City National Bank & Trust Company (Niles, MI)

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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.

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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?

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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?

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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

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Michigan Recovering from State Wide Bank Holiday Order

Nearly 600 banks in the lower peninsula of the state Michigan ordered closed by proclamation of Governor Comstock Tuesday morning because of the embarrassment of the Union Guardian Trust Company of Detroit which with large of branch banks was one of the largest banking institutions in the state. Unable to convert their the bank was able to meet the steady demands made on its reserve. Conferences were called with state officials and with some of the leading industrialists of Detroit. including the heads of the General Motors. Chrysler and Ford Corporations. The two former companies were depositors. while the Ford company had deposits in excess of and claims to have supported the bank with investments exceeding request was made that the Ford company subordinate their interests to those smaller depositors and of the Reconstruction Finance Corporation. which had already made heavy loans to the bank This the Ford company refused to do in view of the heavy investment support which they had already given the bank Fearing general bank panic after conference with leading financiers and government and state officials the proclamation for an holiday was decided upon until could be made whereby all banks of the state would be prepared to withstand demands usually follow such financial upheaval. Much inconvenience was occasioncitizens over the entire state, and particularly in the large cities such Detroit when banking privileges were denied them. Arrangements were made Wednesday morning. however. whereby depositors were permitted to withdraw five per cent of their deposits as emergency relief. and is predicted that will be perfected whereby many of the banks of the state again be in full operation before the expiration of the eightday holiday. Much cash was poured into Michigan from outside sources on Wednesday and Thursday and it appeared Thursday that would available for circulation in than in the during the boom times Many banks were expecting to resume operations by Friday in limited and reported that in view of the expected recovery from the situation that state banking department would leave at discreation of the banks the matter of reopening before the expiration of the holiday set.

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WEEK'S

SURPRISE SHOCKS WELL RESISTED BY PRICES IN GENERAL and

CHARLES F. SPEARE BY Consolidated Leased Journal. Feb. The episodes in our unexpected business life and with all of their implications, could not have failed to produce certain liquidation securities fact that they did not The create an even greater degree of of this that stocks meaning have The liquidated group of values. other the most reother developments the subtract from what be encouraging appeared had The present average being the lowest since Octhe confitober, dence that has taken place since that time rather than conditions. measuring a The world was unprepared statewide banking moratorium in Michithat greeted it Tuesday morning some months been assured was sound the and that that while might be weaknesses in that will have supported, the crisis in last banking was there was distinct shock in the spectacle an entire one state, the country largest having its banking entirely withdrawn order to prewhose assets the extent of over per cent were invested in real the heart of this situation is of investing large banking portions the those paper that are not marketable and, while profitable fair weather. are liability disturbed public sentiment. realized now in many that the value of their banks little and henceforth is with the of The Michigan incident recalls the credited the Fidirectors that no major trouble would be permitted banking This might be supported the while no institution Detroit deposits over 500 banks and aggregating have been for prescribed period. That there on the part Corporaassist instiand that toward deinflation apparent each Report Scanned This the report of committee to the opinions and where the ing in mat in the past ters some promoted the investitransportation keen for if they the would of in the frank has closely follow Salt Lake City and Louis railroad conagain the position of the the bondhave abused their and up deearly must be accepted There for continuto railroads that handicapped ratio embarrasses such propreasonable financial the for the railroad sitsituations must an the market totheir the Reconstruction Finance Corporation to additional railroad practically defaulted price

Firmer Some banking dismarket, with weakness has developed year suggestion fiinapparent exchanges Japan's credit rest quest for greater considerable loans by the the the foreign trade outlook in South republics the inColomCongress Still Lagging during been helpful legisthe fears the would been an institute what are termed and part in the shrinkage now the general not the time to They the betterment of the situinvolved listenrecital of the Insull vandal may have York Stock ago utterly immediate good and distraught people and farm sidetracked Pressuspend congress abruptly Comstock stopped the

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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.

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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

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ASSETS LIQUIDATION OF OLD CITY BANK IS STARTED BY BOTKIN

P. S. Farquhar Relieved of Conservatorship of Former Depository

A definite step toward liquidating the remaining assets of the old City National Bank & Trust company which were left after the reorganization and establishment of the First National Bank of Niles was taken Monday when H. R. Botkin was appointed receiver for the old bank by federal banking authorities.

Mr. Botkin formerly was receiver for the defunct First National bank, Buchanan, and lately has been receiver for national banks at Algonae and Marine City. He arrived in Niles Monday afternoon and relieved P. S. Farquhar, conservator of the old bank since March 23.

STRONG PAYMENT SEEN

Mr. Botkin's plan will be to try to liquidate the old bank's assets as quickly as can be done consistently with a view to getting the depositors 100 per cent. While only the actual liquidation will reveal what percentage of the frozen deposits can be turned into cash for distribution, it is believed the frozen assets will pay out strongly.

More than half of the assets were taken over by the new bank, in addition to the first 10 per cent payment allowed after the old bank was placed under management of a conservator. It will require several days for the receiver to check up the old bank's remaining assets, but an off-hand estimate places the total somewhere around $400,000.

