9571f5787d868e74Capital injected, Full suspension, Books examined
Click image to open full size in new tab
National in Closes Doors LOS ANGELES, branch United States National closed doors shortly after it opened posted at the front of the closed order its board directors. The notice signed Foster Ramm, national Officials the bank said forstatement the situation would be given shortly after The bank has eight branches in Los
Click image to open full size in new tab
LARGE LOS ANGELES BANK CLOSES DOORS LOS ANGELES. main branch of the United States National here closed its doors Tuesday. notice posted the front of the closed by order of the board of directors. The notice signed Foster Ramm, National examiner. The bank has eight branches here.
Click image to open full size in new tab
LOSSES IN BANK CLOSING SLIGHT LOS ANGELES Yesterday's closing of the United States Na. tional bank, a small independent institution, was regarded in financial circles today as having no special bearing on the general economic situation in southern California. Pointing out that the bank is be- lieved solvent, experts also explained that even should depositors lose a portion of their funds it will be attributable to peculiar rather than general conditions. Eventual settlement of depositors' claims, it was pointed out, depends upon what disposition is made in the courts of suits pending against the bank as receiver for realty investment trusts of the Harold Ferguson interests. No official of the bank would es. timate the cost of the bank and to depositors of an adverse ruling on the suits, but all agreed that depositors would not lose anything
Click image to open full size in new tab
LOS ANGELES BANK MOORE HIT FOR CLOSED BY BOARD SLAM AT YATES'S "SWEETIE" CLAIM National, With Eight Branches Shuts Doors. LOS ANGELES. United States National Bank eight branches in Los Angeles closed by its board directors today and placed charge of a national bank examiner. The bank, which has no connection with the Federal Government other than national bank. listed resources $13,121,229, capitalization of surplus of in statement as of June 30. last. Perry W. Weidner, president, sued saying the directors believed the bank solvent, and closed in order that liquidation might proceed before such Impairment its assets might cause serious loss depositors. "The board that cash on and through bonds and to meet all deposit liabilities, the said. reason for closing the bank be stated "Recently certain of number certificate holders under two trusts heretofore accepted the bank have threatened suit suits for large sums based allegations trust These charges claims the board based and not supdue has that sensitive the filing be to produce most destructive effect. Toledo Situation Better Toledo confidence in their depositors yesterday opening early promising open the last who might want withdraw his money. Backed up by in currensent Federal Reserve Bank Cleveland and millions available, the as an and half before their time this The patrols fell off as banks failed open their doors for and the belief the clear soon they have their money if they wanted One suburban bank, however, closed its officers yesterday This the State Savings deposits of June and total at with capital Ruhlmann Thomas Kilduff Recall Democratic "Padding." Former Gov. Harry Moore's denunciation of the listing of Miss Ruth on the state Roy shot the apartment New York, last Friday provoked vig orous replies today State Civil Service Ruh!mann. At the same time former Hudson County Boxing Inspector Thomas Kilduff Hoboken scored Moore for criticism the Yates meeting Baird Republican headquarters in Commissioner nis counterattack on Moore said "Realizing that two wrongs do not right, amazed feigned anger exhibitby in nis of the placing the pay roll of the Senator that unfortunate affair. The position temporary the compensation relatively small. Matters of this kind, small, are against interest the by Mr. Moore of those the that County, where the things the exception. Moore himself part this system. This isolated great anguish, County there are hundreds of cases of vorites payroll who do solutely nothing their Governor Moore himself immune from the charge of placing favorites positions. friend and Col. Hugh The Kelly Case "While Governor Chairman of the State House ernor Moore placed young Kelly practically unknown in profesin the position architect on the State House annex date $160,000. was one the dals the Abel Committee the construction that building, quite over few hundred dollars the state's monies improperly 'During the successive terms Democratic Governors, the whom was Mr. Moore, many grew up the state government. Many nounced during Mr. Moore's term. appointed by the State that about to these and Mr. Moore forgotten the scandals the and bank during his his memory short that he has forgotten happened his Civil Service the scandalous manner in which the Civil Serthe administered that Does he member the of Elmer Parsells, the Labor Hudson on the payroll in City ditional per for which he performed service? Governor Moore forgotten that few months the Serforced hold the number employes Hudson County who devoting their time, for which they being paid by the taxpayers, work upon private estate Hague's lieutenants? Is the that the Jersey City on 31 had 700 patients, has recall that year ago, dethe cost that the Hague had to the extent that would taken of Jersey over Winter? Doesn't he that the policy the admits he and parcare its favorites payroll, regardless of the public build its political machine? Doesn't that policy has put the munity of causing to move out and the 'What has Mr. Moore offered to City, Hudson County or
Click image to open full size in new tab
Bank's Closing Little Affects Economic Set-Up LOS Aug -Yesterdav's closing of the United States National bank, small independent was regarded in financial circles todav as having no special bearing on the general economic situation in Southern California. Pointing out that the bank believed solvent. experts also plained that should depositors lose portion of their funds will attributable to peculiar rather than general conditions Eventual settlement depositors' claims, was pointed depends upon what disposition made in courts of suits pending against the bank receiver for realty investment trusts of the Harold Ferguson interests. No official of the bank would estimate the cost to the bank and to depositors of an adverse ruling on the suits. but all agreed that would lose anything the suits were settled favorably.
