1.
November 20, 1934
The Zanesville Signal
Zanesville, OH
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FACE PROSPECT REPAYING LOAN
RFC Files Suit to Collect Against Dawes and Others for Liquidation
Chicago, Nov. ers Central Republic Trust company, headed former President Charles Dawes, today faced prospect of having pay part due the The RFC filed suit federal yesterday, asking pointment receiver collect the equal to the trust providing double liability sum due the federal loan agency balance the famous General Dawes the Republic he chairman. after he as head the after the was sumed by the National Trust company. the Central Republic paying the RFC loan amount equal to the deposits. The RFC stated State the for liquidaunder for the off, the suit while the RFC was the loan been in default since Dec. 24, 1932. was tem. purposely the the run and close the bank the RFC refused enough cash deposits fully. Other Chicago banks, fearing effect of bank failure, interceded to carry his point.
2.
November 20, 1934
Ames Tribune
Ames, IA
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IN BANK
Sued For 14 Millions of 60 Millions Still Due
CHICAGO, of the Central Republic Trust com pany, headed by former Vice Pres ident Charles G. Dawes, Tuesday faced the prospect of having to dig $14,000,000 from their own pockets pay part of due the Reconstruction Finance The RFC filed suit in federal district court late Monday, asking of receiver to lect the $14,000,000 equal to the trust total capitaliza tion, under the law providing double liability for bank The sum due the federal loan agency the unpaid balance the $80,000,000 loan nego by General Dawes 1932 for the Central Republic Bank Trust company, of which he was shortly after he retired as head of the prolonged run forced the bank close months after the loan was made. Deposit liabilities were assumed by the City National Bank and Trust ompany, the Central Republic paying over out of the RFC loan an amount equal to the deposits. Dawes now heads the City National.
Paying Debts Other liabilities and assets of the railed bank were transferred to the Central Republic Trust com pany, which for twc years has been liquidating the bank's assets paying debts. The RFC suit stated that State Auditor Berrett planned take over the trust company for liquidation under state Other liabilities have for the most part been paid off, the suit said. while the RFC debt was left to the last.
The loan has been in default since 1932. was made temporary basis purposely to guard its the time the loan was made Dawes declined small loan to meet the emergency of deposit ors' run and said close the bank the RFC refused cash to cover deposits fully. Other Chicago banks, fearing the effect major bank failure, interceded carry his point.
3.
November 20, 1934
Middletown Times Herald
Middletown, NY
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MAY FORCE STOCKHOLDERS REPAY LOAN
Asks Receiver for Central Republic Trust Co. of Chicago Which Dawes Headed
CHICAGO Stockholders of the Central Republic Trust Company headed by former Vice President Charles G. Dawes, today faced the prospect of having to hand over $15,000.000 from their own pockets to pay part of the $60 due the Reconstruction Finance Corporation. The RFC. in Federal District Court yesterday, asked appointment of receiver to collect the $14,000.000 equal to the trust company's total capitalization. under the law providing double liability for bank steekholders The sum due the Federal agency is the unpaid balor.ce of the famous $30,000,000 loan negotiated by Dawes in 1932 for the Central Republic Bank & Trust Company, of which he was chairman. shortly after he retired as head ot the RFC. prolonged run forced the bank to was assumed by the City National Bank and Trust Company, the Central Republic paying over out of the RFC loan an amount equal to the deposits. Dawes now heads the City National Other L'abilities and assets of the closed banks were transferred to the Central Republic Trust Company, which for two years has been 1iguidating the bank's semi-frozen assets and paying debts. The RFC suit said that State Auditor E. J. Barrett planned to take over the trust company for liquidation under a state receiver. Other liabilities for the most part have been paid off. the suit said. while the RFC debt as left to the last. The loan has been in default since It was made temporary basis to give the RFC poer to guard its funds.
At the time the loan was made Dawes declined small loan to meet the emergency of depositors' run and said he would close the bank if the RFC refused enough cash to cover deposits fully. Other Chicago banks, fearing the effect of a major bank failure, interceded.
