9aa4fe59Accommodated withdrawals, Borrowed from banks or large institutions, Full suspension
Other: Receiver appointed January 26, 1932; later litigation about preferential withdrawals upheld by courts.
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BANK GETS MONEY New Haven, Conn. Dec 18-(UP) - The New Haven Clearing House association to-day placed $500,000 at the disposal of the Broadway Bank and Trust company after rumors has caused an incipient run on that Institution. The resources of the bank were said to be $4,000,000.
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New York Stock Market time. Motorcy EXCHANGE ARE ERASED High Utility Leaders Down Fractionally; Some Specialties Weak. BY JOHN A. CRONE. New York, Dec. 23 (C. P. Stocks on the curb exchange slipped to lower levels today, after opening slightly higher. Electric Bond and Share sold off about a half point. Cities Service was off a shade but moved within very narrow range Standard Oil of Indiana backed and filled Middle West Utilities and Niagara Hudson Power also eased. Trading was down about 10 per cent from Tuesday's volume. Specialties featured early trading. American Salamandra broke 5 points. United States Radiator was off more than a point. Glen Alden Coal lost 2% points on relatively few offerings. Under the leadership of United Light and Power preferred, which yielded 2 points, the public utility preferreds for a time turned heavy. Stockholders' suits filed against American Light and Traction had depressing effect on that issue. American Gas and Electric lost a point. Standard Oil shares held fairly well during the selling movement in the noon hour. Standard of Ohio maintained its 1 point initial gain. International Petroleum firmed up after opening lower, and South Penn rose small fract Gulf Oil, however, fractionally receded. T&S R-K-O Files Answer in Receivership Case Baltimore, Dec. 22 Attorneys for the Radio Keith- Orpheum Ohio corporation today filed in circuit court a demurrer and answer to Bang the receivership suit brought against the corporation December 6 by Cookman Boyd, Baltimore Best In its answer the corporation denied it was unable to pay its do maturing obligations. It set forth Alum that under the provisions of the reBon Ami financing plan, recently approved by kholders, funds on hand will Warner be sufficient to meet present maturing obligations and anticipated requirements for a substantial period in the future. The corporation's balance sheet the answer stated, indicated its assets were more than $50,000,000 in excess of its liabilities. The court merely received the demurrer and answer without conCop&Z sidering the case today. A. L. & T. Holders Sue for Accounting Newark, N. J. Dec. 23 Two stockholders of the American Light and Traction company Tuesday filed suit in the chancery court for an accounting from the directors of the company, whom they charge with causing the firm losses in excess of $25,000,000. The suit was filed by Harry Helfman of Detroit, who holds 700 shares of the company's stock. and Stockton Cranmer of Somerville, Mass., the holder of 10 shares. Hershey Chocolate Increases Dividend New York, Dec. 22 (AP). The Hershey Chocolate company today declared a quarterly dividend of $1.50 on the common stock, raising the rate to $6 annually against former rate of $5. An extra dividend of $1 on the convertible preference stock was also declared along with the regular quarterly payment of $1. A similar extra was decla year ago. All the dividends are payable February 15 to stock of record January 25. Bank Suspensions. New Haven, Conn., Dec. 23 (P) The Broadway Bank and Trust company did not open for business today on order of the state bank commissioner A recent statement showed savings deposits of $1,607 general deposits of $846.1 and certificates of deposit of $202,268. Waterbury, Conn., Dec. 23 (AP) The Merchants Trust company of this city remained closed today by order of the state bank commissioner. The state manual lists savings deposits at $3,190,000. and commercial deposits at $2,700,000. Wall Street Briefs. (A. Railway Light road about including Baltimore equipment trust trust trusts the Chicago, St. highest Asphalt Foods Gold Graham West cvt Use World Herald Want Ads. Cent
