First National Bank (Detroit, MI)

Article Text

MICHIGAN BANKS ORDERED CLOSED

Proclamation Provides for Eight Day Holiday

Nearly 600 banks the lower peninsula state Michigan ordered Governor Comstock Tuesday morning of the ment the Union Guardian Trust Company of which with large of branch banks tions the state Unable their the bank meet steady demands made on Conferences called with state officials leading of including the heads of the General Motors. Chrysler Ford The former companies while the Ford company deposits excess of and claims have supported the bank with exceeding request made Ford company interests to those of smaller depositors and of Finance Corporation which already made loans the bank This port which they had already the bank Fearing bank panic after conference with leading and and state officials holiday decided upon until adjustments could made whereby all banks of the state would prepared withstand demands usually follow such financial upheaval Much citizens over the and particularly the large cities such Detroit denied made Wednesday ing. permitted withdraw per their relief and that perfected many the banks of again full before expiration of the eightday appreciable effect the Indiana cities by the the Michigan banks Banks of this county had with Michigan local bankers state that they amply able to render full their and depositors that he knew the general banking condition good. that the plan adoptwith approval struction Finance Corporation simply calculated to maintain steadiness an unstable financial situation.

Article Text

THE MICHIGAN MORATORIUM

The Governor of Michigan has closed all the banks and trust companies in his State for eight days. It is the same thing, on a larger scale, as has happened in many small towns in the Middle West and West during Shutdowns the course of this depression. It has happened all over Michigan for the same reason, Vs. Runs which appears to us to be a good reason. This reason simply is that the gold standard dollar has been growing more and more un-get-atable. It is better to freeze money in the banks and go on a scrip basis temporarily than to permit bank runs, which might produce bank failures. We think Gov. Comstock of Michigan has acted wisely and with true prudence. As we see it, the Michigan moratorium is another argument for cheapening the dollar so that people can get it more easily to buy goods, pay debts and keep business in motion. President Hoover told us Monday night in solemn tones that if we go off the gold standard we shall have economic disaster. What does he think we're having now, while we still cling to the gold standard?

Article Text

REPORT DETROIT ACTION

Reorganization Plans Two Banks Said Considered.

DETROIT. (AP). The Detroit News says that immediate payment of 50 percent of deposits in the First National-Detroit, and the Guardian National Bank of Commerce in Detroit is proposed under reorganization plans now being considered, contemplating the organization of two new national banks.

The Reconstruction Finance corporation, the News says, has been asked to advance in the neighborhood of $135,000,000 to place the plans in effect, and further said that aid is expected from the federal reserve bank and New York banks.

WASHINGTON. (AP). Senators Couzens and Vandenberg declined to discuss reports that the Reconstruction corporation had made a large loan to two Michigan banks. Neither would officials of the corporation comment.

Article Text

MICHIGAN'S BANKS OPENED TODAY FOR LIMITED BUSINESS gan's banks opened for restricted business today. some of them for the first time since Governor William A. Comstock's emergency closing order ten days ago. Rudolph E. Reichert state banking said that most banks were "doing business in the best possible way," and congratulated the state's bankers on their cooperation during the emergency. He said that most banks were cashing checks that had not already been cleared, on the depository percentage basis laid down in the governor's second proclamation issued Tuesday. Generally, the banks were following the plan under operation for the past week in Detroit, allowing depositors to withdraw 5 per cent of their deposits. In Detroit at the opening hour there were no lineups outside the banks and few instances of unusual numbers of customers inside.

Article Text

NEWS

Page. Movie Reel Editorial Movies Markets Winchell Ads Folly Island. Weather Radio Sports 16 Plans started for early pres. the west farm relief proposal. Page The United States general ruling on the proper of assembling to vote repeal. Page The senate banking heard charge the City control the mar ket for its stock. Page Senator assailed he clared control by New York Page The senate did some expense paring and then wiped added Page

Mrs. Theodore Roosevelt belated apology from health officer. Page Senator Thomas Walsh sailed for Cuba to marry sugar grower's Page President Roosevelt appointed Representative Douglas of Arizona as budget director. Page Michigan banks reopened. Page 2.

