Union & Peoples National Bank (Jackson, MI)

Episode Information

Episode Type
Suspension β†’ Closure
Start Date
February 14, 1933
Location
Jackson, Michigan (42.246, -84.401)
Bank Type
national
Charter Number
1533
Alt. names
Peoples National Bank

Metadata

Receivership Details

Depositor recovery rate
50.0%
Date receivership started
1933-08-24
Share of assets assessed as good
39.2%
Share of assets assessed as doubtful
53.3%
Share of assets assessed as worthless
7.5%

Notes

Bank was affected by Michigan's statewide banking holiday, later reopened on a restricted basis, then closed March 19 and went into conservatorship/receivership.

Events (7)

1. August 21, 1865 Chartered
Source
historical_nic
2. February 14, 1933 Suspension
Cause
Government Action
Cause Details
Statewide eight-day banking holiday proclaimed by Governor Comstock closing all Michigan banks.
Newspaper Excerpt
Every bank and financial institution in Michigan was closed today under a sweeping, eight-day suspension order issued ... by Governor William A. Comstock.
Source
newspapers
3. February 23, 1933 Reopening
Newspaper Excerpt
JACKSON BANKS OPEN: NO RUSH BY DEPOSITORS ... Officials of the Union & Peoples National Jackson Bank stated gratified at the lack of excitement. ... savings and commercial deposits permitted (5%).
Source
newspapers
4. March 19, 1933 Suspension
Cause Details
Article states the bank closed March 19 but does not specify trigger; later conservator appointed and assets sold.
Newspaper Excerpt
This bank was closed March 19 of this year.
Source
newspapers
5. July 14, 1933 Other
Newspaper Excerpt
BOMHOFF IS NEW CONSERVATOR ... Bomhoff succeeded Stuart M. Schram as director of affairs of Union Bank; conservator took over his duties Friday July 14.
Source
newspapers
6. August 24, 1933 Receivership
Newspaper Excerpt
Reuben H. Rossman ... has been appointed receiver of the Union & People's National bank. He succeeded L. Fred Bomhoff, conservator since July 14.
Source
newspapers
7. August 24, 1933 Receivership
Source
historical_nic

Newspaper Articles (23)

Article from The Indianapolis Times, February 14, 1933

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BY LESLIE D. HARROP United Press Staff Correspondent

DETROIT, Feb. 14.β€”Every bank and financial institu- tion in Michigan was closed today under a sweeping, eight- day suspension order issued in the early hours of the morning by Governor William A. Comstock.

The closing order brought to a standstill the financial affairs of Detroit, the nation's automobile capital, and halted similar activity in scores of farming and industrial communities of the state, which has a population of more than five million.

Immediate necessity for the unprecedented moratorium was created, Governor Comstock declared, by a crisis in the


Article from The Indianapolis Times, February 14, 1933

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Article Text

Possibility that the eight-day banking holiday "might be modified in a day or so, after the banks get straightened out," was mentioned by Governor Comstock this morning, as he prepared to return to the capital. Banking officials estimated the holiday paralyzed approximately $1,410,978,629 in banks and $144,407,139 in trust companies. These amounts virtually are "frozen" during the suspension period.

Citizenes Are Bewildered

Approxmately 420 state banks and 120 national banks were closed by the Governor's proclamation. Banks will retain skeleton staffs on duty, during the holiday period, to advise as to the credit of those wishing to check on funds on deposits. Reichert, ill with influenza at Ann Arbor, left early today by motor for the state capital against the advice of his physician. Stunned by the suddenness of the Governor's proclamation, citizens everywhere went about customary duties bewildered as to the outcome. Stores generally opened as usual and most announced that they had available funds for today or longer. What will be the outcome toward the end of the week, when pay rolls fall due, was not known.

Money Rushed by Truck

Banking department officials were positive in asserting that, despite the legal closing of the banks, arrangements must and would be made to allow small withdrawals for necessary current funds to operate fundamental businesses. The actual plan that will be adopted was to be announced later in the day. Western Union telegraph rushed orders to offices in nearby states to ship currency into Michigan by armored truck. A. A. Burr, Detroit superintendent, said they had available cash for today and would secure funds to cash any and all money orders of the company that might be presented.


