15982. Harriman National Bank (New York, NY)

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 9955
Charter Number: 9955
Start Date: March 13, 1933
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 1c618e9b

Response Measures

None

Description

The Harriman National Bank did not reopen with other New York members on March 13, 1933; a conservator was placed in charge and the institution remained closed and subject to conservatorship/receivership and criminal prosecution. There is reporting of withdrawals/declines in deposits citywide, and officials repeatedly cite fear of a run as reason for delaying prosecution, but the articles do not describe a discrete successful run that kept the bank open then suspended it. Therefore this is classified as a suspension that resulted in permanent closure/receivership.

Events (3)

1. March 13, 1933 Receivership

Newspaper Excerpt: The bank ... was placed in the hands of Henry E. Cooper, its presi(d)ent ... conservator present to take charge of affairs; closed Harriman National Bank, New York, conservator ... was distributed in stock subscriptions for reorganization of closed banks (June). (reports indicate conservator/receiver control after the bank failed to open).
Source: newspapers

2. March 13, 1933 Suspension

Cause: Government Action
Cause Details: Bank was not allowed to reopen under the emergency banking plan; a conservator (federal conservator) was placed to take charge of the bank's affairs amid regulatory action and concern over irregularities in the bank's books.
Newspaper Excerpt: The Harriman National Bank did not open for business and at the bank it was stated a conservator was present to take charge of the bank's affairs.
Source: newspapers

3. March 25, 1933 Other

Newspaper Excerpt: Awalt explains Harriman delay ... the examiner reported ... the officials were acting on the premise that grand jury proceedings and accompanying publicity would start a run on the Harriman bank. With his recommendation the Department of Justice did halt proceedings temporarily since the statute of limitations was not involved in the case and action could be started at any time. (explanation of prosecution delay and alleged irregularities).
Source: newspapers

Newspaper Articles (21)

1. March 13, 1933 The Emporia Gazette Emporia, KS

Article from The Emporia Gazette, March 13, 1933

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Unrest Normal Business Report52 Institutions in New York, Nation's ter Operation. IN 12 CITIES TODAY Others in 250 Cities With proved Clearing House ciations Will TuesReopen day. Roosevelt Calls for Courage and Confidence Financial System Be stored. New March ing the nation's financial capital resumed today when 52 of the local members of the federal system. quietly resumed bus!ness, together with state banks, private banks and metropolitan savings banks. The last named ordered state department of $25 weekly for depositor. The banks reported brisk busiin new deposits. Several banks found their receivtellers' windows ronized. Uptown institution were busy taking cash accumulated checks for assistance sent the main Withdrawsaid to be small foreign exchange dealings, under official limitations, found dollar strong in terms of pound European gold bankers said. degree confidence abroad to this bring gold the York federal reserve bank. Indications this afternoon Saturday's receipts would The Harriman National bank, federal reserve did not open for business and the bank stated present to take charge of the bank's affairs. of trading the New York stock exchange various markets held pending complete banking elsewhere system outlined President Roosevelt. trucks delivered new currency to some of the banks, but there seemed be immediate demand any extraordinary funds. Some officials said they thought the currency they already had hand would take care present needs. In the first hour there was no evidence that any fort was being made withdraw sums for hoarding. of the first customers to the Manufacturers Trust company, woman about who assisted teller's window her She cash pension check value the check in Some of banks throughout city were busy attending the wants small positors and who wanted cash either personal expenses business purchases. activThe said been about for Monday morning. The National bank the New York Clearing House association and its latest clearing house statement showed capital $2,000,000: surplus and net mand deposits. and time deposits, In 346 institutions in the 12 federal cities carried norbusiness during the first day the President's 3-day reopening Foreign markets resumed trading the dollar. The tone firm. New York stock pected to resume trading the within In addition to the institutions federal cities. banks Iowa open under the regulations of the of Boston banks outside the city proper also gold prohibited and hoarders had four days which return their metal to the federal reserve. Plenty of Currency March normal of money exchange order for America today the of President that have provided machinery restore our financial up to you to support and make told the nation. banks will take care of all Plenty currency based on was the tions permitted resume today the 12 federal banks he assured. "Confidence and courage the essentials success our President people must have faith: you must stampeded rumors Let us unite in banishing your problem no than mine. Together So under license of the banks the located the federal reserve nancial reservoirs had permission tinued the gold supply took all possible prevent by Explains