Dr. Charles urged cational guidance for employed adults. Page The repeal proposal was put Page The city council committee recommended the department personnel cut Page The park board had natural goldfish bowl Birch at Page Presidents of state teachers' col. united against the proposed curtailment of the state sys. tem. Page Northwest Feed Dealers told unregulated trucks affected their business. Knowledge of school subjects was called not the essential of education of girls by Dr. Malcome Mc. Lean. Page Miss Helen Wilson, former resident of Minneapolis, died Tre mezzio, Page 6. Patrick 79. deputy sheriff, fell dead. Page Two suspended Paul policemen were sentenced for larceny. Page

SINCE prohibition went effect several states which were dry have shown wet sentiment. map and story indicate the Page President-elect Roosevelt has decided he'll rely on service agents guard him the inanguration. He told Arlayne Brown, world champion revolver shot. offered that she won't be needed. Page The intelligence that gets marks not the only from educator. Dr. Malcolm college rector the University of urged education that will fit life. Page

The big Japanese drive in Jehol started. Page The Mount Everest plane party from Sicily after five Page WOMEN'S NEWS. Evon Nollette describes garments designed for double duty. Page 13. for Swedish meat balls by Kate Smith. Page 13. Restlessness is Elsie Page 13. Jessie DeBoth presents Sunday dinner menu. Page 13. SPORTS. Mickey shaded Frankie Knauer the six-round of the boxing Page 16. The city high school basketball will wind up today. Page 16 Page 17. Alexandria's quintet was elimi nated by the St. Paul Flyers in the feature of the amateur basketball the Ascen sions, Holy Cross and Belle Plaine also won. Page 17.

MARKETE

Bullish vanished in the Minneapolis pit; Chicago tumbled. Page 18. Stock values slumped to new low averages on large turnover. Page 19. Bonds suffered the worst relapse since the first the 19. Page 19. Dog and lamb trade advanced in South St. Paul: cattle prices mained unchanged. Page

Article Text

MICHIGAN STUDIES NEW BANK PLANS

Organization of State Reserve Bank Proposed by Senator Orr.

DETROIT, Feb. plans designed aid in releasing billion and half dollars in bank deposits were under scrutiny in Michigan tonight, while bankers awaited and national legislation for the 530 banks operating restrictions. One plan, calling for the issuance of transferra certificates against the frozen deposits of banks, brought forward by Rudolph E. Reichert, state banking commissioner, who under legislation pending before the state legislature would come the virtual banking dictator Michigan. The other, favoring the organization of state reserve was proposed by State Senator HerOrr, Caro, (Mich.) banker. plans make available at once 50 per cent of all deposits by organizing two take over the liquid assets of the First NationDetroit and the Guardian National Bank of Detroit, the two largest in city, were under cussion. Further it appeared, action tomorrow by the house in Washington on the Couzens giving powers over national banks to the comptroller of the currency. The olution was approve imously day by the house committee. Reichert's plan drew state-wide today. He proposed, in effect, the issuance of ferable which would be acceptable in virtually all purposes the same as currency. They would be issued the total volume of deposits that the banks are unable to pay cash. The only limitation circulation, Reichert said, would be the willingness of creditors to accept certificates on their face value. The certificates, Reichert said, aftbeing employed to pay rent, buy food, and other essentials, could be turned into the banks at full face value in payment of obligations owed to the banks. State Senator Orr, declaring he is proceeding with plan for organization of a state reserve bank, said reof many outstate banks now are held in Detroit institutions. which are withdrawals on the same basis as that of other itors- per cent of the total deposited. Under his reserve funds would be carried in outside In most parts of the state today, banks continued to pay out five per cent to depositors.

Article Text

U. S. Moves to Strengthen Banks

NEW TREASURY HEAD TALKS TO MILLS

Woodin Called Into Conference as Federal Aid Is Extended Institutions

MONEY TO BE ADVANCED MICHIGAN ORGANIZATION

Feb. 27. The federal government Monday prepared to exert all available to strengthen weakened links in the country' banking system. William H. Woodin, secretary of the was here conference the outgoing are to act, not the said. With those words he turned aside all queries regarding the banking situations caused Michigan and Maryland to close their banks temporarily and led banks in number of Ohio cities limit withMills Sunday conferChairman Eugene Meyer of the federal reserve board assistance the treasury the banks could Directors the Reconstruction Finance corporation continued their study the They met in two protracted secret sessions Sun- m unusually authoritative sources was reported the R. F. has agreed to the two big Detroit banks reorganized new capital supplied by Henry Ford. said in the same quarter that an additional $40.would advanced by other financial institutions

FORD FINANCES two BANKS Detroit buttressed the lions Henry Monday came the of plans lead Michigan out of the difficulties which in the of statewide banking holiday two The banks whose capital will consist 250,000 furnished by Mr. and his are expected to open for business They be built from the of the First National Bank and the Guardian National Bank of whose depositors be able receive immediately about cent of their Disbursement remaining 70 per cent must await the Continued on Page

Article Text

MAY BRING CHANGE IN BANKING PLANS

By The Associated Press.

