shown aptly
in this analysis" Downey COM
mented in the report.
Affairs of two other defunct banks
reached a temporary climax at con-
clusion of hearings Thursday
Thomas E. Garvin. former munic-
ipal court judge, was named re-
ceiver of the Meyer-Kiser bank ano
former officials of the State Savings
and Trust Company were ques-
toned.
Hearing on petition for receiver
ship for Pilgrim Properties, Inc
a real estate company organized
by Meyer Kiser bank officials, was
to end today.
Garvin's first day as receiver OF
the bank was expected to reveal
steps that will be taken in handling
the affairs which were removed
from the hands of liqiudating agents
Thursday when a petition of the
state banking department was
granted.
Cox Questions Mckinney
Charge made by Cox that COM
missions paid to the State Savings
real estate department we're handled
in a manner to bolster temporarily
the assets of the bank was eX-
pected to be followed by further in
Vestigation.
Cox evinced considerable intesest
Thursday during questioning of E.
Kirk Mckinney, works board presi-
dent and former manager of the
banks real estate department, and
numerous times took charge of the
questioning.
Attention centered on the $7,75O
commission refunded to the bank by
Klein 81 Kuhn, Inc, property man
agement agents, for sale of the
99-year lease held by the bank on
property now occupied by the Circle
Tower building, and on circum-
stances surrounding trade of farm
lands for stock of the Roosevelt
building, Washington and Illinois
streets.
George w. Kuhn Summoned
George w. Kuhn, president of the
property management company, was
summoned to court for questioning
regarding the commission tranSac-
ton.
AS I reember, I sat at Scott
Brewers desk and Endorsed one of
the checks back to the bank, at
Brewers suggestion" Kuhn testi-
fed.
He declared this his firm never
expected to receive more than $775C
on the transaction. Most of his
dealings with the bank were con-
Quoted through Brewer and, on only
a few occasions, did he confer with
the real estate department, Kuhn
said
In those few conferences did the
real estate department do enough
work to earn commission OF
$7750?" asked
Contract Is Interpreted
Il can say only that there was an
argument that I should receive the
full commission" Kuhn replied.
A clause providing that one-half
of the regular real estate board COM
mission would be accepted by Klein
and Kuhn was read Thursday by
Cox for McKinneys Interpretation
of its meaning.
Mckinney had testified that, on
his memory of amounts involved,
the regular commission would have
been approximately $15,900
The contract means that Klein
& Kuhn would accept half of that
amount, or $500, doesn't it?" Cox
LSked
Yes" Mckinney replied.
Then" why were two checks,
each for $7,75O, made out for the
commission?" interposed Homer Ell
lott, present bank receiver, who
was in active charge of the ques-
tioning.
It don't know. I had nothing to
DO with it" Mckinney replied.
But you were a director of the
bank, also, and authorized the
president to sign the contract?"
yes"
Mckinney said that although a
director and later vice-president
of the bank. he did not have an
active part in its affairs.
Farm lands traded for the build
ing stock were carried on the bank S
books at $248,287. Elliott said the
records showed.
DlQ YOU hIlOW bAAd0 VIC NOlAilllOAl
stock of the building was carried
by the owners on their books at
$4,000. yet your company took it
at SSOO,OOO?"
NO" was the answer.
Elliott pointed out that following
the deal the difference in the value
of the farm land and the paper
value of the stock was set up as a
profit of $4,000,
George A. Brewer, father of Scott
Brewer. testified that he received a
$4,000 commission for arranging the
farm-stock trade, but that the
amount was one-third of the reg
ular commission because of the
family connection"
He said he represented both par
ties in the transaction, but had a
suit pending to collect a $1,000
commission alleged to be due from
the owner of the stock.