1.
March 5, 1933
Richmond Times-Dispatch
Richmond, VA
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Roosevelt Warns Invoke War-Time Power As Hail To Meet Crisis 250,000 Inauguration; Two-Day Holiday Declared For Virginia's Banks
Pollard Cites Pressure; Federal Reserve Heads Summoned by Woodin
Action by en Only After Banks in New York Are Closed by Temporary Holiday
Order Is Preceded By Discussion
Bankers AdvisReserve ed Moratorium Forced by Outside Influences Crisis Over S. in
A mandatory bank holiday in Virginia for Monday and Tuesday was last night by Governor proclaimed while in Washington atPollard, tending the Roosevelt inaugural ceremonies. this power, GovIn exercising Pollard said his action was ernor taken upon the recommendation of Reserve banks of the the Federal district. "Since making my statement of Friday night," the Governor's an"there have nouncement been unforeseen developments New York and in other financial centers of the country where bank holidays have been declared. night Governor Pollard Friday necessity day view of Virginia's law permitting banks to restrict withdrawal of deposits, subject to approval the State Corporation Commission Pollard's statement last night, in reference to the New York bank holiday development, which included closing of the New York Stock Exchange and Cotton Exsaid: "This new development changes the and imposes an undue burden upon the banks of Virginia. "While Virginia has statute which under less critical circumstances would meet the situation through application of the banks to the Corporation Commission, the machinery incident to the operation of this law would cause delay which must be avoided under existing unprecedented conditions. "In order, therefore, to relieve the banks of the necessity of making separate applications with the recommendation of the Federal serve banks of this district, declaring legal holiday operative for Monday and Tuesday. March and through the State and binding all the banks." Governor Pollard's announcement of the two-day banking holiday came few hours after Richmond bankers conferred at the Federal Reserve Bank of Richmond, the conference being attended by M. Bristow. State Banking Commissioner, and Assistant AttorneyGeneral Collins Denny Jr. Virginia remained one of the last States to declare banking holiday. and the closing was forced upon banks because of the pressure outside influences, was learned last night. Most Virginia banks maintain balances in New York City. The sult of the closing there was that New York corporations with deposits here drew on Virginia banks, which in turn saw part of their funds tied up in New York. The strain on Virginia banks began with the declaring of bank holidays in Maryland, West Virginia, Kentucky and Tennessee, neighboring States, and the closing of large bank in Washington, Despite this ring drawn around the Old Dominion, this State maintained normal banking until the New York closing precipitated crisis which caused member banks of the Federal Reherve Bank Richmond. in the interest of their own depositors, to recommend State-wide closing for two days. The New York holiday was proclaimed for yesterday and tomorrow. Reopening of New York banks Tuesday would clarify the Virginia atmosphere, as well that of other States, was stated last night by local banker. considerable sum was withdrawn yesterday from banks, but there was action suggestive The American Bank and Trust Company applied the agreements passbook contracts savings accounts the extent of limiting withdrawal savings account deposits without notice $10. learned yesterday that the Federal Reserve Bank during the past ten days has lent
Continued on Page Seven.
Call for Discussion of Bank Situation Comes Just After New SecreGoes Into Office tary
2.
June 7, 1933
Richmond Times-Dispatch
Richmond, VA
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collateral for This an encouraging indication The complete text of the statement by Oliver Sands president of the American Bank and Trust Com pany organization years ago, "At the meeting of the stockholders held on May full report that time The of the bank has been and not until June was the report of the available the directhe "The directors officers have not had the opportunity to make an amination of this report in every detail, being very voluminous docucovering of assets and liability and making up over the would be contrary all good public the names of the borrowers and their information relating their private affairs. and it. might work great injury to debtors to have publication their indebtedness this institution. as it would misunderstood and cause action by others which would embarrass individuals, firms and corporations which have dealt with us in confi dential way. disclose such details of the report would be to betray business which standpoint of good good business do not right my deal very frankly with the stockholders bringing such salient and important results this examination your tention affects the financial standing of the bank reported by the Estimates of Examiners. desire that these estimates are made by the not in by the and in which they are familiar and the of by the examiners are much than have ever those most familiar the affairs of the The duty facing the aminers was appraise assets on the market April The slight change in conditions which has already been experienced has appreciated many the sets, both directly held and held as "The did not criticize the and directors. the large capital the the credit standing the concerned and the value the collateral. this not venture out proportion to the of conservative This list directors, course, means the directors the bank on the 15th April and not the that have recently been appointed by the depositors' only to say that the (doubtful and estimated) the basis present day and prices. Already the conditions have resulted the value the assets both owned and held collateral by the bank. With of the business improvement reasonable rise real estate these figures would necessarily be adjusted upwards. Obligations where moral are highly regarded and where are sands the decrease the value should not make the loan valueless. for the character the citizens constitute an intangible asset which the not justified taking into but which very sound and the loans are liquidated report in great and length the management the They make no comment After of study and consideration as what would the best the this bank and after the advice of the highest authorities the the approval of the nance Corporation the Federal Rethe Clearing House banks of the City and upon the dation exhaustive the has that the terest this bank new bank be for the purpose assets and business the institution for the benefit its creditors would seem hardly necessary say that anything other than orderly the assets the would in loss and that many the bank further secured handled orderly and dollars which on this market. appear intelligent handling fully This experience this bank and by all others who deal credits
Outlines "The plan for the organization of new one which being put effect all the country the reports from those already established are most new bank will be organized for the purpose creating type of advance will be made by the and upon the the bank that the this bank will placed their credit the such of their deposits in this
Board of Directors Report To American Stockholders
Continued From First Page.
