First National Bank (Pontiac, MI)

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FOSTER DENIES REDS BACKING BANK ATTACK

CHICAGO, July 28.-(P)-Authors of communistic propaganda found in a Pontiac, Mich., hotel were sought today by the secret service and detectives everywhere as the directors of a nationwide campaign against the confidence of bank depositors.

Chicago bankers, government officials and Michigan police unhesttatingly blamed the communist party for systematized attack on the Integrity of financial institutions in many large cities, particularly the runs which threatened every bank in Chicago last month. It was said by C. L. Smith, prosecuting attorney at Pontiac, to have been backed by sovlet Russia. William Z. Foster. communist candidate for president, denied his organization had sponsored whispering campaign against the First National bank of Pontiac. or that man known as George Rowland. in whose room seditious letters found. was member of the party. Illinois' drastic sedition law. providing 20 years' imprisonment and directed against "anyone who advocates reformation of the government by violence or any other unlawful means," was eyed as the handlest weapon should any radicals be caught (Continued on Page Two)

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Authors of Communistic Propaganda Are Being Sought by Secret Service Agents in Nation-Wide Drive of

CHICAGO, July ors of propaganda found in Pontiac, Mich., hotel sought today by the seeret service and detectives everywhere as the directors of cam paign against the confidence of bank depositors. Chicago bankers, government of ficials and Michigan police unhesitatingly blamed the communist party for systematized attack on the integrity of financial institutions in many large cities, partieularly the runs which threatened ery bank in Chicago last month. It was said by C. L. Smith, prosecuting attorney at Pontiac, to have been backed by Soviet Russia. William Z. Foster, communist can didate for president, denied his or ganization had sponsored whisper ing campaign against the First Na tional Bank of Pontine, or that man known as George Rowland, in whise room seditious letters were found, as member of the party. Illinois drastic sedition law, providing 20 years' imprisonment and directed against 'anyone who advocates reformation of the government by violence or any other un (Continued on page 3)

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CHICAGO, July 28.—(AP)—Authors of Communistic propaganda found in a Pontiac, Mich., hotel were sought today by the secret service and detectives everywhere as the directors of a nationwide campaign against the confidence of bank depositors.

Chicago bankers, government officials and Michigan police unhesitatingly blamed the Communist party for a systematized attack on the integrity of financial institutions in many large cities, particularly the runs which threatened every bank in Chicago last month. It was said by C. L. Smith, prosecuting attorney at Pontiac, to have been backed by Soviet Russia.

Norman Z. Foster, Communist candidate for president, denied his organization had sponsored a whispering campaign against the First National Bank of Pontiac, or that a man known as George Rowland, in whose room seditious letters were found, was a member of the party.

"Rowland," was believed today to be really George E. Powers, once candidate for president, of New York City, and with a record for criminal syndicalism in Michigan since last August. He escaped a police trap in his raided hotel room and became the object of a national dragnet.

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thors of Communistic propaganda found in Pontiac, hotel were sought today by the secret service detectives everywhere the directors of nation-wide against the confidence of bank depositors. Chicago bankers, government officials and Michigan police unhesitatingly blaned the Communist for attack on integrity of financial Institutions in many large cites. particnlarly the runs which threatened bank in Chicago month said by Smith, prosecuting attorney, at Pontiac, have been backed by Soviet Russia William Z. Foster. Communist candidate for his organization sponsored whispering campaign against the First National Bank of Pontiac, or that man known as George Rowland. whose seditions was a member of the party.

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HUNT INTENSE ON FOR "REDS"

Authors of Whispering CamAgainst Banks Sought Throughout U. S.

Press

Authors of propaganda found in hotel were sought by the secret service and detoday tectives everywhere the direc tors of nationwide campaign the confidence of bank de against

Chicago bankers government of ficials and Michigan police unhesitatingly blamed Communist party for systematized attack on the integrity of financial tions in many large cities particu larly the runs which threatened every bank in Chicago last month It said by Smith prose cuting attorney Pontiac to have been backed by Soviet Russia Denied by Foster

William Foster Communist candidate for president, denied his organization had sponsored whispering campaign against the First National bank of Pontiac that man known as George Rowland, in whose seditious letters were found was member of the party

Illinois drastic sedition law viding 20 years imprisonment eyed the weapon should any radicals be caught and connected the ture.