American Antinques Displayed EUGENE. Ore.-A collection of early American relics on display today at the art department included Chelsea china. mulberry design, luster finish, a "mob nail" pitcher. a blue earthen drain for meat platters, homespun fabries, a Dody's large hoop-style wedding gown of 1348, hand embroidered wedding gown worn in 1829; Boche double shawl
4.
November 20, 1934
The Times-News
Twin Falls, ID
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AND BANK FACING RFC
Former Vice President, Other Stockholders Target of $14,000,000 Action
CHICAGO, Nov. 20 holders of the Central Republic Trust company, headed by former vice Charles Dawes, today faced the prospect of dig up from their own pockets to pay part of $60.due the Reconstruction nance corporation The RFC filed suit in federal trict court late yesterday, asking appointment of receiver to lect the equal Trust company's total capitalization, under the law providing double liability for bank The sum due the federal agency the unpaid balance the famous loan negotiated by General Dawes for the Central Republic Bank Trust company, of which he chairman, shortly after he retired as head of the RFC. prolonged run forced the bank close two months after the loan made. Deposit assumed the City National Bank and Trust company, the Central Republic paying over out
5.
November 20, 1934
Los Angeles Evening Post-Record
Los Angeles, CA
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RFC GOES AFTER DAWES PAYMENT
Have Dig Up $14,000,000
CHICAGO, Nov. stockholders of the Central Republic Trust company, headed by former Charles Dawes, today faced the prospect of having to dig up $14,000,000 from their own pockets to pay part of due the Reconstruction Finance corporation. The RFC suit in federal district court late yesterday, asking appointment of receiver to collect the $14,000,000, equal to the trust company's total capitalization, under the law providing double liability for bank stockholders. The sum due the federal loan agency is the unpaid balance of the famous loan negotiated by General Dawes in 1932 for the Central Republic Bank Trust company, of which he was chairman, shortly after he retired as head of the RFC. A prolonged run forced the bank to close two months after the loan was made. The loan has been in default since December 24, 1932. It was made on basis purposely to give the RFC power guard its funds.
SOUTHERNERS GATHER NEW 41st annual convention of the United Daughters of the Confederacy opens tonight. Prominent southerners and of southerners from parts of the country are here.
6.
November 20, 1934
Evansville Press
Evansville, IN
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RFC Sues To Collect Famed Dawes Loan
Demands Stockholders Pay Back $14,000,000 Given Former Vice President's Bank
By United Press CHICAGO, Nov of the Central Republic Trust Company. headed by former Vice President Charles G. Dawes, today faced the prospect of having to dig $14,000,000 from their own up pockets to pay part of due the Reconstruction Finance Corporation.
The RFC has filed suit in Federal District Court asking appointment receiver to collect the $14,000,equal the trust company's total under the providing double liability for bank The sum due the federal loan agency unpaid balance of the famous $80,000,000 loan negotiated by General Dawes for Central Bank Trust of which he was chairafter he retired head the run forced the bank close months after the loan was made. Deposit liabilities were assumed City Bank Trust Company, the Central Republic paying over out of the RFC loan an equal Dawes now heads the City National.
RFC Debt Last Other liabilities and assets of the failed bank were transferred to the Central Republic Trust Company, which for years has been liquidating the bank's semi-frozen and paying debts. Other for paid the suit said, the RFC debt left to the the time the loan made declined small loan meet the run and said he would close the bank the refused enough cash to cover deposits fully Other Chicago banks, fearing the effect major bank failure, asked the RFC grant the loan, now in fault nearly two years
7.
November 20, 1934
The Galion Inquirer
Galion, OH
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May Have To Dig Up $14,000,000
CHICAGO, Nov. 20 (UP)-Stockholders of he Central Republic Trust Company, headed by former Vice President Charles G. Dawes, today faced the prospect of having to dig up $14,000,000 from their own pockets to pay a part of $60,476,437 due the Reconstruction Finance Corporaion.
