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NATIONAL BANK CLOSES ATLANTIC Jan. Atlantic City National Bank, largest financial institutions, failed open its doors for this This second City close here within the last week.
13900. Atlantic City National Bank (Atlantic City, NJ)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- national
- Bank ID
- 2527
- Charter Number
- 2527
- Start Date
- January 30, 1933
- Location
- Atlantic City, New Jersey (39.364, -74.423)
Metadata
- Model
- gpt-5-mini
- Short Digest
ec128842
Response Measures
None
Receivership Details
- Depositor recovery rate
- 8.4%
- Date receivership started
- 1933-01-30
- Date receivership terminated
- 1940-10-31
- Share of assets assessed as good
- 6.4%
- Share of assets assessed as doubtful
- 51.9%
- Share of assets assessed as worthless
- 41.7%
Description
The bank closed/suspended in January 1933 and was placed in receivership (receiver Lawrence Slaughter). Coverage through 1933–1934 describes liquidation, receivers' collections, and related bankruptcy actions involving the bank's president. No newspaper text describes a depositor run prior to suspension; therefore this is classified as a suspension leading to permanent closure/receivership.
Events (7)
1.
May 19, 1881
Chartered
- Source
- historical_nic
2.
January 30, 1933
Receivership
- Source
- historical_nic
3.
January 30, 1933
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Bank failed to open in late January 1933; subsequent articles describe insolvency, large unpaid notes, loans and alleged fraudulent transactions involving officers (president John Slape).
- Newspaper Excerpt
- NATIONAL BANK CLOSES ATLANTIC Jan. Atlantic City National Bank... failed open its doors for this This second City close here within the last week.
- Source
- newspapers
4.
February 9, 1933
Receivership
- Newspaper Excerpt
- Another report that Solicitor Joseph Perskie had been named attorney for the receivthe Atlantic City National, but report said that this without foundation, and no attorney had been appointed yet. The regulations concerning access deposit boxes after the closbank's banking business are said those of the Treasury Department at Washington. (Article dateline Feb 9 mentions receiver.)
- Source
- newspapers
5.
March 23, 1933
Other
- Newspaper Excerpt
- VERDICT BANK RECEIVER Judgment notes by the City Bank entered in against John Slape, president... included $133,158... Slaughter judgment for $55,000 assessments $100 shares capital of the Atlantic City National Bank.
- Source
- newspapers
6.
October 12, 1933
Other
- Newspaper Excerpt
- Taken in Since Suspension Collections the Atlantic City National Bank since the date January totaled revealed the statement made federal receiver. ... The unsecured at time amounted $7,076,749.08... total to be for the date pension $14,243,878.87 ... cash collected from assets...
- Source
- newspapers
7.
November 25, 1933
Other
- Newspaper Excerpt
- Examination of the assets and liabilities John Slape, president of the closed Atlantic City National Bank, in involuntary bankruptcy proceedings, was made meeting creditors...
- Source
- newspapers
Newspaper Articles (15)
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Duell Brings Suit for Acto Safe Deposit cess Box receiver in charge One government Atlantic City banks closed the courts. access The deposit boxes, times the action before yesterday Judge Duell, attorney the Charles Chelsea National Bank which will brought action, tested Duell other papers deposit the National Bank which Second claims that Faircloth, receiver and Charles of the representative refuses permit him the open reporter saw mimeYesterday affidavit which ographed the closed banks are boxholders sign and asking alleged, they their keys in the permitted boxes, rented by year. formal address the After and blank space for insertceiver number and the leasee's the box certifies that name, affiant "not indebted to the Atlantic City National Northside Trust Company Union Naliquidation) Bank either tional maker, endorser guarantor, rectly indirectly any form obligation held any other the said banks. boxholder asked and sayeth that he shares of the capital holder any (Continued on Page Five)
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Receiver (Continued from Page One) stock. either my own name in the name of any other person, actdirectly my (the same owned any of stock the same banks) for 60 days (in January 1933 He further subscribes that he holder the stock the Northside Trust the Union National and that rent for my box has been paid No kind the public have been volunteered either receiver since the banks closed, there was street port yesterday that Walter Hanstein been appointed attorney for the receiver the National. Another report that Solicitor Joseph Perskie had been named attorney for the receivthe Atlantic City National, but report said that this without foundation, and no attorney had been appointed yet. The regulations concerning access deposit boxes after the closbank's banking business are said those of the Treasury Department at Washington.
