City National Bank (Paducah, KY)

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Heads Up the time to keep your head! There nothing funny about the closing of great bank. means hardship for many peoThat hardship can intensified by fool talk and fool actions. What has happened to the City National Bank has happened to others all over this country. Not long ago this bank saved millions to by its sumption of the liabilities two other banks which were close and which could have paid cent on the dol-

There is sound reason to believe that the City National due time will return most, not the money its depositors are entitled to. In the the two maining banks are "carrying They are perfectly solvent. The people of Paducah must realize that without the necessary of banks they are helpless. They should rejoice in the fact that in the face of pressure that has whole communities, they still have institutions that can weather the storm. This situation been taken calmly and sensibly by the whole city. has gone usual at the other banks. There have been tears shed and more will be, but not stroyed. The whole world taking licking and those who take best will live to laugh off.

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COUNTY ROAD BOND FUNDS CITY NATIONAL

State and City Money On Deposit; Largely Under Surety Bond

Approximately $50,000 in state and county funds deposit the City National Bank, part protected under bond, en county officials said today. The county, however, the bank money which had borrowed on its anticipated Funds belonging to the city including $8,000 in general and special funds, are fully taken care by depository bond, city authorities They expect to have sufficient cash on hand to meet next payroll. County Judge W. Middleton said that he did not think the county would lose cent by reathe bank's closing. The sum of $45,000, representing the remaining portion of the county's $500,000 road bond issue 1925 and being neld for the purpose of constructing the Hinkleville road, was on deposit to the county's credit. The sheriff's department had approximately $3,700 in tax collections deposit in the bank, all which protected by officials said. State funds on deposit amountto approximately $1,200, the amount owed the fines collected in the McCracken county circuit court. recently placed in the bank by Mrs. Frances Allen, circuit clerk. This sum not bonded. None of the McCracken county school funds was in the City National, Superintendent H. Gentry said today. There were no other official funds deposit, according county authorities. Judge Middleton said he thought the machinery county operation would unaffected.

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DEFLATION OF BOND VALUES FORCES BANK TO CLOSE ITS DOORS

Directors Vote to Suspend Business For the Protection of Depositors; National Bank Examiners Here

KEYES IS NAMED RECEIVER; ARRIVES TO TAKE CHARGE

Examiners Indicate Crisis Caused by Economic Conditions; No Irregularity Seen

The City National bank closed its doors this morning. Notices posted at the bank stated it had been closed for examination by order of the comptroller of the currency. The action was requested by the directors.

Directors of the bank met Tuesday night and adopted resolution that the institution suspend business for the protection of depositors. The bond holdings have diminished greatly in value, and there have been heavy withdrawals of deposits, the resolution said. Robert Neill, St. Louis, chief national bank examiner representing the Eighth Federal Reserve district, and Russell Mooney, St. Louis, national bank examiner for the same district, arrived late Tuesday. Neill has returned to Louis. The examiners announced that Paul Keyes, present the National Bank of Kentucky, has been appointed receiver for the City National. It was indicated that the bank had been forced to close by persistent deflation of bond values and by withdrawals over period of several months. The examiners made no statement to the press and declined to be quoted at this time. Directors Ask Order Mr. Neill was in communication with James C. Utterback, president of the bank, early Tuesday, it was said, and hurried to Paducah in to request response by Mr. Utterback. The directors voluntarily relinquished control of the bank when it became apparent that the institution's affairs were in such shape that the depositors were jeopardized. Following is the resolution passed by the bank's directors Tuesday night after a conference with the bank examiners: "Whereas, the bond holdings of this bank have diminished greatly in market value and large amount of its deposits has been withdrawn, be it resolved, that for the protection of its depositors, this bank suspend business at once, and notify the comptroller of the currency to take charge of its affairs." It was indicated by the examiners that nothing irregular had occurred in the transaction of the bank's business. The crisis was precipitated solely by economic conditions, over which the bank's officials and directors had no control, was indicated. The City National bank was incorporated in 1873. For years it had been a leading financial institution in western Kentucky. Two other Paducah banks, the First National and the Mechanics Trust & Savings bank, were absorbed by the City National about a year ago. Deposits Were Over The bank's statement as of September 29 showed resources totaling These included loans and discounts amounting to $3,466,749.99 United States bonds worth $679,812.50; other bonds appraised at federal reserve bank stock worth $24,cash exchange aggregating $446,861.45 banking house and fixtures valued at $515,261.39, and unitemized resources valued at $89,990.85. The miscellaneous bonds mentioned in the statement were given value of but were marked down $204,152.92 to take care of reserve for market depreciation. The bank's statement showed liabilities of to balance its total assets, in the report of September 29. Among the liabilities were listed deposits totaling capital stock of surplus fund of and undivided profits and reaggregating $78,475.95. Paul Keyes, who was appointed receiver for the City National bank, reached Paducah this afternoon and immediately took charge of the bank. Robert Neill, chief bank examiner for the Eighth federal rèserve district, left for St. Louis after conferring with the bank's directors. Directors of the bank met Tuesday night in an effort perfect a plan whereby the institution might remain open, but no workable plan could be devised, one of the directors stated today.