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MICHIGAN BANKS ORDERED CLOSED

Proclamation Provides for Eight Day Holiday

Nearly 600 banks the lower peninsula state Michigan ordered Governor Comstock Tuesday morning of the ment the Union Guardian Trust Company of which with large of branch banks tions the state Unable their the bank meet steady demands made on Conferences called with state officials leading of including the heads of the General Motors. Chrysler Ford The former companies while the Ford company deposits excess of and claims have supported the bank with exceeding request made Ford company interests to those of smaller depositors and of Finance Corporation which already made loans the bank This port which they had already the bank Fearing bank panic after conference with leading and and state officials holiday decided upon until adjustments could made whereby all banks of the state would prepared withstand demands usually follow such financial upheaval Much citizens over the and particularly the large cities such Detroit denied made Wednesday ing. permitted withdraw per their relief and that perfected many the banks of again full before expiration of the eightday appreciable effect the Indiana cities by the the Michigan banks Banks of this county had with Michigan local bankers state that they amply able to render full their and depositors that he knew the general banking condition good. that the plan adoptwith approval struction Finance Corporation simply calculated to maintain steadiness an unstable financial situation.


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THE MICHIGAN MORATORIUM

The Governor of Michigan has closed all the banks and trust companies in his State for eight days. It is the same thing, on a larger scale, as has happened in many small towns in the Middle West and West during Shutdowns the course of this depression. It has happened all over Michigan for the same reason, Vs. Runs which appears to us to be a good reason. This reason simply is that the gold standard dollar has been growing more and more un-get-atable. It is better to freeze money in the banks and go on a scrip basis temporarily than to permit bank runs, which might produce bank failures. We think Gov. Comstock of Michigan has acted wisely and with true prudence. As we see it, the Michigan moratorium is another argument for cheapening the dollar so that people can get it more easily to buy goods, pay debts and keep business in motion. President Hoover told us Monday night in solemn tones that if we go off the gold standard we shall have economic disaster. What does he think we're having now, while we still cling to the gold standard?


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THE MICHIGAN MORATORIUM

The Governor of Michigan has closed all the banks and trust companies in his State for eight days. It is the same thing, on a larger scale, as has happened in many small towns in the Middle West and West during Shutdowns the course of this depression. It has happened all over Michigan for the same reason, Vs. Runs which appears to us to be a good reason. This reason simply is that the gold standard dollar has been growing more and more un-get-atable. It is better to freeze money in the banks and go on a scrip basis temporarily than to permit bank runs, which might produce bank failures. We think Gov. Comstock of Michigan has acted wisely and with true prudence. As we see it, the Michigan moratorium is another argument for cheapening the dollar so that people can get it more easily to buy goods, pay debts and keep business in motion. President Hoover told us Monday night in solemn tones that if we go off the gold standard we shall have economic disaster. What does he think we're having now?


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THE MICHIGAN MORATORIUM

The Governor of Michigan has closed all the banks and trust companies in his State for eight days. It is the same thing. on a larger scale, as has happened in many small towns in the Middle West and West during Shutdowns the course of this depression. It has happened all over Michigan for the same reason, Vs. Runs which appears to us to be a good reason. This reason simply is that the gold standard dollar has been growing more and more un-get-atable. It is better to freeze money in the banks and go on a scrip basis temporarily than to permit bank runs. which might produce bank failures. We think Gov. Comstock of Michigan has acted wisely and with true prudence. As we see it. the Michigan moratorium is another argument for cheapening the dollar so that people can get it more easily to buy goods, pay debts and keep business in motion. President Hoover told us Monday night in solemn tones that if we go off the gold standard we shall have economic disaster. What does he think we're having now


Article from The Bismarck Tribune, February 16, 1933

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Holiday

It was a vigorous and drastic step which Governor Comstock took to curb a prospective run on Michigan's banks but one which time probably will prove to have been beneficial.

To close every bank in a state means to put an immediate halt to business. Without the services of these important institutions the holiday becomes one in fact as well as in name.

But it is a good deal better to have an eight-day respite throughout the entire state than disaster in many communities with banks permanently closed. Probably all of those banks will be able to pull through if properly supported. Eight days will give the banks ample time to liquify some of their resources but, more important, it will give the public a chance to think it over and cool down. Sometimes a holiday is a wonderful thing.


