Indianapolis Times, Volume 45, Number 163, Indianapolis, Marion County, 17 November 1933 — Page 6

PAGE 6

PERJURY LAID TO BANK HEADS BY AUDITOR Report Filed With Court Charges Manipulation of Funds. (Continued from Par* One) the period from May 11, 1931, until May 4, 1933, when the bank's affairs were in the hands of former officials who acted as liquidating agent*. It Is pointed out that: "Creditor banks, namely the Indiana National, Fletcher American National and the Chase National of New York, confiscated an aggregate sum of #55,000 on deposit with them by the Meyer-Kiser bank, and applied same on the bank's debts to them, immediately upon the placing of the bank in liquidation: creditor banks then proceeded to sell and collect on collateral pledged and held by them as security for the payments of such debts due them, until they had received a total amount of around $190,000 to apply on such debts, throughout the period of liquidation. Claims Allowed. Is Charge “Preferred claims have been allowed which are questionable as to allowance, and most certainly should not have been paid until the final outcome of the bank s affairs is determined. “Bank assets were used to liquidate liabilities to various creditors, and the right to do so is questionable. “Debts owing to the bank by va- ; rious individuals have been offset by accounts owing to others, and meh accounts presumably were acquired by assignments, and collateral. deposited with the bank to secure the payment of the debts, has ; been surrendered. “Cash was advanced for various j purposes to collateral loans and Florida mortgage loans, and such advances have not been paid, and the right to have made such advances is questionable. “Bonds and preferred stocks were purchased, which still are owed, and the rights to have acquired such j assets in exchange for cash, are questionable. Notes Accepted, Is Claim “Notes of realty companies were accepted in payment for reorganiza- j tion services rendered, and such j notes are now past due and of | doubtful value: under the circum- j stances were the liquidating agents justified in spending their time in such employment? “Cash received amounted to $317,550.90, and cash disbursed totaled #418.575.26. "The actual result of operations during the liquidating period was a loss of $53,761.93, based on book values of all assets now owned and : without calculation of shrinkage in value, which apparently has occurred in a large amount, but only can be determined by sales or appraisal. The above determined operating result includes a large amount of routine income, which had continued from the bank’s active operations, and the amount of the same is difficult to calculate, but it may be stated that if such continuing income had not been received, the j operating loss Would have been much larger. Cite Salaries Paid “Large amunts were paid out for salaries, wages, commissions and other expenses, the total of which was $196,191.35. “Offsets of loans and debts owing to the bank, against liabilities of the bank to depositors and others, have been made in a total amount of $84,695.63, “The total assets have been decreased $395,023.90. and the total

2400 Pairs BURT’S Shoes Go On W MM % 3Sff K M -%%&• tob > M Oxfords, S*rops, CIICHCI - Ties and Pumps. bUtUtl Every re- l/ini from our Size 2Vi to 10, AAA r to C \ Represented, bet of course not aH sizes in every \ style. We advise you to come early and buy several pairs at tkis olmost unbelievable price I Wl Curts J Hgk SHOES Nfcr 35 EAST WASHINGTON TJtmL Former Pettis (New York Store) Location

fREE MILK DISTRIBUTED IN WISCONSIN FARM STRIKE

. f llplj|]Pi|bfe A //. yjfSafisHpp v,. mu* % veK&M/' ■■■: g&gs

Free milk is the latest development In the national farm strike in Wisconsin's great dairy area. Dairymen are giving away their product to “educate" city patrons against “unfair” milk. A farmer’s wife is shown here as she pours milk without cost for all comers, attracted by a large sign.

liabilities have been decreased $366.43483 during the liquidating period, all based on book values." The audit points out alleged "peculiarity of the records" of the bank and its subsidiary organizations, and declares them to have been “established as a matter of convenience for the bank, to enable it to make whatever showing it pleased from its own books to the state and county and other interested authorities and persons.” Manipulation Is Charged By charging certain unexpended amounts to “operating expenses,” and making similar credits to savings deposit accounts, the bank built up a “secret reserve,” which totaled $261,768.82, in May, 1931, the auditor charges. “The direct effect of carrying on this practice from year to year, in the books, was that the expenses were overshown, the net profits were undershown, the undivided profits acount was undershown, and savings deposits were overshown,” the audit declares. It was by this method that the alleged evasion of approximately $7,500 in taxes due Marion county in 1930, brought out in the hearing this week, was accomplished, although the statement was sworn to by bank officials. ■ False Entries Alleged This practice, according to the charges in the audit, was “a deliberate system of making false entries in the books over a period of years" and “these false reports were issued and sworn to.” Advances to affiliated corporations, and assets unaccounted for, came from a “contingent fund” which was created in January, 1923, with $134,003.50. it is alleged. The records explaining the source of this first revenue can not be located, according to the auditor’s report. In the earlier hearing on the bank's affairs, it was testified that the “contingent fund," which in August. 1930, became the Smetal trust, was “a depository for bad and slow accounts and investments of the bank, for which cash and

