14126. Citizens National Bank (New Brunswick, NJ)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: national
Bank ID: 12468
Charter Number: 12468
Start Date: February 11, 1933
Location: New Brunswick, New Jersey (40.486, -74.452)

Metadata

Model: gpt-5-mini
Short Digest: 216827b9

Response Measures

Full suspension, Books examined

Other: Receiver appointed; liquidation and attempts to recapitalize/reopen by stock subscription and American Legion; suits to collect assessments.

Receivership Details

Depositor recovery rate: 59.8%
Date receivership started: 1933-02-16
Date receivership terminated: 1941-04-28
Share of assets assessed as good: 15.6%
Share of assets assessed as doubtful: 59.4%
Share of assets assessed as worthless: 25.1%

Description

A rumor-driven run occurred (reports say a young man circulated false rumors), directors asked the Comptroller/examiner to take over and the bank closed Feb 14, 1933. A receiver/examiner was placed in charge and liquidation proceeded; multiple later articles (Mar 1933 onward) show receivership, liquidation activity and unsuccessful reopening efforts, so the bank remained closed and in liquidation.

Events (7)

1. December 5, 1923 Chartered

Source: historical_nic

2. February 11, 1933 Run

Cause: Rumor Or Misinformation
Cause Details: Persistent unfounded rumors circulated locally (a young man admitted circulating reports that the bank was insolvent), producing heavy withdrawals Friday-Saturday before Feb 14.
Measures: Directors requested Comptroller/examiner to take charge and liquidate; notices posted that the bank was placed under the examiner in charge.
Newspaper Excerpt: But for these rumors...Last Friday Saturday run was started on the Citizens National Bank...by rumors spread by man who, on being called before the bankers, admitted he had done it.
Source: newspapers

3. February 14, 1933 Receivership

Newspaper Excerpt: The Citizens National Bank placed under direction Robinson, examiner, representative comptroller... Notices placed on doors this morning ... 'Closed by resolution of the Board of Directors.' Signed ROBINSON, National Bank Examiner in Charge.' (Feb 14 articles).
Source: newspapers

4. February 14, 1933 Suspension

Cause: Rumor Or Misinformation
Cause Details: Directors closed the bank and asked the Comptroller/examiner to take charge after heavy withdrawals driven by rumors; official notices posted on doors that the bank was closed by board resolution and examiner in charge.
Newspaper Excerpt: For the protection of both depositors and stockholders, the Citizens National Bank ... were closed today... Rumors had much to do with the closing...the Board of Directors ... placed under direction Robinson, examiner, representative of the Comptroller of the Currency.
Source: newspapers

5. February 16, 1933 Receivership

Source: historical_nic

6. March 15, 1933 Other

Newspaper Excerpt: REPORT FINANCES AT CITIZENS BANK - Statement on Condition of Closed Bank Posted By Receiver ... The suspended business February 14 when the Board ... showed assets of and liabilities of $1,603,109.79 when the bank suspended business ... The liquidation of the bank has been in process for the past month ... receiver ... recommends payment ... (Mar 15, 1933).
Source: newspapers

7. April 2, 1933 Other

Newspaper Excerpt: Application May Be Made to Open Closed Bank Here ... Stockholders and Depositors at Citizens Bank Consult Directors ... group may consider reopening the bank ... $200,000 would be kept the institution opened ... liquidation was requested ... slow run on the bank for three days prior Lincoln's Birthday drained available cash ... but at present John Showers engaged in the liquidation ... some stockholders and depositors think recapitalization might reopen bank (proposal). (Apr 2, 1933).
Source: newspapers

Newspaper Articles (13)

1. February 14, 1933 The Central New Jersey Home News New Brunswick, NJ

Article from The Central New Jersey Home News, February 14, 1933

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For the protection of both depositors and stockholders, the Citizens National Bank and Middlesex Title Guarantee and Trust Company were closed today. While it is unfortunate, this step, taken after due and long deliberations of the bankers over the week-end, should be for the best interests of the depositors and for the banking situation in general, because off and on persistent rumors concerning the two institutions have developed have hung over the community, indirectly and unwarrantedly affecting the other institutions as well. But for these rumors, and spread without thought of consequence by irresponsible persons, the banking situation today in New Brunswick would have been Last Friday Saturday run was started on the Citizens National Bank, at time when there was no cause for it, by rumors spread by man who, on being called before the bankers, admitted he had done Developing and carrying rumors concerning banks is State's prison offense, and at this time it is well to remember and that. It is offense because of the act's seriously realize prison injurious effects upon the community. Nothing can do more harm, without cause, than this. The people of New Brunswick and vicinity have been calm and throughout the few of adversity. They courageous past years are expected to remain so, retaining their faith in the financial institutions of the city and disregarding whatever untrue rumors may develop. The open banks of the municipality today are in and warrant the people's continued constrong every respect fidence. If not, they would not be doing business today.

