Second National Bank & Trust Company (Saginaw, MI)

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MICHIGAN BANKS ORDERED CLOSED

Proclamation Provides for Eight Day Holiday

Nearly 600 banks the lower peninsula state Michigan ordered Governor Comstock Tuesday morning of the ment the Union Guardian Trust Company of which with large of branch banks tions the state Unable their the bank meet steady demands made on Conferences called with state officials leading of including the heads of the General Motors. Chrysler Ford The former companies while the Ford company deposits excess of and claims have supported the bank with exceeding request made Ford company interests to those of smaller depositors and of Finance Corporation which already made loans the bank This port which they had already the bank Fearing bank panic after conference with leading and and state officials holiday decided upon until adjustments could made whereby all banks of the state would prepared withstand demands usually follow such financial upheaval Much citizens over the and particularly the large cities such Detroit denied made Wednesday ing. permitted withdraw per their relief and that perfected many the banks of again full before expiration of the eightday appreciable effect the Indiana cities by the the Michigan banks Banks of this county had with Michigan local bankers state that they amply able to render full their and depositors that he knew the general banking condition good. that the plan adoptwith approval struction Finance Corporation simply calculated to maintain steadiness an unstable financial situation.

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THE MICHIGAN MORATORIUM

The Governor of Michigan has closed all the banks and trust companies in his State for eight days. It is the same thing, on a larger scale, as has happened in many small towns in the Middle West and West during Shutdowns the course of this depression. It has happened all over Michigan for the same reason, Vs. Runs which appears to us to be a good reason. This reason simply is that the gold standard dollar has been growing more and more un-get-atable. It is better to freeze money in the banks and go on a scrip basis temporarily than to permit bank runs, which might produce bank failures. We think Gov. Comstock of Michigan has acted wisely and with true prudence. As we see it, the Michigan moratorium is another argument for cheapening the dollar so that people can get it more easily to buy goods, pay debts and keep business in motion. President Hoover told us Monday night in solemn tones that if we go off the gold standard we shall have economic disaster. What does he think we're having now, while we still cling to the gold standard?

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THE MICHIGAN MORATORIUM

The Governor of Michigan has closed all the banks and trust companies in his State for eight days. It is the same thing, on a larger scale, as has happened in many small towns in the Middle West and West during Shutdowns the course of this depression. It has happened all over Michigan for the same reason, Vs. Runs which appears to us to be a good reason. This reason simply is that the gold standard dollar has been growing more and more un-get-atable. It is better to freeze money in the banks and go on a scrip basis temporarily than to permit bank runs, which might produce bank failures. We think Gov. Comstock of Michigan has acted wisely and with true prudence. As we see it, the Michigan moratorium is another argument for cheapening the dollar so that people can get it more easily to buy goods, pay debts and keep business in motion. President Hoover told us Monday night in solemn tones that if we go off the gold standard we shall have economic disaster. What does he think we're having now?

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THE MICHIGAN MORATORIUM

The Governor of Michigan has closed all the banks and trust companies in his State for eight days. It is the same thing. on a larger scale, as has happened in many small towns in the Middle West and West during Shutdowns the course of this depression. It has happened all over Michigan for the same reason, Vs. Runs which appears to us to be a good reason. This reason simply is that the gold standard dollar has been growing more and more un-get-atable. It is better to freeze money in the banks and go on a scrip basis temporarily than to permit bank runs. which might produce bank failures. We think Gov. Comstock of Michigan has acted wisely and with true prudence. As we see it. the Michigan moratorium is another argument for cheapening the dollar so that people can get it more easily to buy goods, pay debts and keep business in motion. President Hoover told us Monday night in solemn tones that if we go off the gold standard we shall have economic disaster. What does he think we're having now

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Banks' Announcement

All Saginaw banks and their branches open their banking and maintain facilities for change. Safe deposit will be opened and held accessible to during regular hours.