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Produce Exchange Securities

Mining [By the Associated Press giving sales, high, low and closing quo. Total sales today, 19,300 shares. Hill

DIRECTORS CLOSE BANK

City National, Of Paducah, Moves To Protect Depositors Paducah Ky Oct. 28 The City National Bank here was closed today by order of its directors. The bank September statement $4,807,000 and capital stock of $300,000 J. C. Utterback was president of the was incorporated in 1873 A year ago absorbed the Trust and Savings Bank and the First National Bank after failure of the National which Bank of Kentucky, of Louisville Still "irst National had affiliated Paul tional Bank for pointed today the Currency as The directors announced heavy withdrawals and shrinkage in value of the bank's bond holdings had forced the closing to protect depositors.

Pennsylvania Bank Closed Philadelphia. Oct. 28 (/P)-The Merion Title and Trust Company. of Ardmore, with branches in Narbeth and Cynwyd. today placed its affairs in the hands of the State Banking Department. The institution has assets of $11 478,000 and deposits of $7,300,000.

Crops Biggest Asset Texas and California are the only States among the ten agricultural leaders which receive a larger proportion of their total agricultural income from crops than from live stock,

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City National Bank In Paducah Closes

The City National Bank of Paducah closed its doors Wednesday morning by order of the Comptroller of the Currency after a decision by the directorate to suspend business. Paul C. Keyes was named receiver and began the task of examining the bank's affairs Thursday

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Body Of Utterback Is Found In Lake

Paducah, Ky., Oct. body of James C. Utterback, president of the City National Bank of Paducah, which failed to open for business Wednesday, was found in Noble Lake here today. The body was discovered by his -brother. Will Utterback, who with other members of the family did not return this morning from had started search when the banker walk. Pending an examination of the body the coroner and police withheld comment. Men the bank closed Mr. Utterback issued statement attributing it to recent heavy withdrawals to shrinkage in the value of the bank's bond holdings. The bank, established in 1873, reported deposits of $4,807,000 and total resources of $6,462,000 in its September statement. Its president was one of the best known bankers and financiers 12 wester Kentucky

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Body Of Banker Is Found In Lake body of James Utterback presithe City National Bank Paducah, which failed open for business Wednesday, was found in Noble here The was discovered by his Will Utterback, with other members the had started search when the banker did return this morning walk Pending an examination of the the coroner and When the bank closed Mr. Utterissued statement attributing recent heavy withdrawals to shrinkage the value of bank's holdings The bank. established reported posits of and total sources $6,462,000 in its September

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KEYES RESIGNS AS BANK RECEIVER AT PADUCAH; J. H. HOOKER APPOINTED

PADUCAH, Ky., Oct. 31 (By A.P.) Paul C. Keyes, appointed receiver for the City National Bank, closed last Wednesday. resigned today. Simultaneous with his resignation. Mr. Keyes announced Jeff H. Hooker of Dallas, Texas, had been appointed receiver for the bank. Mr. Hooker arrived today to take charge. Mr. Keyes said his appointment by the Comptroller of Currency had been made with the understanding he would remain in Paducah only until a permanent receiver could be obtained.

Mr. Keyes said his time was taken up with the receivership of the Na tional Bank of Kentucky, Louisville.

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UTTERBACK CASE REMOVED TO FEDERAL COURT

County Will Have Right to Motion to Remand to State Court. petition entered in McCrackcounty circuit court today fects removal of the James terback estate settlement suit and cross-bill of McCracken county against the receiver of the City National Bank from the state the United States district court. transcript of the record will be filed at once in federal court here, according to McMurry, attorney for the bank receivwho entered the motion for removal, which was the grounds that the motion were sustained, the court would have no authority to proceed further in the against the various other defendants. AccordMr. McMurry, ruling does not affect his right to take the action into federal court since filing the petition state court the giving federal court jurisdiction. The petitioner has this right file transcript the record in the district court, but when federal court convenes, the county will have the right motion mand the state court, accordto Attorney Charles Grassham, special counsel for the counThis action will not hold proceedings to settle the Utterback estate unless the federal court orders the removal of the entire that court, Mr. Grassham possible, cording to the attorney, that the federal court may hear the branch to the county against the bank in its claim for but that this will be posed matter of law not because trial in either one court the other would be objectionable.

