The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-03-06

A4AftS blAlCllS VI DOA fCC- III
trusts Of insane ex-sOldiers.
B. w. Breedlove. chief attorney of
the Indianapolis bureau, says his
records show in trusts held at one
time by the Grant Trust and Saw
ings Company, now in receivership,
that the above amount of invest
ments are shown on the present
guardianship records against $751;
500 in properly invested funds.
Indianas law on guardianship
provides that trusts should be man
aged for the best interests Of his
ward"
The degree of care to be exer-
cised by guardians is the same as
prudent persons exercise in their
own affairs" cites a case, Vain
wright VS.. Burroughs, 81 N. E.
1T is the duty Of a guardian as
far as practicable to keep the funds
OF his wards so invested that they
will draw interest. and to use due
care in making investments, AYERS
a decision in State VS.. Sanders, 81,
Ind. 562.
In the same case is the citation,
''use by a guardian of the funds OF
the ward in his own business is a
conversion Of funds"
No Bonds Were Needed
Up to the passage of an act in
1881 governing specifically war vet
Grams estates under jurisdiction Of
a guardian it was not necessary for
banks, when acting as trustees. to
give bonds.
Not only guardianship now in liti-
cation in the Grant circuit court for
war veterans was bonded by the de-
pository acting as parent for the
ward
Mr.. Breedlove says attempts to
pass the act in legislatures prior to
1881 met with opposition from bank
erS of Indiana.
They had lobbyists in the legis-
latures who watched judiciary COM
mittees for bills of that type and
were quick to oppose the act" eX-
plains Mr.. Breedlove
But we got it through both
houses in 1881" he chuckled.
How Did You Do IT,"
After it was passed a certain
banker came to me and said, Well
you put it over. How did you do
it? No bill like that was reported
out of the judiciary committee"
I told him." added Mr. Breed
love. that it was reported out by
the World war memorial commit
tee"
But what has a World war me-
mortal committee to do with the
guardianship of insane veteranS?"
replied the chagrined banker.
The new veterans act prevents
overcharge of guardianship fees by
trustees by setting a maximum of
5 per cent of the estates income
as a fee unless amended by Spe
cial court hearing.
It provides that bonds must be
made by banks as well as indi-
viduals in an amount not less than
the sum then due and estimated to
become payable during the ensuing
year"
Bonds in Full Required
Mr.. BreedIove now requires the
present Marion banks. First Ma
tional in Marion and Marion Ma
tional of Marion. to give bonds in
full for the funds on hand and due
in the estates of World war
veterans.
The act precludes the investment
of a veterans funds in enterprises
in which the guardian may have
interest with Every guardian shall
invest the funds of the estate in
securities in which the guardian has
no interest
One OF the main points of law
proving a bone of contention be-
tween attorneys for the First Ma
tional bank of Marion (now in re-
ceivership) and Mr.. Breedlove is
the extent of the liability of the
First National (the old bank in
taking over the veterans guardian
ships from the defunct Grant Trust
and Savings Company
ATTORNEYS for the old First Ma
tional declare that in accepting the
trusts the bank took them as
guardian and executor. but only for
'safekeeping and accounting.
Court Records Scanned
Mr.. Breedlove and attorneys for
the Kew First National hOwel er,
charge that the liability Of the old
bank is on a par with that of the
Grant Trust and that the old First
National had knowledge of the
shattered securities in the veterans
estate in that Marshall Williams.
trust officer in the Grant. became
trust officers of the old First Ma
ton.
Mr.. Williams has sworn TO a great
number of the court reports on con-
ditions of the estates Throughout
the past ten years, Grant circui,
court records show.
Some directors and officers from
the old Citizens Trust and Savings
Company are followed into the
merger with the Grant Trust and
thence into the First National Of
Marion and now into the present
institution. First National in Marion.
is found in a perusal by The Times
of directories and bank statements
Of officers.
It also is revealed that some OF
these officers and directors were in
corporators Of companies or officials
in firms whose securities were
placed in veterans estates or were
purported TO have been purchased
for their estates by the guardian
bank. In other instances some O.
the bank officials were interested
financially in those companies foc
ing bond issues.
Listed as Secretary Treasurer
Beginning with the original Officers
of the Citizens Trust and Saving
. bank it is shown that Willard e.
kins, president OF that bank at ont
time. later became acting vice
v1reeiSey,t IF the Grant Trust