56-0003TOLEDO. Ohio. June 17 (I.N.S.) The $38,000,000 Security Home Trust Company Bank. the third largest financial institution here. failed to open its doors today. The bank has 11 branches. A heavy run caused the shutdown. Officials declared that the depositors funds are protected.
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Large Toledo Bank Closes After Run TOLEDO, Ohio, June 17 (I.N.S.) The $38,000,000 Security Home Trust Company Bank, the third largest financial institution here, failed to open its doors today. The bank has 11 branches. A heavy run caused the shutdown. Officials declared that the depositors' funds are protected.
Ely Magaleski Glen Lyon Leona Strazdus Plymouth
Ytsen Addens Alberts Cecella Hetler Alberts
Toledo O., June 17.-The Security Home Trust Company Bank. the third largest financial institution here. falled to open its doors today The bank has branches all parts the city and they also closed. heavy run the bank caused the shutdown. Officials declared that the depositors funds are protected At the examination, the Charles C. Moyer Dorrance institution listed $38,Dora Drasher St. Johns The Ohio State Banking DepartVincent Mishef ment has taken over charge of the Edith Fletcher Parsons
TOLEDO, O., June 17. (INS)-The Security Home and Trust company bank its eleven branches parts the failed to open their doors today. heavy run the banks caused the declared of shown in the last statement
TOLEDO, O., June 17 Security Home Trust company, third largest banking institution with resources exceeding failed open main office and branch offices today. Over deposits tied Heavy withdrawals, induced by "undue fear caused by the depression," forced the bank to pend, was said. large part the funds formed county, city and school board moneys.
Toledo Institution and 11 Branches Fail to Open.
United Press June curity Home Trust Company, third largest banking institution here with resources exceeding $36,000,000, failed to open the doors of its main office and eleven offices today. $20,000,000 in deposits Heavy withdrawals. induced by "undue caused by the ness depression, forced the bank to was large the formed by county, city and school board moneys.
Large Toledo Bank Has Failed To Open Toledo, 0., June Security Home Trust company bank, the third largest financial institution here, failed to open its doors today. The bank has 11 branches in all parts of the city and they also were closed: A heavy run on the bank caused the shutdown. Officials declared that the depositors' funds are protected.
TOLEDO, O., June 17. (INS) The Security Trust Company Bank. the third largest financial stitution here, failed to open its doors The bank has eleven branches in all parts of the city and they also were closed. heavy run on the bank caused the shutdown. Officials declared that the depositors' funds are protected At the last bank examination, the institution listed of $38,000,000 and deposits of $22,000,000. The Ohio State Banking Department has taken charge of the bank.
Power Firms Use Funds Toledo's Third Largest Bank Closes Its Doors To Fight Utility Laws
TOLEDO (Ohio), June The federal trade was The Security Home Trust Cominformed to-day that the Pacific pany Bank the third largest finan Power and Light Company Electric Com- cial institution here, failed to open the Northwestern $21,000 in campaigns its doors yesterday. The bank has pany spent and Washington eleven in all parts of the in Oregon enactment the city and they also were closed year again utility and power heavy run on the bank caused Grange public the shutdown. Officials declared district bills. depositors' funds are protected. letter read at the Platt, signed At the last bank examination, the treasurer of the com- listed resources $38 said Pacific Power had 000,000 and deposits of $22,000,000 panies, $13,270 and Northwestern The Ohio state banking depart$8,292 "chiefly for pam- ment has taken charge or toe Electric
Toledo, O., Aug. Toledo combined resources more than open business this while eleven clations ceased deposits during the present financial with the request of the four pared take their preassets the previous steady by depositCity police and acting under orders Police Chief Louis Haas, patroled banking tricts in preparation for any public Meanwhile there was pending JackAdjutant General Frank ing the Ohio National Mayor also Director Black and Col. Safety the Ohio National The action of for indefinite period more $100,Home of deposits. The SecurityTrust Company closed about $20,000,000 the Ohio Savings Bank Trust Company almost Commercial Savings Bank and Company $13,466,000, Trust ComTrust Savings Bank $21,741,000.
