The articles describe the Union Trust Co. of Cleveland being closed/restricted during the 1933 banking holiday and reorganization period, placed in conservatorship/receivership with federal/R.F.C. involvement, and ultimately succeeded by a newly organized First National bank and liquidation of the old Union. There is extensive reporting of reorganization plans, federal loans and later liquidation/indictments. No clear standalone depositor 'run' on Union Trust is described as the initiating event; the closure was a regulatory/government action in the banking crisis and the bank remained closed and in liquidation. Dates are taken from contemporaneous articles (March 1933) where specific days are not always given.
Events (4)
1.March 1, 1933*Suspension
Cause
Government Action
Cause Details
Closed/restricted during the 1933 banking holiday and placed under conservatorship/examination; reorganization plans under federal/R.F.C. supervision.
Newspaper Excerpt
the Union Trust Co. and Guardian Trust Co., the city's second and third largest were working reorganization plans which will allow the institutions to reopen. Sale of common stock in new national bank to succeed both Union and Guardian now underway.
Source
newspapers
2.March 30, 1933Receivership
Newspaper Excerpt
R. F. C. and City to Raise $10,000,000 Capital... Organization of new bank to place the present Guardian Trust com[panies] will be national... the organization meeting of the board directors of the Union Trust Co. was called for 10 ... plan accepted ... new First National Bank ... to succeed to part of the business the company agreement the Cleveland ... the capital ... will be matched by the R.F.C.. The old will be liquidated and the best the depositors ... Careful Liquidation. (Plain Dealer, 1933-03-30).
Source
newspapers
3.July 30, 1933Other
Newspaper Excerpt
Union and Guardian Trust Cos. continued to pay off ... 6,036 persons ... payments and liquidating dividends being made; state audit earlier had pronounced the bank sound in February but liquidation/dividend process continued.
Source
newspapers
4.May 10, 1934Other
Newspaper Excerpt
Federal grand jury indictments in 1934 accusing former officers of 'window dressing' in connection with statements of the condition of the closed Union Trust Co.; ongoing legal actions and liquidation-related probes.
Source
newspapers
Newspaper Articles (24)
1.July 27, 1932The Bismarck TribuneBismarck, Mandan, ND
Click image to open full size in new tab
Article Text
SOCIAL REVOLUTION IN COUNTRY OBJECT OF RUMOR CAMPAIGN Ramifications of Conspiracy Are Revealed by Police at Pontiac, Mich. SEEK REGIONAL DIRECTOR System Followed Was for Agents to Undermine Depositors' Faith in Banks Pontiac, Mich., July 27.-(P)-State police sent out orders Wednesday for the arrest of George Rowland on a charge he acted as Detroit agent of a radical group which planned a social revolution by circulation of rumors attacking a number of large banks in the country. The officers said that a raid on Rowland's hotel room here Tuesday revealed ramifications of the plot. Capt. Ira H. Marmon of the state police, who directed an investigation of Rowland's activities here and led the raid on his room, said letters and telegrams seized established that Rowland had directed circulation of rumors against banks in Illinois, Indiana, Ohio and Michigan and that he had been instrumental in attacks against the First National bank here. Marmon believes Rowland was warned by a confederate and fled. Marmon said the letters showed that Rowland was one of several regional directors of attacks against banks and that a number of subordinates were working under his direction in the middle west. particularly in Chicago and Cleveland. Called Big Depositors Telephone conversations from Rowland's hotel room, which were tapped by detectives, Marmon said, showed the method of operation of the ring. Agents going into a new city, secured the names of prominent business men from the city directory, called them by telephone and warned them that banks in which they had money were unsound. Letters written by Rowland but not yet mailed also were taken. These, Marmon said, asked for reports on the progress of campaigns and suggested means of procedure. Advertisements assuring depositors of the soundness of the First National bank here recently were placed in a Pontiac newspaper after oficials of the institution said they felt that pressure had been brought to bear against depositors. One letter, which had been written to Rowland by "Comrade HG" at Cleveland read: Tells of Campaign "Following your instructions to me, I am writing to give you as clear a picture as possible of our campaign against the banks in this district. "You know it is a slow proposition to get people steamed up for a run. However, your telephone program seems to be working out fine. There is considerable unrest here and we are informed by clerks in both the Union Trust and the Cleveland Trust that the depositors are very nervous. We have tried to keep up the good work. "We note here with great satisfaction that you are making considerable progress in Pontiac and that you are taking a good crack at the one jug (bank) which is there, the First National, and it seems to us if you can that over a good dent will be put made in the bank at Detroit and it won't be long before our combined efforts will make a lot of trouble there as well as here, Chicago and elsewhere. Object to Strip Faith "I did not have much trouble in convincing the agitation propaganda bureau that this was important work and the sooner we strip the petty bourgeois and the white collar stiff we of his faith in banks the sooner will bring about the unrest that will lead to the revolution. "All of the other activities: campaign, unemployed councils, workers' ex-service men's league, etc., are going forward satisfactorily. "We will all hope to see you in the hear future as we know you are in a not spot. Yours for the revolution." A letter written to "Dear Comrade GH" read in part: "I am very encouraged because we have had plenty of runs against the banks, particularly the big five in Chicago, big meaning the First National, Continental Illinois, etc., and the Union Trust and Cleveland Trust in Cleveland and others. My work here n breaking down the outpost of the banking structure in Detroit by breakfruit." ng the First National is bearing
2.July 27, 1932The Buffalo NewsBuffalo, NY
Click image to open full size in new tab
Article Text
RADICAL HUNTED
Directed Runs on Through Attacks, Police Say.
PONTIAC July out orders Wednesday for arrest George Rowland charge that he acted the Detroit agent radical which planned social revolution by the circulation rumors banks the police said Tuesday revealed the ramifications Ira H. Marmon the state telegrams seized land had directed the mors against banks Illinois, Indiana, Ohio Michigan that he had against First National bank from hotel said, method the Agents the ring going cured the names prominent businessmen from the called them warned them that the banks which their money posited was Some the captain so they could not Letters Rowland. but taken. These Marmon asked for reports progress campaigns and suggested procedure. One which had been written Rowland Comrade HG" Cleveland. read: instructions to writing give you the You proposition get people steamed for program seems ing out There here and informed by both Union Trust and the CleveTrust We have tried to keep up good work.