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MAYOR HALTS RUN ON BANK Leaves Sickbed to Stem Wave of Fright Among Depositors. ASBURY PARK. (AP) Mayor Clarence E. Hetrick, who has been seriously ill for the past six months, left his sick bed to stop run on the Asbury Park and Ocean Grove Bank, the largest bank in Monmouth County, with resources of It was the mayor's first public appearance Summer. The effect of his presence and his halted the suddenly had begun. was deposhundreds more talked excitedly for the mayor unexappeared. Men and women stood aside to let him inside. Standing the pass midst the crowd indoors mayor held up his hands for silence. Then he spoke. heard this," he said, "and have you that down are You are unwise in own this spoke further He told the people confidence in the judg. ment the men whom they had their money He paused and voices began murThen someone muring cheered Almost instantly others began cheering The mayor's wan face relaxed and he smiled and the crowd. taking heed his words, Banking hours went the doors of the building closed. NEW HAVEN Connecticut closed their officers expressed the belief positors would be paid full. The Merchants' Trust Company of Wawith deposits of nearly 000,000. did not open, statement by directors said, because of the depreThe bank of Sanditz Traurig at Merchants Trust positor closed during the morning because not obtain funds the other bank meet depositors' mands. said, however, the 100 percent solvent.' New Haven the Broadway Bank and Trust Company, with deposits about not open heavy withdrawals during the last week.
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WEST HAVEN & TRUST Other Institutions to Enforce Withdrawal Notice New Haven. Dec. 24. West Haven Bank and Trust pany with deposits about 000 remained closed today The institution was combination former West Haven Bank and Trust company and the Home Bank Trust company hich merged last April with capital The state manual savings deposits commercial deposits of undivided profits $47,and surplus of Meanwhile heavy withdrawals other banks the New resulted ruling by the Haven house that must be the day statutory notice for the withdrawal of savings deposits. Walter Hodgkinson the West Haven institution and George Leete Peck. chairman board. The Hamden Bank and Trust company closed last week and the Broadway Bank and Trust company, depository many students, closed yesterday Other institutions throughout the city ported heavy withdrawals Officials both institutions have savings depositors would suffer no loss and others but The West Haven Bank and Trust company now exists by merger the West Haven Bank and Trust pany Home Bank and Trust The name of the company former was retained the bankhouse the Home bank taken its business. official announcement made Walter Hodgkinson, the Home bank George Leete president the West Haven was that the combined the two assets approximately statement by bank officials recent heavy made it to close in order assets and protect depositors. No statement was made relative to the possibility of reopenUnder the terms of the clearing house Savings deposits not to exceed $100 per will be permitted depositors necessities without the 90-day notice Waterbury, Dec. mekas and bankhere since 1908, and failed open this morning. The Trust yesterday was its and this together run the bank yesterday will be the Superior court bank will be named receiver for Sanditz Traurig, private who closed because the Merchants Trust its will be asked today Merchants Trust company directors will meet this afternoon to reorganization.
