fca27ea4f197b6cdAccommodated withdrawals, Full suspension, Books examined
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Christmas Savings Funds Have No Priority Claim Jan. 27 The Comptroller of the Currency declined make any statement regarding the the Chelsea National Bank and Trust Company, Atlantic City, did for business quesofficial the treasury department said, that Christmas savings funds subject receivership regulations.
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Runs After Withdrawals Not Heavy in Cash Demands Aggregate, Met Fully, Promptly ACCOUNTS 76 Substantial Depositors Show Faith in Soundness (Continued from Page One) fidence one firm in future Atlantic City. David Reed, Clearing House the city expressed the fact that bank deposits today were normal." Heads several city banks gathat home Mayor Bacharach last night to cuss the for early of the closed ChelseaSecond Bank and Trust They discuss for any plans, stating merely that foundation for the reopening of the bank and the tire prosperity Atlantic City pends upon confidence alty citizens, as well pressed by the lack of hysteria Francis McGinnis, of Philadelphia, national bank charge of the he had not had time more than begin his work looking into the bank's affairs and he not mitted by the rules the department make any public statement at this Calm Psychology Lauded bankers and finanofficials, the meeting Mayor Bacharach's home last themselves the calm displayed by lantic City They couldn't have any other city. The deposits normal and money came into This opinion the situation more than ordinary terest for circles. For many years they had been hearing iterated time and again that bank closing could occur Atlantic without ruining the nancial structure. long years this notion had reached the dignity of financial gospel the reactions this old dogma suddenly the test teresting observe. Clearing House Statement the text the statement issued by the Clearing House Association: members of the Atlantic City Clearing desire express citizens our their gratifor the splendid loyalty today support our financial regret that the Asing of one its member banks. the such courageous support expressed result in and finanical the community. dispatch from Trenton yesterday stated that included among owed depositors of the closed National Bank and Trust $50,000 State funds arising from the motor fuel tax.
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No Access to Records Unless Real Evidence of Produced, management Acting Comptroller Awalt Rules Hints Probe Is Being ConChamber Committee Pushing Plans for Reorganization Access to the books of the closed National Bank and Trust Company denied by Awalt, Acting Comptroller of Currency. The refusal contained in letter sent Charles man, counsel for the Depositors Protective Association Samuel Comly, chairman of the Association when informed of the refusal, said like cold banking business appears very continued ought put preacher charge. think handling untouchable. letter that the receiver and the Comptroller under consideration the present pursued the conduct the bank prior closing. Facts, however. demanded. the statement made that officials cannot depend upon rumors circulate after the suspension bank. Text of Letter Hyman The letter Mr. Hyman follows: receipt your April wherein you state associated with execuDepositors' Protective Association Atlantic City. your garding this your quest delve into the books advised that the Comptroller the Currency and the most action necesassets the for among the crediThe receiver of bank the the the shareholders. and with Page Seven)
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Receiver Chelsea Depositors Seek Clearing Up Discrepancies answer to letter claiming discrepancies in two statements of Charles Faircloth, receiver of the National Bank and Trust Company, being awaited by members of the Depositors' Protective Association The association, already denied access to the books the institution. declared in the letter that there difference of few hundred dollars" tween the statement issued April and the one giving the condition of the closing Mr. stated the being Comptroller the Currency The letter received from office by committee reply then Comptroller denying the right examine bank's affairs. Nothing in about difference the the committee Faircloth pointed out the discrepancies follows: your first statement the lowing item appeared: Assets actual April purportstatement the exact condition the bank suspension, assets of Which do you explain the discrepancy? April show unsecured liabilites suspension being This item, understand mean the amount of deposits. April show condition time of Time $2,116,863.67; How you explain April show secured and April rowed and payable) are shown
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Decision Depositors Seek to Open Books; Many Enrollments The petition of the Depositors' Association obtain entry the books closed National Bank and Trust Company taken under advisement by Federal Judge Avis Camden terday. The petition charged irregularities in affairs the fore its closing. Charles attorney for the depositors, said last night that expects Judge Avis make known his Edward delegate the National Depositors Commitnight that more depositors closed restricted banks this city had registered with South unit of the committee headquarters 1320 Atlantic yesterday. Four volunteer clerks were kept busy all he ing the registrations the office kept hour and beyond closing time. registrations include every range from little girl deposit. We had no difficulty securing the deposits everyone more willto co-operate in obtaining Some of the tales told us on the first day pitiof those registering insisted that hear Mr. registration headquarters would be open daily from 10
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Fights Bank Suit Receiver Claims Court Has No Right Bare Chelsea Records Charles Faircloth, receiver for the National Bank and Trust yesterday brought positors the prior to January when the bank closed. counsel, Bourgeois and Faircloth notified Charles Hyman, for the deposithat would move missal the action Federal Court Friday The filed on June Hyman behalf Samuel and Elizabeth Streeper and Ralph stockholdThe charged in the affairs bank before that the order Faircloth produce all do with its affairs its closing. Faircloth seeking dismissal of the action ground that complaint equity therefore court without jurisdiction to proceed in the matter.