The RFC filed suit in Federal District Court late yesterday, asking appointment of a receiver to collect the $14,000,000. equal to the trust company's total capitalization, under the law providing double liability for bank stockholders. The sum due the federal loan agency is the unpaid balance of the famous $80,000,000 loan negotiated by General Dawes in 1932 for the Central Republic Bank & Trust Company, of which he was chairman, shortly after he retired as head of the RFC. A prolonged run forced the bank to close two months after the loan was made. Deposit liabilities were assumed by the City National Bank and Trust Company, the Central Republic paying out of the RFC loan an amount equal to the deposits. The RFC suit stated that State Auditor E. J. Barrett planned to take over the trust company for liquidation under a state receiver. Other liabilities have for the most part been paid off, the suit said, while the RFC debt was left to the last.
8.
November 20, 1934
Riverside Daily Press
Riverside, CA
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BANK LOAN
Would Like to Collect $14,000,000 from Stockholders
CHICAGO, Nov. Stockholders Central Republic Trust company, headed former Charles Dawes, today faced the prospect of having to dig up from pockets pay part due the Reconstruction Finance poration.
The R.F.C. filed suit in Federal court yesterday, receiver collect the equal the trust company's total capitalization, under the law providing double liability bank stockholders. Negotiated in 1932 The due the Federal loan agency balance the famous loan negotiated by Dawes 1932 for the Central Republic Bank Trust company, which he chairman, after he retired head the run forced the bank after the loan Deposit liabilities assumed by the City National Bank and Trust company, the Central
Republic paying over out of the R.F.C. an amount equal to deposits. Dawes heads the City National. The loan has been default since Dec. 24, 1932. made basis purposely to give the R.F.C. power to guard its funds.
9.
November 21, 1934
The Bismarck Tribune
Bismarck, Mandan, ND
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DAWES BANK TAKEN OVER BY EXAMINERS Suits for $60,000,000 Filed Against Chicago Institution by RFC Chicago, Nov. 21.-(P)-The Central Republic Trust Company was in the hands of examiners from the state auditor's office Wednesday after suits for $60,000,000 had been filed against the institution by the Reconstruction Finance Corporation. The suits, filed in federal and circuit courts, alleged that a $60,000,000 balance remains unpaid from the $80,000,000 "Dawes loan," made in 1932. Both courts were asked to determine the liability status of the bank's 4.000 stockholders who include Gen. Charles G. Dawes, former vice president of the United States and at one time chairman of the RFC. The bank was closed for examination, but State Auditor Edward J. Barrett said a receiver had not been appointed. Other creditors were prevented from filing similar suits by a temporary restraining order issued by Federal Judge John P. Barnes. The circuit court suits asked a determination of who are creditors and details of the alleged unsatisfied liabilities. Both bills set forth that the loan was made the Central Republic Bank & Trust Co., which subsequently merged with the City National Bank & Trust Co., following Dawes' resignation from the RFC chairmanship.
10.
November 21, 1934
The Newark Advocate
Newark, OH
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Bank Receiver Named.
Chicago, Judge John today Chifor the Central Republic Trust company.
11.
November 21, 1934
The Daily Advocate
Greenville, OH
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Chicago, Nov. Stockholders Central Republic Trust Company, headed by Forrzer Vice President Charles Dawes today faced the prospect of having to dig from their own pockets to pay part of $60.476,437 due the Reconstruction Finance Corporation The RFC filed suit in federal district court late yesterday, asking appointing receiver collect the equal to the Trust Company's total capitalization, under the providing double liability for bank stockholders The sum due the federal loan agency the of the famous loan negotiated by General Dawes 1932 for the Central Republic Bank and Trust Company of which he chairman. shortly after he retired as head of the RFC prolonged run forced the bank close two months after the loan was made. Deposit liabilities were assumed by the City National Bank and Trust company. Central Republic paying over out of the RFC loan an amount equal to the deposits. The RFC suit stated that State Auditor Barrett planned to take over the Trust Company for liquidation under state receiver. Other liabilities have for the most part been paid off. the suit said While the RFC debt was left the last.
12.
November 21, 1934
The Columbia Record
Columbia, SC
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BANK RECEIVER NAMED Nov. cuit Judge John today appointed William O'Connell Chicago receiver the Central Republic Trust Company.
13.