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VERDICT BANK RECEIVER Judgment notes by the City Bank entered in against John Slape, president the The judgments sought Laurence Slaughter receiver the included to totaling and totaling $133,158 on which the North Side Trust Company the Union National which merged the Atlantic City National notes included $10,000 paid directly Slape by endorsed other notes for and $13,000, on which judgment entered. Slaughter judgment for $55,000 assessments $100 shares capital of the Atlantic City National Bank.
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Receiverships May Last Four Years, According to Slaughter Receiverships of two closed lantic City banks may years, according Laurence Slaughter Receiver for the Atlantic City National Bank He the process of liquidation moving slowly and be by the Comptroller Currency average required from four Slaughter said that there was nothing gained suing peotaking and getting what they could from forced He said be assumed that much the frozen assets would considerably more later The he getting people He declared that the bank foreclosing where there any disposition the part the owner but that some were taking the earnings from and giving the bank nothing. Can't Accept Mortgage Swap Slaughter that national bank not authorized the present Home (Continued Page Four)
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Taken in Since Suspension Collections the Atlantic City National Bank since the date January totaled revealed the statement made federal receiver. The Slaughter, statement period ending September the largest secured from assets Cash collected the receiver and held trustee owners amounted There cash collected from interest, premium rents have $1,351,for and The expenses the ceivership amounted Cash hands the receiver totaled for secured the date of suspension The unsecured that time amounted $7,076,749.08. Additional the the total to be for the date pension $14,243,878.87 item total cash lected from assets, amounting received from assets amounted to from additional assets cash on stock assessments Losses charged off on assets amounted to $316,878.62
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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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Creditors Banker, Also Delve Into Holland Firm Examination of the assets and liabilities John Slape, president of the closed Atlantic City National Bank, in involuntary bankruptcy proceedings, was made meeting creditors before Robert Steedle, referee in bankruptcy, yesterday. The hearing brought denials from Slape that he had assets other than contained schedule of liabilities filed last that time liabilities were while value placed consiststocks companies and an unencumbered estate of point the proceedings after reports recently people think I'm supposed sit starve death not supposed to have anything.' Clarence Knauer has named After the creditors delved affairs the Company another involuntary bankruptcy owned by Slape and Holland. Slape testified he received monthly solicitor for the and vanced himself funds from the what might be termed dividends dividends declared On occasion he advanced time were about said thought there enough hand pay the creditors. conditions had caused the price grease out Holland received $500 monies Both Slape and Holland they felt the firm partnership could draw funds Risley, was file and liabilities for The creditors another ing on December
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Slape Outburst Also Delinquent in Payments to Delve Into Holland Firm Wife, He Apologizes Examination of the assets and liabilities of John Slape, president of the closed Atlantic City National Bank, in involuntary bankruptcy was made meeting creditors before Robert Steedle, referee in bankruptcy, yesterday. The hearing brought denials from Slape that had any assets other than schedule of liabilities month. that while no placed the which consiststocks companies and estate point the after he recently car, Slape people think sit death not supposed to have anything. Clarence Knauer has been named After the Slape hearing creditors delved into the affairs the another which by Slape and testified he received solicitor for and various vanced funds from company what might be termed dividends dividends declared. On occasion advanced $40,000 when pany's $150.000 he thought enough grease to pay the creditors. economic had caused the price grease brought out Holland had time time Both and Holland they felt the was could draw funds file liabilities for company The creditors hold another meeting on December Lewis Moyer, delinquent band, became abusive in Domestic Relations Court escaped of from one three years State prison for tempt court, when he apologized Judge Moyer $628 arrears for the support of his child, who killed last March fall down elevator shaft. According court Moyer made his last to payment September, Being collecting the which due the death. Moyer had husband brought before the court two time stated that of the might the of the arrearage default payment time the from by the probation order chance to pay thing But called the Court the Judge the Court ought own medicine. Judge Corio sentenced contempt of desire offer apology for his was given the portunity Judge Corio the apology reminded the court order made had that only could tencing delinquents of and Court satisfied accept the apology and vacate theless would pay account of his arrearhis
