Indianapolis Times, Indianapolis, Marion County, 23 September 1937 — Page 4

DEBATE DUE ON BANK PAYMENTS OF STATE FUNDS

‘Frozen’ Deposits Hearing To Open in Superior Court Tomorrow.

Arguments in a suit asking a declaratory judgment on methods of liquidating $397,000 State deposits frozen in the American National Bank are to open in Superior Court 5 tomorrow. Brought in. June by Atty. Gen. Omer Stokes Jackson, the action is

the first of its kind in Indiana courts- The action is to decide how fast the balance is to be paid. Judge Herbert E. Wilson, who will hear the arguments and decide the case, said it was to determine which of two Federal laws applies to this particular liquidating action.

. Agrcements Are Reached

Facts according -to the suit, agreed to by attorneys for the State and for the bank trustees, are:

The State had more than $2,000,000 on deposit in the Fletcher American National Bank when it closed its doors in February, 1933. These funds were secured by $800,000 in bonds. The bank paid 50 per cent. of deposits to depositors when the bank reorganized shortly afterward. After the State received this liquidating dividend of 50 per cent it still had a total of about $1,229,000 frozen in the bank. The bonds were sold for $832,055 and the State then was owed $397,145 by the bank.

Computing Method Question

The bank has been paying off in 5 per cent dividends and the question which the Court will have to decide, according to Judge Wilson, is the method of computing the 5 per cent liquidating dividends. In the suit the State contends the unpaid balance of $397,145 should be paid off in 5 per cent dividends of the $1,229,000 amount. The bank trusteés claim the balance should. be paid off in 5 per cent dividends of the unpaid balance itself.’ In either [case both sides agree that $397,145 is all that is owed the State. Judge. Wilsoh said if the State contension is based on a Federal “equity rule” and the bank trustees: contention is based on more recent Federal| bankruptcy laws. The practical question to be decided will be (how fast the State will be paid. cial attorneys have been employed by the State to argue

to be one of those arguing for the bank trustees.

PERKINS SNUBBED AS A. F. OF L. SPEAKER

WASHINGTON, Sept. 23 (U. P)). —The speakers’ list for the American Federation| 6f Labor convention next month in Denver today included President Roosevelt—if he should attend—but not Secretary of Labor Frances Perkins. : This is the first time since the department -was lestablished in 1918 that the Cabinet post has not been represented at| the convention, and the omission was regarded in labor Sitios as possibly an act of retaliation.

SAN FRANCISCO, Sept. 23 (U. P.).—Teamsters’ Union pickets were ordered on duty at all San Francisco Bay docks today, threatening a complete tieup of seagping commerce and freight movement in this key harbor of the Pacific.

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These men are leaders in providing “lots to see and lots to do” at the W. Michigan St. Business and Professional Men’s Association fall festival. The event is to continué ih Coleman Park through

tomorrow night.

PURCHASE. OF

RIVER ISLANDS

Move Held Step for Flood Control and Highway Projects.

Henry B. Steeg, Indianapolis Flood Control Commission chairman, today said negotiations to purchase two quarter-mile islands in White River north of 38th St. are under way. Purchase of the land, he said, would be a preliminary move in building a belt-highway System around the city.

the John Cooper estate, would be removed by dredging and the dirt used to fill in lowlands between 38th

« | St. ana State Road 52. John Cooper,

ARR ys Left to right are Leigh Fisher,

entertainment committee chairman; Toney Flack, committee member; president, and Clifford Hughes, committee member. .

Roscoe Conkle, association

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CHICAGO, Sept. 23 (U. P.).—Exhaustive tests of a small “iron lung” being imported from Sweden will be made before it is used for Frederick B. Snite Jr. infantile paralysis victim, his father said today. ~The new respirator was ordered to

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respirator is designed to cover bnly the patient's abdomen and chest, leaving the legs and arms free for treatment by physicians.

OFFICIAL TO SPEAK Lloyd Thomson, State Department of Insurance actuary, is to speak before the Mutual Insurance Club tonight at the Columbia Club on “The Functions of the Insurance Depariment.”

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DEATH IS HELD SUICIDE

Dr. Norman Booher, deputy coroner, today returned a verdict of suicide in thé death in City Hospital last night of Mrs. Frances Tanner, 3024 W. Michigan St. She said she took poison becdusé of despondency over domestic troubles, police said. Her husband, Harold, survives her.

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Roads Would Join Highways A road then would be constructed, connecting the two highways, Mr. Steeg said. The only obstacle to the

proposed project, once negotiations for the purchase of the land are com-

TERMED LIKELY }

The islands, now in possession of

I pieted; are bridges’ ov . Canal and White River, Ee said. Earl Crawford, State Highway Commission chairman, was not in the city to comment on the bridges which, it is Suggested the State may

QUESTION:

construe as par 6 of a belt Righway for the City. Mr. Crawford has expressed , his favor toward the system to relieve Indianapolis’ inter-city traffic. The problem was reopened recently when

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