3.July 28, 1932Times Record NewsWichita Falls, TX
Click image to open full size in new tab
Article Text
'RED' PLOT TO BREAK BANKS
Organized Groups in Russia And Believed Back Of
DIRECTOR ESCAPES
Campaign of 'Whispering' Designed to Cause Runs on Bank
PONTIAC. Mich., July 27. plot against large banks of the country described by the state lice officer who unearthed it "bold scheme to wreck the banking structure of major cities" by circulating false rumors, was revealed here today coincident with order for the arrest the man who directed its activities. George Rowland, said to be the director ring cause failure of banks by resulting from rumors they the object of search. Marof police his hotel room here Tuesday and found letters telegrams which showed the methods operations of the described in some quarters composed of radicals seeking naOrganized by Communists prosecuting torney declared plot was Communist groups in United States and backed by Soviets in Russia." Marmon that Rowland the agitation Ohio, Michigan and Illinois." ring directed against the First National bank, officers which recently appealed depositors support the bank after assuring them condition sound. Letters Rowland's room seized Captain the active Cleveland Chicago and ported him. Melvin Traylor president of the bank Chicago, meanwhile said that city reports from every large city the country showed that campaigns rumors have been directed banks. Activities Revealed Washington advices said the spreading such rumors against banks receiving the attention of the United States secret in told of the Rowland's agents Cleveland against the Union Trust company Cleveland Trust the Chicago, referring the First bank other institutions there. Practically the letters "Yours the One written Cleveland, said 'Referring the circulation the false have much trouble ing propaganda this important and the sooner strip the petty bourgeois the collar stiffs his faith banks the sooner bring the that lead to the revolu-
Plan Doomed Another, Rowland to "Comrade Cleveland. vealed that plans the ring bring about the country apparently doomed have considered this program simultaneous run against all these institutions and other key institutions through the and would be almost the final against the get them all telegram from Chicago were signed only "Much here. Considerable jugs in Workers and spreadaccounts panicky. This bring results. Party curing but slow Big panicky Will write all details.
4.July 28, 1932Richmond Times-DispatchRichmond, VA
Click image to open full size in new tab
Article Text
Leader of Ring Sought by Police
Agitators in Michigan, Ohio and Illinois Said to Be Supervised by Man Named in Writ
[By The Associated Press.] PONTIAC, MICH., July plot against banks the described by State police officer who "bold scheme structure major circulating false rumors, was here today coincident with order for the arrest of the ected its activities George Rowland. said be the rector of ring seeking to failure banks by runs resulting from rumors that they were in unsound condition. the object of the search. Captain Ira Marmon of the police raided his hotel and letters and the methods of operation of the ring, described of radicals seeking revolution Smith prosecuting Oakland County declared the plot was by Commungroups the United States and backed Soviets in Russia Directed Activities States. Marmon Rowland the and director of tation for Ohio, and Illinois the ring was the First Bank which cently depositors to support the bank after assuring them was sound Letters Rowland's room seized Captain Marmon revealed the ring were active CleveChicago reported Letters written Rowland the operati in those two cities for the the campaign and asked for president the National Bank Chicago, that city that refrom practically every city country similar campaigns rumors have been directed banks advices the spreadof such rumors banks the attention the United States Service. Secret Service agents already number Moran. chief the said, and every found that the stories untrue the were financial Close operation with State officials cases was promised Letters Rowland's room told the activities of Rowland's agents in Cleveland against the Union Trust Company and Cleveland Trust Company and the "Big Five" Chicago, the Bank and other there Practically the letters contained the "Yours for the revolution. One. written by Comrade HG, referring the circulation the false did not have trouble in convincing the agitation bureau that this important work the sooner strip petty bourgeois the white-collar his faith banks will about the unrest that will lead to the Another written by Rowland "Comrade plans of the to about run many parts the country apparently was considered this program simultaneous against institutions and other key institutions through the country and
Continued on Page Five.
Harmonious Conference Between the Candidate and Bay State Chief Assures Formal Stand
Cermak Claims Entire Midwest
Mass. Executive to Give Statement After Nominee's Speech Saturday
[By The Associated Press NEW YORK July last Smith leaders was over Roosevelt cause today Smith in the Middle reported in and own set for August Ohio. Governor who remained the one "happy warrior's' chieftains on record favor the New York spent two and half hours with Roosevelt the executive manAlbany When the session was over. was evident from the conferees replies queries, that harmonious agreement had been reached. whereby Ely will statement and will the fight for the ticket
Cermas Claims Midwest. Mayor Cermak Chicago on his here that quick Democratic plank and his master of fiying Chicago ringing speech had him support throughout Middle At Democratic headquarters would opening gun campaign Ohio, August before Demofrom parts the State The gathering will be under the auspices Democratic State and will come President Hoover delivered his acceptspeech. has gone Republican in the last the States the Roosevelt said determined When placed Smith came "place meeting with the party was asked will you support Roosevelt?" "I'll tell about that statement to issued Monday then he from the which deal with the Democratic platEly the radio talk would have This was mean assure Democrats talk that the declaration repeal the Eight eenth not ordinated other and that Ely would then come out dorsement the basis of such declaration
Outcome is Surprise The outcome which had been hailed peace in quarthe presibeen his James trip for that presence he had said the Bay after talking Ely had said nothing When he the executive mansion Albany today, he was "Do you expect the people Massachusetts he said, without Mayor who stopped New York for few on his way from his had nothing but predictions make about Democracy's chances in his section the country "Illinois will Democratic vember by vast said Iowa will be column. We are all amazed the Roose-
Continued on Page Five
5.March 14, 1933The Akron Beacon JournalAkron, OH
Click image to open full size in new tab
Article Text
ADDITIONAL TUESDAY
Institutions With Deposits Of Over Billion Active In 15 Cities
(Continued From Page One) most of those which remain closed temporarily to be are organized. That task already has been started by few of the larger banks denied the funds they presented problems individuals and business alike.
