1.
February 11, 1929
The Times
Hammond, IN
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EXTRA!
Ind., Feb. (I.N.S.) were inpersons stantly killed and a third seriously hurt when the Manhattan Limited of the Pennsylvania railroad demolished an automobile on grade crossing at Etna Green, 12 miles west of here this afternoon.
NEW YORK, Feb. City Trust company. Manhattan bank with four branches in the greater city and capitalization of $1,225,000 closed today by Frank H. Warder, superintendent of the state department of banking. Officials refused to comment.
MINES FIELD, LOS ANGELES, Feb. in her effort to smash the world's endurance record for women, Bobbie Trout, 23-year-old girl flier, returned to earth at 10:10:22 here today in her single motored Golden Eagle monoplane.
SEBRING, Fla., Feb. Highlands Bank & Trust Company failed to open its doors this morning. The action was taken by directorate because of silent and heavy run on the institution for the past three weeks, notice posted on the door said. The state comptroller was requested to take charge of the bank.
VILLA GROVE, III., Feb. (U.P.) Belief that body found in the C. and E. I. railroad reservoir here may be that of little Edith Mae Deardorf, 14-year-old news girl of West Terre Haute, Ind., who has been missing since January 25, was expressed by officials today.
BEVERLY HILLS. Cal., Feb. Marshal Neilan, noted motion picture director, was recovering today from the effects of carbon monoxide gas that nearly caused his death in the family garage here yesterday. His screen star wife, Blanche Sweet, discovered his plight and dragged him to safety.
HERCULES, Calif., Feb. Four men were believed to have been killed in an explosion which wrecked gelatine packing plant of the Hercules Powder company today. The building was used for packhun-
2.
February 11, 1929
The Times
Hammond, IN
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Article Text
EXTRA!
Ind., Feb. (I.N.S:) were inpersons stantly killed and third seriously hurt when the Manhattan Limited of the Pennsylvania railroad demolished an automobile on grade crossing at Etna Green, 12 miles west of here this afternoon.
NEW YORK. Feb. (I.N.S.) The City Trust company, Manhattan bank with four branches in the greater city and capitalization of $1,225,000 was closed today by Frank H. Warder, superintendent of the state department of banking. Officials refused to comment.
MINES FIELD. LOS ANGELES, Feb. (I.N.S.) Triumphant in her effort to smash the world's endurance record women, Bobbie Trout, 23-year-old girl flier, returned to earth at here today in her single motored Golden Eagle monoplane.
SEBRING, Fla., Feb. Highlands Bank & Trust Company failed to open its doors this morning. The action was taken by the directorate because of a silent and heavy run on the institution for the past three weeks, notice posted on the door said. The state comptroller was requested to take charge of the bank.
VILLA GROVE, III., Feb. (U.P.) Belief that body found in the C. and E. I. railroad reservoir here may be that of little Edith Mae Deardorf, 14-year-old news girl of West Terre Haute, Ind., who has been missing since January 25, was expressed by officials today.
BEVERLY HILLS, Cal., Feb. Marshal Neilan, noted motion picture director, recovering today from the effects of carbon monoxide gas that nearly caused his death in the family garage yesterday. His screen star wife, Blanche Sweet, discovered his plight and dragged him to safety.
HERCULES, Calif., Feb. Four were believed to have been killed in an explosion which wrecked gelatine packing plant of the Hercules Powder company today. The building was used for packing dynamite and hundreds of cases of the explosives.
3.
February 11, 1929
Wilkes-Barre Times Leader, the Evening News
Wilkes-Barre, PA
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LATE NEWS EVENTS
Coolidge issued proclamation today calling the the 71st This the upon the of executive. The Senate's convening is necessary in order to con
New York, Feb. City Trust Company, Manhattan bank with four branches the greater and capitalization $1,225,000 closed today Warder, superintendent Department Officials the on the institution's affairs. The bank has chiefly an Italian clientele.
San Quentin, Calif., Feb. 11.-Mrs. Sarah Louise Northcott was ported state today result learning the prison that Gordon, been of murder and awaiting death the gallows. Northcott created scene when the reached her, violently hysterical, and finally given medical treatment to calm
Key West, Feb. over the Gulf of Mexico today caused the the the for today. scheduled escape marine 120 feet means of an mask or
4.
April 12, 1929
Brooklyn Eagle
Brooklyn, NY
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MANCUSO AND OTHERS KEPT IN DARK ON FAKE CITY TRUST ENTRY AND IRREGULARITIES
Voice of Marion Talley Matured at 15, Secret Of Early End of Career
Sponsors Insisted on Developing Her Voice for Several Years Before Her Debut, Not Realizing Girl of European Peasant Stock Had Already Reached Full Powers.
By MARJORIE DORMAN. Marion Talley, 23-year-old soprano of the Metropolitan Opera Company, has suddenly and inexplicably decided to sing "Home, Sweet Home."