November 21, 1934
The Alexandria Times-Tribune
Alexandria, IN
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DEMANDS RETURN OF LOAN
Echo of $80,000,000 Chicago Bank Crash Heard In Government Suit
PART OF LOAN REPAID
But Fourteen Million RFC Balance Shunted Into Pigeon Hole
Nov. holders of the Central Republic Trust headed former Vice Company, President Charles Dawes, today faced the prospect of having to dig $14,000,000 from their own to part of pockets pay due the Reconstruction Finance Corporation. RFC filed suit in Federal The District Court, asking appointment receiver to collect the $14,000,000, equal to the Trust's Company's under the law total due the federal loan The sum agency the unpaid balance of the famous $80,000,000 negotiated by General Dawes in 1932 for the Central Republic Bank & Trust which was chairman, shortly after he retired as head of the RFC prolonged run forced the bank to close two months after the loan was made Deposit liabilities sumed by the City National Bank Trust Company, the Central Republic paying over out of the RFC loan an amount equal to the deposits. Dawes now heads the City National Other liabilities and assets of the failed bank were transferred to the Central Republic Trust Company, (Please Turn to Page
14.
November 22, 1934
Effingham Daily Record
Effingham, IL
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IS OBJECT OF RFC LAWSUIT of the Central Republic Trust company, headed by former vice president Charles G. Dawes, faced the prospect of having to dig up $14,000,000 from pockets to pay part of $60,476,437 due the Reconstruction Finance Corporation. The RFC filed suit in federal district court late yesterday, asking appointment of receiver to collect the 814,000,000 equal to the trust company's total capitalization, under the law providing double liability for bank stockholders.
The sum due the federal loan agency the unpaid balance of the famous $80,000,000 loan negotiated by General Dawes in 1932 for the Central Republie Bank Trust company of which he chairman, shortly after he retired head of the RFC. A prolonged run forced the bank to close two months after the loan was made. Deposit liabilities were assumed by the City National Bank and Trust the Central Republic paying company, over out of the RFC loan an amount equal to the deposits. Dawes now heads the combined banks. Other liabilities of the bank were transferred to the Central Republic Trust which for two years company, has been liquidating the bank's semifrozen assets and paying debts. The RFC suit stated that State AudBarrett planned to take over the trust for liquidation uncompany der state receiver. Other liabilities have for the most part been paid off, the suit said, while the RFC debt was left to the Inst. The loan has been in default since December 24, 1932. It was made basis to give the temporary purposely RFC power to guard its funds. At the time the loan made declined small loan to meet Dawes the emergency of depositor's run and said he would close the bank if the RFC refused enough cash to cover posits fully. Other Chicago banks, fearIng the effect of major bank failure, intereceded to carry his point.
15.
December 6, 1934
Askov American
Askov, MN
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# BIG BIZ GETS AWAY WITH MILLIONS
(Mille Lacs County Times)
How big business gets away with millions of dollars of goverment funds is being illustrated by recent events in the government loan of $90,000,000 made through the Reconstruction Finance Corporation to the Dawes brothers of Chicago. Of course the loan was made to their private corporation known as the Central Republic Trust Company, and they are able to get out from under by the company going into the hands of a receiver. This gives the Dawes a chance to get out from under liability and leaves the government holding the bag. It is another instance of how private corporations are the biggest evils in this nation, and have brought the country to the verge of ruin. The government is now trying to find out if there is any liability attached to the stockholders of the corporation. The following news dispatch to the daily papers illustrates the situation:
"The Reconstruction Finance Corporation moved today to collect a part of overdue funds in the $90,000,000 'Dawes Loan.'
"In federal court yesterday attorneys for the RFC filed suit against the 4,000 stockholders of the Central Republic Trust Company seeking to determine their liability in the claimed $60,000,000 unpaid balance.
"The court was asked to determine if recovery could be made of $14,000,000, the amount of the company's capital stock. Among stockholders named is Gen. Charles G. Dawes, one-time official of the company.
"At the time the bill was filed Federal Judge John P. Barnes granted RFC attorneys a temporary restraining order enjoining other creditors of the stock holders from instituting similar suits pending disposal of the bill."