First National Bank (Waverly, NY)

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Flynn Becomes Bank Receiver

Waverly—James R. Flynn of Pennsylvania Avenue today succeeded Charles D. Youthers of Owego as receiver for the former First National Bank of Waverly.

The appointment was made by J. F. T. O'Connor, comptroller of the currency.

Mr. Flynn is the third receiver appointed for the bank since it was taken from the hands of Conservator Pierson H. Salmon on Oct. 24, 1933, and Attorney F. E. Hawks of Waverly appointed as receiver. Mr. Hawks tendered his resignation in November, last year, and was succeeded by Mr. Youthers on Dec. 8, 1933.

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Towandan Accused In Bank Stock Case Brought by Receiver

Mrs. Alice Lang Dayton Charged with Sale of Stock to Escape Liability in Failure of First National Bank of Waverly—Action to Be Heard in Syracuse Federal Court

Waverly—Two actions for a total of $22,200 have been brought by the receiver of the First National Bank of Waverly because 222 shares of bank stock were sold several months before the bank was closed.

The defendant is Mrs. Alice Lang Dayton of Towanda, personally, and as executrix of the estate of her sister, Mrs. Gertrude Lang Hall of Rochester. Each owned 111 shares of stock.

Under statute, owners of bank stock are liable for par value of the stock in case the bank is forced to close. The Comptroller of Currency is authorized, in such an instance, to assess for par value of the stock.

The receiver in the present action, James R. Flynn, charges that the 222 shares, par value $100 a share, were sold by Mrs. Dayton and Mrs. Hall to a Dayton Mill employe named Foster in an attempt to escape statutory liability. The sale was made with knowledge of impending failure of the bank, the receiver charges.

Sale negotiations were begun in July, 1932, and the stock was delivered in November, 1932. The bank closed in September, 1933. The defendant claims since the bank was paying dividends at time of the negotiations and continued to pay them as late as January, 1933, the sale was not made due to knowledge that the bank would fail. The transaction was bonafide and not an attempt to escape liability, the defendant contends.

Mrs. Hall was living in July, 1932, when negotiations were begun, but was killed in an automobile accident before November, 1932, when the Waverly bank. In an accounting of the estate in Tioga County Surrogate's Court, the court ruled that the estate was free from the assessment, but the statutory status of the $11,100 levy is upheld in the present action.

Mrs. Dayton is the widow of the late Percy L. Lang, former bank president, and the present Mr. Dayton is George A. Dayton of Dayton, formerly associated with the verly bank.

The actions are scheduled for trial at the current term of Federal Court in Syracuse. Attorney F. E. Hawkes of Waverly represents the receiver. The defense is represented by Attorney Halsey Sayles of Elmira and Attorney E. D. Eaton of Waverly.

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Bank Receiver Case Scheduled On Court Term

Waverly, Oct. 10—The October term of the Federal District Court opened in Syracuse Tuesday with Judge Frederick H. Bryant presiding. The court is scheduled to hear an action brought by the receivership of the First National Bank of Waverly charging Mrs. Alice Lang of Towanda, with the sale of 222 shares of the stock of the bank before it closed, in an attempt to defraud the bank and escape the possibility of a $22,200 assessment on the stock, when the bank closed.

Mrs. Dayton is wife of George V. Dayton, a director of the defunct bank, and is being sued for her holdings on 111 shares of the stock and as executrix of the estate of her sister, Mrs. Gertrude Lang Hall, of Rochester, which included another 111 shares of the stock. The sale of the stock, it is claimed, was made less than a year before the closing of the bank, to an employe of the Dayton Mill in Towanda. Attorney F. E. Hawks is representing the receiver, James R. Flynn, while Attorney E. W. Eaton of Waverly is representing the defendant.

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Mrs. Dayton Must Pay $22,000 To Bank Receiver

Federal Jury Finds Towanda Woman Unlawfully Transferred Stock in First National of Waverly

SYRACUSE, N. Y., Oct. 12(Special to The Times)-After deliberating five hours, jury in federal court here last night rendered verdict of $22,200 in two actions brought by James R. Flynn, receiver of the First National Bank of Waverly, against Mrs. Alice Lang Dayton, Towanda, Pa., for alleged unlawful transferance of stock from the institution shortly prior to closing of bank by executive or der last year. Judge Frederick H. Bryant denied a motion for temporary withdrawal of verdict pending new trial proposed by Henry Sayles, Elmira, attorney for Mrs. Dayton. A 90-day stay of execution of payment was granted by the court. The defendant was ordered to pay $500 interest on stock from Feb. 7, 1934. Frederick E. Hawkes, Waverly, was attorney for the plaintiff. Of a panel of 30, only 11 jurors could be found who had not lost money in a bank. closing or who did not hold bank stock. With the panel exhausted and only 11 chairs in the box filled, the court permitted a stock holder to sit, on consent of the attorneys. The plaintiff contended in the case that Mrs. Dayton had transferred the stock to Elwyn L. Foster, a miller receiving $20 a week in the Dayton Milling company at Towanda of which Mrs. Dayton's husband is president. They introduced evidence to show that Mrs. Dayton, herself and as Mrs. Hall's estate executrix, knew of the condition of the bank and transferred the stock but remained its beneficial owner. The defense, however, declared that the transfer was made because for several months efforts to merge the Citizens' National and First National banks had been made and that officers of the institutions had Lad conferences in New York City, Washington, D. C., and Elmira but that Mrs. Dayton and Mrs. Hall opposed the merger so sold the stock, in a bona fide sale, to Mr. Foster on a payment plan. The sale, they contended, was made before anyone suspected that the bank was insolvent or in danger of being closed. The transfer was made on the books of the bank in Nov. 1932 by Mr. Dayton. The price, $20 a share, the defense said, was a fair price for bank stock at that time. They also said that it was assessed at $25 a share in Mrs. Hall's estate. Attorney E. W. Eaton of Waverly of defense counsel, stated today that an appeal is expected to be taken to the federal circuit court of appeals in the near future.

