Article Text
STATE CLAIMS BANK PAID DIVIDEND FOR BANKRUPT CONCERN
Indianapolis, July 17 (A)-The state today, through witnesses in the embezzlement trial of Melville S. Cohn, former vice-president of the Meyer-Kiser Bank here, sought to show funds of the bank were used pay a $37.50 dividend to a stockholder of a real estate company that was in receivership and for which the bank had floated stock issue. Defense objections repeatedly were interposed as state attorneys began an attempt to prove. that after the bank failed to show profit in 1028 its officers used funds of the institution to prevent collapse of several real estate companies. Special Judge Alex G. Cavins withheld decision on several of the objections. Miss Grace Jackson, a former vicepresident of the bank, testified she signed $37.50 dividend check payable to Albert Blue, preferred stockholder in the Fralich Realty Company, and Blue told the company he received it. The specific charge On which Cohn is being tried is based on this check. Thomas E. Garvin, receiver for the Meyer-Kiser Bank, and J. J. Kelly. of Gary, receiver for the Fralich company, were other witnesses.