Loss estimated examiners REALTY real holding tracted. Owner 95 parcels of real estate for company con-
Original cost of properties $1,711,974.79 Recent appraised value Amount HAMPTON GARDENS DEVELOPMENT tirely owned Holding pieces real estate improved and unimproved. All taken for debts acquiring value Mortgages outstanding Appraised of properties Amount Loss estimated examiners assets the bank the date the examination and doubtful shown by the date Loans and Main Office Branches Past due Loans Bonds and Securities Overdrafts Shortages Accounts Receivable Escrow (Debits) Remittance Accounts and Securities 1,642.70 2,376.30 Debit against Savings and American Trust of Wm. 3,000 Barclays in Exchange 00 600 capital of the bank at this date was Surplus Profits Reserves losses and depreciation
Total From this see losses estimated the examiners are $33 less than the reserves the institution the management bank Under head and quote the lowing from report kept in book of directors stockholders' Did you inspect the minutes of directors' and stockholders' meetings since important received from supervising far as know spread the minutes? examination Federal Reserve State and the board directors? Executive discounts directors and their firms specially acted upon the there active Discount Committee? Are minutes kept action taken by Book over active Examining Are the not completed acted officers directors acted upon as answered in the in the question preceding There examiners' report the department They that and found possession proper includes department as well as safe custodian examiners their report the following examiners public's best the this through that Examiner of Banks and (Virginia) by Respectfully submitted
HARRIS Chairman. Board Directors HART. bank as may be possible from the this loan. The new bank will start out out any obligation with fresh and capital and The earnings the established which will be able take over and from service will render the tion of the old bank will make this Institution success from the start and with its facilities contacts with the customers the old it should render at much lower the the old bank than be possible any other closing this report the will repeat the statements heretofore made the causes leading closup the ing of and its failreceive license reopen. The consequences of this depression have been serious and fatal in many the entire nation. banks have been the victims Only One Failure "Richmond fortunate that has only one bank that was seriously affected by the heavy withdrawals prior March In many cities banks were and the intelligent self-interest has induced great consideration the part the people and the for the number of the city of Philadelphia and throughout Pennsylvania have been an additional period months work out their plans here the many and depositors this bank for their kind expressions their great patience and considera- responsibility for any other form liquidation be assumed by those considering the than tors who will be directly such the that responsibility of may permitted add personal word to this would say for silent pending the of report has been source of very great regret passed through time acute business depression. This not be better shown taking different stocks on the New Stock Exchange On January 1930 they were valued In December 1932 the were valued therefore, that the estate and loans held by this bank should depreciation Already there improvement April 15. statistics lists 421 whose been 64 per cent from April Demands Cited. "During the fall the culminated in an exhibition of mob psychology rarely in the country Had that state of mind existed for few more and had not every bank in this country been venture to say that there are banks which could have withstood another the unusual drains and it. now fee] justice to myself, the directors and the loyal officers and employees, the the Richmond that should say that the most drastic to which any bank Virginia ever been submitted has shown that there are irregularities. but that the mistakes which been made were primarily the mistake such, of exerting of the bank for preservation the business and this City, and secondly taking advantage of the opportunities by the administration the R. with which carry on the helpful work this institution has trying to maintain and enlarge Richmond's business life 'Having spent years in building this institution having invested in my own and my family's cannot regard myself one but the largest individual the of the bank share with you the banking different that other The pubno than the depositors and the Anything life of this City that affects adversely 50,000 banking cannot be The obligation rests upon all aside any self so that can done, and that which the best of the firmly believe and that belief confirmed by the mature the Clearing House Banks of and by the examiners of this bank. the plan suggested best for the is best for the City of
Economical Management. easy make and circumstances as these think
3.