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Chelsea Delay Receiver Opposes Plea to Scan, Records, Issues State July deposicommittee the closed Chelsea-Second National Bank Trust Company, Atlantic City, today asked Federal Judge Avis for order authorizing access institution brief filed Charles Hyman, counsel the committee, stated committee intends instituting suit against directors the based on alleged regularities." The brief pointed out that the committee hopes sufficient information from the books of the from which proceed proposed action. George Bourgeois, counsel for Charles Faircloth, receiver for the bank, argued against the quest, that the bank's affairs are already under probe investigators the Department Justice the Federal Banking Judge continued the case for days. In the five months of the tion the the ChelNational Bank and Trust Company approximately twelfth the assets been turned into cash, according to the quarterly condition issued yesterday by Charles receiver. The statement showed the total cash from assets and stock assessments. (Continued on Page Four)
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NO REPAYMENT the eight months of ership in effect the closed ChelNational Bank Trust Company has been collected of the assets The bank suspended January of this According the year. for the quarter ended September 30. the collections month. Should conditions improve and the collection maintained. would take 78 months half to liquify the years assets. shows that the receiver report has collected from stock holders assessed $600.No losses have been charged the stock has been charged off assets. liabilities of the bank Of these been paid cash on secured has bank has repaid nothing to The the Corpornor secured any from that Federal agency the The expenses date 060.63 The total assets
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Adjourn Geneva Parley In Effort To Close Breach Davis Announces Will Maintain Hands-off Policy in Political Aspects of Germany's Withdrawal, Although Continuing Disarmament Efforts for World war, and it is our duty to give the world peace in our time." Supported by Poland and Turkey the Soviet representative argued that Russia had not been consulted or informed regarding the decision to adjourn the conference, reached in special meeting, but Mr. Henderson asked with smile if there were any other objections and then declared the adjournment motion carried. Lord Robert Cecil headed the great peace delegation which called on the President earlier in the da/. MacDonald, Hull Send Messages Messages from Prime Minister MacDonald and Secretary Hull were read. The British leader said a nation refusing to contribute to the restoration would bear heavy responsibility in the eyes of the world. Mr. Henderson's remarks to the peace delegates were considered an historical proclamation of the necessity that all nations collaborate for peace and brought tears to the eyes of many listeners. A French spokesman told The Associated Press that the real menace of the existing situation lay in that Germany abandoned the system of peace on which al the hopes of Europe were pinned. France, he added, extends the hand of friendship Germany and seeks gradually to restore the Reich to the position to which she is entitled. The Henderson telegram to Von Neurath was regarded in some circles as another way of saying that there is no last word between friends. There was some speculation as to whether Chancellor Hitler will make like amicable gesture Italian delegates were quoted as saying they hope and think he will. Hitler alone, these representatives said, can save the world from dire uncertainty and perhaps tragedy by expressing willingness to reopen negotiations through the chancelleries. assist depositors, inasmuch as it was this Federal government which not only appealed to depositors to keep their money in banks but also had the responsibility, through the Comptroller of the Treasury, to regulate banks and keep them sound. Since this "moral obligation" is in addition to any "economic obligation," which would merely consider the business loan value of assets, already pledged for loans or otherwise, is believed the committee will work on the theory that the government can well afford to be more generous with banking spot like Atlantic City than ordinary business principles of "loan values" would Total "remaining uncollected assets" of the closed Atlantic City National and Chelsea-Second National Banks are over $20,000,000. according to issued last week by the two receivers as of the close of Sept. 30. last. Whether this item would be the basis for appraisal of any local committee of "bankers and business men" appointed to R. F. C. loans under the new Roosevelt plan to thaw frozen bank deposits is not known. According to Washington dispatches, in any case will be possible only to the amounts of the loanable value of the assets which have not already been pledged. Local depositors were speculating whether