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Michigan Recovering from State Wide Bank Holiday Order

Nearly 600 banks in the lower peninsula of the state Michigan ordered closed by proclamation of Governor Comstock Tuesday morning because of the embarrassment of the Union Guardian Trust Company of Detroit which with large of branch banks was one of the largest banking institutions in the state. Unable to convert their the bank was able to meet the steady demands made on its reserve. Conferences were called with state officials and with some of the leading industrialists of Detroit. including the heads of the General Motors. Chrysler and Ford Corporations. The two former companies were depositors. while the Ford company had deposits in excess of and claims to have supported the bank with investments exceeding request was made that the Ford company subordinate their interests to those smaller depositors and of the Reconstruction Finance Corporation. which had already made heavy loans to the bank This the Ford company refused to do in view of the heavy investment support which they had already given the bank Fearing general bank panic after conference with leading financiers and government and state officials the proclamation for an holiday was decided upon until could be made whereby all banks of the state would be prepared to withstand demands usually follow such financial upheaval. Much inconvenience was occasioncitizens over the entire state, and particularly in the large cities such Detroit when banking privileges were denied them. Arrangements were made Wednesday morning. however. whereby depositors were permitted to withdraw five per cent of their deposits as emergency relief. and is predicted that will be perfected whereby many of the banks of the state again be in full operation before the expiration of the eightday holiday. Much cash was poured into Michigan from outside sources on Wednesday and Thursday and it appeared Thursday that would available for circulation in than in the during the boom times Many banks were expecting to resume operations by Friday in limited and reported that in view of the expected recovery from the situation that state banking department would leave at discreation of the banks the matter of reopening before the expiration of the holiday set.


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WEEK'S

SURPRISE SHOCKS WELL RESISTED BY PRICES IN GENERAL and

CHARLES F. SPEARE BY Consolidated Leased Journal. Feb. The episodes in our unexpected business life and with all of their implications, could not have failed to produce certain liquidation securities fact that they did not The create an even greater degree of of this that stocks meaning have The liquidated group of values. other the most reother developments the subtract from what be encouraging appeared had The present average being the lowest since Octhe confitober, dence that has taken place since that time rather than conditions. measuring a The world was unprepared statewide banking moratorium in Michithat greeted it Tuesday morning some months been assured was sound the and that that while might be weaknesses in that will have supported, the crisis in last banking was there was distinct shock in the spectacle an entire one state, the country largest having its banking entirely withdrawn order to prewhose assets the extent of over per cent were invested in real the heart of this situation is of investing large banking portions the those paper that are not marketable and, while profitable fair weather. are liability disturbed public sentiment. realized now in many that the value of their banks little and henceforth is with the of The Michigan incident recalls the credited the Fidirectors that no major trouble would be permitted banking This might be supported the while no institution Detroit deposits over 500 banks and aggregating have been for prescribed period. That there on the part Corporaassist instiand that toward deinflation apparent each Report Scanned This the report of committee to the opinions and where the ing in mat in the past ters some promoted the investitransportation keen for if they the would of in the frank has closely follow Salt Lake City and Louis railroad conagain the position of the the bondhave abused their and up deearly must be accepted There for continuto railroads that handicapped ratio embarrasses such propreasonable financial the for the railroad sitsituations must an the market totheir the Reconstruction Finance Corporation to additional railroad practically defaulted price

Firmer Some banking dismarket, with weakness has developed year suggestion fiinapparent exchanges Japan's credit rest quest for greater considerable loans by the the the foreign trade outlook in South republics the inColomCongress Still Lagging during been helpful legisthe fears the would been an institute what are termed and part in the shrinkage now the general not the time to They the betterment of the situinvolved listenrecital of the Insull vandal may have York Stock ago utterly immediate good and distraught people and farm sidetracked Pressuspend congress abruptly Comstock stopped the


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JACKSON BANKS OPEN: NO RUSH BY DEPOSITORS

Little Excitement Noted as Institutions Resume on 5 Per Cent Basis.

OFFICIALS HEARTENED

Comply With Comstock Order in All Particulars; No Change Anticipated.

Jackson's banks opened Thursday morning there rush of depositors seeking their Officials of the Union & Peoples National Jackson Bank stated gratified at the of excitement. Under decisions announced separately the banks, nesday savings and commercial deposits permitted. There no indication Thursday morning be changed the future the Comissued during holiday which opened must those sued cepted during holiday Statement Issued. The statement issued by the Jackson City Trust pany Wednesday afternoon folin that the banks should open in their business manner. ply with the intent the lamation pay only cent (Turn to No. on Page 2.)


