15983. Harriman National Bank & Trust Company (New York, NY)

View Charter #9955 on SPMC

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: 4965ad85

Response Measures

None

Receivership Details

Depositor recovery rate: 80.2%
Date receivership started: 1933-10-16
Share of assets assessed as good: 29.5%
Share of assets assessed as doubtful: 51.7%
Share of assets assessed as worthless: 18.8%

Description

The bank was closed (failed to open) in mid-March 1933 and placed in the hands of a conservator under emergency banking legislation; it did not resume normal operation and later was in the hands of a receiver (lawsuits by receiver in 1934-35). Articles discuss fear that prosecution would cause a run, but there is no clear description of an actual depositor run on this bank in the provided texts. Conservator Henry E. Cooper is referenced in March 1933; receiver Frederick V. Goess appears in 1934-1935 legal actions.

Events (5)

1. March 18, 1911 Chartered

Source: historical_nic

2. March 13, 1933 Suspension

Cause: Government Action
Cause Details: Bank did not open and was placed in the hands of a conservator under emergency banking act/official action; Treasury/Comptroller involvement in reorganization and conservatorship was described in press accounts.
Newspaper Excerpt: failure to open today
Source: newspapers

3. March 15, 1933 Other

Newspaper Excerpt: The Harriman National Bank Trust company did not reopen yesterday and, under the emergency bank bill, was placed in the hands of Henry Cooper, ... Conservator in Charge
Source: newspapers

4. October 16, 1933 Receivership

Source: historical_nic

5. July 19, 1934 Receivership

Newspaper Excerpt: receiver for the Harriman National Bank and Trust Company of New York City. The suit alleges ... by Frederick V. Goess as receiver for the Harriman National Bank and Trust Company of New York City.
Source: newspapers

Newspaper Articles (22)

1. March 13, 1933 The Washington Times Washington, DC

Article from The Washington Times, March 13, 1933

Click image to open full size in new tab

Article Text

Harriman Closing Explained by Treasury In connection with the Harriman National Bank and Trust Company's failure to open today, Treasury officials pointed out that under Section 207 of the emergency banking act, President Roosevelt has power to enforce reorganization of such institutions. There can be no writing down of deposits without the consent of 75 per cent of depositors. The law provides that a write-down of other liabilities can be made only with the consent of 75 per cent of the creditors and twothirds of the stockholders. If a reorganization plan is approved by the Comptroller of the Currency, it will be binding upon all depositors, creditors and stockholders. Only where the comptroller approves a reorganization plan there can be no write-off of bank liabilities except through a receivership.

2. March 15, 1933 The Kokomo Tribune Kokomo, IN

Article from The Kokomo Tribune, March 15, 1933

Click image to open full size in new tab

Article Text

CONGRESS TODAY (By United Press) Senate: Continues debate Finance committee bill. Other committees consider Harriman Medalie was told over the teleHouse: phone by John Pinkley, deputy marshal. that Harriman was Considers bill extending emergenaid to state banks. bed care doctor and committee meets nurse, apparently unable to moved. $5,000,000 nance Corporation allotment The federal attorney instructed California. the deputy marshal retain Har- riman custody his pending arrival of signed to examine the banker the government Conservator in Charge The Harriman National Bank and Trust company did not reopen yesterday and, under the gency bank bill, was placed in the hands of Henry Cooper, of the bank. The Harriman National Bank Trust company member of the New York House tion and its latest clearing house capital $2.surplus and temand posits. $19,577,000, and time depos$5,102,000. Harriman the son of John NeilHarriman and Elizabeth GrainHarriman, clerk in National Bank of New York City in 1883, the same year he was graduated from Charlier's French Institute. His rise with that bank was steady until 1901, when he resigned vice-president cnter the firm of Harriman Company, established by his brother father. In 1912, be founded and became president the Harriman NationBank and Trust company. Too Much for Him DOCTOR: You're better? you drink hot water an hour before every meal, told you? did my doctor. but had give after about ten minutes. Lllus-

