American National Bank & Trust Company (Benton Harbor, MI)

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Motor City INVESTORS' Round Table M. WHITE

IZEABLE ADVANCES predominated in moderately active market the Detroit Stock Exchange Saturday. The two-hour session witnessed narrowing the list of issues embraced in the day's dealings, but some of the leaders rolled up fair turnover half holiday session. Murray leader in activnearly shares changing closed small fraction General Motors and other active Total sales for the Detroit Bankers the most buoyant issue, being bid closing up points fair activity. Mesta Machine 3% and Fourth National Investors firmed up two advanced 17% and finished the day for point an more than while full point advances marked in Burroughs and little more than half dozen fractional advances were recorded elsewhere General Foundry units set new low for point decline.

ETROIT EDISON Co., commentators point out, is in position to benefit through increased volume of business larger profits industrial activities the Detroit expand line with anticipations which have been expressed by important interIndustrial power production Detroit last month showed increase about October and there have been dictions that the month record November. Detroit Edison suffered from necessitous liquidation other utility. times the has moved forward small volume. The company earning its $8 share annual dividend.

TREND of general trade is uniformly downward on average of 20 per cent under the level of the 1930 closing weeks, cording to Dun Co.'s weekly review of trade conditions in Detroit. Christmas buying, the review active, other lines general merchandise, including men and women's wear, waiting for temperatures. hope winter the holiday business chance trieve Josses. The greater portion of the buying, appears to be the cheaper lines. review continues: shows few bright spots in the which the anomaly per cent of factories, 53 product in the State. this line and others, the volume business transacted recent slightly below the distributors are hopefully upon an because better lower than industrial plants slightly, except industry and kindred lines. While there improvement in sentiment among manufacnot, yet, been has there cent and allied Collections are fair office of the Peoples Wayne County Bank, Detroit, has been remodeled order to better care for the busithat section of the city which was transacted in temporary quarters the while the improvements were being made. The permanent office open for business Monday, with adequate facilities needs the territory. William Seyferth in the capacity of manager.

S. EDDINS, vice president and general manager of the Olds Motor Works manufacturers of the Oldsmobile, Lansing Saturday the ployees working the plant has passed the 2,000 mark for the first time this year. The announcemen follows closely upon that the new 1932 models. Eddins said than 200 additional added to the lists the this week. He said his figures do not include engineers, office personnel workers the plant the Fisher Body Corp., which The company old temporarily out of work, to their jobs. of two of A Benton Harbor's banks The American National Bank & Trust Co. the Benton Harbor closed Friday -leaving Benton Harbor and Joseph but one bank the Twin Cities, be effected was Satweeks, by bank officials. Through urday this plan about two million dollars savings and commercial deposits institutions made available depositors. The committee Klock, of BenHarbor, head of the Malleable Industries.

B. vice president of Motor Wheel Corp. Lansing, Mich. announces the opening office from which direct Detroit contact varied automotive Continued on Page

BOND AVERAGES Bonds First Rails Second Rails Public Utilities Industrials

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ANNOUNCE PLAN FOR OPENING OF TWO BANKS