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Total Sales 1,516,669 Shares Call Money Complete Range of Prices on the New York Stock Exchange 3 Per Cent Brokers' Opinions Lamson New bonds the for further weeks Jackson Bros. Boesel We of the least part more obvious the problem be tinged with propa market and almost market as near Clarke Lewis There over the waning the Logan Bryan. would of bona market element support stock Associated complete today's stock New Close. Gabriel High Chnge Principal Markets to Close Saturday Associated Press. the important security and exchanges in this closed counand Canada try on Saturday, December 26 in Investments ristmas holiday protracted The principal exchanges of Eng- (This the fifteenth series Hughes on land and France will also be closed This widespread suspension will Financial Statements XV. extend the Christmas holiday of Bringing to close the series on section of the and balance analysis, we may financial world from the close of the important points business Thursday to Monday, for In the first place, though the banks will be open on must be borne in mind that the Saturday. balance sheet is picture of the company's position as of specific said date. It throws no light on what Report Sharp Drops may have happened between the the figures were made up and in Wholesale Prices they published. There is always a lag between the Chicago, III. Dec. 23 Aver- trade in Secondly, the vital thing is not during Novem were today the Seventh Federal Re- the total of assets but the ratio between current assets and current serve district liabilities. It is this ratio which inCompared with October, grocery sales were down about 11 dicates the ability of the corporation to meet its obligacent, hardware 18 per cent, drugs 11 tions, to pay interest on its bonds goods 12 per and dividends on its stocks. The cent, shoes 20 per cent and trical per Differ- ratio should be more favorable with an industrial than with pubences from of a year lic utility. The latter can operate ago were smaller in all groups than were the declines in October on smaller working capital than the former as rule. from the previous October under current assets what are known as quick assets, Price Cuts Announced that is to say cash and marketable securities, are of more value in inby Sears Roebuck Co. terpreting the outlook than inventories and bills receivable. WhenChicago, III. Dec. 23 Searsever cash items alone are sufficient Roebucks & today announced to cover all current liabilities the prices for 1932 in some cases at while many strongest possible condition is in- New "all-time dicated New others were back to the low marks per Fourthly it is not to be assumed of 1904 Time because company shows an imReductions were as much as 30 pregnable financial setup that it is 45 last year's necessarily making money. Operthe ating at a profit and solvency are tention called to the farm two entirely different things. It is which the company Bar even possible for a company to re- New York said was 33.3 per cent lower than port good earnings in its income and present and make an unsatisfactory showing in its balance sheet. If the earnings continue long other things being others Nash equal, they will be reflected in the Great Britain balance sheet but that often takes bills a good deal of time. Conversely, if earnings are consistently poor they will impair balance sheet posi- Belgium tion eventually but that also is Germany Holland sometimes long postponed. Norway Finally, the capital setup which Sweden always appears on the liability side Denmark 19.51. reveals the effect on earnings per share of increases or decreases in net income, the variation being the Greece Poland 11.30. greater the smaller the ratio stock capitalization to funded debt. Jugoslavia Rumania Bank Suspensions. Argentine New Haven, Conn., Dec. 23 (AP). The Broadway Bank and Trust company did not open for business today on order of the state bank A recent statement showed savings deposits of $1,607,365, general deposits of $846, and certificates of deposit of $202,268. New report today Waterbury, Conn. Dec. 23 (P) The Merchants Trust company of and this city remained closed today by steam Investment Trusts. order of the state bank commissioner. at the prices The state manual lists savings the counter deposits at $3,190,000. and comWednesday mercial deposits at $2,700,000. Gold earmarked Tr Sh Dow, Jones' Averages (Furnished Jackson Bros., Boesel & Co.) York, Dec. are the Dow, Jones' averages from India. the of the New York stock The Western market with the net its change from Tuesday's close peating Net with Average. tive industrials cash and Industry utilities the units Wool. Boston been at New York Dec. was quoted porting today quarter and quarter blood, after
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Broadway Bank year ago in July he was arrested in Salzburg on charges of fraud grow Receiver Confirmed ing out of unpaid bills and his Javis- New Haven. Jan. 26 were withdrawn in consideration of First National Bank was confirmed the value of his property and he was by Superior Judge Earnest C. Simp turned over to medical authorities for son today as temporary receiver for examination the closed Broadway Bank & Trust Company. Naming of three appraisChemical Discovery Confirmed. ers was taken under advisement. Atlanta, Jan. 26.-(AP.) Discovery Portuguese Produce Power. reported in 1930 for the first time Povoa, Portugal- AP The first Dr. Fred Allison of Auburn, Ala is hydro-electri power station built confirmed in report of Dr L. Mcentirely by Portuguese capital. labor Ghee of Emory University, Ga. to the and materials has been opened here. Journal of the American Chemical producing kilowatts yearly. Society Element 87 the last of the Another is to be built at Valada. 92 elements to be found.