3. March 25, 1933 The Washington Daily News Washington, DC

Article from The Washington Daily News, March 25, 1933

Click image to open full size in new tab

Article Text

THE WASHINGTON DAILY NEWS-SATURDAY-MARCH 25-1933 2 Demand Grows for Harriman Affair Investigation Lawmakers Stirred Over Disclosure of Nine Months' Delay Case May Be Taken Up by Senate Committee Tuesday After Hearing From Counsel By Scripps ward Newspaper Alliance The demand for Congressional investigation of the Treasury, the Comptroller of the Currency and Justice Department grew today with disclosure that Hoover Administration officials delayed for nine months prosecution of Joseph W. Harriman, president of the closed Harriman National Bank & Trust Co. of New York, for alleged falsification of accounts. The alleged irregularities were first discovered on July 9, but a detailed report was not submitted to the Comptroller of the Currency by Chief National Bank Examiner L. K Roberts until Dec. 23. Only an informal letter for filing was sent to the Controller by Roberts on July 25, and it contained no basis for court action. J. W. Pole was Comptroller at this time, but he resigned on Sept. CONFER WITH PECORA The Senate Banking and Currency Committee, thru its chairman, Sen. Fletcher (D., Fla.) has been in longdistance telephone connection with Ferdinand Pecora, counsel for the committee stock-market investigation, in New York on the Harriman matter. Pecora may come to Washington Tuesday for the committee's schedule meeting, in which event the Harriman case probably will be taken up. The committee is charged with instigating stock transactions, such as those participated in by bank af filiates, and will look into the Harriman affair on this basis if any evidence is found that the Harriman bank funds went into security-buy ORDER MEDALIE TO WAIT When Examiner Roberts' report reached Acting Controller F. G. Awalt on Dec. 23, he immediately forwarded copies to the Justice Department and to U. S. Atty George Z Medalie at New York. Under instructions from the department here, Medalie held up prosecution, and no action was taken against Harriman until after the Roosevelt Administration came in. The reason for the delay in both instances, according to Awalt and Justice Department officials, was the precarious banking situation, and the fear that an indictment would lead to a run on the Harriman bank, and possibly others. Roberts said in his July 25 letter he was holding up his report in the hope funds could be recovered and a disquieting situation strengthened The bank remained open until the national holiday, but is now closed. JUSTIFIED BY SITUATION' When asked if bank examiners had this authority, Awalt answered that it was justified by the situation. He still in constant communication with New York clearing house of ficials who got his limited approval for delay in prosecution after he had forwarded a report to the Justice Department. When the moment for initial prosecution arrived on the day Awalt's reports reached the prosecuting authorities, he was visited by Henry E. Cooper, new president of the bank, the attorney for the New York clearing house and another official. They urged no publicity while they sought to reorganize, also pointng out the delicate situation, and Awalt recommended such a course to the Justice Department if it were "consistent with justice." Treasury officials asked that no action be tarted without notifying them first. ASKED MORE TIME In a conference with officials of the Justice Department the same pokesmen asked for "temporary deThey said they simply wanted

4. March 25, 1933 The Springfield Daily Republican Springfield, MA

Article from The Springfield Daily Republican, March 25, 1933

Click image to open full size in new tab

Article Text

REVEALS HARRIMAN BANK CASE PROBED FOR FIVE MONTHS Acting Controller of CurrenExplains Prosecution cy Delayed For Fear of on New York Company March conptroller the today bank spent months attempting straighten affairs of the Harriman National Bank and Trust pany of New alleged regularities over the department justice for This delay time condithe presentation the the prosecuting first ported Fears of Runs Discussing Cummings said had because existing the might would to others explaining treasury's bank's condition asked liquid before examiner, examiner tinued his bank's affairs "hoping operation DeOn that ordered the department Await said, Henry talked asked more time get the bank liquid. Says W. D. Mitchell Not Told The said today William Hoover Harriman was all subordinates.

5. March 25, 1933 The Indianapolis Times Indianapolis, IN

Article from The Indianapolis Times, March 25, 1933

Click image to open full size in new tab

Article Text

NEW LIGHT IS CAST ON BANK 'COVERUP DEAL' Delay of Nine Months in Prosecution of Harriman Case Revealed. EXPLANATION IS GIVEN Fear That Run Would Be Made on Institution Brought Delay. By Scripps-Howard Newspaper Alliance WASHINGTON. March 25.-The demand for congressional investigation of the treasury, the comptroller of the currency, and the department of justice grew today, with disclosure that Hoover administration officials delayed for nine months the prosecution of Joseph W. Harriman, president of the closed Harriman National Bank and Trust Company of New York, for alleged falsification of accounts. The alleged irregularities first were discovered on July 9. but a detailed report was not submitted to the comptroller of the currency by L K. Roberts.-chief national bank examiner, until Dec. 23. Only an informal letter for filing was sent to the comptroller by Roberts on July 25. and it contained no basis for court action. J. W. Pole was comptroller at this time, but he resigned on Sept. 20. Confer With Investigator The senate banking and currency committee. through its chairman, Senator Duncan U. Fletcher (Dem., Fla.), now is in long-distance telephone connection with Ferdinand Pecora, counsel for the committee stock market investigation, in New York, on the Harriman matter. Pecora may come to Washington Tuesday for the committee's scheduled meeting. in which event the Harriman case probably will be taken up. The committee is charged with investigating stock transactions, such as those participated in by bank affiliates, and will look into the Harriman affair on this basis, if any evidence is found that the Harriman bank funds went into security buying. When Examiner Roberts' report reached Acting Controller F. G. Awalt on Dec. 23, he immediately forwarded copies to the department fo justice here and to George Z. Medalie, United States attorney, at New York. Under instructions from the department here, Medalie held up prosecution, and no action was taken against Harriman until after the Roosevelt administration came in. Reason Given for Delay The reason for the delay in both instances, according to Mr. Awalt and department of justice officials, was the precarious banking situation. and the fear that an indictment would lead to a run on the Harriman bank, and possibly others. Roberts said in his July 25 letter he was holding up his report in the hope that funds could be recovered and a disquieting situation strengthened. The bank remained open until the national holiday, but now is closed. When asked if bank examiners had this authority, Awalt answered that it was justified by the situation. He still is in constant communication with New York Clearing House officials, who asked delay in prosecution after he had forwarded a report to the department of justice. When the moment for initial prosecution arrived on the day Awalt's reports reached the prosecuting authorities, he was visited by Henry E. Cooper, new president of the bank. the attorney for the New York clearing house, and another bank official. Asked No Publicity They urged no publicity while they sought to reorganize, also pointing out the delicate situation, and Awalt recommended this course to the department of justice, if it were "consistent with justice." Treasury officials asked that no action be started without notifying them first. In a conference with officials of the department of justice, the same spokesmen asked for "temporary delay." They said they simply wanted time to "fortify" the Harriman bank against any run that might follow publicity attending the indictment. Though they produced no records. they said the bank was safe and liquid, but not in a condition to stand the sort of run that might