Built Around Agreement Depositors Will Be Asked to Sign

BLANKS READY SOON

Liquidation Only Alternative If Turn Down Proposal

The plan reorganizing and reopening the American National and Benton Harbor State banks in Benton Harbor under one charter was formally announced today by the committee that has been working the project since the two institutions closed last December. The plan, in brief, built around agreement which the depositors the two banks will be asked sign. 95 per the deposits in both banks must be secured to make the reorplan effective. The agreement be submitted to the depositors provides: That new bank shall be organized under the laws of the state Michigan with capital and surplus of not less than $160,000, of which shall be capital and surplus. Levy 100 Percent Assessment Am of 100 percent shall levied by the comptroller of the currency and the banking commissioner against the stockholders in both banks. Any stockholder in the bank upon payment of an and for stock in the new bank may, if he desires, have his used to pay his in the new bank. Any stockholder not electing to take stock will have the money paid on transferred to the depositors' trust fund. The new bank will guarantee the of 55 percent of the deposits of each old bank. Assets from the old banks will be transferred to the new bank in an amount equal the deposits guaranteed. The quick and selected assets of bank be used for this purpose. The $160,000 capital and surplus the new bank will be further guarantee of the payment of the percent. Establish Trust Fund After assets have been set aside by the directors the new bank, with the advice and consent of the state banking commissioner, for the payment the 55 percent referred to, other assets the old banks, culding' assets representing capital stock, surplus, undivided profits, gregating approximately $300,000 each bank, and including mortgages and slower paper of like quality, will be placed trust fund to protect the other 45 percent of the posits. This trust fund will be operated by the new bank with advice of positors' committee and distribution made depositors as ordered by the state banking commissioner. To make doubly safe and certain the payment of the 55 cent the state banking commissioner reserves the right within three years to substitute any asset the bank accepted for the protection of the 55 per cent with assets of equal amount from the trust fund. This means that any asset selected by the new bank goes "sour" within three years that the banking commissioner may exchange such asset for some better paper (Continued on page

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Plan Outlined Bank Merger

95 PERCENT OF BANK DEPOSITORS MUST APPROVE NEW PLAN

Institution With $160,000 Capital And Surplus Proposed Under Plan Of Merger Of Assets Of American National, Benton Harbor State

Reorganization and reopening of the American National and Benton Harbor State last formally outlined today by the committee which for the past 90 days has been working on the proposed organization plan. The details the as given to The are as follows: plan, The plan for and merging the American National Bank Trust company, and the Benton AWAITS PRISON Harbor State bank built around agreement which the depositors asked sign, which provides: That new bank shall be organized under the laws of the state SENTENCE ON Michigan with capital and surplus of not than $160,000. of which shall be capital and surplus. RAPE CHARGE Levy 100 Percent Assessment

An assessment of 100 percent shall levied by the comptroller of the currency and the state banking commissioner against the stockholders in both banks Any present stockholder either bank upon payment of an assessment and who subscribes for stock in the new bank may, he sires, have his assessment used to his subscription in the new bank. Any stockholder not electing to take stock will have the money paid assessments transferred to the depositors' trust fund. The new bank will guarantee the payment unconditionally of perof the deposits of each old bank. Assets from the old banks will be transferred the new bank in an amount equal the deposits guaranteed. The quick and selected sets of each bank will be used for purpose The $160,000 capital and surplus the new bank will be further guarantee of the payment the 55 percent. Establish Trust Fund After assets have been set aside by the directors the new bank, with the advice consent of the state banking commissioner, for the payment the percent referred all other assets the old banks, including assets representing capital stock, surplus, undivided profits, aggregatapproximately $300,000 each bank, and including mortgages and slower paper like quality, will he placed in trust fund to protect the other 45 percent of the deposits. This trust fund will be operated by the bank with advice positors' committee and distribution made to depositors as ordered by the state banking commissioner. To make doubly safe and certain the payment of the percent the state banking the right withthree years to substitute any set in the new bank accepted for the protection the 55 percent with sets equal amount from the trust fund. means that if any asset selected by the new bank within three years that the banking may exchange such set for some better paper equal amount from the trust fund. The thought in mind is to make the percent gold in any market. To Protect Depositors Depositors will receive certificates deposit new bank for percent of their deposits and participation certificates in the trust fund for the other of their deposits. The certificates of deposit will draw interest at the of three percent from May payable semi-annually the trust fund pays out sufficiently the holders of participation certificates will three percent on their money for the entire period their funds are tied up If there should be any balance after payment has been made to depositors full with interest the balance, if any, will paid the stockholders (Please Turn to Page Nine)

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DEPOSITORS SIGNING FOR BANK MERGER