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MICHIGAN'S BANKS OPENED TODAY FOR LIMITED BUSINESS gan's banks opened for restricted business today. some of them for the first time since Governor William A. Comstock's emergency closing order ten days ago. Rudolph E. Reichert state banking said that most banks were "doing business in the best possible way," and congratulated the state's bankers on their cooperation during the emergency. He said that most banks were cashing checks that had not already been cleared, on the depository percentage basis laid down in the governor's second proclamation issued Tuesday. Generally, the banks were following the plan under operation for the past week in Detroit, allowing depositors to withdraw 5 per cent of their deposits. In Detroit at the opening hour there were no lineups outside the banks and few instances of unusual numbers of customers inside.


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NEWS

Page. Movie Reel Editorial Movies Markets Winchell Ads Folly Island. Weather Radio Sports 16 Plans started for early pres. the west farm relief proposal. Page The United States general ruling on the proper of assembling to vote repeal. Page The senate banking heard charge the City control the mar ket for its stock. Page Senator assailed he clared control by New York Page The senate did some expense paring and then wiped added Page

Mrs. Theodore Roosevelt belated apology from health officer. Page Senator Thomas Walsh sailed for Cuba to marry sugar grower's Page President Roosevelt appointed Representative Douglas of Arizona as budget director. Page Michigan banks reopened. Page 2.

Dr. Charles urged cational guidance for employed adults. Page The repeal proposal was put Page The city council committee recommended the department personnel cut Page The park board had natural goldfish bowl Birch at Page Presidents of state teachers' col. united against the proposed curtailment of the state sys. tem. Page Northwest Feed Dealers told unregulated trucks affected their business. Knowledge of school subjects was called not the essential of education of girls by Dr. Malcome Mc. Lean. Page Miss Helen Wilson, former resident of Minneapolis, died Tre mezzio, Page 6. Patrick 79. deputy sheriff, fell dead. Page Two suspended Paul policemen were sentenced for larceny. Page

SINCE prohibition went effect several states which were dry have shown wet sentiment. map and story indicate the Page President-elect Roosevelt has decided he'll rely on service agents guard him the inanguration. He told Arlayne Brown, world champion revolver shot. offered that she won't be needed. Page The intelligence that gets marks not the only from educator. Dr. Malcolm college rector the University of urged education that will fit life. Page

The big Japanese drive in Jehol started. Page The Mount Everest plane party from Sicily after five Page WOMEN'S NEWS. Evon Nollette describes garments designed for double duty. Page 13. for Swedish meat balls by Kate Smith. Page 13. Restlessness is Elsie Page 13. Jessie DeBoth presents Sunday dinner menu. Page 13. SPORTS. Mickey shaded Frankie Knauer the six-round of the boxing Page 16. The city high school basketball will wind up today. Page 16 Page 17. Alexandria's quintet was elimi nated by the St. Paul Flyers in the feature of the amateur basketball the Ascen sions, Holy Cross and Belle Plaine also won. Page 17.

MARKETE

Bullish vanished in the Minneapolis pit; Chicago tumbled. Page 18. Stock values slumped to new low averages on large turnover. Page 19. Bonds suffered the worst relapse since the first the 19. Page 19. Dog and lamb trade advanced in South St. Paul: cattle prices mained unchanged. Page


Article from Imperial Valley Press, March 8, 1933

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By CLAUDE J

MARKLE United Press Staff Correspondent (Copyright 1933 by United Press) LANSING, Mich., March 8. (U.P.) -The man who three weeks ago in the dim dawn of early day penned the preface to one of the most crucial chapters in American financial history firmly believes he took the only possible course. "I would do the same thing over again," Governor Wm. A. Comstock said today. At 2 a. m. on February 14, seated in the massive directors' room of the Union Guardian Trust company in Detroit, Governor Comstock signed a drastic eight day holiday proclamation that marked the beginning of the present nationwide period. Governor Comstock believes that the developments of the last 21 days which have seen state after state--and finally the federal govPernment-follow the lead of Michigan into restricting of banking activity will quicken the pulse of economic recovery and will place the nation's financial structure on a firmer foundation. "I faced the most difficuit decision of my life three weeks ago this morning, just before I signed the proclamation which closed Michigan banks during an eightday moratorium," he told the United Press today. "Since then there have been moments when I have flinched at the thought of the results of that act. I have always, however, been able to calm that feeling with the assurance that I was merely an impersonal agent of government. "Consider what would have happened had the moratorium not been declared. One of the large financial houses of Detroit, a part of a powerful group operating throughout the state, would have closed its doors. Foresaw Panic "The rest of the day would have seen bank after bank in Michigan stripped of its cash and liquid reserves by panicky customers and turned into empty shells contain-


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BOMHOFF IS NEW CONSERVATOR

Succeeds Stuart M. Schram as Director of Affairs of Union Bank.