Provide For Loans The Cleveland arranged have industrial money frozen funds payroll poses. problem there greater due the fact that licenses withheld from the largest banks, the Union Trust and the Guardian Trust Co., whose deposits 31 as Other prepared they were for customers day they received for more than was drawn. Monday with that of an average heavy Plans of the Union and Guardian the called board of meet today Neither institution, would discuss plans further than say they hoped and place on the list of licensed
6.March 16, 1933The Cleveland PressCleveland, OH
Click image to open full size in new tab
Article Text
HELP GUARDIAN AND UNION REBUILD
Federal Action Taken to Speed Fund Release to Small Banks
TERMS ARE WEIGHED
Set Up by Invited President
By JOHN R. MARKHAM
The Press Financial Editor With reserves of hundreds of small Ohio banks tied up in the Union Trust Co. and Guardian Trust Co., representatives of the Treasury Department and Fimance Corporation are taking an active part in reorganization plans, was learned representative the R. has been called in by the group tive in plans for the reorganization of the Union Trust Co. and an examination its financial condition being made to determine just how much funds could be obtained from the federal government. House, president of the Guardian Trust Co.: in statement today said the bank's special committee on reorganization had been devoting constant attention to development of plans, but new national and state legislation made progress difficult. Definite plans for reorganization will not be announced these are clearly he said. Officials of both banks have been assured that the national administration the fate of many small Ohio banks is tied up with and possible for Currency Meanwhile, was reported at the Cleveland Federal Reserve Bank that there had been no call for the new currency authorised by emergency banking act. from banks which had reopened fully in Ohio. Nine Ohio banks were included in list which the Reserve Bank here authorized to reopen today. "For some time special committee of the board of directors of the Guardian Trust Co. has been devoting attention to the development of plan for reorganization of the bank in whatever manner is best designed to preserve the interests of its depositors and customers, said Mr. House. "This committee has the unanimous support of the board direcLOTS and the executive officers of the fully aware of the desirability of prompt action and is proceeding rapidly as possible with the of its legal counsel, but the present time number of new laws which have been passed, both Washing ton and Columbus, together with banking bills pending in the Legislature, make progress especially difficult, Waits Study of New Laws
"The committee will not announce definite plans for reorganization until these new laws can be clearly understood. 'Pending adoption of definite plan, the committee refraining from public of the details of its progress. Recent experience in other cities that premature reof banks do real harm to community Such statements lead the public to expect certain results which later fail to materialize 'When the plan is formally its full performance will have been in vance its publication. In the meantime. with the full "support of the officers and directors of the bank and with the advice assistance of many of its leading shareholders and depositors. the committee is proceeding in its work and cautiously under the advice of its legal Union Trust directors held meeting yesterday and heard terms under Turn to Page 10 THE WEATHER
7.March 22, 1933The Cleveland PressCleveland, OH
Click image to open full size in new tab
Article Text
MOST ANYTHING pretty trouble.
Cleveland sentenced the the Municipal always Finkelstein hasn't served single day Now comes Keith Wilson an him serve the tences. We effort, judges sentenced said Herbert Hoover know the United said Republicans Ogden, may come Utah and make political speech will worth listening to practice
We that Prof, Busch speaks Halle's subject upon money the Bank goes to Stirling When officials and rectors banks that we'd like know where
We know SOME the SOME banks goes, but the editor The Press doesn't like have us use word.
The Depression Busters' Quartet, left New York month ago banjos tour of the counmake people off know why the quartet Probably on account the depression
Well, Little Man. the Ohio House you yesterday favor the feated that would help the Cleveland light Sweat Little Fellow, You pay your legislators but not many them work for
Hurry with that beer want rent the Union Trust lobby and start
And baseball doesn't turn mebby can the from the Bradley there. would easy enough to the fight writes "Suppose that all should the same that their cradle phones be
We this moment lamped the papers that Union Trust depositors' had been formed. Boy! Call Frank and he knows who helped form
The Cleveland Plain Dealer advertising 'Something Happened While Yes, and know what Bank decided give and cent of your posits.
Be that attorney in Chicago, An officer Standard Bank "under technical though liberty. Standard Bank "busted" months one under "technical while the State Banking partment brought no suits till politician has for Bill Eirick, the (the not Arthur) the think control the assets the Union and should be taken the hands condition of these banks
8.March 29, 1933Chicago TribuneChicago, IL
Click image to open full size in new tab
Article Text
CONSERVATORS TELL DETROIT BANK CONDITION
RevealDepositDrain on Closed Units.
[Chicago Tribune Press Service.] Detroit, Mich., March Thomas the First National bank, Detroit, following permission from Washington, D. toreleased statements showing the condition bank on Dec. 31. 1932, the report made Feb. 11, the year, the day the bank for business, March 13, the day the took statement the Guardian Bank issued by Conservator B. Schram. Figures indicate that deposits of the First National decreased nearly those dates, and decreases in the Guardian National amounted approximately $27,000,-
Deposits Normally Dropped. explained, however, that deposits January February dinarily were the low point of the cash being withdrawn accounts holiday penditures and heavy withdrawals accounts in connection with the introduction of motor car models. Efforts will be made by Conservator George H. Kirchner, to continue the Union Guardian Trust going concern. An audit of the combeing made and in the meanall of the banking will suspended pending the examination. Harry was today appointed of the Detroit Trust company, of the largest and oldest institutions the middle were named today the Equitable Trust company Detroit. They are Myron W. Neal and Ralph Lane. Committee Wins Concession.
The committee of seven. headed Police James K. kins which last week went WashIngton the interest the First with conces sions for depositors. tentative understanding was reached between the committee and federal officials which three direct benefits These reduction in the cost per share in the new National Bank of Detroit of which the governhalf owner from $50 the two old banks permitting increase from to per cent in the funds immediately distri butable: and unhurried and orderly the slow assets of banks, may realized. Whether certain, not yet known. The avail. been fixed per cent of deposits, including per cent payable. accounts the Detroit tinues such an extent that extra tellers assigned to handle the Monday, 750 depositors opened for of nearly for the day. Cleveland Seeks C. Loans. [Chicago Tribune Service.] O., March Reconloan permit the Union Trust bank will sought Washington tomorrow by Cleveland Appraisal of the bank's assets was completed chairman, the Cleveland Federal Reserve left night. understood that the plan approved by the calls for R. funds in capital. Completion of the appraisal and the decision to to Washington followed reports the Union Trust company Guardian Trust company, another large Cleveland bank which did not federal license to reopen. was under consideration.
Deposits Total $138,000,000.
Mr. Kraus that deposits of the amount approximately as compared with in the weeks preceding and the first are approximately 250,000 depositors. Organization of new bank to place the present Guardian Trust comwill national indicated today when President Harold Burton replied depositors' committee suggesting information of state bank. Senator Bulkley tonight expressed belief be pointed for the banks.
9.March 30, 1933The Plain DealerCleveland, OH
Click image to open full size in new tab
Article Text
NEW BANK FIRST NATIONAL
R. F. C. and City to Raise $10,000,000 Capital, Is Announcement.
(Continued From First Page) ready Chairman Joseph R. Kraus and Jones this would be say sible by the end of April," said "The big arrange for subscription of $5,000,000 stock. "Probably what happen will that about 100 large depositors the comstock issue and will then be thrown We open anticipate no difficulty in this direc-
Helped by Loan.