Had it not been for the moratorium declared last February 11 by Governor W. A. Comstock for all banks in Michigan, it is believed in local banking circles that the old City National bank would have weathered the economic storm. It is considered true that it was not actually insolvent at the time, but the psychological effect of the moratorium made it certain that it would have been subjected to a heavy run if it did reopen. The old bank had more than enough cash on hand for ordinary business, and the depositors profited by the manner in which the affairs of the old bank were handled.

NEW BANK HELPFUL

The community also profited much by getting a sound new bank and restoration of complete banking facilities.

Mr. Farquhar pleased to be relieved from the conservatorship, as he desires to give his full time to his duties as vice president, cashier and manager of the new bank. The new bank is now in its fifth week. President E. E. Barber, Manager-Cashier Farquhar and the directors all are highly pleased

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Bank Receivers Are Changed at Buchanan receivers for the First change Buchanan, into National H receiver efect National Bank Trust the City ppointment Attorney Fremont leading Berrien Evans, Democrat. The latter will tinue receiver for the defunct Niles bank. Mr. Payne still is receiver for the American National bank. Benton Harthe Commercial National bank Trust company St. Joseph. The change in accord with the poltey of comptroller of the currency for consolidating the work in communities. The receivership office for the City National Bank Trust company located on the second floor of the bank building. the ground floor being occupied by the First National Bank of Niles, formed out of the reorganization the old bank. The office for the bank will be maintained in the bank building as It has since the bank closed two years age.

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ASSESS HOLDERS OF NILES STOCK

The Tribune's Special Service.

NILES, Mich., April 7.—An assessment of nine cents per $100 share against stockholders of banks in the Guardian Detroit Union Group Inc., was announced today effecting holders of the 1,500 shares in the now defunct Niles City National Bank & Trust company which was affiliated with the Guardian Group. Stockholders in the defunct Niles bank may pay their assessments to H. R. Botkin, local bank receiver, who maintains an office on the second floor of the bank building.

Lost something? Find it. Tribune classified. —Adv.

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Bank Receiver Urges Filing of Deposit Claims

Only about 800 of the 2.600 depositors of the defunct City National Bank and Trust company have filed claims in receivership. H. Botkin announced today. Receiver Botkin urges that all per. having the defunct bank file them at once in ordet. that the, work of liquidation claims might result in many' persons not getting their claims filed under the legal requirements. he said. When the call was made some time ago for claims to be filed. Receiver Botkin expected that all would be filed before the end of this month. Many owners of deposits, it seems, cling to the erroneous belief that they do not need to file claims with the receiver. since they filed claims with the conservator before the reor ganization which resulted in formation of the First National Bank of Niles Regardless of claims filed with the conservator and the bank, all depositors must file claims with the ceiver, Mr. Botkin says. He urges all depositors n the old bank to file

Apiarists say honey bees get their first nectar in the spring from elm trees which bloom exceedingly early.

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NILES BANK TO PAY DIVIDENDS

The Tribune's Special Service

NILES, Mich., Nov. 19. — The defunct City National Bank & Trust company, of Niles, will pay a dividend on deposits in the near future, according to an announcement by R. H. Botkin, bank receiver. Mr. Botkin did not state the percentage to be paid nor when it will be paid.

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1,751 DEPOSITORS AT NILES GIVEN 10 PCT.

NILES, Dec. 21. The 751 depositors in the former City National Bank and Trust Company received Christmas aid Thursday when they were paid another 10 per cent making total distribution of $85,840.55, from the receiver, H. R. Botkin. The first dividend was for 55 per cent. The comptroller of currency had urged the receiver to speed up the distribution that all claims might be paid by Christmas.

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Assessment Paid To Bank Receiver

Schram Gets $5,040,000 Compromise Fund

Detroit, June 5.—(AP)—The compromise assessment against stockholders of the Guardian National Bank of Commerce and its five outstate subsidiaries, was paid over to B. C. Schram, receiver of the Guardian National today by representatives of the Guardian Depositors corporation which will take over the assets of the closed concerns and liquidate them for the larger depositors.

The compromise assessment amounted to $5,040,000 and was placed literally on a barrel head in Schram's office. On the barrel head also were placed the contracts for transferring the compromise assessments.

Within a week the $76,914,341.19 in assets will be transferred to the corporation, headed by William R. Catton, as president. The assets to be transferred come from $92,794,455.68 of proved and allowed claims. Claims of $1,000 and less have been paid.

The stock assessment against the Guardian National Bank of Detroit originally was $10,000,000 and this was compromised at $4,000,000. The levies against the out-state subsidiaries was $2,600,000, which was compromised at $1,040,000.

The subsidiaries and their compromise assessments are:

Capitol National Bank of Lansing, $240,000.

Grand Rapids National bank, Grand Rapids, $400,000.

Union and Peoples National Bank of Jackson, $280,000.

National Bank of Ionia, $60,000.

City National Bank & Trust company, Niles, Mich., $60,000.

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BLOSSOM QUEEN'S FATHER FOUND DROWNED IN CREEK

Niles, Mich., Dec. 11—(AP)—Officers found the body of Harry Williams today in Dowagiac creek near the place where he had instructed them in a note to search.

Williams, father of Jean Williams, Niles' 1934 blossom queen, disappeared Tuesday after leaving a note beneath the door of the home where he boarded. Officers found his coat near the spot described, but did not locate the body, weighted with a piece of iron, until today.

Williams came here in 1932 as assistant to the receiver of the City National Bank and Trust company. His wife and daughter live in Chicago.