6. March 25, 1933 The Indianapolis Times Indianapolis, IN

Click image to open full size in new tab

Article Text

NEW LIGHT IS CAST ON BANK 'COVERUP DEAL' Delay of Nine Months in Prosecution of Harriman Case Revealed. By Scripps-Howard Newspaper Alliance WASHINGTON, March 25.-The demand for congressional investigation of the treasury, the comptroller of the currency, and the department of justice grew today, with disclosure that Hoover administration officials delayed for nine months the prosecution of Joseph W. Harriman, president of the closed Harriman National Bank and Trust Company of New York, for alleged falsification of accounts. The alleged irregularities first were discovered on July 9, but a detailed report was not submitted to the comptroller of the currency by L. K. Roberts, chief national bank examiner, until Dec. 23. Only an informal letter for filing was sent to the comptroller by Roberts on July 25, and it contained no basis for court action. J. W. Pole was comptroller at this time, but he resigned on Sept. 20. Confer With Investigator The senate banking and currency committee. through its chairman, Senator Duncan U. Fletcher (Dem., Fla.), now is in long-distance telephone connection with Ferdinand Pecora, counsel for the committee stock market investigation, in New York, on the Harriman matter. Pecora may come to Washington Tuesday for the committee's scheduled meeting, in which event the Harriman case probably will be taken up. The committee is charged with investigating stock transactions, such as those participated in by bank affiliates, and will look into the Harriman affair on this basis, if any evidence is found that the Harriman bank funds went into security buying. When Examiner Roberts' report reached Acting Controller F. G. Awalt on Dec. 23, he immediately forwarded copies to the department fo justice here and to George Z. Medalie, United States attorney, at New York. Under instructions from the department here, Medalie held up prosecution, and no action was taken against Harriman until after the Roosevelt administration came in. Reason Given for Delay The reason for the delay in both instances, according to Mr. Awalt and department of justice officials, was the precarious banking situation, and the fear that an indictment would lead to a run on the Harriman bank, and possibly others. Roberts said in his July 25 letter he was holding up his report in the hope that funds could be recovered and a disquieting situation strengthened. The bank remained open until the national holiday, but now is closed. When asked if bank examiners had this authority, Awalt answered that it was justified by the situation. He still is in constant communication with New York Clearing House officials, who asked delay in prosecution after he had forwarded a report to the department of justice. When the moment for initial prosecution arrived on the day Awalt's reports reached the prosecuting authorities, he was visited by Henry E. Cooper, new president of the bank, the attorney for the New York clearing house, and another bank official. Asked No Publicity They urged no publicity while they sought to reorganize, also pointing out the delicate situation, and Awalt recommended this course to the department of justice, if it were "consistent with justice." Treasury officials asked that no action be started without notifying them first. In a conference with officials of the department of justice, the same spokesmen asked for "temporary delay." They said they simply wanted time to "fortify" the Harriman bank against any run that might follow publicity attending the indictment. Though they produced no records. they said the bank was safe and liquid, but not in a condition to stand the sort of run that might follow the indictment of Harriman

7. March 25, 1933 Daily News New York, NY

Click image to open full size in new tab

Article Text

KNEW MONTHS AGO HARRIMAN BANK WABBLED Washington, D. C., March 24 (AP). F. G. Awalt, Acting Controller of the Currency, said today a bank examiner spent five months attempting to straighten out the affairs of the Harriman National Bank and Trust Company of New York before irregularities were turned over to the Department of Justice for prosecution. This delay between the time the examiner discovered the bank's condition and the presentation of the evidence to the prosecuting authorities, and another delay of several months at the Justice Department, have been the subject of criticism from Capitol Hill. Last week Joseph W. Harriman, head of the bank, was arrested on a charge of embezzlement, nearly eight months after the examiner first reported to Washington. Harriman's Aid Sought. Awalt, explaining the Treasury's side in the affair, said the examiner reported first on July 25, 1932, that the bank's affairs were in bad condition, but he asked time to make it more liquid before any prosecution was begun. The examiner was said to have continued his efforts to put the bank's affairs in shape, "hoping to get co-operation from Harriman," until Dec. 23. On that date he presented his formal report, and Awalt ordered it sent immediately to the Department of Justice. On Dec. 30, Awalt said, Henry E. Cooper, new president of the bank, asked more time. "That's up to the Department of Justice," Awalt said he told him. Feared Run on Bank. Throughout this period, the Controller pointed out the officials were acting on the promise that Grand Jury proceedings and accompanying publicity would start a run on the Harriman bank.