Jones pointed out that the liquidation problem easier by the R. loan, against which will pledged slow assets have to be for or prices. the treasury in appointment the presence in toState Commerce Director Tangeman consulted State Banking SuperintenFulton by and announced ordination the Reconstruction Finance the treasury. and the State Banking at CoSuccess the plan rests entirely the that must subscribed anticipated that perhaps 100 others underwrite the stock issue and that then will thrown for general subscripbank officials expect difficulty in achieving The to raise the money will launched and immethe of the charter the First National Steps earlier taken reserve the name, through Senator Robert Bulkley with Congressman Chester been operating the and other that new bank be for the tremendous give public confidence the city and throughout The organization of the bank, its board of directors and officers, must by the has not been the policy of the repthe interfere in the but the personnel.
Says Attorney Accept.
It predicted tonight that Cleveland reached become the chairman the board the new bank and Kraus would become its The National Bank rent Trust Building organizes will have no fixtures or physical property on its Excited and joyous, Clevelandafter spending the entire day of Jesse telephones to flash the depositors the organization meeting of the board directors of the Union Trust Co. was called for 10 and of committees The Cleveland started back to Cleveland tonight.
Woodin Consulted.
The approval of Secretary William H. of the by Director Finance this with the the treasury from his with returned program the of the R. and then rejoined plete and prepare an after 6 evening when Kraus and Director Jones the plan. Kraus gave oral statement newspaper men. Jones made the following official statement Corp. bank take the liquid assets the Union Trust and succeed to part of the business the company agreement the Cleveland that the capital the shall not nor the Finance Corp. taking one dollar preferred dollar invested by the Cleveland citizens.
Insurmountable Problems
There been no problems in the nego'Secretary Woodin has approved commitment The who conferred Jones were Chairman Trust Vice President Robert S. Crawford of the Union Trust George Humphof the Hanna president attorney chairman of Cuyahoga County Thomas Tolles, deputy chairman the Federal Reserve and Sidney Cleveland for Finance Corp. The plan accepted not original brought proposal submitted began Director Jones this was that they preferred and that the R. should make the old bank loan of $15,000,000. countered the policy which Jones laid down in charternew bank in Detroit and which Clevelanders found would not change, having the match dollar for dollar in taking preferred stock. The Finance would not agree subscription. figand new calculations. The ures sult was the plan eventually approved that the R. F. should match dollar for dollar from minimum capitaliza up capitalization of $20, and that the loan the old bank be $20,000,000 instead of
The speed with which the all one result and realization the meant to Cleveland busifor posits the Union Trust Co., the average in funds for ment taxes general use, eth extent of in probably next the Clevelandthe ers home tonight overjoyed. The Clevelanders, who had and dickered all day, benegotiated deliriously suspicion moisture the of Chairman Kraus the Union Trust Co. after the to with the light of newspaper bright the winin what used to be the Department of Comclasped the hand of Director Jones and said: partner Texan who The settled acute bank had one and was get his this handshake. which celebrated the entrance the Uncle new First National Bank, proposed 'Give good failed when his enthusiasm for Jesse Jones, his for the large part by Congdon about the and his bringing deep thanks and Humphhe said, had stood by him since the night reopen the Union Trust turned Cannon and Humphrey here citizens of Cleveland. interested having 100 per cent. banking facilities for the an interruption for the Clevelanders the entire day ninth floor the of office of Director Jones, concluding the day the office formerly occupied Pomerene former chairman of the board.
Celebrates Birthday
It coincidence. not only that of the was prepared in the office cupied by the former chairman from but the climax of Chairman Kraus' 53d birthday 'It to Kraus the Director Jones gave out the formal announcement. am tickled to he "Mr board tors ent able the idea the Finance board in matching They in another direction, will up to can raise will minimum of and that will matched by the R. by like preferred order may make 35 per addition the 5 per makes the has to lend the old bank $20, "Those together with the proceeds of liquid assets of the old bank taken over by the new bank want to phasize at provide the for that per per paythe credit of the depositors Careful Liquidation.
"The old will be and the best the depositors The next thing raise among depositors and then and the will start We have already made application for name First of for the Cleveland. has wonderful help. Give him all the possibly He has been wonderful help. Mr. Jones been wouldn't supposed could be done in one day This Jones certainly knows his business. He's marvel. There hesitation much for Mr. and Humphrey. They stood by me since the night was down Kraus He looked like man through much The 35 be freed Kraus and the per cent. already on restriction an additional $4,000,000 for Other Banks.
Kraus pointed that addition for and other the be facilitate The Trust by northern proximately 150 of which have been unable Cannon said that $200,000 in relief serve funds Trust and that 35 per cent. of these now Senator and Congressman been operating the Elyria. help restore banking ate the cilities, delighted with the the result. assets delighted has gone There doubt will great deal Bolton thought proposition both and liability am much he stimulating and beneficial effect on Cleveland and all northern While the Cleveland plan is like the Detroit plan in involves lages, of dollars the Recon- 25,000 struction Finance with Cleve- cities citizens. differs in that the At Detroit involved the national banks and the of one new one.
Gunmen Rob Woman Waylaid by three armed who men followed apartment 1906 Ctreet Miss Valeria Van robbed of $11 last She told police the E. 63d Street and Euclid
10.March 30, 1933The Plain DealerCleveland, OH
Click image to open full size in new tab
Article Text
AGREEMENT OPENS
Union Plan Approved, R.F.C. Manager Tells Burton to Prepare for Showdown.
(Continued From First Page) Cleveland that simiton and results be achieved larly rapid may by the its condition condition did not mits. Even permit similar action, said, the possibility with the new First is not fantastic. that his Burton bank would the with the that John K. chief to examiner. These proposals called for separate, nabank. Coulton, chairman said last night that had talked by Joseph Kraus, chairman the Washing and had called rectors' for today consider in the Bank. Coulton said no questions personnel of the new had been discussed could be, the was established. The first thing that must of institutions subscribed by local capital. "After that." Coulton said. 'the stockholders the will, of course, elect the directors of the While has been expected that the the First National will than that of the the final decision its officers will be had the directors elected by its stockholders. In this. the federal authorities will have great and probably since the government supplies half the money
Lorain Still Working.
