gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
bc413d6c2cbe0c4b
Response Measures
None
Description
Some accounts mention directors feared a run, but primary action was state closing for irregularities; bank did not reopen.
Events (2)
1.February 11, 1929Suspension
Cause
Government Action
Cause Details
Closed by State Superintendent of Banks Frank H. Warder following discovery of irregularities and failed efforts to secure a take-over; directors feared a run but closure was by state action.
Newspaper Excerpt
The City Trust company ... closed today by Frank H. Warder, superintendent of the state department of banking.
Source
newspapers
2.August 1, 1929Receivership
Newspaper Excerpt
An order authorizing Joseph Broderick, State banks, turn over the assets of the defunct City Trust Company to International Germanic Trust Company was signed today ... thus full payment to depositors was arranged by court order.
Source
newspapers
Newspaper Articles (23)
1.February 11, 1929The TimesHammond, IN
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EXTRA!
Ind., Feb. (I.N.S.) were inpersons stantly killed and a third seriously hurt when the Manhattan Limited of the Pennsylvania railroad demolished an automobile on grade crossing at Etna Green, 12 miles west of here this afternoon.
NEW YORK, Feb. City Trust company. Manhattan bank with four branches in the greater city and capitalization of $1,225,000 closed today by Frank H. Warder, superintendent of the state department of banking. Officials refused to comment.
MINES FIELD, LOS ANGELES, Feb. in her effort to smash the world's endurance record for women, Bobbie Trout, 23-year-old girl flier, returned to earth at 10:10:22 here today in her single motored Golden Eagle monoplane.
SEBRING, Fla., Feb. Highlands Bank & Trust Company failed to open its doors this morning. The action was taken by directorate because of silent and heavy run on the institution for the past three weeks, notice posted on the door said. The state comptroller was requested to take charge of the bank.
VILLA GROVE, III., Feb. (U.P.) Belief that body found in the C. and E. I. railroad reservoir here may be that of little Edith Mae Deardorf, 14-year-old news girl of West Terre Haute, Ind., who has been missing since January 25, was expressed by officials today.
BEVERLY HILLS. Cal., Feb. Marshal Neilan, noted motion picture director, was recovering today from the effects of carbon monoxide gas that nearly caused his death in the family garage here yesterday. His screen star wife, Blanche Sweet, discovered his plight and dragged him to safety.
HERCULES, Calif., Feb. Four men were believed to have been killed in an explosion which wrecked gelatine packing plant of the Hercules Powder company today. The building was used for packhun-
2.February 11, 1929The TimesHammond, IN
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EXTRA!
Ind., Feb. (I.N.S:) were inpersons stantly killed and third seriously hurt when the Manhattan Limited of the Pennsylvania railroad demolished an automobile on grade crossing at Etna Green, 12 miles west of here this afternoon.
NEW YORK. Feb. (I.N.S.) The City Trust company, Manhattan bank with four branches in the greater city and capitalization of $1,225,000 was closed today by Frank H. Warder, superintendent of the state department of banking. Officials refused to comment.
MINES FIELD. LOS ANGELES, Feb. (I.N.S.) Triumphant in her effort to smash the world's endurance record women, Bobbie Trout, 23-year-old girl flier, returned to earth at here today in her single motored Golden Eagle monoplane.
SEBRING, Fla., Feb. Highlands Bank & Trust Company failed to open its doors this morning. The action was taken by the directorate because of a silent and heavy run on the institution for the past three weeks, notice posted on the door said. The state comptroller was requested to take charge of the bank.
VILLA GROVE, III., Feb. (U.P.) Belief that body found in the C. and E. I. railroad reservoir here may be that of little Edith Mae Deardorf, 14-year-old news girl of West Terre Haute, Ind., who has been missing since January 25, was expressed by officials today.
BEVERLY HILLS, Cal., Feb. Marshal Neilan, noted motion picture director, recovering today from the effects of carbon monoxide gas that nearly caused his death in the family garage yesterday. His screen star wife, Blanche Sweet, discovered his plight and dragged him to safety.
HERCULES, Calif., Feb. Four were believed to have been killed in an explosion which wrecked gelatine packing plant of the Hercules Powder company today. The building was used for packing dynamite and hundreds of cases of the explosives.
3.February 11, 1929Wilkes-Barre Times Leader, the Evening NewsWilkes-Barre, PA
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LATE NEWS EVENTS
Coolidge issued proclamation today calling the the 71st This the upon the of executive. The Senate's convening is necessary in order to con
New York, Feb. City Trust Company, Manhattan bank with four branches the greater and capitalization $1,225,000 closed today Warder, superintendent Department Officials the on the institution's affairs. The bank has chiefly an Italian clientele.