this "20 million item of remaining uncollected assets is the receivers' appraisal of the "loanable value": also, if the item includes "assets already pledged" or otherwise. Man in Street Puzzled "This does not mean," says the Washington news, "that in bank whose remaining assets are worthless, the depositors will get 50 per cent. Hence new local question on many lips today is: "What are the local bank assets worth? Whether this information will have to wait upon the appointment of "special advisory and appraisal committees, mentioned in the Washington dispatch, or whether local bank receivers will enlighten the public, was another source of speculation among depositors. It said these committees made up of local and business men, will be named only when an appraisal of closed bank assets has not already been made by "government agen- Depositors are wondering if the receivers of closed national banks are and, if so. will the statement of "uncollected remaining assets," as already formally issued by Receivers Slaughter and Faircloth stand as the basis of any loans R. F. C. may make to Atlantic City depositors out of the billion dollar fund. Depositors point out that if such is the case much time will be saved in getting the relief money to Atlantic City This point, too, has what the public appetite for information from the bank receivers on the score of whether "uncollected remaining assets" means conservative loan value such assets, or whether this item will have to be modified by "assets pledged" or other factors not apparent from the receivers' statements of condition. The government terms money repaid in part to frozen depositors as "dividends." The Washington statement says that "in some cases further distributions will not be possible because assets remaining in the bank will not warrant any further dividend than heretofore made In the case of Atlantic City none has been made.
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Salus Drops Litigation Shore Real Estate Broker Discontinues Residence Determination CAMDEN, May 11.-Louis Rudner, of Trenton, counsel for Joseph W. Salus, Atlantic City and Philadelphia real estate broker. today withdrew motion to determine the legal residence of his client before Judge John Boyd Avis in United States District Court. In withdrawing the motion Salus has 20 days in which to answer suit for $5300 brought against him by Charles A. Faircloth. receiver for the ChelseaSecond National Bank and Trust Company, of Atlantic City. Faircloth is demanding $1500 on stock assessment against Salus, who former director of the bank. The receiver also demanding $3800 for three checks which, he claims, Salus withdrew from the bank days before it closed because he knew of its unsteady condition. After the suit was filed. Salus' counsel sought to delay the proceeding to determine whether he was legal resident of Philadelphia or Atlantic City, where the papers were served on him.
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Judge Accuses Bank Receiver Camden, N. J., Aug 17 (AP)-An assertion that the affairs of the closed Chelsea-Second National Bank & Trust Company of Atlantic City had been "mismanaged most horribly' was made today by Judge John Boyd Avis in United States District Court. He made the accusation in taking under advisement an application by the banks receiver to dismiss a "suit for discovery" brought by a group of depositors. Charleh A. Faircloth, the receiver. asked that he be relieved of the necessity of answering 113 questions, many in the nature of accusations, asked by the depositors committee 'Why haven't the people a right to know what happened. and what happens to their money?" Judge Avis asked. Why can a receiver say, in effect. "This is your money but we are going to handle it in private'? "The receiver has some obligations to depositors and others. The more hear about these banks the sorrier am for their depositors. If the responsible persons are able to pay they should pay.
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Judge Accuses Bank Receiver Camden, N. J., Aug 17 (A)-An assertion that the affairs of the closed Chelsea National Bank & Trust Company of Atlantic City had been "mismanaged most horribly" was made today by Judge John Boyd Avis in United States District Court. He made the accusation in taking under advisement an application by the banks receiver to dismiss "suit for discovery" brought by group of depositors. Charleh Faircloth, the receiver, asked that he be relieved of the necessity of answering 113 questions, many in the nature of accusations, asked by the depositors' "Why haven't the people a right to know what happened, and what happens to their money?" Judge Avis asked. "Why can a receiver say, in effect. "This is your money but we are going to handle it in private" "The receiver has some obligations to depositors and others. The more hear about these banks the sorrier am for their depositors. If the responsible persons are able to pay they should pay.'
