Reading National Bank & Trust Company (Reading, PA)

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Advances in May By RFC Aggregate Over $168,000,000

Money Lent to Pay Back Taxes Saves Homes and Aids Local Government

The Reconstruction Finance Corporation reported today that it authorized advances in May aggregating $168,644,166 The report showed that loans authorized to banks and other financial institutions at 4 per cent interest totaled $57,512,410. Other large advances authorized included $41,820,000. Other large advances authorized included $41,820,000 for subscription to preferred stocks in banks $45,000,000 for the Home Owners' Loan Corporation: $5,455.500 in loans to drainage and irrigation projects. The balance was for relief and other government purposes.

Banks Get Bulk Of the $57,512,410 authorized in loans, $32,698,236 went to banks and trust companies, including $28.615,330 to aid in the reorganization or liquidation of closed institutions and $22,048.883 to mortgage loan companies. Among some of the larger loans authorized to banks were: United States Savings Bank, receiver Washington, D. C., $1,080,000; North-Western Trust and Savings Bank, receiver, Chicago, $2,500,000 West Side Trust and Savings Bank, receiver. Chicago, $1,500,000; Calcasieu National Bank, Lake Charles, Louisiana, $1,965,480; Commercial National Bank of Philadelphia conservator, $2,540,000; Farmers National Bank and Trust Company 650,000; Penn National Bank and Trust Company, Reading, Penna. conservator, $1,190,000; and the Reading National Bank and Trust Company, Reading Penn., conservator, $1,972,000 Of the loans authorized to mort gage loan companies. $10,000,000 was for the Electric Home and Farm Authority at Chattanooga Tenn.: $2,382,493 to the Santa Ana Mortgage Investment Company, Santa Ana. Calif., and $1,000,000 to the Textile Industry Mortgage Company in New York City. Preferred Stock Subscriptions Authority for a loan of $2,5000.000 at 4 per cent interest to the board of deposits of Wisconsin at Madison was granted but no part of this sum had been disbursed up to May 31.

Subscriptions on preferred stocks in banks included: The First National Bank and Trust Company, Bridgeport, Conn. $1,000,000 Fidelity Union Trust Company, Newark, N. J., $7,000.000 Central United National Bank. Cleveland. Ohio, $8,000,000 and the City National Bank and Trust Company, Columbus, Ohio, $1,000.000.

The corporation also authorized a purchase of $1,500,000 in debentures. of the Mississippi Valley Trust Company, St. Louis, and 9 loan of $3,500,000 on the Globe and Rutgers Fire Insurance Company to. the Globe Rehabilitation Company, Ltd. New York, none of which had been disbursed up to May 31.

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HOLC BONDS SOUGHT BY BANK RECEIVERS

Would Exchange Mortgages for Securities

Judge Frederick A. Marx heard petitions Saturday by bank receivers for permission to exchange mortgages on dwellings for Home Owners Loan corporation bonds paying 2% percent interest. The petitions were presented by C. Weidner, attorney for the receiver of Farmers National Bank and Trust company and William McKee Rutter and George B Balmer, attorneys for the receivers for the Reading National Bank and Trust company and for the Penn National Bank and Trust company. The mortgages, more than 100 in number, involved more than $200.000 in the case of each banking institution. The petitions, which were unopposed, were hold under

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PHILADELPHIA, March 11 (AP)—The federal court today set April 15 for hearing of a stockholders' suit to prevent the government from levying $1,600,000 in assessments on two closed Reading banks.

The hearing was scheduled for today, but was postponed at the request of Harry R. Matten, Reading attorney, representing the U. S. comptroller of currency, and the receiver of the banks.

In the meantime, opposing counsel agreed neither the receivers nor the government will start legal action to collect the money, for the present.

The suit arose over the government's efforts to collect $600,000 in assessments from stockholders of the Reading National Bank and Trust company and $1,000,000 from stockholders of the Penn Bank and Trust company. Both institutions closed in 1933.

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READING BANK RECEIVER BRINGS SUIT ON $10,964 NOTE

PHILADELPHIA, May 8. (AP)—Harvey S. Adams, federal receiver for the Reading National Bank and Trust company, today brought suit in U. S. district court against George A. Ravel, Reading, for a balance of $10,072 he claims is due on a promissory note.

Adams said the original amount of the note was $10,964. The suit asks the balance and interest from February 2, 1935.