more liquid securities had been given in exchange.” In an eight-year period to 1930, the fund had been increased to $781,835.35, which included stock of the Meyer-Kiser bank of Miami, a lean to the bank of $125,872.86, and advance of $111,943.95 to United Securities Corporation, in which the stock was owned by bank officials, and advances, in which the stock and advances to the Robert Clay and Floridian hotels, it is said. According to the audit, the fund in reality, was the “recipient of income belonging to the bank” and was used “to make advances, investments. and speculations in Florida, and that good marketable securities were sold and exchanged in order to do this.’’ “It is estimated that approxi-. mately $200,000 of the securities that went into the Smetal trust were removed from the assets of the bank,” the audit charges. Secret Reserve Claimed Mr. Garvin became receiver of the trust funds, at a book value of $781,835.35, after the “secret reserve” was revealed in testimony at the June court hearing. At that time, bank officials claimed that approximately 62.5 per cent of the amount belonged to bank depositors, and 37.5 per cent to the Meyer and Kiser families. “The Meyer and Kiser families have no valid claim against the Smetal trust for the 37.5 per cent claimed, because the bank’s money was taken and used by officers of the bank for irregular purposes,” it is alleged. Accuse State Officials Failure of the state banking department to appraise assets and obtain information on the true condition of the bank also is cnarged in the audit. “The state examiner's report of Oct. 24. 1928 (eighteen months before the bank began liquidation), il it had been supported and modified by an actual appraisal of assets, probably would have shown such an unbalanced condition of investments that immediate regula-' tion of the bank’s affairs would

THE INDIANAPOLIS TIMES

have been warranted, and there does not seem to have been another examination until nine months later,” the auditor’s report alleges. PRESS LIBERTY CLAUSE MAY BE PUT IN CODE Indications Step Will Be Taken Seen in Capital. By United Press WASHINGTON, Nov. 17.—Indications that a clause guaranteeing the constitutional right of freedom of the press will be included in the newspaper code when it is approved were seen here today. No official announcement was forthcoming from NRA headquar- ■ ters as yet. However, it was pointed out that Administrator Hugh Johnson, on his recent western speaking trip, stated the power to license industries could not be invoked in the case of newspapers because of the constitutional guarantees of freedom of the press.

Positively the Last Chance TO BUY THIS BEAUTIFUL 22-KT. WHITE GOLD DECORATED 42-Pc. SET DISHES This gorgeous 42-piece set is derorated in I M 22-kt. white jjjold and regularly sells for 512.50. B V THE CHINA IS MADE IN AMERICA % ji In the npwpst square shapp with srallnppd edge. o \i pnL *' fi &*i A Around the rim is a speckled edge like star dust C* TT VVll • ...... in 22-kt. gold with an inner decoration of spray llhij|^r and flowers. A complete service for eight people. ONLY s(* A WEEK: “MISS AMERICA,” Bulova Baguette I beauty, style and supreme value at C 7 R \ s he owest P r ' ce we have of- M sered a Balova Baquette. jmm mm T | F ° R futSpUP- “ THE SENATOR ” ,5 - Jewel Bul ' a oKIDAL r AIK ?*™ st in designs - 1 .. —with distinctive new style case— V w J 7 S raised gold numerals. Smart new J my link band to match. Mm K J PAY 51.00 WEEKLY—LAYAWAY FOR XMAS! for , A gorgeous engagement ring set with ■■ Bfl K M Bil IUT large center diamond and diamonds on lA%|TV *® I llwV each side. The wedding band has 3 |Ar sparkling diamonds—both rings of 18- JeweLerj •—— • * 42 W. WASHINGTON P(iy SIOO * r>oor Eaat of llllnola at. Open Salnrdajr Evening