2. February 14, 1933 The Central New Jersey Home News New Brunswick, NJ

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Citizens Directors Certain All Depositors Will Be Paid in Full NOTICES PLACED ON DOORS THIS MORNING Rumor Circulated Around City Believed Responsible for Closing Believing be in the best interests their depositors and stockholders, the Boards Di. rectors of the Citizens National Bank the Middlesex Title and Trust Company cided their respective The Citizens National Bank placed under direction Robinson, examiner, representative comptrolthe currency, and the Middlesex Title Guarantee Trust placed tody State Banking and News closing of the two institutions spread wildfire shortly after crowds gathered front banks. Notices the front the banks the story from 100 200 the during the early hours the On door of the Bank, there appeared the following notice: "This direction of charge bank Closed by resoluthe Board of Directors. "Signed ROBINSON, "National Bank Examiner in Charge. Appearing on front door of the bank Albany was this notice: the Board of affairs the Middlesex Title Guarantee Trust Company been placed the custody the Commissioner of Banking and Insurance in Charge.' Run Started by Rumors Rumors had much to do with the closing These which found past year two were again heard about city last Friday and Saturday, there the Citizens Bank. met demands feared that the run would tinue opening the bank morning and the opinion the directors that would interest all the bank remain closed this mornsteps taken once under When bank to following issued the the Board Directors the Citizens Bank "Rumors the bank heavy Friday Saturday meet further mands which because stories, would require us to "Believing in the best interests our depositors stockholders we asked comptroller take over the liquidation bank. certain that all fully learned that young man circulated reports the solvency Citizens Bank the directors had traced He summoned before alleged that he had the but he refused divulge the source The heavy drain on the bank made apparent they would not be able run today made other banking Charles Smith, president of the Middlesex Title Guarantee and Trust statement closed bank because desired protect was better all run might place depositors and stockholders. State department will proliquidate the bank orderly manner our depositors and stockThe Middlesex bank State while Citizens national difference character of charters, the State Banking supervisory powers over the and the Comptroller the Currency over the Vernar deputy banking that the Title antee Trust closed board directors Peer the that closing Citizens National Bank might cause harmful to their own (Continued on Page Fourteen) WHEN IN

3. February 15, 1933 The Indianapolis Star Indianapolis, IN

Article from The Indianapolis Star, February 15, 1933

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NEW JERSEY BANKS SHUT. New Brunswick Institutions Assert Are Protected. NEW BRUNSWICK, N. Feb Brunswick banks, the Middlesex Title Guarantee and Trust Company and the Citizens Nabank, closed today. The affairs of the former have the hands the been placed and and the other has been taken by the the doors of the signs on banks said today the bank said R. Smith of the Charles depositors and stock protect holders This was better for all concerned run might take place detriment both our today to stockholders and depositors the financial stateAccording bank last ment of the board of directors of the Citizens National bank issued statement which that reports about the bank had led heavy withFriday and Saturday The showed had of bank LEGISLATORS ACT. Question Governor on Bank Holiday -Relief Move Launched CARSON CITY, Nev. Feb Michigan banks today inaugurated an "holiday by William proclaimed Comstock mittee Fred Balzar regarding longer closing this Governor Balzar denied he had any personal of the the banks the Wingfield closing lowed immediately the Nevada holiday. The twelye banks still are 31 of insolvency of Learning Balzar he the the and then ried sought banks ignored the Eleven Nevada without holiday Seven continued banks by business imported Today San an plan Wingfield sponsored Chamber there would Reno Thursday The committee plan branch banking system. LOANS MADE IN MICHIGAN. Home Loan Bank Here Provides Funds With Usual Safeguards. been apby the Federal home loan proved bank in Indianapolis building and loan McKibbin executive vice president, announced yesterday These loans were made in anticiof period moratorium the banks Michigan he many stances the call repayment at the end the present emergency Mr. McKibbin by the usual practice the institution Aside made buildfrom the Indianand bank Mr said, to member institutions. loans

