The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-05-18
EX-RECE|vER
CHARGED With
FUND WASTE
Curtis Rottger Target Of
Suit by City Trust
DepoSitorS.

Further revelations of affairs oil
defunct local banks and their re-
ceivershipS were indicated today by
petitions filed in circuit court and
start of an audit of the Meyer
Kiser bank.
The Meyer Kiser audit will cover
all transactions, it was announced
by Thomas E. Garvin, receiver, who
with Charles D. Babcock, head OF
the depositors committee. obtained
an order for the examination from
Circuit Judge Earl r. Cox
Howard w. Painter, a certified
public accountant, is making the
audit, assisted by William M. Mad
den and Karl 1. Hamilton.
Probe of handling of the City
Trust Company by Curtis H. Rott-
ger as receiver is asked.
The petitions were filed with Cox
by two depositor- creditor corpora
tons, through their attorney, Joseph
Collier, alleging that $13,291.58 was
was ''dissipated" by Rottger, who
was receiver until February.
Ask $4,000 Judgment
simultaneously, suit was brought
in superior court one to collect $25,-
900 stockholders liability by Edward
A. digger, receiver of the Virginia
Avenue State bank, who was ap-
pointed lastesweek.
Defendants named in the suit are
the Fletcher American Company
and nine bank stockholders. The
company now in process of liquida-
ton, formerly was the bond and
securities house of the Fletcher
American National bank.
Judgment of $17,500 is sought
from the company and $1,000 each
from Wilson w. Godfrey, Walter j.
Hubbard Jr., William Iverson, C. R.
Keigh, Frank f. Rieman, Chester
L. Robinson. Harry T. Shaneberger
and Perry E. ONeal. Sum of $500
is asked from Alfred G. Mueller.
Petitioners for the City Trust
probe are the Puritan Hotel Com
pdllN dllo Jllc INldI htb-INcW OtIStY
Realty Company, owners of the
property at Market and New Jersey
streets, operated by the hotel COM
pany.
Cox declared that his previously
announced intention to tear the
veil of secrecy from receivership
affairs would be carried out with a
complete investigation Of charges
against Rottger.
Bad Exchange Charged
Principal charge in the petition is
that the receiver permitted solvent
securities, totaling $74,500, to be eX-
changed for alleged worthless securi-
ties of the City Securities Corpora
ton and other subsidiaries of the
closed bank.
Demand was made on Rottger for
return of $29,077.11 to the receiver
ship funds, with the allegation that
the amount represented excessive
expenditures for salaries on the re-
ceivers staff.
Another charge was that the re-
ceiver "wrongfully permitted $4,000
of the funds Of this trust to be paid
by Center Realty Company, an affil-
late of the City Trust Company,
to City Securities Corporation, an
affiliate of City Trust Company,
when the Center Realty Company
was not indebted Justly to the City
Securities COrpOratiOn "
Dividend Seton" Alleged.
It also was charged that more
than $1,000 in dividends due to the
trust were "set-off" against deposit
claims by corporations owing the
dividends.
Other bank matters coming into
the spotlight Wednesday concerned
the Belmont State bank, and the
Meyer-Kiser bank.
Garvin, replying today to criticism
of use of the elaborate offices Of the
Meyer-KiSer bank for the receiver
ship work, stated that the three
liquidating agents whom he sue
ceeds had paid rent on the offices
until Aug. l, and that a move would
entail more expense.
The rent is $1,000 a month, paid
from funds of the defunct bank.
Announcement was made by
Frank B. Ross, Belmont receiver,
that funds were available for pay
ment of deposits made since the
bank holiday.
A $4,000 deposit in the Fletcher
American was released to the re-
ceiver to augment cash on hand in
meeting post-holiday trust deposits
of, more than $1,000.