Carl Schaefer of the reorganization committee the Street Trust large unlicensed bank, said last Our committee diligently ing. and will have completed The Lorain Street works under somewhat different circumstances than the Union and Guardian, since all three are state banks, Union and are Federal and the Lorain Street Heads of the licensed banks of the city and officials were unanimous their approval of the creation the new and cptiits effects on the city and the general Gov. George White, reached at Cohappy over the fact that the bank officials and the government have been work out seems workable the great also the direct effects will have on much of the rest of the state." Mayor Ray Miller said am happy the tion of for the clearly going help inand and aid the increase industrial and the release rolls to the citizens of the community
Congratulates Kraus.
Corliss chairman the the United Nathe largest national the am extremely happy to hear that the Union Trust has been able reorganize and establish the bank. It thing for been and hoping for for want particularly to congratulate has handled himself in remarkable and has done extremely remarkable job under the most trying circumstances. Harris president of the Trust to the and glad hear the the committee down Washington. John H. president of the Society for am happy hear the the will be extremely beneficial to Cleveland and northern Ohio. The Union as of part general plan strict economy pending the yesterday seven its 21 offices and them with other branches the vicinity Today will three those Lorain and W. 93d Street. Cedar Road and Lee Road, Buckeye 118th respectively to 101st Street and Road-E. 89th Street.
Authorize Debentures. conference committee the General yesterday the the Baker bill include appointment for financially embarrassed banks and section authorof capital notes and debenture instead of stock, the provision the bill Saffin, torney for the the need ed conserv immediately prenumber banks which failed to qualify for Saffin said the authority much affairs Akron and The would under the rather than throw the The capital and debenture banks borrow organize could not their which carries disagreement between the Senate and the House the capital for opening banks adjusted by setting this For from 5,000 in for over Akron the officers of the FirstCentral Trust seeks create received Dow that Secretary the William H. would give the Akron immediate personal attention Sterling president the expected the decision the Cramer expects to ing rapidly.
Washington as it is complan for creatpleted present bank and ing the new of loan expansion to assist in the liquidation of the picture was State be. altered in Representative ing William Eirick Cleveland yesterday demanded that the State Banking Department condition" the public the Guardian and the the The demand was in letter to Fulton.
Eirick's Letter letter part: The public official can stand on custom, personal nothing the face fense calamity as city banking passing through. ask and Therefore, department the and as las: of your Surely the deserve know depositor there talk of cannot be new pected of the conrefer to the pubalthough patient, worried reflect restless savings Acand demanded by atmostion is Bank, formerly the has Canton Bank been the liquida will third tion This 40 per distribution cent.
11.March 30, 1933The Plain DealerCleveland, OH
Click image to open full size in new tab
Article Text
DOUBLE LIABILITY, DEPOSITORS SHOUT
(Centinued From First Page) termination as to the distribution of these between paper and real estate He gave resume of the with41 the total bank depostis the last two years, which ended when the recent restrictions put in force by the leading Cleveland whom have been able to Loftus that the Union Trust liquidated much greater advantage other institution the United States obtaining funds meet the withdrawals 55.48 per its deposits two years had real assets pointed out that the alternatives confronting the depositors were between per whatever figure present the federal authorities permit, at this time, gradual liquidation of other assets, number of probably under the direction 'strangers' from Washington who might the bank's assets unwisely. they might not be familiar with the local situation
Show Impatience
He said the committee had been meet of the Union including Kraus and Allard Smith this morning. discuss the present plan. which falls under the first mentioned alternative evidenced impatience this jority for "quick money' rather than larger amount in the long run "What you haven't got any money to buy woman asked. wait seven. or eight another person Loftus' words long insure return on dollar by liquidation. He made attempt to reconcile these statements his earlier declaration that assessment of double liability would the two large banks out in full on pay their deposits
Questions
Loftus whether the city was willing to admit that industry had shrunken per cent and per cent less banking He advocated application to the under the Bulkley bill, under the Union Trust's present plan, on an unsecured give them chance tell us, We need any than your and the faith and your tors their ability to repay us, present form. are In position to lick the bankers and get 100 per someone because we enough facts,' Loftus replied. The has met with ofand Lorain Savings & Trust Co. as well the The meeting adjourned until morrow night, when the depositors will East Technical High School Themas Martin. member the Board of Education can oh. tain the the there was taken the of the sec. ond Herman Ruthenberg, defray the $100 cost of renting the George H. Bender former stadium commissioner and legislator ganized the depositors' committee appointed Moran and Ruthenberg as assistant respectively, in recognition of their sponsorship the collection, and they passed among the crowd, which contributed Lewis Drucker and Dan H. Wasserman, attorneys Allen Martin also participated the meeting. All are members of the
12.March 30, 1933Pittsburgh Sun-TelegraphPittsburgh, PA
Click image to open full size in new tab
Article Text
BANK-MARKET PROBE ASKED
WASHINGTON M 30. INS Asking that the records of Cleveland brokers be subpenaed to "see whether bank depositors' funds had been speculated with,' Rep. Young Dem.) of Ohio, today supported the demand for investigation of the conduct of banks in the larger cities Young joined Rep Sweeney (Dem. Ohio. urged the Senate stock market investigating to inquire particularly into the affairs of the Union and Guardian Trust Companies of Cleveland.
WASHINGTON M AP government today had agreed to lay down dollar for dollar with Cleveland citizens in opening new national bank there to replace the Union Trust. the city's second largest bank committee representing Cleveland banking interests headed by R Kraus chairman of the board of the Union Trust reached satisfactory terms with the Reconstruction Corporation after day conference yesterday
13.April 14, 1933The Cleveland PressCleveland, OH
Click image to open full size in new tab
Article Text
PLANS ALTERED TO SPEED CITY BANK PROJECT
National Regulations on Loans Had Been Seen Block ing Deal
(Continued From Page One) torship will be the that part the assets the are the will the duty liquidators and file inventory the bank, Director Tangeman said.
Wants Loans Revealed
"Status the banks now the same they going banks.' he said. That will their staus which will when part of the sold and the bank. "Until that time arrives the department would the criminal sections the law But when arrive, not only this but wants the made public. certainly my strong relative loans all other ditions the public that light day will shine into recesses the bank's records, concluded. his address, brought the the fact made banks some the directors. no "Whether these loans were properly made must be full consideration of the facts,' the officers or directors things which they should not done, depositors perfect right to pursue them Loans of officers directors not illegal, by board Mr. Cannon said he had thoroughly investigated the Kraus, chairman of the board the Union Co., who to be president of the new bank.
