Independence Trust Company (Charlotte, NC)

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BANK NOTICE

Monday. January being a the following banks be closed American Trust Co. Charlotte National Bank Commercial National Bank Independence Trust Co. Merchants & Farmers National

Union National Bank

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TO HEAR BANK CASE MONDAY

Petition For Order to Halt New Bank Plan to Come Up Before Harding

Argument on an order signed Judge Cowper ordering Gurney P. Hood, state bank and W Tyer, conservator of the Independence Trust company, to pear and show cause why they should not be enjoined from proceeding with the reorganization of that trust company into unit of the proposed new Guaranty bank and requiring them to proceed liquidation of the bank be heard Monday at 11 'clock the courthouse before Judge W. Harding of Charlotte. Yesterday Miss Carrie McLean, through her attorneys, Cansler Cansler, filed in Mecklenburg scuperior court an amendment to the original petition for an injunetion in for issuing such an injunction were The petitioners for an injunction represent very minority group of the company's depositors.

President on Cruise. President Roosevelt left his desk to get out the water again late today, boarding the Sequoia for ride down the Potomac to escape the Washington heat.

Fights Child Labor appeal for ratification of the child labor amendment and continuance of efforts for state minimum wage laws was made tonight by Secretary Frances Perkins address the Wellesley college Institute for social progress.

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Complete Scheme Of Merger To Stay On File For 30 Days

New Institution to Have 2,000 Shares of Preferred Stock to Be Sold to R. F. C.-50 Per Cent of Unsecured Claims ill Be Settled.

The complete plan for the organization of a new national bank in Charlotte with a capital stock of $425,000 was filed shortly before noon yesterday in the office of the clerk of Mecklenburg superior court, and the plan will remain on file there for 30 days, which during time any objection to the plan may be registered.

The certain from the present Independence Trust company & Farmers National bank both of have operating restricted the bank holiday The new bank have 2,000 shares of preferred stock to purchased by the Reconstruction Finance corporation at cost of common stock of shares of of $10 share, be purchased at $15 share will provide of and surplus of $75.000

R. C. GRANT LOAN. for from the R. of 000 the Independence Trust company the Merchants bank upon of the of mately 50 per of claims be paid to the unsecured depositors It liquidation for the Independence Trust of under the and of the the resident or presiding judge board of W P. Moody and W Hagood Jr. and the new bank elected the approval of the chief tional ington Federal Reserve 50 the claims the amount of 400 Of 600 will be for the Trust company $319,800 for the Merchants Farmers National TO LEASE PREMISES

The plan that the the premises pendence Trust for one and the lease for reasonable rental rate for the first two years graduated increase rentals for the remaining based increase the full ings deposits in the Independence Trust company amounting about depositors of pendence Trust shown on books the close March and shows and due the total of 441 454 The supersedes plan proposed the Trust company and filed with the Mecklenburg court clerk May in which it was proposed effect merger the North Carolina Bank Trust at and the company at Aberdeen ASSETS LISTED

The plan filed shows the follow ing substantially to be purchased liquidating agent of the Independence Trust on cash proceeds North United bonds tained the The of the be paid full and interest secured liabilities of of 50 dividend on the remainder of net 600 and the the hands M Substantially assets to the the bank ash on hand. $38 of The liabilities that institution to be paid in full postal ings. of Charlotte trust funds. and postmaster account leaving total of 400 This from the tion of cent in the hands of TO GET INTEREST The plan that the shall he made before the of assets the bank has been consumAll assets be by the be the points

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Loan Negotiations Are Near Conclusion

SYLVESTRE DORIAN DIES IN CAR CRASH Search Vainly For Dillinger Trail FIND BODY BY WRECK Hunter MarElected Killed shall, of MARSHALL night OFFICERS was today elected was presbytery of the Presbyterian church. OF AUTO Checks For Dividend Already Written, Conservator IS KEEP UP

For Independence Trust Company ould Release About $650,000 In Cash.

A probability developed depositors the IndeTrust of Charreceive 50 per cent dividend early week. Tyer conserof this that negotiations loan the Finance corporation pay that dividend "likely will be The is seeking loan $650,000 on assets the trust company Checks for the dividend already have and signed by They be mailed out immediately after tion Finance makes available the proceeds this anticipated Mr Tyer said detail in this negotiation mained for It derstood this interest the be quired to pay for this approaching distribution is regarded by Mr Tyer and pect Charlotte The releasing of about should better feeling regarding the future business among the All savings accounts of dren will be in full at through special from tically school in this amount account which intensively terest in thrift

Famed Critic And Companion Die In Accident

REARED IN N. C.