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Our Barking Politicians (Continued from page seven) ported as $10,000,000 delinquent in taxes. Official city deposits amounting to $1,122,000 are gone; a million dollars borrowed from the Federal Reserve for city tax notes is gone; over $900,000 borrowed from the Reconstruction Finance Corpor2 ation is gone; Atlantic City Sinking Fund money amounting to $710,000 is gone," New Jersey State loan to the resort of $500,000 is gone; citizens' private bank de-9 posits amounting to $25,492,986.90 are gone; bank deposits from December, 1932, to June, 1933, of $27,514,930.63 are gone. At the rate of ten million dollars a year, $63,000,000 of Atlantic City business has disappeared in less than five years. Bonds of Atlantic City and County now in default approximate $36,143,635, an amount impossible of payment. And equally impossible of payment is the $7,364,960 necessary for debt requirements in 1933. Since 1920 the average annual payment on Atlantic City bonds has been $878,000 but during the same period the city issued annually $2,184,769 worth of bonds. In 1929, $6,000,000 in bonds was issued. Remember the historical progress of the Sabine army; One step forward, two steps backward, March! Railroad revenue from traffic to Atlantic City has decreased a million dollars a year, from $8,430,000 in 1927 to $2,922,000 in 1932. Unless the citizens get relief from these staggering burdens they cannot hope to return to a period of normal, reasonable and stable prosperity. Closing and liquidating the banks would have proved emberrassing to say the least for certain businesses, politicians and certain individuals who obtained huge loans and made huge withdrawals from restricted banks. As neither the bondholders, nor city employees, nor city creditors, nor citizens had received any money, and as the money was at one time there, it is very evident that cash must have been divided among "smart money" -the sanctified few. Strain Credit On city credit $500,000 was borrowed from the New Jersey Sinking Fund and divided between three banks. This money belonged to the taxpayer, will have to be paid back by the taxpayer, and should have been held inviolate for the use of the city. Of this $500,000 the Atlantic City National Bank was given $250,000 two days before it closed; $125,000 was given to the Guarantee Trust Company before It was restricted; and $125,000 remained in Mayor Harry Bacharach's own bank, the Equitable Trust Company, before it was restricted. What legal or moral right has the Mayor of a city to use public money for the attempted salvation of any private bank? Why were banks propped with citizens', taxpayers', and city money, and what became of the money? Why was not the whole of the borrowed $500,000 held liquid and in safety? Why was $500,000 borrowed from State Sinking Fund when more than a million dollars of city money was reported as available on deposit? Why was nearly two million dollars worth of tax notes hypothecated with the Federal Reserve and the Reconstruction Finance Corporation at approximately the same time? Was city money actually available or had it also been used in private speculation of debilitated banks? Atlantic City is broke and hopelessly in debt because public money and private money; city deposits and citizens' deposits; city employees' salaries and debt requirement money; all were used for the maintenance of rickety banks, tottering reputations, and foundering directorates. Banks Looted Atlantic City banks were looted by the political-business machine, and they were looted from the inside not from the outside. All semblance of honesty and justice was long ago abandoned by the political-business-banketeering group which has raped and ruined Atlantic City. Slick financiers dressed like undertakers and with the regulation artificial smile, ushered depositors to the wicket for the burial of their hard earned wages. The same financial morticians are officiating at the funeral of Atlantic City. Banks have said continually, "Be thrifty. Save against a rainy day!" The people are asking for whom they were saving. To the contrary of banks the Bible has said, "Lay not up for thyself treasure on earth where moths corrupt and thieves break through." In the light of financial exploitation of the people, which turned out