Full suspension, Books examined
Other: Board closed the bank to allow reorganization; receiver (Ben Johnson/George Embry) was appointed and dealt with the Comptroller/treasury for approvals and later dividend payments (receivership/liquidation actions).
SHAWNEE, Nov. 15. Tecumsch National Bank, the only bank in Tecumseh, five miles of here, closed its doors today The action was taken by the board of directors to allow reorganization, Cashier W. W. Gilbert said. A run caused by the closing of the Shawnee National Bank here and the failure of five other area was blamed yesterday difficulties.
Failed Bank Head's Sons Are Arrested On Federal Charge
Donald, Assistant Cashier, of Embezzlement of $2,550: Tom, Not Official of Institution, Held for Benefitting Through of $8,400: Another Officer Sought: to be Arraigned Today
Donald and Tom Douglas, sons of Douglas, pioneer Oklahoma banker and president of the defunct Shawnee National bank, late Monday night were arrested on federal warrants charging of funds of the bank. They were arrested by W. Smith, deputy United States marshall, from Oklahoma City and lodged in the city jail where they were held incommunicado. Smith said they would be taken to Oklahoma City Tuesday morning for arraignment before George J. Eacock, United States commissioner. Donald assistant cashier of the bank, was Douglas, charged specifically with embezzlement of $2,550 of bank funds. Tom Douglas, although not an official of bank, was charged benefitting through the misappropriation of $8,400 bank funds. drawn by Herbert K Hyde, United States district attorney City. Further details the cases against were not learned in Shawnee Monday night
Official the brothers signed by special of agent, who has been working the weeks. has been aided his by George Embry of the Shawnee National receiver bank. Another official of the bank, the mother institution the Douglas chain of four and two state banks, also was named the combut not taken into custody plaint here Monday night. arrested their The homes late night by Smith and Sam of the department Both the young about 30 years age, and are ried and live Donald sides 2129 North Beard street and Tom, charged in the complaint Henry Thomas Douglas, "alias Tom Douglas," 102 West Midland street Douglas controlled banks closed November 14, last year more than in deposits. The elder Douglas, banker since territorial days, was president four of the banks, the Shawnee National, Park National, Sulphur: and the CanaFirst National, dian Valley, Asher His brother, Newton Douglas, headFirst National, McLoud, Bert Harris president of the Maud State bank. The Tecumseh National bank, the financial institution the oldest county, closed its doors 15, the day following failure of the Douglas chain. Its closing was attributed the fact the Shawnee National bank was correspondent. Bankruptcy Petitions Filed First rumor of irregularities in the came with from Embry, several the bank's closthat shortage of $150,000 had Since that however, indication of further irregularities has been although department of justice agents spent considerable time records of the Douglas, and Newton Douglas filed petitions in shortly after the closing the banks. The former listed of 023.03 and of The listed of liabilities $24,070.85 and claimed exemption. Their join petition listed liabilities and assets.
Examining Trial For Three Former Employes set By Commissioner
Preliminary hearings for Donald Douglas, Shawnee banker, and his brother, Tom Douglas, will be held Monday in Oklahoma City Monday before George J. Eacock, United States commissioner, it was announced Thursday when the case was continued following agreement of Cecil Wright, also charged in the investigation of the defunct Shawnee National bank, waived preliminary hearing January 10 when he was arraigned.