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The question of adequate protection of trust funds in possession of banks in Connecticut which have closed their doors temporarily has been raised in New Haven. If it should appear that an act of the state legislature in reference to the allocation of securities in connection with trust funds held by state banks, acting as executors, has not bene compiled with summary action will be started by the probate court. Three banks in that city would be involved, the Broadway Bank & Trust company, the Hamden Bank & Trust company and the West Haven Bank & Trust company. Inquiries were made here today as to the status of the Merchants Trust company relative to the trust funds it holds or the estates in which it has been acting as executor. The answer received was to the effect that since the Citizens & Manufacturers bank took over the receivership accountings have been filed with the probate court and to date the various trust funds handled have been properly and officially checked. The work will continue until all have been formally accounted for. A special act of the legislature passed only last year makes it mandatory for all state banks, acting in a fiduciary capacity. to assign funds to cover all deposits of estates, so taht in event of the
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WITHDRAWAL FROM DEFUNCT BANK VOIDED Lower Court's Verdict in New Haven Case Is Upheld Hartford. March (AP) Two opinions handed down by the Supreme Court of Errors today and in error In the New Haven county case of the First National Bank and Trust receiver for the Broadway Bank and Trust VS. Mrs. Carrie et al. of New Hathe view of the court was upheld that certain deposit withrun the bank and before failed. was payment in contemplation insolvency and therefore The receiver sued to recover an alleged preferential payment by the Broadway bank. The facts as submitted were that Mrs. Manning had $500 deposit the Broadway bank December 1931. at the time run on Her Treat, treasurer and her agent Mrs Manning had asked Treat to look after her money she did not wish to have "tied up' in event of the banks closing The opinion said Treat knew the bank was about to and when 10 minutes of o'clock he had the teller Mrs. Manning's account and bring him the money. advising him to say nothing about it. preferential payment made by insolvent bank and was void under the Judge W. H. Pickett in Common Pleas court has held the withdrawal of the deposit was not made in ordinary course of business and that the was prefes Mrs. Manning over other The Supreme court held the same view did say quoting from other cases, that by an bank are not void or voidable law of secret trust for the benefit of the debtor. When, receives preferential not accorded to depositors in general resulting in preferred payment of his debt. such payment is void The second case was an appeal from awards and assessment of benefits by the Board of of Hartford from judgment for the Fourth Congregational Inc. of that city The Court of Common Pleas had found for the church The damages arose out the layout of street building and veranda lines
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Court Upholds Ruling Against Banker's Kin HARTFORD March (AP) Two opinions were handed by the supreme court errors today and in neither was error the Haven county case of In New the First National Bank & Trust Co., receiver for the Broadway Bank & Trust Co. Mrs. Carrie Manning of New the ower that certain deposit withdrawn during run the bank and just before failed was payment in of insolvency and therefore void. an alThe receiver payment by the leged preferential The facts as mitted were that Manning had in the Broadway bank in deposit the time of run December, it. Her son-in-law, was on and her agent. Manntreasurer ing had asked after her she did not have "tied up" in event of the The opinion said Treat knew the bank was about fail and when at of he had the ten teller close Manning's account bring him advising and to prefhim crential made solvent bank and was void under the statutes Judge W. H. Pickett in common pleas court had the withdrawal of the deposit of business and that ary to prefer Manning intent over other creditors The supreme court the same view did say, from other cases, that ential payments by an bank are not void voidable common law in absence of trust for the benefit the ever receives preferential depositors in general resulting in preferred payment of his debt such payment is void. The second case was an appeal from awards the of ers from udgment for the Fourth Church. Inc. that The court of comhad found for the pleas The the layout new street building and veranda