June 8, 1933
The Washington Times
Washington, DC
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CLARK'S BANK ACCOUNT PROBED AT EMBEZZLEMENT TRIAL CORPORATION OFFICIALS AT SENATE BANKING INQUIRY FOOTLIGHT NEWLYWEDS RICHMOND MAY STATE TO SPEED GET NEW BANK PRESENTATION RICHMOND, Va., June 7. (U.S.) Great pressure was being brought to bear today in behalf of a proOF EVIDENCE posal to organize a national bank to take the place of the American Preliminary Witnesses Testify Bank and Trust Company, a 32To Forwarding Checks year-old $19,000,000 financial inTo Former Clerk stitution which has been operating under restrictions since terThe Berry E. Clark embezzlemination of the presidential bankment trial, which is being heard ing holiday. for the third time in Rockville, In recent years the American the first two trials having rehad been advertised as a bank sulted in hung juries, is expected to speed up today, with many of with $3,500,000 capital and rethe preliminary witnesses out of sources of $24,000,000. Most of its the way. recent difficulties were due to Lewis F. Bond, head of the heavy loans on real estate. staff of accountants who made It is now being contended that the audit in which the alleg-d the property collateral will have shortage of Clark was revealed, to be sacrificed for a great deal was the star witness yesterday. He identified checks received less than present value in event the bank is placed in charge of from Clark and told of the audit, receivers. It is reported that which he explained upon crossholders of valuable mortgages will examination was but one audit lose more than 20 per cent by liwith two reports. quidation of the old bank's af Discovers Private Account fairs. Bond told how he and Roger At a meeting of stockholders J. Whiteford. counsel for the late yesterday a resolution was asked adopted favoring establishment of a new bank to liquidate the AmerJONES GINN MURPHY BARRETT ican's assets. A report of bank were that were. county where the They the commissioners, checks sheriff's were told, remittances deposited he said, examiners showed the American ney, as they appeared today at the hearing of the SenHERE ARE D. S. Barrett, treasurer of the Alleghay in the bank in the name of Berry has suffered losses of $4,851,968.94 Clark, clerk. ate Baning and Currency Committee investigating the Corporation; John P. Murphy, Secretary; Frank H. Ginn, and that $1,619,671.78 in assets is Bond declared he said: classed as doubtful. banking situation. Times Staff Photo. Cleveland attorney, and Thomas H. Jones, also an attorClark you told me beno official
4.
June 14, 1933
Richmond Times-Dispatch
Richmond, VA
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Loan to Receivers Promised by Body
Money for Distribution To Be Had on Receipt of Proper Collateral
Two representatives of the deposiprotective the American Bank and Trust Company Richmond. hands yesterday with in the pects for national arising from the closed but ceived according to Washington Thomas Gay T Justin Moore, who declined their identity to Washington newspaper correspondent also with the the prospects of the receivers securing loan for purpose making an desurance loan would made requested receivers and backed acceptable collateral. The depositors' committee representatives conferred for twenty minutes with Jesse chairman the after which they went to the legal division up the Bank situation kept in touch the refused the tion here indicating that anything might say at the time would have tendency differences between divergent interests in the bank Hart Not Informed
Harris chairman of the positors which lost its fight additional time for new bank and also one its representa one the three Julien Gunn. said last the Mr and Mr with the Washington The John T Wilson acting for the Bank and Trusts, and Logan Ritchie and Sherlock they had information the purpose of the visit Gay Mr. Moore had been vised : to the result of their conferAccording to the Washington dis Gay Mr. Moore left the with the that many depositors the present and believe will the up process of extracting depositors money well expensive The an audit of the bank ficial what they will held for that step made toward the for loan, understood
No Although sympathetic few weeks the new bank plan. means liquidating the American officials did not Richmond representatives encourage yesterday pointing out that the has been who now have institution plications submitted the must forwarded by the group appointed take charge of the assets the old bank The that the Federal Reserve Bank of
Continued on Page Three
5.
September 30, 1933
The Richmond News Leader
Richmond, VA
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Bank Receivers Sue for $8,300 suit for with interest and attorneys' has been filed the law and equity court the receivers for the American Bank and Trust Company against Davis Brothers, Loth Breeden, Inc., Lee Davis and Loth. The claim the amount sued for due promissory note given the bank carries interest from June 1982. Jenks also papers against and trading as James Fox for $776.81 claimed to due account for material wiring the Grace hospital annex.
6.
October 20, 1933
Richmond Times-Dispatch
Richmond, VA
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Basis For Told By Counsel of Bank Directors
Lawyers Offer Co-Operation to Judge Ingram, But Doubt Need for Investigation; Intend No Criticism, They Say
Directors of the closed American Bank and Trust Company of Richmond, who are being sued for having declared dividends illegally. accordformer officers of the instituto the yesterday joined ing of the bank's affairs. tion in welcoming grand jury probe
Appearing before Judge John L. Court. Henry Riely and for the directors. said they criticism Attorney action in but felt there jury was basis for the probe. They sured Judge their clients cooperate the probe. feanwhile, receivers of the bank expect that appraisers from the Corporation will be here Monday to begin valuation bank's assets relative to the the for loan of ceivers' be utilized in paying to depositors and settling preferred claims. estimated that the R It was will two weeks for personnel require with another week's time their required put the through Washington On this that checks be hopeful for in plenty of time for Sherlock Bronson and Justin receivers with officials Washington Wedhad statement to their return other upon than that depositors would say cent less in return for each of assets will receivers' appraisal substantial depositors within next few weeks.
