OCR Text |
Show tm ACTS PROBED BY AUDITOR Report May Take Six Week to Complete, Xbut Expert Accountant Go Before Jury Byira C. Tichenor flTHAT thKreceiver shall em-ploy em-ploy "aXcompetent and proper accountajito .audit the books, papers, aceohots, assets, labilities, ami ALL THE AK- FAIR8 or PAID DEKRXDANT , BANK." Thna read a ptltlon filed fn hfenlf ef the depoattors of the defunct Mwchanta bank. . T f 1 n n hiB -ie t .Uouw asuli. lowed within twenty-four houra by a court order for the) receiver to act in the premises. The re reiver made his selection of an accountant, who now Is at work, delving Into the history and financial operations of the Institution Insti-tution and the acts not only of those In Charge of Its affuira hill rrf irTl r citizens and corporations who and which. It is commonly reported, have been the recipients of financial favors at various time. , - REPORT TO BE BASIS. This report, It Is believed, will form the basis of any prosecutions or other legal proceedings which may be brought In behalf of the depositors by the prosecuting sttomey or the receiver re-ceiver of the Institution. The accountant now at work on the books and In preparing a history of the Institution is J. W. Kdmundi of the auditing firm of J. V. Edmunds & Co. He said today that because of the details into which it nan become necessary for him to delve It will be possibly six weeks longer before his i work la completed. READY TO APPEAR. ; Mr. Edmunds stated, however, that ha will be In a posit Inn to appear be-for be-for the proposed grand Jury, if called " upon, and present a nop! of his report re-port and which would contain all of the pertinent data an relating to the operation r of the h&rtK under the management man-agement which went nut with the appointment ap-pointment of the receiver. I He gave no Intimation as to what he bus discovered, i.nii, as a matter of L fact, It Is duo Mr. Edmunds -to state kthat of all the information obtained on rhlch news Items have been based In ssVmectlon with the hank none has cnno from him until today. jrThe petition which resulted In the selection of an accountant was filed In the name cf V. K. Kvina, state bank commtasiontr. and In thalf of the depositors de-positors by W. T. tlnnter. It was sa'orn to and signed by George 11. Kidd and also signed by alout a dozen other depositors. After stilting that "your petitioners j cahoot be successfully sued on their stockXJIabilUy until the solvency or In-j In-j solvency of said bank la determined by a full. cohaplete and proper auditing of . the bonks, aycminta, assets, liabllltiea and affairs ofaaid defendunt bank la had and made. n. - "That juui pPtrHj'Hera ara Informed" and verily believe that said banking company is now and was at tha time its doors were closed lnan Insolvent condition and that each anri every one of the stockholtls Is liable to, said receiver re-ceiver or said depositors on there stock liability, but, as alleged above, tne solvency or Insolvency of said ba-qk I cannot properly be determined without, Ian auditing of the affairs of aald bank- i ing company, a set out above. I "That your petitioners verily be- I tleve and have therefor alleged that : it la for the very best Interests of the I j depositors of said Merchants bank, the j defendant above, that such auditing he t had and ma le, and that the same be i reported to this court. That this petition is filed on behalf of the undersigned depositors and all other depositors who may desire to join herein. "Wherefore your petitioners pray that the receiver of said defendant Merchants bank, Mr. 8. H. Lynch, be by this court ordered and directed to employ at the expense of said receiver a competent and proper accountant to j audit the books, papers, accounts, i as nets, liabilities and all the affairs of said defendant bank, and for . such other and further order and relief a ' to this court may seem fit, proper, j meet and necessary in the prenilsea." Following a meeting late yesterday afternoon of the depositors' commit-, commit-, tee It was stated that tt had been decided de-cided to have all depositors who have any Information relative to the bank's affairs furnish such Information to the committee through Thomas Homer, tho chairman. Any such information will be turned over to the proper legal authorities. As soon as tha health regulations permit there will be a general meeting meet-ing of the depositors. are now and were at all times hereafter mentioned depositors and therefore creditors of the Merchants name, a hank In g rorponttlon, th g ffeTen da ril above, and the facts that on Jn'y 8 last the bank was closed by Brink Commissioner Com-missioner Evana, and fc. H. Lynch wan appointed receiver, the petition c ntin-jes: ntin-jes: ABOUT 4600 0EP08IT0RS. That there were at the time the doors of said bank were closed as foresaid snd are now approximately 100 depositors of aald Merchants bank, the defendant above, with deposits in Mid bank of approximately fl, 100,000. "That there .were at the time said hank was closed and are now 111 stockholders stock-holders of said Merchants bank, the Sefendant above, with a stock liability te aald receiver or the depositors of aid bank of $250,000, which amount aid depositors, and that said stock- ! nolders have not paid such liability rtr any part thereof to said receiver or to said depositors or anyone else, and your petitioners are Informed and believe be-lieve and therefore allege that many of - said stockholders have refused to pay said liability. CANT BE DETERMINED. That your petitioners are informed and believe and therefore allege that the Individual liability of said stockholders stock-holders to said depositors or said receiver re-ceiver cannot be properly determined, snd that thy." the enld stockholder. |