The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-05-22
COURTS WILL
ACT IN CLOSED
BANK INQUIRY
Officials of Two DefunCt
Institutions Will Be
Called to Account.
WILSON PROBES CASES
Prosecutor Says Evidence
Will Be Laid Before
Grand Jury.

y " ,
criminal as well as civil law gill de
mand an accounting from officials
of defunct local banks, it appeared
today.
At least two transactions of the
State Savings and Trust Company
will be given to the grand Jury
Prosecutor Herbert E. Wilson an
nounced.
Charges of criminal and dishon-
est acts" against former officials
also will be Investigated by the
grand jury at the direction of Will
son, provided newspaper accounts
are true" Wilson said.
My only knowledge of the acts
is through reading the newspapers. -
Wilson said. LAS soon as 1 have
had opportunity today to examine
the records. 1 will take whatever
action is warranted. If newspaper
accounts are true, the grand Jury
will investigate"
Cox Assures Action
Circuit Judge Earl r. Cox, who
precipitated the sensational dis
closures Of recent weeks, announced
that civil action would be taken to
recover from bonding companies.
At the time of the closing of the
Washington bank, officials and en-
ployes were covered by 100000
bond, evidence in circuit court dis
closed Friday. Suit will be started
Immediately by Samuel Miller, at
torney for Oren S. Hack, present
receiver.
Charges that depositors in the
bank lost more than $1,750,0O0
through acts of the officers were
brought to light Friday, when Hack
petitioned for instructions regard
ing suit on the bond.
No Action Taken
1t was revealed that two years
ago, an audit showed the loss, but
that no action was taken by Brandt
c. Downey, Sformer receiver
Downey testified that he left action
to Earl R. Gender, his attorney, but
that Gender preferred to obtain a
deed to the home of j. Edward
Morris, former bank president, in
restitution.
Temporarily crowded from the
spotlight by developments in the
other two banks, affairs of the re-
naming institutions in the group
of four major closed banks also
will be considered this week.
Charges Of depositors that Curtis
Rottger, former receiver of the
City Trust Company, "dissipated''
more than $125,OOO of trust funds
will be aired in circuit court.
Meyer Kiser Case Up
Hearing also will be conducted
on a petition Of former liquidating
agents of the Neyer-Kiser pallk to
obtain records and other docu-
ments of bank departments.
j. j. KiSer and Melville S. Cohn,
two of the former bank officials who
were in charge of the liquidation I'M
til recently, have petitioned for the
records to act as registration and
fiscal agents for securities handled
by the bank.
The attempted action is opposed
by Thomas E. Garvin, receiver, and
William j. Fahey. attorney. Garvin's
opposition to the move centers on
the contention that handling of reg
istration and other service by a pri-
vate business will remove profitable
business from the receivership.
Belmont DepositOrs Active
Fahey's petition in the interests
of Mrs. Margaret Cato, 221 East
Henry street, holder of approx
mately $4,000 of bonds issued by
the bank, represents an attempt to
secure information regarding the
securities.
Emphatically voicing determin-
alton not to sit by while we lose
our money" 1911 depositors, with
$4,000 in the closed Belmont State
bank, laid plans Saturday for an
aggressive organization and protec-
ton of their claims.
At meeting held in the Bel
mont theater, a depositorS' commit
tee was elected and empowered to
act by employing an attorney, and
an accountant if necessary.
Members of the committee are A.
E. Moore, Harry Markun, DR.. Will
liam L. Jennings, c. A. Klingen-
smith and Walter Gingery, principal
of Washington high school.
Numerous speeches by depositors
exhibited varying attitudes regard
ing closing of the bank and APP
pointment of Frank B. Ross as re-
civer.
Practically every speaker referred
to his understanding that the Bel
mont bank was affiliated" with the
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