San Quentin, Calif., Feb. 11.-Mrs. Sarah Louise Northcott was ported state today result learning the prison that Gordon, been of murder and awaiting death the gallows. Northcott created scene when the reached her, violently hysterical, and finally given medical treatment to calm
Key West, Feb. over the Gulf of Mexico today caused the the the for today. scheduled escape marine 120 feet means of an mask or
4.February 11, 1929Brooklyn EagleBrooklyn, NY
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CITY TRUST CO. CLOSED BY STATE BANKS OFFICIAL
Action Follows Failure of Dr. A. H. Giannini, Called in Recently, to Unravel Tangled Affairs. Two Brooklyn Offices Shut.
Closing City Trust Company by the State Banking Department this followed efforts by Dr. H. chairman of the board of the Bank of America National put the institution on its feet, Frank H. Warder, Superintendent of Banks, disclosed this afternoon. Giannini was elected nominal president of the bank several ago following the death of F. M. Ferrari, president. Justice Francis X. Mancuso of General Sessions Court chairman of the board of the company. The closing marks the most imbank suspension New portant York City several years, and the affecting Brooklyn bank the closing Raphael Scotto's private bank last September.
Five Offices Closed. The City Trust Company has five ofices, in Brooklyn three The two Brooklyn offices are 594 Atlantic ave. The headquarters ave., Manhattan, with branches 431 ave. and 2109 five branches were closed. The capitalization the Trust Company $965,712 and de$7,347,550. In his statement Mr. Warder exthe belief that would sustained in liquidation the assets, but usual in such cases declined discuss the difficulty estimate the probable trust the of Ferrari private other establishments and corporate doing Italian business. "In fairness to Dr. his associates should be stated not with institution the Mr Ferrari, and signed what regarded as optional agreement to purchase the stock.
Gianniri Withdrew. "On the date fixed in the agreement payment the stock, Giannini not wish make payment and in charge the balieved be in the assets. looking solution of the problem week which one other apparently prepared take its but direcintimate Italian banking condition the and withdrawal Giannini for the department to necessary charge Other officers of the City Trust Mancuso. chairman of board; Frederick execuvice James Cavagnaro and Louis presidents; Anthony Di Paolo, treasaddition to Messrs, Mancuso, Paolo, directors Isidore Sigeltuch, FranSasso, Saphir, GenWilliam Bailey, H. Butler, Warren Hubbard. Benjamin Vincent Henry Lazarus, Leonard Julius Sakolsky and Charles office 591 Atlantic opposite the Island Railroad Station, guarded by two from the Bergen station. but no disorder reported up read the the usual evoked by closing was notice posted on the doors
"Pursuant provisions of Sec. the State New this day the City Com(Signed) "FRANK H.
5.February 17, 1929The Brooklyn Daily TimesBrooklyn, NY
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CITY TRUST FAILURE MAY MEAN PRISON of Italian bank crash Two of the ghosts failure by to dent of his from was that Ferrari the Building building as The bank ma of their money
Auditors Still Buss To what not until of State This probably will be in double Th latest report is that the and may be great In either positors their stockholders their them in the after realizing securities by the and of offered Mr of This was of the Hospital report Robert Hoyt = date the about by for H. and charging amounts against years the holder of study his passbook and discov ered far short of what should This positor reported to an official of only two things to do. the could for all pass books for start bank to see was responsible "The first course would have rought run on the bank im and confessed. His thefts were 80 impossible to the institution and it crashed. second bank collapsed in manner and its condition had been covered up although three examinations State examiners had been made without discovering the danger.
Officials Borrowed
"It was officials not employes who caused crash. Certain of ficers and directors were in other businesses which heavy borrowing As had been bor. rowing from the bank for years. giving their and their businesses were apparently sound. there was no danger "But connivance of other officials and directors. their borrow. ings what was the margin of safety. On the surface they looked all right, but their investments were not sound and they could not meet their notes. When the cash was called for. they could not pay and the bank collapsed Either of those things could account for the fact that an examination indicated the bank was sound when. die a matter of fact, It was "Please understand. though. that neither of these were the case in the City Trust Co. know nothing about this case other than what I have read in the When this matter was put to an
6.April 12, 1929Brooklyn EagleBrooklyn, NY
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MANCUSO AND OTHERS KEPT IN DARK ON FAKE CITY TRUST ENTRY AND IRREGULARITIES
Voice of Marion Talley Matured at 15, Secret Of Early End of Career
Sponsors Insisted on Developing Her Voice for Several Years Before Her Debut, Not Realizing Girl of European Peasant Stock Had Already Reached Full Powers.
By MARJORIE DORMAN. Marion Talley, 23-year-old soprano of the Metropolitan Opera Company, has suddenly and inexplicably decided to sing "Home, Sweet Home."