Click image to open full size in new tab
NATIONAL IS IS REPORT TODAY LOS Aug closing the United States National Bank, small independent regarded in financircles today as having no special bearing nomic situation in Southern Callfornia. Pointing out that the bank bealso explainthat even should lose portion their funds be than general Eventual settlement depositors' claims, pointed depends upon what disposition made in the courts suits the bank as realty trusts of the Harold Ferguson interests. No official of the bank would estimate the to the bank an adverse ruling on the suits, but all agreed that would not the suits were settled favorably.
Click image to open full size in new tab
LATEST NEWS THE OF BUSINESS AND FINANCE WORLD Many Offers of Relief Made in Cotton Dilemma TODAY'S COMPLETE NEW YORK BONDS, HIGH, LOW, CLOSE Truck and Ship Threat Against Rail Rate Ris The South looked to several sources today, hoping that from one of them might be developed a way out Chief interest centered about the possibilities of the meeting called for Friday at New Orleans by Gov. ernor Huev P. Long of Louisiana, who is seeking to bring about holiday in 1932 Last night Governor Long nounced that should the South Dept his plan, he would ask the Federal Government to enlist the Interest of foreign Countries in an acreage regulation plan for world stabilization of price similar to the Chadbourne sugar plan. George has Issued a suggestion that . 6 cents per pound payment for be made at once by the gral Farm with an additional cents next year If farmers agree not to plant cotton in 1932. He urged a special session of Congress unless the Farm Board acts The Farm Board has made the suggestion that Southern farmers plow under every third row of cotton to cut this year's predicted crop of 15,000,000 bales But neither this suggestion nor that of Governor Bilbo of Mississippi to leave & third of the cotton unpicked has attract. any cread support Governor Murray of Oklahoma has suggested as solution that only the best bolls be picked and ginned One other suggestion has been that the States take over the 1931 grop at fixed price. Congressman Charles R Crisp of ment in which he said he was considering introduction of bill this Fall to abolish the Farm Board and provide that cotton and what It now has on hand be held until the price of cotton goes to 12 cents pound and that of wheat to 80 cents bushel Deposits in Failed Los Angeles Bank Are Believed Safe Yesterday's closing of the United States National Bank regarded in financial circles today as having no special bearing on the general economic situation in Southern California Pointing out that the bank is beplained that even should depositors lose a portion of their funds it be attributable to peculiar rather than general conditions. Eventual It was pointed out, depends upon what disposition is made courts of suits pending against the bank as receiver for realty investment trusts of the Harold Ferguson No official of the bank would estimate the cost to theybank and to depositors of an adverse ruling on the suits, but all agreed that depositors would not lose anything If the suits were settled favorably firm YORK and Adams INVESTMENT TRUSTS By Associated NEW Butter, Eggs and Poultry Invest LOS Butter and first LARGE EGGS. Candled clean fresh dirty extras dirty EGGS. Candled Equities Candled smalls under rabbits Equity rabbits Chie Equit
Click image to open full size in new tab
BELIEVE A. BANK LOS ANGELES, Aug. closing of the United States National bank, small independent institution, was regarded in financial circles today as having no special bearing on the general economic situation in Southern Pointing out that the bank believed solvent, experts also explained that even should depositors lose portion of their funds it will be attributable to peculiar rather than general Eventual settlement of depositors' claims. it pointed out, depends upon what disposition is made in the courts of suits pending against the bank as receiver for realty investment trusts of the Harold Ferguinterests.
