The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-05-15
OPEN DRIVE TO
FLOAT BANKS
STOCK ISSUE
Fletcher American Patrons
Receive Instructions
of Reorganization.
CIVIC HEADS TO MEET
Business Leaders of CITY
Summoned to Farley
on Thursday.

Meeting of business and civic
group leaders Of the city has been
set for 4 Thursday by Louis j. Bo-
rinstein, Chamber of Commerce
president, to discuss organization of
the new American National bank.
Although the meeting announce
ment came as active campaign was
started to raise $1,80O000 in stock
subscriptions for the new bank,
which will take over Fletcher
American bank assets, Borinstein,
IN his invitations, pointed out the
meeting was not called ito request
stock subscriptions, but to discuss
problems of mutual interest"
The more than 10000 depositorS
In the old bank today received COM
munications explaining the reor-
ganization plan worked out by the
federal government which mem
bers of the reorganization COM
mittee spent the weekend prepar-
ing for mailing.
Three Are Trustees
The letters included blanks for
dcpOSitors to agree to the plan of
freeing 80 per cent of the present
restricted accounts, ard impound-
ing the remaining 30 per cent until
$10,670,000 in nonlqud assets can
be liquidated by three trustees.
These trustees are Frank c. Bopp,
bank employe; Roy c. Shaneberger,
Progress laundry president, and
Lucius S. French, Trimble Realty
Company
In his invitation to civic leaders
to attend the conference Thursday,
BOrinstein said:
Frankly, the American National
bank must be organized for the
good of the city and state. Oppor-
tunity to do so has been afforded
by governmental agencies on a basis
that will assure an institution of
great strength and stability. Fail
IRE means that a large amount of
deposits in the Fletcher American
National bank and its many CORE
spondent banks would be tied up
for a very long time.
Business Would Suffer
1T means, also, the forced liquida-
ton of loans of the present institu-
ton at probable loss, and such an
eventuality would be most unfor-
tunate to business.
Your business and that Of many
other citizens would suffer. Many
Of the smaller communities. whose
banks are closed, in part, at least,
due to the fact this bank has not
yet reopened, would be subjected
to great distress.
The bank officers and directors
are meeting their responsibilities
fully and doing all in their power
to effect the organization promptly.
This, however, is more than just an
affair of this bank or its officers.
1T is a civic problem of direct
concern to the entire community. 1t
must be met promptly and fully.
Only teamwork of such loyal cit
liens as yourself will assure that
indianapolis successfully passes this
crisis"
One-Third Is Pledged
Depositors also we're Informed
they will be permitted to subscribe
for stock to the extent of half the
amount of their freed accounts, but
may not subscribe on the strength
Of their impOunded accounts.
One-third of the stock has been
pledged by stockholders in The old
bank. Sale of the stock is re-
quired by the government. which
through the Reconstruction Finance
Corporation is taking $1800000 in
preferred stock and making the
bank a $4,000 loan.
Consent OF depositors holding rs
per cent of the present restricted
deposits must be obtained before the
plan can be effective.
Bank officials are confident that
eventually depositors will receive
100 per cent of their restricted de-
posits.