After being trained by Otto H. Kahn and Gatti-Casazza for three years and presented at the Metropolitan with more acclaim and flourish than has HIT ever greeted any other American singer, and after amassing about $500,000 in three years, the pretty, practical, matronly looking girl announces that she is going back to the soil and become INCREASE farmer. "A flop," say the musical critics who and all have had their tongues their cheeks since Mr. Leading Issues All Up. Hahn Gatti-Casazza presenteed Easing in Federal ReMiss Tally. year ago The Eagle announced serve Policy Indicated. that the would not the youthful soprano her expired Bullish forces were again in conMay, 1928. Her manager, George trol of price on the Engles, refused discuss Stock today. All sorts of matter, saying he was concerned issues from one to three points only with her concert work. The before profit taking reduced them. Eagle 1929 Miss Talley be invited to sing Traders were little optimiswould tic and activity increased. Metropolitan And that was Much of the better demand for what she did the past year. stocks was the No Expression of Regret. loans reported Efforts single expression last night the further improveregret Miss Talley ment the position the Reserve the Metropolitan proved futile banks, which this morning. thought would tend make "Isn't Mr. Gati going to say he authorities less militant in their sorry Miss Talley titude. The Eagle the Rubber and Copper Up. the arrival Other items the days news were talent and so loath to say any bying when company and copper the departing singer out the back shown he was the terse joinder William single member the board who quoted? It isn't every day that opera singer retires at Surely will give out statement about the talent just before he leaves for Europe," the the offices of the National Company, 5th and 55th Manhattan, representative Miss said the gir. in the movies not negaged married There to that she yearns farmer and will live like neighbors, was declared. Takes It Philosophically. sensible maturing early, kept her head and made pracPlease Turn to Page
Chairman of Board Asked for Facts in Collapse, but Official Explanation Still Rests Behind Cloak of Secrecy Despite Many Demands.
"Due From Foreign Banks, $800,000.
Although the doors of the City Trust Company been closed for 60 days by Frank H. Warder. Superintendent of Banks, Warder has not yet disclosed to Judge Francis X. Mancuso, one of the most prominent citizens connecetd with the bank and chairman of its board. that the above entry in the bank' foreign exchange account was false entry to cover up shortage. Warder, who has been dodging ever since the City Trust was closed, again could not found at his office today. usual, his assistants said they did not know where he or whether he would come the office at all today. Judge Mancuso today said he never had been told about the discovery false entry asked for information about by Warder. He said, however, that he had been told about the entry. but not the amount, from another Aghast at Amount "Who told you about it?" he was asked. Giannini told me about it, but had been closed by Warder,' he replied Dr. Giannini is chairman of the board the Bank America, the solicitation Warder option the City Trust. When declined exercise option after an independaudit had men Warder closed the City Trust's Judge aghast when told the had no idea was just much dark about what the Banking connection anyone else. have asked for but none has been given me by the Banking Department "Who responsible for this and the other that are reported to have been didn't know there after been closed. would have of the board had known of the irregularities?" he replied. Mahoney Evasive. Jeremiah Mahoney, of counsel for was "Who the money 'covered' up the reported know; know who made I'm not keeper have to get your information else know you not. that there an was found false?" Mahoney was asked have nothing to say about Judge Mancuso's statement confirmed testimony being given daily other City Trust directors called in the Lancia Motors America. Inc., bankruptcy case, that even the directors allowed peep beneath the official secrecy which clamped who the bank, how wrecked and extent the losses. Lancia another enterprise the late Ferrari, president the City Profess Ignorance of Facts. In spite official that the bank forged notes officially denied funds were used bootleg operations and that made collateral. all the rectors who have professed things. Hubbard. member Board Assessors and City Trust said: far know the bank was solvent on Feb. and may be solvent far as Similar by Benjamin Weeks and other City They testified bankruptcy hearing of Lancia Motors terprise late Ferrari, who died on the night
Asked Sign was Feb that Warder force directors responsibility for the and was on Feb. 11 Warder wanted the that they loans both and Weeks "Some signed, but fused and walked In yesterday Huboffered the had made hurried appeal the direcWarder two hours said meeting of the held the the Bank Judge Manstated that officers and directors had Ferrari died bank. had appealed to Warder Giannini at Meeting. Dr Giannini, testified. glad help the directors institudid want happen which would reflect on an Hubbard said wantCity he value the City signed that
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7.April 12, 1929Brooklyn EagleBrooklyn, NY
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Chairman of Board Asked for Facts in Collapse, but Official Explanation Still Rests Behind Cloak of Secrecy Despite Many Demands.
