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BANK LIQUIDATION CUTS ASSETS Continued Page bank following the suicide Arthur Hubbard, former president of the institution, last April and of hurried trip Chicago the following day, which was Sunday, to obtain in cash. special car was chartered and directors' meeting held en route Chicago, during which was to become president the institution. About cash turned by Erskine and Vincent Bendix, dition to large sum provided by Mr. Morris. The next day run on the bank by depositors took $350,000 from the vaults and the following day. Second Run Occurs. "About the middle of May secondary run more than the first, and during period of about four weeks was withdrawn. he said. "At that time negotiations started for the merger the First National bank and Union Trust company with the Citizens' National bank but time was against us the money was rolling out of the bank faster than we could make our plans. "On June ultimatum came from the national bank examiner that must raise $2,000,000 cash, $1,000,000 for the First National bank and another $1,000,000 for the Union Trust, before the merger would be sanctioned. "The directors met that night an all-night the worst nights have ever experiwe tried in every way to raise the $2,000,000 but was impossible. About o'clock in the morning decided to form state bank to liquidate the First National for the protection depositors and to keep the institution open." Tells of Moving. He described how at o'clock in the morning the Trust comwas to location the Associates building under orders banking examiners and the diana Trust company, which Mr. Morris had acquired controlling interest in on April was moved into the First National bank. When Mr. Morris and his assoclates the Indiana Trust company on April it was in tering condition and, according to him, could not have remained open two weeks longer because of frozen assets. By June when it came the nucleus of the First Bank & Trust company, he said, it was cash position. Mr. Morris described the First Bank & Trust company at the present time one of the soundest institutions in the state. 'And nothing is going to happen that bank, you can count that,' he added. Making Money. Because of recent retrenchments the institution is money, and its cash has increased said, $500,000. At the present nearly time the bank has $100,000 in govsecurities, $100,000 on call from New York banks and $125,in short time paper. said, the monthly Last June $10,800 and this payroll was been reduced to $4,600. Mr. Mor ris has not received any salary the bank since the first month from was president. in deposits the For First Bank & Trust has cash resources, including in cash and due from banks, governsecurities other bonds. The liabilities include in capital stock, surplus fund and profits, $56,724.16 in vested trust $32,066.62 trustee funds and in mortcertificates outstanding. gage Among its resources are in loans and discounts and real mortgage loans and mortgages certifisecurities cates.