The headquarters of the reorganization committee of the American National and the Benton Harbor State banks was thronged Saturday by depositors who signed the agreement for the opening of the banks as merged institution. The headquarters may be found in the Benton Harbor State bank building, entrance on Michigan street Mr. Hubbard. who is in charge. will be glad explain any portion of the contract which may puzzle any depositor. The program toward the opening of the reorganized bank will depend upon the promptness of the depositors in signing the agreement

POLICE RECOVER PURSE purse containing two $5 bills among other things was recovered police for Miss Florine Weber, of Searles avenue, Saturday afternoon after it had been stolen from waiting room in Dr. John Schwarz's office. 14-year-old boy who lives on Territorial road is reported by police to have stolen the purse when he entered the office to canvass shoeshining.

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URGE DEPOSITORS OF CLOSED SISTER CITY BANKS FILE CLAIMS

Depositors in the closed American National and Benton Harbor State banks, which will be reorganized and reopened as one bank, were urged today not to delay in filing their formal claims. Claims are being filed with the receiver at the Benton Harbor State bank. The sooner the claims are filed the faster the work will proceed.

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DEPOSITORS URGED TO FILE CLAIMS

Depositors in the closed American National and Benton Harbor State banks, which will be reorganized and reopened as one bank, were urged today not to delay filing their formal claims Claims are being filed with the receiver at the Benton Harbor State bank. The sooner the claims are filed the faster the work will proceed.

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SURETY MAKES GOOD MOST OF COUNTY FUNDS

Bonding Firm Pays $84,376 Of Deposits In Closed

Banks

When the Michigan Surety Co., paid County Treasurer Kittie Fuller $65,000 recently. representing the full amount of the county's deposit in the American National Bank & Trust Co., of Benton Harbor, that particular bonding company had paid to

Berrien $184,376.4 of the nearly $190,000 the county has collected from closed banks to date The Michigan Surety company has paid the county $89,000 of the county's $143,000 in the Commercial National Bank & Trust Co., of St. Joseph, and $30,376 the county's funds in the First National bank of Buchanan. The county still has claim for interest amounting to $734.87 against the American National bank When the Michigan Surety Co., paid the county's claim against the American National bank, it paid $62,000 in cash, and $3,000 worth of county road

$16,767 Claim Pending

Berrien county still has claim of $16,767.73 against the Michigan Surety Co., for county funds in the Ste'vensville State bank, and for $5,500 county funds in the First National Bank of Buchanan. Among some of the depositors of the closed banks the impression seems to prevail that the county's collection of its funds came from payments made by the bank receivers out of the banks funds, thus making the county funds preferred claims over the claims of other depositors. This is not the case The money the county has collected has come entirely from the guarantees provided through surety bonds furnished by the surety companies and if there is any loss on county funds, thus indemnified, that loss will be sustained by the bonding companies.

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American National Depositors Receive 25 Percent Friday

First Dividend Is Authorized By Bank Receiver

SLICE FOR CITY

Municipal Treasury Will Benefit To The Extent Of $38,000

An American National bank dividend of 25 percent will be paid depositors commencing be Announcement of the dividend was made this morning by R. Payne, receiver

2,857 To Get Checks The receiver said that 2,857 checks will be distributed to many positors. the first dividend the American National, which closed last December, has paid. The checks are already made out the bank staff; depositors will get their money by following the usual procedure calling at the bank, signing up and getting receiver's tificate their proof of claim, which constitutes complete record of each depositor's claim. City to Get $38,000 Receiver Payne announced that the money he will pay out will include dividend of $38,562.52 to the city Benton Harbor. The city had some $152,000 in the American National when the bank failed and only recently the city commission decided to file suit against the bank and the receiver for the purpose of prosecuting its contention that the city money constituted preferred claim and should therefore be paid in full. Mr. Payne said today that the 25 percent the city will get being paid by order of the comptroller's department Washington merely to help city finances and that has no bearing upon the city's claim that its deposit was preferred. very seldom, said the receiver, that the comptroller's department pays dividend in the case of disputed claim, preferring to wait until the queston of preference is definitely settled. The which the city will get will help considerably bolster the municipal treasury at this time city finances have been short for months, due to the fact that $200,000 in city money is tied up in closed banks locally. The city has defaulted on some of