April and and James A. killed in last morning wrecked off near had been several there that neither killed the indicated attempted to from The the bank overturned. Sylvestre the penFork October parents moved Carolina and he and the schools of this and at Oxford Richards enlisted Alabama relative listed at Mrs. Ala Dorian author of several successful biographies and plays. are Bernhardt As "The Life raphy of Isadore and the "La Trahison and At the of nineteen while still student Oxford attracted the scholars thesis, of Child's Through After Oxford he went to France he Sarah Bernhardt Langtry and other the day of whom he Became He left France critic Alfred and to De Janeiro London Daily Mail later signment three months he himself Finding artistic than success French caphe country on the text-book Ship Silver on The Free Press adopted by For few years

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PlanningToLiquidate M. And F. Bank Here

Washington Authorities Indicate That Proposal For Organization Of Piedmont National Park Here Will Not Be Carried Out.

Washington June comptroller of currency's office was restricted Trust company of Charlotte, that the N. dividend. understood this action would void organize bank assets of the Independence Trust and the restricted Merchants and Farmers National bank also Charlotte Both banks have been under restrictions since the 1933 bank holiday. Reorganization plans had been formulated calling for creation of single institution be known as the Piedmont bank The gave why Independence paid the dividend, merely announcing it had received official notification of such was understood receiver will be appointed to liquidate the Merchants and Farmers bank The Independence Trust was state bank.

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MILLION IS PAID

Depositors Given Fifty Per Cent Of Deposits

CHECKS MAILED

The Independence Trust Company of Charlotte paid out more than $500,000 to 8,000 of its re. stricted depositors today. Advices to The Charlotte News from Washington said this payment will force abandonment of the plan to organize the proposed Piedmont National Bank of Charlotte by which partial merger of the assets of the Independence Trust Company and the Merchants and Farmers National bank, also restricted Charlotte institution, would be Application for charter for the proposed new bank is on file in the office of the comptroller of the currency, which indicated this afternoon the application now will be denied. The payment today was the first dividend by the Independence Trust company and represents onehalf of the restricted deposits. Only one-half of the school children's restricted deposits will be paid now, it was announced The plan for the new bank had provided that the savings accounts of more than 15,000 school children would be paid in full. A. Stokes, conservator of the Merchants and Farmers National bank, had no statement to make for publication today. He said any official statement regarding the effect of the trust company's payment on the new-bank proposal must come from the comptroller of the currency, which IS administering the affairs of the Merchants Farmers National bank. The North Carolina Banking department, of which Gurney P. Hood commissioner, is in charge of the Independence Trust, which was state bank. Efforts to communicate with Mr. Hood today were unsuccessful Hundreds of the trust company's depositors cashed their checks today or deposited them with the trust company or some other bank here. These checks were signed by W. B. Tyer as "liquidating agent," which was accepted as an indication that the State Banking department now regards the trust company as being in liquida-

Information available in official sources at Washington was to the effect that the Merchants and Farmers National bank will be liquidated Payment this dividend cleared the way liquidating agent of the Independence Trust

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DELAY BANK RECEIVER

No Action Yet Taken Toward Liquidating Two Restricted Institutions.

No reported yesterday movement liquidate Merchants National and the Independ banks formed basis establishthe proposed Piedmont The proposed new bank failed materialize result of payment by the of the Independence Trust instructions of the department, of per dividend to depositors that inwhich with the Merchants Farmers bank the holiday in March,

MENTIONED

After the office the bank plained that would be appointed liquidate Friends James DeLaney, Charlotte torney, his behalf for and Senator RobReynolds announced would favor Mr. DeLaney's Senator Bailey The Observer he wanted Reynolds his choice position. He said he and Senator submit the names several persons acceptable to them for the Yesterday explained also the Trust that orders had Gurney for that institu-

To Give Ice Cream Supper The Ona Patt rson circle of terian church give an ice supper night the home Mrs. Pat the circle are invited to be pres-

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SOON BANK RECEIVER

M. & Conservator Recommended by Bailey.

REYNOLDS ALSO APPROVES

Senator Says Appointment to Be Made by Comptroller at Early Date.

Appointment of James A. Stokes as receiver of the Merchants & Farmers National bank within the next few the comptroller of the currency is willing to break a precedent of long standing-was being confidently forecast in interested groups here last night. who conservator the bank, which operating upon restricted basis, president and cashier of the institution failed to after banking holiday in March, 1933, and under long established custom one connect. with an institution to be quidated named receiver. BAILEY BACKS STOKES.

