Citizens Savings Bank (Mount Clemens, MI)

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CITIZENS SAVINGS BANK OF MT. CLEMENS CLOSED

MT. CLEMENS, Mich., Nov. 25(A. The Citizens Savings Bank failed to open for business today A notice posted on the door stated: "This bank closed by order of the board of directors, pending efforts at reorganization.' The bank, which was merger of the old Ullrich Savings Bank and the old Citizens Savings Bank, was capitalized at $500,000 and listed surplus of $250,000. In its last statement it listed footings, liabilities and assets, at $4,847,189. statement at the State banking department at Lansing said the bank was closed preserve the assets of the bank for the benefit of depositors. The bank was founded Feb. 6, 1900. Its total resources of last October totaled in excess of $4,500,000.

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CANNOT IGNORE REQUESTS torney general has ruled that the courts cannot ignore the recommendation of the state bank commissioner in appointment of bank receivers. The opinion ruled that courts exceeded their authority in recent appointment of receivers at Detroit, for the Clare State bank and for the Citizens Savings bank at Mt. Clemens. Rudoph E. Reichert, state commissioner. declared that his recommendations for pointments had been ignored by the courts. An act by the first special session of last year provided that the commissioner make the

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BANK RECEIVER CHARGES FRAUD

Mt. Clemens Man Says Stock Ownership Concealed.

Mt. Clemens, Mich., March Detroit bank officials, four banks and two holding companies were charged with "farud, deceit, and trickery" today an alleged conceal their ownership stock the funct Citizens Savings bank here. President Macy E. Watkins of the Macomb County Bankers association made charge sworn statement filed before Judge Neil E. Reed circuit court. Watkins receiver the which closed its doors four months ago. He asked the court for authority levy 100 per cent assessment on all The bank's assets have depreciated $1,537,000 he said. The three Detroit bank officials named the statement are: Fred H. Talbot, executive vice president the Commonwealth Commercial State Harry Covington. former executive vice president of the Guardian National Bank Commerce. and R B. Locke, for vice president of the First National bank. Watkins also named the Detroit Bankers company, the Guardian the First National Bank. the Com-

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SEES EVASION OF LIABILITY

Mt. Clemens Bank Receiver Accuses Detroit Banks

Mt. March statement before Circuit Judge Reid Macy E. Watkins. for Citizens bank of Mt. Clemand president of the Macomb charged group of Detroit banks and officials deceit trickery' alleged their ownership of the bank, four ago. the court authority per cent sessment on all he the of bank have $1,537,000

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RECEIVER MAY BE NAMED FOR DETROIT BANKERS

(Concluded from page 1) Citizens Savings bank of Mt. Clemens and president of the Macomb County Bankers association, charged a group of Detroit banks and bank officials with "fraud, deceit and trickery" in an alleged attempt to conceal their ownership of a majority of stock in the bank, which closed four months ago.

Watkins petitioned the court for authority to levy 100 percent assess ment on all stockholders, because, he said, the assets of the bank have depreciated $1,537,000. "The Detroit banking interests." he said in his petition, 'wanted control of the bank and at the same time attempted to avoid personal liability The bankers named in the petition were Fred H. Talbot, executive vice president of the State bank, Detroit: Harry S. Covington, former executive vice president of the Guardian National Bank of Commerce, Detroit: R. B. Locke, former vice president of the First National Bank-De-

Banks Listed The banks named were the Detroit Bankers company, holding company for the First National Detroit, the Guardian Detroit Union Group, Inc., holding company for the Guardian National Bank of Commerce; the First National Bank Detroit: the Guardian National Bank of Commerce, Detroit: the Commonwe State bank. Detroit, and the Detroit Savings The petition charged that the group of banks and bankers mentioned were not listed in the Citizens Savings bank's stock record book as stockhold. ers when the institution suspended business and placed itself under the control of the state banking department in November. 1932. Nevertheless, the petition charged, they were "in truth and fact the actual owners of some of the shares of capital stock of the bank.' The receiver asked for authority from the court to "enforce and collect from the principals named, if the stock levy is granted, and to bring suit against the conservators of the First National Bank Detroit and the Guardian National Bank of Commerce,

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MICHIGAN NEWS

HIGHWAY FUNDS ARE UNGUARDED

Jury Investigation Of Mt. Clemens Bank Appears Likely.

Mt. Clemens. April Investigation the defunct Citizens Savings bank here revealed today that the state highway department had deposit, unprotected security bonding. when the bank suspended busi-

Assistant Receiver B KalaON FLINT RIVER BANKS the information report Leo Moriarty and Frank Watson. assistant attorFlint. April 4.-City employes neys-general, here investigating paraded banks the Flint the bank. river Monday and kept special That the state funds un- guard on the city dams as Flint contrary Kala- prepared for possible har said. banking Weather officials in Lansing warnpractice for state funds that the river would bonded for the bank put least six and the security. Records show, tent snow and hall that the practice was not followed during the day indicated more instance.' extreme rise. Sections Flint in the lowlands The assistant attorneys-general were under water as the drainage have indicated they will file facilities the river over. quest one-man grand jury taxed. some parts Flint. porinvestigation, when they complete tions the roads were under their own inquiry