Due From Foreign Banks,
Although the doors of the City Trust Company been closed for 60 days by Frank H. Warder, Superintendent of Banks, Warder has not yet disclosed to Judge Francis X. Mancuso, one of the most prominent citizens connecetd with the bank and chairman of its board. that the above entry in the bank's foreign exchange account was false entry to cover up shortage Warder, who has been dodging since the City Trust was closed, again could not be found at his office today. As his assistants said they did not know where he was whether he would come the office all today. Judge today said had been told about discovery asked information about by He said, that he had told about the entry. but not the amount, from another source. Aghast Amount "Who told you about he was "Dr. Giannini told me about it, the had closed by Warder," he Giannini is chairman of the board Bank of America, who at the solicitation of Warder took option buy the When declined cise this after an ent audit Warder closed the City Trust's Judge Mancuso appeared aghast the reported amount. had no idea was he just dark about the Banking Department the City Trust anyone have asked but none been given me Banking Department." for this and the other that are have been Judge Mancuso was asked. didn't know there were Irregularities until after the bank had been you think have of the board known of the replied. Jeremiah Mahoney, of counsel for Warder, the money 'covered' up the $800,000 know; don't know who made the entry. I'm keeper. from do that there was an found be Mahoney was asked. nothing say about Judge Mancuso's statement confirmed the given daily other City Trust rectors witnesses the Lancia Motors America, Inc., bankruptcy case, that even the directors not been allowed peep beneath the secrecy clamped the facts, who bank, how wrecked and the the losses. Lancia Motors was another enterthe Ferrari, dent of the City Trust. Profess Ignorance of Facts. In spite official admissions that the bank held forged notes sinister officially denied funds large and that all of the rectors who have testified professed complete ignorance such things. Hubbard, member and City Trust know the bank solvent on may solvent far Similar testimony was by Benjamin Weeks and other They testified the enterprise the late Ferrari, who died the Feb. that Warder tried to force the directors sume responsibility the bank's and was on Feb. 11 that doors. wanted the directors to paper they would for all loans both legally and Weeks testified. but refused and walked In testimony yesterday Hubbard the first that had made the hurried appeal the direcWarder than two hours Ferrari said that meeting of the directors held the morning in the Bank of Judge the officers directors had nervous when Ferrari the bank, appealed Warder assistance.
Giannini Meeting. Dr. Giannini, Hubbard present this meeting and said would glad not only to help the directors but the institution he want happen which would reflect on an Dr. Hubbard wantan option 7,500 City Trust stock for which was pay book value plus on percent said thought the City in this effect, but that
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8.April 21, 1929Brooklyn EagleBrooklyn, NY
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LOOTERS OF CITY TRUST CO. MILLIONS STILL FREE AFTER 69 DAYS OF AMAZING NACTION BY WARDER-WHO GOT THE SWAG?
1,225,000 Admittedly Lost Stockholders, but Officials Maintain Attitude f Silence and Buck-Passon the Reasons for Closing of the Bank.
By FRANK EMERY. have elapsed days IXTY-NINE since the wrecking of the City Trust Company and no efaction has been taken by to ferret out the perto of the punish the and Not word in explanation of sensational mysterious one of what sign of action Not one bring the wreckers to book interests of the $1,225,000 adlost to stockholders and of repetition of the city's banking scandal since word to allay the suspithat remissness. or worse, on of the State Banking Deaided and abetted the somebody's good and in the amazing history, to the City Trust Company accompanied by a concert official inaction, silence and buckand general running to comparable in recent times in only to the similar conduct other authorities in the Rothkilling.
DOWN IN CITY
AS ANOTHER
THE UNSOLVED CRIMES. history of the gambler's repeated. Frank H. WarSuperintendent of Banks, former Police CommisWarren out of office shortly Roosevelt has already his successor-and the City will be entered in the as another unsolved crime stockholders still wonderwhere their money went and an public still minus the acthat, strangely enough, it its officials to render of their Warder's actions-or lack of he closed the bank's on February 11 have been mysterious. has dodged every issue raised bank's collapse in the seven that have intervened since event. and reporters who sought the crash He has failed to how it happened that his miners were able to give the City Company clean bill of health days before the smashup, or tell the vast shrinkage of its aswent in that short time.
Warder has failed to tell the teckholders-and the taxpayers are interested in having banks dequately supervised by the State gency-why no examination was of the City Trust Company between November, 1927, and November, 1928, in violation of the that requires these checkups to made twice year.
9.May 23, 1929The Jersey JournalJersey City, NJ
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Witness Says Warder Insisted That City Trust Co. Was "Solid"
Feared Run on Bank, Directors Were Told; Probers Hear Report Directors Met at 3 A. M. on the Morning After the Death of Ferrari.
New May bald ment that the City Trust Company was unstable and funds on hand was made to the Board of in of Banks o'clock in the the of the President, Frank M Ferrari, Hubbard, former Sheriff York County, testified the nearing before ComMoses Mr. was director of the City Trust Company VicePresident of Murray Hill branch the clared that was called on the phone o'clock Judge insisted that attend meetthe Bernard Fliashnick No. 1140 Also at meeting Bernard President of the Bank the United States, made an offer over City Trust Company all assets and liabilities, Hubbard explained the De Paolo, of company haven't amount on bank and there rush the unable demand to call Mr. bard
"Solid," Warder Said
Commissioner Moses asked the what Mr. Warder had say ESTABLISH NEW this Hubbard swered that the had that the bank TRAFFIC COURT The being dissatisfied the offer made them Mr. Marcus, hurriedly accepted an invitation by Giannini him At the Barison Will be JudgeDr. Giannini, he tinued, the Nolan Slated to be Judge Court Clerk. pointed that the City Trust follow the of Ferrari's death Mr. Warder told Dr. Giannini that Hudson County Night Traffic he would going into Court to handle cases from county good If were help the Boulevard police
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10.May 23, 1929The Brooklyn Daily TimesBrooklyn, NY
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REVEALED pique Hubbard said. and the directors then went the office of Dr. Giannini, from whom they believed they could more money. Giannini's best offer. Hubbard said, for full value of the stock to stockholders and 4½ cent. of deposits. This meeting also broke off in some manner Hubbard did not explain. The directors met in Warder's office, where the books the City Trust Company were be gone over. Hubbard quoted Warder as saying at this "There no need the Murray Hill branch. know there nothing wrong there."