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Court Upholds Depositors' Right To Quiz Receiver of Closed Bank Aug. 18 assertion that affairs the closed ChelseaSecond National Trust company Atlantic City made yesterday Judge John Boyd in the United district here, taking under advisement an application the bank's dismiss for recovery" brought by group of depositors. Charles the receiver, that the necessity 113 questions, nature accusations, asked the "Why have not the people right and what happens their money?" Judge Avis can say, but are going handle in private?' receiver has some obligations depositors and others. The more hear about these banks the sorrier am for their depositors. If the responpersons able pay they should Faircloth's attorney, George Bourdepositors only "fishing expedition," that their not specific, that they had right information unless would tell the of information which prompt the accusations they stockholders depositors the closed January, 1933, deposits, and that the has fused proper legal action against the officers.
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Judge Raps Bank In Atlantic City Says Affairs Mismanaged Horribly and That Depositore Have Some Rights That the affairs of the closed Chelsea-Second National Bank and Trust Company of Atlantic City had been "mismanaged most horrobly" was made yesterday by Judge John Boyd Avis in U. S. District Court at Camden, in taking under advisement an application by the bank's receiver to dismiss a "suit for discovery" brought by a group of depositors. Charles A. Faircloth. the receiver, asked to be relieved of the necessity of answering 113 questions, asked by the depositors' committee. "Why have not the people a right to know what happened and what happens to their money ?" said Judge Avis. "Why can a receiver say, in effect. "This is your money, but we are going to handle it in private?' The more hear about these banks the sorrier I am for the depositors. The stockholders and depositors assert that the bank's officers allowed large withdrawals before it closed in January, 1933, when it had $5,000,000 deposits, and that the receiver has refused to take proper legal action against the officers.
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Judge Avis Wants Responsibility Placed For Failures ASKS PAYMENT TO FULL LIMIT Persons responsible for bank failshould be forced to make restitution to the limit of their resources, Judge John Boyd declared in District court in Camden yesterday. Intimating that he would act favorably the of the closed Chelsea Second National Bank Atlantic City, who are attempting obtain information bank's condition, Judge about insolvent banks the sympathy for the has been mismanaged horribly.' Judge Avis turned to George Bourgeois, attorney for Charles Faircloth, the bank's ceiver, and demanded: "Why haven't the depositors the right know what the financial condition bank at time its insolvency? Why can receiver others say them that although we will handle any these cases, when the the bank's failure can pay they ought to, the fullest extent to which they are able. The situation in there responsibility, there force charges that have made be rumors, the deposiand stockholders are making legations fact. receiver effort everything is legally did not answer the jurbut the in the for an were specific enough. the wanted more he insisted, they should tell how they of the which they original the bill charged that falsely and illegally represented to good condition, that the receiver refused take the proper action bring the bank's ofthat and the bank, that large withdrawals just before the closed. filed against the bank and Faircloth by Samuel Comly, Elizabeth and Ralph Johnson, all of City, representing and Comly had $6000 deposit, while held 420 shares of bank stock. Charles Hymen, Atlantic City, attorney petitioners, pointed out that the bill merely asked about status. Judge held the under but he allow the bill, with on the questions. deposits of and 23,000 when closed 1933. Hymen after the hearing that Faircloth declared he not answer cost the bank $10,000 to divulge the information, would take long while and hold liquidation, that disclosure affecting business people Atlantic the depositors to tain information blocked several times by technical objections offered by the receiver. ON O'CONNELL Albany, and John Oley Percey Geary, fugitive in the kidnaping John O'Connell, been forwarded Detroit, today. in the for the kidnapers of John Labatt.
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Court Criticizes Bank Receivers CAMDEN, N. J., Aug. 18.-Bank receivers were sharply criticised by Federal Judge Avis. Depositors of the closed Chelsea Second National Bank of Atlantic City ap plied to him for an order directing receivers of the institution to tell them what was being done. In taking the motion under advisement, Judge Avis said: "The more hear of insolvent banks the more sympathy have for the depositors. Why can't the receiver say to them that this money is yours, but we handle it privately?