After being trained by Otto H. Kahn and Gatti-Casazza for three years and presented at the Metropolitan with more acclaim and flourish than has HIT ever greeted any other American singer, and after amassing about $500,000 in three years, the pretty, practical, matronly looking girl announces that she is going back to the soil and become INCREASE farmer. "A flop," say the musical critics who and all have had their tongues their cheeks since Mr. Leading Issues All Up. Hahn Gatti-Casazza presenteed Easing in Federal ReMiss Tally. year ago The Eagle announced serve Policy Indicated. that the would not the youthful soprano her expired Bullish forces were again in conMay, 1928. Her manager, George trol of price on the Engles, refused discuss Stock today. All sorts of matter, saying he was concerned issues from one to three points only with her concert work. The before profit taking reduced them. Eagle 1929 Miss Talley be invited to sing Traders were little optimiswould tic and activity increased. Metropolitan And that was Much of the better demand for what she did the past year. stocks was the No Expression of Regret. loans reported Efforts single expression last night the further improveregret Miss Talley ment the position the Reserve the Metropolitan proved futile banks, which this morning. thought would tend make "Isn't Mr. Gati going to say he authorities less militant in their sorry Miss Talley titude. The Eagle the Rubber and Copper Up. the arrival Other items the days news were talent and so loath to say any bying when company and copper the departing singer out the back shown he was the terse joinder William single member the board who quoted? It isn't every day that opera singer retires at Surely will give out statement about the talent just before he leaves for Europe," the the offices of the National Company, 5th and 55th Manhattan, representative Miss said the gir. in the movies not negaged married There to that she yearns farmer and will live like neighbors, was declared. Takes It Philosophically. sensible maturing early, kept her head and made pracPlease Turn to Page
Chairman of Board Asked for Facts in Collapse, but Official Explanation Still Rests Behind Cloak of Secrecy Despite Many Demands.
"Due From Foreign Banks, $800,000.
Although the doors of the City Trust Company been closed for 60 days by Frank H. Warder. Superintendent of Banks, Warder has not yet disclosed to Judge Francis X. Mancuso, one of the most prominent citizens connecetd with the bank and chairman of its board. that the above entry in the bank' foreign exchange account was false entry to cover up shortage. Warder, who has been dodging ever since the City Trust was closed, again could not found at his office today. usual, his assistants said they did not know where he or whether he would come the office at all today. Judge Mancuso today said he never had been told about the discovery false entry asked for information about by Warder. He said, however, that he had been told about the entry. but not the amount, from another Aghast at Amount "Who told you about it?" he was asked. Giannini told me about it, but had been closed by Warder,' he replied Dr. Giannini is chairman of the board the Bank America, the solicitation Warder option the City Trust. When declined exercise option after an independaudit had men Warder closed the City Trust's Judge aghast when told the had no idea was just much dark about what the Banking connection anyone else. have asked for but none has been given me by the Banking Department "Who responsible for this and the other that are reported to have been didn't know there after been closed. would have of the board had known of the irregularities?" he replied. Mahoney Evasive. Jeremiah Mahoney, of counsel for was "Who the money 'covered' up the reported know; know who made I'm not keeper have to get your information else know you not. that there an was found false?" Mahoney was asked have nothing to say about Judge Mancuso's statement confirmed testimony being given daily other City Trust directors called in the Lancia Motors America. Inc., bankruptcy case, that even the directors allowed peep beneath the official secrecy which clamped who the bank, how wrecked and extent the losses. Lancia another enterprise the late Ferrari, president the City Profess Ignorance of Facts. In spite official that the bank forged notes officially denied funds were used bootleg operations and that made collateral. all the rectors who have professed things. Hubbard. member Board Assessors and City Trust said: far know the bank was solvent on Feb. and may be solvent far as Similar by Benjamin Weeks and other City They testified bankruptcy hearing of Lancia Motors terprise late Ferrari, who died on the night
Asked Sign was Feb that Warder force directors responsibility for the and was on Feb. 11 Warder wanted the that they loans both and Weeks "Some signed, but fused and walked In yesterday Huboffered the had made hurried appeal the direcWarder two hours said meeting of the held the the Bank Judge Manstated that officers and directors had Ferrari died bank. had appealed to Warder Giannini at Meeting. Dr Giannini, testified. glad help the directors institudid want happen which would reflect on an Hubbard said wantCity he value the City signed that
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5.
April 12, 1929
Brooklyn Eagle
Brooklyn, NY
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Chairman of Board Asked for Facts in Collapse, but Official Explanation Still Rests Behind Cloak of Secrecy Despite Many Demands.
