Union National Bank (Atlantic City, NJ)

Article Text

Receiver rowdy (Continued from Page One) stock. either own name or of any other person, actthe name ing directly or indirectly, as my nominee, (the same banks), nor have owned shares of stock the same banks) 60 days (in January 28. The He further subscribes that he holder the capital stock of the Northside Trust the Union National and that rent for my box has been paid to date." No any kind the public have been by either since the banks closed, but there street yesterday that Walter Hanstein had attorney for the receiver at the National Another report was that City Solicitor Joseph Perskie had been named the the Atlantic City but report that was without foundation, no attorney had been appointed as yet. The regulations concerning access to safe deposit boxes after closof bank's business are to be those the Treasury Department at Washington.

Article Text

Duell Brings Suit for Acto Safe Deposit cess Box receiver in charge One government Atlantic City banks closed the courts. access The deposit boxes, times the action before yesterday Judge Duell, attorney the Charles Chelsea National Bank which will brought action, tested Duell other papers deposit the National Bank which Second claims that Faircloth, receiver and Charles of the representative refuses permit him the open reporter saw mimeYesterday affidavit which ographed the closed banks are boxholders sign and asking alleged, they their keys in the permitted boxes, rented by year. formal address the After and blank space for insertceiver number and the leasee's the box certifies that name, affiant "not indebted to the Atlantic City National Northside Trust Company Union Naliquidation) Bank either tional maker, endorser guarantor, rectly indirectly any form obligation held any other the said banks. boxholder asked and sayeth that he shares of the capital holder any (Continued on Page Five)

Article Text

Receiver

(Continued from Page One) stock. either my own name in the name of any other person, actdirectly my (the same owned any of stock the same banks) for 60 days (in January 1933 He further subscribes that he holder the stock the Northside Trust the Union National and that rent for my box has been paid No kind the public have been volunteered either receiver since the banks closed, there was street port yesterday that Walter Hanstein been appointed attorney for the receiver the National. Another report that Solicitor Joseph Perskie had been named attorney for the receivthe Atlantic City National, but report said that this without foundation, and no attorney had been appointed yet. The regulations concerning access deposit boxes after the closbank's banking business are said those of the Treasury Department at Washington.

Article Text

Sue Bank Stockholders

Receiver for Union National Recover Liability Assessment March collect from stockholders today leged receiver Union Bank. Atlantic the instituCity, merged the Atlantic City tions National Bank defendants and the Named amounts Margaret $300; William Brown, John Wil$4200; Andrew liam Jacoby, $2500; Gardner $200 for the bank pointed last December 100 was levied last January

Article Text

Sue Bank Stockholders

Receiver for Union National Seeks March collect six leged filed today the Union National Atlantic City, the institumerged with the Atlantic City Named and the are $300; William Brown, $1000; John William Andrew Jacoby, $2500; Mittie Gardner, Receiver the bank was appointed December liability stock assesslevied last January

Article Text

Bank Classed Irregular tional Took Over Union

DECISION IS RESERVED

Claims Directors Acted Without Shareholder Authority;

Charges that the purchase of the

Union National Bank by the lantic City National Bank was engineered without the authority stockholders. and that no cash to the former made yesterday before Federal Judge John Boyd Avis The charges made by William Clevenger, Atlantic City torney, said directors the closed Atlantic City National, headed by John Slape, President, engineered the deal. Clevenger opposing assessment stock in the Union National Bank by himself and his daughter, Mrs. Margaret Eldreth. He assessed each shares, and his daughlike amount three shares. Judge decision pending the filing continued restraining against closed bank, assesssettled. Slaughter, revealed filed in Federal Thomas attorney argued Atlantic National Bank paid Union agreed purchase the could not assess the stock.