7.
November 23, 1933
Richmond Times-Dispatch
Richmond, VA
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Month Granted Holders to File BankSuitReply
American Receivers Object to Order in Action Seeking $600,000 Recovery
Gunn yesterday entered an order giving stockholders the American Bank Trust Company Richmond thirty days after pending pleas are disposed file answers the suit brought to more than paid them in Chrisfor the bank receivers, objected By this extension of time stockholders are not liable default, was pointed out in legal circles. Cabell and R. Grayson Dashcounsel for the stockholders headed by Fensom. filed pleas in and general the behalf of approximately 400 In their answer they ask Judge Gunn to disthe bill filed There eight other lawyers already record aid the efforts Cabell and Mr. Dashiell to defeat recovery dividend payments They are Archie Robertson. Wyndham John Wingo. Stuart ChrisDavid Meade White and Joseph William C. Bibb of Louisa, and Butzner of matter of conjecture among whether ceiver's suit against directors alleged illegal declaration dividends will precede follow the suit lodged against stockholders. There are 1,200 defendants among the to extent the being the largest its kind filed in Virginia.
8.
December 5, 1933
The News and Advance
Lynchburg, VA
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To State Reasons For Bank's Failure
Former Officers Of American Bank And Trust Will Testify Today
Richmond, Dec., for the failure the American Bank and Trust Company of Richmond will stated under oath tomorrow former officers of the closed testify before W. Kirk Mathews hearing on claims that responsible officials knew the bank to insolvent deposits inspected. claim, first made by May, and the which was the largest depositor, hundred other depositors the two original claimants in asking preference over general Bristow, state commissioner banking Logan Ritchie chief state bank and until recently receiver the American Bank Oliver Sands, and the bank during its of years are among moned appear witnesses. are Walter HollaWilliam Camp, Hill, Carter Cocke, Perry Seay, Randolph Vertner, Mann. Gregory, Cabell Sauer, Jr., Stewart Wilson. Mr. Wilson, president of the Commerce Trusts, acting the receivers, T. Justin Moore being his Mr in charge of and the City bank when Ryland. appear for Christian Louis counsel receiver, will attempt defeat preference
9.
December 6, 1933
The News and Advance
Lynchburg, VA
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Depositors Cannot Cite Receivers' Allegations
Ruling Made At Hearing Of Suit Against American Bank And Trust
Richmond, Feb. 5 (AP)-Allegations made by of the American Bank and Trust Company of Richmond against directors and stockholders in a suit to recover dividends allegedly declared and paid unlawfully, cannot be cited by depositors in of preference over general Commissioner Kirk Mathews ruled today. The receivers pending suit was cited by City James Cannon and Attorney W. H. Ryland, Jr., in an effort to prove their that the bank was insolvent before March 4, 1933. The hearing will be resumed tomorrow "The morning. hearing today also brought forth the from John Wilson, of the bank's receivers, that the source of information on which the suit against directors and stockholders was based was the audit made by A. M. Pullen and Company. Frank Stewart, in charge of the Pullen audit, testified that relatives three minor officers of the bank. working in branch offices, withdrew their funds shortly before the bank was closed. Oliver J. Sands, president of the closed testified that he exchanged his American Bank stock for stock of the bank shares corporation formed to deal in stock of the American and other banks. When questioned regarding the line of credit extended by the American to firms and corporations of which he was an officer or director, Mr. Sands asked for oppor"tunity to the records and he was It was expected he would be recalled testify tomorrow. During the hearing, City Attorney Cannon at what he described as the "hostile attitude" taken by the receivers for the bank to defeat preferred claims. M. Bristow, state commissioner of insurance and banking, testified that the American Bank was not examined for year before its close. "The law our department to examine banks at least twice year.' Mr. Bristow said. adding that "I regard the statute as directatory not mandatory. Asked if he considered that the law had been violated by failure the department the American year before its close, Mr. Bristow guests of Mr. and Mrs. T. N. Giles in Robert E. Loving who is employed in & C. camp at Thanksgiving "day with his father. Houston Loving here. Mr. and Mrs. Woodrow Hatter of Waynesboro spent the past week-end with their parents, Mr. and Mrs. D: K. Hatter Tyro and visited relatives on Sunday Mr. and Mrs. W. E. Massie of Tyro are visiting relatives and friends in New Jersey. The night bridge club met in the home of Dr. and Mrs. Homer E. Clarke near Massie's Mill on Friday evening when score prizes were awarded and refreshments were served. said that for bank the size of the American, It took force of from twenty to twenty-four examiners to do the work. "We had only nine examiners, and some two hundred state banks to examine. he said, "Obviously the task was impossible of fulfilment." He said date had been set in February to examine the but called off because of unsettled conditions in Baltimore and elsewhere. "We hoped." he said. "after March that the American would be reorganized.' In the course of the hearing. City Attorney Cannon said that "we can prove our claim of insolvency only by circumstantial evidence.' now.