Due From Foreign Banks,
Although the doors of the City Trust Company been closed for 60 days by Frank H. Warder, Superintendent of Banks, Warder has not yet disclosed to Judge Francis X. Mancuso, one of the most prominent citizens connecetd with the bank and chairman of its board. that the above entry in the bank's foreign exchange account was false entry to cover up shortage Warder, who has been dodging since the City Trust was closed, again could not be found at his office today. As his assistants said they did not know where he was whether he would come the office all today. Judge today said had been told about discovery asked information about by He said, that he had told about the entry. but not the amount, from another source. Aghast Amount "Who told you about he was "Dr. Giannini told me about it, the had closed by Warder," he Giannini is chairman of the board Bank of America, who at the solicitation of Warder took option buy the When declined cise this after an ent audit Warder closed the City Trust's Judge Mancuso appeared aghast the reported amount. had no idea was he just dark about the Banking Department the City Trust anyone have asked but none been given me Banking Department." for this and the other that are have been Judge Mancuso was asked. didn't know there were Irregularities until after the bank had been you think have of the board known of the replied. Jeremiah Mahoney, of counsel for Warder, the money 'covered' up the $800,000 know; don't know who made the entry. I'm keeper. from do that there was an found be Mahoney was asked. nothing say about Judge Mancuso's statement confirmed the given daily other City Trust rectors witnesses the Lancia Motors America, Inc., bankruptcy case, that even the directors not been allowed peep beneath the secrecy clamped the facts, who bank, how wrecked and the the losses. Lancia Motors was another enterthe Ferrari, dent of the City Trust. Profess Ignorance of Facts. In spite official admissions that the bank held forged notes sinister officially denied funds large and that all of the rectors who have testified professed complete ignorance such things. Hubbard, member and City Trust know the bank solvent on may solvent far Similar testimony was by Benjamin Weeks and other They testified the enterprise the late Ferrari, who died the Feb. that Warder tried to force the directors sume responsibility the bank's and was on Feb. 11 that doors. wanted the directors to paper they would for all loans both legally and Weeks testified. but refused and walked In testimony yesterday Hubbard the first that had made the hurried appeal the direcWarder than two hours Ferrari said that meeting of the directors held the morning in the Bank of Judge the officers directors had nervous when Ferrari the bank, appealed Warder assistance.
Giannini Meeting. Dr. Giannini, Hubbard present this meeting and said would glad not only to help the directors but the institution he want happen which would reflect on an Dr. Hubbard wantan option 7,500 City Trust stock for which was pay book value plus on percent said thought the City in this effect, but that
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6.
May 23, 1929
The Jersey Journal
Jersey City, NJ
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Witness Says Warder Insisted That City Trust Co. Was "Solid"
Feared Run on Bank, Directors Were Told; Probers Hear Report Directors Met at 3 A. M. on the Morning After the Death of Ferrari.
New May bald ment that the City Trust Company was unstable and funds on hand was made to the Board of in of Banks o'clock in the the of the President, Frank M Ferrari, Hubbard, former Sheriff York County, testified the nearing before ComMoses Mr. was director of the City Trust Company VicePresident of Murray Hill branch the clared that was called on the phone o'clock Judge insisted that attend meetthe Bernard Fliashnick No. 1140 Also at meeting Bernard President of the Bank the United States, made an offer over City Trust Company all assets and liabilities, Hubbard explained the De Paolo, of company haven't amount on bank and there rush the unable demand to call Mr. bard
"Solid," Warder Said
Commissioner Moses asked the what Mr. Warder had say ESTABLISH NEW this Hubbard swered that the had that the bank TRAFFIC COURT The being dissatisfied the offer made them Mr. Marcus, hurriedly accepted an invitation by Giannini him At the Barison Will be JudgeDr. Giannini, he tinued, the Nolan Slated to be Judge Court Clerk. pointed that the City Trust follow the of Ferrari's death Mr. Warder told Dr. Giannini that Hudson County Night Traffic he would going into Court to handle cases from county good If were help the Boulevard police
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7.
May 23, 1929
The Brooklyn Daily Times
Brooklyn, NY
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REVEALED pique Hubbard said. and the directors then went the office of Dr. Giannini, from whom they believed they could more money. Giannini's best offer. Hubbard said, for full value of the stock to stockholders and 4½ cent. of deposits. This meeting also broke off in some manner Hubbard did not explain. The directors met in Warder's office, where the books the City Trust Company were be gone over. Hubbard quoted Warder as saying at this "There no need the Murray Hill branch. know there nothing wrong there."
Had City, State Funds Hubbard also testified that Ferrari had him use his political influence get bank accounts of the city for Ferrari banks totaling $75,000. He also State account for and State count for These negotiations he through Morris Tremaine. Controller. and James Beha, State Insurance tendent. Commissioner Moses again caused friction State bodies vestigating the bank's today, when he Assistant Attorney General Robert Conklin from the counsel table his hearing and prohibited this State law from participating questioning Moses' came the result of Attorney General Hamilton Ward's remarks night Manhattan political meeting, he charged Moses was shunting the accusations in the City Trust failure rest upon Frank Warder, resigned Banking
Ward Criticizes Moses Ward objects to Moses tion being entirely "too limited and laying door one Another critic the course of the Inquiry. Leon Leighton, an torney for asked for session of the Supreme Court investigate criminalthe City Trust case, told bide his time by Lehman. The Governor told Leighadditional could time Jury have Moreland expected the formed assets and liabilities Trust and pay despositors full. open for group. that completed Mutual Trust will sign the tract the State Banking perintendent the throw open public be settled Notebook Re-enters Hearing The little red notebook in which there of paying $30.000 cash to one plained Warder' spelled backcame play again today. Warren Fielding. of the law firm Justic took the stand and told of seeing the notebook the bank. but could not tell Fred Piderit, bank examiner found the book. recalled the stand and told being sent the City Trust bank while Dr. Giannini's auditors were checking the books preparatory to taking the defunct institution. Piderit swore he went there February without examination sheets. without Instructions make port State Bank Examiner, but merely to "stay with Giannini's auditors."
Warder Censured Him He said he did not know he there, that once when Warder visited the and Piderit did be within elbowthe
8.