8. March 25, 1933 The Berkshire Eagle Pittsfield, MA

Article from The Berkshire Eagle, March 25, 1933

Click image to open full size in new tab

Article Text

FEARED RUN ON BANK Acting Controller Explains Why Action in Harriman Bank Was Delayed WASHINGTON, March 25 G. Awalt, acting Comptroller of Currency, said late yesterday bank examiner spent five months to straighten out the affairs of the Harriman National Bank and Trust Company of New York before alleged irregularities were turned over to the Department Justice for prosecution. This delay between the time the examiner discovered the bank's condition and the presentation of the evidence to the prosecuting authoriand another delay of several months at the Justice Department been the subject of criticism Capitol Hill. Last week Joseph Harriman, head of the bank, was arrested on charge of embezzleeight months after the first reported to Washthe delay Thursday, Gen. Cummings said had judged necessary apparently the at the time might have started on the bank which would spread to others at New York. Awalt, the Treasury's said the exdepartJuly 25, that the bad asked time to make it more before any was begun. Awalt said John W. Pole, that time, had not the the merely one of thousands coming to the office. The was said to have his efforts to put the bank's affairs in shape, "hoping to cooperation from Harriman," until December 23. On that date presented his formal report to Department of Justice. On December 30, Awalt said, Henry E. Cooper, new president of bank, and its vice president, talked to Awalt and asked more to get the bank liquid. The Justice Department said yesterday that William D. Mitchell, attorney general in the Hoover adminknew nothing of the Harriman case, but that it was all handied by subordinates.

9. March 25, 1933 The Cincinnati Post Cincinnati, OH

Article from The Cincinnati Post, March 25, 1933

Click image to open full size in new tab

Article Text

CHARGES OF BANK FRAUD CONCEALED FOR NINE MONTHS Alleged Irregularities in Harriman Accounts Hidden by Officials to Prevent Runs, Statement Shows DEMAND FOR INVESTIGATION GROWS Treasury and Justice Departments Both Involved in Policy of 'Hushing' Impending New York Scandal Scripps-Howard Newspaper Alliance. By WASHINGTON, March 25.-The demand for congressional investigation of the treasury, the comptroller of the currency and the Department that Hoover administration offiJustice grew today with disclosure of cials delayed for nine months prosecution of Joseph W. Harriman. president of the closed Harriman National Bank & Trust Co. of New York, for alleged falsification of accounts. discovered on July 9. but deThe alleged were first the comptroller of the currency by tailed report was not to bank examiner, until Dec. 23. L. K. chief national Only an informal letter for filing sent to the comptroller by Mr. Roberts on July 25, and it contained LIBBY'S CLAIMS no basis for court action. Pole was comptroller this time, but he resigned on Sept. 20. Counsel Investigating The Senate Banking and Currency SenaDuncan Fletcher, Democrat, in connection with Ferdinand Pecora, counsel for the committee vestigation, in New York, on the Harriman Pecora may come to Washington the scheduled in which event the Harriman will The charged with investigating stock transactions, such those participated affiliates, will the Harriman basis evidence Harriman bank funds went into When Examiner Roberts' report reached Acting Comptroller Awalt on Dec. he immediately forwarded copies the Department Justice to George Medalie, York. Under from department here, Mr. Medalie held and action was taken against Harriman until after administration came Delay Explained The reason for delay in both instances, according Awalt Department of Justice officials, banking situation fear that an lead Harriman Bank and possibly Roberts said in his July 25 letter he was holding his report the hope funds recovered and disquieting situation strength-