Clevenger's Petition Clevenger petition stated September 30, 1931 the Atlantic Union Bank City without the and acting and entirely for the Atlantic City Bank to the Union Bank. the expressthatt fixtures should the Atlantic City Nathat all notes, regardcollected Atlantic City Bank from the be losses. also that the lantic would Bank books the business on Sept. The petition goes state that the by Slape and follows the stockholders of Union Bank William Elsreth who voted shares noted the the and the ing the liquidaAtlantic National Bank liquidating the of the Bank John Tilton John Bank. City Bank entered into and Union but neglected. pay the the Union

The petition that Slaughter entered possession remaining property failed balance On and according included the following: counted. demand 500; furniture other service charge and Clevenger called the court fact though the Union National Bank Great Bay Corporation

Article Text

Bank Classed Irregular

Clevenger Charges When tional Took Over Union

DECISION IS RESERVED

Claims Directors Acted Without Shareholder Authority; Continued Union National Bank being then John president of the Atlantic Bank, and his without the the respective banks solely and entirely upon the for 977.63 paid the Atlantic City Bank to the Union Bank the was expressfixtures this the Atlantic City NaBank that all notes. regardcollected the City Bank from lantic Bank would of business on Sept. The petition goes on that by Slape and follows: the Union Bank Dec William Elsreth and Marion Mitchell, who voted their shares against noted the of the and well the liquidaAtlantic National Bank liquidating the Union charge John Tilton John directors Bank Bank into the property assets the Union National Bank failed and the pay cash the Union

The petition said that Slaughter the but cash balance On these and accordreceiver included the Bills bonds building, $121.500; and fixtures, service charge mortgages, and $639.90. called the atten. court fact though the Union National Bank building valued sold Great Bay Corporation for $198,000.

Article Text

STOCKHOLDER MUST PAY

Judge Rules Bank Stockholder Must Make Payments tho Bankrupt.

CAMDEN, July 20 (AP)—Federal Judge John Boyd Avis ruled yesterday that bankruptcy does not relieve a stockholder in a closed bank of the obligation of paying assessments on the bank's stock.

Judge Avis ordered that William E. Brown, jr., be compelled to pay a $1,000 assessment on his stock in the Union National bank of Atlantic City.

On motion of Laurence E. Slaughter, bank receiver, he denied Brown's defense that adjudication and discharge in bankruptcy relieved him of liability on the stock.

Brown had argued that he listed the stock as an asset, and the liability to assessment as a debt, and the liability not having been excepted in the discharge, he was discharged from the indebtedness. He further claimed that the liability for assessment was a provable debt at the time he was adjudged bankrupt.

Article Text

Camden—(AP)—Federal Judge John Boyd Avis has ruled that bankruptcy does not relieve a stockholder in a closed bank of the obligation of paying assessments on the bank's stock.

Judge Avis ordered that William E. Brown Jr., be compelled to pay a $1,000 assessment on his stock in the Union National Bank of Atlantic City.

Article Text

Bank Stockholder Held Responsible Even in Bankruptcy

Camden—(AP)—Federal Judge John Boyd Avis has ruled that bankruptcy does not relieve a stockholder in a closed bank of the obligation of paying assessments on the bank's stock.

Judge Avis ordered that William E. Brown Jr., be compelled to pay a $1,000 assessment on his stock in the Union National Bank of Atlantic City.

On motion of Laurence E. Slaughter, bank receiver, he denied Brown's defense that adjudication and discharge in bankruptcy relieved him of liability on the stock.

Brown had argued that he listed the stock as an asset, and the liability to assessment as a debt, and the liability not having been excepted in the discharge, he was discharged from the indebtedness. He further claimed that the liability for assessment was a provable debt at the time he was adjudged bankrupt.

Article Text

Bank Stockholders Held Liable For Assessments

Camden, July 19 (AP) — Federal Judge John Boyd Avis ruled today that bankruptcy does not relieve a stockholder in a closed bank of the obligation of paying assessments on the bank's stock.

Judge Avis ordered that William E. Brown, Jr., be compelled to pay a $1,000 assessment on his stock in the Union National Bank of Atlantic City.

On motion of Laurence E. Slaughter, bank receiver, he denied Brown's defense that adjudication and discharge in bankruptcy relieved him of liability on the stock.

Brown had argued that he listed the stock as an asset, and the liability to assessment as a debt, and the liability not having been excepted in the discharge, he was discharged from indebtedness. He further claimed that the liability for assessment was a provable debt at the time he was adjudged bankrupt.

