The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-04-26
CLOSED BANK
RECORDS WILL
Be GIVEN JURY
State Savings Data Ordered
Brought to Court by
Judge Cox.
SPECIAL HEARING SET
Former Officials Will Be
Called for Questioning
Next Wednesday.

Records and data compiled in an
audit of affairs of the defunct State
Savings and Trust Company were
ordered into court today by Circuit
Judge Earl r. Cox, who announced
the data would be turned over to
Criminal Judge Frank P. Baker "at
the earliest possible moment"
On receipt of the records, Baker
will give them to Prosecutor Herbert
E. Wilson for investigation by the
grand jury of transactions in funds
of the bank, and its receivership
under Eben Wolcott.
Mrs. Ida Broo, who audited the
records, will be present to explain
her findings, Cox said.
Special Hearing Set
Meanwhile, preparations were be-
ing completed for a special hearing
in circuit court, to which officials
of the bank and other witnesses will
be subpenaed. Date of the hearing
was set for next Wednesday, after
Homer Elliott, present receiver, pc
titioed for permission to summon
witnesses.
Another angle in Cox probe to
tear the veil of secrecy from af-
fairs of local closed banks devel-
oped today, when Richard A. Nc
Kinley, state banking commissioner
announced that an audit of the
Meyer-Kiser bank had been COM
pleted.
The audit was turned over to Nc
Kinley by Morris E. Stultz, who had
charge. Contents will not be re-
vealed until the audit is ordered
into circuit court, where a receiver
ship has been asked.
Hearing Is Continued
Cox announced that because OF
press of other matters, hearing on
the receivership, scheduled fol
Thursday, would be continued until
May 3, the same date of the State
Savings investigation.
Cox exhibited two checks which
he said were given to him by Kari
I. Hamilton, depositors' committee
auditor, showing Endorsement of a
$7,750 commission paid by the
bank.
According to Hamilton, the COM
mission on sale of a 99-year lease
held by the State Savings on the
present site of the Circle Tower
building was SIS, $500.
One check for ST, $50 is made out
to Klein & Kuhn, property manage
ment firm, and date Dec. %, 1928
An Endorsement of the check to the
State Savings and Trust Company
appears over the signature of George
Kuhn. Below it are instructions to
deposit to the account of the real
estate department.
Trace Refund Charge
The other check, for similar
amount, dated Dec. 81, 1923, made
out to the Property Management
Corporation, bears a stamped in
dorsement for deposit in the
Fletcher American National bank.
Officials of the bank will be ques-
toned regarding the transaction
and the Endorsement of the check
back to the bank, in an effort to
obtain information on Hamilton's
charge that half the commission
was refunded and ctn not be traced
into the funds of the bank.
Wolcott, E. Kirk Mckinney, works
board president and former real es-
tate manager of the bank; George
Brewer, father of Scott Brewer,
banks president, and other officers
may be summoned in the open court
probe.
Following receipt of letters Tues
day from Cox by Baker and Wilson
advising of information disclosed in
probes by depositorS and Cox, an
nouncement was made that the
grand jury would investigate.
Judge Makes Charges
In his letters, Cox charged that
assets which should have been in
the receivership either have been
sequestered or distracted from the
general fund which the receiver
took over"
According to Cox, statements to
the bank examiner did not contain
a $125.000 note which was the
banks liability, assumed in a rea,
estate deal when farm lands were
exchanged for 600 shares of COM
mon stock in the Libby Realty
Company, holding company of the
Roosevelt building, Washington and
Illinois streets.
The depositors charged to Cox
that Wolcott had paid approx
mately $4,000 principal and inter-
est on the notes out of receivershir
funds, but later abandoned the
money.