Safe keeping departments will be kept open during usual hours having securities and other documents left with the bank for safe keeping. Pay roll checks. issued by corporations or other business firms which furnish the bank sufficient amount shall be expected that this provision will prove very helpful to Saginaw laboring men and merchants.

SECOND NATIONAL BANK AND TRUST COMPANY OF SAGINAW

BANK OF SAGINAW PEOPLES AMERICAN STATE BANK

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Michigan Recovering from State Wide Bank Holiday Order

Nearly 600 banks in the lower peninsula of the state Michigan ordered closed by proclamation of Governor Comstock Tuesday morning because of the embarrassment of the Union Guardian Trust Company of Detroit which with large of branch banks was one of the largest banking institutions in the state. Unable to convert their the bank was able to meet the steady demands made on its reserve. Conferences were called with state officials and with some of the leading industrialists of Detroit. including the heads of the General Motors. Chrysler and Ford Corporations. The two former companies were depositors. while the Ford company had deposits in excess of and claims to have supported the bank with investments exceeding request was made that the Ford company subordinate their interests to those smaller depositors and of the Reconstruction Finance Corporation. which had already made heavy loans to the bank This the Ford company refused to do in view of the heavy investment support which they had already given the bank Fearing general bank panic after conference with leading financiers and government and state officials the proclamation for an holiday was decided upon until could be made whereby all banks of the state would be prepared to withstand demands usually follow such financial upheaval. Much inconvenience was occasioncitizens over the entire state, and particularly in the large cities such Detroit when banking privileges were denied them. Arrangements were made Wednesday morning. however. whereby depositors were permitted to withdraw five per cent of their deposits as emergency relief. and is predicted that will be perfected whereby many of the banks of the state again be in full operation before the expiration of the eightday holiday. Much cash was poured into Michigan from outside sources on Wednesday and Thursday and it appeared Thursday that would available for circulation in than in the during the boom times Many banks were expecting to resume operations by Friday in limited and reported that in view of the expected recovery from the situation that state banking department would leave at discreation of the banks the matter of reopening before the expiration of the holiday set.

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WEEK'S

SURPRISE SHOCKS WELL RESISTED BY PRICES IN GENERAL and

CHARLES F. SPEARE BY Consolidated Leased Journal. Feb. The episodes in our unexpected business life and with all of their implications, could not have failed to produce certain liquidation securities fact that they did not The create an even greater degree of of this that stocks meaning have The liquidated group of values. other the most reother developments the subtract from what be encouraging appeared had The present average being the lowest since Octhe confitober, dence that has taken place since that time rather than conditions. measuring a The world was unprepared statewide banking moratorium in Michithat greeted it Tuesday morning some months been assured was sound the and that that while might be weaknesses in that will have supported, the crisis in last banking was there was distinct shock in the spectacle an entire one state, the country largest having its banking entirely withdrawn order to prewhose assets the extent of over per cent were invested in real the heart of this situation is of investing large banking portions the those paper that are not marketable and, while profitable fair weather. are liability disturbed public sentiment. realized now in many that the value of their banks little and henceforth is with the of The Michigan incident recalls the credited the Fidirectors that no major trouble would be permitted banking This might be supported the while no institution Detroit deposits over 500 banks and aggregating have been for prescribed period. That there on the part Corporaassist instiand that toward deinflation apparent each Report Scanned This the report of committee to the opinions and where the ing in mat in the past ters some promoted the investitransportation keen for if they the would of in the frank has closely follow Salt Lake City and Louis railroad conagain the position of the the bondhave abused their and up deearly must be accepted There for continuto railroads that handicapped ratio embarrasses such propreasonable financial the for the railroad sitsituations must an the market totheir the Reconstruction Finance Corporation to additional railroad practically defaulted price

Firmer Some banking dismarket, with weakness has developed year suggestion fiinapparent exchanges Japan's credit rest quest for greater considerable loans by the the the foreign trade outlook in South republics the inColomCongress Still Lagging during been helpful legisthe fears the would been an institute what are termed and part in the shrinkage now the general not the time to They the betterment of the situinvolved listenrecital of the Insull vandal may have York Stock ago utterly immediate good and distraught people and farm sidetracked Pressuspend congress abruptly Comstock stopped the