to be right, the banks or the Bible? It is repeatedly stated that people have not the intelligence or training to grasp full significance of financial or political matters and that no Information on these subjects should be given them. Well, the people can grasp the full significance of their lost and departed deposits. Politicians believe devotedly that the people have intelligence enough to vote for them, but not intelligence enough to understand the full significance of lost life savings, of bread and butter, of home and children. Banks in Atlantic City are not worried about the depositors for the latter are a very, very docile people. Preferred stock in banks was given them for their money on deposit and as Holy Writ has it, "The last stage will be worse than the first." In many states, especially Southern, the preferred stock for deposits racket would not work for the reason that preferred stock was made a double liability similar to national bank stock. But in New Jersey preferred stock seems not to be a double liability and SO the people will be enabled to use it for fuel or wall paper in the lean times to come. In a small community like Atlantic City the political leaders, business leaders, financial leaders and chamber of commerce are all of the same group. It is always the same bunch who are honorary pallbearers in any prominent funeral and they understand obsequies, civic or otherwise. Add to this the fact that there are no two political parties and but one single political monopoly and it can be understood why not a word escapes as to what has gone on in banks, and as to what has become of depositors', bondholders', city creditors', city employees', and school teachers' funds. Mouths must be kept shut, and depositors know nothing going on in financial directions except that they have have lost their money. Why was it that the Guarantee Trust Company with a million dollars surplus was forced to jeopardize its depositors money by taking in two insolvent banks? Why Weaken Banks Why did the Guarantee Trust have to dangerously weaken itself by mothering two dilapidated financial institutions? Was the reputation and purse of a few unworthy directors in wobbly banks of more importance than the thousands of dollars in depositors' lifetime savings? What political-business-banketeering compulsion forced a futile salvaging? What kind of protected hi-jacking was this? In absorbing the defunct Seaside Trust Company-bank of the so-called Democratic leader Lafferty, "friend of the people" (except his depositors)-the Guarantee Trust Company was forced to take over an institution more than $200,000 in the red. And in absorbing the Atlantic Safe Deposit and Trust Company, the Guarantee Trust Company acquired an institution which was $900,000 in the red. What a fine use to make of depositors' money in acquiring foundered banks! What caused these diabolical combinations? Nothing but political-businessbanketeering. So also with the Equitable Trust Company, which acted big-hearted with its depositors' money by salvaging the Pacific Avenue National Bank and the Chelsea Safe Deposit and Trust Company. It is said that it takes the kind of bankers they have in Atlantic City to run a bank. Well, it does-the kind of a bank they run. The kind of a bank which was good enough for "smart money," but which was tough on business and the people. The most important and the most controversial question brought about by bank failures, is the future necessity for guaranteeing deposits. The Glass-Steagall bill which encompasses this end becomes partially effective January 1, 1934. All deposits in solvent banks under government supervision will then be guaranteed up to $2500. After July 1, 1934, deposits will be guaranteed one hundred per cent up to $10,000; seventy-five per cent from $10,000 to $50,000; and fifty per cent in excess of $50,000. Under this Glass-Steagall Banking Act of 1933, assets of banks applying for insurance of deposits must be adequate to meet all liabilities to depositors and other creditors. Member banks of the Federal Reserve are automatically included in the pool from which the safety of depositors' funds will be guaranteed. The Guarantee Trust Company and the Equitable Trust Company are members of the Federal Reserve, but the Bankers Trust Company is not. But the government does not intend to insure any bank deposits where the bank itself is not solvent in its set-up. A bank will have to be potentially able to insure its own deposits before the government will insure them. If a member bank of the Federal Reserve cannot meet all of its liabilities to depositors and creditors, it will be closed. State banks can do pretty much as they please, but if they desire deposit insurance they must meet the solvency requirements of the government. Inasmuch as the Guarantee Trust and the Equitable Trust were restricted, it will be interesting to observe whether they are solvent enough