DETROIT, Feb. 28.—The Detroit News today said that complications have arisen in the plan for the establishment of two new banks in Detroit by Henry and Edsel Ford which will at least delay the project and may entail a change on the previously-announced program.

The complication, the News said, arises out of the amount which could be paid to depositors of the First National Bank, Detroit, due to refusal of New York bankers to grant a $20,000,000 loan to that institution.

The paper said it is not known yet whether Henry and Edsel Ford will go ahead with their plan for establishment of two new banks here on the basis of a smaller payment of deposits. It stated, however, that it was possible the plan may go through so far as the organization of a new bank out of the liquid assets of the Guardian National Bank of Commerce is concerned.

building. No official estimate of the damage has been made but it was expected to amount to several million marks.

The interior of the plenary hall, the members' seats, the president's tribune and public galleries were destroyed.

One fireman was temporarily overcome by smoke but none was injured.

BERLIN, Feb. 28.—Fire of incendiary origin swept the large ornate German Parliament building last night and did damage estimated at millions of marks. After two hours' work firemen had the flames under control at 10:45 P. M. but ruins still smouldered in the east wing. The gilded cupola above the Reichstag meeting hall was reduced almost to ruins.

Police arrested a man giving the surname of Van Der Luebbe, 24, who said he was a Dutch communist. Authorities had a report that ammunition had perhaps been placed in the burning heaps. All

Article Text

New Detroit Bank Formed With Capital; Aid

WASHINGTON, March formation bank, the National Bank Detroit, capital of twenty-five lions dollars was day by the Corporand Alfred Sloan, dent of the General Motors corSecretarv Woodin approved the The announcement was made treasury, where been for days solution Detroit banking problems. bank will take over part of the assets the First National bank and the Guardian National Bank Commerce Detroit and sume part the deposits. Half of the capital. will be form of subscription the common stock and has paid by General Motors Corporation. The balance has been supplied the United States government through the Reconstruction nance form subscription to the preferred

Article Text

Reconstruction Finance Corporation to Supply

March tional bank of Detroit, with capital millions dollars nounced today. by the Reconstruction corporation and Alfred Sloan, president of the General Motors corpora- approved the

The announcement made the toward solution of De the new bank the assets First National bank and the Guardian National Bank of of Detroit and assume part of the deposits, Half of the capital. will be in form of subscription the

The balance has been supplied by the United States through the Reconstruction Finance corporation in the and the joint statement make available bank with ample The statement issued by Jesse Jones, of the Finance that and old and out of legal per cent of their net deposits will be immediately made the the two old This, statement said, will be made quisition the more liquid assets and the GuardNational Bank of Commerce.

Officials of the Grand Rapids Savings bank today attempting to fulfill details of financing program out(Continued

Article Text

No Large Loans to Bank Officials Revealed in Audit

No large loans officers or directors of the First National Bank have been revealed in check on loans since the first of the year, announced by the bank's conservator, Paul C. Keyes, press conference Monday morning. Keyes had been asked previously whether his check had "definitely established" whether not director of the bank had obtained loan of $715,000 shortly before the closing of the bank. He replied that not only had the alleged $715,000 item "not appeared so far," but that his staff had "checked every loan of $50,000 and over from Jan. to the closing of the bank" and have found "no loans of that size or over to any officers or directors, as far as can be identified." Keyes said that an investigation of all loans was being made by his staff, some 20 key men from the personnel of the First National's loan department having been retained because of their intimate knowledge of the circumstances surrounding the loans. Keyes indicated that the loan check was made because of rumors that large loans had been made to certain officers and directors just prior to the bank's closing.

Article Text

For Closing of Detroit Banks

DETROIT. June standing Street to Henry Ford financially lay directly behind the closing of two national banks in troit tonight rested in the records of grand jury investigating the city's involved banking affairs. The charge. the most sensational in two made by Herbert R. Wilkin. Detroit banker. his knowledge affairs the closing the Guardian National Bank of Comwhich with the First National Bank Detroit. did not reopen after the Michigan banking holiday. Street believed it had chance. up Ford's in the Michigan banks declared Wilkin. deplete his working capital that he must deal with or broke think they realized that here the time to finish what they had started. But they were very sadly fooled. Previously in his testimony the ness had startled his hearers with the declaration that $4,000,000 was removed from the two banks before the state-wide holiday was proclaimed February 14. He said two such with drawals were those James Couzens, wife the Michigan senator. and the Second National bank of Texas. He also asserted that many checks had been cleared through the Detroit

Continued in Page 6, Column 8.