Bankruptcy Hearing Tuesday Personal bankruptcy hearings of H. T. Douglas, pioneer Oklahoma banker, and his brother, Newton, head of the McLoud bank, are scheduled for Tuesday before Paul G. Darrough, referee in bankruptcy. The two bankers filed joint petitions of bankruptcy, following the closing of the bank, listing no assets and liabilities of $402,000. The Douglas brothers and Wright face criminal charges which were filed following prolonged investigation into the affairs of the bank which closed November 14, 1932. Donald Douglas is charged with embezzlement of $2,550; Tom Douglas is charged with benefiting through a misappropriation of $8,400; and Wright is charged with the misappropriation of funds for Tom Douglas' benefit. The trio was arraigned January 10 at Oklahoma City following their arrest the night of January 9. Five Other Banks Close The crash of the Shawnee bank took with it five other Douglas controlled banks at Asher, M Sulphur, McLoud, and Allen, and the Tecumseh National bank, which although not part of the Douglas chain, experienced run following the Shawnee bank failure. Irregularities in the Maud and Asher banks also have been hinted by investigators
No word had been received Thursday by assistants the defunct Shawnee National bank George Embry, receiver, who Washington on business connected with the Although there was no statement released that effect, was presumed that Embry made the trip to Washington for conference with the comptroller of currency likely that unless reorganization plans are approved by the comptroller, declaration of dividend such was authorized for the Tecumseh National bank this week, may proved for some time in the immediate future. Several weeks ago Embry expressed the opinion that affairs of the bank shaping up in such way that the comptroller might declare dend as early the month of June.
Checks Totalling $3,236 End Payments From Accounts Of Tecumseh National Bank
The county recovered Friday the last of the approximately $233,700 in funds which it had deposited in county banks at the time of the crashes in 1932, when Ben Johnson, Tecumseh National bank receiver, gave Stanley Grimes, county treasurer, checks totalling $3,236.20.
Of that amount $2,518.28 was the balance of the principal and $717.92 represented the interest drawn by the county from the day the bank closed its doors to Friday. The $717.92 goes into the county school fund, Grimes said.
On Nov. 14, 1932, when the bank became defunct, the county had $25,000 in general funds and $93.75 in interest to its credit in the bank. The bank turned over $5,279.55 in warrants to the county shortly after the failure and the remaining $19,814.20
The county recovered Friday the last of the approximately $233,700 in funds which it had deposited in county banks at the time of the crashes in 1932, when Ben Johnson, Tecumseh National bank receiver, gave Stanley Grimes, county treasurer, checks totalling $3,236.20.
Of that amount $2,518.28 was the balance of the principal and $717.92 represented the interest drawn by the county from the day the bank closed its doors to Friday. The $717.92 goes into the county school fund, Grimes said.
TWO SHAWNEE INSTITUTIONS ARE INCLUDED
Receiver Refuses To Reveal Amount Or Time Of Payments
6,000 TO BENEFIT
State National And Tecumseh Institutions' Payment Approved
BULLETIN WASHINGTON, Dec. 20 (UP)—Small dividends are contemplated for depositors in the closed State National bank of Shawnee, and Tecumseh National bank early next year, Comptroller of the Currency J. F. T. O'Connor said today.
He declined to indicate how much he expected the dividends would be, but it was believed five per cent was the likely figure, with 10 per cent a possible maximum. O'Connor would not make a definite prediction as to the date of the dividends, beyond saying there was "not a chance in the world" that they would be declared before Christmas.
WASHINGTON, Dec. 20 (UP)—Small dividends are contemplated for depositors in the closed State National bank of Shawnee, and Tecumseh National bank early next year, Comptroller of the Currency J. F. T. O'Connor said today.
He declined to indicate how much he expected the dividends would be, but it was believed five per cent was the likely figure, with 10 per cent a possible maximum. O'Connor would not make a definite prediction as to the date of the dividends, beyond saying there was "not a chance in the world" that they would be declared before Christmas.
Assurance that approximately 6,000 depositors in four defunct Pottawatomie county banks may expect dividends of undesignated size was given the Star Friday morning by Ben F. Johnson, receiver for the four failed institutions.
Johnson refused to set any approximate figure on the dividends and also refused to tell when the dividend checks might reasonably be expected here. He said that he was doing much more than the average bank receiver in even releasing the announcement that dividends will be forthcoming.
Estimated at $200,000
It was reported unofficially, however, that the combined State National and Tecumseh National would inject something like $200,000 of long frozen funds into the business life of the county. Payments have already been approved for these two banks.
A dividend from the two above banks await only the receipt of signed checks from the treasury department in Washington before being released, according to a typed announcement provided by Johnson. The receiver refused to estimate how many persons would be benefited by payment from these two banks, but stated that when the Shawnee National and First
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