Asked if he contemplated bringing suit on behalf the county against any other liability the county, Attorney Grassham said was his purpose endeavor to recover the bank directors all whatever of part the county's funds deposit on closing of the bank, or pointment of receiver, that not repaid to the county. This action. he said, based that the bank's directors had ment guilty of ment of the bank's affairs which resulted in the alleged county's loss.

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In witness whereof, I have hereto set my hand and caused my seal of office to be affixed to these presents, at the City of Washington, in the District of Columbia, this Eighteenth day of December, A. D. 1931. (Seal) J. W. POLE, Comptroller of the Currency.

Treasury Department, Office of the Comptroller of the Currency, Washington, D. C., January 11, 1932. Notice is hereby given to all persons who may have claims against "The City National Bank of Paducah," Kentucky, that the same must be presented to Jeff H. Hooker, Receiver, with the legal proof thereof within three months from this date or they may be disallowed. J. W. POLE, Comptroller of the Currency.

NOTICE This is to advise that the doors of the City National Bank of Paducah, Kentucky, will be open each business day from 9 a. m. until 2 p. m. for the purpose of permitting its customers to file proofs of claim and transact other business.

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NOTICE This is to advise that the doors of the City National Bank of Paducah, Kentucky, will be open each business day from 9 a. m. until 2 p. m. for the purpose of permitting its customers to file proofs of claim and transact other business.

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FORMER BANK RECEIVER INDICTED FOR EMBEZZLEMENT

PADUCAH, Ky., Jan. 30 (By A.P.) Eugene Bell. former receiver of the Ohio Valley Bank and Trust Company, was indicted today on charge of embezzling $17,776.18. Jesse R. Fuqua, who worked with Bell, was also indicted for abetting. Bell. who recently resigned as receiver, was formerly cashier of the Mechanics Bank, which was taken over by the now closed City National Bank here.

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INDICT BANK RECEIVER

Paducah Man Accused of Embezzling $17,776 of Funds.

PADUCAH, Jan the Valley and and were by the Mc. Cracken grand jury today charge of of the bank's funds. The charges that Bell the that Fuqua, who bank actions and aided and abetted in the crime. Bell assistant cashier of the City National which closed last October. He suffered nervous after the closed, and has been in ill health bench warrant for the arrest Bell and Fuqua was issued this aft. but Sheriff Claude Graham would not be served unnext week

NEW BUS LINE OPENS. Ky. Jan new its first bus Fulton to Murray this morning.

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CONTINUANCE

FEDERAL COURT'S APRIL TERM WILL OPEN ON MONDAY accused but expected missed also convicted the attempt intimidate the witness Hunt and Bryan accused Pete and Huntalleged extorting money from them threat James Otto Clark and the Bryans charge liquor between GoldPond, Illinois. Deand scheduled The tried term court but hung jury resulted.

Charge Intimidation

Hopper will be tried on charge intimidating and impeding witness, Jule Dowell, had been ordered to appear and testify in the liquor trial. Dowell was spirited out of Paducah the Bryans and Hoporder to prevent testiprohibition officials charge. Beadles, former official the defunct First National Bank accused three separate indictments of violation national banking charged used his position fraudently obtain loans himself and made false bank reports. Eugene Bell and Jesse former Paducah bank ployes, who are accused in state charge $17,000 in funds the defunct Ohio Valley Bank and Trust probably will be tried federal court. federal charge been brought against them they have been indicted. assistant cashier funct National Bank. receiver for the Ohio Valley bank Fuqua bookkeeper The cases outstanding importance the civil and equity federal court dockets involve suit involving the defunct City National Emmett Holt. ex-sheriff and city of public safety defendant suit brought the state seek turn $15,000 alleged Holt from he made sheriff.

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BANKER CONVICTED

PADUCAH, Ky., April 21-(A)Eugene Bell, assista cashier of the defunct City National Bank and receiver for the defunet Ohio Valley Bank and Trust Company, and Jesse Fuqua, an employe of the City National, entered pleas of guilty in Federal Court today to charges of violating the national banking laws Bell was sentenced to three years in prison and Fuqua to year and a day, Fuqua's sentence was probated on plea Bell that the court be lenient. Bell assumed all the blame and admitted he embezzled approximately $30,000 from the two institutions.