Gives Kraus Clear Bill owes no money to the and was Mr. on Mr. the the liability and doubt he the Union Co. whenever the liability expect to pay
Union Trust Co. capitalized the collected double Discussing in Cannon allowed receive the judgment of directors best qualified to do particular job
Hints at Commissions of banks have come under fire in recent investigations. Gov. George White hinted commissions paid bank officers in directing conservators of the Union Guardian find whether officer the banks any improper profits "Mr. dealing corporations firms. the law firm of Tolles. Hogsett Ginn counsel for Union charges Trust the and sociation has to pointment Dougherty cluded. counsel for tor was Tolles, Hogsett Ginn until cently. "The bank will run ecoMr. Cannon Salaries in the Union Union Trust the Guardian Trust revealed, although Ira Fulton superintendent conservators recently to give him this information National will have but funds will be invested in the stock of bank. funds be kept separate and apart will not mingled the depositors' money, said.
Reveal Trust Deposits
The Union Trust Co. had $5,059.trust deposits trust deposits took Figures for the were estate trust deposits and trust deposits. Discussing possible illegal action officers the old banks, Mr. Cannon said the of the would not prevent any individual from taking whatever tion was necessary. against them in the courts. He expressed the belief the present would money than any course knew of. This will and $60,000,000 the two closed banks, not ideal,' he ted, others to do. must failure you not plain. was submitted and you failed talk pointed out that 200,000 had the banks, that than Community and charitable funds were tied up and that nearly unit in the county affected by their closing.
Depositors' Plan Due the plan being worked out the three closed with the Don Loftus, of the the plan being whipped into final alike stockholders and employees of closed reported of the tures the proposal called for 100 to depositors with than Yesterday Oscar Cox, conthe Union Trust the appointment James Rogan Austin, the jection to the appointment Dougherty counsel for the Co. "Mr. estimable gentlelawyer, his record in similar capacity the of the Realty and Savings Loan where he was one charges for such shared the disburse$368,000 above which cost including all other taxed against the depositors with counsel, total of $1,060,000." conThe committee, in renewing its objection to Mr. evidence that his former law firm Tolles. Hogsett Ginn had been counsel well advisers for the Trust Co. Cases The name Luther Day, attoradded today to those ported to be under for Daniel Morgan. city also conferred Mr. Cox yesterday John Bricker no further made until after his return Columbus from next Wednesday
14.April 27, 1933The Dayton HeraldDayton, OH
Click image to open full size in new tab
Article Text
GOVERNMENT IN AND PUTS STOP TO 'RUN' ON BANK
Depositors at Cleveland Are Quieted After False Rumors Precipitate Flurry.
FEDERAL AUTHORITIES
GO AFTER CRIMINALS
Perpetrators of Unfounded Reports Sought After All Demands Are Met.
CLEVELAND. O., April
-Cleveland's licensed banks were "backed the limit" today by the federal government.
Aroused three-day run the Cleveland Trust company, the city's largest bank, federal authoriannounced that secret service ties in the city in operatives were attempt to trace down perperators of malicious rumors which caused the withdrawals. the Cleveland Simultaneously, Federal Reserve bank issued formal statement, signed by Gov. Fancher of this Federal Reserve out that the district, pointing Cleveland Trust and other licensed banks were allowed to reopen "only after careful determination of their condition proved them to be sound. DRAMATIC CLIMAX.
The run on the Cleveland Trust its 59 branches came to dramatic climax late yesterday when Harris Creech. president, appeared in lobby crowded with depositors, announced that every person would be paid in full, and that the bank would be kept open two extra hours to accommodate anyone wishing withdraw money. The Cleveland Trust company one of the first in this vicinity to obtain license to reopen after the recent banking holiday. Just prior to the closing of all banks, the trust company had placed bales of money in plain view in the lobby, assuring all depositors there was plenty of cash to pay everyone in full.
FEARS ALLAYED.
President Creech's dramatic appearance before the depositors yesterday had the effect of restoring confidence among depositors, and only handfull were in the lobby when the bank finally closed The statement of Gov. Fancher of the Federal Reserve, said: "Anxiety concerning deposits licensed banks in Cleveland is warranted. These banks were censed and reopened after careful determination of their condition. They are sound and they have and will continue to have the full support of the Federal Reserve bank.' The run on the Cleveland Trust and its branches came while officials of the Union Trust and Guardian Trust, the city's second and third largest were working reorganization plans which will allow the institutions to reopen. Sale of common stock in new tional bank to succeed both Union and Guardian now underway.
15.July 30, 1933The Plain DealerCleveland, OH
Click image to open full size in new tab
Article Text
DEPOSITORS SLOW OCLAIM CHECKS
Only 6,036 Go to Banks in Full Day; Half of Dividends Unpaid.
Union and Guardian Trust The continued to pay off Cos. yesterday larger depositors as they gave to 6,036 persons, the out smallest which has appeared since the began. total at the of The payment business including the mailed out ago smaller whose balances than is half the which to be Of this 30,611 larger deposithe Union received tors and larger depositors the Guardian have received 802.
It was learned yesterday that the State Banking Department audit made five weeks before the Union on restricted basis last February pronounced the bank After this audit was approximately in in runs on the The chief significance of this was hope that Union to sufficient to provide assets several liquidating dividends after the loans made to by the Finance Corp. have been paid off and its assets are released. Ira J. Fulton, state superintendent banks, said yesterday that while he did not have the exact figures, the average paid out by liquidated banks of the larger class Ohio had been above 50 per cent. Fulton pointed out, however, that the solvency of the Union early in the year did not mean that it would necessarily pay 100 per cent., even in rising markets. bank goes into liquidaFulton said, assets are immediately depreciated consideraOne example of such depreciais the lessened value of ing houses and other bank property."
Probe Union Tomorrow.
Edward investigator for the Ohio Senate special bank investigating which last completed its hearings on the causes start his work the Union Trust tomorrow Falkenstein said he did not plan take assistants in with him but wanted to learn how the Union was set up. After he has made himself familiar with the general scheme of the he probably have accountants to aid gathering material Arthur attorney, who headed the Cuyahoga County Bar Association investigation into the Guardian, announced that the Cuyahoga Bar committee, aided by ac. and large group law. yers would begin immediately the drafting of new banking code for Ohio, which it expects to present to the Legislature. Miller also said he at to set forth additional facts concerning the Guardian be placed in the Senate committee record, which he will probably some rebuttal material with planations given the witness stand Arthur House former Guardian president. and Harry C. Robinson. former senior vice president of the bank.
