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Paris-Berlin Negotiations Proceeding
Herriot and Von Papen Attack Problems in Friendly Conference at Lausanne
Lausanne, Switzerland, June negotiations post-war finances and armaments began here today in most friendly atmosphere, but there was no evidence that an agreement was In Edouard Herriot the French premier, who conversation with Chancellor Franz Von Papen Germany, up paraphrase: Die Luft Kuehl elt nicht. air is cool but it not getting After the private associates and advisors were called in and another conversation of hour and half sued. Then the two statesmen the conference room arm-in-arm. Compromise Seems Aim. The ultimate aim appeared to be economic proposals advanced both sides, the chief problem to discover each can go. This apparently led to the subby Schwerin von Krosigk, the German minister detailed explanation the bad state of German finances Belgians outlined their plan gigantic man public utility trust proposed to Germans yesterday Meanwhile, there were no developments Chancellor von Papen's startling scheme for military alliance, since plan was only privately and has been given no formal in the recognition that would put records. propose that we distribute this cream' and if was the 'cream' there was very little hopes of reopening the bank on what was left Mr. Robinson stated that evidently Mr. Holden's petition had been prepared with great care, that he had no criticism to make of and that was step in the right direction.
Would Change Banking Law. A prediction that the next General Assembly will intervene in the banking situation also was ventured by Mr. Holden, who said that if he lives and has any influence ne intends to work for laws which will end banks carrying joint commercial and savings department After that might aided decision by referring the involved referee former Supreme Court Justice John Beach, Mr. Holden closed with the remark that he the stockholders of the bank, he not antagonistic to Mr Hewes Assistant Attorney Harold said his closed bank and been close bankers and those with the institution since receivership began declared he convinced that savings department could reorganized and that no concrete plan had been put forward. The dispute over the future of the savings marked upon Mr in prepared He said that interested seem agree would wise plan. legally possible, have bank take over commercial He urged that the savings depositors be given an opportunity express on be an attempt to the savings department or whether reshould The Mr. Hewe's Judge Ells which read before crowded is produced below Mr. Hewes An authorized Committee of the Stockholders and an authorized Committee of the Directors of The City Bank and Trust at this per the the Saving the bank for the sole reason that their opinion such distribution will materially injure the possibility effecting the savings It has been proven by this country that depositors closed banks are able secure payment their quickly and with less loss of their bank than through any form liquidation cepting only sale for cash of the their real So far the are receiver has no and believes that un likely that an at figure what hoped the assets prove worth At therefore, only two alternatives facing savings department are, liquidation in one form another reorganization: and as between choices. parties cated are in attempting to bring ganization rather liquidation While the receiver under no statutory other interest himself the matter reorganization. he has accepted the responsibility simply because he this him no many the of the are in great need and several committees and ceiver know this. as between cent and the indefinite of the balance on the one hand. and deferring dend now coupled possible reorganization would the the of the Now that banking conditions have aparently settled down. formed deavor provide fund for the making of loans the securiof savings books in needy cases. pending the conclusion efforts effect and hoped that an along this line may shortly be made Want Reorganization. of opinion are inevito the proper program for depositors. The stockholders' committee. which appointed pursuant to adopted adjourned meeting the stockholders for the purpose representing their interest in the receivership. composed of Charles B. Cook. vice and general manager of Royal Company as chairman. Isidore Wise of Smith & Company, John Pilgard Pilgard Company. George Ford of the Hartford Market and Fred former chairof the board of this bank, and are the opinion the best of deposiwill served by effect of the department, and for that reason opposed any dissipation resources of that department the present be that in the plans which been agreed present stockholders the City Bank would not seem any interest savings and. therefore. the interest of these gentlemen matter concern for by the closing for purpose cooperating consists LeRoy Campbell former President and Campbell the and Power Harrison Bertram the Rossia Insur and John Porter retired. extent been possible the same general opinion as and fect believe that the course pursue attempt zation Savings Department for the above. Desire Liquidation. The Depositors' which H. H. Conland, publisher of The Hartford Courant, is Chairman, and Benjamin Haas of B. Haas Company, B. M. the Savings Department should be liquidated in one another therefore, distribution of cash at Committee volunfrom the and except to extent that they themselves, may also act for certain others, do not represent strictly the body of deposithan the saying this there thought miniReceiver desires to pecially acknowledge his deep appreciation the untiring efforts the Chairman, Mr. Conland, and Mr. Holden, the depositors along the reThis analysis is presented simply inform Court as to the opinions here. both for against the mofor dividend. Deficit Is $972,000. In conside whether not dividend should be paid and suggestion the petition the court, present data the briefly comparative January and the date of his On Janu ary the basis of the appraisal and subject and there excess assets liabilities the Comand the Department The position two leaving consideration departmental accounts appraised values showed excess the deficit the Departaccounts because the many unsettled law relating these adjustments, the majority which expected be soon Superior Court and the Supreme These questions adjustments set-offs deposits one partment assets other department, allocation of exbetween departments, etc. There appear to probable net debt not large amount Savings Department the Commercial artment. Disregarding interdefigures, the essential reason for the decrease in the Savdeficit is because the addition income of department, of which has expended assets and the decrease liabilities without decrease its assets due the savings deposits pay debts to Commercial Department. The essential reason for the decrease the Commercial