The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-06-30

er, under whom the Washing
Mr.. SymOns is denounced
as having been as culpable as
the bank officials and recon-
mendation is made that
stricter laws govern those re-
SponSible for the conduct of
the states banks and that
close attention be paid to
their selection.
The Washington closed its doors
Oct. II. 1880, with S2,525,8 9l on de-
post. of which, Mr.. Rucker believes,
hardly a pittance ever will be re-
paid the depoSitors." He adds that
the bank had been insolvent so long
before this date that Mr.. Symonds
must have known It.
With reference to what Mr.. Ruck-
er calls the regrettable suicide" of
J. Edward Morris, president of the
bank from 1917 to its closing, the
special investigator quotes Daniel
Webster:
Suicide is confession"
The banks books showed $751;
S38 assets and So, 325, 034 in liabilities
with a net of S436,803 assets above
liabilities when it closed, according
TO Mr.. Rucker. who charges that the
excess was entirely fictitious"
Charges assets" Were False
Mr.. Rucker alleges that actually
at least sI.751,O92 of the assets
we're false, leaving the actual essets
worth no more than S2,O1O,746 ana
creating an insolvency of at least
sI.314.2Ss as of closing date.
His report recommends proSecu-
ton primarily upon what he terms
acceptance of deposits while the
bank was insolvent and states that
the officers and at least one director
should be indicted and tried for this.
He mentions specific receipts OF $780,
OIL for checking accounts on two
DAYS Just before the closing.
OF the assets which went into the
receivers control. he says:
IF the receiver gets % cents on
the dollar for the best of the great
mass of frozen assets now in his
hands. he will be doing far better
than one can anticipate.
Instead of S2010,746 Of real as
sets. s750.0OO would be more con-
Sonant with the facts.
Compared to Ponzi
The report. which tells in great
detail how the banks funds were
filtered out through corporations IN
which its officers and directors we're
the controlling factor. points out
that in the first three and half
wears. two receivers have been able
TO realize only S5OS, go on the most
Huuidable assets.
The affiliated companies sold their
stock to the bank, borrowed heavily
from the bank and used the bank
in every conceivable manner, Mr..
Rucker charges.
Some of these corporations paid
dividends TO their incorporatorS,
principally the banks officers and
directorate, out of the proceeds OF
the sale of their stock and loans
from the bank. Mr.. Rucker adds,
comparing the financial procedure
involved to that of the notorious
Ponzi. famous as a Swindler a gen.
Grafton ago.
One of the corporations, the
Washington Investors. formed by
the stockholders OF the bank to take
over their stock in that institution
and in several Of the afiliates.
Officers Are ASSailed
Mr.. Rucker SAYS one reason for
its formation was the desire OF the
banks stockholders to escape double
liability in the crash which, he be-
lieves. they foreSaw. Loans totahns
S266. 100 were outstanding 10 this
corporation and a subsidiary when
the bank closed.
other afiliates dabbled disas-
trously in real estate. the report
reveals. with the bank the eventual
loser in all cases where financial
disaster overlook the affiliate. as it
usually did.
Mr.. Rucker described many OF the
banks advances TO the afflllates,
either directly or through what we're
known in the bank as trust ad-
vsnces." as embeZZlemeHt and rec
commended prosecution for them.
The officers" he told Judge Cox,
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