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DEPOSITS HELD

Mt. Clemens, April (By UP) Investigation of the Cit. izens Savings bank revealed today that the department deposit, unprotected by bonding when the bank suspended busiAssistant Receiver B. Kalahar, information Moriarty and report Frank assistant here investigating the "That the state funds were unprotected contrary to Kalahar said. usual banking practice for state funds bonded or for bank put security. Records show, the practice not followed in this instance." assistant have indicated they file request grand when complete their own

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DEPOSITS HELD UNPROTECTED

Mt. Clemens, April Investigation of the defunct izens Savings bank here revealed today that state highway partment deposit by security the bank suspended Assistant Receiver B. Kala. har, the Moriarty and Frank assistant torneys here investigating the "That the state funds were protected contrary said. usual practice funds bonded or the bank put Records that practice was not followed in this The assistant have indicated they request for grand they complete their inquiry. inspection tax of 25 cents barrel provided for and retailers violating the act would subject fine og and two years and $5,000 years. The carries the follow beer wine shall be served to any person for consumption the said person seated at table.' "No regulation shall be made quiring food with the purchase of beer "Beer wine sold by vendors for on the premises

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STATE FUNDS IN BANK FOUND UNPROTECTED

MT. CLEMENS. April 4 (UP)-Investigation the defunct Citizens Savings bank here revealed Tuesday that the state highway department had $97,000 on deposit. unprotected by security bonding, when the bank suspended business. Assistant receiver B. A. Kalahar disclosed the information in report to Leo F. Moriarty and Frank H. Watson. assistant attorneys-general, here investigating the bank. The assistant attorneys -general have indicated they will file a request for one-man grand jury investigation. when they complete their own inquiry.

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Bank Closin Laid to Slu

Officials Are Cle in Mt. Clemen

MT. CLEMENS May Grand Jury tion of the affairs zens Savings Bank which suspended in wound up Thursday will of Circuit Judge Glenn Paw that cruninal against any Judge Warner who the one-man jury investigat the bank's held that ties of the bank were most adverse economic human control No returned by the judge His findings, however. that are some which the termined the civi] mentioned the use of saving ment securities to secure the commercial department for stock assessments, The investigation was April by Judge Neil the Macomb County covered the bank's back September, 1929 merged with the Ultrich Bank under the Robert M. Allan, former of the American ings Bank Detroit. The bank suspended Nov. and Macy president the Macomb Bankers Association. receiver. He later group Detroit banks officials had their ownership bank, and the Grand Jury tion

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Bank Receiver to Ask a Loan

Will Seek $1,100,000 from the

MT Aug. tion from the Corp. be the Citizens Bank, the application out sought still due to provide 'substantial dividend" to positors. Receiver Watkins made this Circuit Judge Reid that he would approve filing application. receiver State Banking already had given mean the assets closed bank would and that the would have the entire liquidation of the

Lieut. Roger M. former the 17th Squadron, has Pursuit Squadron is beorganized Selfridge.

The question of forcing immediate settlement with the County by provision space offices the County Build$35,000 which claims due because of its relinquishment space been brought the attention Commission. City Attorthe ney Nunneley has structed an immediate settlement.

In accordance Board Supervisors, the from Finance meetCounty Monday, take up the ing next proposal of Toledo large block Strevel buy Drain discount of per cent. Some of the bonds default. resolution proposed by SuperFrank the visor County authorize acceptance other County bonds drain and face value for taxes, which would taxpayers to permit bonds discount and get taxes, has been referred to the permanent injunction restrainState from sellMurray gasoline station building ing Gratiot and Telegraph Road, five north issued Judge Neil Reid Circuit Kindra's suit against the highway Kindra claimed that he himself the The Court gave him 60 days in which to remove

Funeral services for James Wallace, son Mr. Mrs. James Wallace, Van shot Monpetting party, held here Thursday afternoon. Arne Mack, old. also of years Dyke, Wallace stage the holdup and were still being held in the County Jail.

So large an attendance of wheat has been that place for Friday night's meeting organize produccontrol Macomb County, under plan, changed Thursday. County Agent William Murphy nounced, be held the Haven High School instead of the New Elevator.

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he differed from the given When Mills finished Couzens took say that no does not condemn the comptroller the in the years 1932 and The bank president rehis tee that institution solvent holiday Couzens asked the ness knew money" being withdrawn from the bank December 31, and crash and dropping off of be. Mills stoutly none this represented money. David Saperstein, associate of Ferdinand Pecora, today Pecora the stock bill. then letter had sent to Mills on March 1933, following the by Luther Thomas warned their friends of the bank's condition. was president of Fidelity Trust company The letter attention the large board and said that some ings and that rumors immediately

How "Tips" Were Given.

"You know that some directors their friends, check your books to he out the letter the banker adding that he did check made found no such He to he made difficulty keeping of bank's affairs within Previously during Mills' questhat Citizens bank Mount Clemens, was closed until after 1932 the of banking his and the attorney agreed in the deproduced letter dated Locke, the First National Bank of Detroit Donald Merrill of Mt. Clemens, the chairman the in sing the letter ed.

'Merrill stated that the closing of have disastrous effect the of the The called and stated that although hour stay in immediately with Commissioner the bank was not closed was Senaasked.

Anent Loans to Officers.

November Brucker did not carry Macomb Saperstein to show that 1933. the last day operation there total of outstanding in loans officers, emand tors of the Detroit Bankers holding company and Mills said don't Mills insisted the figures includappeared Mills permission to his tions for improving banking legisOutstanding requirement the tivities receivers not "shrouded porations prohibited from are federal members banks should instruct periodito liquidate their loans.