With conservator charge of the affairs the Union National bank recting the steps the forBank mation drive bring about the opening the new institution the possible speed, Friday Stuart the Union PeoThursday afternoon, immediately after president Bank Jackson, which to the closed few hours the appointment Bomhoff servator Bomhoff O'Connor, comptroller the curThe conservator took over his duties Friday former official the Products company city the Peoples Work Contract. The the opening the arranging National Jackson taining approval the Union Peoples bank providing taking assets by its sucUnion on this Friday this step has been completed, the deposits released the ples expected the comptroller's office and the Reconstruction Finance corporation, spent Thursday directors National returned their Thursday They took them the artiof the bank which must final Officers the NaJackson willing Friday forecast when its doors opened for business, although the opening virtually in future. The the Union Peoples expected.


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PayoffIs Assured for Jackson Bank

Contract for Assets Purchase Signed

An order approving the contract into between the conservator the Union and People's Na tional Bank and the new National Bank was signed Federal Judge Edward Moinet Saturday The contract already had been approved by the Comptroller of the Currency Under the terms the agreement. the Union and People's Na tional Bank permitted to sell certain of its consisting cash, and National bonds and notes to National for The money will be for an ate payoff depositors of the Union People's Bank This bank was closed March 19 of this year. The new bank the contract states, has the right to return the assets within months for cash the old bank has the take back the assets, should so desire The agreement signed Thurs day between Fred servator for the Union and People's National Bank and M. Schram and Clark, president and cashier respectively, of the Na tional Bank


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JACKSON ATTORNEY IS BANK RECEIVER

Jackson, Aug. 25.-(U. P.)Reuben H. Rossman, Jackson attorney, and chairman of the Jackson county Democratic committee. has been appointed receiver of the Union & People's National bank. it was learned today. He succeeded L. Fred Bomhoff, conservator since July 14.


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ROSSMAN RECEIVERSHIP

Jackson Attorney, Democratic Leader to Direct Liquidation of Bank.

BOMHOFF ORDERED OUT

Comptroller of Currency Notifies Conservator to Quit Job at Once.

The appointment of Reuben H. Jackson attorney, ceiver for Union Peoples telegrams to afternoon O'Connor, comptroller the currency. Rossman succeeds L. Fred Bomhoff, closed since Mr. Rossman over his duwith the that does not intend to make changes personnel the office although entire working time of the Union Peoples National will continue maintain his ofin Dwight building. headed meeting Friday no issued its conclusion. committee will take no action for the Bomhoff Notified.

Mr. Bomhoff the folfrom O'Connor the commission Union Peoples National bank, terminated Reuben H. receiver, effective date of instructed to take trust Take detailed receipt triplicate for delivered Mr. Bomhoff's last official act of schedFriday fixed the last day for depositors, Saturday allotted to the Dividends "J" depositors be available While announcement to the of legal advisor was ing Thursday afternoon, generally believed that Elmer Kirkby, will be appointed. Rossman of the Democratic mittee and has active in the for many years. Mr. Kirkby prominent Democrat and candidate in the

Committee to Meet.

Before his succeed Stuart M. president tional Jackson, Mr. Bomwas member the Union depositors' final were made for the 35 cent payoff now in progress.


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ATTORNEY IS OFF FOR CAPITAL

Bank Receiver Also Takes Trip, but Mr. Miner Delays Journey.

City Attorney Brower and R. H. Rossman, receiver for the Union Peoples National bank left Wednesday afternoon for Washington, they on arrangements the release percentage of city's balance in the Mr. Brower intended to conwith federal public works cials on city's sewage disposal plant there some would expend deal on this problem. John W. member of the Michigan advisory committee of the Reconstruction Finance corporation. was lied city attorney aiding the drive speedier tion on the disposal plant applicadid make trip to Washington. Mr. Miner stated Thursday that he go to the national capital later on R. F. business


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In Closed Bank Case.