2. March 13, 1933 Evening Star Washington, DC

Article from Evening Star, March 13, 1933

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These thrift uncertain early today. departments correspond to savings banks and are operated in about the same way. In some of the banks no limit was placed on thrift withdrawais for legitimate purposes. Officials of some of the other institutions, however, thought that a $25 withdrawal limit might be inaugurated, the same as the rule applied to savings banks. The special committee which has been handling New York Stock Exchange affairs since trading was suspended on March 4, modified its prohibitions against member firms' activities so as to permit them to handle subscriptions, either for themselves or customers, for the forthcoming issue of United States Government securities. No Extra Guards on Duty. There was no excitement visible ix. the large New York banks when the reopened at 9 a.m., on a virtual "business-as-usual" basis. There were some straggling deposits made and several moderate withdrawals. No extra guards were on duty and the majority of the institutions expected no great rush. Armored trucks delivered new currency to some of the banks, but there seemed to be no immediate demand for any extraordinary funds. Some officials said they thought the currency they already had on hand would take care of present needs. In the first hour there was no evidence that any effort was being made to withdraw sums for hoarding. One of the first customers to appear at the Manufacturers' Trust Co. was a woman of about 80 years of age, who was assisted to the teller's window by her son. She had come to cash a small old-age pension check. There was no difficulty in presenting her with the face value of the check in currency. Some of numerous branch banks throughout the city were busy attending to the wants of small depositors and merchants who wanted cash either for personal expenses or for business purchases. The Harriman National Bank did not open for business and at the bank it was stated a conservator was present to take charge of the bank's affairs. Provision for a conservator to take charge of banks not immediately reopening under the plan announced by President Roosevelt was contained in the emergency banking bill passed by Congress last week. The Harriman National is a member of the New York Clearing House Association and its latest clearing house statement showed capital of $2,000,000; surplus and undivided profits, $941,000; net demand deposits, $19,577,000, and time deposits, $5,102,000. Henry W. Bull, senior partner in the New York Stock Exchange firm of Harriman & Co., said in a statement today that his company had no affiliation with the Harriman National Bank. The firm has branch offices in Washington, Wilmington, Baltimore, Providence and Paterson, N. J. The local clearing house expected to assume a normal operating status at 5 o'clock this afternoon when the night clerical staff was to start the usual check exchanges. RICHMOND BANKS OPEN.

3. March 13, 1933 The Central New Jersey Home News New Brunswick, NJ

Article from The Central New Jersey Home News, March 13, 1933

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HARRIMAN BANK REMAINS CLOSED Conservator Present to Manage Affairs of New York House The Associated Press) NEW YORK, March Harriman National Bank did today when at the stated take charge of the affairs. conservator charge banks Immediunder plan announced by President Rooseemerpassed ConThe National Bank member New ClearHouse and its latest Clearing House showed capital $2,000,000; and undivided profits, $941,$19,577.today that the private Harriman Company, which with the HarriNational Bank, was opening business usual today.

4. March 13, 1933 Biddeford-Saco Journal Biddeford, ME

Article from Biddeford-Saco Journal, March 13, 1933

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Runs Harriman Bank New York, March The Harriman National bank did open business today when other federal reserve members resumed operations, and the bank stated conservator present take charge of the affairs. Provisioin conservator to take charge banks immediately under the plan President Roosevelt in the emergency banking bill passed by congress last The Harriman National bank member the York Clearing House association its clearing house statement showed capital of and undivided profits, $941,demand deposits, and time deposits, 102,000. announced today that the private bank of Brown BrothHarriman and company, which has no with the National bank opening for business as usual day. BODGE Edward Bodge, 71, for 25 years of the box shop Bar Mills, died Friday and resided Bar Mills years. He member Buxton lodge, Saco River grange. His wife, Bodge: brother, Frank Bodge of and sister, Mrs. Starr New London, survive him.

5. March 19, 1933 Evening Star Washington, DC

Article from Evening Star, March 19, 1933

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CLEARING HOUSE REPORT REFLECTS WITHDRAWALS New York Bank Deposits Show Decline Due to Large Payouts of Funds. By the Associated Press. NEW YORK, March 18.-The weekly statement of the New York Clearing House, the first issued since March 4, today disclosed a considerable decline in net demand deposits of members, reflecting withdrawals prior to the lifting of banking restrictions on Monday. Because of the order against the reopening of the Harriman National Bank, this institution was eliminated from the statement. Net demand deposits aggregated $4,912,485,000, against $5,463,124,000 on March 4. Time deposits totaled $717,081,000, against $752,449,000 two weeks ago. Surplus and undivided profits were off slightly at $872,130,400. Changes in the statement follow: Total surplus and undivided profits, $941,000 (decrease) ; total net demand deposits (average), $550,279,000 (decrease) ; time deposits (average), $35,268,000 (decrease) ; clearings week ending today, $3,293,831,129; clearings week ending March 4 (x), $3,492,900,945. (x) Five days.

6. March 25, 1933 Evening Star Washington, DC

Article from Evening Star, March 25, 1933

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AWALT EXPLAINS HARRIMAN DELAY Says Bank Examiner Held Up Report Because of Fear of a Run. F. G. Awalt, acting controller of the currency, today explained that the delay in forwarding to the Department of Justice a bank examiner's report on alleged irregularities at the Harriman National Bank in New York was due to the critical banking situation then existing. Tried to Aid Bank. Questioned regarding a story in yesJerday's Star disclosing that the Treasury delayed from July until December in calling the case to the attention of the Justice Department, Awalt said the bank examiner endeavored for five months to strengthen the bank's condition before prosecution was instituted against Joseph W. Harriman, head of the bank. Senators previously had threatened an investigation of the delay, laying responsibility on the Department of Justice. Awalt, explaining the Treasury's point In the affair, said the examiner reported first to the department on July 25, 1932, that the bank's affairs were in bad con(dition, but he asked time to make it more liquid before any prosecution was begun. Awalt said John W. Pole, the controller at that time, had not seen the letter from the examiner, as it was merely one of thousands coming to the office. Sought Co-Operation. The examiner was said to have continued his efforts to put the bank's affairs in shape, "hoping to get cooperation from Harriman," until December 23. On that date he presented This formal report and Awalt ordered it sent immediately to the Department of Justice. On December 30. Awalt said, Henry E. Cooper, new president of the bank. and its vice president talked to Awalt and asked more time to get the bank liquid. "That's up to the Department of Justice," Awalt said he told them. They replied they had sought his recommendation to the Justice Department and upon that basis Awalt said he talked to Nugent Dodds, the Assistant Attorney General in charge of the criminal division, and told him he "didn't want him (Dodds) to do anything inconsistent with the aims of justice. Awalt added that he suggested the depositors would profit by holding off prosecution temporarily. Bank Run Feared. Throughout this period, the acting controller pointed out, the officials were acting on the premise that grand jury proceedings and accompanying publicity would start a run on the Harriman bank. Awalt said that with his recommendation the Department of Justice did halt proceedings temporarily since the statute of limitations was not involved in the case and action could be started at any time. The Justice Department said today that William D. Mitchell, Attorney General in the Hoover administration, knew nothing of the Harriman case, but that it was all handled by subordinates.