May 23, 1929
The Brooklyn Daily Times
Brooklyn, NY
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Planes on Daily Trips Now to Atlantic City
Atlantic City, May 23.-Daily airplane service between York Atlantic City inaugurated by the Curtiss Flying Service, Inc., with the arrival the municipal airport here yesterday of Sikorsky amphibian plane carrying passengers and pilot and pilot. It that two round trips will be made daily, excepting effective June The New York North Beach, Queens. The trip today took minutes. with them.' he said. But he did not explain why.' Federal hearing beHenry had believed Warder had sent men the bank "hinder on the Piderit concluded his testimony by had made report and auditors, merely without why he was followwell known HarCity Trust stockholder. said bought Ferrari stock the word Judge Francis upon whom operchase City Trust Saphir knew nothing Barker. $61.in loans made Mary not know that Mary Barker Mrs. Ferrari, listed under maiden loan Theresa Ferrari's listed under her maiden also physician further testified that he bought from agency Lancia holding volved the tangle. That July Ferrari urged him to 1928, Bank stock. Upon that the City Ferrari's statement Trust probably check for gave 570 for Says They Were Illegal. Pollak interposed the that the here: voting trust Judge sell illegal? Did not you you would not entered the deal had known Dr. Saphir said he experienced his stock. great He Judge "after much pushing and ferred DI Paolo, treasCity Trust Co. around," Dr. "pushing Saphir given shares in the City for Prudential took in the deal came light, he swore, when cancelled check without eH asked Paolo told Judge Mancuso Stand took the stand Judge agitadeath and conferthe sale of the City Trust through said he was called DI Paolo went Warder's apartment. Warder me only 'We must act Warder then called Judge Mancuso Warder rushing. "things are not you they Mancuso the Paolo, did Mancuso reiterated everything would Warder people. directors meeting Italian president after funeral. Feared "Run" on Bank Warder also emphasized his But on the bank the After veered from the posal Marcus merely cash check run, and terms. said that while DI urged for Paola held until office talk directors. despite Warder's ground broke up, said.
9.
June 14, 1929
News and Record
Greensboro, NC
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FORMER NEW YORK OFFICIAL ARRESTED
Warder, One Time State Superintendent of Banking, Charged With Irregularities.
New York, June H. Warder, former state superintendent of banking. was arrested this afternoon on three warrants signed by Supreme Court Justice James Cropsey, sitting as committing mag. istrate, on criminal charges growing out of investigation into the failure of the City Trust company. The investigation was conducted by Commissioner Robert Moses under visions the state's so-called MoreThe felony charge that he cepted charging his meanor charge that he held nancial interest other failed discharge duties properly in that did order the Trust for the year ending last
10.
June 28, 1929
Springfield Leader and Press
Springfield, MO
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BLAMED
Frank H. Warder, former New York state superintendent of banks, is pictured above shortly after arraignment before a state supreme court justice on charges of contributing to the foundering of the bankrupt City Trust Company of New York City Mrs. Angelina Ferrari, widow of the owner of the trust company. Francis M. Ferrari, charged Warder hounded her husband for money. Meanwhile, complete investigation of the state banking department activities is un der way.
11.
July 8, 1929
Brooklyn Eagle
Brooklyn, NY
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MOSES CHARGES CRIMINAL ACTS IN CITY TRUST FALL
Commissioner Backs All Accusations of Fake Loan, False Entries.
By FRANK G. HOLMES. Commissioner Robert Moses has completed the draft of his report on the City Trust Company investigation. He will hand it to Governor Roosevelt on Wednesday. The report confirms all of the revelations of criminality, brazen looting. forgeries, loans to dummies and whole series of law violations uncovered by The Eagle following the bank crash at time when both Albany and the Banking Department refused to It also confirms The Eagle's exclusive revelations of gross laxity In the Banking Department, negligence of members of the City Trust board fake entries in the City Trust books. The report is brief and constructive. Its outstanding features will be founde in an adjoining column. While Moses report was completed another and very different report on his investigation went on its way to Albany today. It was Assistant Attorney General Robert 8. Conklin's 50-page comment to Attorney General A. Hamilton Ward after Conklin's service as silent spectator at the Moreland hearings Moses not permit Conklin to the probe. If Conklin's made public this will done at Albany by Ward. is understood, however, that criticized Moses for and commissions, alleging that he failed to follow up with sufficient vigor ing Deputy Commissioner Mancuso, Michael Cleaning Laura, Judge Commissioner H. Warren Hubbard and Edward Glynn, exGovernor Alfred E. Smith's nephew. All men are Conklin and Ward Republicans. DI Paola Arraigned. Meanwhile, Anthony D1 Paola, of the wrecked bank; Federico vice president and brother of the late president, and Isidore Siegeltuch, Tammany politician and director of the bank, arraigned before Supreme Court Justice James Cropsey, sitting a committing magistrate, in Man-
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12.
August 1, 1929
Passaic Daily Herald
Passaic, NJ
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Defunct City Trust Depositors to Get Payment in Full
New York. (AP) An order authorizing Joseph Broderick, State banks, turn over the assets the defunct City Trust Company Inter. national Germanic Trust Company, thus full payment City Trust signed today by Justice Philip McCook Supreme Court. The Trust failed last City ruary millions in forged unsecured its had deposits of $7,347,550.