Click image to open full size in new tab
Name Receiver For Closed Bank LOS ANGELES, Aug. 20. (U.P.)H. F. Schilling, representative of the comptroller of the currency, has been appointed receiver for the United States National Bank, which closed its doors Tuesday. The bank, which has deposits of $6,400,000, was said to have got into difficulties through recent failures of the Harold G. Ferguson corporation. Schilling said no formal statement would be issued until a complete examination of the bank's books had been made. He recently liquidated the First National Bank of Fresno.
Click image to open full size in new tab
LOS ANGELES, Cal., Aug. 19. The United States National Bank and its eight branches crashed today, cheating the small depositors of their funds. Over $13,000,000 is involved. Three open air meetings in front of the banks were held and five thousand leaflets were distributed. The Provincial Committee of workers and small depositors is calling an indoor meeting tomorrow night of all small depositors to further consider ways and means of carrying on the fight and force the bankers and city authorities to return the life savings of the small depositors. Hundreds of workers attended the open air meetings in spite of the police and red squad attacks. Two workers were arrested and held for criminal syndicalism suspicion. NEW YORK. -Bank crashes in Toledo, Ohio, involving over $100,000,000, tying up nearly the entire business life of the city, throwing new hundreds onto the streets without work, threatening thousands of unemployed with immediate starvation, has spread to the entire Northwestern section of Ohio. On Tuesday two more banks crashed in Ohio, with over half a million dollars in deposits involved. Runs started in other banks, and the capitalists tried to do everything possible-lying with their usual vigor-to keep down the bank runs. From investigation made in the recent Chicago bank crashes it is
Click image to open full size in new tab
# $13,000,000 Los Angeles Bank Shut; Chi. Bank Head Is Thief LOS ANGELES, Cal., Aug. 19. -The United States National Bank and its eight branches crashed today, cheating the small depositors of their funds. Over $13,000,000 is involved. Three open air meetings in front of the banks were held and five thousand leaflets were distributed. The Provincial Committee of workers and small depositors is calling an indoor meeting tomorrow night of all small depositors to further consider ways and means of carrying on the fight and force the bankers and city authorities to return the life savings of the small depositors. Hundreds of workers attended the open air meetings in spite of the police and red squad attacks. Two workers were arrested and held for criminal syndicalism suspicion. NEW YORK. -Bank crashes in Toledo, Ohio, involving over $100,000,000, tying up nearly the entire business life of the city, throwing new hundreds onto the streets without work, threatening thousands of unemployed with immediate starvation, has spread to the entire Northwestern section of Ohio. On Tuesday two more banks crashed in Ohio, with over half a million dollars in deposits involved. Runs started in other banks, and the capitalists tried to do everything possible-lying with their usual vigor -to keep down the bank runs. From investigation made in the recent Chicago bank crashes it is revealed that the bank heads robbed the banks from the inside. John Bains, leading Chicago citizen, head of 12 banks closed in June, "borrowed" $2,000,000 from his banks. Half a million of it was borrowed within 60 days and $90,000 within 8 days before the banks were closed. Even the capitalist class is forced to give front page publicity to this open robbery by a leading Chicago citizen, 100 per cent patriot, sworn enemy of the reds, whose 12 banks, all in the working class sections, robbed about 120,000 depositors of their savings to the amount of nearly $15,000,000. In order to quiet down the cheated depositors and the public in general, another big crook, former U. S. Senator Deneen, personal attorney to Bain, came out with the endorsement of Mr. Bain's character and with his doubts whether the report of the receiver is a correct one. According to Mr. Gelruff, the receiver, not a cent of the $2,06,356.70 borrowed by Bain without any security is collectable. In order to save their face, the Bank Bureau will probably submit the Bain bank management to grand jury investigation. The depositors may well know what this investigation means to them. The only way to fight for the return of the stolen money is by the organization of a Workers Depositors Committee, which will force Mr. Oscar Nelson and the other grafters in charge of the banks to refund the lost money of worker depositors.
