The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-03-02
BONDS BOUGHT
FOR VETERANS
PROVE COSTLY
Securities Purchased in
1880 for III Ex-SoldierS
Now in Default.
CONTINUED From Page One)

necessitated the appointment of
receiver.
After examination Of the books
of N1e Grant county recorders Of
fee, guardianship files in the court
clerks Office. and a probe report
made by John z. Buenting, asSo-
ciate attorney Of the veterans bur-
eau in indianapolis, 10 his superior,
B. w. BreedlOve, it is revealed that
Grants red-letter days might be di
vided into two classes.
First-On Sept. Is the county re-
corder's Office shows that fifty-four
mortgages were assigned TO trust
estates and that the majority of
those trust assignments we're made
to World war veterans under guar
dianship to the Grant Trust.
Second-On Sept. 80. 1880, approx
imately forty-six petitions to invest
funds of wards Of the court in
bonds. mortgages, were filed in the
circuit court and approved by Judge
o. D. ClaWson.
Bought Back in 1927
From an examination of the
ledger of the Grant Trust by vet
Grams bureau attorneys it appears
further that some Of the mortgages
assigned on Sept. 25. 1880, were
bought for the veterans account as
far back as 1927 without a proper
court order.
Additional search by The Times
and comparison with court records
and veterans bureau reports show
that petitions for investment of
thousands of dollars in securities
were filed on Sept. 30, 1880, and
that those securities in many in
stances had been purchased for the
veterans estates prior to Sept. 30,
and even prior to 1890
Heavy on the list of the securi-
ties, for which investment petitions
are shown in the veterans trusts,
is that of the Chateau apartments,
1901 Maple road boulevard, Indian
apolis.
The Chateau bonds were distri-
buted to the extent Of S37, 500 in the
guardianship Of insane veterans in
the Grant Trust.
Scan StatehOuse Records
The I929-l93O Marion city direc-
tory lists Robert j. Spencer ST.. as
chairman of the Grant Trusts
board of directors, and R. J. Spen-
Ger Jr., as president; R. P. Kiley,
present Marion beer importer, as
treasurer, and Marshall Williams as
secretary.
Records at the statehouSe at In
dianapOliS show that Robert j.
Spencer Jr. is listed as one of the
incOrpOrators of the Chateau apart
ments and that a Robert J. Spencer.
is president.
The regional Office of the veter-
ans bureau in a report states the
Chateau apartment Bonds are Sc
cured by a first mortgage on an
eighteen-apartment house in In
dianapolis and the apartment was
originally built by DR. Harold and
r. J. Spencer Sr. in 1927"
1t was the original plan" con-
tinueS the veterans bureau report,
ito sell the apartments to individ-
uals on the cooperative plan. The
original fiOtatiOn of these bonds was
in the sum of 100000 and were is
sued by the Marion Title and Loan
Company as trustee.
Income Around 81 100
AT this time continues the re-
port issued in July, 1888, there are
bonds in the sum of $4,000 out
standing. The bonds which became
due November, 1882. and May. 1888.
were defaulted. as we'll as the in
|terest on same, due May /, 1888.
The monthly income from rentals
is approximately S1,1O0 gross"
Mr.. Buenting'S report to his
superior, Mr.. Breedlove. chief at
torney for the regional office of the
veterans bureau. continues with:
In connection with this invest
ment 1 contacted DR.. Harold and
asked him whether he knew any
instances where Mr.. Spencer had
ordered bonds owned by him. or by
the bank, placed in the veterans
guardianShipS and he stated that
he did not. but had been informed
that some of these bonds had been
placed in trust estates held by the
Grant Trust and Savings Company.
He further stated that at all
times up to 1880 he regarded these
bonds as a very high class invest