7. March 25, 1933 The Salt Lake Tribune Salt Lake City, UT

Article from The Salt Lake Tribune, March 25, 1933

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Committee Head Investigates Delay NEW YORK, March 24 (P)-Ferdinand counsel to the investigating ket practices, conferred today in United States Attorney George Medalie and announced afterward he expected to determine shortly wheth er three delay in the of Joseph W Harriman be came within the scope of the com mittee's inquiry Harriman was arrested last week charged with making false entries in of the Harriman National Bank and he then resigned The bank failed to open after the of recent and was placed the hands of Henry E. Cooper, its presias Daniel W. Blumenthal a lawyer to said he had been investigating the bank's affairs at the request 'substantial depositors, issued statement today calling for coopera tion with Cooper and saying he was "in position state that excellent prospect of the bank being taken its entirety by a strong

8. March 25, 1933 Evening star Washington, DC

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AWALT EXPLAINS HARRIMAN DELAY Says Bank Examiner Held Up Report Because of Fear of Run. G. Awalt, acting controller of the burrency, today explained that the delay in forwarding to the Department of Justice bank report on alleged irregularities at the Harriman National Bank in New York was due to the critical banking situation then existing. Tried to Aid Bank. Questioned regarding story in yesterday's Star that the Treasary from July until December calling the case to the attention of the Justice Awalt said the bank examiner endeavored for five months strengthen the bank's condition before instituted against Joseph W. Harriman, head of the Senators previously had threatened an investigation delay, sponsibility on the Department of JusAwalt, explaining the Treasury's point In the the examiner reported first to department on July 1932, that the bank's affairs were in bad dition, but he asked time to make more liquid before any begun. said W. Pole, that time, had not seen the letter from the as it was merely one of thousands coming to the office. Sought Co-Operation. The examiner said to continued efforts the bank's affairs "hoping to get operation from Harriman until December 23. On that date he presented this formal report and ordered sent immediately to the Department of On December 30. Awalt said. Henry Cooper, president of the bank. and its vice president talked to Awalt and asked more time to get the bank "That's up to the Department of Awalt said them. They replied they had sought his to the Justice Department and upon that basis Awalt said he talked to Nugent Dodds the Assistant Attorney General in charge the criminal division. and told him he want (Dodds) do anything inconsistent with the aims of justice. Awalt added that he suggested the depositors would profit by holding off prosecution temporarily. Bank Run Feared. Throughout this period, the acting controller pointed out, the officials were acting on the premise that grand jury proceedings and publicity start a run on the Harriman bank. said that with his tion the did halt temporarily since the statute of limitations was not involved in the case and action could be started any time. The Justice Department said today that William Mitchell, Attorney eral Hoover knew nothing of the Harriman case, but that was all handled by subordinates

9. April 13, 1933 Springfield Weekly Republican Springfield, MA

Article from Springfield Weekly Republican, April 13, 1933

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Higher Prices Are Expected To Quash Inflation Talk Hope For Improvement in This Direction Seen in Roosevelt's Accomplishments and in Retailers' Depleted of Harriman National to Repay Depositors in Full Seen Indication Bankers Have Washed Hands But Are Back Again New York, April 11-Stocks and wheat opened higher and in the early trading ran into selling. This action the part of both markets was to on the liking professional traders working higher prices. What is not wanted by experienced traders (now long and and fresh selling after professional traders keeps sound. Professional traders taken the long side of wheat and the stock market partly on technical market conditions, that belief markets partly on the country's improved position under Roosevelt's leadership, Jargely in expectations inflation. The judges here are confident there is basis higher wheat price the improved position that commodity and that there of room for improvement stock prices, as occurred in the late and early last year the the change fundamentals from the Lausanne agreement. Some in general trade, confined followed There was little no provement then basic goods because the country suffering from debts in creating production Washington, that time, continuing policy refueing take the bull by the horns, partly because of the approaching election. Hoover, the early tumn, adopted the tactics trying frighten voters into believing that things would happen not reelected. Reasons Given The best market judges here feel there is hope for higher stock prices the ground already plus retail the trade ahead likely follow that the late sumand early months of last year; that will be confined largely goods; improvement in retail trade and in the stock market continue until, was the markets are again confronted this time the being the on credit connected relief work already proposed and financed. As the best market judges here see it. much of the inflation talk inasmuch the government debt now stands close to against the low 000,000,000 recent years and the government budget unbalanced. felt that have done making inflation but that no bond for further work one sort for the simple that the bonds not marketed credit the money could not be construcspent could be raised. The feeling that this not out of felt that for higher curity before the problem government again faced; that security prices will squash the talk needed question but that in his There no inaugural Roosevelt bankers the front door into middle of the car tracks. Yesterday's news that the Harriman National bank, which member the New York Clearing House association, with the help the Trust company was to depositors in full going understood by mean the the front that March Roosevelt beginning the back Today howrealized from the news from not warranted. It now point realized the just Secretary to the Woodin expects the York banks to make good their writpledges help the Harriman out these tional bank pledges being made at the written the controller of the currency time asked keep his hands off the riman bank until the other House members out Harriman plain now the the money off the in full expectWoodin to come from the New ed York Clearing house banks. In the Good Book there story effect build to the sand; that house withstand the strains pected serve the desired time purpose must be built BARNUM.

