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Bank Receiver Sought BM Times Special SOUTH BEND, Ind., Oct. 11.Luther F. Symons, Indiana banking commissioner has filed suit in St. Joseph circuit court here, asking that a receiver be appointed for the Franklin Trust Company which the state banking department ordered closed Saturday because of "frozen" assets and a lack of cash reserve. The suit was filed through Thomas Barr, deputy commissioner, who investigated conditions of the bank.
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KREISLER IS OFF RADIO Noted Violinist Declines to Play Again This Season. NEW YORK, Oct. 11.-A disment is in store for ether listeners-in Kreisler fans will not hear their favorite over the radio this year Upon the arrival of Fritz Kreisler in New York, after a summer spent abroad, the famed violinist declared he still would not consider ng for unseen auKreisler diences Bank Receiver Sought BN Times Special SOUTH BEND. Ind., Oct. 11.Luther F. Symons, Indiana banking commissioner has filed suit in St. Joseph circuit court here, asking that receiver be appointed for the Franklin Trust Company which the state banking department ordered closed Saturday because of "frozen" assets and a lack of cash reserve. The suit was filed through Thomas Barr. deputy commissioner, who investigated conditions of the bank.
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STATE SYNDICATE TAKES OVER DEFUNCT BANKS Ind., Oct. banking syndicate headed State Oliver Holmes Gary, will take over two defunct northern Indiana banks, was liably reported here today. institutions the Franklin Trust Company South Bend, and the Provident Trust company of ColumCity. Elmer Peak has been appointreceiver the South Bend bank. Action receivership petition for the Columbia City institution was postponed until Nov.
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BANK NOT TO PAY BEFORE SUMMER Peak Says Legal Actions Delay Franklin Settlement; Funds Low. Depositors of the defunct Franklin Trust company, which closed its doors last fall on orders of the state banking commissioner, will not be paid until next summer and it is uncertain whether they will collect 100 per cent on their deposits, Peak, receiver for the bank, said The amount of the payments can not be determined, Mr. Peak said, until after the of score of legal pending in the county courts and the receipt of all claims against the bank. All creditors of the bank must file their claims before April 15. Mr. Peak said that majority of the Franklin Trust have paid the 100 per cent cash assessment levied them by Circuit Judge Cyrus E. Pattee and several have time Only few face the threat of contempt of court citations for failure to meet the he said. A large judgment was gained by the bank receiver in superior court No. late Wednesday when Judge Orlo R. Deahl granted the bank $28,531 from the Charles Weldler estate. The based on second will be taken from the Charles Weidler building on South Main street. The American Trust company, holders of the first mortgage on the property and trustee for the Weidler estate. was given judgment of $33,713.63.
SECOND WOMAN TO NAMED BANK RECEIVER South Bend, Ind., Mar. been named receiver for the Franklin Trust company closed two years ago by the state banking She the second woman in Indiana to receive distinction. such She succeeded Elmer Peak was disqualified for the place when he was elected judge of court Miss secretary to Peak during receiver for incumbency the defunct bank. The other only ever to appointed bank receiver was at one according to ther Symons, state banking commissioner in
PART OF PLOT BANK OFFICIALS DODGE JUSTICE RECEIVER Declares Many Notes Were Given Former Officials Without Directors Approval SOUTH BEND, Ind., Dec. Elmer Peak of court No. today answered perior charge that fees receiver defunct Franklin Trust together with the fees drained the bank attorney half its cash Judge Peak received of the bank until he became judge of the court. answer Judge Peak allegthe charges against plot by former officials the defunct bank to escape conof their the bank's affairs. Judge Peak, as former receiver for the bank, charged suit filed Dec. former directors depositors with having made extravagant payments to himself, attorney his Miss Ethel Weaver. Miss Weaver became receiver for the bank when Judge Peak place the superior court bench. answer Judge Peak former bank officials with criminal negligence the conduct the bank's affairs. Among those charged Adam Hunsberger, former the bank. He accused by Judge Peak being "one of those sponsible It is alleged that assessment stockholder bank. Other former officials named by Judge Peak Bert McClellan, former treascashier, who charged owing the note and stock ment; John and former director, alleged to stock assessment; Rostiser, former secretary, charged with stock sessment of $1,000; Matt well, former president, charged personal note; Davis Berger, director, charged with stock assessment, Shafer, former vice president. Judge Peak alleges many notes given former officials without the approval of the entire membership the board of direct-
BANK RECEIVER ANSWERS SUIT Charges Former South Bend Officials With Fraud. South Bend, Ind., Dec. 26 for the Franklin Trust in made in Circuit Court today, made fraud against officers the defunct bank. The statement made Circuit Judge Daniel Pyle in whose court pending for dismissal Miss Ethel the receiver The suit was filed against Miss Weaver former officials and stockholders of the bank. It alleged that fees Miss Parker and Elmer Peak, preceded Miss had drained onehalf the bank's assets. Suit Termed "Smoke Screen." Peak retired receiver when he took office as judge of the Superior Court and was succeeded by Miss his Parker Judge that the suit brought the officials and stockholders against the receiver "smoke thrown up to aid them in escaping prosecution alleged of the bank's affairs. Judge Pyle at the conclusion of the hearing today ordered complete audit the bank's condition and of the operations the receiver. am ready and would enjoy an to go before grand jury any body and brought about collapse of this institution. Parker said Parker declared the bank was never solvent. He said more than onehalf of the capitalization consisted watered stock for which there was no security.