10. March 25, 1933 Evansville Press Evansville, IN

Article from Evansville Press, March 25, 1933

Click image to open full size in new tab

Article Text

NINE MONTHS' DELAY BANK CASEREVEALED Former Hoover Aides Explain They Feared Prosecution Might Start "Run" demand for congressional investigation Treasury, the comptroller the currency and the Department Justice grew Saturday with disclosure that Hoover administration officials delayed for nine months prosecution Joseph Harripresident the closed HarriNational Bank and Trust man Company of New York, for alleged falsification alleged irregularities were first on July but detailed report was not submitted the comptroller the currency Chief National Bank Examiner until Dec. Only an letter for filing sent the comptroller by Mr. Roberts July 25, and contained no basis for court action. Pole was comptroller at this time, but resigned Sept. 20. Senate in Contact The Senate Banking and Currency Committee, thru its chairman, Senator Duncan Fletcher (Dem., Fla.) is now in long-distance connection with Ferdinand Pecora, counsel for the committee stock tion, in York, on the Harrimatter. Mr. Pecora come to Washmay ington Tuesday for the commitin which event Harriman case probably will be taken up. The is charged with investigating stock transactions, such as those participated in bank affiliates, and will look into the Harriman affair this basis evidence found that the Harriman bank funds went into When Examiner Roberts' report reached acting Controller Awalt Dec. 23, he immediately forwarded copies to the Department Justice here and to United State's Attorney George dalie at New York. Under from the partment here, Mr. Medalie held and action taken against Mr. Harriman after the Roosevelt administration came Fear of Bank Run The reason for the delay in both according to Mr. Awalt Department Justice offiand cials, the precarious banking situation, and the fear that an indictment would lead to run the Harriman bank, and possibly others. Mr. Roberts said in his July letter holding his port in the hope funds could and situation The bank mained open until the national holiday, but closed. When asked if bank examiners had this authority. Mr. Awalt answered that was justified by the situation. He still constant communication with York Clearing House officials who asked delay prosecution after he had forwarded report to the Department of Justice. When the moment for initial prosecution arrived on the day Mr. Awalt's reports reached the prosecuting authorities, he was visited Henry E. new president the bank, the attorney for the New York Clearing House and an other bank official No Publicity They urged no publicity while sought reorganize, also pointing out the delicate and Mr. recommended such to the Department of tice were "consistent with jusTreasury officials asked that action started without notifying them first. In conference with officials Department Justice the same spokesmen asked for "temporary delay.' They said they simply wanted time "fortify" the Harriman Bank against run might follow publicity attending the inThe produced no records. they said the was safe and but not in stand the sort of run that might follow the indictment of HarriTreasury officials understood have asked for notice prior action they could warn the Harriman, and possibly other banks, ready for "shock." Officials of all departments, including Atty. Gen. Cummings the Roosevelt administration. point out that delay did not hinder prosecution Harriman because the recent date of his alleged ofknown. however. that Department Justice officials who granted the request lasting only several The delay lasted from late December thru end of the and until early this Mr. Awalt has ready complete file the case, including all in the expectation there may congressional action

11. March 25, 1933 The Buffalo News Buffalo, NY

Article from The Buffalo News, March 25, 1933

Click image to open full size in new tab

Article Text

EXPLAINED Feared Bank Run From Harriman Prosecution, Says Awalt. March 25 the bank attempting straighten affairs the Harriman National Bank Trust company New York before alleged irregularities turned Department Justice for prosecuThis the time the condition presentation evidence prosecuting authoriseveral months Justice department been subject Joseph the the Throughout period. troller pointed acting premise grand proceedings publicity Harriman bank PECORA MEDALIE CONFER YORK nand counsel Senate committee conferred Friday ed States George and determine the months the Joseph within the scope the inquiry

12. March 25, 1933 The Buffalo News Buffalo, NY

Click image to open full size in new tab

Article Text

DELAY IS EXPLAINED Feared Bank Run From Harriman Prosecution, Says Awalt. WASHINGTON March said Friday bank spent months attempting straighten out the affairs the Harriman National Bank Trust company New York before alleged irregularities Department of Justice for prosecuThis delay time the dition the presentation the evidence prosecuting authoriand another delay several months the department have Capitol Last Joseph head the charge eight after first this comppointed were acting premise grand and start run on Harriman bank. PECORA MEDALIE CONFER NEW YORK, March nand Pecora, counsel Senate committee stock market conferred States George Medalie he expectmonths' the prosecution Joseph the scope the committee's inquiry

13. March 25, 1933 News and Record Greensboro, NC

Article from News and Record, March 25, 1933

Click image to open full size in new tab

Article Text

ATTEMPTS TO OFFSET BANK'S FAILURE MADE Acting Comptroller of the Currency Explains In Detail Acts of His Office. MITCHELL NOT AT FAULT Washington. March G. Awalt, acting comptroller of the currency, said today bank examiner spent months attempting straighten out the affairs the Harriman National Bank and Trust Company of New York before alleged is. regularities were turned over to the department of justice for prosecution. This delay between the time examiner the bank condition and the presentati evidence the authorities and another delay the justice department has been the subof criticism from capitol hill. Last week head the bank, was charge embezzlement. nearly after examiner first reported to Discussing the delay yesterday, Athad been because the situation the time might have started run on the which would spread others in Awalt, the treasury's affair. the examiner reported first the department 25, 1932, that the bank's affairs in bad condition but he asked time make it more liquid before any was begun Awalt said that time, had the letter from the examiner, was the of thousands coming to office said to have efforts put the bank's affairs in to co-operation from unOn that date presented his formal report and Awalt ordered sent immediately to the December 30, Awalt said, Henry E. Cooper, new president the bank, vice president Await and asked more time to get the bank liquid "That's Up to the department of Awalt said They replied they had sought his justice department and upon that basis said he talked to Nugent Dodds, the attorney general in the he want him (Dodds) anything with the aims of justice Awalt added that he suggested the depositors profit by holding off prosecution temporarily Through this period, comppointed the officials were acting on premise that grand jury publicity would start run on the Harriman Awalt that with his recommendation, the department justice halt did the statute limitations was involved the case and action not be started any time. The justice today William D. Mitchell, attorney the knew the Harriman case but that it was all handled by subordinates.