10. April 28, 1933 Times Union Brooklyn, NY

Article from Times Union, April 28, 1933

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HARRIMAN PROBE DELAYED TO SAVE OTHER BIG BANKS Senate Sub-Committee Told Why Justice Department Put Off Prosecution. Washington, April 28.-The Senate sub-Committee, investigating the delay in prosecution of Harriman Bank officials was told today that the Department of Justice thought the delay "might save the crash of half dozen big banks. William H. Ramsey, Department of Justice Attorney, testified that the department thought it was rendering "public service" by delaying the prosecution. "We knew this man (Chairman Joseph R. Harriman) wasn't going to run away," he said, "and we thought we might save the crash of a half dozen banks. An Unusual Case "A great many people from all parts of the country were asking delay in bank cases so they might get on their feet and keep going.' Under questioning by Senator Neely, Dem., W. Va., Ramsey said that, although delays were granted often, the Harriman case was "unusual." He denied that Harriman's prominence had anything to do with it. Frank M. Parrish. chief of the Criminal Division of the Department of Justice, since last February, testified that the Treasury Department had warned there would be a "run on the bank," if Harriman were arrested. Feared to Make Arrest Parrich, said that the Comptrollers office had "specifically approved the delay." Parrish asserted that another feature of the delay was attributed to a New York Clearing House plan represented to the department as being prepared so that Harriman Bank depositors would not suffer a loss. "The arrest of Harriman," he said the Clearing House- warned. "would ruin the plan." Charging that apparent Justice Department "dilatoriness" in prosecution of the now closed Harriman National Bank of New York had resulted in substantial losses to investors, Senator Costigan, Dem., Col., today demanded a thorough investigation. "The whole episode," he said, ap. pears to be tainted with official dilatoriness as a consequence of which substantial losses have been suffered by depositors. Presumably the creditors of that bank would have protected themselves if officials diligence had promptly and properly advised them of fraudulent bank practices officially known and long concealed before action was taken." The charges which led to the investigation were made by District Attorney Medalie of New York, shortly after the Roosevelt inauguration.

11. April 28, 1933 Times Union Brooklyn, NY

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HARRIMAN PROBE DELAYED TO SAVE OTHER BIG BANKS Senate Sub-Committee Told Why Justice Department Put Off Prosecution. Washington, April 28.-The Senate sub-Committee, investigating the delay in prosecution of Harriman Bank officials was told today that the Department of Justice thought the delay "might save the crash of half dozen big banks." William H. Ramsey, Department of Justice Attorney, testified that the department thought it was rendering "public service" by delaying the prosecution. "We knew this man (Chairman Joseph R. wasn't going to run away," he said, "and we thought we might save the crash of a half dozen banks. An Unusual Case "A great many people from all parts of the country were asking delay in bank cases so they might get on their feet and keep going." Under questioning by Senator Neely, Dem., W. Va., Ramsey said that, although delays were granted often, the Harriman case was "unusual." He denied that Harriman's prominence had anything to do with it. Frank M. Parrish, chief of the Criminal Division of the Department of Justice, since last February, testified that the Treasury Department had warned there would be a "run on the bank," If Harriman were arrested. Feared to Make Arrest Parrich, said that the Comptrollers office had "specifically approved the delay." Parrish asserted that another feature of the delay was attributed to a New York Clearing House plan represented to the department as being prepared 80 that Harriman Bank depositors would not suffer a loss. "The arrest of Harriman," he said the Clearing House warned, "would ruin the plan." Charging that apparent Justice Department "dilatoriness" in prosecution of the now closed Harriman National Bank of New York had resulted in substantial losses to investors, Senator Costigan, Dem., Col., today demanded a thorough investigation. "The whole episode," he said, appears to be tainted with official dilatoriness as a consequence of which substantial losses have been suffered by depositors. Presumably the creditors of that bank would have protected themselves if officials diligence had promptly and properly advised them of fraudulent bank practices officially known and long concealed before action was taken." The charges which led to the investigation were made by District Attorney Medalie of New York, shortly after the Roosevelt inauguration.