Article Text

Banker Alleges Wall St. "Plot" Against Ford

Heavy Withdrawals Were Made Before Holiday to Tie Up Deposits, Charge

DETROIT June 26-(P)-A witness' charge that long-standing Wall Street plot to "strangle" Henry Ford financially lay directly behind the closing of two national banks in Detroit tonight rested in the records of one-man grand jury investigating the city's involved banking afThe charge, the most sensational in two weeks of open testimony, was made by Herbert R. Wilkin. Detroit banker, in detailing his knowledge of affairs leading up to the closing of the Guardian National Bank of Commerce which, with the First National Bank-Detroit, did not reopen after the Michigan banking holiday "Wall Street believed it had chance, by tying up Ford's deposits in the Michigan banks declared Wilkin to so deplete his working capital that he must deal with them

Article Text

Detroit Bank Situation To Be Parley Subject

Detroit, July DeFree Press printed Thursday dispatch from Washington that President Roosevelt has in. structed the Reconstruction Finance corporation solve the banking Detroit and that the way will be paved at meeting Friday in for the of credit facilities throughout the entire "Out of this session, which will be devoted entirely to the Michigan ation," the Free Press said, definite for organization new banks in Detroit, or for the opening the closed First National bank and Guardian National bank of commerce, is expected to emerge."

Article Text

BANKRUPTCY HEARING POSTPONED TO OCT.

(By A. O'Brien in federal court today postponed until October hearing petition ruptey filed against the Detroit fed. for the First National Bank The made permit William for Detroit Bankers time in which to prepare an swer.

Article Text

witness before the grand jury at a later date.

Later he returned to a criticism of the Detroit Bankers Co., holding company for the closed First National Bank-Detroit, and named Stair, a former president of the company, as one of three men of whom he declared "it is doubtful if they can escape indictment by the Federal government." The others he named as Peter J. Monaghan, attorney and former bank official, and Wilson W. Mills, former chairman of the board of the First National.

"When I say there will be federal indictments, I mean just that!" shouted Coughlin. "I don't say these men will be found guilty. All I want is that they be given a chance to clear themselves. The people of Detroit will not be subdued until some persons are tried and found guiltless!"

Article Text

INIQUITOUS ACTS IN BANKS DENIED

Two Detroit Bankers on Stand in Grand Jury Probe

Detroit Denials charges "iniquitous the and the Detroit Trust Co., made in recent testimony Couzens the Rev Fr. Charles Coughlin today from two er-witnesses before the one-man Detroit bank auditor for the es the priest who said 'someone has been after being read the statement Father Coughlin that counts the bank had been deliberately padded before the state banking holiday Feb. 14. Thomas Long. counsel for the and the denied made Couzens, the stand last check "kiting" and posits between the two which tended to show greater than actual Mc Gonagle said that Feb. 11. last day the First National open. was at least 000 available cash in case run. The bank's deposit liability the time The witness declared that there had been no concealment figures, as to the ment of the bank did not show the pledged acts, nearly from various parts the show that pledged assets did not appear among McGonagle also testified that the liquidity Jan. percent. and said the same on Feb approximately the last day the bank was His testimony was made in answer another charge of Father Coughdeclared the bank's liquidity 14 that Wilson W chairman the bank board. falsified when he testified the liquidity was approximately 25 witness also testified that the The bank had least cash government and bonds Feb. meet deMills had placed the figure which Father Coughlin as. serted was falsification.

Article Text

Also Repudiates Statement That Holding Company Paid Outrageous Prices Stocks It Absorbed and Passed on to Widows and Low-Salaried Employes

Aug. nials of charges of in the closed First Nationand the Detroit Trust made in recent testimony by Senator James Couzens and Rev. Charles Coughlin, today from two bankerwitnesses before the Detroit bank jury. McGonagle auditor for the First National. questioned as to charges by the militant priest who testified last week, said "someone has been misinformed" after being read the statement of Father Coughlin been padded before the state banking holiday Feb. 14.

Denies Check 'Kiting' Thomas Long. counsel for the First National and the Detroit Trust Co., denied charges made by Senator Couzens, also the stand last week. of check "kiting" and reciprocal deposits between the two institutions which tended to show greater than actual McGonagle said that Feb. 11. 1933. the last day the First National open. there was at least available cash case run. The bank's deposit liability at the time was more than The witness declared that there had been no of questioned as to why the of the bank not show the amount pledged acts. presented nearly bank statements from various parts the country to show that pledged assets did not pear among Senator Couzens in his testimony had the Column

Article Text

BY COUZENS

Tells How Changes Were Made When Loan Officers of Bank Were Called Weak

'Utterly False' that He Dictated Bookkeeping Method, He Declares

DETROIT, Sept. Detroit's two National banks failed because government aid withheld when was needed, Emory Clark, director of the First National and chairman of the board of the Detroit Bankers Co., clared today before the grand jury Michigan bank closings. "Senator Couzens was critical the RFC corporation loan asked the Union Guardian Trust Clark asserted. "That upset the applecart."