16.August 4, 1933The Cleveland PressCleveland, OH
Click image to open full size in new tab
Article Text
UNION AND GUARDIAN now has before the complete and failure of the on the operation Union and Guardian banks. may study this information as bearing on the fact that neither bank was able to surmay study the two vive the depression. banks compared to each other.
Before the inventories were filed. more was the Guardian than about the that the SenUnion. This committee has investigated ate investigating the former but not the latter. possible now to make comparison which not based the weight of publicity.
In making this comparison must be membered that the Union peak was much larger bank than the Guardian The Union peak. $310,000,000 bank The Guardian $150,000,000 bank In both banks the inventory shows. the bottling up of credit enormous loans was one the strong factors to the downfall. this regard the two banks were about proportionate, with the Union perhaps somewhat the worse off. Of the total was owed the two banks the Van and Eaton $20.000,000 was owed to the Union; $8,000,000 to the Guardian.
In the matter of written-off loans likewise the Union has the poorer showing More than $9,000,000 of loans written off The Guardian wrote off $1,674,000 But the erred largely than the Union the creation of subsidiaries. appears from the Guardian that every bank got into trouble the result of bad management. created subsidiary to cover the situation
In these subsidiaries, the money of depositors used create companies which profitable to the directors and officers of the bank
The records indicate also that the Guardian Union loans to its officers and directors and loans to companies in which officers directors were interested The list loans directly to officers directors Union totaled the bank less than half the total $4,500,000. That neither bank should have loaned any money all to official family fact which the crash made patent and fact which was account the practices of many compared the Union the Guardian had disproportionate number unsecured loans the loans themselves were disproportionately large.
The length of time allowed these unsecured the There five-year unsecured loans books. The average mortgage and the average the Guardian larger than the Union
By studying the facts which have been published out the voluminous pages the ventory the Clevelander may decide which the two banks was the
That both were history has shown inventory reveals nature their weakness This revelation important valuable will provide material for reform of the bank will serve lesson to other banks will provide of civil action recover for the depositor the vast still outstanding
BANK RELIEF IS PLANNED.
C. State Manager To Make Survey Of Frozen Loans.
Cleveland, November Henry Brunner, State Manager Home Owners' Loan Association, today took steps toward helphome ownbanks with frozen assets and depositors whose funds have tied up many months. Brunner announced that survey on homes held by closed and restricted banks, including the Union and Guardian banks Cleveland, would immediately view having the trade them for bonds the relief Build. and loan associations also will Those bonds, in turn, would be turned the Finance for fresh cash loans per cent of the value the bonds permit the banks portion the money they $182,000,000 been fixed the figure now held financial the state in the Much of the mortgage collateral held by Ohio banks in Washington already, held as security for loans. Columbus, Brunner said that bonds ought not dumped any time, this would defeat the whole the movement.
18.March 27, 1934The Marion StarMarion, OH
Click image to open full size in new tab
Article Text
CLEVELAND BANKERS UNDER INDICTMENT
(Continued from Page One) prompt expressed belief whole thing must Green said his the pension fund was that that the fund was by board trustees House declined to comment. The Quardian bank. now the had more than deposit when closed doors in with company the Union Trust company,
19.April 17, 1934The Omaha Evening Bee-NewsOmaha, NE
Click image to open full size in new tab
Article Text
Score Bank Practice Of 'Window Dressing'
MacMillan Report Called Attention to System Now Under Fire in Cleveland
By MERRYLE S. RUKEYSER Copyright, 1934, NEW YORK, April of Cleveland's erstwhile first citizens have been indicted on specific technical charge associated with "window dressing in connection with the statement of the closed Union Trust Co. Nothing will be gained in seek ing to try that specific case outside of court, but the larger issue of "window dressing is of universal interest "Window dressing" refers to the while variety of manipulative practices by which banks and other fiduciary institutions made their financial statements of condition appear better than they really were. Many respectable wearers of high hats, who were moral leaders of their communities, sanction such customs. During the depression, state superintendents of insurance have deliberately connived in certain aspects of "window dressing, such as permitting companies carry their investments at the arbitrary higher prices of earlier period, instead of at the market price.
CITE MACMILLAN REPORT
The most famous international expose of window dressing appeared in the MacMillan report in England in the spring of 1931. It bared existing practices, and the exposure was considered factor leading to the drawing down of foreign balances held by London banks. Such wíthdrawals helped to push England off the gold standard September, 1931. Referring to 'window dressing" among the British banks, the candid MacMillan report said "The monthly figures published by the clearing banks are not true daily averages but are averages of one selected day in each week of the month. It that, in order to present better appearance, most of the banks concerned are at pains to manipulate their balances with the bank of England on the selected day of the week so that they stand at higher figure than usual. Moreover, each of the four biggest institutions pursuing these practices selected different day of the week for the purpose, calling in loans from the money market on its own selected day. but returning them the next morning in time for the next big bank to call them for its make-up day. "Thus certain part of the published reserves of the clearing banks in the shape of deposits with the Bank of England is like a stage army. the same liquid resources doing duty four time over in the course of each week. TEMPORARY DEPOSITS "At the end of each halfyear the same practice euphemistically known as 'window-dressing,' is followed on grander scale. On these occasions other banks which only publish figures at these dates also make brave show in their balance sheets with deposits at the Bank of England, which they temporarily quired for the purpose. The net result is that the average Bank of England balances of the clearing banks are less than 3.5 per cent of their deposits not more than per cent) and those of the banks of the country as whole less than 3 per cent. In the case of the end-year window dressing the aggregate deposits with the Bank of England offered by the banks of the country as temporary display on Dec. 31 -the only figures with which most of them supply their shareholders and their customers-appear to be about 75 million pounds sterling (about 375 million dollars) excess of the figure normally held. are not aware that these practices any useful purpose. We think that they are creditable to our banking system: and we recommend that they should be given up at once.
REVEAL TRUTH am thoroughly in sympathy with the position of the MacMillan commission, which takes the progressive viewpoint that the purpose accounting is to reveal, not conceal, the truth. But in view of the international character of the breach of high ethics, wonder whether it worth while to single out three scapegoats in Cleveland Obviously, the larger job is to improve the technique of public supervision to make such widespread deceptions impossible. Oris Van Sweringen, the railroad king has been indicted with the two bankers. This tech. nical incident does not present the whole canvass of the man. have known Mr. Van Sweringen for decade, and have long been impressed with his talents in finance and in management Like others, he made fundamental errors in underestimating the possibility of economic break down in the United States. He builded his pyramided capitalizations for fair weather for the storms of the past four years.
