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and did not sit with of the loan committee member Peoples was Drukker's his charge that the be consistent in alone law, must be charged which his word was bank, in and its its its eleten also that president, all "stool pigeons" of other directors, were of the "Drukker Gang." against Drukker Max Simon's frequent charges One of banker. does seem that he has made money true. Most people who that this charge serious into business hope to make money. Maybe suppose has, Max for hopes all Eagle will make money. the Sunday the bar and expect he hoped Simon member of know. law office, and maybe he make when he opened has, although money other lawyers remember important cases. The question of how much money man New has, Jersey has by the highest court in made, has been decided affair between himself and the entirely private Income Tax Collector. share the opinion of the court. EXPERIENCE THAN PROFITS' 'MORE rather interesting figures showing before me some how much money Dow H. Drukker has put into Passaic banks, what he has out of them. These in ways, and got his adventures, while they may figures indicate that banking and in exciting, have have interesting spots turned than profits. banker, Drukker been good deal philanthropist, even seems have not wholly philanthropic. He has his banking were kind banker that am farmer. been about the same have been working head other dozen years my to support farm, although bought work trying with entirely different idea. the an Within the past few days Harry H. Weinberger has publicly charged that Dow Drukker wrecked the Peoples Bank. moral crime for man to wreck bank, Certainly held or not. And whether he can be legally proving crime and criminals, lawyers look first for two and opportunity. that banker has to wreck his About the only opportunity bank in loans, Drukker had no opportunity make loans at the Peoples Bank. All the loans, whether they were good or bad, were passed upon by the loan committee, Now about Dow Drukker and his family own 1,861 shares of the stock the Bank, according the Sunday Eagle. CollecPeoples tively the Drukker family is one of the four stockholders bank. Harry Meyers the only larger stockholder, with more than 5,000 shares. The estates of R. Benson and General Spencer are the next The records show that since he has been associated with that institution, Drukker has never sold share of his stock the bank. although he has transferred some of his shares members of his family and business associates, for business personal reasons. the Peoples closed on March the Drukker family and Drukker companies had upwards of $125,000 on deposit in the bank. Under the reorganization plan, the Drukkers and the Drukker take preferred stock in the holding company for these deposits, the same others. The Drukker family will turn in its 1,861 shares of stock for common stock of the holding which will have no value until all the preferred company, stockholders (the depositors) are paid off in full with interest at per cent. HEAVY Practically every member of the Drukker sons, daughters, brothers and other relatives, even his young grandson and relatives who live deposits in the closed bank, in savings counts, checking accounts and Christmas Club accounts. The cash funds several Drukker and of companies in which he is including The Herald-News, are tied up in the bank, with the funds of 20,000 other depositors. Nobody but crazy man or would do anything the safety cash and that his own own family and his own companies. doubt either Harry with all their hatred and envy Drukker, will either crazy fool. One of the best reasons know for believing that the Peoples Bank reorganization plan the best plan that could be worked for the benefit the depositors is that the Drukkers are among the largest depositors in the bank and that Drukker proves the plan. One of the best reasons for believing that the reorganisation plan fair to the stockholders is that the Drukker family of the four largest stockholders. Drukker made money and has varied interests, but have known very few successful men who have stuck their home town, invested their money in local enterprises and devoted themselves as exclusively to trying to build up the town, as this man Now let's go little further into this charge that Drukker controlled the Peoples Bank. Ten years ago Passaic had nine banks with total bank clearance for the year of Four years later, at the ginning great inflation of which the depression the echo, number of banks had increased to twelve with clearances $123,000,000. Most of the men prominent in the business life of the City were identified with one or another of these banks. The ples Bank was particular pride of General Spencer, Passaic's first citizen. His personality dominated the institution. Its directors men whom the General and wanted to have about him. In his Dow H. group was Drukker, who by hard work and ability had climbed the ladder up of success from start $15 week, had won the respect confidence of the community and had served the people of district 80 well that they had three times elected him to Congress. The Peoples was the second bank with which Drukker had been identified, the Hobart having been the first. He was proud of his association with it; of his membership on its board. THE HOBART ERA When he and Arthur Hughes bought control of the Hobart Trust Company in 1925, Drukker resigned his the Peoples. Four years later, when the Weinberger skyrocket came down and the Hobart was closed by the State Banking Commissioner, Peoples group which bought reopened the closed bank. The merging of the Hobart and Peoples was as natural as the law of gravity. As president of the Hobart, in the period between its opening in 1929 and its merger with the Peoples in the following years, Drukker served without salary. After the merger directors of the Peoples insisted that he accept salary $15,000 year as of the board. This lasted few months only. When values began to crumble he reduced salary to $5,000, and as the banks began to feel the effect hard times, Drukker drew salary. The year following, 1930, was the year of bank mergers. All over the Country banks were consolidating to save weaker from going to the wall as the result of curtailed credits and falling values of securities and commodities. in these troubled times that the Lincoln National and City Trust were merged with the Peoples. This last merger three banks in Peoples, the Passaic tional and the Passaic Park Bank. business generally, mergers are made for one of two get rid of competitors, or to