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BANK LOAN Institution Was Former Vice by President Dawes Stockholders the Central Trust company, headed by Former Vice President Charles G. Dawes, today faced the prospect of having to dig up from their pockets $14,000,000 due the part of pay Reconstruction Finance corporation. in federal disfiled suit late yesterday, askcourt apointment of receiver to colequal to the lect the total capitalization, trust company's providing double under the law ability for bank stockholders. The sum due the federal loan ency is the unpaid balance of the $80,000,000, loan negotiated famous 1932 for the General Dawes in by Bank Trust Central Republic he was chairof which company, after he retired man, shortly in of the RFC. head forced the bank A prolonged run to close two months after the loan liabilities were made. Deposit was assumed by the City National Bank the Central and Trust company, out of the paying over Republic RFC loan an amount equal to the heads the City deposits. Dawes now National. Other liabilities and assets of the transferred to the failed bank were Trust company, Central Republic has been which for two years the bank's and paying stated that State The RFC suit Barrett planned to Auditor E. take over the Trust company for quidation under state receiver. Other liabilities have for the most the said, been paid part debt was left to the while the RFC last. has been in The loan 24, 1932. It was made on December temporary basis purposely to give the RFC power to guard its funds. the loan was made At the time Dawes declined small loan to meet the emergency of depositors' run and said he would close the bank if enough cash to the RFC refused fully. Other Chicago cover deposits effect of major banks, fearing the interceded to his failure, carry bank point.