10.
December 8, 1933
Danville Register and Bee
Danville, VA
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CITY OF RICHMOND WITHDRAWS CLAIM
Seeks to Speed Bank Receivers' Chances of Se. curing RFC Loan city of Richmond today withdrew its preferred claim of $558,000 against the assets of the American Bank and Trust Company of Richmond and consented, at the request of the bank's receivers, to accept the status of general creditor in order to speed the receivers chances of securing a large R. F. C. loan and making a dividend distribution to depositors. Encouraged by the municipality's action, receivers began taking steps to secure the withdrawal of all other preferred claims based, like the city's, on insolvency, the total amount being estimated at $2,000,000. Roughly, any sum made available to the bank receivers by the Reconstruction Finance Corporation, over and above $2,000,000, is expected to be disbursed to general creditors at the earliest possible moment. Receivers will hold conference with R. F. C. officials tomorrow relative to the bank's loan application. There has been no indication as to the sum the R. F. C. will lend on the closed bank's assets. but in view of the federal government's liberalized policy it is held in financial circles to be not unlikely that the initial distribution to general creditors may amount to twenty five percent. Following special meeting of the council finance committee at the mayor's office, Mayor J. Fulmer Bright, authorized the announcement that by unanimous vote of the six members present. the committee consented to withdraw the city's preferred claims.
11.
December 15, 1933
Richmond Times-Dispatch
Richmond, VA
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Liquidation Head Gives His Approval
Release of Preference Claims Seen Aid in Quick Consideration by Officials in Washington
By Radford Mobley Washington Correspondent construction Finance receive for action tomorrow the American Bank and Trust Company application for loan. mitting cash dividend Richmond in the near Robert V. Fleming. chairman the Federal commitfor that district, here Following weeks intensive activiwhip the loan application shape at Fleming said received by his office here and be turned over once corporation for final action. understood that Fleming has approved the could learned was for the entire asked smaller
RFC Officials Silent
RFC officials today stated no comment would made until the plication has been but dicated that action would pedited in the belief that all possible should released to American early there no doubt here the corporation will today substantial the the full for mond other interests against believed the release much as posonce depositors. Fleming Comments Discussing the application Fleming said: state that has been received and will submitted RFC final action tomorrow that action will quickly officials anticipated RFC the application today. Inreceipt dicating them the tion final form and them for consideration this work by the liquidation comAll loan application has The Fleming certified the figures of the various recent months. And accounts in to the RFC. It believed this work the light conditions." and the recomchanged request for mendation carries considerably larger than was proposed last March reopen the bank under liberalized of the administration has been policy adopted.
To Charge to advanced will be lent Funds the the will interest loan cent the bank's total than request is substantially than this figure. Action come any day may that the Richmond loan application has been given bank
Continued on Page Column
12.
January 2, 1934
Covington Virginian
Covington, VA
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TO AVOID GRAFT BY RECEIVERS
(By The Associated Press) RICHMOND, Va., Jan. 2.-Gov- ernor Poltard today said that in his message to the General Assem- bly he would reitterate his proposal that liquidation of closed State banks be accomplished through the State Banking Division and not through receivers
His statement was made in com. menting (on the criticis(m of the amount paid receivers for the clos- edjj American Bank and Trust Company of Richmond, which was declared by Mayor Bright to be
"shockingly exorbitant." The city was one of the Margest depositors in the bank. Its receivers who were lawyers, employed more lawyers and in the end the fees ran
13.
January 3, 1934
The Richmond News Leader
Richmond, VA
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CANNOT JUSTIFY TO BANK RECEIVERS. Leader: allowances the attorneys the AmerBank and Trust Company shocking. commend Mayor Bright for his criticism of Judge Gunns liberality granting such sation the and attorneys the defunct American Bank Trust The writer should like to ask these attorneys that should granted liberality. indeed that they should lavished with pay? appears that his honor Judge Julien Gunn. has the that very unlike receivership. sadly different because are depositors. some children, orphans persons almost poverty bank's state. depositors understood that the receivership kept minimum. this done? writer with Mayor Bright his protest
14.