Click image to open full size in new tab
S.TOPICK BANK RECEIVER'S AID Renewal of Deal on Threatened Suits Delayed Federal appointment of attorneys for the receiver of the United States National Bank, at Eighth and Spring streets, was awaited today as a necessary step preliminary to renewal of negotiations for settlement of suits threatened against the bank. Federal Receiver H. F. Schilling, who took charge of the bank yesterday. put under way thorough investigation of the banks condition. The threatened suits, which the bank directors blamed for the closing, followed the failure of the Harold G. Ferguson Corporation. Receivers for the latter concern advanced claim of $2,500,000 against the bank as the result of its management of two Ferguson trusts, Nos. 33 and 999. It was understood settlement of the claims was pending when the bank's directors surrendered the institution to a Federal bank examiner. Receiver Schilling announced to depositors that "the contents of safety deposit boxes will be delivered in due time, and will be held no longer than is' absolutey necessary. But first it is imperative that we complete the records in order to learn who owes us and whom the bank owes. In cases of extreme emergency,' he concluded, "we may make some exceptions to this rule."
Click image to open full size in new tab
Bank Receiver Appointed Today LOS ANGELES, Aug. Schilling, representative the comptroller the has been appointed receiver United States National Bank, which closed its doors Tuesday The which has deposits of said to have difficulties through recent failure the Harold Ferguson Corporation. Schilling said formal statement would issued until complete examination the bank's books made. He liquidated the First National Bank Fresno.
Click image to open full size in new tab
OTHER BANKS OFFER AID TO NATIONAL Clearing House Association Sends Offer to Bank Receiver Early relief for distressed depositors in the closed United States National bank is offered by the Los Angeles Clearing House association in leter on file today with the recelver, B. F. Schilling. A. M. Chaffey, chairman of the board of directors of the California bank and president of the clearing house association, wrote the offer of aid. Schilling was informed that when the assets and liabilities of the failed institution have been fully determined the clearing house committee "will be pleased to have you communicate to It any suggestions you may have in regard to steps which may be feasible for the clearing house banks to take to expedite the early payment of depositors of at least portion of their claims." Notices recently posted on the closed doors of the bank announce that after the assets, and records have been completely audited "notices will be published directing depositors and other creditors to prove their claims. "Claims will not be accepted prior to publication of the notice." Safety deposit vaults at the head office branches ale now open and applications for entrance to the boxes may be filed with. the clerks in charge. Several depositors' committees have been formed in neighborhoods served by the bank's branches in an effort to obtain all information possible and to secure legal advice for those involved.
Click image to open full size in new tab
Witness in Clark Slaying Leaves State Jurisdiction Lucille Fisher, Who Heard Shots Which Killed Spencer, Crawford, Goes East Beautiful Lucille Fisher, state witness in the sensational David H. Clark case, has vanished and the district attorney's office made no effort to keep her here for the new trial starting next Monday, it was revealed today. The pretty young stenographer for the slain Charles H. Crawford, whose testimony was of vast importance to SUITS PLANNED the case, left Los Angeles a week ago for the East. She now out of the jurisdiction of California and cannot IN BANK CLOSING be forced to return. The discovery was made during an attempt to interview Miss Fisher at her apartment, 654 South Detroit street. Residents there said she Recovery of Millions "went East to stay with her parents.' The district attorney's office did Withdrawn Before not subpena any witnesses for the coming case until last Monday night, Crash Sought just week before the case comes up in court. 'Why, I never knew she was gone,' Between three and four hundred District Attorney Buron Fitts said former depositors of the United excitedly. "I'll have to make a check States National Bank, believed to right away. don't know when she was subpenaed. Joe Ford didn't tell have been advised to withdraw their me she was gone." funds from the bank shortly before it Special Prosecutor W. Joseph Ford closed its doors on August 18. soon said he "knew Miss Fisher was gone. will be named in court actions to The embarrasses the prosecution, as Mr. Ford is under- force them to return their withstood to have planned to ask the drawals. girl many questions regarding CrawThis was learned today from ford's affairs in an effort to find sources close Federal Bank Rethe motive for the double slaying. ceiver
Click image to open full size in new tab
SEEK ACTION IN CLOSING OF BANK Committee Chairman Says Fitts Will Be Petitioned District Attorney Buron Fitts will be asked today to bring charges in connection with the recent closing of the United States National Bank. This statement was made today by G. M. Grant, chairman of the depositors' committee. who says he represents depositors with more than $1,000,000 in the bank at the time it closed. "The state law provides punishment of employes of banks who accept deposits when they know their bank is insolvent.' said Grant. "We will ask District Attorney Fitts to invoke this section of the penal code." Grant also announced that there will be a general meeting of depositors on September 24 in the assemhly-room of the Alexandria Hotel, Fifth and Spring streets. MEETING CALLED For the purpose of assisting in prosecution recovery suits against those depositors who withdrew funds just before the bank closed its doors, Mr. Grant also said he would place in the hands of Federal Bank Receiver H. S. Schilling all information in the hands of his committee. His committee will hold a special meeting this afternoon to authorize this and other steps he plans to take. "We already have considerable information which leads us to believe there was connivance within the bank by its officials and employes to enable certain large depositors to gain preference by advising withdrawal of their funds just before the bank closed,' said Mr. Grant. "I am going to advise our committee to turn all such information over to Mr. Schilling. I shall also ask the committee to authorize me to proceed with a further inquiry along these lines. I believe we can force thousands of dollars back into the bank's assets where it will benefit all of the depositors.