4. February 15, 1933 Daily News New York, NY

Article from Daily News, February 15, 1933

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5. February 15, 1933 Daily News New York, NY

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$50,000,000 RUSHED TO MICHIGAN BANKS (Continued from page operate with the Guardian Bank had necessitated the Statewide financial paralysis. Later he retracted his statement, saying: "I have misunderstood the facts in the Union Guardian Trust Company situation." It was understood that Ford officials had objected strenuously to the Governor's first statement. The automobile industry promised its employes that they would either be paid in cash or else credit arrmaged for then in stores Senator Couzens Conflict with Ford Cited. and shops. Mayor Frank Murphy told indigent that welfare relief would be maintained. A large baking company was formulating a credit scheme as Detroit dairymen promised that milk would be delivered to each home regardless of their financial situation. Representative George J. Green (Dem.) of Saginaw said tonight he would introduce in the House tomorrow a bill to restrict postmoratorium withdrawals to fractions of depositors' accounts. with the object of preventing heavy bank runs upon resumption of business next Wednesday. Couzens-Ford Conflict Cited in Bank Holiday. Detroit, Feb. 14 (P).-The Detroit Free Press. in a coyprighted article, says that conflict between Senator James Couzens of Michi gan and Henry Ford, former partners in the Ford Motor Co., is reflected in Michigan banking difficulties. The Free Press tells of Ford's growing interest in the Guardian Detroit Union Group, Inc., particularly the Union Guardian Trust Co., culminating in his depositing $7,100,000 in the bank to assist in meeting cash demands. The paper states that 72 per cent. of the banks assets were in Detroit real estate, rendering its cash position difficult recently. Ford's deposit failed to enable the bank to reach a sound footing, the Free Press continues, and last December a $60,000,000 loan was sought from the Reconstruction Finance Corporation. Couzens Objects The request for the loan was by way of being granted, says the Free Press, when Senator Couzens protested that the collateral offered by the bank was inadequate to secure the Government from loss. The chief liquid asset listed was Ford's $7,100,000. Since Senator Couzens was chairman of the Senate committee charged with responsibility for investigating R. F. C. loans, his objections prevailed, the Free Press says. After an attempt to form a new company to take over the Unon Guardian Trust Co., Senator Couzens is quoted by the Free Press as having suggested to Ford that the motor magnet grant the Government a lien on his deposits in the bank, making them a "frozen deposit." This Ford declined to do. Senator Couzens then suggested that he and Ford jointly sign a note for the difference between the bank's collateral offered and the amount of the loan. Ford declined to adopt this plan, the Free Press says, holding that there was a "basic principle involved." Senator Couzens conferred with President Hoover, the paper's account says, and was requested by him to accede to the R. F. C. loan. Early this week R. F. C. representatives and prominent bankers were called here. Four Banks Ask State To Take Helm Here. Non-liquid condition of assets and fear of runs as a result of rumors caused four banks in the metropolitan area to appeal to State authorities yesterday to take over their affairs in the interests of their depositors and stockholders. The only one of the closed institutions located in Manhattan is the private banking firm of D. J. Faour and Brothers, a 42-year-old company at 85 Washington St., with deposits and other liabilities totaling about $600,000. Three other banks that failed to open their doors yesterday were the Sunrise National Bank of Baldwin, L. I., the Middlesex Title Guarantee and Trust Company, and the Citizens National Bank, both of New Brunswick, N. J.

6. February 15, 1933 Daily News New York, NY

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$50,000,000 RUSHED TO MICHIGAN BANKS (Continued from page 2) operate with the Guardian Bank had necessitated the Statewide financial paralysis. Later he retracted his statement, saying: "I have misunderstood the facts in the Union Guardian Trust Company situation." It was understood that Ford officials had objected strenuously to the Governor's first statement. The automobile industry promised its employes that they would either be paid in cash or else credit arrnaged for them in stores and shops. Mayor Frank Murphy told indigent that welfare relief would be maintained. A large baking company was formulati, a credit scheme as Detroit dairymen promised that milk would be delivered to each home regardless of their financial situation. Representative George J. Green (Dem.) of Saginaw said tonight he would introduce in the House tomorrow a bill to restrict postmoratorium withdrawals to fractions of depositors' ac ounts. with the object of preventing heavy bank runs upon resumption of business next Wednesday. over their affairs in the interests of their depositors and stockholders. The only one of the closed institutions lócated in Manhattan is the private banking firm of D. J. Faour and Brothers, a 42-year-old company at 85 Washington St., with deposits and other liabilities totaling about $600,000. Three other banks that failed to open their doors yesterday were the Sunrise National Bank of Baldwin, L. I., the Middlesex Title Guarantee and Trust Company, and the Citizens National Bank, both of New Brunswick, N. J.

