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of the situation. He summoned Mr Bain to his office and there, in the presence of Mr. Gilruth and Attorney Massena, demanded that he retract the statement in the newspaper. With tears in his eyes, the 63 year old banker is said to have argued his theories of bank and defended his in his banks, asserting that when they closed there was of assets to meet the deposit liabilities of 14,500,000. In contravention of this view, Mr. Gilruth included in his statement a declaration that upon his appointment as receiver he found cash of slightly more than to meet the deposit liabilities. Other resources, he said, consisted of the $2,000,000 Bain debts: another $2,000,000 in bank buildings and furnishings to other uses: and slightly more than $7,000,000 in estate loans. The remainder the assets, carried the books at slightly above $10,000,000 in value, included real estate holdings and real estate bonds, many of which were in defaut, the receiver asserted.
Finds Assets Frozen.
In short," the receiver summed up, the fact is that with the exception of the cash item and a relatively amount the remaining assets, the resources of the banks are tightly frozen and will require and patient if anything like their book is to be realized.' The declared it would be his policy to the position of the banks plainly to the depositors from time to time, adding that for the present he found it to predict what percentage of the assets the depositors would realize upon. The receiver intends to pursue the policy of stating the facts plainly to depositors from time to time, so far as he consistently do 80 with regard to his duty to liquidate the assets of the banks to the best possible and in the economical manner, the declared. Statement Covers Bank Chain.
While it is true that each bank will be liquidated as an independent unit and some of the banks may be in better others, the similarity of makes this statement applicable to each situaMr. Gilruth listed the Bain debts of more than $2,000,000 as follows: John Bain John Bain, 993,574.40 John Bain R. E. Impr. 47,500.00 The Lews company 257,600.00 John 43,045.67 Robert 24,092.26 Total
In support of his opinion that none of the $2,000,000 is collectible, Mr. Gilruth cited the condition of the Bain companies as follows: 'John Bain, Inc., is in receivership because of alleged Chief among its assets are nineteen properties, carried on the books at $6,060,000. and with $4,015,000 in bonds outstanding against them, leaving an to the books, of $2,045,000. A competer has advised the receiver that the present value the properties, instead of being $6,060,000, is only or a little more than one-half the amount of bonds outstanding on them. The Lews company is the record owner of nearly 25 per cent of the stock of the twelve closed banks. The receiver not with to its other assets or but believes it is that the company cannot pay what It owes the banks and also to liability If. as matter of fact, it can do
Probe May Be Ordered. Grand jury the Bain bank management is possible, It was learned. State's Attorney Swanson, learning of Mr. Gllruth's statement declared that if the facts were established as alleged, he would order an investigation by his assistant, Henry Ayes, the prosecutor in charge of the state's attorney's bank bureau. The fact that Mr. Bain was fifteen years a member of the south park board and south side political leader of the Swanson forces in the party would in no way impede the investigation, Mr. Swanson was as saying. The original Bain bank-the West Englewood Trust and Savings at 1624 West 63d street, was founded in 1906. Mr. Bain, previously the proprietor of small real estate office in the neighborhood, incorporated the bank in partnership with Edward Barry, William Blumer, E. L. Schweder, and Michael Maisel.
Builds Up Bank Chain. By launching banks in the then sparsely settled neighborhoods and, in some cases, by acquiring banks that failed, Mr. Bain built up the chain. On last April 12 Mr. Bain. observing his twenty-fifth anniversary as banker, was tendered a banquet attended by 400 employes and associates at the Shoreland hotel. Referring on that to the depression, Mr. Bain reaffirmed his confidence in the soundness of the instituhis name. On the day the banks closed John H. Bain, echoing his father's sentiments, pledged that the Bain banks would pay off 100 per cent. is just an outgrowth of the situation and the general uncertainty which was aroused that he said. pay out 100 cents on the dollar and there will be a substantial equity the stockholders.'
Twelve Banks Involved. The list Bain banks is as follows: Armitage State, 3400 Armitage Tngs, 734 West 79th street: Brainerd State, 8640 South Ashland avenue; Bryn Mawr 2110 East 71st street; Chatham State, 7850 Cottage Grove avenue: Lawn State, 3150 West 63d street; State, 4332 Elston Ridge State, 7048 South Western Stony Island State Sav Ings, 68th and Stony Island avenue; Englewood Trust and Savings, 1624 West 63d street; West Highland State, 7900 South Ashland avenue, and West Lawn Trust and Savings, 63d street and Crawford avenue.
TRUCK MILLIONS THROUGH CROWDS TO SAVE BANKS
Toledo Depositors Paid as Guns Hold Back Rush.
Toledo, O., Aug. 17.-[Special] Glant trucks, bearing men heavily armed with rifles and tear gas bombs, today trundled into the downtown district of Toledo carrying eleven million dollars in cash. The money had been sent to the Toledo Trust and the First National bank, which, had opened before their usual hours to pay off depositors who were worried over the closing of five other banks within 48 hours.
Stay Open to Pay Depositors. The banks remained open after closing hours, still paying out all depositors who sought their money. The lines of depositors began to dwindle when it was seen that the banks. with the aid of the federal reserve bank, the Cleveland and Detroit bankers, were ready to meet all demands. It is estimated that 150,000 of Toledo's 290,000 residents had savings or checking tied up in the five closed banks which officials insist are solvent. The banks are the Commerce Guardian Trust and Savings bank, the Ohio Savings Bank and Trust company, the Savings Bank and Trust company, the American bank, and the Point Place State bank. The five have combined resources of and deposits of around $80,000,000. Their closing came at the expiration of the 60 day withdrawal notice which they posted when the Security Home Trust company closed two months ago.
Reserve Funds Are Tied Up.
The closing notices nied by that the action was taken to protect depositors. Officials of the American bank said it could have met normal but its reserves were tied up with two of the closed banks. The Spitzerrorick Trust and Sav ings bank and the West Toledo National remained open as usual, as did the Morris Plan and Industrial banks. Immense crowds filled downtown streets in front of the closed banks and their As the gold bearing trucks drove up to the curb before the banks open the depositors and the crowd of curious were hustled back guards presented firearms and tear gas Hundreds Jam Lobbies.
While hundreds jammed in the lobbies of the two open banks, officials went tl crowd and directed porters to ice water to women suffering from the heat. Elderly women were to chairs and clerks assigned to their places in the line. Extra electric fans were placed at vantage points and other efforts made to assist those who had stood in line for hours to reach the tellers' cages. Business leaders and officials took steps to make funds available immediately to small depositors. The county commissioners asked courts to suspend foreclosure proceedings for year providing interest on mortgage loans is met, and the treasurer appealed to the state tax commission to extend the tax paying period. 6 Nebraska Banks Close. Lincoln, Neb., Aug. 17.-(P)-Six Nebraska state banks today failed to open their Gov. Charles W Bryan and E. H. Luikart, secretary of the state of trade and said the closings were the result of bank in Omaha. The six banks had deposits of