save competitors from failure. reason which held good only in the joy days of the inflation, was to merge two more concerns excuse for selling stock issues to the public. Where the purpose of mergers mainly to get rid of competitors and competition, the practice to freeze out those who were the smaller concerns absorbed the Where the merger. purpose is to strengthen merged business, the retain in the merged company as many as possible of the persons whose ability and experience promises be of value the business. The latter course dictated the reorganization of the Peoples Bank after the merger with the Lincoln and City Trust. In lecting the officers and directors of the larger banks, the purwas to keep in as many possible of the men built the City Trust and the their fluence to help build the greater Peoples Bank. was have been consolidation of all HOW CAME IN William H. Stevens was president of the Peoples, Harry of the Lincoln and Congressman George Seger of the City Trust. Seger nominal president, since he Washington most of the time, and the active head of the bank James Crowley, its treasurer. obvious that the consolidated bank not have three presidents, and about equally obvious that it would be good idea to make of these three bank heads president and push the other two aside. So before the consolidation carried there agreement among the three organizations that new man should be brought in as president. Nicholas H. Dosker the man agreed upon by all interests. Dosker's record was good one. His home was in Louisville He had State-wide reputation in Kentucky as successful banker. For two years he had been president of the Kentucky State Bankers Association, and for ten years of its executive committee. State bankers association do not pick for their presiding Mr. Dosker had been peewees chairman of the jurisprudence committee of the American Bankers' and for ten years of the serve City Bankers' Association. Before he became banker he had been college professor, teaching history economics. the time of his selection he serving as member of the drought relief commission for Kentucky, by selection of President Hoover. It was known to the directors that there was distant famconnection between Drukker and latter an uncle cousin or something of one of Drukker's and it may be that this was his favor 50 far as Drukker Drukkers are pretty clannish. It certainly did Influence the men in the other banks. So, with Dosker as president, Meyers, Stevens and Seger became vice-presidents of the Peoples, Crowley being made executive vice-president and Stevens treasurer of the bank. Former of the Peoples retained their offices were Herman Arning, Byron D. Benson, Henry Bahnsen, James H. Walden, Arthur S. Hughes and Henry C. Whitehead. City Commissioner John H. McGuire, had director the City Trust, was also made Dow Drukker was elected as chairman of the board of directors, the same position he had held in the Peoples before the merger. The salaries of the president, the executive and the chairman of the board fixed at $15,000 were which were not large salaries in comparison with the salaries paid ficers of other banks. salary made $10,000, the salaries of the other was fixed at $5,000. In February, 1932, two months after the all salaries cut were per cent. Since March 16, 1933, when the bank reopened under restrictions, Drukker had drawn no and the salary other officers and employes have been on half pay. THE NEW The new board of directors was consolidation of the boards of the three former banks. The representation was: Peoples Bank: Henry Bahnsen, John M. Campbell, Louis Cowley, Dow H. Drukker, Sr., Dow H. Drukker, Hugh Thomas Goodlatte. Arthur Hughes, Rueben Kipp, Andrew McLean, Charles Newman, James Prescott, H. Stevens, James H. Walden, Henry C. Whitehead, John Zahn and Adrian Zandee. Lincoln: David R. Crounse, George Fitzsimmons, Harry Loeb, William Richard Morrell, Harry Meyers and Harry Stein. City Trust: Adrian Bakker, James Crowley, Harry Hecht, Dr. Gustave Kosik, John H. McGuire, Lorenzo Orbe, Abram Preiskel, Samuel Rachles, Nochem Riskin, Herbert RumErnest Schacht and George Seger. Directors Goodlatte and Laytham resigned last year and Hilson was let out. There have been no other changes in directors officers. directors make mass meeting. was all right but didn't work out well. These three groups never fully amalgamated. There were some old scores, jealousies, which the merger did not heal; other new jealousies created by the To make room for new officers and directors, some of the older figures in the Peoples were eliminated, and they were sore. Some men the boards the Lincoln City Trust were not included in the new and they were sore. Maybe "sore" not the word they would agree but comes close enough. The new Peoples started off with eleven As the directors the time, these men had to be taken care of, retain for the bank the benefit of their experience and ability and also their personal influence in the City. Other banks elsewhere gone through the same their sorrow. The Chase National Bank of New York, after repeated had 80 many vice-presidents that some wisecracker said they had to use different entrances and work different that depositors wouldn't think there was run on the bank every The Peoples list of vicepresidents wasn't as bad as this, but it had enough to make football team. In April, Drukker tried to resign as chairman of the board of directors of Peoples. In letter read board meeting on April 1932, he said: seems call your attention to the my very efficient manner in which your executive force functioning, am of the opinion that reasons for accepting the chairmanship of your board have been completed, no further need for my services exists. therefore, compelled give my resignation, same to take immediately." only fair assume that am taking this tion without and will any way turb the friendly relations which The board, by unanimous vote, refused to the accept ignation. THE LOANS There has been criticism of the Peoples for borrowing money from RFC. The Sunday Eagle still clamoring know what was done with this and has insinuated that Drukker and "his gang" have stolen for may or unholy purposes. have heretofore explained that this money borrowed to enable bank off depositors, many were being by Max Simon's attacks the bank and its officers, to withdraw their deposits. The first of these loans, for $2,000,000 authorized meeting the board of directors on February 10, 1932. Dow Drukker in Florida at the time this action was taken. With large board directors, there were inevitable among the members. Bank street were