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BRITAIN TO DEPORT Run On New Orleans Bank AMERICAN CITIZEN Is Blamed On Hamilton Fish
O. M. Hartzell, Who Has Been In England 10 Years, Called Undesirable Alien
SOUGHT DRAKE ESTATE
Purpose In London Given As Prosecution Of Claims To Fortune Of Sir Francis
[By the Associated Press] London, Feb. 4-The British Government has informed the American Consulate that a deportation order has been issued against Oscar M. Hartzell, described by British officials as "an undesirable alien" who has been in England ten years, saying his purpose was to prosecute claims to the estate of Sir Francis Drake. It was said that Hartzell would be deported immediately. Hartzell first came to London from Iowa, it was stated, to check personally on the activities of an agent to whom he had contributed funds, and, asserting he was involved in search for the "Drake millions," he remained in London and had representatives in the United States, particularly in the Middle West. Maintained U. S. Contacts Hartzell mostly used cables for maintaining contacts with the United States, it was said, and Iowa, South Dakota and Texas were listed as the localities of greatest activity. For fifty years American consular officials and the American Embassy, as well as the British Government, have received thousands of letters of inquiry from the United States regarding the so-called Drake estate, and both the British and American authorities have made every effort to warn persons against contributing funds for searches for the Drake millions.
Louisiana Financier Says Criticism Caused Irreparable Damage-Cites Attack On R. F. C. Loan-Asserts Millions Withdrawn From Hibernia As Result efforts for "human uplift and new freedom." No one paid any attention to the proclamation except the New Orleans banks, all of whom remained closed all day. All kinds of wild rumors were afloat. It developed late this afternoon that the holiday, admittedly unconstitutional; is due to a run of three days that had been made on the Hibernia Bank and Trust Company, one of the largest institutions here, since the publication of the charges made by Representative Hamilton Fish (Rep., N. Y.) before the Banking and Currency Committee of the House against Rudolph S. Hecht, president of the Hibernia Bank. Could Not Meet Pay Rolls Mr. Hecht, in a statement late this afternoon, admitted that millions has been drawn from his bank. Hundreds of business firms and industrial plants could not pay off their employes today, the regular pay day, due to the closing of the banks. They declared that the calling of holiday without notice had deprived them of cash with which to pay off and that many of their employes could not cash checks. Crowds filled the streets in the financial districts, speculating on the case of the shutdown. After meeting of the Clearing House this afternoon it was said the banks would probably reopen Monday. Several officials of the Federal Reserve Banking System are en route here, as are officials of the Reconstruction Finance Corporation. Senator Huey P. Long admits it was he who inspired the holiday proclamation. Mr. Hecht, president of the Hibernia Bank, is one of his righthand men and the bank has much of the State of Louisiana paper in its vaults.
Long Interested In Bank The Hibernia Bank is an affiliate of the Union Indemnity Company, of which Rudolph S. Hecht also is director. It matter of record that Senator Long, when Governor, and even since he has been Senator. had required that all highway contractors must make bonds with the Union Indemnity Company. Mr. Long's chief adviser and intimate friend, Seymour Weiss, was made a director of the company and senior director of one of its affiliated organizations. Mr. Weiss' rise was spectacular onefrom shoe clerk and barber-shop manager to managership of the Roosevelt Hotel, backed by Union Indemnity officials. Mr. Weiss boasted that Senator the hotel, and it is a matter of record that Weiss refused to testify at the impeachment proceedings against Gov. ernor Long regarding his expenditure of funds appropriated by the State for the entertainment of visiting Governors in the hotel. New Orleans bankers tonight trace a large proportion of their troubles to the failure of the $31,000,000 Union Indemnity Company. What Monday will bring forth is anxiously awaited by the citizens of New Orleans and its financial institutions. Want Coreceivers Removed The removal of S. Sanford Levy and W. Clay Beckner as coreceivers was sought in civil court today by eleven creditors of the Union Indemnity Company, who charge their interests are prejudiced in favor of privileged creditors. The creditors are headed by Clifford N. Randall, of Los Angeles, and all are non-residents of Louisiana. It is alleged in the petition that the receivers are unqualified to act, Mr. Levy being a former vice-president of the company and Beckner member of the State advisory board of the Reconstruction Finance Corporation, the company's largest creditor. It asks that the receivers be discharged or, as an alternative, third receiver be appointed to guard the interests of foreign creditors. A rule to show cause was signed by Judge Michel Provosty for February 10. Discrimination Alleged The intervention charges that since the receivership of the company both Mr. Levy and Mr. Beckner have allowed banks in New Orleans doing business with the company to accumulate funds to apply against indebtedness the company owes the bank, thereby discriminating against other creditors of the company. It was pointed out by the intervenors that New Orleans bank was allowed by the receivers to apply funds on deposit toward indebtedness owed the bank and at the same time more than 200 holders of drafts and checks were not paid a sum totaling more than $1,000,000. Choicest Stock Pledged The foreign creditors assert in the petition that the choicest stock and holdings of the Union Indemnity Company was pledged to secure loan of $1,400,000 and all that remained was a "hollow shell" for the rest of the company's creditors. It was stated that Mr. Beckner, in his connection with the Reconstruction Finance Corporation, not qualified, therefore, to fairly administer the business of the company.
