The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-02-20
EMBEzzLING
CHARGED TO
BANK HEADS
Four Officials of DefunCt
Meyer KiSer Firm Are
Named.
THREE AFFIDAVITS FILED
Bank InSoIvent Since 1928,
Is Claim: Casualty
Company Sued.

OOitil(NiiJ ONSNs
Three afhdavits charging four
former officials of the defunct
Meyer-Kiser bank with criminal
actions were signed by Thomas Gar
win, bank receiver, in circuit court
today.
From circuit court, the affidavits
we're sent to criminal court, and
eventually they reached the hands
of Prosecutor Herbert E. Wilson,
who indicated he thought the
charges properly should be gone in
to by the grand jury, but promised
to consider the affidavits in the next
few days.
The afidavits were submitted to
Circuit Judge Earl r. Cox by Alvah
J. Rucker. special investigator IN
affairs Of banks in receivership, fol-
lowing the reading in court today of
a lengthy partial report disclosing
evidence obtained by Mr.. Rucker in
a f1ve-mOnths probe into the bank S
operations.
Defendants named in the afhdav-
its are Sol Meyer, president, and
Julian J. Kiser, Melvin Calm and
Ferd S. Meyer, vice presidents.
Casualty Company Sued
The affidavits charge the former
officials of the bank with cOnspir-
ing to accept deposits in an insolv-
ent institution, with accepting de-
posts in an insOlvent institution,
and with embezzling funds from the
bank.
Launching criminal action fol-
lowed by few hours a civil suit
against the Fidelity and Casualty
Company of New York. seeking to
recover approximately $1,250,000 on
bonds of the four former officials of
the Meyer-Kis bank.
This suit was filed by the re-
ceiver under direction of Judge Cox.
1t charged the officers dissipated
large sums of money through dis
honest acts" and failure to perform
their duties as officers and directors
for which they were bonded.
They were charged with making
unauthorized loans, contributing the
banks funds to the Meyer-Kiser
Bank Realty Company, and trans
ferring S1l9, 1853 of the banks funds
to the Meyer-Kiser bank of Miami,
Fla.
Other Banks PrObed
The court action is the result of
five months investigation of cir
CumstanceS of the closing of the
Meyer-Kiser bank. together with
those of the Washington Bank and
Trust Company. City Trust Com
pany and State Savings and Trust
Company.
At the conclusion of the report
which Judge Cox interrupted fire.
quently to ask questions and make
pungent comments. the court in
StruCted Mr.. Garvin to sign the at
fidavits. then sent them to Grim
inal Judge Frank P. Baker, with the
comment that now the invcStiga-
ton had passed from hands of cir
cult court into that Of criminal
court.
IF our banking institutions are
in bankruptcy because of the de-
preston" said Judge Baker, when
the matter was taken before him,
that is one thing. but if any of
these banks have been looted, that
is another matter"
Urges Immediate Action
He took the afhdavits before
Prosecutor Wilson. who commented
he felt the bank case should be
taken up by the grand jury. He
agreed to study the matter for the
next few days. with the view of
signing the affidavits with Mr.. Gar
win.
Mr.. Rucker previously had stated
that after spending five months
times in preparing the evidence. he
saw no reason for eXpending further
time and money on a grand jury in
veStigation.
We prepared the affidavitS to
avoid the waste of time that would
be entailed in a grand jury investi-
CATION he said.
S2,357,521 Shrinkage Shown
The report explains charges in
Guided in the affidavits and outlines
an appraisal of assets OF the bank
Just completed by Albert E. Uhl,
John Roberts and Russell w. Look
abill. indianapolis, and Harold
PhippS and John Fox. Gary.
Shrinkage of S2.357 .52l97 n the
assets of the bank is disclosed by
the appraisal. it Is alleged. 1t is
pointed out that assets of the bank,
carried at a book value of $1,000
O03 s. by officers of the bank. have
been appraised at only S646. 5l1.85,
leaving depoSitOrs small hope Of
Salvaging dividend.
1t is charged in the ENLIGHTENMENT
affidavit prepared that bank Off
Gals took $4,000 of the bank S
funds to pay dividends of a defunct
subsidiary. Another of the Aft
davits sets out that the bank was
inSolvent since 1928, with knowledge
Of the defendants.
The action in preparing affidavits
is believed to have been based on
the fact that the Marion county
grand jury failed to return indict-
ments when evidence in the Wash
ington bank and the State Savings
and Trust Company was submitted.