Had City, State Funds Hubbard also testified that Ferrari had him use his political influence get bank accounts of the city for Ferrari banks totaling $75,000. He also State account for and State count for These negotiations he through Morris Tremaine. Controller. and James Beha, State Insurance tendent. Commissioner Moses again caused friction State bodies vestigating the bank's today, when he Assistant Attorney General Robert Conklin from the counsel table his hearing and prohibited this State law from participating questioning Moses' came the result of Attorney General Hamilton Ward's remarks night Manhattan political meeting, he charged Moses was shunting the accusations in the City Trust failure rest upon Frank Warder, resigned Banking
Ward Criticizes Moses Ward objects to Moses tion being entirely "too limited and laying door one Another critic the course of the Inquiry. Leon Leighton, an torney for asked for session of the Supreme Court investigate criminalthe City Trust case, told bide his time by Lehman. The Governor told Leighadditional could time Jury have Moreland expected the formed assets and liabilities Trust and pay despositors full. open for group. that completed Mutual Trust will sign the tract the State Banking perintendent the throw open public be settled Notebook Re-enters Hearing The little red notebook in which there of paying $30.000 cash to one plained Warder' spelled backcame play again today. Warren Fielding. of the law firm Justic took the stand and told of seeing the notebook the bank. but could not tell Fred Piderit, bank examiner found the book. recalled the stand and told being sent the City Trust bank while Dr. Giannini's auditors were checking the books preparatory to taking the defunct institution. Piderit swore he went there February without examination sheets. without Instructions make port State Bank Examiner, but merely to "stay with Giannini's auditors."
Warder Censured Him He said he did not know he there, that once when Warder visited the and Piderit did be within elbowthe
11.May 23, 1929The Brooklyn Daily TimesBrooklyn, NY
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Planes on Daily Trips Now to Atlantic City
Atlantic City, May 23.-Daily airplane service between York Atlantic City inaugurated by the Curtiss Flying Service, Inc., with the arrival the municipal airport here yesterday of Sikorsky amphibian plane carrying passengers and pilot and pilot. It that two round trips will be made daily, excepting effective June The New York North Beach, Queens. The trip today took minutes. with them.' he said. But he did not explain why.' Federal hearing beHenry had believed Warder had sent men the bank "hinder on the Piderit concluded his testimony by had made report and auditors, merely without why he was followwell known HarCity Trust stockholder. said bought Ferrari stock the word Judge Francis upon whom operchase City Trust Saphir knew nothing Barker. $61.in loans made Mary not know that Mary Barker Mrs. Ferrari, listed under maiden loan Theresa Ferrari's listed under her maiden also physician further testified that he bought from agency Lancia holding volved the tangle. That July Ferrari urged him to 1928, Bank stock. Upon that the City Ferrari's statement Trust probably check for gave 570 for Says They Were Illegal. Pollak interposed the that the here: voting trust Judge sell illegal? Did not you you would not entered the deal had known Dr. Saphir said he experienced his stock. great He Judge "after much pushing and ferred DI Paolo, treasCity Trust Co. around," Dr. "pushing Saphir given shares in the City for Prudential took in the deal came light, he swore, when cancelled check without eH asked Paolo told Judge Mancuso Stand took the stand Judge agitadeath and conferthe sale of the City Trust through said he was called DI Paolo went Warder's apartment. Warder me only 'We must act Warder then called Judge Mancuso Warder rushing. "things are not you they Mancuso the Paolo, did Mancuso reiterated everything would Warder people. directors meeting Italian president after funeral. Feared "Run" on Bank Warder also emphasized his But on the bank the After veered from the posal Marcus merely cash check run, and terms. said that while DI urged for Paola held until office talk directors. despite Warder's ground broke up, said.
12.June 14, 1929News and RecordGreensboro, NC
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FORMER NEW YORK OFFICIAL ARRESTED
Warder, One Time State Superintendent of Banking, Charged With Irregularities.
New York, June H. Warder, former state superintendent of banking. was arrested this afternoon on three warrants signed by Supreme Court Justice James Cropsey, sitting as committing mag. istrate, on criminal charges growing out of investigation into the failure of the City Trust company. The investigation was conducted by Commissioner Robert Moses under visions the state's so-called MoreThe felony charge that he cepted charging his meanor charge that he held nancial interest other failed discharge duties properly in that did order the Trust for the year ending last
13.June 28, 1929Springfield Leader and PressSpringfield, MO
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BLAMED
Frank H. Warder, former New York state superintendent of banks, is pictured above shortly after arraignment before a state supreme court justice on charges of contributing to the foundering of the bankrupt City Trust Company of New York City Mrs. Angelina Ferrari, widow of the owner of the trust company. Francis M. Ferrari, charged Warder hounded her husband for money. Meanwhile, complete investigation of the state banking department activities is un der way.