January 4, 1934
Ledger-Star
Norfolk, VA
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COSTS CALLED 'EXCESSIVE'
Layman and Byrd Urge Action to Protect Depositors of Closed Banks
New Castle, Va., Jan. islation providing for the State banking department to be empowered to discharge the duties of reof defunct banks will receive support Senator George W. Layman, he has announced, at the General Assembly convening next week. The senator made this statement when asked the allowance of $60,000 granted by Circuit
Judge Julian Gunn to Sherlock Bronson and Justin Moore. the ceivers American Bank Trust Company at Layman said that although he had been opposed to vesting such power with the banking department, he now had reached the conclusion that it would be to the advantage of Senator Layman voted against legislation providing for the State to discharge the duties of bank receivers when such bill was introduced at a recent session of the legislature. Now, however, in view of the Richand others, he said, he in favor of such legislation. Byrd Calls for Action lief that the time has come for Virginia and all other States to adopt legislation preventing payment "excessive" compensation in settling the affairs insolvent banking institutions is expressed by Senator Harry Byrd in correspondence with the Reconstruction Corporation. The Virginia senator, in 8 letter addressed to Jesse J. Jones, R. F. chairman. commented on court allowance receivers of the American Bank and Trust Company of Richmond and their attorneys of fees which he said were "exorbitant." The fees, amounting more than $60,000, were allowed by Circuit Judge Assembly Byrd said he hoped the General Gunn. at its next session would provide for the State banking department to take over the affairs of all insolvent institutions 'allowing reasonable compensation for such only expert assistance as must be employed to perform this work.
15.
January 5, 1934
Evening Herald Courier
Bristol, TN
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RECEIVERS FAVORED, BYRD
Senator States $60,000 AIlowed By To Agents Liquidating Closed Richmond Bank
WASHINGTON Jan. Senator Byrd of Virginia said today correspondence with the reconstruction that "the time come for Virginia, and all other states, adopt legislation preventing payment of exces. compensation settling the affairs of insolvent banking institutions." The letter addressed Jesse Jones, RFC chainman, and concerned court allowance to ceivers of American Bank and Trust company Richmond and their attorneys fees which Byrd called "exorbitant." The fees amounting more than $60. 000 were allowed by Circuit Judge Gunn. Byrd said he hoped the general assembly at its next session provide for the state banking de. partment take over the affairs of insolvent institutions lowing only reasonable compensation for such expert additional assistance must be employed perform this work." Byrd's letter tfollows: desire to confirm by letter to you my verbal protest made yesterday your assistant, Honorable Clemi Shaver with respect the payment excrbitant in connection with the liquidation the affairs American Bank Trust Company "The failure of this bank was one of the greatest financial distresses that has ever Richmond, thousand depositors and many stockholders. realize that perhaps you have no direct control the penditures, but in view of the plication pending for additional loans this institution think you would be this position would be glad supyou-in requiring that the affairs of the conducted very economical and efficient basis, funds spent reduce the assets of the bank. am not attempting to say what just and fair compensation to pay the lawyers and ceivers, do think that the compensation now authorized, until January first only, and which will be supplemented later, is exces-
16.
January 5, 1934
Richmond Times-Dispatch
Richmond, VA
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Cannon Prepares Bill of Review
Gunn Will Be Requested to Reconsider Order; Bright to Confer on Plans for Legislation
Mayor Bright yesterday urged the Bank of Commerce and Trusts. one three receivers of the American Bank and Trust Company of Richmond. to join the other two receivers in about review and rebringing duction fees which the Mayor termed princely and exhorbitant. John Wilson. president the Bank of and Trusts. of the business out City meeting York, learned. United States Senator he had Harry Byrd from tion that every and all influence effort exerted to prevent of excessive fees and receivers of American bank. both with respect and fees future already authorized Acting on the request of Mayor Bright, City Attorney Cannon is preparing formal bill review whereJulien Gunn will be urged Judge fees of each the Bank and Trusts and Bronson. Moore, receivers, and Barton and Parker. for receivers. Mr Bronson Moore letters to the mayor indicated their accept which satisfactory to the mayor
Mayor Comments
In brief statement Bright hope the presithe Bank Commerce and Trusts will, after more mature flection. his colleagues signify willingness to have case viewed and agree substantial compensation for services rendered our distressed people. Acting over the large ringing in his for o'clock to diswhereby the General Asnext week, will asked pass recurreceivership fees ginia. The mayor asked Richmond delegation the legislature, the three members of the State CorCimmission, and State Bank Bristow with him at City Nine the invited talk the matter with the are leading the may obtain helpful how the of exceslaw exists in North whereby closed banks are liquidated little cost by the State Banking may the of legislation in Virginia,
Wicker In Delegation
Richmond's delegation consists of Senators Wicker. R. Fuller Hill and Delegates Charles Albert William H. Horace Edwards and B. Eng Hooker and W. Ozlin the State Banking Commissioner the conferees. Delegate Charles speech before the First Club last night denied statement published yesterday that legislation providing for the receivership closed banks had been blocked by members the General Assembly since Mr. Moss said that such measure had the 1932 by Senator John Wicker. and Senator but had held up in the Senate close the session and as member of the he,
17.
