The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-05


superintendent. Mr.. Rucker says
that. without the money which may
possibly be recovered on these bonds.
there is no chance OF a dividend to
depositors.
Report Is Quoted
The bank closed with 81 5.955 %
on deposit. The assets on closing
we're. according 70 Mr.. Rucker.
NOTHING" Che capitals are
his.)
Mr.. Rucker quotes report from
the bank 10 the state bank COM
missioner in 1880 as listing the fol-
lowing officers and directors:
Oncers. Scott r. Brewer. presi-
dent: James A. HOuck. vice-presi-
dent and treasurer; @. F. Miller.
secretary; Kathryn Holland, assist
ant secretary; Myron S. Harlan,
vice president; Z. Kirk Mckinney,
ce-president; Don z. Brewer,
bond department manager; Hiram
d. Keehn, trust department man.
sger: Joseph T. Brady. savings de-
partment manager; r. A. FRANKIE,
rental department m g e r;
Thomas o. Caulkins, safe deposit
department manager.
Directors: Mr.. Brewer, Mr.. Har-
Ian, Mr.. HOuck, Mr.. Mckinney, Ed
gar Ashby, William A. Pickens.
Clarence G. Wysong.
Makes Urgent Suggestion
One director is charged by Mr..
Rucker with possibly inducing a
depositOr TO deposit S20,850 in the
bank approximately ten days before
1t closed by telling him the bank was
sound.
Mr.. Rucker suggests that the di-
rector may haye-Or should have
known Of the banks alleged insol-
yency at that time.
His report contains an urgent sug-
gestion that civil suits on the Of
ficers' bonds. and on the former
bank commissioners SIS, 900 bond
and all criminal action be inSti-
tuted as soon as possible. since, in
several instances, the statute OF
limitations will intervene within
few months.
Mr.. Rucker, who again criticises
Mr.. Wilson as he did in earlier re-
ports, suggests that the prosecutor
Office may wish to have affidavitS
sworn out to avoid the delay OF
grand jury proceedings.
His criticism Of the prosecutors
Office in this report lies in the fact
that it tried Melville S. Cohn, vice.
president and director of the Meyer
Kiser bank. on embezZlemeni
charges growing out of a transac-
ton involving a subsidiary corpora
ton rather than under the bank
ers' embezzlement act.
Covered by Law
This law covers the receipt OF
deposits with knowledge that a bank
is insolvent. and it is Mr.. Fuckers
contention that. while Mr.. Cohn was
convicted. the conviction would bt
Surer under the bankers embezle-
Jment act.
1T would appear from the facts
disclosed" writes Mr.. Rucker
that the bank commissioner ha'
been grossly negligent and would bt
liable at the suit of the receiver
and. to my view, of the losing de-
positors.
The trust company should have
been deprived Of banking rights in
1924. or 1925. if the documents
speak the truth.
The bank commissioner reported
in December. 1929. that the sub
sidiary, the State Property Com
pany, was then insolvent. the paper
Of which was the banks major
asset. He must have known the in
s0lvency for years before the
closing. or. at least a year before
when its own records showed the
same"
Another portion of his, report sug-
geStS the possibility of prosecuting
some Of the officers for perjury II
the making of an alleged false re-
port to the commission. This. he Sug-
gests, might be held in reserve IL
case of failure of main proSeeu'
ton OF which he writes:
1T is faireSt 10 the state, the de-
PENDANTS and depoSitorS that the
principal and actual trial indict-
ment be under the bankers en-
bezzlement act. This act pertain:
especially to the banking offense.
Legislation Is Mentioned
ssrne latter are entitled to know
how they lost their money; the
facts. If ever portrayed publicly
would induce needful legislation
making the banking department g
useful institution. banks safer. con-
fidence more secure and protection
to the honest banker from Wild
eating competition.
1T appears that the entire sum OF
deposits held at the time Of fail
ure, namely SASS 1882, was re-
ceived by officers when, 10 theiI
knowledge. the bank was inSolvent.
Mr.. Rucker. who acknowledges
Indebtedness to the depositors COM
nlittee for the mass Of facts SET
forth in his report. also goes into
the fine detail OF the procedure OF
prosecution he suggests.
The evidence shows" he insists
that il was not the depression, but
bad banking and insolvency fol
years before the closing thai
wrecked the State Savings anc
Trust Company.
During all this time. in violation
Of another express statute, the ex'
ecutive officers kept open theil
doors and received hundreds o
thousands OF dollars in deposits
knowing that they never would bt
returned.
Talks Of "HumanitieS"
Not only did the executive off,
GERS actually know Of the insolvency
but their very duties imperatively
required them 10 know It,"
of the feasibility of er1,hezvieu1eni