13.
August 7, 1929
The Buffalo News
Buffalo, NY
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TODD IS BANK PROSECUTOR
New York Lawyer Picked to Press City Trust
Special to the BUFFALO EVENING NEWS Todd of the New York law firm of Maldwin Hutchins Todd, was summoned to New York from his summer home here Yesterday afternoon to act as special assistant to District Attorney Joab H. Banton. to take charge of the criminal prosecution growing out of the failure of the City Trust company. He will take up the work of Charles A Perkins, was removed to hospital seriously ill Monday Mr. Todd was one of the counsel in the impeachment trial of Gov. William Sulzer and during the war was judge advocate the 13th division at Camp Lewis, Washington After the war, as Federal attorney for the Northern district of New York, he successfully prosecuted Gaston B. Means and Col. Thomas B. Felder on an indictment charging conspiracy to obstruct justice
14.
October 19, 1929
Brooklyn Eagle
Brooklyn, NY
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MANCUSO'S BANK JOB NOT PROPER, REPORT
Albany, Oct. mittee the Association New York, which investigated the connection Francis Mancuso the City Trust Company today Governor its opinion Mancuso have properly his duties the while sitting judge in the Court of Special SesThe did not go beyond making such statement. It's conclusions be withheld until after courts have determined the cases arising out of failure the bank and activities. report signed Camp. Manfred W. Ehrich, McGuire William M. committee of the New York Lawyers by Harold Harper. George Medalie and Spence the the Bar the City of New York.
15.
October 23, 1929
The Times-Tribune
Scranton, PA
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CHARGES BRIBE WAS PAID TO STATE BANK HEAD
PROSECUTION ALLEGES WARD ER RECEIVED FURNITURE AND EXPENSIVE AUTOMOBILE FROM TRUST PRESIDENT.
New York, Oct. 23 state began its at the bribery trial Frank superintendent banks, and his opening argument Hiram Todd, sistant district attorney effect charged that Warder blinded himself to frauds that caused the collapse of the City Trust company. Justice Arthur Tompkins, presiding over jury composed mainly aged heard Todd declare Warder was the books of the $10,000 bribe from the late Francesco M Ferrari, City Trust president, withheld the state audit. The money for the bribe, Todd said, obtained by Ferrari while on sickbed on Sept. and Warder's Riverside Drive home. in previous Ferrari helped furnish the Warder and had purchased expensive automobile for Warder's daughter Todd asserted the state will show that the Annrow Realty company, one of Ferrari's many enterprises. an more than $150,000 the Trust company. Frank H. said "had made the bank the spring of 1928 the fall of 1928, the bank would have been The bank went the wall in February, short time after Ferrari's death.
16.
October 24, 1929
The Ithaca Journal
Ithaca, NY
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Employe of Warder Testifies At Trial; Passport
New York, Oct. girl secretary to Frank H. Warder. signed banking trial for testified today she had filled out application for passport for employer about the time he resigned his position April The witness Miss Margaret D. Kennedy, who said Warder had dictated his resignation to her, also instructing nothing about the errand. On that Warder templating trip to Europe depositors last Spring based their demand Moreland inquiry Warder's connection with the collapse of the City Trust Company. The inquiry led the Warder charge of accepting bribe from the late Francesco Ferrari neglect legally required examinations of the bank's books.
17.
November 11, 1929
New Britain Herald
New Britain, CT
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BANK CHECKED IN RIORDAN SUICIDE City Trust Co. Found in Good Shape, Official Says New York. Nov. 11 (UP)-Although State Superintendent of Banking Joseph A. Broderick has found the City Trust company to be "even stronger than the average institution.'' extraordinary precautions were taken to guard against a possible run on the bank arising from the suicide of its president, James J. Riordan. While the motive for the suicide of Riordan. friend of former Governor Alfred E. Smith and John J. Raskob. and reputed to be a multimillionaire. was not disclosed. it was reported to be over losses sustained in the recent stock market decline Dr. Charles F. Norris, chief medical examiner, officially reported that Riordan was temporarily insane when he shot himself on Friday at the home of his sister. At the same time Norris denied a rumor that he withheld a report of the suicide until 20 hours after it happened in order that funds might be supplied the bank. When a report of Riordan's suicide reached Banking Superintendent Broderick, he and a staff of bank examiners immediately started an examination of the trust company, customary in cases of this kind. Our completed examination." he said. "confirms my beliefs. Namely that the bank is not only liquid. but is in splendid condition and worthy of every public confidence." When the doors of the bank open in the morning, friends of the dead banker stand prepared to deposit dollar for dollar for every one withdrawn. it was said. In 1909 there was not a plant in Mississippi for the commercial utilization of milk or cream. Now there are 306.
18.
December 18, 1929
The Times
Trenton, NJ
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SUSPENDED SENTENCES IN CITY TRUST CASE
NEW YORK, Dec. Anthony DI Paola, who was treasurer and cashier of the bankrupt City Trust Company today pleaded guilty to having submitted false reports to the State Banking Depart on the trust company's conditions and, on of District Attorney Joab H. Banton, was suspended by Justice Arthur S. Tompkins in Supreme Court Frederico Perrari, brother of the late F. M. Ferrarl. head of the City Trust Company also pleaded guilty to an indictment charging him with misdemeanor in with falsified reports He also was given a suspended sentence. Salvatore Soraci and Leonard Rose, who were directors of the City Trust Company pleaded guilty to misdemeanor them with had part in the State ing They were fined $250 each The City Trust Company falled last February for following the death of F. M. Ferrari.
