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During the past week, at three meetings, 10,000 depositors of the BankersState bank have assembled at three churches to perfect a plan of action to The and the Citizens Trust and which closed after ago, went into the hands of a ceiver week. Aaron vice president of the Chicago Trust company, 81 W. Monroe St., was appointed receiver by the state bank Sheridan A. Bruseaux has been retained by Mr. Colnon to investigate assets and alleged
CO.'S OFFICERS FACE COURT CHARGE
CHICAGO-W. Ellis Stewart, Earl B. Dickerson, an attorney, James H. Jones, Dr. M. O. Bousfield, W. Louis Davis, and E. H. Carey, onetime officials of the Liberty Life Insurance Company, were cited by Judge R. E. Gentzel in civil court to show cause why they should not be held in contempt. The officials, who testified previously that they borrowed $40,000 from the Bankers' State Bank which failed recently, for two corporations, the Liberty and Liberty Underwriters, are charged with disawowing this testimony when the bank receiver pressed for collection. The Chicago Trust Company, receiver for the defunct bank, presented to the court evidence that the former Liberty Life officials first said that their notes were genuine in one court, testifying before Judge R. Gentzel, and afterwards signed statedenying that the notes were valid. The respondents appeared Saturday morning, and the court room was filled and the case was postponed. has been brought out, however, that in some of the proceedings in connection with receiver's for various orders from the court that approximately $30,000 has already been paid the receiver and to attorneys the receiver although not one penny so far has been paid to the depositors of the defunct bank. The receivers, on the other hand, claimed that the action in reopening the judgments was delaying them hindering them in
LIBERTY LIFE CO.'S OFFICERS FACE COURT CHARGE
CHICAGO-W. Ellis Stewart, Earl B. Dickerson, an attorney, James H. Jones, Dr. M. O. Bousfield, W. Louis Davis, and E. H. Carey, onetime officials of the Liberty Life Insurance Company, were cited by Judge R. E. Gentzel in civil court to show cause why they should not be held in contempt. The officials, who testified previously that they borrowed $40,000 from the Bankers' State Bank which failed recently, for two corporations, the Liberty Foundation and Liberty Underwriters, are charged with disavowing this testimony when the bank receiver pressed for collection. The Chicago Trust Company, receiver for the defunct bank, presented to the court evidence that the former Liberty Life officials first said that their notes were genuine in one court, testifying before Judge R. Gentzel, and afterwards signed statements denying that the notes were valid. The respondents appeared Saturday morning, and the court room was filled and the case was postponed. has been brought out, however, that in some of the proceedings in connection with the receiver's for various orders from the court that approximately $30,000 has ready been paid the and to attorneys the receiver although not one penny so far has been paid to the depositors of the defunct bank. The receivers, on the other hand, claimed that the action in the was delaying them and hindering them in
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LIBERTY LIFE OFFICERS FACE COURT CHARGE CHICAGO.-W. Ellis Stewart, Earl B. Dickerson, an attornev, H. Jones, Dr. M. O. Bousfield, W. Louis Davis, and E. H. Carey, onetime officials of the Liberty Life Insurance Company, were cited by Judge R. E. Gentzel in civil court to show cause why they should not be held in contempt. The officials, who testified previously that they borrowed $40.000 from the Bankers' State Bank which failed recently, for two corporations. the Liberty Foundation and Liberty Underwriters, are charged with disavowing this testimony when the bank receiver pressed for collection. The Chicago Trust Company, receiver for the defunct bank, presented to the court evidence that the former Liberty Life officials said that their notes were genuine in one court, testifying before Judge J. R. Gentzel, and afterwards signed statements denying that the notes were valid. The respondents appeared Saturday morning, and the court room was filled and the case postponed. It has been brought out, however, that in some of the proceedings in connection with the receivers' request for various orders from the court that a sum of approximately $30,000 has already been paid the receiver and to attorneys representing the receiver although not one penny SO far has been paid to the depositors of the defunct bank. The receivers, on the other hand, claimed that the action in reopening the judgments was delaying them and hindering them in discharging of obligations to the depositors.
Questionnaire for 'White Band' LIBERTY Applicants (Note: The "White Band" is your favorite outOFFICERS FACE new organization forming to replace door sport? the Ku Klux Klan.) "Marching through Georgia" your name? at the head of the K. K. E. Lee Thomas COURT CHARGE Dixon Tillman. is your attitude toward race relations? Q.-Ever belong to K. K. K.?