DETROIT Sept. Mills. former chairman of the closed First National BankDetroit. told the one-man grand jury bank today that federal bank iners in May, 1932, had criticized officers of his institution being His testimony came in sponse to question testimony given recently by ator James Couzens. who read from federal examiners report the statement that many officers of the bank were weather zAlfred Leyburn, former (Please Page Column

Article Text

Fraud Is Charged In Detroit Banks

Detroit, Detroit Bankers company and the Guardian Detroit Union Group, ganized "fraudently deceive" of Detroit's tional receivers for the banks holding used the banks' assets ulation, First National bank receiver, Schram the Bank merce, charged crossbill answer started by seeking to prevent 100 per assessment.

Article Text

Stockholders' Motion Heard

Want to Show Cause of Insolvency

By Jack Weeks

Dec. National banks prove their contention that banks were wrecked within 30 days followappointment Government asserted FedJudge Knight argument attorneys for holders seeking injunction prevent double and counsel bank's the court reserved decision until the fer the case to master in chanhearing was held here through the inability Judge Knight present in Detroit today. Judge Knight assigned this to assist the Fedhas hearing cases in their jurisdiction.

Mass of Evidence Pointed To The asked that the matter referred the great to be presented. examination condition holding companies units of the latter during the finding of order and the fact judge may be available try the when comes up Protesting against referring the case master chancery taking great amount counsel for wouldn't enough to the the would require some 200,000 items assets in the First National matter how the bank became insolvent, that's no defense against Want Insolvency Cause Shown James Murfin, counsel for stockholders, vehemently asserted they did not expect controfinding but did allege the Comptroller admitted the solvent holiday March appointed. In April the our choicest assets. This bank wrecked within facts When Wood suits stockholders tried within Judge Knight asked him to prove his legations fraud the holding companies that Wood answered that introduce minutes the holding bank to bank within the Attorney Frank Robson who led argument for effect the ceiverships, by which assets have been had the and ability of its members meet obligations.

Blames Agents "Here First entirely solvent had abundance assets The condition which about the receivership acts Government agents the tion those facts cannot be made moment He asserted that the statute viding stock the holding companies regulations that did contemplate apply by the officers. Appearing the hearing for Judge Murfin and Mr. Charles Louis George Klein and James Turner Attorneys and Lawrence Levy represented the receivers.

Article Text

BANK RECEIVER

C. Thomas, the first receiver closed Clymer later first receiver of the Pittsburgh, and more recently. ceiver of the First National Detroit, has to become vice president First Wisconsin Bank of waukee,

Article Text

naba attorney, recently observed the fiftieth anniversary of his admission to the bar.

Sturgis-Leonard Green. 15-year-old son of William Green of Niles, was killed by lightning while fishing from a rowboat in the St. Joseph River. Ann Arbor-The summer session of the University of Michigan has closed with an enrollmes of 3,727. a gain of 310 over the enrollment of last summer.

Monroe-Eighty-five leases for oil and gas covering farm lands in Sum merfield. Whitford and Dundee Town ships, were filed here recently with FT Reimer. Monroe County, register of deeds

Grand Rapids-Mrs. Ida Coughan owr. of Brazil, Ind. here for the September convention of the Tin Can Tourists Association. is dead from heart attack at th Tin Can Tourists camping grounds near Soldier's Home Lansing-In spite of the usual sum mer slump. employment in the auto mobile industry in July showed an increase of 43 per cent over totals for July, 1933, according to announce ment by the Department of Labor and Industry

Niles-A permanent injunction re straining the Michigan Gas & Electric Co. from charging a rate in Niles in excess of the figure set in its 1913 franchise has been granted by Judge Charles B. Collingwood, of Lansing in suit by the city Detroit-James Gleco. of Sarasota menagerie man with Ringling Brothers and Barnum & Bailey circus which recently played Detroit, is dead here, the sixth of the group of 47 circus employees and performers re ceiving treatment for typhoid to suc cumb.

Owosso-The City Commission has ordered that the proposal to bond for $130,000 for the construction of sewage disposal plant be submitted to the voters for the second time at the primary election in September It was voted down recently at special election.

Detroit-Action of friends and alumni of Hillsdale College has provided funds with which the college may pay off an $11,000 debt to the First National Bank-Detroit and thus avert a levy on campus property granted to the bank receivers by the Federal Court