LIABILITIES Former Bank Director, Asking Bankruptcy, Assets of $635. Listing liabilities of $403,000 and assets only $635, Gladstone Rhuebottom, St. Joseph county poultry and former director of the defunct Franklin Trust company, has filed voluntary petition federal court asking that he be bankrupt. Included the petitioner's schedliabilities alleged liability of $300,000 set forth in now pending circuit court. was June by Miss Ethel Weaver, ceiver for the institution Other listed show debt $10,000 to the First bank South Bend; $50,000 the Joseph county board finance; $30,000 to the Portage township board finance; to the Ger man board finance; $4,000 to Indianapolis Life Insurance company; and $2,000 on two depository The liabilities to the public nance boards include bonds petitioner signed to secure public funds deposit in the defunct institution. Suits for recovery these bonds are pending, the petitioner sets forth. He also points out that other officials of the closed bank had also signed the security bonds and that several were signers note given the First National by Mr. Included in the stock against Mr. Rhuebottom which was ordered by the circuit court of the bank receiver and which has not been paid, as well as bonds on private funds in bank which Mr Rhuebottom signed and which suits are pending. Of the $635 scheduled assets, Mr. Rhuebottom asks exemption on $600 in accordance with Indiana law.
Franklin Trust Dividend Of $2,200 is Promised DONALD ZOLMAN NAMED TO HEAD RILEY ALUMNI Donald Zolman president of the Riley High School Alumni amociation at Tuesday evening school building Her replaces Rob treasurer for the coming year Other officers are John and Mr man appointed the following to arrange for alumni pienic July Mr Man Jeanne Yockey Emmagene Ullery and Florence Ridenour 400 Depositors Will Get Payment Next Week. More than 400 depositors of the Franklin Trust company will tain more than of the money they had on deposit when the bank closed Oct early reported today by Miss Ethel Weaver and Ora attorney for the bank's receiver The dividend was made possible through recent order down by Circuit Judge Dan Pyle which transformed all deposits made after Jan 1928 into preferred claims petition filed by Donald Swisher Mr Parker said the order cleared the way for the preferred will followed soon by general dividend to all depositors Mr Parker added that the work of preparing checks for the pre. ferred depositors IN going forward rapidly and the checks probably will ready either Monday Tuesday of next week He said the distribution will be prorated cording the amount of money deposited after 1928, at which time Judge Pyle ruled the bank insolvent For this reason all monies deposited in the bank were taken despite the fact bank making those deposits preferred claims.
DEFUNCT BANK TO PAY $5,000 ON DEPOSITS Receiver of Franklin Trust Announces Dividend. Miss Ethel Weaver, receiver for the defunct Franklin Trust company, announced today that general depositors of the institution who heretofore have not received a distribution may obtain a five per cent dividend on their deposits by calling at her office in the Dean building. In addition a special distribution of a $2,251.75 trust fund will be made, Miss Weaver announced. It will be pro-rated among all depositors who also are required to appear personally in her office to sign receipts. The total amount available in the two distributions will be approximately $5,000. Miss Weaver sent notices to the last-known address of all depositors today and said checks already are prepared for them. Both distributions are being made under an order signed this morning by Circuit Judge Dan Pyle.