14.July 8, 1929Brooklyn EagleBrooklyn, NY
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MOSES CHARGES CRIMINAL ACTS IN CITY TRUST FALL
Commissioner Backs All Accusations of Fake Loan, False Entries.
By FRANK G. HOLMES. Commissioner Robert Moses has completed the draft of his report on the City Trust Company investigation. He will hand it to Governor Roosevelt on Wednesday. The report confirms all of the revelations of criminality, brazen looting. forgeries, loans to dummies and whole series of law violations uncovered by The Eagle following the bank crash at time when both Albany and the Banking Department refused to It also confirms The Eagle's exclusive revelations of gross laxity In the Banking Department, negligence of members of the City Trust board fake entries in the City Trust books. The report is brief and constructive. Its outstanding features will be founde in an adjoining column. While Moses report was completed another and very different report on his investigation went on its way to Albany today. It was Assistant Attorney General Robert 8. Conklin's 50-page comment to Attorney General A. Hamilton Ward after Conklin's service as silent spectator at the Moreland hearings Moses not permit Conklin to the probe. If Conklin's made public this will done at Albany by Ward. is understood, however, that criticized Moses for and commissions, alleging that he failed to follow up with sufficient vigor ing Deputy Commissioner Mancuso, Michael Cleaning Laura, Judge Commissioner H. Warren Hubbard and Edward Glynn, exGovernor Alfred E. Smith's nephew. All men are Conklin and Ward Republicans. DI Paola Arraigned. Meanwhile, Anthony D1 Paola, of the wrecked bank; Federico vice president and brother of the late president, and Isidore Siegeltuch, Tammany politician and director of the bank, arraigned before Supreme Court Justice James Cropsey, sitting a committing magistrate, in Man-
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15.August 1, 1929Passaic Daily HeraldPassaic, NJ
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Defunct City Trust Depositors to Get Payment in Full
New York. (AP) An order authorizing Joseph Broderick, State banks, turn over the assets the defunct City Trust Company Inter. national Germanic Trust Company, thus full payment City Trust signed today by Justice Philip McCook Supreme Court. The Trust failed last City ruary millions in forged unsecured its had deposits of $7,347,550.
16.August 7, 1929The Buffalo NewsBuffalo, NY
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TODD IS BANK PROSECUTOR
New York Lawyer Picked to Press City Trust
Special to the BUFFALO EVENING NEWS Todd of the New York law firm of Maldwin Hutchins Todd, was summoned to New York from his summer home here Yesterday afternoon to act as special assistant to District Attorney Joab H. Banton. to take charge of the criminal prosecution growing out of the failure of the City Trust company. He will take up the work of Charles A Perkins, was removed to hospital seriously ill Monday Mr. Todd was one of the counsel in the impeachment trial of Gov. William Sulzer and during the war was judge advocate the 13th division at Camp Lewis, Washington After the war, as Federal attorney for the Northern district of New York, he successfully prosecuted Gaston B. Means and Col. Thomas B. Felder on an indictment charging conspiracy to obstruct justice
17.October 23, 1929The Times-TribuneScranton, PA
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CHARGES BRIBE WAS PAID TO STATE BANK HEAD
PROSECUTION ALLEGES WARD ER RECEIVED FURNITURE AND EXPENSIVE AUTOMOBILE FROM TRUST PRESIDENT.
New York, Oct. 23 state began its at the bribery trial Frank superintendent banks, and his opening argument Hiram Todd, sistant district attorney effect charged that Warder blinded himself to frauds that caused the collapse of the City Trust company. Justice Arthur Tompkins, presiding over jury composed mainly aged heard Todd declare Warder was the books of the $10,000 bribe from the late Francesco M Ferrari, City Trust president, withheld the state audit. The money for the bribe, Todd said, obtained by Ferrari while on sickbed on Sept. and Warder's Riverside Drive home. in previous Ferrari helped furnish the Warder and had purchased expensive automobile for Warder's daughter Todd asserted the state will show that the Annrow Realty company, one of Ferrari's many enterprises. an more than $150,000 the Trust company. Frank H. said "had made the bank the spring of 1928 the fall of 1928, the bank would have been The bank went the wall in February, short time after Ferrari's death.