Click image to open full size in new tab
PATRONS LOSE FIGHT AGAINST BANK OFFICERS Tipoffs on losing Permitted Under Present Laws No protection is afforded to the rank and file depositors in national banks against bank officials and employes who tip off their friends in advance of failures, or who accept deposits from unsuspecti depositors while knowing that the bank is This was revealed today when G. M. Grant, chairman of depositors' committee of the United States National Bank, late yesterday attempted to launch criminal action against officials of the bank, which failed on August 18, after keeping its doors open but 20 minutes. Grant alleges that nearly $6,000,000 was withdrawn from the bank on the eve of its failure through advance information given favored depoitors. NO ACTION POSSIBLE Grant conferred late yesterday afternoon with Assistant District Attorney Robert P. Stewart with view to instituting criminal ction under California state law prohibiting the giving of advance information of a bank's closing to favored depositors Stewart advised Grant that no action could be brought inder this act against national bank fficials. Rollin McNitt. dean of the Southwest Law School, whose advice was sought as to civil action. ruled late yesterday that the depositors cannot even institute civil action of any kind against the United States National Bank officials for any of their acts. H. S. Schilling, Federal bank receiver in charge of the defunct bank, is reported to be preparing suits against depositors who withdrew their money. "It appears from all of the authorities that there is no action of any nature we can ring now," said Grant. The comptroller of the currency at Washington a ppears to be a czar under the Federa banking act so long as he is in charge of the bank. CHARGES HURLED "Until he releases the property no one else can anything about it. "I am advised that on the afternoon before the bank closed large number of city employes deposited their pay checks in the bank, including 14 members of the staff District Attorney Buron Fitts. The directors of the bank must have known when the bank was going to close the next morning, yet they let these and other depositors place their earnings in the bank-and bright and early the morning the bank closed had messenger at the treasurer's offices to collect the checks. This latter tion was less than an hour before the bank actually closed.
Click image to open full size in new tab
Police Hunting Mother Who Left Baby with Neighbors 'Just Few Minutes,' She Said Last Sunday, but She Still Is Gone "Bye, Baby Bunting, "Mamma's gone a-hunting"-to Tia Juana maybe! Anyway, little 2½-year-old Lawrence Renner played with other tots in Juvenile Hall today, while authorities sought the whereabouts of his mother, Mrs. Alice Renner, who lives somewhere BANK PAYMENTS in the 1200 block of East Fiftyninth street. Breathless, seemingly in a great hurry, Mrs. Renner dropped in on REPORTED NEAR neighbors, Mr. and Mrs. James Snow, 11201/2 East Fifty-ninth street. Sunday night, asking them to keep little Lawrence for "a few minutes." Stockholders of L. A. The minutes dragged into hours without the return of the mother, Institution Are and when hours became days the Snows turned the little fellow over Assessed to the sheriff, who placed him in Juvenile Hall. On investigation the Snows deSecrecy is being maintained by clared they discovered it was the Federal banking authorities to prohabit of the mother to leave her tect stockholders of the defunct baby with neighbors for "just a few United States National Bank, who minutes" and to disappear for varyyesterday were assessed $1,000,000ing periods. an amount equal to the capital of
Click image to open full size in new tab
Clearing House Bank Arrangement Planned to Pay Depositors LOS ANGELES, Jan. Clearing house banks will be willto to depositors in the defunct United States National Bank per cent of approved certain agreements cently adopted proper authorities. clared an anonuncement issued today. affecting depositors in the from M. Chaffey. president the Los Angeles Clearing House AsMr. Chaffey explained that the its agreements worked included settlement of claims made against the bank by of two trusts Harold Ferguson Corwhich admittedly all influenced the bank's closing.