January 9, 1934
The Roanoke Times
Roanoke, VA
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Grand Jury May Be Asked To Look Into Richmond Bank Case
Richmond. Jan. grand jury probe of the affairs of the closed American Bank and Trust Company Richmond, may be asked by Commonwealth's Attorney T. Gray Haddon, the new prosecutor said today. His statement was made after Judge John L. Ingram fixed February 16 the date for hearing argument on demurrers and other technical answers to the suit filed by attorneys for the bank receivers against directors and several officers. Receivers seek to cover more than $600,000 in dividends which they allege were unlawfully paid to stockholders. The common attorney said he would await the outcome of the rectors' suit hearing before initiating grand jury He indicated he would make formal announcement within the next few days, after studying reports now part of the receivership record in the city cir. cuit court. Counsel for the receivers allege, in their suit dividend payments, that the bank was known by its responsible officials to be insolvent when certain dividends were declared.
18.
January 12, 1934
Richmond Times-Dispatch
Richmond, VA
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Court Favor Reinstatemen Bank Claims
Counsel for American's ceivers Refer to on Withdrawal
American Bank and Trust Compan depositors who withdrew preferre claims based on alleged insolvency who made deposits on March the day of the bank's closing are titled ask claims to an order yesterday by Judge Gunn in City Cir cuit Court. should be open to deposit tors affected. counse) for the receiver in the light written by bank official on seeking legal permission restric withdrawal per cent The exist ence of this letter was not known receivers when they asked withdrawa all preference claims based alleged possible RFC loan and dis. tribution. the said The order entered by Judge that while the does not proof of insolvency runs on the bank March "shows complete ness by the bank with the public during the period following March 13 in June of the audit of April Another bank development yester day was the of resolution the Downtown and Old Market Bright his stand against the large fees paid receivers the Bank The resolution part view of the fact that of wage are need the present time and affected by disposition of funds in the AmeriBank and Trust Downtown Old Market Association hereby goes record indorsing the stand taken by the Mayor their
19.
January 13, 1934
The Richmond News Leader
Richmond, VA
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Continued From First Page. ceivership is vacated, since the receivers in event would no longer have authority to prosecute. The Depositors Protective Committee was not represented at the meeting. but Its members have indicated that they individually in sympathy, with the efforts other positors effect reduction in the cost of receivership.
Hart Silent on Plan.
Harris Hart, chairman of the depositors' said today that he had comment make the plan outlined by Mr. for the bank take over the liquidation American bank. The plan suggested by Mr. Andrews the formation state bank with capital of $500,000 and surplus $125,000, with the RFC $250,000 preferred stock and depositors the American subscribing the remainder. Success the proposed depends "upon even more specific condition than the mere creation and preservation harmony among the parties interest," Andrews said, "because contemplates, first the vacation of the present celvership and the resumption of the the affairs of the old bank the state corporation commission, the delivery these fairs the depositors and the Reconstruction Finance Corporation. obvious that the co-operation and support Judge Gunn, the receivers, the corporation commission obtained before into effect. Reconstruction Finance Corporation already has approached, and every reason believe that its co-operation will forthcoming. assumed that Judge Gunn will vacate the if the depositors request and the agreeable. Indeed. that Judge Gunn would refuse grant such petition, the depositors and the RFC the only parties have any interest in the assets the bank. Some Details Plan. receivership vacated, the situation then would be back in the hands of the state corporation commission. which at least liquidating agent. every reason to believe the RFC "This proposal have every reason to believe the RFC would desire, that the liquidating agent permit the new bank service the papers the old receive fee therefor. confidently that liquidation of the assets of the old institution through institution controlled by the depositors the old gives the greatest assurance of the assets the old bank, therefore offers the depositors the best means of keeping their losses shudder when we contemplate what will happen the present plan of firms and by the score will be forced into no matter how policy the ceivers might pursue. contend this no time for such unfortunate happenings. "Liquidation through receivers liquidation nothing by its very destructive values, regardless how noble the intentions the court and the receivers might be. be borne mind that the proposed new bank would be absolutely clean that its deposits will be fully protected under the federal deposit guaranty as the deposits of any other bank the country, that hardly probable that safer depository could be selected by anyone. "This proposal should appeal the American bank depositors citizens Richmond from the selfish point view alone opportunity make good but even this opportunity did not exist civic pride itself impels try the situation. and would justify the undertaking."
No Review Petition. City Attorney James Cannon does not intend file his petition for review of the fees to the receivers American Bank and Trust Company with the city circuit court today. Cannon, has been drawing up the petition for review the request mayor, intimated today that papers will be fied in the city circuit court in the coming week.
20.