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MICHIGAN'S BANKS OPENED TODAY FOR LIMITED BUSINESS gan's banks opened for restricted business today. some of them for the first time since Governor William A. Comstock's emergency closing order ten days ago. Rudolph E. Reichert state banking said that most banks were "doing business in the best possible way," and congratulated the state's bankers on their cooperation during the emergency. He said that most banks were cashing checks that had not already been cleared, on the depository percentage basis laid down in the governor's second proclamation issued Tuesday. Generally, the banks were following the plan under operation for the past week in Detroit, allowing depositors to withdraw 5 per cent of their deposits. In Detroit at the opening hour there were no lineups outside the banks and few instances of unusual numbers of customers inside.

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NEWS

Page. Movie Reel Editorial Movies Markets Winchell Ads Folly Island. Weather Radio Sports 16 Plans started for early pres. the west farm relief proposal. Page The United States general ruling on the proper of assembling to vote repeal. Page The senate banking heard charge the City control the mar ket for its stock. Page Senator assailed he clared control by New York Page The senate did some expense paring and then wiped added Page

Mrs. Theodore Roosevelt belated apology from health officer. Page Senator Thomas Walsh sailed for Cuba to marry sugar grower's Page President Roosevelt appointed Representative Douglas of Arizona as budget director. Page Michigan banks reopened. Page 2.

Dr. Charles urged cational guidance for employed adults. Page The repeal proposal was put Page The city council committee recommended the department personnel cut Page The park board had natural goldfish bowl Birch at Page Presidents of state teachers' col. united against the proposed curtailment of the state sys. tem. Page Northwest Feed Dealers told unregulated trucks affected their business. Knowledge of school subjects was called not the essential of education of girls by Dr. Malcome Mc. Lean. Page Miss Helen Wilson, former resident of Minneapolis, died Tre mezzio, Page 6. Patrick 79. deputy sheriff, fell dead. Page Two suspended Paul policemen were sentenced for larceny. Page

SINCE prohibition went effect several states which were dry have shown wet sentiment. map and story indicate the Page President-elect Roosevelt has decided he'll rely on service agents guard him the inanguration. He told Arlayne Brown, world champion revolver shot. offered that she won't be needed. Page The intelligence that gets marks not the only from educator. Dr. Malcolm college rector the University of urged education that will fit life. Page

The big Japanese drive in Jehol started. Page The Mount Everest plane party from Sicily after five Page WOMEN'S NEWS. Evon Nollette describes garments designed for double duty. Page 13. for Swedish meat balls by Kate Smith. Page 13. Restlessness is Elsie Page 13. Jessie DeBoth presents Sunday dinner menu. Page 13. SPORTS. Mickey shaded Frankie Knauer the six-round of the boxing Page 16. The city high school basketball will wind up today. Page 16 Page 17. Alexandria's quintet was elimi nated by the St. Paul Flyers in the feature of the amateur basketball the Ascen sions, Holy Cross and Belle Plaine also won. Page 17.

MARKETE

Bullish vanished in the Minneapolis pit; Chicago tumbled. Page 18. Stock values slumped to new low averages on large turnover. Page 19. Bonds suffered the worst relapse since the first the 19. Page 19. Dog and lamb trade advanced in South St. Paul: cattle prices mained unchanged. Page

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162 Michigan Banks Have Received Orders to Open

Four in Tuscola County in First List to Receive Order. Huron Banks Expect It Soon.