19.
December 26, 1930
Times Union
Brooklyn, NY
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The News WILLIAM
THE BEST POLICY the closing of the doors the branches New York movement began an entirely new activreported that Communist orators stationed themselves in front of the branches depositors assembled in long lines to reclaim they could of their and harangued the crowds on the evil deeds of the bankers. What possible connection there is between the troubles bank in question and the Soviet Union that the orators call upon their hearers to not quite clear. What on earth the local Communist party knows about banking in any form has not yet developed. But the peculiar incident has veloped something new plain and fancy tating." appear that Communists are deliberately working up certain banks to attack. There would be no point naming them here, fact that they have mentioned several by name and have them acute embarrassment. People have been called on the telephone by strangers and told that the and Shore Dinner National Bank about to close its doors. Stories have been deliberately spread that the Corn, Rye and Scotch Trust Company is in
EVIL RUMORS
Rumors of that kind spread with incredible rapidity. People have no time, and do not care investigate the rumors. No one would tell them the truth, anyway, if the bank actually were danger. Each one thinks (quite properly) of his own bitterly money, the few hundreds or thousands he has accumulated by self denial in order to have money for emergencies like illness, for son's education, for needed vacation. And each goes down quietly to withdraw his money thinking, also quite properly, of his own interests before the general interest of the bank or the public. so easy to start rumor of that kind; easy to start run on any bank. In piping times of prosperity when banks like the City Trust Company of odoriferous memory fail it is enough to demonstrate that is because of the rascality of faithless men. But when bank fails in the midst of period of depression it is easier to believe the worst than not to. Many will recall the curious rumors that swept the community in the first months of the war, when everybody was told that there was hospital full wounded sailors in the Brooklyn Navy Yard. No one could be found who had actually seen the wounded sailors, but everybody knew somebody who had. It was always just one person removed from the teller of the tale. It was impossible to deny the story because there was nothing inherently improbable in it; the only thing the matter with the story was that it was not true. But the story, companied by detailed descriptions of defeats at sea, of mutinies on warships and troopships, of mutinies of whole regiments, created near-panie among the people and did great harm to the national morale. Just that thing is being deliberately aimed the Communists. A few rumors, few crazy speeches on street corners, an appeal to frantic peowho see their life's savings swept away, and the mischief done. And this leads directly to consideration of of the most interesting facts in modern life. If every depositor in every bank simultaneously demanded his money back there would be complete collapse. There would be disaster. The fact that there is no such disaster is due to the existence of credit. The banks receive money for deposit in checking and savings accounts and they promise their clients that the money is always at their disposal. Then they take the money and employ it in ways that bring returns to their of course to themselves. That is the business of banking.
FAITH AND CONFIDENCE Every business man and private citizen has faith and confidence in his bank because he believes that whenever he wants his money he can get it. And because he believes he can get it he doesn't ask for it. And because he doesn't ask for it the bank has it to employ in ways that deemed proper. When City Trust Company collapses business men know what it is the result of and they act accordingly. But when sudden seize numbers of people misled by lying rumors, more difficult situation to handle. For even if it is possible to get the person who starts such rumors, and even he admits that he had nothing to base his rumors upon, he might very well say, believed And then what can you Punish person for circulating false information? Then, as Hamlet said, who of us would 'scape whipping? Banks are sound largely because we believe them to be sound. We know that there are laws protecting our interests and that, generally speaking, the laws honestly administered. We have many laws protecting depositors, policyholders in insurance companies, stockholders utility companies. We have had evil experiences the past, and our laws are result of the scandals disclosed in 1905 and thereabouts. Even with the laws as they are there can be grave abuses; dishonest bankers can tamper with corruptible officials, has happened at least once in recent years. There are laws that protect people engaged foreign exchange, but it is significant that the business generally goes on without the need of the protection of laws. There are always and petty men ready to sue and go to court on the slightest but generally speaking, men of large affairs know that when they agree to something over eup coffee or friendly office chat their word good. They may afterward put into writing, but pledged word is enough. Householders call up dealers on the telephone and Legally, no contract has been made. Actually, both parties trust each other and the transaction through. goes The business world built upon faith, for there is after all no substitute for faith in one's pledged word. Without faith the whole would structure collapse. With faith men trust each other. There are, of course, many things in our banks that should be looked into soberly. There should be no lying on the part of those on one side. The people are entitled to the truth. But those who liberately destroy faith of by doing actually create the distress out of nothing all, fall about low as human beings can fall.
20.