Click image to open full size in new tab
CLOSED BANK'S PATRONS AIDED Depositors May Be Given 40 Per Cent on Claims United States National Plan Must Be Approved Optimism High Returns May Be Much Greater considerably brighter New Year prospect for approximately 18,000 depositors in the defunct United States Bank yesterday Chaffey, president of the Los Anthat agreements worked out by the association are approved by the proper authorities clearinghouse banks will be willing to advance to depositors less than 40 per cent approved claims. the agreements worked out comprise basis for settlement claims made against the bank by receivers for two trusts the Harold Corporationclaims that are admitted to have forced closing of the bankoptimism was high yesterday that actual eventual returns to depositors will be much higher than cent, possibility of dolsettlement. CHAFFEY'S STATEMENT Mr. Chaffey's statement follows: unusual condition obtained connection with the closing the United States Bank, due claims arising from trusts placed with the bank by Harold Ferguson his The Los tion has been diligently work for months past and operating directly concerned in solving the difficulties and procuring of the claims that the receiver of the bank would know what its actual liabilities were. gives me great pleasure to announce that, subject the final approval of the Comptroller of the Currency the approval the courts, settlement has been rived between receiver for the United States National Bank and the receivers of the Ferguson trusts. The Los Angeles Clearinghouse Association has determined that soon the necessary provals have been member banks will advance to depositors of the United States National Bank not less than 40 per cent the dollar their approved claims, upon the security of an signment the claims, to be paid of the first disbursements made the receiver the United States National NO LOSS ABOVE 40 PER CENT was explained in connection with the plan that depositors accept per cent advance and assign their claims to certain bank will not lose above per cent that might eventualpaid the receiver of the United States National Bank. payment above per cent made, said, the bank holding the assigned claims will simply deduct the per cent and pay additional sum to the original holder. Schilling, receiver for the United States National Bank, yesterday admitted that he was cognizant the Clearinghouse Association's plans and that he will considand submit them to his department. appears acceptable to approved the Comptroller the Currency, petition the Federal court hold hearing the he said. is the custhe court then to hold an open hearing making receivers both companies well as the parties to the action. the plan then by the court can carried out.' TWO MONTHS NEEDED Schilling estimated that least two months must elapse before the can be put in action. refused to comment the possibility of considerably larger dividend than cent being paid eventually. He estimatdepositors' claims against the United States National Bank approximate which will place the cent the bank Fergureal mately bankrupt the the bank had These (Continued Column
Click image to open full size in new tab
DEFUNCT BANK PAYMENT SEEN Announcement that if certain agreements recently worked out are adopted by the proper authorities, clearing house banks will be willing to advance to depositors in tns defunct United States National Bank 40 per cent of their approved claims, was made today. The cheering affecting 18,000 depositors in the institution which crashed, came from A. M. Chaffey, president of the Los Angeles Clearinghouse Association Mr. Chaffey explained that the agreements worked out included settlement of claims made against the bank by receivers of two trusts of the Harold G. Ferguson corporation claims which admittedly influenced the bank's closing
Click image to open full size in new tab
TRIAL BEGUN COUNTY RELIEF FOR RETURN FUND ALLOTTED FOUND OF DEPOSIT (Continued from First Page) United States National Bank Receiver Asks Sum Withdrawn by First of series of suits filed by H. Schilling, appointed by the Comptroller of the Currency to be the receiver for the United States National Bank of Los Angeles, to require depositors to return to the bank's estate money they withdrew shortly before the bank became insolvent, was placed on trial yesterday before United States District Judge James, who hearing the testimony in the absence of jury. The suit concerns the withdrawal of deposit Mrs. Bertha Sieroty. The amount involved is $5902. It was withdrawn August 1931, eight days before the board of directors the bank adopted directing the suspension of the bank's business. While the nine suits are similar in the evidence in each said to be different In the bill of complaint Receiver Schilling charges that the cials, knowing their bank be insolvent, permitted these als to be made, and that the fendant have ignored his demands that they restore the withdrawn deposits for the benefit of all