Among the first 162 banks opened by order of the federal and state are several in this territory. They include four in Tuscola county, namely, the State ings Bank, Reese: State Sav Bank, Gagetown; State Savings Bank. Union ville: and the State Bank, Mayville. Others the territory are the Bay City National Peoples Commercial Savings, Bay City; Second National, Saginaw, and First National, Lapeer. All these banks opened for regular business Thursday. Up to the time of going to press none of the Huron county banks had received opening orders, but they expected to come through withthe next few days. The Farmers and Merchants State Bank of Sebewaing is member of the Federal Reserve system and will receive its orders to open directly from Washington.

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DRAWING OF PROPOSED BREWERY derstood Jones was connected with but while he was testifying word was received from and from officials of the Houston bank that the R F. C. chairman had no connection with the Texas institution Firmly and with curt answers, Wilkin gave his story what he termed Wall Street plot.' in questioning Toy. before Judge Harry B Keidan, sitting as the is holding pubWilkin who remained on the stand all day. charged that the assets of the Second National Bank of Saginaw were undervalued by Federal Bank Examiners and charged was for the purpose of co-operating with 'fellows who wanted the bank back at price which was not equitable Most the Saginaw bank's stock was held by the Guardian group. The bank finally was purchased by R. Perry Shorts director of the New National Bank of Detroit. and group of associates Wilkins saving the price was He said their first of fer was 40 000 and after the group went into receivership. they reduced the offer to The bank's ceiver however held out for 000 and finally accepted $400,000. Wilkin Discussing trip to Washington. in which he conferred with G. Awalt then Comptroller of the Currency Wilkin said Awalt told him been too easy on you birds over the country. Now. we're going to be tough Did they get tough in any place except Michigan asked Judge Keidan can't find any other place,' he said

But they were tough here?" "Yes sir plenty tough,' said Wilkin Mayor Frank Couzens. son of Senator and Mrs. Couzens, said this afternoon that Wilkin's testimony has been reported to correctly reveals that possession of only a part of the facts. Senator Couzens is in London delegate to the World Economic Conference and Mrs. Couzens is with him "no funds were transferred from the National Bank of Commerce any other bank with any that banking holiday would take During session Judge Keidan signed formal order di- rected to Secretary of the Treasury William H. Woodin requesting the appearance here of more than dozen Federal Secretary Woodin and Former Secretary Ogden L. Mills to testify before the jury concerning the banking holiday and events following it.

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Witness Says Closing Of Detroit Banks Was Plotted By Wall Street

DETROIT. June witness' charge that ing Street plot Henry Ford financially was directbehind the closing of two tional banks in Detroit, tonight rested in the records of grand jury investigating the involved banking affairs. The charge made by Herbert Wilkin, Detroit banker, detailing his knowledge of affairs leading to the closing of the Guardian National Bank of Commerce, which, with the First tional Bank-Detroit, did not open after the Michigan banking holiday.

Would Tie Up Ford Money

Street believed it had chance. by tying up Ford's posits the Michigan banks." clared Wilkin, so deplete his working capital that he must deal them go broke. think they realized that here was the time to finish what they had started. But they were very sadfooled." Previously in his testimony the witness had startled his hearers the declaration that $4,000.was removed from the two banks before the statewide holiday was proclaimed He said two such withdrawals were those of Mrs. James Couzens, wife the Michigan senator, and the Second National Bank of Houston, Tex.

Clear Checks After Holiday He also asserted that many checks had been cleared through the Detroit clearing house after the bank holiday had been de. clared. Houston, he said, was the home corporation. He proceeded in link the failure the Guardian National bank, from which he said the money was obtain an loan, with the the Houston with. saying the made, got the pression' weren't going to get the Jones No Connection In Wilkin said he understood Jones was connected the Houston bank, but while he was testifying word was ceived from Jones himself in Washington, and from officials Houston bank, that the chairman had no the Texas institution Firmly, and with curt gave his story of what he termed Wall Street in questioning by Prosecutor Harry Toy, before Judge Harry Keidan, sitting as the which holding public