7. February 15, 1933 Daily News New York, NY

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$50,000,000 RUSHED TO MICHIGAN BANKS (Continued from page operate with the Guardian Bank had necessitated the Statewide financial paralysis. Later he retracted his statement. saying: "I have misunderstood the facts in the Union Guardian Trust Company situation It was understood that Ford officials had objected strenuously to the Governor's first statement. The automobile industry promised its employes that they would either be paid in cash or else credit armaged for them in stores Conflict with Ford Cited. and shops. Mayor Frank Murphy toolet ndigent that welfare relief would be maintained. A large baking company was formulating a credit scheme as Detroit dairymen promised that milk would be delivered to each home regardless of their financial situation. Representative George J. Green (Dem.) of Saginaw said tonight he would introduce in the House tomorrow a bill to restrict postmoratorium withdrawals to fractions of depositors' accounts, with the object of preventing heavy bank runs upon resumption of business next Wednesday. Couzens-Ford Conflict Cited in Bank Holiday. Detroit, Feb. 14 (P).-The Detroit Free Press, in a coyprighted article, says that conflict between Senator James Couzens of Michigan and Henry Ford. former partners in the Ford Motor Co., is reflected in Michigan banking diffi- The Free Press tells of Ford's growing interest in the Guardian Detroit Union Group, Inc., particularly the Union Guardian Trust Co., culminating in his depositing $7,100,000 in the bank to assist in meeting cash demands. The paper that 72 per cent. of the banks assets were in Detroit real estate. rendering its cash position difficult recently. Ford's deposit failed to enable the bank to reach a sound feeting. the Free Press continues, and last December a $60,000,000 loan was sought from the Reconstruction Finance Corporation. Couzens Objects The request for the loan was by way of being granted, says the Free Press, when Senator Couzens protested that the collateral offered by the bank was inadequate to secure the Government from loss. The chief liquid asset listed was Ford's $7,100,000. Since Senafor Couzens was chairman of the Senate committee charged with responsibility for investigating R. F. C. loans, his objections prevailed, the Free Press says After an attempt to form a new company to take over the Unin Guardian Trust Co., Senator Couzens is quoted by the Free Press as having suggested to Ford that the motor magnet grant the Government a lien on his deposits in the bank, making them a "frozen deposit." This Ford declined to do. Senator Couzens then suggested that he and Ford jointly sign a note for the difference between the bank's collateral offered and the amount of the loan. Ford declined to adopt this plan, the Free Press says, holding that there was a "basic principle involved.' Senator Couzens conferred with President Hoover, the paper's account says, and was requested by him to accede to the R. F. C. loan. Early this week R. F. C. representatives and prominent bankers were called here. Four Banks Ask State To Take Helm Here. Non-liquid condition of assets and fear of runs as a result of rumors caused four banks in the metropolitan area to appeal to State authorities yesterday to take over their affairs in the interests of their depositors and stockholders. The only one of the closed institutions located in Manhattan is the private banking firm of D. J. Faour and Brothers. a 42-year-old company at 85 Washington St., with deposits and other liabilities totaling about $600,000. Three other banks that failed to open their doors yesterday were the Sunrise National Bank of Baldwin, L I., the Middlesex Title Guarantee and Trust Company, and the Citizens National Bank, both of New Brunswick, N. J.