to obtain deposit insurance. The Bankers Trust was formerly a member. Will it insure depositors' accounts? Will any or all of these banks be closed by the government on January 1, 1934? The United States intends to make a fact of the theory that depositors have a right to their money. The Boardwalk National Bank carries a forty per cent ratio of capital and surplus against deposits and this is twice the margin of safety necessary and required. Thus it is always more than solvent. It has the honorable distinction of being one of the 313 government depositories in the United States, and is a member of the Federal Reserve. It has always insured the safety of its depositors and kept utterly aloof from the political machine and the political-business-banketeers. Atlantic City has gone utterly a-smash and is scraping financial bottom. There is nothing left to loot. But this does not worry the political monopoly which gets its revenue from graft in rackets of all kinds, including beer, liquor, dope, banks, receiverships, scrip, contracts, protecting criminals and vice conditions generally. The tangible assets of the resort have been mortgaged for years to come and the debt left upon the backs of taxpayers for liquidation. The situation challenges belief. Waste and extravagance in municipal government-even now going onhas brought about financial catastrophe. The dead stop of bankruptcy was inevitable in a city spending each year more than its income. Blind Politicians The municipal administration-old fogies of a by-gone era in political servicewere blind to the economic foundering of the city. Year after year the political coterie indulged in an orgy of spending. Payrolls were glutted and padded with useless employees, salaries were raised beyond the limits of common sense, and departments were created overnight to pro- vide for patronage seekers. The golden stream was thought to be endless and a day of reckoning was never considered. No one asked if taxpayers could continue to pay the bills. Now that the end has arrived, accompanied with closed and restricted banks, an empty citizenry's purse is asking questions. If Atlantic City can be saved at alland this is not certain-nothing less will do than a drastic scaling down of municipal debt; a cancellation of all past interests thereon; a fifty per cent cut in all taxes past and present; a government acting within the limits of income; and an entirely new municipal regime. Ordinary processes of law are not equal to the chaotic situation in Atlantic City. A corrupt monopolistic political machine has long since occupied the people's citadel of defense, the judiciary. Even now, confiscation of property is sought by empowering political officials to act as receivers for property which is tax delinquent. The security of homes has been invaded and domestic tranquillity guaranteed by the Constitution, is but a myth. The "scarlet army of crime" as so designated by United States Senator Copeland, has long occupied the resort. Political organizations and leaders are in league with this "scarlet army" and protect the criminals operating within it. Citizens know the streets in Atlantic City which are not safe at night for men or women. It is an oft-repeated truism that the resort is the safest place in which to commit a murder. And these conditions are due as much to an indifferency of the citizens as to an indifferency and a corruption of the political machine and inefficiency of its municipal representatives.
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Frozen Woman Asks Rights to National Account battle frozen bank account the attention Vice Chancellor Sooy Chancery Court yesterday. action was brought by Mrs. Margaret Sloan, New ministratrix the estate Susan Sloan, daughter, against Dorothy 312 New Hampshire Laurence Slaughreceiver Atlantic City National made since will be directed issue receiver's for the funds whoever adjudged titled developed during hearing that Susan Sloan opened count the lantic Bank Emely, Susan Sloan, and that tained the bank Susan Sloan died here on Sept. and the residing the home Mrs Emely Her her mother, Margaret and three but residents After death Susan Mrs. Emely bank book, the has refused Tn Mrs. Margaret Sloan seeks have the account made and Slaughter from to Margaret Sloan, Virginia sister testified deposits made that resided Mrs. Emely filled She said her sister sided with mother in Sherman fied her dead her the account to her wedding She had made the deposit trustee solely permit Mrs. with medical illness her from bank Miss Susan told the mak. deposit doing funds secured from Mrs Both Emily of 108 Adriatic Felix testified Susan Sloan had provided Emely and the didn't Maene deceased had that Emely had her opened account She decedent had spoken fight Margaret when she came to live with Mrs Emely The Vice Chancellor Thomas counsel for Emely Alfred Glenn for Mrs Sloan, five days file the case.