December 26, 1930
Times Union
Brooklyn, NY
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Article Text
The News WILLIAM
THE BEST POLICY the closing the doors the branches New York our curious Communist movement began an entirely new activity. It is reported that Communist orators have stationed themselves in front of the branches when depositors assembled in long lines to reclaim what they could of their deposits, harangued the crowds the evil deeds of the bankers. What possible connection there is between the troubles of the bank in question and the Soviet Union that the orators call upon their hearers to "defend" not quite clear. What on earth the local Communist party knows about banking in any form has not yet developed. But the peculiar incident has veloped something new in plain and fancy tating." It appear that Communists are deliberately working up certain banks to attack. There would be no them here, but it fact that they point naming have mentioned several name and have caused embarrassment. People have been called them acute on the telephone by strangers and told that the and Shore Dinner National Bank close its doors. Stories have been deliberabout to that the Corn, Rye and Scotch Trust ately spread Company is in difficulties.
EVIL RUMORS
Rumors of that kind spread with incredible rapidity. People have no time, and do not care to the No one would tell them the investigate rumors. truth, anyway, if the bank actually were in danger. Each one thinks (quite properly) of his own bitterly money, the few hundreds or thousands he has accumulated by self denial in order to have money for emergencies like illness, for son's education, for needed vacation. And each goes down quietly to withdraw his money thinking, also quite properly, of his own interests before the general interest of the bank the public. It so easy to start rumor of that kind; it easy to start run on any bank. In piping times of prosperity when banks like the City Trust Company of odoriferous memory fail it enough demonstrate that it is because of the rascality of faithless But when bank fails in the midst of period of depression it is easier to believe the worst than not to. Many will recall the curious rumors that swept the community in the first months of the war, when everybody was told that there was hospital full of wounded sailors in the Brooklyn Navy Yard. No one could be found who had actually seen the wounded sailors, but everybody knew somebody had. was always just one person removed from the teller of the tale. It was impossible to deny the because there nothing inherently imstory was probable in it; the only thing the matter with the that not true. But the story, acstory was was companied by detailed descriptions of defeats at of mutinies on warships and troopships, of mutinies of whole regiments, created among the people and did great harm the national morale. Just that thing is being deliberately aimed at by the Communists. A few rumors, few crazy speeches on street corners, an appeal to frantic peosee their life's savings swept away, and the mischief done. And this leads directly to consideration of one of the most interesting facts in modern life. If every depositor in every bank simultaneously manded his money back there would be complete collapse. There would be disaster. The fact that there is no such disaster due to the existence of credit. The banks receive money for deposit in checking and savings accounts and they promise their clients that the money is always at their disposal. Then they take the money and employ it in ways that bring returns to their of course to themselves. That is the business of banking.
FAITH AND CONFIDENCE
Every business man and private citizen has faith and confidence in his bank because he believes that whenever he wants his money he can get it. And because he believes he can it he doesn't ask for it. And because he doesn't ask for it the bank has it to employ in ways that deemed proper. When City Trust Company collapses business men know what it is the result of and they act acBut when sudden panies seize numbers cordingly. of people misled by lying rumors, it more difficult situation to handle. For even if it is possible to get the person who starts such rumors, and even if he admits that he had nothing to base his rumors upon, he might very well say, believed And then what can you do? Punish person for circulating false information? Then, as Hamlet said, who of us would 'scape whipping? Banks are sound largely because we believe them to be sound. We know that there are laws protectand that, generally speaking, the ing our interests laws are honestly administered. We have many laws protecting depositors, policyholders in insurance companies, stockholders in utility companies. We have had evil experiences the past, and laws are result of the scandals disclosed in 1905 and thereabouts. Even with the laws as they are there can be grave abuses; dishonest bankers can tamper with corruptible officials, has happened at least once in recent years. There are laws that protect people engaged in foreign exchange, but significant that the busiwithout the need of the proness generally goes on tection of laws. There are always and petty men ready to sue and go to court on the slightest technicality, but generally speaking, men of large affairs know that when they agree to something in office chat their over cup coffee or friendly word good. They may afterward put into writing, but pledged word is enough. Householders call up dealers on the telephone and order goods. Legally, no contract has been made. Actually, both parties trust each other and the transaction goes through. world built for there The business is upon after all no substitute for faith in one's pledged faith the whole structure would word. Without collapse. With faith men each other. There are, of course, many things in our banks should looked into soberly. There should that be be no lying the part of those on one side. The entitled to the truth. But those who the faith of by liberately destroy doing actually create the distress out of nothing human beings fall. fall about low as
21.
January 3, 1931
Kennebec Journal
Augusta, ME
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State Bank Head Bribe Guilty Taking
New York, Jan. Warder, former state superintendent banks, must five 10 years in Sing Sing prison for cepting bribe, the appellate vision the court today in affirming his conviction. More than year ago Warder convicted of accepting $10,000 keep bank from over the books of the City Trust Company, which failed in February, 1929, for more than All the appellate justices concurred opinion today. for the would carried to the court appeals. Warder had held various public offices for more than 30 years when City Trust Company collapse loosed cloud of scandal that volved number public figures, including General Judge Francis Mancuso, who resigned during the ensuing The revealed that Warder allegedly been $136,000 for "favors" to the bank.
22.
January 11, 1931
Brooklyn Eagle
Brooklyn, NY
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Warder Was Wrong by Nearly Two Years On Closing of City Trust Co. 'Incident'
Boasted That Case Was 'Over' and it Will be 'Over' for Him Next Tuesday When He
By FRANK G. HOLMES
When former Banking Superintendent Frank H. Warder. swaggering and confident, announced with smile of smug satisfaction on March 19. 1929, that the $5,000,000 collapse of the City Trust Company was "closed incident" so far as he was concerned he guessed wrong by one year and ten months. The "incident" will not be closed for Warder until next Tuesday, when he scheduled to begin serving five to ten-year term in Sing Sing for accepting $10,000 bribe from the late M Ferrari. president of the looted bank.