A.-Someone asked me to. does K. K. K. stand for? Kool Kovered. evidently realize that the purpose of the "White Band" is to advocate Caucasian supremacy, don't you? outstanding points, if any, do you possess, that will stand you in good stead to join our worthy organization? A.-1 was born in Texas, raised in Georgia, educated in Alabama and live in Mississippi. other odds in your fa- was the sheriff of a far Southern community, once, and all during my term every one of my prisoners were lynched. else? was one of the stepfathers of The Birth of a Nation. other point? years advance man for the dramatic play, The Clansman. is your favorite vocal selection? you firmly believe that the white man should keep to the front? in case of war. your father ever member of the K. K.? his head was too big to get a hood over it. never speak to them when meet them in public. your estimation, what is the most famous expression. that has been made in this country by famous man, during its entire history? Moody's declaration at Sherman, Tex. you believe in the Constitution of the United States? can recite it up to and including the 12th amendment, which as far as know. did the K. K. K. always conceal themselves under hoods feel supreme under cover. you hate the Chinese? A.-Very much won't let you have your laundry without check. you hate the Japanese? A.-Someone asked me to. case war to protect white supremacy would you volunteer? possible, would get my old job back. was that? dollar year man. are fully convinced of the purpose of the White Band, are not you? to re-establish a black ban. Clerk O. K.'s applicant's blank with answers and questions and lines up the next man.
Ellis Earl B. Dickerson, H Jones, Dr. M. Bousfield, W Louis Davis, and E. H Carey, onetime officials of the Liberty Life In surance were cited by Judge R. E. Gentzel in civil court to cause why they should not held in The officials, who testified previously that they from the Bankers' State Bank which failed recently. for two corporations. the Liberty Foundation and Liberty Underwriters, are charged with disavowing this testimony when the bank receiver pressed for collection. The Chicago Trust Company, receiver the defunct bank, presented to the court evidence that the former Liberty Life officials said that their notes were genuine in one court, testifying before Judge J. R. Gentzel, and afterwards signed statements denying that the notes were valid. The respondents appeared Satur day morning, and the court room filled and the case postponed. has been brought out, however, that in some of the proceedings in connection with the receivers' request for various orders from the court that sum of approximately $30,000 has already been paid the receiver and to attorneys representing the ceiver although not one penny far has been paid to the depositors of the defunct bank The receivers, on the other hand. claimed that the action in reopening the judgments was delaying them and hindering them in discharging of obligations to the depositors.
If you want the Patronage of Colored People who buy first class things and lots of 'em, Advertise in The Northwest Enterprise.
LOAD OF MONEY PILED IN FRONT OF CUSTOMERS the past two weeks Chicago suffered the worst financial flurry in its history. Twenwhite banks, several of them with heavy deposits, closed their doors within space three days. The disaster began with the merof the State National banks, institution, with the First National. Half dozimportant institutions which the Foremans controlled were foreed to Depositors throughout the city became panicky. Runs began on the smaller institutions, twenty-four of which closed. in Southside Close Colored people, scarcely recovering from the Binga, Banker's State, and Citizens Trust crashes, suffered severely. The Lincoln State, and State Streets, with $1,000,000 deposits, a good portion of which said to have belonged to colored peo(Continued on Page
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Only $1,200 Cash On Hand Reports Bankers State Bk. (Continued from page 1) be insolvent, bu were discharged. No court action has as yet been taken on four other indictments, including one of defrauding the institution and its denositors of over $2,500,000. Charges of making unsecured loans to themselves and to their friends, of exchanging good bonds for bonds of their own issue of doubtful value, questionable operations with a bond hou e which was a subsidiary of the bank, of padding accounts, and other forms of embezzlement have been made against the Flowers brotheres.. Their operati is have been styled as "a grand steal" by investigators of the bank's affairs. The receiver for the bank is the Chicago Trust company. It is estimated in the report that the total assets of the bank of $920,843 will face a loss of $439,876.04 in conversion into cash. This is entirely apart from the receivership expenses, which has already totalled $86,000.
HOW BANK STOCK OWNERS ESCAPE 35 MILLION DEBT
Failure to Pay Liability Brings Many Excuses.
Holders stock in closed banks in Cook county have liability approximately $35,than one-third the which is still depositors and creditors of the banks. An inquiry made yesterday ceivers ascerthan per cent this stockholders' liability has been collected thus far. Varied by the and JUDGE their They blamed the of courts and dilatory tactics of the Judges have in hearing liability suits, and chancery not too hasty hearing
One Authority Explains. However, bank who not receiver, made the following cases, the suits filed against by depositors appear be 'friendly' inature. That is, they appear to have instigated by stockholders been the purpose of arrivan That the receivers in liability ceedings substantial excuses for non-collection from the evident cases. The CitiTrust Savings bank case point. This closed 'Aug. 1930. Capital stock of outstanding but only $200, handed thus far paid by the
Receiver Is Appointed.