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BANK RECEIVER BRINGS FOUR SUITS

W. R Payne recei of the American National Bank & Trust Co., Benton Harbor, today filed four more suits in the circuit court to collect stock assessments from Suits were filed against Clara Pratt $1,200 Edwin G Raub $600 All suits were started through Attorney John

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BENTON HARBOR FILES SUIT AGAINST BANK RECEIVER FOR CASH

GRAND RAPIDS, Sept. 16-(P)of Benton Harbor filed suit Th city in United States district court here today against W. H. Payne, receiver for the closed American National Bank and Trust Co., of Benton Harto recover $152,938.31 seeking of the city's funds deposited prior to 1931, when the closed Dec. 17, its doors.

The suit contended that the bank was not designated as a city depository, but that contract existed between the bank and the city, whereby the latter was to receive and disburse special fund. The city money as complaint asked the court to regard the deposit as a trust fund separate from other funds in the bank and order it returned to the city.

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Receiver's Report On American National Shows Progress

Another dividend for the stockholders of the American National bank may not be far the cash now hand taken as any criterion. According to the quarterly statement of the local bank's receiver, W. R. Payne, the cash hand now totals $234,004.93. The bank some time ago repaid its loan to the Reconstruction Finance Corporation Washington thus no bilities this type that would sorb available funds. The probabilities are that early spring see percent dividend percent dividend paid last summer out of funds obtained from the federal loaning agency. Nothing. Commercial The statement of the Commercial National of Joseph. which also being handled by Receiver Payne, doesn't indicate mediate prospects for dividend for the depositors that The receiver's statement shows the Commercial still owing the (Please Turn to Page Nine)

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AMERICAN NATIONAL WILL START PAYING DIVIDEND SATURDAY

The second dividend which the American National bank receiver, W R. Payne, will distribute will be paid to depositors, starting tomorrow As announced earlier in the week by Receiver Payne, the dividend will be ten per cent and will amount in the aggregate to $151,000. Some 4,000 depositors will participate. The American National bank quarters in Benton Harbor will be open tomorrow from 9 to 5 and every day next week to accommodate depositors, who must bring in their receiver's certificates before receiving payment. With the ten per cent dividend to be paid tomorrow, Receiver Payne will have paid 35 per cent to American National depositors.

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BANK DIVIDEND WILL BE PAID HERE ON SATURDAY

The second dividend which the American National bank receiver W. R. Payne, will distribute, will be paid to depositors, starting As announced tarlier in the week by Receiver Payne, the new dividend will be 10 percent and will amount in the aggregate to $151,000. Some 4,000 depositors will participate. The American National bank quarters here will be open from to and every day next week to depositors, who must bring in their receiver's certificates before receiving their checks. With the 10 percent dividend to be paid Receiver Payne will have paid 35 percent to American National depositors.

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Injunction Halts Sale of Personal Properties of Benton Harbor Concern

An injunction to prevent the sale of personal properties of the Benton Harbor Manufacturing company to satisfy a chattel mortgage was obtained by W. R. Payne, receiver for the American National bank in the Berrien county circuit court today. The bank holds a prior mortgage on the property. The suit was filed by Attorney John J. Sterling, who represents the bank receiver, and William Minary, who holds $1,000 in preferred stock of the corporation. The defendants include the Benton Harbor chamber of commerce and J. N. Klock, M. J. Hall, W. A. Vawter, and A. W. Filstrup, as trustees of the Development company fund. According to the bill. the bank was given $10,000 mortgage on the plant and properties of the industry on May 20, 1927, and on Jan. 1931, the Development fund gave the Benton Harbor Manufacturing company $4,000 chattel mortgage on its manufactured articles and machinery These properties were scheduled 10 be sold to satisfy the chattel mortgage. Judge Charles E. White signed the injunction Thursday.