18.October 24, 1929Brooklyn EagleBrooklyn, NY
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NEW IRREGULARITIES ARE FOUND IN PROBE OF TRUST HERE New evidence irregularities and defalcations. described by officials as "startling." entered the investigation of the defunct City Trust Company wrecking today when Brooklyn under Assistant District Attorney Goldstein. gan an of records the branch the wrecked jurors, learned. will follow the new leads effort determine who guilty discovered crimes and return indictments against them
BANK CHECKED IN RIORDAN SUICIDE City Trust Co. Found in Good Shape, Official Says New York. Nov. 11 (UP)-Although State Superintendent of Banking Joseph A. Broderick has found the City Trust company to be "even stronger than the average institution.'' extraordinary precautions were taken to guard against a possible run on the bank arising from the suicide of its president, James J. Riordan. While the motive for the suicide of Riordan. friend of former Governor Alfred E. Smith and John J. Raskob. and reputed to be a multimillionaire. was not disclosed. it was reported to be over losses sustained in the recent stock market decline Dr. Charles F. Norris, chief medical examiner, officially reported that Riordan was temporarily insane when he shot himself on Friday at the home of his sister. At the same time Norris denied a rumor that he withheld a report of the suicide until 20 hours after it happened in order that funds might be supplied the bank. When a report of Riordan's suicide reached Banking Superintendent Broderick, he and a staff of bank examiners immediately started an examination of the trust company, customary in cases of this kind. Our completed examination." he said. "confirms my beliefs. Namely that the bank is not only liquid. but is in splendid condition and worthy of every public confidence." When the doors of the bank open in the morning, friends of the dead banker stand prepared to deposit dollar for dollar for every one withdrawn. it was said. In 1909 there was not a plant in Mississippi for the commercial utilization of milk or cream. Now there are 306.
20.December 18, 1929The TimesTrenton, NJ
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SUSPENDED SENTENCES IN CITY TRUST CASE
NEW YORK, Dec. Anthony DI Paola, who was treasurer and cashier of the bankrupt City Trust Company today pleaded guilty to having submitted false reports to the State Banking Depart on the trust company's conditions and, on of District Attorney Joab H. Banton, was suspended by Justice Arthur S. Tompkins in Supreme Court Frederico Perrari, brother of the late F. M. Ferrarl. head of the City Trust Company also pleaded guilty to an indictment charging him with misdemeanor in with falsified reports He also was given a suspended sentence. Salvatore Soraci and Leonard Rose, who were directors of the City Trust Company pleaded guilty to misdemeanor them with had part in the State ing They were fined $250 each The City Trust Company falled last February for following the death of F. M. Ferrari.
21.January 9, 1931The Brooklyn CitizenBrooklyn, NY
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Mr expressed his gratification the offer of Governor Roosevelt knock-down mechanical sets that children used build steam shovels toy bridges and autotrucks. seemed just bit 100 juvenile for Bill. So bought him Austin. saxoThe phone. Christmas necktie and for Republicans expect that course. Bill can make lot of Governor will be position to things out of these He's profesfrom the Democratic side of the humorist and jokesmith.Senate sufficient number of votes to signal lack Republican Judge the precariously narrow which the Re An Trishman lay dying when the majority one by odor of cooking assailed his nostrils. publicans control the Upper Summoning his weeping daughter
Chief Judge Cardoza, of the Cour: of refused to permit him file appeal with his court to an from the recent unanimous de cision of the Appellate Division of the Supreme Court. That court up held conviction in Novem ber, 1929. for accepting bribe in
1928 not to cause an examination the City Trust Company. which later failed for $5,000,000. This ends which has attracted much attention. Justice Cardoza has studied the record of the trial and that there is no rea sonable doubt of the defendant's guild The evidence of guilt is over whelming. and It "must have sealed the defendant's fate in the minds of all right-thinking men."
The seizure of eight cabin stows who alighted from the Lloyd Royal Belge steamship Emile
Franequil on her arival here from
Antwerp. indicates that huge plot to smuggle aliens into this coun his bedside he said: that "Right for father. plied. "And yould be asking your mither have one before
The daughter delivered the message mother in the kitchen and brought back this answer. "Mither says cannot have of them doughnuts for the Central Magazine doesn't Bob call family doctor? He hasn't lost confidence him. has the doctor has confidence in Sidmouth Observer you in favor women taking part in public all right you really want the affairs Banner. never tells anyone her age. I've noticed that But her age is beginning to tell eloping to-night wonder what say to your mother? probably say Stray Bits. try exists. It would appear that there was collusion between the First Street you and some members think they can hear all right? Second Street Some the crew body just shut down the window.Stray Stories
"The person interrupts the proceedings will be sent home." declared the judge. "Hurray yelled the Capper's Weekly.
22.January 11, 1931Brooklyn EagleBrooklyn, NY
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Warder Was Wrong by Nearly Two Years On Closing of City Trust Co. 'Incident'
Boasted That Case Was 'Over' and it Will be 'Over' for Him Next Tuesday When He
By FRANK G. HOLMES
When former Banking Superintendent Frank H. Warder. swaggering and confident, announced with smile of smug satisfaction on March 19. 1929, that the $5,000,000 collapse of the City Trust Company was "closed incident" so far as he was concerned he guessed wrong by one year and ten months. The "incident" will not be closed for Warder until next Tuesday, when he scheduled to begin serving five to ten-year term in Sing Sing for accepting $10,000 bribe from the late M Ferrari. president of the looted bank.