The Charlotte been the committee the which Charles Stone chairand last night was Senator Bailey had added his Mr. Stokes already by Senator Robert who previously James DeLaney, Charlotte torney. Mr. DeLaney. declined to allow his to be tered in the contest for the receivership. Because the strong port that has developed for Mr. Stokes and the evident lack of position to him, felt by his friends last that the comptroller might willing break the long followed practice and legal person connected with closed institution ineligible the receivership of that Senator expected appointment be made early date. He was his home Asheville He felt that that rallied Stokes would probably get the NO DEVELOPMENTS. the case of the Independence Trust the other ed state formed with Merchants and Farmers National bank, the called for the new nationbank be named the mont National Plans for the the Piedmont when the the Trust acting upon structions Gurney Hood commissioner banks, 50 the Independence Trust The comptroller of informed action servator Independence Trust company, such action constituted ordered the abandoned was that the Merchants Farmers tional be liquidated. STILL OPERATING

The Trust and far could be learned change the operation plans plated. quarters predicted that state bank be chartered occupy the handsome quarters the Independence Trust company and thereby tenant those quarters. the quarters given and remodeled for the and great valuable banking equipment virtually junked. No definite toward getting motion started the organization of new state bank has been taken. said terday.

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AWAIT WORD ON RECEIVER

No Information Available as to Profitable Appointment of James A. Stokes.

No information was available from yesterday on the proposed appointment receiver for restricted chants Farmers National bank which shortly liquida tion posal new here that bank and the Independence Trust restricted, as the basis of the James Stokes conservator of Farmers whom appeal being made had heard the the expected the comptroller decides to break cedent long standing by appointreceiver who has been connected the bank both and officer bewent restricted basis. Stokes has indorsed for the place Senator Robert and Senator Bailby depositors commitreported Monday, and generally have an excellent chance of being the Independence Trust company, state institution whose payment of cent sulted in the collapse of the plan establish the national bank. terday by Tyer. the conserv-

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Smith Is Favored For Bank Receiver Here

Ask Governor To Speak At Civic Meeting

Junior Chamber Of Commerce Invites Ehringhaus -Joint Luncheon Meeting Planned.

The Charlotte Junior chamber of through its has invited Governor J. in the late or early fall for big

Walter Hoyle president of the his to he stop trip of Western the governor his At the of of the pointed out that no public his election to and was planned as honoring the state's Tentative joint civic and service the and terested the chamber of govermake the principal his first speech in Charlotte elec If the such that can the cide project the to stage "Come to day

Two Senators Back Him For M. And F. Receivership Appointment Expected Soon.

Ten days of political maneuvering came an intermediate dewhen United States Senator Josiah William Bailey recommended Roy formerly an official Independence Trust company of Charlotte the Merchants and National bank of Characcording information tained last night from several Dispatches from Washington last indicated that office currency closed week-end withaction having taken Information obtained by telephone from sources the appointment of Mr Smith few days high officials North Acceptable to Reynolds United States Senator Reynolds declared in that Smith acceptable stating that Mr. Smith had made they met last winter in Washington In Senator in long distance conversation from his in Raleigh that he the appointment made He explanation to for lack ment from the office the comptroller by whom the appointment will declined to dispersons he included his original this appointment, explaining that one man can appointment and making any that The decision the comptroller of the currency to put the Merchants and Farmers National bank in receivership reached about when national here abandoned according to the result the Independence Trust company's liquidating paying dividend the depositors The plan contemplated partial merger the Merchants and Farmers National on Page

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be started this afternoon

with Mr Dorsett taking formal charge Mr. Stokes will be required the bank are being prepared for the formal transfer the assets Mr Stokes to the custody of Mr. It was understood that Mr. the telegram from ington that his services were the close of the bank today. 30 Days Before Dividend From official sources Washington the correspondent of The CharNews obtained forecast that least 30 days must elapse before Mr. will pay the first dividend to the bank's positors. Charlotte sources of information have that funds are the bank sufficient pay an initial dividend of 50 per The announcement of Mr. Dorappointment tion report by The Charlotte week ago would the compromise lection. compromise movement developed immediately after the comptroller's office made known that neither Henry the burg board commissioners, Roy former cashier of the restricted Independence Trust company Charwas eligible for this appointment The obstacle the appointment Stokes the treasury department's policy appointing receiver official the The bank objection to Mr. was had an of the in behalf of Mr Fowler was declared at the treasury to be the objection to Another dispatch from Washington this afternoon said United States of North has recommended Claude well-known Charlotte bank's attorney. attorney for the report in Charlotte concerning the prospective appointment of attorney that John D. Shaw also being advocated for this appointment.

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No Customers Yet For Big Bank Building Here

To date there prospective customers for the Independence Trust company situated the square, the hub of Charlotte's business section, according Gurney Hood, state commissionThe building being offered for liquidation program for the bank. prospects for ing Mr pointed that would require large expenditure money convert the banking quarters establishment elaborfixtures will be almost total Describing the banking quarters the finest appointed of the kind in the bank expressed continued hope that another lotte take although move as yet in prospect.