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FINANCIAL STRUCTURE OF THE NATION IS TOTTERING Toledo, Aug. 17.- The state banking department and directors today (Monday) closed four large Toledo banks with 34 branches, 150,000 accounts and combined resources of more than $100,000,000 as the second cycle of bank failures moves westward. They are the Ohio Savings Bank and Trust Company, the Commerce Guardian Trust and Savings bank, the Commercial Savings and Trust company and the American bank. The closing several weeks ago of the Security Home Trust company caused today's action, it was said. Sixty men from the state banking department and six federal reserve examiners from Cleveland immediately began the task of liquidating the assets of the suspended institution. Eleven large savings banks suspended payments upon demand and took advantage of the 30 day notice clause for withdrawals. Other Toledo banks met heavy withdrawals, and announced they were prepared for still more. The building and loan companies notified depositors that no withdrawals would be permitted until the situation was adjusted.
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PROSPERITY PLAN WORKS IN TOLEDO Set-up Devised to Make Good All Deposits in Four Big Banks Which Closed. By the Associated Press. TOLEDO, Ohio, November 23.-Without waiting for a return of Nation-wide prosperity to give it a helping boost, this city, hard hit by a series of large bank failures, is pulling itself out of the mire "by its boot-straps." Although approximately $100,000,000 was tied up in the four big banks which closed several months ago, Toledo has kept the wheels of commerce running steadily, and 'now at last things are getting better. Factories are working faster and longer, retail trade is picking up, people on the streets are smiling again, and best of all-the closed banks are expecting to pay a hundred cents on the dollar. The initial dividends of 15 to 30 per cent are scheduled to be paid December 15. Ingenious Scheme Devised. The four large banks which closed, and their approximate deposits, were: Ohio Savings & Trust Co., $36,000,000; Commercial Savings Bank & Trust Co., $17,000,000; Security-Home Trust Co., $20,000,000, and the Commerce-Guardian Trust & Savings Bank, $18,000,000. An ingenious scheme was devised to cope with the problems of these closed institutions. Instead of selling their assets at "distress-sale" prices, special financial machinery is being set up to give the depositors all the ready cash possible, yet save them from the losses of a hasty liquidation. Under the salvaging plan, approved by the State banking department, a new bank and three holding companies are being organized to take over the Ohio, the Commercial and the Security-Home, December 15. Fourth to Be Reorganized. All available cash and prime securities are to be transferred that day to the new bank and credited pro-rata to the old despositors. The initial credit from the old banks will average 20 per cent. The rest of the assets will be deposited separately with the holding companies. The new bank is to be capitalized at not less than $2,500,000, of which half is to come voluntarily from the depositors themselves. The fourth bank, the Commerce-Guardian, will be reorganized under a new name, independently of the others. Its successor also will open December 15, and will put 30 per cent of each old deposit in new accounts.
Toledo, Jan. 2.-(P)-Six officers and directors of the Security Home Trust Company, which closed its doors here June 16, were indicted by the Lucas county grand jury today. Those indicted are: Stacey L. McNair, president of the Security Home Trust Company; William H. Guneckel, vice-president; Raleigh D. Mills, president; Leroy FL Eastman, director; Frank C. Hoshier, director; Clifford C. Whit more, director. Charges against the six officers and directors were contained in seven true bills. Each indictment included several counts. A summary of the charges as explained in statement given out by the grand jury said that the first indictment against President McNary was based upon the pay. ment of dividend of $37,500 April 1,-1931, before the bank closed. There was seven counts charging un lawful abstraction, wilful misapplication of funds, and false report. Approximately $20,000,000 in deposits were tied up when the bank suspended. It started paying a ten percent dividend to depositors Dec.
ST.LOUIS POST-DISPATCH SIX OFFICERS OF BANK THAT CLOSED INDICTED
Toledo Concern Paid $37,500 Dividend Before Suspension, It Is Charged.
