The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-05-20


nOunced.
Wilson declared that he
would ask Circuit Judge Earl
+. Cox for all available rec
ords Monday and would begin
his investigation at once.
Cox announced that he intends
to pursue the civil aspects of the
case in order to recover 100000 for
the dcpositors from the bonds OF
the officers
Criminal Acts Charged
Disclosure of acts of dishonest
and criminal nature on the part OF
the officers came during a hearing
before Cox Friday for instructions
regarding suits to be filed by Oren
S. Hack, receiver.
For two years the information has
rested in the files of Brandt G.
Downey, former receiver, the evil
dence disclosed, although the in
formation was compiled ito serve
as a basis for action he said.
When informed today that Harry
o. Chamberlin, former circuit
court Judge, who appointed Downey
receiver, had declared that all rec
ords had been turned over to Cox,
the present judge said;
The only information I had of
the audit of the Washington Bank
and Trust Company was huge vol
ume filled with figures. The index
and summary, which fatty declared
what the charges were, never came
into my possession
Records Given Hack
Hack received the records and
audit from Downey at the time OF
taking over the receiverShip.
The acts with which the former
officials are charged range from
sale of worthless paper to the bank
to neglect of business in general.
All are covered in report by
Spradling. Carter 81 Jordan, local
accounting firm, two years ago at
the request of Downey.
Three witnesses were on the
stand during the hearing and the
testimony of each revealed knowl-
edge of the manner in Which the
bank affairs had been handled.
Howard w. Painter, accountant
identified the audit as the same
which had been examined by him
at request of Hack. He declared
he had examined the bonds cover
ing officers and employees and that
all contained provisions for serving
notice of default within a limited
period after discovery.
Discussed 1t With Attorney
Downev admitted from the stand
that he had discussed the possibility
of suit on the bonds with Earl r
Gender. his attorney, but had left
the decision to act with the lawyer
Downey admitted that the audi
tors report had been prepared to
serve "as a basis for action against
the officers
Did you ever make the report
public?" Cox asked.
Downey explained that two copies
of the audit had been shown to
Chamberlin.
Judge Chamberiin said he did
not want them in his files, so they
were returned to Gender" Downey
said.
Who is to blame for not taking
action on the bondS?' Cox asked.
Downey replied that Gender
caused the delay but added that
Gender had definite reasons of his
own for not taking action"
We'll, if the statute Of limitations
had expired and the period for
suing on these bonds had lapsed,
causing this trust TO lose 100000
whose responsibility would it be?"
Cox asked.
Gender Gives Explanation
II don't know" Downey replied
"You don't know?' Cox repeated
turning back to his desk.
Gender later testified he wished
to give the court his reasons for not
taking action.
He explained that it was his
opinion that the board of directors
of the bank. in passing on acts by
the officers, including Edward Nor
ris, president, who later died of car
bon monoxide poisoning at his Will
liam Creek home, and Mark V
Rinehart, vice president, had failed
in not acting on the bonds.
do you mean that the fact that
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