Bank Assets Undervalued who remained the stand day, charged that the assets the Second National bank of Seginaw were undervalued by federal bank examiners, and charged for purpose cooperating with "fellows who wanted the bank back price which was equitable." Most the Saginaw bank's stock was held by Guardian group. The bank finally was purchased Perry Shorts, director new National Bank of Detroit, group associates, Wilkin the price He said their first offer and, after the group into receivership, they duced the offer to The receiver, however, held for and finally accepted $400,000, Wilkin testified. Discussing trip to Washingin which he conferred with (Continued on Page Two)

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FAILURES STREET

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Jones himself Washington, and from officials of the Houston bank, that the chairman had connections with the Texas institution. UNFOLDS PLOT Firmly, and with curt answers, Wilkin story what termed the plot," tioning by Harry before Judge Harry ting the jury, which holding public sessions. remained on stand charged the assets of the second National bank Saginaw were federal bank and charged was the with "fellows wanted the bank price which equitable.' Most the Sagiheld by the Guardian The bank finally purchased Perry of the bank Detroit, and group Wilkin the price He said the group into the offer 000. The bank's receiver, held for and finally cepted $400,000. Wilkin testified. Discussing Washington, which he conferred with Awalt. then comptroller the Wilkin Awalt told been easy on birds the Now. going they tough any place except Michigan?' asked Judge dan. can't find any other they were tough here?" plenty tough, Wilkin.

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Wall Street Plot Against Ford Charged in Detroit

(Continued from Page One) statewide holiday proclaimed February such withdrawals James Couzens, and Second bank Houston, Tex. He also many checks had cleared through Detroit Clearing House after the bank holideclared was the home Jones, Corporatestimony to the failure Guardian tional which he said the was obtain Houston drawals, saying the withdraw als impression said he underJones with Houston bank, but while was testifrom Jones himself from the Houston that connections Texas Firmly answers, Wilkin what he termed Wall Prosecutor before Judge Harry sitting jury, which is holding public Wilkin, remained on the stand Second National Saginaw under federal bank aminers, and charged the purpose cooperating with "fellows bank the Saginaw stock was held by Guardian The bank was purchased by Shorts, director the National bank Detroit. and group associates, Wilkins saying the price was $400,000 said their first offer was $140.group receivership the offer The howout $500,000 and finally accepted Wilkin testified. Discussing Washington, in comptroller currency, Wilkin Awalt told him been on you birds all over the country. Now goto Did they get tough in any place except Michigan,' asked Judge Keidan. can't find any other place," he they tough here?" plenty tough," said Wilkin.

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"WALL STREET PLOT" CLAIMED BY WITNESS

FROM PAGE ONE holiday had been he said. the home Jesse H. Jones, chairman Finance CorHe proceeded in to link the failure of the National from he said the money was to C. loan the Houston "when the made, got the impression going get the Wilkin said he unJones was with Houston but while he the was testifying was received from Jones himself in from officials of the Houston and bank, that the R. no connections with the Texas institution. Firmly, and with curt answers, gave his story of what he termed "the Wall Street plot," in questioning by Harry before Judge Harry B. Keidan, sitting the jury. which is holding public ses. Wilkin, who remained on the stand all day, charged that the assets of the Second National Bank Saginaw were under-valued by federal bank examiners, and charged It was for the purpose of co-operating with "fellows who wanted the bank back at price which was not equitable.' Most of the Saginaw stock was held by the group. The bank finally was purchased Perry Shorts, of the National Bank of Detroit, and of Wilkins sayprice was He said their first offer was and, after the group went into ship, they reduced the offer to $54,000. The bank's receiver, how. ever. held out for $500,000 and finally accepted $400,000, Wilkin testified. a. trip to Washington, in which he conferred with F. G. Awalt, then comptroller of the currency, Wilkin said Awalt told him: "We've been too easy on you birds all over the country. Now going to be tough.' "Did they get tough in any place except Michigan? asked Judge Keidan. can't find any other place," he "But they were tough here?" "Yes, sir, plenty tough," said Wilkin.