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J. R. FLYNN PASSES STATE BAR TESTS

Receiver of First National Bank Will Be Admitted to Practice Soon

WAVERLY, Jan. 2—James R. Flynn, receiver of the First National bank of Waverly, will be admitted to practice before the various courts of New York State within a few weeks.

Mr. Flynn was one of 819 of 1,815 law students to successfully pass the state bar examinations in October, according to the state board of law examiners. He will be presented to the appellate division, third department, court soon for admission to the bar.

He is a son of Mr. and Mrs. David J. Flynn of 426 Pennsylvania avenue. In 1926 he was graduated from the Waverly high school and received his A.B. degree at Cornell he was chosen a member of Phi Beta Kappa, honorary scholastic fraternity. After teaching a year at the Newman Preparatory school in Lakewood, N. J., he entered the Cornell law college from where he was graduated in 1933.

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Bank Receiver Objects to Sale of Paint Company for $890; Sale Is Made by Assignee and Approved by Court

WAVERLY, Feb. 28—Sale of the A. H. Thomas Paint company of Waverly was confirmed by Judge Nathan Turk at Owego yesterday over objections made by the receiver of the First National bank of Waverly.

The sale was made on Feb. 19 by Floyd E. Backer, assignee of the company, to W. E. Hardy of Syracuse and G. H. Seager of Elmira. Mr. Seager purchased the equipment of the plant but later sold it to Mr. Hardy.

The sale price was $890.

James R. Flynn, receiver of the bank, objected to the sale. The receiver now has a judgment against the company for $10,000. Judge Turk, however, confirmed the sale over Mr. Flynn's objection.

Mr. Hardy is a brother of Luther C. Hardy, president and treasurer of the A. H. Thomas Paint company until it was placed in the hands of the assignee several months ago

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Assets Estimated By Bank Receiver

Waverly—Remaining assets of the First National Bank of Waverly have been estimated at $98,046 on a book value of $287,874.69 according to a statement of the bank's condition for the quarterly period ended June 30, 1935 released today by James R. Flynn, receiver.

The statement indicates that a total of $73,733.50 has been collected on stock assessments to date and that a total of $674,525.06 has been collected from stock assessments and other assets.

A comparison with the statement released by the Receiver for the quarter ended Mar. 31, 1935 indicates that a total of $47,462.62 has been collected during the present quarter.

Total expenses of receivership to date, Mr. Flynn stated, have amounted to 3.38 per cent of the total amount collected from assets of the bank during the period beginning Sept. 1, 1933 and ended June 30, 1935.

On the Reconstruction Finance Corporation obligation which originally amounted to $115,300 only $13,300 remained due June 30, 1935.

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Expect Throng At Halloween Street Frolic

Prizes for Marchers and Floats Offered by Waverly Merchants—Five Bands to Lead Divisions of Parade

Waverly—Waverly will play host to thousands Thursday night at its fourth annual Halloween parade. Final plans were made Tuesday evening by the Board of Trade committee.

Many prizes for costumed marchers and floats are expected to attract hundreds of participants in the parade. Merchants have contributed cash and merchandise for the awards. Prizes of $10, $5 and $3 will be awarded to the three best floats and more than 60 merchandise prizes will be awarded to costumed marchers.

Among the impersonations for which prizes will be offered are: farmer, Haile Selassie, tall man, short man, beautiful girl, George and Martha Washington, Amos and Andy, Toots and Casper, devil, Popeye, bride and groom, Dionne quintuplets and clown. Awards will also be given for the worst looking car and the best decorated bicycle. Provision is also being made for many other prize awards to outstanding entries.

Judges Named

Judges for the parade will be: Luther B. Adams, Waverly Senior High School principal; Dr. Roy S. S. Knapp and Mrs. George B. Knapp.

Five bands will lead the five divisions of the parade. They are: Waverly High School band, Sayre High School band, Athens High School band, Valley V. F. W. band and the L. O. O. M. band.

The parade will form at 7:30 o'clock and will start at 8 o'clock. The line of march will be from the corner of Chemung and Ithaca streets, west on Chemung to Waverly street, south on Waverly to Broad street, and east on Broad to the town hall.

Bank Receiver Talks to Club; Show Arranged

Waverly — Attorney James R. Flynn, receiver of the First National Bank of Waverly, explained the duties of a receiver of insolvent National banks in a talk to the Waverly Lions Club Tuesday night.

Mr. Flynn said that the receiver is not merely an agent of the government. He is appointed by the Federal Government — Comptroller of Currency—but he is an agent of the stockholders of the bank and its depositors and creditors.

He spoke of the aid given by the Home Owners Loan Corporation, the Federal Farm Mortgage Corporation and the RFC in the work of liquidating an insolvent national bank and expressed appreciation of the co-operation given by the community.

The receivership is being brought to a close as promptly as is practicable and favorable to the best interests of depositors said Mr. Flynn.

Walter Niles was named chairman of a committee which will consider the possibilities of a local dog show for pedigreed animals. Other members of the committee are Allen Hull, R. C. Kolb, Don McClelland and Edwin Knapp.

The club voted to donate $5 to the Waverly Boy Scout district to help in General Sullivan Council work.

Don McClelland, Don Grant and Francis L. R. Gibbs were named as the program committee for November. Nov. 13 the local club will meet with the Owego Kiwanis Club.