12. April 28, 1933 Times Union Brooklyn, NY

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HARRIMAN PROBE DELAYED TO SAVE OTHER BIG BANKS Senate Sub-Committee Told Why Justice Department Put Off Prosecution. Washington, April 28.-The Sensub-Committee, investigating delay in prosecution of HarriBank officials was told today that the Department of Justice thought the delay "might save the crash of half dozen big banks." William H. Ramsey, Department Justice Attorney, testified that the department thought it was rendering "public service" by defaying the prosecution. "We knew this man (Chairman Joseph R. wasn't going run away," he said, "and we thought we might save the crash half dozen banks. An Unusual Case "A great many people from all parts of the country were asking delay in bank cases sd they might get on their feet and keep going." Under questioning by Senator Neely, Dem., W. Va., Ramsey said that, although delays were granted often, the Harriman case was "unusual." He denied that Harriman's prominence had anything to do with it. Frank M. Parrish, chief of the Criminal Division of the Department of Justice, since last February, testified that the Treasury Department had warned there would be a "run on the bank," if Harriman were arrested. Feared to Make Arrest Parrich, said that the Comptrollers office had "specifically approved the delay." Parrish asserted that another feature of the delay was attributed to a New York Clearing House plan represented to the department as being prepared so that Harriman Bank depositors would not suffer a loss. "The arrest of Harriman," he said the Clearing House warned, "would ruin the plan." Charging that apparent Justice Department "dilatoriness" in prosecution of the now closed Harriman National Bank of New York had resulted in substantial losses to investors, Senator Costigan, Dem., Col., today demanded a thorough investigation. "The whole episode," he said, appears to be tainted with official dilatoriness as a consequence of which losses have been suffered by depositors. Presumably the creditors of that bank would have protected themselves If officials diligence had promptly and properly advised them of fraudulent bank practices officially known and long concealed before action was taken." The charges which led to the investigation were made by District Attorney Medalie of New York, shortly after the Roosevelt inauguration.

13. April 29, 1933 The Washington Herald Washington, DC

Article from The Washington Herald, April 29, 1933

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Was Bottled Up to Evidence Prevent Disastrous Run on Only Excuse Given Bank, Universal Service for the nine months' Blame pressing criminal charges in Joseph W. Harriman, deagainst head of the Harriman posed tional Bank of New was three Fed placed squarely upon eral Government agencies and the York Clearing before the Senate by Judiciary subcommittee. Responsibility for bottling evidence of the bank's books was laid tion of jointly to the Treasury Depart ment, the Comptroller's office, the of Justice and the Department clearing house by Frank M. Par rish and William H. Ramsey, partment of Justice attorneys. JUSTIFY DELAY The Justice Department officials, however, sought to justify the delay, declaring it was designed to prevent run on bank and save depositors from losses. They denied the de heavy ferred action came as result of the financial and social prominence Harriman, who was ar rested March Far from satisfied with the ex the summoned District Attorney George S. Medalie, of New York, who first disclosed the Awalt, acting comptroller the currency; Roberts, chief national bank examiner of New York, and Carl Francis, na tional bank examiner Ramsey testified the Depart ment of Justice received the first information regarding the bank on December 1932, when dated July from report the national bank examiner was from the Comptroller the Currency, showing irreguOn December 30, Ramsey said, officials of the Harriman Bank and the New York Clearing House conferred with former Attorney General Nugent Dodds and asked for delay in criminal action the ground that the on bank was to reorganized to protect depositors from "being wiped consequence Medalie was advised to delay prosecution temporarily.

14. May 3, 1933 The Columbus Telegram Columbus, NE

Article from The Columbus Telegram, May 3, 1933

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DEFALCATIONS National Bank Examiner Is Witness in Senate Probe of Prosecution Delay "PROTECTION" ALLEGED Washington, May Francis, national bank who discovered alleged false and defalcations the Harriman National bank of New York, today told senate committee vestigating delay prosecution officials that bank probably could pay out basis cents Francis made statement ing fire of questions from hostile senators who charged that delay since July prosecuting officers of the bank amounted protection of alleged thieves government The examiner told Senator Neely, dem., Va., that not to attribute all the difficulties of the bank to the misdeeds of its ficers because some the trouble due to business conditions." do you say the condition of the bank not due the rascality of these Neely demanded. knew thieves operating the knew after July Francis replied. "Didn't that disturb your peace asked Sen. Robinson, repn., Ind. knew the condition existed. but ceased after filed that my duty Francis replied. letter referred was his reThe to the United States district port New York and the attorney in chief bank examiner. that there had testified been and Neely asked benefit" of that tained Harriman, replithe former head of referring to bank now under indictment. steal more than "Then Robinson broken of stolen goods inquired Neely. been know no restitution far as the Franhas been made to had discussed with after examining and the latter had the bank's books transfers from depositors' told him been made after teleaccounts had with the phone conversations positors. believe that you Neely asked. you consider preposterFrancis replied. He about Harricondition the man's physical testified the banker aptime and sick but canpeared "slightly didly believe The inquiry why the justice from July and the treasury of this year 1932 until early spring of Harriman. prosecution Sue Clearing House Might May comptroller of Awalt, acting today told senate rency, federal conservator of that closed Harriman National bank have to sue the New York might Clearing House association to compel that organization comply with an alleged pledge to protect Harriman depositors 100 per cent against losses. Awalt told the committee the treasury and justice departments delayed Harriman alleged defalcations the assurance of clearing house that depositors would thought better start on the bank.

