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TOWN TO HAVE 3-WEEK HOLIDAY Iowa- (AP) business holiday of three weeks Muscatine was proclaimed today by Mayor Herman Lord. Directors the First National bank Hershey State banks issued statements the effect that their institutions would remain closed for the duration of the hollThe Muscatine State bank was open usual, however, and ficial the bank said this policy would continue.
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Holiday Proclaimed; Two Banks Close First National, Hershey Directors Issue Statement. business holiday of three weeks in Muscatine proclaimthis morning by Mayor Herman Lord, and directors of the First National and Hershey State banks issued statement the effect that their institutions will remain closed for the duration of the holistatement follows: "We, with other banks in the middle west, are confronted with problems over which no has control. Troubles in other cities have aroused state panic people, helped along by insidious and rumors fomented by people who should know better. The result been steady and cometimes withdrawals from There certain evidence that these will not Iowa City, Davenport and other cities show what happened when action was too long delayed. banks vinced that the logical solution problem does not lie payment of certain steady the detrideposits those depositors who remain steadfast. Some depositors have displayed courageto their banks and ous loyalty In their intheir community. have therefore taken terests, we of the holiday deadvantage in order clared by our mayor may have that such depositors to carefully conopportunity plan whereby conof these banks tinued operation may be reported but not conIt firmed this morning that organithe depositors of the two zation work out plan of banks will be attempted within tion few days. Muscatine State Open. statement forthcoming from officials of the Muscatine bank, other than reiteraState (Continued On Page Col.
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Agreements Are Offered at Meetings Signatures Sought for Trustee Agreements. A depositors' agreement for dealing with the situation sioned by the "holiday" closing of the First National and Hershey State banks was presented to depositors of the two institutions two meetings this afternoon, after smaller group meetings had been held during the day. Original plans for presentation program to the main body of depositors called for single mass meeting the town theater this afternoon but the crowd that gathered for the event was far too large to be accommodated the theater, and an overflow meeting was held the First Baptist church. meeting smaller group depositors this morning city hall, the trustees each bank stipulated in the agreements which depositors being to the First Henry Otte, Henry and John Diercks. For the Hershey Barry, Arthur Grensing and William Cashman. Briefly. the plan presented the depositors for their acceptance rejection provides the lowing The establishment of trust fund in each bank, to be (Continued on Page Col.
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EXTENSION HOLIDAY SOUGHT First National of Muscatine Asks Additional Time. Muscatine, Ia., Feb. tension of one week in the bank holiday which has been in effect here the past three weeks was quested of Mayor Herman Lord to day by committee chosen Friday mass meeting to represent de positors of the First National bank. No extension had been granted Mayor Lord this afternoon, the there possibility that such action might be taken prior Monday. Butler, chairman of the committee, also announced the in definite of meeting of depositors of the First National bank which had been scheduled this afternoon. The meeting be called later, he indicated. Action of the today follows meeting Friday two five bers were chosen to positors both First and Hershey State banks, both which have been closed the three weeks under the bank hollproclamation. In addition to Mr. Butler, who chairman of the committee represent First National depositors, others on the committee are the Rev. W. H. Schwiering, Albert Vetter, Mrs. Vera Shoemaker and Augusta Rumsey. Hershey State Reopens. Regardless the knowledge that the Hershey bank will reopen Monday under management of the state banking department committee to depositors was also the meeting, consisting Albert Vetter, Con nor, Hitchcock, Randall, Kemble. Bruno Mohnsand and the Rev. B. Schwartz sen named members. The meeting at which these mittees named originally hear the report of committee named Monday at mass meeting. Its covered negotiations report bank officials looking toward acceptable plan for reopening the banks. made and the committee was later thanked and relieved of fugeneral discussion of banks, banking law and allied followed. this morning of meeting the chosen to represent Hershey bank depositors, resolu tion five recommendations was follows: This committee We, the undersigned meeting of depositors named at to represent deheld Feb. positors in the Hershey State bank, hereby resolve: recommend to deposisign no agreement that they funds the Herregarding their shey State bank unless said agreeprovides at least per ment cent cash distribution of their funds them within 30 days, and, recommend that, the bank unable the event that this request for such meet tribution, that evidence of such submitted to the deposiability tors' in writing. recommend that the stockholders of said bank immediescrow cash or its ately put equivalent to the 50 per of value of their stock cent the par said fund to said bank, conditioned to provide that said fund only in case of and judgment against liquidation stockholders. recommend that any submitted must treat agreement called funds on the same public basis funds of other depositors. recommend that the above equally all types of deposits. Those present the committee meeting Connor, Jr., Dr. Schwartz, Bruno Hitchcock and Kemble. Mr. Connor made chairman. 100 Attend Meeting. Petitions embodying recommendations contained the resolutions presented to the Hershey State bank depositors for sign this meeting. The meeting was scheduled but was nearly an hour before the session got under At that time between and 125, representing depositors of both banks were attendance. After members the commithad explained of the resolution as adopted by the com mittee, general ensued and was finally decided pace copies of the resolutions on tile for signatures the depositors. This acted on when some depositors backward about signing. Happiness not of much use unless you take partner