DROP POLITICS, 1 CITIZENS URGED BY PUBLISHER Support for Public Works Drive Is Asked by W. T. Chevalier. Urging citizens to "cut oUt politics forget differences and put money and people to work at once by supporting the public works administration,” Willard T. Chevalier of the McGraw-Hill Publishing Company, last night addressed the Construction League of Indianapolis. Mr. Chevalier spoke on “National Recovery for the Construction Industry” before more than 200 at a dinner in the,Architects and Builders' building. He was introduced by Edward W. Pierre, league president. “Every man, woman and child in this country today is a soldier engaged in a war against a common enemy,” Mr. Chevalier said. “That enemy is business depression, and his chief weapons are fear, mistrust, jealousy, hate, ignorance, greed and selfish indifference.” Elimination of slum areas, high-

H/\TS JSA L E! II Ctfor* 26-28 East Washington St.

way and road improvements, better sanitation, better water supplies and improvement of mining camps are among the major projects which should be pushed at once under the public works administration, Mr. Chevalier asserted. He urged that architects and engineers speed up their plans, government officials make the necessary funds available without delay, and that contractors get busy on the jobs as soon as contracts are awarded.

Corn Alimony Rochester Woman to Get 300 Bushels.

By Unitrd Press LOGANSPORT. ind., Nov. 17. The alimony claim of Mrs. Hazel Lane, Rochester, will be settled with 300 bushels of corn. Judge George A. Custer of Cass circuit court authorized payment in the form of grain when her husband said he had no cash. Theft of Purse Reported Theft of a $3 purse containing $6 and a gold ring by two men who accosted her as she entered the home of a friend at 626 Massachusetts avenue was reported to police last night by Miss Delores Dunman, 3427 Broadway.

LOUIS HAMILTON GRANTED STAY UNTIL DEC. 23 Doomed Killer’s Attorneys to File Briefs in His Appeal. Louis E. Hamilton, doomed to die next Friday in the electric chair

Be Measured NOW Thanksgiving Fine. Worsted Suitings Distinctive Overcoatings s 29= s 39a Tailored to Your Order Enjoy clothes that are cut and built to fit your body and your mind—just the fabric and model you want, custom tailored just for YOU. Prices are very low, because they are based on woolen costs of last May—about one-half of today's actual cost. Order at once. Be ready for Thanksgiving. KAHN TAILOR INS-^7 Second Floor Kahn Bldg. Meridian at Washington

HRA >ira ** mwciifw vtNINWi /1 GOOD VALUEs]\ / ON CREDIT \ jy Smart New j Fine, Warm M | DRESSES OVERCOATS 1 9 Alluring' styles for Men’s all-wool o’coats 9 9 every occasion of wear at this low price only If, M in new silks. All the j because we bought be- If |l latest colors, sizes 11 fore the price rise. Sin- If. to 60. j jr]e and double breasted S* , $6 95 | 2 ,’ll 16 s *- I *m I BmIIA Via Pay From Use hour jg r . Your Pay Credit %T a wi oo out i*r ;■?£?? We Also Carry a Complete Stock of Jewelry 23 YEARS SQUARE DEALINGS Bii , G f € BA 43 & 45 S. Illinois St. Open Saturday highl Till 9 o'clock

I MARVELOUS RECEPTION WITH THE NEW 1934 &eaJtaA a.-6e£lL/ . \ RADIOS^. s4 DoWN^fflnl \ll thp npupfet r* U !;iMp ni'.(| u ' —(r**t F'oliCP C 'IIN a nri r*K m! *r broadcast* from all I jMiii 30 DAYS FREE SERVICE WHI 4 Delivers the Following A ■ Nationally \daertUed Radio* I ft " f#j *J) IR( V Majr*ri< fhilrn—Atwater t|l I if li til I Kent — StPHUr'-llnrni'iT >lar- | H UQ | tan —Zenith and Apex. See the*# | Chicago Jewelry Co.^£ 203 E. WASHINGTON ST. ( 2l *zt

TCOV. 17. 1933

for the murder of Lafayette A. Jackson. Indianapolis chain store owner, was granted a stay of execution until Dec. 23 by the Indiana supreme court yesterday. The stay was given to permit at-' torneys for Hamilton to file briefs in his appeal. Petitions for clemency are being circulated by relatives for Charles Vernon Witt. Hamilton's alleged accomplice, whose appeal has been turned down by the high court. Witt is doomed to die next Friday, unless executive clemency is granted. Experts have found that feathers placed between double walls of afiplane cabins are very helpful in absorbing the sound of the engines.