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Witness Says Plan to Cripple Him Back of Closing

IRREGULAR CHECK ACTION CHARGED

Planned of His Working Capital, Is Allegation

June witness charge that long-standing Wall Street plot to "strangle" Henry Ford directly behind the closing of two national banks in Detroit today the records of one-man grand jury investigating the city's banking affairs.

The charges the most sensational in weeks of open testimony, was made by Herbert Wilkin, Detroit banker, in detailing his knowledge of affairs leading to the closing of he Guardian National Bank of Commerce, which, with the First National Bank, Detroit did not reop after the Michigan banking holiday. Street believed had chance, by tying up Ford's déposits the Michigan banks," declared Wilkto so deplet his working capital that he must deal with them broke. think they realiezd that the time finish what they started. But they were sadfooled." in his testimony the had startled hearers with the declaration that moved from the two banks before the holiday proclaimed He said two such of Michigan senator, and the Record National bank of Texas. He also asserted that many checks had been cleared through the Detroit clearing house after the bank holiday had been declar Houston, was the home town Jesse H. Jones, chairman of the Reconstruction Finance Corp. He ceeded in testimony to link failure of the Guardian National Bank, from which he the money was withdrawn, to obtain loan with the Houston withdrawals, 'when the withdrawals were made, the impression we going get the loan." In testimony, Wilkin said he derstood Jones connected with the Houston bank, but while he was tustifying word was received from Jon himself, Washington, from ofthe Houston bank that the R. chairman had no connections with the Texas institution. Firmly, and with curt answers, Wilkin gave his story of what termed Wall plot," in ques. Moning by Prosecutor Harry Toy before Judge Harry Keidan, sitting the one-man jury, which holdsessions. Wilkin charged that the assets of the Second National Bank of Saginaw by federal bank xainmers, and charged for the purpose of co-operating with "fellows who wanted the bank stock price which not Most of he bank's stock was held the Guardian group. hTe bank finally was purchased by Perry of the New National Bank of and group Wilkins saying the price He said their first and, after the group into r veivership, they reduced offer to $54,000. The bank's however held out for $500,000 finally accepted $400,000, Wilkins

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Wall Street Plot to Whip Ford Behind Bank Closings In Detroit, Banker Charges

ETROIT June 26. (/P)-A witness' charge that long-standing Wall street plot to "strangle" Henry Ford lay directly behind the closing of two national banks Detroit tonight rested one-man grand jury investigating the city's involved banking affairs. The charge, the most sensational in two weeks of open testimony. made by Herbert R. Detroit detailing his knowlaffairs leading to the closing of the Guardian National up Bank Commerce, which, with the First National did not reopen after the Michigan WITHERING HEAT holiday. street believed it had chance by tying up Ford's deposits in the Michigan banks," declared Wilkin, "to so deplete his working capital that he must deal with them or go broke. think they REGION WIDE realized that here was the time finish what they had started. But they were sadly fooled." Slight Relief Promised in

Previously in his testimony the witness had startled his hearers with the declaration that $4,000,000 removed from the two banks before the statewide holiday was proclaimed Feb. 14. He said two such withdrawals were those of Mrs. James Couzens, wife of the Michigan senator, and the Second National bank of Houston.

Texas.

He also asserted that many checks had been cleared through the Detroit clearing house after the bank holiday had been declared.

Houston, he said, the home of Jesse H. Jones, chairman of the Finance He proceeded in testimony to link the failure of the Guardian National bank, from which he said the money was withdrawn, obtain loan with the Houston withdrawals, saying "when the withdrawals were made, the impression going get the In testimony, Wilkin said he Jones connected with the Houston bank, but while testifying word ceived from Jones himself Washington, and from officials of the Houston bank, that the R. chairman had connections with the Texas institution. Firmly, and with curt answers, Wilkin gave story what termed "the Wall street in questioning by Prosecutor Harry Toy, before Judge Harry B. Keidan, sitting the jury, which is holding public sessions.