Made Fatal Mistake
The cocksure Warder made tal mistake when made his "closed incident' The Eagle at once accepted the implied challenge and for 36 consecutive days waged vigorous campaign pry off the lid of secrecy with which Warder had veiled the bank looting and to bring the guilty justice While hammering away for offiaction which one. here or Albany. seemed disposed to take. the Eagle revealed day by day the hidden. sinister secrets of the plunOn April 1929. the Eagle published exclusively that Warder had failed to examine the bank for more than year violation of the banking law which requires two examinations each year. This the the examinations in consideration of $10,000 which he was tried and convicted although nine other indictments were returned against him.
Other Indictments Follow Thus the March 19. 1929. marked beginning instead of an as Warder had fatuously believed. From that beginning came indictments against score of persons connected in one way or the other with the bank. the resignation Francis Mancuso. the bank's chairman, from the General Sessions Bench: his indictment. subsequently quashed as which has been appealed by the office District Attorney in and half dozen trials But of all those indicted. Warder the only one who has been convicted the only one who has been brought justice to the end the trail which leads to Sing Sing.
Long. Painful Trail
It was long. painful trail. with Warder's counsel. James Cuff. battling every inch of the way Cuff and the astute Max D. Steuer exhausted every legal resource at their command to stave off the day of Through the delays incident to appeals and failure of District Attorney Crain's office prepare their appeal brief until months after was due, Warder has managed to stay of prison for more than year and three months after his conviction. But Judge Benjamin Cardozo ended this period of grace last Friday when he refused Warder the privilege carrying his case to the Court of Appeals
Becomes Tragedy The dark City Trust drama which Ferrari played the role of financial Machiavelli and Warder that of his highly paid servitor came tragic end when Ferrari died suddenly Warder and his associates in the bank were After an conference at which futile attempts were made to have some other institution take over the bank. Warder closed on 1929. with the brief statement that its capital and surplus had been impaired But Warder remained mum clam when persistent inquiry was made to the bank failed. for much failed, and who was responsible Rumors afloat bad loans loans to directors violation of law politicians. nothing falsification records All while Warder was working frantically get some banking group to take over the stitution and thus put an end to further inquiry Then came his nouncement that banking group been formed for this purpose which would be knowl. as the Mutual Trust Company. was in connection with this announcement that he mentioned the crash as "closed incident.' Stockholders and depositors protective committees had been formed and under the constantly increasing pressure of the newspaper campaign Warder resigned on April 22. 1929 But even then failed read gright the handwriting on the wall Confident that resignation coming on top of the formation Mutual Trust group. would end further inquiry, he boasted There has been some clamor in one newspapers. The articles published may been tional. but they did not help the unfortunate depositors, who were my concern am gratified that, notwithstanding the culties of the situation, have to render real service unfortunate matter and take this opportunity thank the construcpress of this city for its operation.
Lehman Acts Two days later came the news that Warder preparing for Europe Governor Roosevelt had consistently refused demands to appoint Moreland Commissioner, was in Warm Springs,
23.
May 18, 1932
Times Union
Brooklyn, NY
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LEHMAN, TESTIFY FOR BRODERICK
Alfred E. Smith, Charles S. Whitman Called by Defense as Character Witnesses.
Two Governors and Herbert Lehman, present acting Governor, witnesses today the trial of Joseph Broderick, State Superintendent of Banks, is on trial for neglect of duty for his delay in closing the Bank of United States. Alfred E. Smith and Charles S. Whitman were the former Chief Executives of the State who testified character witnesses in Broderick behalf. Mr. Smith was the first of the two called. general laugh, in he ticipated, resulted when Judge Donnellan, appointee the former Governor, pointed out that he testifying without having given his name.
Lacks Banking Knowledge moment later Mr. Smith, still receiving messages for recent radio which outlined program for nomic of United States, he not Mr. Smith said he had heard Broderick's reputation for honesty, integrity and probity referred and that he be familiar with his reputation banker," Conboy, counsel to Broderick, asked. have personal understand banking, Mr. Smith said. have heard the highest He George president the Trust Company former State Superintendent Banks, followed Mr. Smtih the stand character witness.
Both Praise Defendant Both gave accused official high praise for his honesty, rity and reputation in the banking community. Mr. Lehman testified both as factual After testifying that he had known the defendant for 25 years, Lehman told participating the effort to merge the bank with another institution during November December, hour effort Dec. day before bank closed by Broderick, Lehman "On that talked to GoverGeorge Harrison, the FedReserve Bank of New York, three separate also with the bankers who were effect merger the bank. about that night, hours before the bank was taken over Broderick, Governor Harrison told When questioned regardreputation, Mr. said he regarded devoted, conscienand public serobjections of Max Steuer, special prosecutor, sustained Donnellan, Mr. said Broderick was "very highly regarded."
Lehman On Mr. Steuer, garding the which had the reorganizathe City Trust Company. the the bankers that occasion con-
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