January 16, 1934
The World-News
Roanoke, VA
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ASSETS OF CLOSED RICHMOND BANK TO BE REVIEWED
Seek Increase in Loan From the Reconstruction Fi. nance Corporation
Jan Byrd today he vised by Merriam, RFC director. that would be sent to Richmond immediately to the of the closed American Bank and Trust Comwith increasing the to that Byrd behalf bank's receivers for "the Maximum Loan" the basis of the finding the representative the value the loan of which 000 was distributed to depositors granted the bank by total preferred liabilities Byrd the receivers Austin Moore. Sherlock Bronson and John Wilson, president of Bank of trusts at Richmond hour's with Merriam This afternoon they had appointment with Robert Fleming Washington, president of the Riggs of fifth reserve committtee Fleming must pass the application for addiByrd said he was advised by the RFC directors that the $750 per month fee granted by court at Richmond to each of receivers for period beginning January was satisfactory The receivers in pointed out that the positors' the bank had approved up to per month per The original application by the receivers was loan $7,500,000 on which the $3,500,000 loan ity granted Byrd the request the instance receivers was not for specific for the granted the securities that bank might offer
21.
April 12, 1934
Evening Star
Washington, DC
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Russell Gregory and Miss Mary P. Jordan, both employes of the receiver for the American Bank & Trust Co. of Richmond. They testified that Cannon maintained a committee account in the bank and that he also had a safe deposit box there, to which Miss Burroughs had access.
Charles Stevens of Charlottesville, Va., was called to identify a check he gave Cannon as a contribution to the Anti-Smith fight.
22.
July 14, 1934
Richmond Times-Dispatch
Richmond, VA
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Hunt For Baby Boy Feared Stolen
Two directors of the closed American Bank & Trust Company of Richmond, who are among the twenty directors being by the bank's receivers alleged unlawful declaration dividends and alleged negligence. have offered to make substantial cash against them dropped. was learned yesterday Their identity not disclosed.
It understood that composite offer of compromise, in excess of $150,000. has been submitted to receivers and their counsel. It known the receivers have consulted with several of the bank's largest creditors (depositors) to ascertain their views, these persons having the biggest individual interests at stake. further understood these depositors urged the tlement offer for the benefit of all the depositors
Legal Problem Is Barrier
The receivers. asked yesterday confirm deny the reports. refused to make any being indicated that anything they might have to say would be embodied in report Judge Julien Gunn City Circuit In financial circles the report prevalent that the difficulty standing the accepting the settlement offer the legal whether not the offers will the directors further this question the negotistions between attorneys the different sides. If the present suits were the request the receivers, the latter would be in position accept cash settlement from of the rectors. enter covenant with them sue, and leave the ceivers free ceedings against the other directors if
Drug Peddler Sought Kidnaper Suspect While Police Comb N. Woods
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HARTSDALE July Uniformed State troopers, Boy Scouts old Bobby Connor had been kidnaped by peddler, thrashed tonight through the wooded Westchester countryside they spread the hunt for the curlyheaded Department of Justice agents. headed by Frank Fay were ordered join the for the dressed pink he Thursday All the the bilized the eccentric who mumbled about his chateau France turned away from her the child's mother Mrs. Charles Confew hours before the baby's disappearance
Hold Suspect in Jersey man answering the general description the peddler was Seabright he Newark After his said they he not the peddler sought. He however. pending arrival Westchester police. reports circuone that unidentified woman informant telephoned the police she woman the body speeding automobile other report authorities as the State authorities. case without for sixteen investigating these three That the blonde baby was slain degenerate and buried the woods surrounding his Hartsdale Manor That Bobby was kidnaped and being held for might be paid That the child might wandered the met with accident and that his body might lying secluded The leavthe his where he was playing alone. for walk with playmate trained police dog. given the child's scent from
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23.
August 10, 1934
Richmond Times-Dispatch
Richmond, VA
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Bank of Commerce Quits as Receiver
Liquidators Will Buy American's Building
Offers made by two directors of the closed American Bank and Trust Company pay $135,000 suits against them alleging negligence are dropped, were rejected yesterday Judge Julien Gunn on the ground that ceptance might release other direcare parties Judge Gunn. door all the direcby stating that the proper plan which the between the and the former officers and the bank would speedily and adjusted.
Depositors Might Lose
Judge his decision ruled accepted the interest the that bank would they might money by the action this court.' Luther Jenkins had offered pay and Walter surrender on Sams claims deposits against Some directors jointly and severally yesterday the Bank were resignation the Bank Commrce and Trusts the bank's granted Bank office Tenth Main for development was the Commonwealth's ney Gray Haddon, when asked comment editorial demands for prompt the bank case grand jury, would sevmore before he would institute such preceedDue other cases. Haddon said he not opportunity his full time an the until the the trial Legenza, Mais alleged gangsters now under indictment for murder.
Lauds Wilson's Work
In tendering the bank's August John Wilson president the Bank and that "the most ficult the receivers have either worked out plans for their the affairs the receivers ized for the future routine liquidation that time with the inconvenience the and our the time our officers released for the direction of our own banking business Judge Gunn. accepting the wrote Mr. that "your untiring work strict
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