14. March 28, 1933 The Indianapolis Times Indianapolis, IN

Article from The Indianapolis Times, March 28, 1933

Click image to open full size in new tab

Article Text

# BANK COVERUP # POLICY ENDED # BY ROOSEVELT President Demands Speedy Action on Financial Irregularities. HERALDS BIG SHAKEUP, Thorough Inquiry Forecast Into Prosecution Delay in Harriman Case. BY RAY TUCKER Times Special Writer WASHINGTON, March 28.-President Roosevelt holds that banking irregularities discovered by national examiners or conservators in charge of suspended institutions should be reported immediately to the proper federal authorities for prosecution. In announcing this policy on behalf of the administration, William H. Woodin, secretary of the treasury, said that "the President did not believe it to be incompatible with the best public interest, nor is it believed that taking prompt action in such matters work to the detriment of any sound banking institution." Fear of aggravating a disturbed banking situation is the explanation given by Hoover officials for non-action. Coverup Is Revealed The announcement was prompted by the disclosure that the treasury, comptroller, and department of justice under the Hoover regime had delayed for nine months prosecution of Joseph W. Harriman, former president of the closed Harriman National Bank and Trust Company of New York, for alleged falsification of accounts. He now is under indictment. Attorney-General Homer Cummings has held the delay was justified. The Hoover administration also took no action against Charles E. Mitchell, former president of the National City bank of New York, after he testified to income tax transactions which now are the basis of an indictment against him. It was not until the statute of limitations was within two weeks of operating to stop prosecution that this international financier was indicted, at the Roosevelt administration's prompting, for alleged failure to pay $573,000 in income taxes for 1929. May Bring Cleanup The Roosevelt policy may point to a great turnover of personnel in all these departments, including the bureau of internal revenue. Although higher-up holdovers from the Hoover administration probably will be replaced in any event, the White House dissatisfaction with the practices of delay and laxity may mean that attorneys; accountants, examiners, and others in actual charge of detailed work may be let out. The explanation by Hoover officials for their failure to act against Harriman is that news of indictment of such an important financial figure at the time further would have upset the banking world. It was on this plea that Acting Controller F. G. Awalt and department of justice representatives agreed to a delay, and restrained George Z. Medalie, United States attorney at New York, from going ahead. He acted within twenty-four hours after the Roosevelt administration notified him to prosecute. Both Cummings and Awalt since have declared that the delay was justified under the delicate condition of the New York banking situation. Inquiries Are Pushed Meanwhile, two investigations resulting from these and alleged treasury irregularities seem assured on Capitol Hill. Ferdinand Pecora, counsel for the senate banking and currency committee, may return here today after examination of New York records in the Harriman affair. He was requested to determine the need for an inquiry by Chairman Duncan U. Fletcher (Dem., Fla.) of the committee. Senator Burton K. Wheeler (Dem.. Mont.) has introduced a resolution for a justice department inquiry into charges that Andrew W. Mellon and Ogden L. Mills, who headed the treasury under the Hoover administration, illegally failed to collect hundreds of millions in taxes from foreign steamship companies. This allegation has been made by David A. Olson, former employe of the banking and currency committee, who also has brought suit other treasury and internal revenue against Messrs. Mellon, Mills and officials. Senator Wheeler also is planning to propose a senate investigation of the situation. Accuses Mellons Olson resigned as investigator for the committee last February, alleging that he had been blocked in his duties, and placing the responsibility upon Chairman Norbeck. His first suit accused Andrew W. Mellon, Ogden L. Mills, Arthur A. Ballantine, David H. Blair, and Alexander W. Gregg, all former treasury officials, with having permitted 120 foreign steamship companies to escape income tax payments of $100,000,000 and with having allowed them a refund of $10,000,000, contrary to law. Double damages were demanded, amounting to $220,000,000. The second action alleged that W. L. Mellon, nephew of former Secretary A. W. Mellon, and six associate executives of the Gulf Oil corporation, of Pittsburgh, had been enabled to escape payment of more than $5,000,000 in income taxes.

15. March 29, 1933 Hartford Courant Hartford, CT

Article from Hartford Courant, March 29, 1933

Click image to open full size in new tab

Article Text

Harriman Is Unable To Appear at Hearing On Federal Warrant New York, March seph W. Harriman, former chairman of the Harriman National Bank and Trust Co., was unable to be present at scheduled hearing before a United States commissioner today on a warrant charging him with causing false entries to be made in bank books. The hearing was postponed without date. Harriman was reported to be suffering from hardening of the main artery He was arrested in his bedroom two weeks ago after the bank he headed was placed in the hands a conservator. He has since resigned his position with the bank. which he founded.

