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2 FORMER BANKS INVOLVED IN SUIT 13 Queens Directors Say Five Brooklyn Officials Owe $55,000 Under Agreement. Trial of a suit for $55,000 brought by 13 directors of the now defunct Queensboro National Bank, of Corona, against five directors of the Globe Exchange Bank of Brooklyn, is being continued today before Justice Adel and a jury in Queens Supreme Court, Long Island City. The suit is the result of an alleged contract under which the Brooklyn bankers agreed to buy stock held in the Queens bank by the Queens bankers. The Queens bankers allege that in 1929 the Brooklyn bankers purchased a controlling interest in the Queens bank, but induced the local men to remain as directors. The Queens bankers claim they agreed to do this on condition the Brooklyn group promised to purchase the required ten shares each director was required to hold to qualify as director on or before Dec. 4, Say Agreement Was Signed They claim an writing to this effect was drawn up and signed by all those interested. They also claim that pay ments totaling 000 were made on the agreement, the total amount of which called for the payment of $70 000, and they seek payment of the plus In defense the Brooklyn group claims the bankers, acting as directors of Queensboro National, requested the United States Controller of Currency, in August, 1931 to take possession of the bank and that this brought about the closing of the institution. As result, the value of the stock in question depreciated heavily. They claim that such action was not and the for the depreciation of the stock lies with the Queens directors. The latter, however, claim the Globe Exchange closed before the Queensboro bank did: direct result of the closing of the Globe was the run on the Queens bank that the necessity of calling in the Controller of Cur- One Witness Examined Only one witness, a director and counsel for the bank. Samuel Perlo, was yesterday, and are the case will continue or four days. Directors of the Queensboro Na. tional, who are plaintiffs in the action, are John M. Cragen, Elmo, Inc., John Hart, John LaDuke, Joseph Linhart, Alphonse Martinez, Walter Morris, Samuel Perlo. Paul Roth, Edward H. Ruhl, Charles Scarfule, Lonzio Scileppi and Frank Yager. The Globe Exchange directors named as defendants are Morris Walzer, Max Blumberg. Michael Weinsier, Jacob Davis and Harry Ginsberg.