Wilkin, remained the stand day, charged that as the Second National bank of Saginaw were undervalued by federal examiners, and charged for the purpose of cooperating with wanted the bank stock price which was not equitable.' Most the Saginaw stock held by the Guardian group. The bank finally was purchased by Perry Shorts, bank of Detroit, and group of ing the price was $400,000. He said their first offer was and, after the group went into they reduced the offer $54,000. The bank's receiver, however, held out for finally accepted $400,000, Wilkin testified.

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or go broke

"I think they realized that here was the time to finish what they had started. But they were very sadly fooled. Previously in his testimony the witness had startled his hearers with the declaration that $4,000,000 was removed from the two banks before the State-wide holiday was proclaimed February 14. He said two such withdrawals were those of Mrs James Couzens. wife of the Michigan senator, and the Second National Bank of Houston, Texas. He also asserted that many checks had been cleared through the Detroit Clearing House after the bank holiday had been declared. Wilkin, who remained on the stand all day charged that the assets of the Second National Bank of Saginaw were under-valued by Federal bank examiners, and charged was for the purpose of co-operating with 'fellows who wanted the bank back at price which was not equitable Most of the Saginaw bank's stock was held by the Guardian group. The bank finally was purchased by R. Perry Shorts, director of the new National Bank of Detroit, and group of associates. Wilkins saying the price was $400,000. He said their first offer was $140,000, and, after the group went into receivership, they reduced the offer to $54.000. The bank's receiver. however, held out for $500,000 and finally accepted $400,000. Wilkin testified.

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CHARGES ANTI-FORD PLOT BEHIND CLOSING OF DETROIT BANKS

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sitting as the one-man jury, which is holding public sessions.

Charges Undervaluation

Wilkin, who remained on the stand all day, charged that the assets of the Second National Bank of Saginaw were undervalued by federal bank examiners, and charged it was for the purpose of co-operating with "fellows who wanted the bank back at a price which was not equitable." Most of the Saginaw bank's stock was held by the Guardian group.

The bank finally was purchased by R. Perry Shorts, director of the New National Bank of Detroit, and a group of associates, Wilkins saying the price was $400,000. He said their first offer was $140,000, and, after the group went into receivership, they reduced the offer to $54,000. The bank's receiver, however, held out for $500,000 and finally accepted $400,000, Wilkin testified. Discussing a trip to Washington, in which he conferred with F. G. Awalt, then comptroller of the currency, Wilkin said Awalt told him:

"We've been too easy on you birds all over the country. Now, we're going to be tough."

"Did they get tough in any place except Michigan?" asked Judge Keidan.

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Declares Wall Street Sought Bankrupt Ford

CONTINUED FROM PAGE ONE the impression we weren't going to get the loan. In testimony, Wilkin said he unJones was connected with the Houston bank, but while he was testifying word was received from Jones himself in Washington. and from officials the Houston bank, that the R. F. chairman had no connections with the Texas institution. Firmly and with curt answers, Wilkin his story what he termed Wall street plot, in questioning by prosecutor Harry Toy. before Judge Harry B. Keidan, sitting as one-man jury, which is holding public sessions. Wilkin, who remained on the stand charged that the as sets the Second National Bank of Saginaw were under by federal bank examiners, and charged was for the purpose cooperating with "fellows who wanted bank back at price which was not equitable Most the Saginaw Bank's stock was held the Guardian group. The bank finally was purchased by Perry Shorts, director of the National Bank of Detroit. and group of associates, Wilkin ing the price was $400,000. He said their first offer was $140,000. and, after the group went into re- ceivership. they reduced the offer to $54,000. The bank's receiver. however, held out for $500,000 and finally accepted $400,000, Wilkin Discussing trip to Washington, in which he conferred with F. Awalt. comptroller the currency, Wilkin said Awalt told been too easy on you birds all over the country. Now. going to be tough "Did you get tough in any place except Michigan,' asked Judge Keidan. can't find any other place," he said. "But they were tough here?" "Yes. sir, plenty tough,' said Wilkin.