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Slaughter In School Release of Funds for Student Awards Sought Lawrence Slaughter receiver closed Atlantic City tional Bank, called United States Court trust fund the Northside Trust Company purpose buying prizes School pupils. The first started the State Chancery Court, but upon motion for the bank ceiver Vice Chancellor Sooy federal Frank Poucher, president of the Atlantic City Company, donor the fund and Board the plainants. for long time interested work schools. About addition placing owned the disposal boys games, placed the Trust $500 trust fund Both princiand for the prizes for athletic contests and other school When the Northside Trust Company Atlantic National Bank fund the funds of the NorthBank. the closing Atlantic City National Bank this fund frozen Demand the fund refused Slaughter. position prize fund became the other funds of the and therefore cannot be paid other depositors when dividends are clared under receivership
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Slaughter In School Release of Funds for dent Awards Sought Lawrence receiver closed Atlantic City National Bank. called United States trust fund set the Trust purpose buying prizes pupils. The first started the but motion counsel for the ceiver Chancellor Sooy the federal courts. Frank president of the Atlantic Company, donor fund, Board the complainants. for time interested in the work vocational schools. About addition placing he owned disposal boys games, Poucher placed with the Northside Trust Company trust fund. Both princiincome be used for the purchase prizes awardathletic contests and other school When the Northside Trust Company turned the Atlantic National Bank for fund went the other funds of the NorthBank. closing the Atlantic City National Bank fund frozen. Demand refused Slaughter. the fund merged the other funds of the bank. cannot paid depositors clared under the receivership
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Denies Bank Statement Never Said Depositors Wouldn't Get Anything, Says Slaughter Continued from Page One) Samuel Comly, Chairman of the Depositors Committee declined to make public the new request for federal relief until it had been in Washington Recalling the Lindbergh criticism, he said We'll have to follow the rules, guess, and wait until reached some desk down there before we can make it public. Regarding Slaughter's denial, Comly said there was no use haggling over details. The statement issued by Mr Slaughter is as follows: was quoted as having virtually admitted Mr Samuel Comly that the depositors of the Atlantic City National Bank would get nothing. This is not a correct "I told Mr. Comly that it would be impossible for me to say what amount would ultimately receive, the amount being entirely dependent our ability to liquidate the notes receivable and other, of the bank "In the issue the newspaper referred to am further quoted as having said to Mr. Comly, in reply to his if would make an application for loan through the Reconstruction Finance Corporation that have been over the books of the bank and have that there were not enough assets on hand pay what had already been borrowed from the Finance Corporation. This is not correct. told Mr Comly that had been over the unpledged assets of the bank and doubted if at this time an aditional loan could be obtained from Reconstruction Finance Corporation and explained to Mr Comly very carefully that the only amounts, collected by the Finance Corporation or the Federal Reserve Bank were the sums from the collateral pledged with those two agencies prior to bank's suspension, and that no collections made from unpledged assets had been paid on account the bank's indebtedness to the agencies mentioned told Mr Comly with reference to appraising assets to their future value that did not know how to make such an appraisement, but felt conditions were improving and that what his committee do in the way of making a distribution to depositors was just what wanted to do just as soon as could
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Holland Mentioned In Oil Charges ulent Transactions in Case Review Plea COURT ORDERS BRIEFS CAMDEN Sun Oil Company charged in Federal Court today the Atlantic City National and officers, bankrupt Island tilizer and John Slape, president of bank, and Edwin Holland, officer the company, were fraudulent. The allegation gument before Judge John Boyd the petition review referee in bankruptcy's company's request for rejection of creditor's claim the receiver for the bank against the bankrupt The company, creditor of the bankrupt firm. also petitioned review the referee's order request for examination certain witnesses under section Federal Bankruptcy Orders Briefs Filed Judge took the latter request under and ordered counsel for the company to file briefs within ten days petition for rejection of the bank ceiver's claim. The company Alfred Atlantic contendthat addition president of the bank, also connected with the fertilizer that through his sition the bank borrowed than from sum, the company contended. immediately turned Slape and Holland, constituting fraud. The company's financial the that indebted the extent of The company counsel further alleged since the president puted fraudulent transactions present claim against bankrupt firm. Federal Probe Department of Justice and the National Credit Men's Associainvestigating matter. company adding that Atlantic depositors interested Charles counsel present the hearWilliam Hunter appearing for the bank. the president the bank may gineered loans for his personal profit changethe alleged therefore Justified in claim against the fertilizer organization. The company asserted that officers fertilizer poration employes' Holland Slape that the obtain the money from company soon the bank made loans. "There basis for the loans corporation counsel tended. declaring that "some ments the were The money converted Holland and the oil company counsel claimed. their after had been obtained false statements bank Glenn referred transcript testimony taken bankruptcy hearing before Robert Steedle officers the Island Fertilizer Company which Holland Rose Mary Ochfenfeld testified that account page the ledger entitled MiscellaneHarbor special account reflecting presumably withdrawn by Holand advances used purposes expenses Harbor brewery. These