The Chicago Title Trust comin appointed March 1931, after stockholders' liability had been filed Milton Mallin. Attorney undertook to explain the difficulties striving get against "Suit was filed in autumn said. were several defendants and took some get all. Then, time mumber the defendants filed demurrer. "The hearing was originally before Sudge William V. Brothers. He transferred the law courts and the the call of Judge put Stanley heard November, 1931, after number delays the judge would not kender decision test then rending in the Appellate court.
Gives Favorable Decision. court handed down decision favorable to the complainants in our case last January and we asked for ruling from Dudge Klarkowski. The judge refused because the Appellate court decision was be appealed to the state Supreme court. insisted that the Supreme court had already ruled on all points the and he finally set again balendar, where still awaits a hearDepositors of the Citizens Trust and Savings bank paid per bent dividend and still have $750,000 them. The Bankers State bank closed Aug. 1930. Capital Issued was but only $765 has been from an of per stockholder, as are just 765 Audit Not Completed.
A representative of the Chicago Trust said that an audit had not yet been completed because two books, the two banks, be exhas yet been paid of bank, who lost it failed. The Union of Chicago was apfor the Laramie Aug. 16, 1930. Only $1,640 thus representalive the bank We first letters to the holders them to pay their liabilities. The did was up to get the holders. The was Judge Michael was engaged state's had his call to Judge while heard hidassets cases. Trying to Get Action. trying for months to action on the sure will get hearing in the near fuNo dividends have been paid to the Laramie bank, have coming to them. Will Wade is for the and Bank Trust closed April 13, 1931, There but has Mr. blamed attorneys for stockholdfor the difficulty collecting on stockholders' liabilities. 'There telling many around town stockholders that they liability claims,' he receiver's duty first to depayment from the stockholders. Then, he must have an audit made. When suit is filed, stockholder be with notice at cost $4
Takes Year to Get Decree. "Then, the suit usually referred to in chancery also his fees. Getting decree, which virtually amounts judgment, takes from to 18 months. The this is still pending the master chancery." Wade said $300,000 has already been paid depositors this bank will be (within few days, making per The Title and Trust company receiver the State Caponly
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RECEIVER ACCUSED CHICAGO, May 11 (P).-Walter L Hahn, 40, real estate broker and former Circuit Court receiver, was reported named in a true bill voted by the grand jury charging embezzlement of $6,677. The indictment was expected to be returned next Monday. Assistant State's Attorney Dodd Healy alleged that Hahn's accounts as receiver for the Bankers' State Bank Building here showed a shortage of the amount stated. Healy charged the missing money represented rentals not deposited in the receivership account. Hahn denied the charges and claimed the bookkeeping and depositing was handled by others. Bond was fixed at $5,000.
SIOUX CITY PUTS MAYOR OUT AND CONTINUES QUIZ
City Commissioner Takes Office of Man Accused Of Grafting.
Sioux City, Iowa, July 16.—(By the Associated Press.)—City Finance Commissioner D. Spence Lewis took over the job of acting mayor here today to replace Mayor W. D. Hayes, who was suspended under a district court order on recommendations from the Woodbury county graft grand jury.
The order temporarily removing Hayes was issued by Judge A. O. Wakefield on a petition filed late yesterday by County Attorney Maurice E. Rawlings, charging the mayor was "guilty of willful misconduct and maladministration."
The grand jury terminated a third phase Saturday in its inquiry into charges of organized vice and official protection by recommending removal of Mayor Hayes. The jury charged he had failed to act to eliminate "lawlessness" which a 10-week jury inquiry is claimed to have uncovered.
The mayor, who earlier said he would resist removal, remained silent on the suspension. Hearing is set for Aug. 17 with H. M. Havner and Ole Naglestad, special grand jury prosecutors, directing the action against Hayes.
Two Others Resign.
Two other officials here have stepped out of office under pressure and indictments have been returned against 45 persons, ranging from Iowa Attorney General
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BANK RECEIVER IMPRISONED.
Chicago, July 16.—(By the Associated Press)—Walter L. Hahn, 41, returned from San Antonio, Texas, for trial on a larceny charge involving an alleged shortage of $6,630 in the funds of the Bankers State bank, for which he as receiver, was taken to the state prison at Joliet to begin a one to 10-year term.