Article Text

Camden, July 19 (AP) — Federal Judge John Boyd Avis ruled today that bankruptcy does not relieve a stockholder in a closed bank of the obligation of paying assessments on the bank's stock.

Judge Avis ordered that William E. Brown, Jr., be compelled to pay a $1,000 assessment on his stock in the Union National Bank of Atlantic City.

On motion of Laurence E. Slaughter, bank receiver, he denied Brown's defense that adjudication and discharge in bankruptcy relieved him of liability on the stock.

Brown had argued that he listed the stock as an asset, and the liability to assessment as a debt, and the liability not having been excepted in the discharge, he was discharged from indebtedness. He further claimed that the liability for assessment was a provable debt at the time he was adjudged bankrupt.

Article Text

Bank Victor On Assessment

Court Enters Judgment Against Brown Despite Bankruptcy Discharge

Judge John Boyd Avis, in U. S. District Court in Camden yesterday entered a rule for summary judgment against William E. Brown Jr., of Atlantic City, for the amount of a 100 per cent assessment on ten shares of capital stock of the defunct Union National bank, of the resort. The shares were of $100 par value each.

The judgment also requires Brown to pay interest and costs.

Lawrence A. Slaughter, bank receiver, sued to collect the $1000 assessment levied upon the stockholder by the U. S. Comptroller following the bank's failure. Brown refused to pay and set up a number of defenses in his answer to the petition. Chief among them was that he had been adjudged bankrupt April 21, 1933, and had been discharged from bankruptcy July 31, 1933.

He claimed that he was, under the circumstances, discharged from liability on the stock.

Ruling on a motion by Slaughter to strike out the answer and pronounce summary judgment, Judge Avis said he was satisfied that Brown was the owner of the stock at the time of the assessment. The assessment was made June 8, 1934.

In his ruling Judge Avis stated: "That the obligation was not a provable claim against the bankrupt estate at the time of adjudication; that the discharge of the defendant as a bankrupt did not release him from the assessment on his stock made thereafter; and that the fact that the Union National went into voluntary liquidation prior to the defendant's adjudication as a bankrupt could not fix the liability of the defendant prior to adjudication unless proceedings had been taken thereto."

Judge Avis then ruled: "The answer will be stricken as a sham, and the defenses stricken as sham or frivolous, and a rule for summary judgment will be entered for the amount of the assessment with interest and costs."

Article Text

Bank Victor On Assessment

Court Enters Judgment Against Brown Despite Bankruptcy Discharge

Judge John Boyd Avis, in U. S. District Court in Camden yesterday entered a rule for summary judgment against William E. Brown Jr., of Atlantic City, for the amount of a 100 per cent assessment on ten shares of capital stock of the defunct Union National bank, of the resort. The shares were of $100 par value each.

The judgment also requires Brown to pay interest and costs. Lawrence A. Slaughter, bank receiver, sued to collect the $1000 assessment levied upon the stockholder by the U. S. Comptroller following the bank's failure. Brown refused to pay and set up a number of defenses in his answer to the petition. Chief among them was that he had been adjudged bankrupt April 21, 1933, and had been discharged from bankruptcy July 31, 1933.

He claimed that he was, under the circumstances, discharged from liability on the stock.

Ruling on a motion by Slaughter to strike out the answer and pronounce summary judgment, Judge Avis said he was satisfied that Brown was the owner of the stock at the time of the assessment. The assessment was made June 8, 1934.

In his ruling Judge Avis stated: "That the obligation was not a provable claim against the bankrupt estate at the time of adjudication; that the discharge of the defendant as a bankrupt did not release him from the assessment on his stock made thereafter; and that the fact that the Union National went into voluntary liquidation prior to the defendant's adjudication as a bankrupt could not fix the liability of the defendant prior to adjudication unless proceedings had been taken thereto."

Judge Avis then ruled: "The answer will be stricken as a sham, and the defenses stricken as sham or frivolous, and a rule for summary judgment will be entered for the amount of the assessment with interest and costs."