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City Loses In Appeals On Widening Supreme Court Rules Damages Must Be Paid as of 1930 in Albany Avenue Work The City of Hartford must pay for the taking of trees, sidewalks and steps in connection with the proposed widening of Albany Avenue, as of April 14, 1930, when the project was approved by the Common Council and not when the actual physical widening of the street is started, the Supreme Court of Errors ruled Wednesday The decision, which upholds Judge Thomas J. Molloy of the Court of Common Pleas, was written by Chief Justice William M. Maltbie in the appeal of the city in the cases of the Fourth Congregational Church, Inc. Louis Schreiber Inc., and Eidel and Lena Sudarsky In addition to fixing benefits and damages, Joseph Hoffenberg, committee of the Court of Common Pleas, who heard the appeals from the Street Board. awarded the church $4433.85 Schreiber $266 and the Sudarskys $538, with interest, for the taking of trees, sidewalks and steps provided it was found they were entitled to have these considered His report was accepted by Judge Molloy and the city appealed. Vote Board. The Common Council approved of the tort. the Street Board's report of its appraisal of damages and of benefits to property owners whose holdings were affected by the proposed widening but did not pass upon a vote of the board which read: "In making assessment for of new street, building and veranda lines on Albany this board contemplated that certain technical enroachments will be created by the establishment of these new street, building and veranda lines. It 18 intended, however, that these encroachments which will be created may remain during the pleasure of the property owner but cannot be added to. Furthermore if said technical are ordered removed by this board, a sum sufficient and suitable is to be awarded to the owner for that purpose after hearing or conference thereon. Council "May" Have Power. The 'technical encroachments" referred to relate to the trees, sidewalks and steps. Of this attempt to the easement obtained by the city for the widening SO that the city would not have to pay for the trees, sidewalks and steps, the Supreme Court said the Street Board had no such power under the city charter. Any such power if the city has it, rests in the Common Council alone the said "The vote of the board was entirely ineffective qualify the easement in the land taken and to limit the award of damages or assessment of benefits in the way it occurrences of life. attempted to do That vote was not reported to the Common Council or approved by The judge of the Court of Common Pleas was correct in disregarding We do, however, point out two other gested by that vote Any limitation upon an easement over land taken widening of street must sufficiently definite and certain so that property owners whose land is taken may know with reasonable certainty what rights remain to them in the land and so that there may be a reasonably certain basis for the award of damages or assessment of benefits; and the vote of the board falls far short of defining the limitation in the nature of the easement taken with the requisite certainty Nor could the provision in the vote that if the technical encroachments' were ordered removed by it. compensation should be made to the owner after hearing or thereon be The subsequent destruction of rights in the land taken which the board attempted to except from the easement could only be compensated by the method fixed in the charter for an award of damages and assessment of Lucius F. Robinson Jr. appeared for the city Willis G. and Charles Welles Gross for the Fourth Congregational Church. Inc., Reu- ben Sudarsky for the Sudarskys and Aaron J. Palmer for Schreiber Inc In the case of the First National Bank & Trust Company receiver of the Broadway Bank & Trust Company of New Haven, against Mrs. Carrie Manning of Manchester and her agent, R. Treat, of New Haven, the court, in decision by Justice John W. Banks, ruled that Judge Pickett of the Court of Common Pleas for New Haven County was correct in giving judgment for the plaintiff in an action to recover an alleged preferential payment by the closed bank to Mrs. Manning Section 3933 of the General Statutes forbids payments by bank or trust company in ntemplation of insolvency Mr. Treat was treasurer of the Broadway bank and Mrs Manning. his mother-in-law had $500 deposited in the savings department of the bank. Treat having authority to manage the account. The bank became insolvent in December, 1931 and on December 17 serious run started, lasting five days. The bank was closed December 22 by the bank commissioner after its funds were exhausted. On December 20 Mrs. Manning had told Treat she did not want her money tied up in the bank. He did not immediatel withdraw it but on December 22, hearing that the bank was about to close he directed teller to bring him the $500 in Mrs. Manning's and to say nothing about it. There was good deal of excitement at the time and several depositors were in line trying to get their money but many were unable to withdraw their funds before the bank suspended. The court held that the withdrawal was not made in the ordinary course of business but was a payment made in contemplation of insolvency and with intent to prefer Mrs. Manning over other creditors Treat held jointly liable with Mrs. Manning because as her agent he participated in the commission