Sought Revolution The for cussed about will lead the to store upwards cash hand order meet of depositors The situation longer definitely linked appeared references the that here and progress

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Russian Hand Seen in Plot Against Banks

Michigan Prosecutor Says Soviets Back "Whisper Campaign" in America

CHICAGO, July 28 (AP) Authors of communistic propaganda found in Pontiac, Mich hotel were sought today by the secret service and tectives everywhere as the directors of campaign against the confidence of bank depositors. Chicago bankers, government officials and Michigan police unhesitatingly blamed the communist party systematized attack on the integrity of financial institutions many large cities, particularly the runs which threatened every bank in Chicago last month It was said by L. Smith, prosecuting attorney Pontiac, to have been backed by Soviet Russia. William Foster, communist candidate for president, denied that his organization had sponsored whispering campaign against the First National Bank of Pontiac, that man known George Rowland, in whose room letters were found, member of the party.

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FOR

Secret Service And Detectives Extensive For Authors Of Literature Found In Pontiac, Blame Communists

CHICAGO, JULY of communistic propaganda found Pontiac, hotel were sought today by the secret service and everywhere as the directors nationwide campaign against the confidence of bank depositors. Chicago bankers, government officials and Michigan police unhesitatingly blamed the communistic party for systematized attack on the of financial institutions many large cities, particularly the integrity run which threatened every bank Chicago last month. It by Smith, prosecution attorney at Pontiac, to have been backed by Russia. William Foster, communist candidate for president, denied that his organization had sponsored whispering campaign against the First National Bank Pontiac or that man known as George Rowland, in whose room seditious letters were found, was member of the party.

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BANK PLOTTERS SOUGHT.

Widespread Search Made for Men Traced to Pontiac, Mich.

CHICAGO. July of Communistic propaganda found in Pontiac, Mich., hotel were sought today by the secret service and everywhere as the directors of against the confidence of bank depositors. Chicago bankers, government officials and Michigan police unhesitatingly blamed the Communist party for systematized attack on the integrity of financial institutions in many large cities, particularly the runs which every bank in Chicago last month. It was said by prosecuting attorney at Pontac, to have been backed by soviet William Z. Foster, Communist candidate for president, denied his organization had sponsored pering against the First National Bank of Pontiac, or that man known as George Rowland, in whose room seditious letters were found, was a. member of the party.

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Seeking Break Up Communist Drive Against Banks of Communistic propaganda found in Pontiac. Mich., hotel were sought today by the secret service and detectives everywhere as the directors of campaign against the confidence of bank government ficials and Michigan police unhesitatingly blamed the Communist party for systematized attack on the integrity of financial institutions many large cities, particularly the runs which threatened every bank Chicago last month. It was said L. Smith, prosecuting attorat Pontiac to have been backed William Communist candidate for president, denied his organization had sponsored whispering campaign against the First National of or that man known as George Rowland, whose room seditious letters were member of the party Illinois' sedition law, viding years' imprisonment and directed against "anyone who advocates reformation of the government by violence or any other lawful means. was eyed as the handlest weapon should any raditals be caught and connected with For the letters were signed 'Yours for the Revolution," and come discussed "bringing about the inrest which will lead to the revoluion."

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DRAGNET SPREAD FOR LEADER OF PLOT ON BANKS

Chicago, July 28. (AP) Authors of Communistic propaganda found in Pontiac Mich. hotel were sought today by the secret service and detectives everywhere as the directors of nation wide campaign against the confidence of bank deChicago bankers, government offi cials and Michigan police unhesitatingly blamed the Communist party for systematized attack on the integrity of financial instittuions in many large cities. particularly the runs which threatened every bank in Chicago last month It was said by Smith, prosecuting attorney at Pontiac. to have been backed by Soviet Russia William Z. Foster Communist candidate for president. denied his organization had sponsored whispering campaign against the First National bank of Pontiac or that man known George Rowland in whose room seditious letters were found was member of the party. "Rowland" was today believed to be George E. Powers, once candidate for president of Queens borough in New York city and with record for criminal syndicalism in Michigan since last August He escaped police trap in his raided hotel room and became the object of a national dragnet.