15. May 4, 1933 Daily News New York, NY

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HINT CLEARING HOUSE SUIT TO PAY HARRIMAN (By United Press) Washington, D. C., May 3.-F. G. Awalt, Acting Controller of the Currency, today told a Senate com- mittee that the Federal Conservator of the closed Harriman National Bank might have to sue the New York Clearing House Association to compel that organization to comply with a pledge to protect Harriman depositors 100 per cent. against losses. Carl C. Francis, national bank examiner, previously had estimated that the bank could pay off at approximately 65 cents on the dollar. Offer Caused Delay. Awalt told the committee that the Treasury and Justice Departments delayed prosecution of J. W. Harriman for alleged defalcations because, with the assurance of the Clearing House that depositors would be protected, it was thought better not to start a run on the bank. L. K. Roberts, chief bank examiner of New York who testified before Awalt, denied a charge made by Senator Neely (Dem., W. Va.), that "the Government and the Clearing House combined to protect the thieves of the Harriman bank at the expense of the depositors." The charge as "delightfully in- (Continued on page 7. col. 2)

16. May 10, 1933 The Evening Sun Baltimore, MD

Article from The Evening Sun, May 10, 1933

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POLE TELLS WHY HE DIDN'T PROBE HARRIMAN CASE Former Currency Comptroller Testifies At Senate Hearing SAYS CONSIDERED IT ROUTINE MATTER Declares RecommendDelay In Government Action By Frederick R. Barkley May presidents defaulting so during his four-year as Comptroller the Currency. John Pole today Senate Judiciary subcommittee that he felt that President Joseph W. Harriman's case in the incident the Harriman National Bank of New York was "no uncommon thing." The former Comptroller, who signed last September, later estimated number of presidents stole depositors' money during his tenure 100" in the 6,000 national banks under his supervision. Defends Delay On the stand morning the sought by authority learn the reasons for nine months' delay prosecuting HarriPole repeatedly insisted. ever, that he fully justified the public interest in delaying the veteran banker's "There question of the statute limitations running repeated several times, "and there no chance of any further defalcations, because moved authority in the bank Feared Results "On the other the report our discoveries the Justice Department and resulting publicity, probably have caused run, closing the bank and threatening grave confidence all banks in the critical situation then existing. Senators Arthur Robinson (Rep., and Neely (Dem., the three members of the made statements the texts for against bankers general the allegel laxity of Federal officials in prosecuting them. Satisfied With Course should had the crook rested once and promptly prosewould have been very wholesome influence.' might have caused bank runs the Pole responded. satisfied did the right and would again the same circumstances.' "What kind halo rested Harriman's head, that you let him scathed for nine months?" demanded Senator Neely. because the prominence and social standing of the Harriman family? Didn't you fear he China to escape "Looked Like Anyone Else" looked just else Pole retorted. "There On Page Column

17. June 17, 1933 The Waterbury Democrat Waterbury, CT

Article from The Waterbury Democrat, June 17, 1933

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Senate to Probe Down the Line (Continued from Page 1.) Three senators are engaged in inquiries prelimnary to a full ress investigation of interstate ackets, including the most recent f those developed by the underyorld-the "snatch," which means he busines of kidnaping men, wohen or children for ransom. Senator Copeland, dem, N. Y., is hairman of the racket investigaion. Copeland will obtain preIminary information in his own ity. New York. "We must determine first the nature of the interstate racket inustry," Copeland told the United Press. Senate investigation of the Har. iman National Bank failure will we resumed in New York June 26. The inquiry, suggested by Ferdiand Pecora, counsel in the sento stock market investigation. is directed toward discovering why nany months elapsed between disovery of alleged irregularities, and he closing of the bank and filing of charges against J. W. Harriman, ormer president and later chairnan of the board of the bank. Senators Black, dem, Ala, and are ocean early McKellar, inquiry dem, into Tenn, planning and air mail contracts. McKellar describes he air mail subsidies as tainted with corruption. A special senate committee has been summoned to meet Monday to prepare for resumption of the inestigation of the qualifications of Senator Overton, dem, La, to be a United States senator. This inuiry is considered to be directed at Senator Long. dem, La, whose proudest boast is that he is the DOSS of his state. Long appeared as counsel for Overton at hearconducted in Louisiana. The ngs charge against Overton is that he participated in a corrupt election. house has The. authorized receiverships judiciary inquiry with into committee special bankto reference ruptcy York. There have Chicago been many and com- New plaints against the "monopoly" of receiverships enjoyed by the Irving Trust company. of New York. House investigation also is proposed into the judicial conduct of Federal Judge Lowell of Boston. who recently refused to extradite to Virginia a negro charged with murder. Judge Lowell ruled that the negro would not receive a fair trial in Virginia because his race was ;barred from jury duty. His decision was reversed yesterday on appeal.