20.May 4, 1934Muskogee Times-DemocratMuskogee, OK
Click image to open full size in new tab
Article Text
NUTT IS HELD TO BLAME FOR CLEVELAND BANK CRASH
May to senate mittee that the policies to the failure the million dol. Union Trust Co. Cleveland dictated Joseph R. Nutt he by the Van SwerNutt, former treasurer of the publican national committee. and Van Sweringen, railroad builder under indictment for what investiga. tors term "window dressing" loan the Nutt once was president institution The report naming them was sub. mitted the senate stock market banking committee today Ferdinand Pecora, counsel. held the bank's failure due was banking period Among the named were investment in loans the Van and "loans and their affiliated bad policy and inadequacy of serves. The Sweringen brothers, chiefly and real estate. Cyrus Eaton Cleveland
21.May 10, 1934St. Joseph GazetteSt. Joseph, MO
Click image to open full size in new tab
Article Text
SIX INDICTED AT CLEVELAND
Joseph R. Nutt Among Those Accused in Collapse of Two Banks.
Joseph R. Nutt. former trea .irer of may the Republican national committee, four other bankers and former county official were med by federal grand jury today in indictments year's investigation of the collapse of two large Cleveland banks. The indictments accuse Nutt and the others of making false financial statements and using the mails to promote schemes of fraud. They are based on alleged "windowdressing' of statements of the condition of the Union Trust Company and the Guardian Trust Company in liquidation. Two indictments nai ing Nutt: former board chairman, and Wilbur M. Baldwin, former president of the Union. involve the sale and resale of $10,000,000 in Liberty Fonds owned by the Van Sweringen Corporation and placed with J. P. Morgan & Co. for safe keeping. J. Arthur House. to mer president, and A. R. Fraser and Harry C. Robinson, former vice-presidents. of the Guardian, were indicted along with Alex Bernstein, former county treasurer on charge: arising from an alleged $2,000,000 "windew dressing' of the Guardian bank with county funds. Robinson. alone of the six, was not charged with making lae fi. nancial statement, u. was named in five counts of using the mails to East defraud. None would ke imme10 diate comment. Pleas of not guilty were entered for Nutt and Baldwin in federal court this afternoon. They were released under $5,000 bond each. Emerich B. Freed United States district attorney, said that the grand jury will reconvene within a month to pursue further its investigation of the affairs of both banks
22.June 14, 1934The Cleveland PressCleveland, OH
Click image to open full size in new tab
Article Text
Personally Takes Firm's Loss in Closed Bank to Save Creditors
Receiver Says It "Merely Was Square Thing"; Cost Him $339.51
"It merely was the square thing to do. put the money in the bank and feel the beheficiaries shouldn't take loss just because the bank went on the rocks Thus James B. Dolphin, attorney in the Union Trust Building, today modestly explained his action in voluntarily assuming possible loss of $339.51 in receivership funds of the Dixon Co. with the closing of the Union Trust Co. As receiver for the firm, formerly engaged in the fish and oyster business, Mr. Dolphin yesterday appeared before Common Pleas Judge Virgil J. Terrell and was granted permission to pay the amount from his own purse In return, he was allowed by the court to take over the company's frozen receivership account for the same amount at the closed bank Whether Mr. Dolphin ever gets the money back depends on the outcome of the bank's liquidation. The Dixon Co. account, originally more than $500 when the firm went into receivership. was reduced to he owed the Wyeth family, he said --owed because he had made pledges of gifts, and was effecting the gifts in installments. Mr Painter had control of large amount of the Wyeth money. he testified When questioned as to how he got control of that money. Mr. Painter replied: "I do not think it is anybody's business how I got the Wyeth money."
$339.51 through payment of two dividends totaling 35 per cent. Asked whether his wife had sanctioned his action, Mr. Dolphin replied: "Ah! That's a different matter. I'm not even going to mention it to her. She's been talking new automobiles lately Mr. Dolphin has been an attorney for 17 years, with the exception of two years' service in France during the war. He is the father of two children.
23.September 6, 1934The Plain DealerCleveland, OH
Click image to open full size in new tab
Article Text
Berea's Banks Again Open for Business
Berea's two banks reopened for business yesterday, but there was no rush to claim the 350,000 which the openings made available to residents of the Cleveland suburb. Instead, the banks picked up the course of normal business interrupted by the bank panic of February, 1933, with the added protection of federal deposit insurance. W. H. Ames, president of the Commercial & Savings Bank, reported that his institution opened with $740,000 of deposit accounts distributed among 3,500 individuals and firms and that the day's total withdrawals only $11,078. against deposits of 120-a net increase of for the day. Of the depositors of $100 and less who received 100 per cent. of their deposits in the form of credits at the revived bank. only 51 withdrew their cash, while 39 other depositors drew all portion of the 60 per cent. made available to them. The Bank of Berea Co., with 4,800 deposit accounts, aggregating $1,032,945 paid out $16,012 to 78 depositors on withdrawals and received in new deposits total of $13,015.
Of the withdrawals 41 were by depositors of $50 and under whose accounts were paid in full. Both bank presidents said things had been resumed "as if nothing had ever happened to interrupt the normal Klossner, assistant chief examiner of the Reconstruction Finance Corp., had returned to Washington yesterday after conferences with liquidators of the Guardian Trust Co. and Union Trust Co. concerning the detailed arrangements for reappraisal of their assets.
DEVISE NEW PLAN TO RESTORE BANKS Cleveland Move May Be Emulated; Would Cut Tax Exemption By LESLIE EICHEL (Central Press Staff Writer) Cleveland, Oct. 10.-There is an interesting experiment under way in Cleveland, an experiment that gives some hope to smaller depositors in banks still closed. An effort is (being made to organize a liquidating corporation to take over the remaining assets of the defunct Union Trust Company of Cleveland. eorganization of the Union Trust receivership from state liquidation to control by depositors would be the largest bank reorganization plan ever attempted in the United States, according to the Cleveland Press. Elimination of three-quarters of the bank's 250,000 depositors through a payment in full of all depositors having up to $100 in the bank will permit the establishment of a liquidating corporation in the hands of large depositors. Such a payoff, advocated also in etroit, for the defunct First National bank. has been deferred there by the alleged refusal of competitors of Henry Ford to agree. Ford has 25 million tied up in the bank. Tax Exempt Property A fight being waged in New Yor to put certain tax exempt property on the assessment lists is being oban