NEW SUITS FILED

COMMON PLEAS COURT A44259 Robert Wachendorf : For Homan Martin Harbrecht For divorce and custody children 44264 Ada and Woodward Nancy Springer Harry Western Bank Trust Hueftlein For Trust A44269 Ferdi closure mortgage Rinck Security Trust A44271 Alene Louis A44272 Board George Riesenberg Carl Frederick $2,500 Ice Wagon Drivers Frank George Elmer Braker Marcus Genevieve Roy May Bank Joseph For National Bank Carrie Resussing For Nathan Koper Heat Catherine of

In an appeal and cross appeal filed in United States Circuit Court of Appeals yesterday by Paul H King and George Referee Detroit Mich., as appellants, and Reuben H Rossman receiver of the Union Peoples National Bank of Jackson, Mich Appellate is asked determine the status of bankruptcy of funds in bank which has been over by the of the Currency The order appealed from is that of District Judge John Knight Detroit reversing order the referee summarily directing Receiv er Rossman into Court pay $2,526.28 deposited by the bank trustee in bankruptcy of the Hills dale Company, bankrupt in its commercial The referees took the position that the fund held by the bank was legis' and subject to summary order for pay ment into Judge Knight held that the fund was held by the trustee "ex and the hands of the receiver trust fund and that was to be considered as preferred claim subject to payment with other pre ferred claims as directed by the Comptroller of Currency The bank and its receiver and Conservator appeal from this order contending that the fund not entitled to preference but is simply deposit entitled only to the dividend which be declared to general creditors and

Florida Corporation Appeals.

Appeal from the judgment of District Judge Robert Nevin at Dayton, Ohio, directing the jury to return verdict for the de fendants their suit against Ar thur R Hill al. Springfield Ohio, was filed in United States Circuit Court of Appeals by the Gratigny Development Cor poration et al., Miami, Fla The case is an outgrowth of an alleged deal for land in Miami in 1925 The Florida corporation alleged the defendants entered into contract with to purchase tract of land for $152,000 and that $96,666.65 with interest per cent from January 1926, due on it.

Truck Driver Arraigned

Under charge that he forged and passed compen sation check for $38 issued to Luther Marion Morgan, 1336 Main Street Cincinnati, last February Frank Dewitt, 38 years old 103 West Fourteenth Street truck driver, was arraigned before Will liam Hohmann, United States He de nied guilt and he was held in $1,000 bond for his appearance for preliminary hearing August 18. In default of the bond he was committed to Hamilton County Jail.

Sisters-In-Law Fail.

Mrs Amelia M. Williams, housewife, 1119 Eighth Street, Ports mouth Ohio, and her Mrs. Anne E. Williams housewife 1515 Jackson Avenue. Portsmouth yesterday filed voluntary petitions in bankruptcy in United States District Court for relief from debts totaling $14,588 and $14,446.92 re spectively Each lists as her principal creditor B. Kimble receiver for the First National Bank of on 759 88 Mrs. Amelia Williams lists no Mrs Williams lists assets valued at $332 all of which she says are exempt

Enter Bankruptcy Petitions

Voluntary petitions were entered in United States District Court yesterday by the follow ing

Carl Fairfield Monk 2925 Brant Avenue Portsmouth which said Molloy printer 2214 Street assets which he claims Winfield Wilson Heaton

Bankruptcy Case Closed.

Final record closing the case of Lester Clifford Roberts wage earner Ironton Ohio, was filed in District Court by Mark R. Craw ford referee bankruptcy Ports mouth Liabilities totaled $1,527.28 There were

Seeks Bankruptcy Discharge

Petition for discharge from his debts filed in District Court by Raleigh Smithson, Ironton


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Bankruptcy Funds Involved In Closed Bank Case.