18. June 24, 1933 Evening Star Washington, DC

Article from Evening Star, June 24, 1933

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D. C. GETS $1,918,469 FOR ROAD BUILDING Army Asks Additional $2,707,856 to Repair Service Quarters Here. (Continued From First Page.) a reservation that it could require construction of roads desired by the United States railroad co-ordinator highway to provide service adequate "year-round in replacement of branch-line railroad service proposed to be abandoned." Designed to get as much manpower to work with pick and shovel as possible, the be that the maximum required regulations announced "it of will human used in lieu of machinery wherever labor be practicable and consistent with sound economy and public advantage." As another point in the program to see that as many unemployed as can be used are given jobs, the board ruled "no convict labor shall be employed and no materials manufactured or produced by convict labor shall be used on any project constructed board under decided, this act." Contracts, the shall minimum wage be the State determined prescribe by minimum highway rates, rates to shall departments, and the be announced in asking for bids for the construction. for all projects under this act a that Contracts shall contain administrative stipulation "except in executive, and supervisory positions, so far as practicable and feasible. no individual shall be permitted to work more than 30 hours in any week," the board went on. Exemptions Allowed. This requirement. it explained, would permit working time lost because of bad weather in one week to be made up in another. and permit a limitation of not more than 130 hours of work a month to be substituted for the 30-hour week requirement on projects in localities where there was not sufficient labor available. Neither of these requirements would hold in areas where work camps are remote and inaccessible and it is necessary to house and feed the labor, the board said, but this must be determined by the State highway departments and the Federal Public Roads Bureau, with a even more cases flat no stipulation employe may that work in these than 40 hours in one week. The board held that projects must be initiated by the States and submitted to it in the same manner as other Federal-aid highway projects, and of the distribution in the State of the funds allocated said "Not more than 50 per cent of the funds under this on the Federal-aid act apportioned shall be highway applied to any system to State projects outside of the corporate limits of municipalities: not less than 25 per cent of such funds shall be applied to projects on extensions of the Federal-aid highway system into and through municipalities, and not more than 25 per cent of such funds shall be applied to secondary or feeder roads until provision has been made for the satisfactory completion of at least 90 per cent of the initial limiting Federal-aid highway system in such State." R. F. C. Makes Report. With the works program and industrial and farm price-lifting pushing forward fast as possible, the Reconstruction Finance Corporation yesterday gave Congress a report for May showing a peak in that month for its relief allocations. They totaled around $500,000,000, including $300,000,000 to the new Federal Farm Credit Agency for refinancing farm mortgages, while $5.050.000 went to increase Federal subscriptions to the capital stock of the Federal Home Loan Bank. Relief and loans to financial institutions took $152,005,000, around $12,500,000 of this going to States for support of the unemployed. Of the loans authorized to banks, etc., some of the biggest were: $14,000,000 to the AngloCalifornia National Bank, San Francisco; $13.230,000 to the receiver, Canaval Bank & Trust Co., New Orleans, and $9,000,000, Hibernia Bank & Trust Co., New Orleans. The conservator of the Harriman National Bank, New on were 585,000. York, was Other down sizeable the amounts list for $6,distributed in stock subscriptions for reorganization of closed banks

19. June 26, 1933 Evening Star Washington, DC

Article from Evening Star, June 26, 1933

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DODDS AND NEELY NEAR FIST CLASH Former Resents Senator's "Whitewash" Accusation During Harriman Probe. (Continued From First Page.) more liquid position than it then was. They told me of the impending prosecution of Harriman They told me they held no brief for Harriman and gath ered they felt he was culpable and felt he should be punished eventually "They said. however, that if an indictment was found the bank was not liquid enough to stand a run which would undoubtedly follow Bisbee said a run on the Harriman Bank and the consequent closing of its doors, because of its non-liquid condition. might well result in runs on a half dozen other institutions and bring about a major banking crisis in New York and in the country 'I was impressed. I thought they were right, and I still think so. I conferred with the Treasury and learned that the Treasury Department wanted the prosecution delayed and also requested that before we do anything about the matter we give the Treasury Department advance notice. Holds Action Was Proper. Dodds said we considered the facts and decided it was proper to delay presecution Accordingly, he said. he gave such instructions to his own office force and suggested to Assistant United States Attorney Thomas E Dewey in New York that whatever steps necessary to bring about the delay be taken in New York City What had done. Dodds said, "was not an unusual thing. It was a proper thing As it came up. it was a matter that didn't even merit much time or attention. I so felt at the time and I feel so now Any unnecessary action in the way of prosecution would have been a ruthless and savage thing to do as far as the rights of the depositors were concerned. This was a very common thing. It was done frequently, not only at the request of individuals and clearing houses, but of Representatives and Senators. Some of the Senators on the committee have made such requests. After Dodds had testified for about an hour. Senator Ashurst asked: 'I have drawn this conclusion from your testimony, whether your action was ill or well, you appear to assume all blame. Is that right?" "Unquestionably, absolutely," Dodds replied. 'I had it in my hands to say to the United States attorney here whether to go ahead or not. I said he should not I alone was responsible. In fact, I didn't even refer the case to the Attorney General. Senator Neely asked Dodds whether he was aided in reaching his decision by the assurance that the New York Clearing House was in some way supporting the Harriman Bank. 'That impressed me very much, Dodds said. Tells of Prosecutions. "Don't you think. Neely asked. 'A great deal of the disaster that has come to the banking world is because inside interests have been wrecking banks? A statement could not be made so far from the facts, Dodds answered Neely then demanded to know how many defaulting bank officers had been put in jail during Dodd's tenure. Dodds said there were 255 presecutions in 1930; 475 in 1931, of which 80 per cent were convictions. and 394 in 1932, of which 297 were convictions. Senator Neely inquired whether these convictions were of bookkeepers and tellers or whether as many as 10 per cent were of bank presidents and cashiers. 'I would be shocked to find that anything like 10 per cent were the offenses of presidents and cashiers, Dodds answered. Medalie Gives Testimony. Medalie was sworn and Senator Ashurst asked Were you United States Attorney at the time of any failure promptly to prosecute violations of law in connection with the Harriman National Bank?' 'I should not call it a failure.' Medalie replied, 'but if you refer to the fact that I was United States Attorney when the Department of Justice received word of violations of the law the answer is yes Medalie testified that December 23. 1932. he was informed by L. K. Roberts, chief bank examiner. that Bisbes 'intended to take up with the Department of Justice the matter of withholding from prosecution certain matters in connection with the Harriman National Bank The United States attorney said he left that evening for a vacation cruise, and when he returned a day or two after New Year Dewey told him a letter regarding the Harriman case had been received. Medalie said the letter. sent by the Treasury Department, was dated July 9. 1932, but was not mailed until December 23 and was received the following day "Dewey also said. Medalie continued 'that he had received a telephone call from Dodds, the substance of which was that he had been visited by certain persons, including Bisbee, and had been in touch with responsible officials of the Treasury Department, and that on account of the delicate banking conditions in New York and throughout the country, Dodds was of the opinion that we should accede to the request that prosecution be temporarily withheld. Medalie said it was pointed out to him that the statute of limitations would not prevent prosecutions later, and that the persons against whom charges were made could be proceeded against "when the air cleared. 'I followed the suggestion or direction of the Department of Justice,