Made Fatal Mistake
The cocksure Warder made tal mistake when made his "closed incident' The Eagle at once accepted the implied challenge and for 36 consecutive days waged vigorous campaign pry off the lid of secrecy with which Warder had veiled the bank looting and to bring the guilty justice While hammering away for offiaction which one. here or Albany. seemed disposed to take. the Eagle revealed day by day the hidden. sinister secrets of the plunOn April 1929. the Eagle published exclusively that Warder had failed to examine the bank for more than year violation of the banking law which requires two examinations each year. This the the examinations in consideration of $10,000 which he was tried and convicted although nine other indictments were returned against him.
Other Indictments Follow Thus the March 19. 1929. marked beginning instead of an as Warder had fatuously believed. From that beginning came indictments against score of persons connected in one way or the other with the bank. the resignation Francis Mancuso. the bank's chairman, from the General Sessions Bench: his indictment. subsequently quashed as which has been appealed by the office District Attorney in and half dozen trials But of all those indicted. Warder the only one who has been convicted the only one who has been brought justice to the end the trail which leads to Sing Sing.
Long. Painful Trail
It was long. painful trail. with Warder's counsel. James Cuff. battling every inch of the way Cuff and the astute Max D. Steuer exhausted every legal resource at their command to stave off the day of Through the delays incident to appeals and failure of District Attorney Crain's office prepare their appeal brief until months after was due, Warder has managed to stay of prison for more than year and three months after his conviction. But Judge Benjamin Cardozo ended this period of grace last Friday when he refused Warder the privilege carrying his case to the Court of Appeals
Becomes Tragedy The dark City Trust drama which Ferrari played the role of financial Machiavelli and Warder that of his highly paid servitor came tragic end when Ferrari died suddenly Warder and his associates in the bank were After an conference at which futile attempts were made to have some other institution take over the bank. Warder closed on 1929. with the brief statement that its capital and surplus had been impaired But Warder remained mum clam when persistent inquiry was made to the bank failed. for much failed, and who was responsible Rumors afloat bad loans loans to directors violation of law politicians. nothing falsification records All while Warder was working frantically get some banking group to take over the stitution and thus put an end to further inquiry Then came his nouncement that banking group been formed for this purpose which would be knowl. as the Mutual Trust Company. was in connection with this announcement that he mentioned the crash as "closed incident.' Stockholders and depositors protective committees had been formed and under the constantly increasing pressure of the newspaper campaign Warder resigned on April 22. 1929 But even then failed read gright the handwriting on the wall Confident that resignation coming on top of the formation Mutual Trust group. would end further inquiry, he boasted There has been some clamor in one newspapers. The articles published may been tional. but they did not help the unfortunate depositors, who were my concern am gratified that, notwithstanding the culties of the situation, have to render real service unfortunate matter and take this opportunity thank the construcpress of this city for its operation.
Lehman Acts Two days later came the news that Warder preparing for Europe Governor Roosevelt had consistently refused demands to appoint Moreland Commissioner, was in Warm Springs,
23.May 18, 1932Times UnionBrooklyn, NY
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LEHMAN, TESTIFY FOR BRODERICK
Alfred E. Smith, Charles S. Whitman Called by Defense as Character Witnesses.
Two Governors and Herbert Lehman, present acting Governor, witnesses today the trial of Joseph Broderick, State Superintendent of Banks, is on trial for neglect of duty for his delay in closing the Bank of United States. Alfred E. Smith and Charles S. Whitman were the former Chief Executives of the State who testified character witnesses in Broderick behalf. Mr. Smith was the first of the two called. general laugh, in he ticipated, resulted when Judge Donnellan, appointee the former Governor, pointed out that he testifying without having given his name.
Lacks Banking Knowledge moment later Mr. Smith, still receiving messages for recent radio which outlined program for nomic of United States, he not Mr. Smith said he had heard Broderick's reputation for honesty, integrity and probity referred and that he be familiar with his reputation banker," Conboy, counsel to Broderick, asked. have personal understand banking, Mr. Smith said. have heard the highest He George president the Trust Company former State Superintendent Banks, followed Mr. Smtih the stand character witness.
Both Praise Defendant Both gave accused official high praise for his honesty, rity and reputation in the banking community. Mr. Lehman testified both as factual After testifying that he had known the defendant for 25 years, Lehman told participating the effort to merge the bank with another institution during November December, hour effort Dec. day before bank closed by Broderick, Lehman "On that talked to GoverGeorge Harrison, the FedReserve Bank of New York, three separate also with the bankers who were effect merger the bank. about that night, hours before the bank was taken over Broderick, Governor Harrison told When questioned regardreputation, Mr. said he regarded devoted, conscienand public serobjections of Max Steuer, special prosecutor, sustained Donnellan, Mr. said Broderick was "very highly regarded."
Lehman On Mr. Steuer, garding the which had the reorganizathe City Trust Company. the the bankers that occasion con-
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Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