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

Article from The Washington Herald, April 29, 1933

Click image to open full size in new tab

Article Text

Harriman Depositors on NEW YORK, April itors of the Harriman National Bank and Trust Company will 50 cents on the dollar paid Monday or Tuesday, an attorney involved in negotiations between the Federal Government and the New York Clearing House Association said today. He added that the balance will be the expectation that full payment will follow. The 50 per cent payment, the said, will result from an Loan be approved the

17. May 12, 1933 The Indianapolis Star Indianapolis, IN

Article from The Indianapolis Star, May 12, 1933

Click image to open full size in new tab

Article Text

Adams. an architect, and Nathan Wallace fur dealer Steuer Examines Venire. Max D. Steuer, grizzled veteran of many a celebrated criminal trial, examined the veniremen for the defense Steuer used seven of the ten peremptory challenges allowed him and United States Attorney George Medalie conducting the prosecution himself, exhausted all six of Mitchell's extensive business and social connections caused Medalie to exercise extreme care in accepting the talesmen. He read long list of exclusive clubs and asked if any were members he mentioned several utility and sugar companies. the National City bank and the Federal reserve bank and asked if the talesmen or any members of their families were connected with them and he went through similar process with the lawyers associated with the defense. Suspicious of Steuer John Barry, one of those ques. tioned. said he thought the presence of Steuer indicated 'something particularly difficult about the case "Do you mean that you think Mr Steuer would not have been brought into the case unless there was something wrong with the defendant? Medalie inquired Barry nodded, and was dismissed The taking of testimony probably will start Monday after selection of alternate jurors DIRECTORS SYNDICATE LISTED. WASHINGTON, May 11.-(P)Henry E. Cooper, conservator of the Harriman National Bank and Trust Company in New York, today submitted to Senate investigating committee the names of twenty-seven participants in the "directors" syndicate" through which officials of the bank dealt in its stock According Cooper's testimony some of the money which it is charged was misappropriated, was used to cover illegal loans to this syndicate Cooper said members of the syndi- cate, in addition to Harriman, who served as were Philip Ruxton, Walter W. Price, J. W E. K. Taylor Frank H Fayant Howard W. Charles, Abram L. Leeds, E. H. H. Simmons, Winfield R Sheehan, Michael W Rayens, William A. Greer, Bertram L. Kraus, W. A. Buj, John A. Noble, Franklin Q Brown J. Barstow Smull, Parmely W. Herrick, Amos Sulka, Boykin C. Wright, Edward R. West, George M Gales, John A. Harriss, Lichtenstein Marshall Sheppey and Harrison K. Bird.

18. December 28, 1933 Evening Star Washington, DC

Article from Evening Star, December 28, 1933

Click image to open full size in new tab

Article Text

20 GOTHAM BANKS BY S. FOR U. SUED HARRIMAN VICTIMS $9,275,000 Sought Written for 11,000 Depositors on Clearing House Pledge. I ACCUSED GROUP DENIES OBLIGATION NOW LEGAL Says It Was Made During Crisis Without Due Study-Case Unusual. Associated Press. 28 -The FedBy the YORK, December filed suit against NEW Government has York Clearing eral banks of the New individuals who the 20 Association and House CommitHouse on the Clearing years to compel tee during to depositors payment in National Trust served /closed Harriman the full last two Bank of Clear- the & Co. Government contends behalf the of all of The in guarantees ing banks, House gave written late in 1932 and arthe payment of deposits the committee curearly in with 1933, the when controller Harriman of the Bank ranged close all. trency 1est it precipitate failed a to Harriman not Bank to March. the crisis open after the Approximate- for The the holiday last depositors were bank claims of the F. C. loan, ly half in the July through an sum R. of $9,275.- deand paid it is estimated required the to pay all would be interest. positors 000 in full Obligation with Denied. to have Legal understoguarantees extaken The the banks positio "in are a crisis that of and the the without technical given not now constitu Government were tended formalities consideration a legal the in and State its do complaint Supreme Clearfiled The yesterday, asks the banks that of they the made Court House to compel to recognize to protect Bank, the and deing a binding of agreement the it. The thereafter positors Government' breached and suit was said to be assert without The controller precedent. the bank and Roosevelt's closed, 1 receiver in accord- proclathat when with President the bank holiday, there ance inaugurating to reopen, 11,000 in mation and were subsequently more than excess failed of $24,670,000 M deposit the assets accounts were full, the exceeded insufficient bank, totaling and in that, to pay while depositors not have surplus in of deficiency would of the "the any a of small the the defendant fraction bank closed its banks. affairs a long Joseph has Federal re- W. Murray on investigation sulted Since in the former into indictment president and Albert of and chairHarriman. of the board, vice president. Harricharges Austin. man of former falsifying of the accounts. bank. entries was also inmonies Indicted man, founder $1,661,170 for raking of depositors falsetters Soon. Hearing Harriman is determine On January 5 Court to appear there if he is volving Harriman Federal to have a physically in able which, to in turn, he hearing for a sanity to hearing determine indictments. whether will be held trial on the says that persuade must The filing stand New the York suit Times the months overnment to carry had fore for nine banks to take 20 clearing agreement attempted the their alleged house eminent to councare out of the depositors advised by to rest on The banks. Times says, that the alleged crisis sel. expressed the position been made came consideration "in a of agreement and the without technical had extended formalities after the involved. crisis not the to When the re-examined was found which the of asserted agreement legal obligation the extent constitute. banks could a stockholders' to money. spending Reopening their Held Possible. Bank failure of the Harriman national moraThe reopen last after March the was declared to be "a in consequence torium the to Government's of of the the complaint failure Clearing and advanc- refusal House of the banks their of agreement or against by merger defunds on by with another Bank various positors ing to perform Harriman claims, collateral bank effecting or by a of the means. Clearing lawful House and practical ment preliminary to says, the other discussions newspaper banks indicated filing 15 In of the of the the a 20 willingness suit. arbitration Clearing the to House which accept but had five the been results negotiated of an a court for determination. months. insisted ORGENTHAUS on GIVES O. K.