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BANK WRECKING

Man Hunt Being Staged for "Red" Gang the Associated Press) CHICAGO, of communistic propaganda found Pontiac, Mich., hotel were sought today by the secret service and detectives the directors campaign against the confidence bank depositors. Chicago Bankers, government ficials and Michigan police unhesitatingly blamed the communist party attack on the integrity financial institutions in many cities, particularly the runs which threatened every bank Chicago last month. said by Smith. prosecuting attorney at Pontiac, to have been backed by soviet Russia. Norman Foster, communist candidate for president, denied his organization had sponsored whispering campaign against the First Natoinal bank Pontiac, that known George seditious letters member of

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Authors Of Communist Propaganda Sought

Officials Believe Nationwide Campaign Against Banks Checked-Dragnet Spread For Man In Whose Room Letters Found

CHICAGO, July 28. (A. P.)-Authors of Communistic propaganda found in a Pontiac, Mich. hotel were sought today by the secret service and detectives everywhere as the directors of a nation-wide campaign against the confidence of bank depositors.

Chicago bankers, Government officials and Michigan police unhesiratingly blamed the Communist party for systematized attack on the integrity of finanical institutions in many large cities, particularly the runs which threatened every bank in Chicago last month. It was said by L. Smith, prosecuting attorney at Pontiac, to have been backed by Soviet Russia.

William Z. Foster Communist candidate for President. denied his organization had sponsored R whispering campaign against the First Na. tional Bank of Pontiac. or that man known as George Rowland in whose room seditious letters were found. was member of the party. Illinois' drastic sedition law, providing 20 years imprisonment and (Continued On Page 5, Fifth Column)

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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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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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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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Studies Judge Culhane Case

$90,000 Sought from Pontiac Trust Co. the Trust heirs of the William Culhane estate return approxithe Commercial Bank shortly before under Charles Niles, The heirs allege that trust company about weeks after being of funds from banks the Pontiac the trust the bank and known to the trust company In evidence introduced from the State Banking Depart Smith, former president the bank whose suicide closed bank, him that excessive loans of the total loans had been made officers, and others allied with the bank. of the of Wisner successful candidate for the City Commission April whose found in his home Tuesday, has been ordered by Coroner Voorhees. An autopsy failed the cause of death which to have been the heart dead week when found Funeral services to be held at Thursday from the Voorhees funeral home.

Dr Clarence W. McArthur and Dr. Stephen Gordon, dentists, defendants malpractice hearing which started Judge Frank Doty Betty Spencer, Pontiac, the with failing to extract the in pulling one of her teeth with the result that infection developed.

More than 80 county 4-H clubs and 800 boys girls participate Day program at Pontiac High School Saturday.

Bank Examiner L. F. Burk, Wednesday began First National On his findings largely depends the possibility of reopening bank here.

Examinations demanded Ancel Tottingham. 29 years Court Wednesday when they arraigned charges stealing 20 chickens from of Russel Route Holly.

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struction Finance Corp., and presentation to the United States District court at a public hearing for its approval.

"ITEM 2. Dividend distribution.

"Services rendered in this connection included the disposition of proofs of claims for setoff, alleged preferences and assignments, involving a total amount in excess of $100,000,000.

"ITEM 3. Recovery of unlawful preferences.

"Prior to the appointment of a conservator transactions occurred between the First National Bank and a number of Michigan banks that were believed to have resulted in illegal preferences to the other banks, a violation of Section 5242 U.S.R.S. Through the efforts of Judge Marx recoveries were made for the depositors and other creditors of the First National Bank or it was protected against losses as follows: First National Bank of Pontiac, Mich. $ 601,283.29 Peoples Wayne County Bank of Highland Park 504,423.25 Peoples Wayne County Bank of Dearborn 418,561.57 Peoples Wayne County Bank of Wyandotte 45,531.18 Peoples Wayne County Bank of Ecorse 70,165.30 Peoples Wayne County Bank of Hamtramck 252,964.64 Romulus State Bank, Romulus, Mich. 25,000.00 E. Hill & Sons State Bank, Colon, Mich. 45,105.03 Total $1,963,034.26

"ITEM 4. Recovery of approximately $500,000 from Fidelity & Deposit Co. and Lloyds Insurance Agency.

"Prior to the banks' suspension, suit had been filed against these surety companies to recover large losses alleged to have been suffered by the American State Bank, subsequently taken over by the Peoples Wayne County Bank, later merged with the First National Bank.

"After having preliminary motions dismissed, Judge Marx brought the case to issue, prepared the evidence to support 75 complicated cases of embezzlement and after trial effected a settlement which resulted in a payment of $250,000 in cash to the bank receiver, a release of the salvage recovered from the embezzlers aggregating approximately $300,000, and a payment in excess of $45,000 by the receiver of Lloyds Insurance Agency plus an assignment of its claims against the reinsurers.