In an appeal and cross appeal filed in United Circuit Court of Appeals yesterday by Paul H. King and George A. Marston, Referee in Bankruptcy, Detroit, Mich., as appellants, and Reuben H. Rossman, of the Union Peoples National Bank, of Jackson, Mich., cross-appellant, Appellate Court, is asked to determine the status of bankruptcy of funds in bank which has been taken over by the Comptroller of the Currency. The order appealed from is that of District Judge John Knight, Detroit, reversing an order of the referee summarily directing Receiver Rossman to pay into Court $2,526.28, deposited by the bank as trustee in bankruptcy of the Hillsdale Grocery Company, bankrupt, Hillsdale, Mich., in its commercial department. The referees took the position that the fund held by the bank was in "custodia legis' and subject to summary order for pay. ment into Court. Judge Knight held that the fund was held by the bank as trustee "ex maleficio" and came into the hands of the bank's receiver as trust fund and that was to be considered as preferred claim subject to payment with other preferred claims as directed by the Comptroller of Currency. The bank and its receiver and Conservator from this order, contending that the fund is not entitled to preference but simply general deposit entitled only to the dividend which may be declared to general creditors and depositors.

Florida Corporation Appeals.

Appeal from the judgment of District Judge Robert R. Nevin at Dayton, Ohio, directing the jury to return verdict for the defendants in their suit against Arthur R. Hill et. al., Springfield, Ohio, was filed in United States Circuit Court of Appeals by the Gratigny Plateau Development Corporation et al., Miami, Fla. The case is an outgrowth an alleged deal for land in Miami in 1925. The Florida corporation alleged the defendants entered contract with to purchase tract of land for and that $96,666.65, with interest at per cent from January, 1926, is due on it.

Truck Driver Arraigned.

Under a charge that he forged and passed Government compensation check for $38, issued to Luther Marion Morgan, 1336 Main Street, Cincinnati, last February, Frank Dewitt, 38 years old, 103 West Fourteenth Street, truck driver, was arraigned before William P. Hohmann, United States He denied guilt and he was held in $1,000 bond for his appearance for preliminary August 18. In default of the bond he was committed to Hamilton County Jail.


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BANK RECEIVERS DISCUSS RFC LOANS

R. H. Rossman Preparing Application for Union & Peoples of Jackson.

With a new RFC loan application nearing completion, R. H. Rossman, receiver for the Union & Peoples National bank, has been conferring with receivers of other Michigan banks who have directed preparation of similar applications, it was learned Wednesday.

Mr. Rossman spent Tuesday in Grand Rapids in conference with David E. Uhl, receiver for the Grand Rapids National bank. Mr. Uhl has supervised the drawing up of one RFC loan application and is now directing the preparation of another. The Jackson receiver also stopped in Lansing to consult briefly with officials of the Capitol National bank receivership.

The Union & Peoples application will be ready for forwarding to Washington within a short time, according to Mr. Rossman. The loan will be used to finance another payoff to depositors.


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Assessment Paid To Bank Receiver

Schram Gets $5,040,000 Compromise Fund

Detroit, June 5.β€”(AP)β€”The compromise assessment against stockholders of the Guardian National Bank of Commerce and its five outstate subsidiaries, was paid over to B. C. Schram, receiver of the Guardian National today by representatives of the Guardian Depositors corporation which will take over the assets of the closed concerns and liquidate them for the larger depositors.

The compromise assessment amounted to $5,040,000 and was placed literally on a barrel head in Schram's office. On the barrel head also were placed the contracts for transferring the compromise assessments.

Within a week the $76,914,341.19 in assets will be transferred to the corporation, headed by William R. Catton, as president. The assets to be transferred come from $92,794,455.68 of proved and allowed claims. Claims of $1,000 and less have been paid.

The stock assessment against the Guardian National Bank of Detroit originally was $10,000,000 and this was compromised at $4,000,000. The levies against the out-state subsidiaries was $2,600,000, which was compromised at $1,040,000.

The subsidiaries and their compromise assessments are:

Capitol National Bank of Lansing, $240,000.

Grand Rapids National bank, Grand Rapids, $400,000.

Union and Peoples National Bank of Jackson, $280,000.

National Bank of Ionia, $60,000.

City National Bank & Trust company, Niles, Mich., $60,000.


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Closed Bank Still Paying Depositors

Depositors in the closed Union and Peoples National bank still are being paid their 10 per cent dividend checks from the lobby of the National Bank of Jackson, it was announced Wednesday by Receiver R. H. Rossman of the defunct institution. The distribution is to be continued from the new bank for the balance of the week and starting next week will be transferred to the ground floor quarters of the closed bank, the receiver said.

He has asked all who have not received their dividend checks to come to the bank for them without delay in order that the accounts may be brought up to date.