8. March 15, 1933 The Central New Jersey Home News New Brunswick, NJ

Article from The Central New Jersey Home News, March 15, 1933

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REPORT FINANCES AT CITIZENS BANK Statement on Condition of Closed Bank Posted By Receiver The posting of financial statecondition of Citizens National Bank front of the bank this morning John Showers, closed bank, attracted considerable creditors and others the institution The suspended business February 14 when the Board Directors that the bank was sufficiently liquid to meet that anticipated. showed assets of and liabilities of $1,603,109.79 when the bank pended business to Mr. Included in the assets notes The liquidation of the bank has been in process for the past month and likely be some time before the receiver position recommend the payof the bank suspended busifidence that the creditors, includpaid in statement made public today follows: Total Assets Bills receivable 30,015.80 Assets than bills receivable and hand 819,573.09 Liabilities Liabilities unsecured 918,402.33 Deposits by pledge of assets the bank $14,132.82 collateral 13,016.75 Rediscounts secured by pledge assets of the bank aggregating $36,297.77 36,297.77 Bills payable secured by pledge assets aggregating $1,095,099.31 lateral 635,392.94 Total

9. April 2, 1933 The Central New Jersey Home News New Brunswick, NJ

Article from The Central New Jersey Home News, April 2, 1933

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Application May Be Made to Open Closed Bank Here Stockholders and Depositors at Citizens Bank Consult Directors STOCK SUBSCRIPTION MAY REOPEN BANK Board of Directors May Consider Proposal at Meeting This Week The Citizens National Bank closed when Board the controller Washington liquidate the af fairs, be for was reported in banking circles The of have been by group of consider the of reopening the bank was learned yesterday the direcwill meet week bond holders Citizens National Bank and at time the When the bank February 14, stated that $200,000 would kept the institution opened. The liquidation was requested when was feared by the forced bank to close after Lin coln's holiday There slow "run" on the bank for three days prior Lincoln's Birthday drained tually available cash the bank failed its effort to replenish the the decision reached not to resume business February The federal authorities took over the affairs of the bank and at present time John Showers engaged the liquidation. reprethe federal has been made Mr. Showers but is believed will or wind the bulk of the bank's business. Some stockholders and depositors believe with national banking has shown banks would be possible to recapitalize the Citizens Bank by having present depositors accept preferred stock in lieu their deposits Some also said to the proposal the bank through stock. the belief of the that depositors would benefit the resumption business by the bank than by liquidation proceedings are harmful to the bank they would in no way interfer with the reopening plans. Should decided apply the Federal the bank. tain stipulations have to be The directors of the bank who stepped out of the active ment with filing of the liquidation petition refuse comreport. learned that directors have the and prepared assume the lead provided new capital

10. September 21, 1933 The Central New Jersey Home News New Brunswick, NJ

Article from The Central New Jersey Home News, September 21, 1933

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Local Attorney Selected to Succeed Showers in Bank Liquidation BE NAMED COUNSEL Changes May Have Serious Effect on Legion to Reopen Bank John K. Showers, receiver of the Citizens National Bank since closed last February, two weeks before the bank holiday, replaced today John Lynch, local coununder orders issued out of the comptroller's office Washington. The ouster of Showers and pointment Lynch came edly yesterday when both received retire the close business Lynch take place. The appointment counsel will be made by Lynch Lyons named counsel by shortly after took over the liquidation the bank. today that Samuel Hoffman, local attorney. will be named by Lynch to succeed Lyons. The change the management of the liquidation of the may serious effect plans reopening of the bank under sponsored by Joyce Kilmer Post, No. American Legion. was learned that the Legionnaires been receiving the support of Showers the past two months in their plans reopen the bank and they resentful today over ouster. They arranged to launch this week for canvass of the the sale common the bank. hoped that the Legionnaires continue their interest reorganization of the bank Receiver Lynch will the bank o'clock this afterassume formal charge. Mr. Lynch had been groomed for counsel the receiver and expected that change would made the legal service before the end of the month. The switch the appointments and the ouster was unexpected although been known for the past three months efforts been made have him supplanted by local man. Mr. Lynch native this city. He educated School and graduated with the class 1925. studied Fordham University and graduated in 1929. Serving his clerkship the of the Supreme Court Justice Peter Daly, Mr. Lynch admitted the bar upon graduation from law school attorney year passed the counsellor's Mr. Lynch has taken the the late Justice Daly Elm Row. He counsel for the Workingmen's Building and Association. succeeding Justice Daly that position.