20. June 27, 1933 The Washington Herald Washington, DC

Article from The Washington Herald, June 27, 1933

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Menaces Neely Dodds Bank Probe Senator Near Fist Fight With Former Prosecutor at Harriman Quiz By THOMAS WRIGLEY NEW June 26 (U.S.). Senator Neely of West Virand Nugent Dodds, former ginia, Assistant Attorney General, all but came to blows in redhot row here today at the Senate Judiciary Committee hearing of the Harriman National Bank crash. Only the diplomatic handling the tense situation by Senator Ashurst of Arizona, cháirman the subcommittee, prevented fight. The clash came after the witness had assumed entire responsibility for delay the criminal prosecution of W. Harriman others for alleged irregularities in the fairs of the bank. SENATOR SEIZES Dodds, goaded to the breaking point Senator Neely's rapierpoint questions accused Neely uttering falsehood. fighting Neely seized heavy metal water jug. Dodds was angry his filled with tears. Chairman Ashurst placed restraining hand Neely's grasp of the and softly said: "Don't do Dodds had made some rather blistering before clash He had declared that came. "bank as such, national bank examiners misnomer, superficial formality. He also charged that many Members of Congress had requested delay bank examination proceedings. Dodds continued his revelation: think have lot learn in the Senate about the and about the prosecution of bankers." Neely then shouted: have admitted white washing and covering the est Dodds broke in and yelled: here say the Senator stating deliberate mistruth." It was at this point that Neely seized the water jug. Dodds, soon he completed his walked to Neely and apologized, and they shook hands. In earlier statements Dodds clared had known of the dition Bank back as 1932. In that said Henry E. Cooper, the Elton Bisbee, attorney for the Clearing House Association, had called Washington. Dodds said they told him that the Harriman Bank was in bad condition but that they were workto improve and that Harriman evidently had made false entries. They also said, Dodds declared, that run the Harriman Bank would endanger six other New York banks and create serious situation.

21. May 30, 1934 Daily News New York, NY

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Witness Bares Wash Deal in Harriman Case By NORMA ABRAMS. An arrangement whereby unlimited renewals upon a $75,000 loan were promised to Sidney Bernheim, vice president of a mortgage company, in exchange for his part in a wash deal involving $300,000 with Joseph W. Harriman, president of the defunct Harriman National Bank, was revealed in Federal Court yesterday. Bernheim, called as one of the final witnesses in the Government's trial of the aged banker and Albert M. Austin, former executive vice president of the bank, for alleged misuse of funds, testified to the deal upon which part of the indietment is based. Signed Note As Favor. As a favor to Harriman, Bernheim said that in 1931 he had agreed to sign a note for $300,000, the money to be used to purchase Harriman National Bank stock and the interest to be paid by the banker. In return he was promised, he said, that he would be granted renewals of his own $75,000 note then due and that the interest upon that sum would be carried for him. Bernheim said he explained at the time that he was financially unable to undertake such an obligation in his own interests. On cross-examination George H. Leisure, attorney for Harriman, forced the witness to admit that financial statements of his company at that date issued to prospective buyers showed adequate financial reserve. Bernheim also admitted that his testimony constituted his defense to two civil suits brought by the bank's receivers to recover the face value of the two notes. Turned Over $200,000. William A. Burke, former vice president, recalled by Assistant United States Attorney Jacob Rosenblum, told Federal Judge Knox and the jury that the $300,000 reeeived from the Bernheim note had been received by him and $200,000 of the sum was turned over to Harriman & Co. against the banker's personal account. The remaining $100,000, he said, was credited to the bank's bond department.