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PADUCAH BANK DEPOSITORS TO GET $500,000 DIVIDEND

Paducah, Ky., June 13. Payment of 10 per cent to depositors of the closed Paducah City National Bank will be made soon, officials of the institution have nounced. The payment will approximate The bank suspended business October 28.

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Church Trustees Sue Bank Receiver

Suit filed this afternoon McCracken circuit court by the trustees the Immanuel Baptist church against Jeff H. Hooker, receiver for the City National Bank, seeking to remove the bank trustee for $30,000 bond issue floated by the church in 1927. The plaintiffs are Guy Holland, Clyde Lofton and Ted Cooper, representing the board of trustees. The suit alleges that the First National Bank was originally trustee of the bond issue. When that bank closed, City National appointed trustee. The board now asks that defunct City National be removed as guardian of the bonds. The action was brought by Attorney Ben Adams.

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CONTINUANCE

SOMETHING NEW LEARNED FROM TOTAL ECLIPSE

Imperial Observatory under Prof. Okuroh Oikawa. They came the longest distance pedition and selected Bartlett, for their site. But bad luck prevented them from reaching Bartlett they settled down Alfred, Me. There seeing perfect, while middle cloudy where numerous portant expeditions had wrecked. Evidently there "puddles" the Some astronomers ported the "shadow bands" were entirely missing while them clearly. These bands are shadows rippling over earth durtotal eclipse, ascribed action the atmosphere on light similar that water when shadows be seen flitting across sandy bottom.

Claim Eclipse Late

Two eminent astronomers chargthat "celestial express,' the moon's shadow, was late from 10 seconds. Something must done about this tardiness, in the opinion astronomers. for extremely refined accuracy about the moon's motion the basis of practical calculations used by man. particularly of the tide charts used sailors. The Harvard expedition was among "perfect seeing" and its members returned Bosenthusiastic in the belief they new grip some the mysteries what corona. They obtained this information by measuring coronal light in manner which may how much flection from solid particles shooting the sun's surface like popping corn. because they were designed for special and special pursaid. Kirk agreed that attorneys for both the county the bank re-draft answers the clarify an objection Mr. the Commonwealth Kentucky being inade party in the suit The petition with the wealth by and for county, plaintiff. Mr. Kirk ruled that McCracken county alone should be the plaintiff The original case filed in circuit court against the bank's receiver and the Utterback estate was removed Federal court the defendant, and the suit was remanded court FedCharles Dawson, with the that portion the the City National

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Officials Say Bank Holiday Not Necessary

Purchase Incensed at Action of Governor; Declare Situation Normal Except For a Small Area In Northern Kentucky

Only one bank in all West Kentucky today was affected by Governor Laffoon's "bank holiday" proclamation, and that one institution, the Kevil bank, was closed for only today and will reopen Thursday morning as usual. "Business as usual, unless the other action," apparently was the slogan this morning of all the bankers of the First District, who declared they could not understand Governor Laffoon's reasons for claring the "holiday." From all the bankers came expressions of confidence in their institutions and in the willingness of the public to cooperate so that no harm could result from this situation. Purchase bank officials were incensed by the action of Governor Laffoon, saying the bank holiday was not necessary for Kentucky. They declared the banking situation was normal except for a small area in Kentucky near Cincinnati, where some trouble was experienced because of the Ohio situation.

Paducah's two banks will not take part in the four-day "bank holiday" declared by Governor Laffoon and will remain open for business as usual, officials of the institutions announced this morning. "We can see no reason why our bank should be closed," said Richard Rudy, president of the Citizens Savings Bank. "We will not take advantage of this proclamation issued by Governor Laffoon unless the attitude of the public forces us to do so. Therefore our institution will remain open for business as usual." "My opinion is the same as that expressed by Mr. Rudy," Robert L. Reeves, president of the Peoples National Bank, declared. "The Paducah banks are in sound financial condition, and therefore have no desire to suspend business. The Peoples National Bank will not close unless the public forces us to do The cooperation of the public so that the ordinary business of the banks can be carried on without a halt was asked by both the officials, who pointed out that the Paducah banks are in no danger unless the depositors withdraw their funds entirely without reason.

Both the Citizens Savings Bank and the Peoples National Bank easily weathered the "run" which followed the closing of the City National Bank in October, 1931, and emerged with the confidence of the public in their financial soundness. All pay checks issued today by the Illinois Central to employees will be cashed immediately, Mr. Rudy and Mr. Reeves said.