surplus the decrease in its assets without decrease in use the payment of debts owing to the Commercial Department through the use of in the Savings Department. the two departments on the basis indicated. that is, omitting interartmental and using appraised values, are attached. The cash on hand and in banks in the Savings Department Receivership $104,000. The entire cost of the operation the bank to date has been from Commercial Department come. income all sources, than income the Savings Department, has $111,000.00. The total cost of the operation of the same period has been including unusual items appraisers' Receiver's fee, and Receiver's counsel fee. In other words. the cost the Receiall paid date has than the income Commercial Department. expenses have been the ones the bank with of sources, have included salaries, insurance. heat postage, stationThe paid May has aged about 45. the of closing there were about 90. These and women have been working for wages varying upward from they had been receivshown splendid loyalty the institution and worked nights and Sunextra compensation wonderful has greatly facilitated the Receiver's work and saved much money for the depositors. Income $282,000. The income of the Savings Department to June 18 has been $282,000 against which $16.00 of exhave The reason expenses have been paid out the Savings Department come because already pointed that the must have the proper allocation of expenses necessary be made No has made the preceding figures for liabilities the shape claims filed to June the Renot passed upon that the total the allowed claims but this figure The appraised figures herein referred present an accurate picthe bank, out of conmarket bonds stocks the Savings Desubstantially real loss has realized to date any the Reorganization Delayed. Having set out the facts to the the bank, question whether not there sufficiently reasonable pectation reorganization warrant the deferring of the payment of dividend this There are doubtless number depositors stockholders who wonder definite ment in regard to the proposed has not been made before this. number of factors have entered into what might some There reasons why the matter crystallized now First all, nothing possible the appraisal of the assets bank had been completed. Next. unparalleled shrinkage in the value stocks bonds around June 1st, the condition affairs only in this country made impossible proceed with any plans which must needs stabilized there been and are, legal which have not been settled against the bank and the relations the Savings Departments which made impossito determine exactly what the financial position two departments say, sufficiently accurate rant with program. Again, has taken considerable length time for various Committees and others interested in the City Bank come to an agreement Further. has until after the had for the filing claims, June Nevertheless, since January 7th, the matter has ceived constant study and attention everyone concerned. number have considered, and out the wealth suggestions, has been reached follows: All interested parties seem to agree that the City Bank cannot organize separate institution previously that to effect reorganization order of such step is legally possible, definitely separate the two Departments each against other: having effected can done, attempt made prothe taking Commercial Department assets and liabilities by another On points there be comwhat shall with the Savings Departthe there divergence views. The Committee the ings should liquidatthe Stockholders Committee. and the opportunity should be to depositors the Department not they prefer and have their claim assumed going bank rather than participation in liquidation.
Would Sell Stocks. After the separation, this done, there would appear to be no financial interest whatever in the Assetss the Savings Department except of Savings depositors the belief of the persons an attempt to organize the Savings that can be upon two that tially the should agree buy stock the Bank the their deposits, paying for the same charging their and 2nd, that all the depositors should out their stated these two results be obtained. the opinion of the aforeand Savings Bank could be created operated provided proper management The only alternative other than sale, which has made, and the and the are the opinion on vital question this the sound and proper handle to allow positors, parties interested, decide for themselves. careful study has been made of the position of the Savings Department were organized Savings and would seem that money now on hand and considering the fact stocks and bonds would furnish the cash as would the collateral loans marketable curities back of would ample funds for sound in addition the new bank could from the Finance Corand pledge loans collateral. would have in hand $5,000,000 more liquid against deposit liability of 000 With bank this position upon the lapse reasonable length of after to be Board Directors and officers depositors had confidence waiver allow ready withdrawal and when This has been the general experience the cases which Receiver has personal experience There would seem comparison from the between the getting all their year. getting from liquidation admittedly. will run on for many
Would Get New Deposits. Of this would depend upon whether posits, but it seems to be reason- able inference that the bank starts 14,000 depositors who are and have confidence in their own bank and its management. the bank would receive new deposits, and as and when the business became should be possible to allow the withdrawal funds every positor money. the bank could not stand nor could other not reasonable to suppose that such contingency would provided the bank opened the almost of its The sition that dividend were clared at time. the reorganization Savings Department would but certainly cannot admit of question that the withdrawal of this much would reorand probably destroy the The present status therefore. of the reorganization plans is somefollows: There now pending in the Supreme question part State deposits this bank There question whether necessary transfer from the Savings Department to the Departcertain assets transferred the the Department in 1931 the shrinkage stocks and in the Savings Department. There also pending in Court number miscellaneous questions involving relahoped that be the middle true finanpicture the two departments and the court for decree separating the two partments and fixing the terms of separation As these questions are will and decision ited Thereafter. every effort will develop the Commercial Department earliest date. by that time security had those terested the the Savings Department would proceed the question up to the put positors for In the thereand because that possible loans the Receiver submits that the application should be
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