creditors. Judge James said the cases will taken under advisement. by the purchase of bonds issued for financing such projects." As an example of projects to which the Stabilization Bureau may supply workmen, Shaw cited the San Gabriel dams, the Metropolitan Water District aqueduct and the transmission line to Hoover Dam. "In all such projects the Stabilization Bureau stands ready to supply immediately upon notice any type of workman artisan required and in any number specified by the contractors, whether not the project being constructed with funds," Shaw declared. "In addition, the Stabilization reau will maintain its policy of contacting and enterprises with view to unemployed workers throughout the county. Missing Woman's Body Discovered Under Floor of Inglewood Hospital The emaciated body of Mrs. Martha Whitcost, patient Retiro Sanatorium, Inglewood, was found yesterday by an employee of the sanatorium in an aperture underneath the building's flooring, where had lain, according to police, since March 27, when she disappeared from the instituMrs. Whitcost, patient in the sanatorium six months, had suffered nervous breakdown, according to relatives, the breakdown necessitating her removal to the sanatorium. The body was found in tight space, into which the woman had crawled, replacing section of iron grating in the opening of the aperture through which she had crawled, investigators said. Mrs. Murphy of Ontario, sisof the dead woman, said Mrs. Whitcost had come to Los Angeles her health, leaving her husband in Detroit. The body was taken to the Hardin mortuary in Inglewood and an autopsy was ordered.
Click image to open full size in new tab
TAKING CASH OUT OF BANK EXPLAINED Mrs. Sieroty Testifies Personal Reasons Cause of Vithdrawing $5902 It was for personal reasons and not that she feared she might lose her deposit that caused Mrs. Bertha Sieroty, daughter-in-law of a director in the bank, to withdraw her account, $5902, from the United States National Bank of Los Angeles, eight days before the directors voted to suspend the bank's business, according to her testimony yesterday before United States District Judge James. This was corroborated by her husband and her father-in-law. Mrs. Sieroty who is active in relief, charity and club work, had asked one of the high officials of the bank for a donation for relief work, and when it was not made she determined to withdraw her account and place it in a different bank, she said. SERIES OF SUITS Mrs. Sieroty and her husband are defendants in the first of a series of nine suits filed by Receiver H. F. Schilling in an effort to restore to the insolvent bank's estate money withdrawn just before the bank closed its doors. Testimony in this suit was concluded yesterday by Attorney Leonard B. Slosson, representing the receiver, and Guy Knupp of the law firm of Mitchell. Silberberg & Knupp. and Attorneys I. B. Benjamin and Jacob Samuels, appearing for the Sierotys Judge James took the case under advisement following brief oral arguments. RUN ON BANK In yesterday's testimony it was brought out that there had been A quiet run on the bank for several weeks prior to its closing, due to reports that the court appointed receivers for the Harold G. Ferguson trusts, were threatening to sue the bank to recover $3,500,000. The bank officials, learning of these reports through counsel for the trust receivers, retained Attorney C. C. Montgomery, who, after an examination of the records, as he testified yesterday, informed the bank officers that there was no liability against the bank, in his opinion. Later the law firm of O'Melveny, Tuller & Myers was employed, and Myers was said to have estimated there was possible liability of $700,000. To meet this threatened claim the bank officials first planned an issuance of additional stock, and discussed the plan of seeking financial aid from the Los Angeles Clearinghouse Association, but wound up the problem by voting al resolution to suspend business. The resolution was adopted August 18, 1931. Emanuel Cohem who retired as executive vice-president of the bank in June, 1931, and who was, he testified, the largest stockholder in the institution. admitted that the criticism of the Comptroller of the Currency as to certain loans and bank paper "might have had something to do with my resignation."
Click image to open full size in new tab
LOS June Payment of an additional 25 depositors the defunct United States National Bank today awaited only the final action the federal court on the receivers for the Harold Ferguson corporation. settlement between Receiver Schilling the bank, and receivers for the defunct totaling announced late yesterday through the bank's receiver The agreement already has been authorized by the court behalf the bank's receiver. The settlement involved Ferguclaim which originally amountto more than when Mines and Allen receivers and trustees for the Ferguson Corporation. Mines and Allen have moved for authorization the compromise, was said.