By the Associated Press. TOLEDO. O., Jan. 2.-Six officers and directors of the Security Home Trust Co., which closed its doors here June 16, were indicted by the Lucas County grand jury today. Those indicted are: Stacey L. McNair. president of the company; William H. Gunckel and Raleigh D. Mills, vice presidents: Leroy E. Eastman. Frank C. Hoehler and Clifford C. Whitmore, directors. A summary of the charges as explained in a statement given out by the grand jury, said that the first indictment against President McNair was based upon the payment of a dividend of $37,500 April 1, 1931, before the bank closed. There was seven counts charging unlawful abstraction, wilful misapplication of funds and false report. A second indictment against McNary charged that the March 25 report of the bank's condition was false, in that it allegedly showed undivided profits where there were none and showed the value of se. curities greater than they were. Whitmore was indicted on six counts charging misapplication and unlawful abstraction of funds through alleged overdrafts of the Tower Building Co., which owns the bank's building. He also was indicted on charges of false entry and false statement McNary, Gunckel, Mills and Eastman were indicted on four counts charging that they permitted deposits to be received when they knew the bank to be insolvent. McNary and Hoehler were indicted on charges of misapplication and false entry Judge Charles H. Lemmon announced the indicted bankers would be notified to appear in court Monday morning. at which time bond will be fixed. Approximately $20,000,000 in deposits were tied up when the bank suspended. It started paying 10 per cent dividend to depositors Dec. 24.
Officials of a Closed Toledo Institution to Be Tried
(By the Associated Press.) Toledo, O.-Six officers and directors of the Trust company which closed its doors June 16, were indicted by the Lucas county grand jury Saturday. Those indicted were: Stacey L. McNair, president of the SecurityHome Trust company; William H. Gunckel, vice president; Raleigh D. Mills, vice president; Leroy E. Eastman, director; Frank C. Hoehler, di. rector; Clifford C. Whitmore director. A second indictment against McNary charged that the March 25 report of the bank's condition was false in that it allegedly showed undivided profits where there were none and showed the value of securities greater than they were. Whitemore was indicted on six counts charging mísapplication and unlawful abstraction of funds through alleged overdrafts of the Tower Building company which owns the bank's building. He also was indicted on charges of false entry and false statement. McNary, Gunekel, Mills and Eastman were indicted on four counts charging that they permitted deposits to be received when they knew the bank to be insolvent. McNary and Hoehler were indicted on charges of misapplication and false entry. Judge Charles H. Lemmon announced no attempt would be made to arrest the indicted bankers over the weekend but that they would be notified to appear in court Monday. Approximately $20,000,000 in deposits were tied up when the bank suspended. It started paying a 10 per cent dividend to depositors December 24.
Indictments Are ReturnFollowing Closing of House in June
Associated and directors of the Security Home Trust company which closed doors here June 16 were indicted by the Lucas county grand jury today. Those indicted Stacey McNary president the Trust company, William Gunckel, vice president; Raleigh Mills, vice president: Leroy Eastman. director Frank Hoehler Clifford Whitmore. directors. summary the charges plained in statement the grand said first indietment against President based the payment April 1931, before the bank closed. There were seven counts charg unlawful abstraction, misapplication of funds and false report Approximately in posits were tied up when the bank suspended. paid per cent dividend to depositors December 24.
Senate Committee Hears of Withdrawals From Toledo Institution
O., frantic $1,717.000 from the Security Home Trust Company here in day, precipitating forced the bank to the next morning, today was the being sketched before the state bank committee probing closed Toledo banks. Edward Falkenstein, special vestigator the legislative mittee, reported that $10,781,000 withdrawn the year before the Home Trust Company failed on June 16, 1931. crash, said, hurried one-day run which more 1,000,000 was manded by He bombshell into the hearing when he made definite that some the records of the trust were "either lost or Questioned by Marshall, of the reitthat he had been unable find some records that he regarded Senator Lewis, committee member, made recommendations for drastic changes laws during the state of the hearing He urged that be regulated, that be on investments bonds and foreign securities, loans directors be limited that number of men on the board of directors be cut small number. Some of recommendations are embodied in the federal reserve banking laws.