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CLOSING OF THE definitely decided that fairs of the Independence Trust Company are to be wound up and the bank will out business with the coming of September Thus Charlotte is to lose two landmarks, the liquidation of the Merchants Farmers having been under way for days. The office building from which the Independence Trust Company operated mains of the most elaborate Charlotte's structures and monument the faith of JULIAN LITTLE in the future of this city. was MR. LITTLE astonished the people of the city when he tore down the two-story frame building on the Independence Square corner, known to the older people for long time as "Wriston's corand erected in its place towering office building, the leader office construction in the The Independence Trust Company had popular business, but early the days of depression it had the misfortune to the victim street gossip, the whispers growing volume sufficient incite The bank resisted this stampede substantial manner and might have been able to have survived permanent institution but for the grouping of one unfavorable circumstance after other. made noble effort to survive behalf of its stockholders and depositors, but the difficulties character that could not be the fine institution history.

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Speed Plans To Pay Claims Of Bank Here

State Department Files In Court Here Two Actions To Clear Legal Obstacles To Independence Trust Company Liquidation—Want $400,000 Loan.

The North Carolina banking department's proposal to complete liquidation of the Independence Trust Company of Charlotte by selling the bank's assets and paying all claims in full went into the courts here yesterday in two proceedings.

Confidence was expressed by Gurney P. Hood, state commissioner of banks, at Raleigh, and W. B. Tyer, liquidating agent of the local bank, at Gastonia, that Judge Harding, in

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Seeks Injunction

Commissioner Hood instituted proceedings in superior court here for an injunction to prevent this special act being applied to the Independence Trust company and its plan for liquidation.

This situation was regarded by leaders in the move for this bank's liquidation as being both delicate and important, as failure to obtain the requested injunction likely would cause the RFC to rescind its commitment to make an additional $400,000 loan on the bank's assets.

The terms of the proposed liquidation plan could not be carried out unless this loan is obtained, it was explained officially.

The hearing on the injunction petition will be held May 27 by Judge Harding.

On the following day Judge Harding will hear the second proceeding brought yesterday in this matter. This proceeding seeks authority of the court to dispose of all remaining assets of the bank to a new corporation, with headquarters here, which would pay approximately $225,000 in cash to Mr. Tyer for the various properties, in addition to other amounts for other purposes.

Announcement also was made yesterday that the new corporation will be known as the Independence corporation. Among the leaders in the move to organize this corporation are W. A. Watson, former chairman of the board, and Julian H. Little, former president, of the Independence Trust company. Approximately $225,000 of capital stock of this corporation has been sold.

Details of the corporation's plan

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Early Payment Of I. T. Money Gloomy

Miss McLean's Move to Appeal Judge Harding's Ruling May Prevent Early Liquidation of Bank, Receiver Says.

Fear that the appeal of Miss Carrie McLean, Charlotte lawyer, may prevent early liquidation of the Independence Trust company and the consequent payment to about 20,000 depositors of the bank approximately $400,000 in cash dividends and an additional $225,000 in stock was expressed yesterday by sponsors of the plan to organize a liquidating corporation.

Miss McLean is the only person opposing the completion of the plan, it was brought out. She recently appealed from the ruling of Judge W. F. Harding giving the receiver of the Independence Trust company, W. B. Tyer, permission to borrow $400,000 from the Reconstruction Finance corporation with which the full amount of deposits would be paid off. The order would permit the sale of the bank's assets to the Independence corporation, which would assume the bank's debts with the RFC and would proceed in a leisurely and orderly liquidation of the bank's affairs.

Mr. Tyer pointed out yesterday that the RFC's offer to lend the $400,000 will be good only until July 9. He doubted whether the Supreme Court could hear the appeal before that date and if it does not, he was afraid the action of Miss McLean in blocking the carrying out of the plan, which has been approved by the RFC, the state banking commission and all depositors and stockholders of the Independence Trust company with the exception of Miss McLean, would prevent the carrying out of the plan and thereby keep the 20,000 depositors from receiving the remaining 50 per cent dividends on their deposits.

SHARE-THE-WEALTH FIRM IS ORGANIZED IN N. J.

JERSEY CITY, N. J., June 10—(UP)—The first corporation in New Jersey based on Senator Huey Long's "share-the-wealth" plan, filed papers with the county clerk of Hudson county today.

Gustav Bach, county clerk, said the name of the corporation was "Share our Wealth Society of New Jersey." Its aims were "to promote the doctrine of the share our wealth society of America."

Otto Hundertmark, Jersey City, organizer, said a mass meeting would be held "soon." He said Senator Long might speak.