11. October 12, 1933 The Central New Jersey Home News New Brunswick, NJ

Article from The Central New Jersey Home News, October 12, 1933

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EUGENE VIERECK TAKES OVER WORK AT CITIZENS BANK New Receiver, Former New Brunswicker, Succeeds John A. Lynçh HENDLER ARRANGES FOR LOAN BY RFC Eugene Viereck of Eatontown formerly this city, arrived here this to take over the ceivership the Citizens National Bank, relieving John Lynch who submitted his resignation O'Connor, comptroller currency Washington, on September Mr. Lynch did not seek the pointment came surprise. After making himself acquainted with the of the bank, he decided to resign and his resignation comptroller on Sep tember 26. not accepted until yesterday when announce ment made Washington that Viereck had been appointed. Mr. Viereck the of the Eugene Viereck ducted Albany street for many and Frederick Gebhardt 259 Delevan street, steward the Elks Club. wire dispatch from Washing late yesterday pointment of Mr. Viereck. not until this morning, however Viereck was notified his appointment he hurried from his Eatontown home relieve Mr. Lynch his duties. Viereck has had banking experience and considered business executive. He ployed several years the General Cigar Company and for few years managed the Commercial Cigar Company Albany street. He resided 154 Welton street for many years and upon Goetze Gas Packing Company took up his Milltown. H moved Eatontown when How ard former the First Bank of Mill town, acepted executive with the Merchants National Bank Asbury Park later merged Asbury Park and Ocean Grove Bank Mr. Booream took Mr. Viereck and Robert Smith, with the People's National Bank the the shore bank where held executive positions. The bank closed mody two years when there general crashing of banks along the Aided Bank Reopening The State Department Banking tok over the management the bank and Mr. Viereck was ap Loder pointed by the department to sist in the reopening the institution. took year more fo ribs the bank open doors again when and contribution made Viereck in rehabilitation of institution. Sutphin Third District, instrumental having Mr Viereck named receiver. stated morning at his Matawan home that the former New Brunswicker work in close co-operation he the comptroller's department reopening the Citizens Viereck experienced curred. banker and will everything possible have the Citizens Bank reopen for business," said Mr. Sut- Continued on Page Six

12. December 10, 1933 The Central New Jersey Home News New Brunswick, NJ

Article from The Central New Jersey Home News, December 10, 1933

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Response Encourages Legion in Drive to Open Citizens Bank Old Depositors Have Pledged 25 Per Cent of of Stock Needed to Start New Bank Which Would Serve as Liquidation Agency Receiving encouragement from practically every source, the gionnaires of Joyce Kilmer Post No. 25 will start the second week their campaign reopen the Citizens National Bank with per cent of the stock the new bank sold Only small percentage of the been approachby the they readily signed for 15 per their deposits for stock. being received with open by the depositors,' said the Legionnaires the meetFriday night. Another Legionnaire declared depositors only ready and anxious subscribe for mon stock but they offered their services the committee assist "putting across" the campaign the earliest possible Want Speedy Liquidation The Legionnaires are appreciative the fact that hard ahead and next ten days, will put they the of Legion the depositors back their posits through speedy liquidathe bank. The bank will serve for the liquidation the agency bank that the bank purchase the good assets Continued Page Four

13. April 4, 1934 The Central New Jersey Home News New Brunswick, NJ

Article from The Central New Jersey Home News, April 4, 1934

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STOCK ASSESSMENT ACTION INSTITUTED BY CITIZENS BANK Receiver Plans Suits to Collect 100% Levy From Stockholders MANY HAVE PAID OBLIGATION By The Associated Press TRENTON, April $500 from Wolcott Hopkins 182 George street, New Brunswick, stock alleged the Citizens National Bank Brunswick, filed in FedCourt today by Eugene Vier receiver for the bank. 100 per cent capital levy upon the 2,500 shares stock made last May the suit relates. charges owning five shares The bank was insolvent Viereck appoint ed the October, third receiver. Many Suits To Follow The suit started against Hopkins, president the New Bruns Association, first to be brought the United States against stockholders of the bank have refused to date to pay 100 per $100 share. The papers the action were filed by James counsel for large batch suits being prepared and follow the against kins, was stated today the bank. Mr. Viereck declared this morn that far failed the per capital be sued. He will be and stockholder will either the assessment or suffer suit Federal Court. The institution the Mr. Viereck declared, part the plan liquidation which being prosecuted the bank recover funds which pay depositors. Several hundred stockholders stock the closed bank. addition losing the money pended the purchase must under the law pay $100 for every share of stock that There virtually no defense action and many stockholders find themselves very barrassing predicament when they faced law suits. Many Assessments Paid Mr. declared that many stockholders paid their assessments full, others paid while some arranged make payments. Those arranging to pay assessments not sued, Mr. Viereck stated today.