19. March 6, 1934 Albuquerque Journal Albuquerque, NM

Article from Albuquerque Journal, March 6, 1934

Click image to open full size in new tab

Article Text

Boy Plunger" of Wall Street Broke; Livermore Liabilities Are Placed at Over 2 Million NEW YORK, March trader. filed voluntary petition for bankruptcy Monday He listed liabilities of and including life insurance at its face value. The petition also revealed tested breach promise action for had filed against Livermore by Naida L. Krasnova. known Wall street as plunger" piled fortunes only them. in his widespread and grains. Unpaid federal income taxes for totaling and penalties are included in liabilities There for Harriman National Bank and Trust company, which is hands of conservator. Notes E. Hutton, New York broker and of contract brought by flight proamong other scheduled Once in Livermore Continued on Page Two

20. March 13, 1934 The Waterbury Democrat Waterbury, CT

Article from The Waterbury Democrat, March 13, 1934

Click image to open full size in new tab

Article Text

Joseph W. Harriman of New York's Harriman National Bank was one of the first bankers arrested. The warrant was served as he lay ill at home. Here he is shown being carried to arraignment later on a stretcher. Twenty-eighth Day-March 13 By WILLIS THORNTON (Democrat-NEA Service Staff Correspondent) ANKS throughout the country began to open, and the B clouds which had hung over the country for weeks seemeo td lift a little as each of the 12 Federal Reserve cities arranged for some banks to open under license. With income tax day only two days away, people were perturbed about paying, because of a treasury announcement that Uncle Sam would expect his money, closed banks or no closed banks. Several cities, watching the growing distribution of the new Federal Reserve bank notes, announced that they were burning the scrip they hastily had printed. In many cases, deposits in reopening banks actually exceeded withdrawals. Panic was being allayed. PRESIDENT ROOSEVELT sent his beer message to congress, short, pithy, and to the point, asking amendment of the Volstead act to permit beer-making under an adequate tax system. A conservator was appointed for New York's Harriman National Bank and Trust company (first of many) and its president, Joseph W. Harriman, was arrested on a federal warrant charging falsification of books. He resigned from the bank, and later was indicted. The dollar actually gained in the foreign exchange markets abroad. While it later was to be depressed as a deliberate policy, at this time it felt good to know that there was confidence abroad in the future of the money we had been tempted to doubt ourselves for the first time in our lives. NEXT: House passes beer bill.

21. July 19, 1934 The Herald Statesman Yonkers, NY

Article from The Herald Statesman, July 19, 1934

Click image to open full size in new tab

Article Text

Couple Sued On Bank Debt Receiver Asks $10,000 From Yonkers Residents Two Yonkers residents are named defendants in suit filed yesterday in the United States District Court in New York City in behalf of Frederick V. Goess as receiver for the Harriman National Bank and Trust Company of New York City. The suit alleges that Alfred I. Smith and this wife, Mrs. Sophie E. Smith, both of 90 Rockland Avenue, Park Hill, are indebted to the bank for the sum of $10,000. Mr. Goess alleges that the defendants gave bond to the bank on Nov. 22. 1930, the indebtedness. Judgment in the full amount is together with interest at six per cent from the 1930 date, and the costs and disbursements of the action.

22. May 7, 1935 Evening Star Washington, DC

Click image to open full size in new tab

Article Text

FILM EXECUTIVE SUED Bank Receiver Asks $6,800,000 From Institution's Director. LOS ANGELES, May 7 (AP).-A $6,800,000 suit was filed here yesterday against Winfield Sheehan, director of production at the Fox Film Studios, by Frederick V. Goess, receiver for the Harriman National Bank & Trust Co. of New York City. It charged Sheehan, as director of