Salt Lake Tribune | 1918-10-26 | Page 16 | Defunct Bank [Illegible] Asked by [Illegible]

DEFUNCT BAf ? ASKED BU0VE1 Grand Jury InvestigatJ Set by District Judge, for November 18. LOANS QUESTION Assertion Made That posits Were Accepted After Insolvency. A grand jury, to meet on November! for the .special purpose of InvestigjL the affair:- of the defunct Merchants ba! was ordered yesterday afternoon bjj five district judges, who met J purpose or. presentation of f?2 District Attorney Wilson McCarthrvl calling of the grand jury was also bfi reet response to a request madebyij ernor Bamberger and the depo committee through Mr. McCarthy, In support of his request for a J jury. Mr. McCarthy presented data ', nished by the depositors' commit, a report of the federal-reserve banit aminer. 1 was not considered adoaj by Mr. McCarthy to call a gracd -earlier than November 18, because cf fact that the auditor's report on theh, of the Merchants bank cannot be ra before that dale. A grand jury has been aske the ground that there is criminal r sibilitv involved in the conduct of !i of the bank, the contention being rr,j- the iieposi"or' committee that t:a continued to transact business and ceive deposits after it was kox: in an insolvent condition. The rq of the state make it a criminal offena a bank to a.-.-i.-ept money on deposit j; it is known that it is in an aitd condition. Question Bank Acts. According to the information tktf been placed in the hands of the H attorney, the Merchants bank h m to have continued to accept depotih a considerable time, after it was to to the officers and directors of the 3 n:t;o: that i" was in an insolvents tin--. At least, this is the ai'epj which has been submitted to 0m H cuting authorities and which the deji lors' rornmiitee contends will l ported by an auditor's report an: -report of the federal reserve bank a Iner. ! In addition, the depositors' cosd Ki in its possession a long list efa of men who are allege, to have fan sums of money from the bank. 21: ? it is claimed, were permitted bj rectors and officers of the bank tola this inotipy contrary to law. Theses : .i. .igregate almost Oil i.-h dericieny cf the bank, mi I charged by the depositors that "-; where their money has wrongfully : This list, it n ertood, is to he s'lut-ed ;s eviur.ce before the gr. Notices Posted. The Merchants bank closed lb at the close of business July I hftj failed to open' the following K4 That night the state tank eajrej4 charge of the insitution in his fB that thtjB had i con closed by the state ban- iner pendinc the instituting of nnB ship proceed i iurs. 1 The statement made at the tt! examiner took charge Of 'hf hntf that "an unusually heavy drain ll .is': resources of l"ic bank. ,ooct-Mj a 'nin' of the preceding twoorthrwa wi;h a heavy " 5 liquid assets inherited from ferae? 1 ministration, had caused the b-W inrr to take charge." I 1: was announced that the assets enough to meet its but tb. it. through investment- ties not readilv convertible Into o j - - v-: ;" ir.s::tutiw drained it i; v, as necessary-1 eiver take charge and tiear 5 noniiijti'd assets. l: w. - also announced that of depositors, including comme"-""1 savings, numbered about SOW HjJ the tot;; deposits amounted toaJ 400.000. The bank commisslor.r ? ment of the condition of the HntJ dune : ? s h o wed unsecured -amounting to $14,669.91 Try to Reorgunize. Tlv- Kink was place.! in tht Jjj i a receiver. . t'-e:- rffc-rts wr"? to brim; about a reorsnnlMtwa J institution on a basts that it reopening and would finally depositors to receive all due depositors' committee was . a committee representing the SWJ , was .- ' NVC M-:afn5 ! gun and two plans of rS"l ' bank w e T-e wo rk e d OU t . W necessitated "c us mi: of fundf to meet Immediaie demands upotj . oueni-!.: atul l-'V: of deposit.'-- c- :bc -,t :mor . little at a lime un.Ul their entWM were squared. iJfM These negotiations have VccrW - U since the bank closed, but IQtCB the depositors' committee tuk! statement C .it the sUVkhOMWfM to do m keepmii .l.M ments entered Into In ivnne-UJJJB reorganisation plan: hence tw PT fallen through and the deTS"L mlttee fcM it was useless W further, ... I r w ; .h tv sta. I committee that further 'fM 1 ikon - tv for the bark's condition. ' jL 1,10 VIIs mn to ma kc .-oV:,- "'V'V- JM (be batik's a flair:- toward the f . 1 bic responsibility it there Is re-i