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$10,336 PROBLEM IN BANK ACCOUNT OF LATE SHERIFF

County Seeks to Learn Status of Funds Deposited by Esterly

MANY CLAIMS LIKELY

Some Tax Money, Balance Unclaimed Following Sales, Says Son

If you find $10,000 in a bank in the name of a former sheriff, is it the sheriff's, the county's, or Joe Spivvins'?

That was the neat little problem in law and finance that the county commissioners were trying to solve yesterday, when they learned that the Reading National bank receiver was holding $10,336.90 in an account in the name of the late John S. Esterly, former sheriff.

"Mr. Harry R. Matten, the receiver of the bank, told me an effort was made to withdraw the money but since he believed it belonged to the county, he thought the county should be notified," Ralph G. Matthew, chief clerk to the county commissioners, told the board of commissioners.

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GUARDS WITHDRAWN

Both Sides Agree Money Will Be Untouched, Pending Decision

Final disposal of the $10,800 fund, in the Reading National Bank and Trust company to the credit of former Sheriff John S. Esterly, is up to the Berks court.

"The entire matter is up to the court," County Commissioner Nathaniel Gring declared Saturday when Judge H. Robert Mays declined to grant the county commissioners' request for an injunction to tie up the fund.

Mays commended the commissioners for bringing the matter to public attention.

"The sheriff is a court official and we must take notice of that," Mays declared at the hearing. "There ought to be an audit of the account, to ascertain to whom the money belongs. If the parties cannot agree on such a step, the court will take action."

To Remain Untouched

Before the hearing closed, John E. Esterly, heir of the late sheriff and one of his deputies, told the court he would not attempt to withdraw any part of the fund while the proceeding is pending and attorneys for the Reading National bank receiver said they would give notice to the court before paying out any of the fund.

John B. Stevens, counsel for John E. Esterly, took exception to the commissioners' bringing the injunction proceeding, declaring there was "no occasion for action."

"There is no duty on the part of John E. Esterly to pay out the money unless request is made for it," Stevens said. "The reason we have this money is because Mr. Esterly's successor refused to accept responsibility for it."

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DENY AUTHORITY OF COURTS HERE

Filing an answer to proceedings of the county seeking to impound a deposit in the name of John S. Esterly, sheriff, in the Reading National Bank and Trust company, the bank's receiver yesterday through Matten & Matten, attorneys, declared local courts have no jurisdiction. The receiver held federal courts control national banking matters and that the comptroller of the currency has charge of the money.

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BANK RECEIVERS FILE PETITION

Ask Court to Sanction Compromise in Claims Against Creditor

Judge Shanaman yesterday took under advisement a petition of receivers of the Farmers National Bank and Trust company and the Reading National Bank and Trust company seeking permission to compromise claims against Merritt Lumber Yards, Inc.

George B. Balmer for the receivers claimed the controller of the currency has agreed notes held by the receivers against the lumber company should be exchanged for preferred stock under a proposed reorganization plan.

Edward C. Nolan and Harvey S. Adams are the receivers. The Farmers' bank claim is more than $100,000 and the Reading National more than $23,000.

Plans of reorganization, together with the manner creditors are to be handled and claims listed, were contained in a lengthy statement made part of the record.

Largest Note Holder

Since the Farmers' bank is the largest holder of the notes, Balmer said Nolan, receiver, would have control of the lumber company, although Fred H. Ludwig, would continue as active manager and certain common stock held by the bank is not to be sold for a period of five years unless authorized by him.

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BANK RECEIVER FILES THREE SUITS

Claiming $4,500 due as a 100 percent assessment on 450 shares of bank stock, Harvey S. Adams, receiver of the Reading National Bank and Trust company yesterday filed suit against B. F. Whitman, Pennside.

Adams named two other defendants in suits to collect sums alleged due on note transactions. They were against John H. Snyder, Reading, for $2,861.49, and Mrs. Israel Liever for $6,956.53. Matten & Matten appeared for the receiver.

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Would Obtain County Money Placed in Banks Since Closed

Transfer to the federal court of the suit of the Aetna Casualty and Surety company, Hartford, Conn., against the bondsmen of County Treasurer Robert R. Gerhart to recover $66,326.05 county funds "frozen" in two city banks, was approved yesterday by Judge Shanaman. Harvey S. Adams, receiver of the Reading National Bank and Trust company, was the petitioner.

Seeks "Frozen" Funds