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BENTON HARBOR CITY HALL WILL GO UNDER NRA

Final Action in Matter, However, Postponed UnNext Week

Although formal action placing the city of Benton under the National Recovery act deferred unnext Monday the sister city commission at its regular weekly meeting Monday the disclearly indicated that municioperations in Benton Harbor placed upon an NRA code basis. Adoption of city code by Benton Harbor will mean the working week large number of employes, the water and engineering departments, and will require the employment of eral more The police and fire departments do not come under the provision of the Mayor John Sterling reported on mayors, held in Holland. The was tended by the of 92 Michigan cities, resulted in the adoption urging the cities on the code far will perMayor Sterling was chairman the Monday night the mayor appointed work with the general NRA board here out code. This the first step adherence the National Recovery act. Mayor Sterling named Solon Emery, Roy Kimball, Edward and disclosed during the general by City Manager George Barnard that the city's now high as hours chiefly experts whose services are required water and engineering emergencies. Another which the commispostponed until next Monday, which is definitely scheduled for that the sister deposit of in closed American National Bank Trust company. Suit brought by city in the federal court, by which municipality seeks have funds declared preferred deposits, now pending. The bank receiver cently proposed compromise where$55,000 the deposit would made preferred, and recently petitions were presented to the commission urging that settlement 25 fected without further delay litigation. Under the agreethe city would agree to drop its statement showing the city's available cash the moment total was read and bills, including the payroll. were ordered paid far funds permit. The bills totaled

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AM. NAT'L TO MAKE ANOTHER PAYOFF SOON

(Continued from Page One) his receivership duties here, Joseph and Buchanan. He the only national bank receiver the state three trusts to boss. While in charge of the hired Hubbard, formerly trust officer American National later with the Benton Harbor to charge of the Buchanan recently landed with the federal bank St. and has gone there, while his place been filled by Gose, of Denver. The the the M., under Payne, will borne by the old The retiring this cost will be amply by the earnthe while interest and going though the bank was practically at standstill trust business. Thus the cost the will not have out of assets which Payne over to the trust committee for the benefit the old To Help Holiday Trade Local holiday trade going be considerably helped these payoffs, the dividends come before the first year. The the its 50 percent payoff, over million, the biggest stimulant to local business in long The Benton Harbor State, organized last year, now paying another percent. And the American National comes through before with another ten percent distribution channels trade and business will be stimulatthat much more.

The tourist industry is worth over to France every year.

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BENTON HARBOR STATE BANK TO PAY 10 PER CENT

$38,000 Trust Fund Dividend Will Be Available Thursday

There is more good news for twin city bank depositors today!

Dwight M. Ruth, cashier of the Benton Harbor State bank, announced this forenoon that starting tomorrow that institution will begin payment of $38,000, representing 10 per cent of the deposits held in trust under terms of the reorganization agreement adopted by the depositors.

The current dividend will be the first involving trust deposits, Mr. Ruth explained. The bank has achieved an enviable record by completing payment of all moratorium deposits in two and a half years, although the agreement did not call for completion of moratorium payments until September 1, 1937.

Profits to Depositors

Mr. Ruth emphasized today that all profits accruing to the bank have gone back to depositors and will continue to do so until the trust deposits are paid out in full. Additional trust dividends will be paid as rapidly as possible.

Yesterday W. R. Payne, receiver for the Commercial National Bank & Trust company of St. Joseph announced that the bank there would pay a 12½ per cent dividend to all holders of receivers' certificates. This is the third commercial dividend since that institution closed in September, 1931, and brings dividend payments to depositors up to 50½ per cent.

Mr. Payne also revealed that the American National Bank & Trust company, Benton Harbor, will pay another dividend early next year.