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and his MARQU Marqua March 118 EAST FOURTH STREET DETROIT BANKS CLOSED March 13 suburban banks failed to for They are the Amer State Bank of Bank of Wyandotte Bank of the State Bank of The Peoples Wayne County that It The be all the and at the New York for be known as the Bank take the assets of the Bank Trust was to by Supreme Court The plan was by Joseph A. Brod. Banking plan Chelsea would be Broderick
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118 EAST FOURTH STREET DETROIT BANKS CLOSED. Detroit, March 13 (AP) suburban banks failed to open for business today. They are the American State Bank of Ferndale, the American State Bank of Wyandotte, the State Savings Bank of Melvindale and the State Savings Bank of Lincoln Park. The Peoples Wayne County Bank that it is taking over assets and assuming responsibility deposits in the American State Bank of Detroit. The announcement said that "busiwill be conducted as usual at all branches of the American State Bank and at the main office." Interment daughter Mathias Paul and Requiem Sacred Heart Church, McQueen Monday Carrie Wich12, 6912 the Whetsel ave., March New York, March plan for organization of a trust company be known as the Mercantile Bank & Trust Co., take over the of the Chelsea Bank & Trust Co., was approved today by Supreme Court. The plan was by Joseph A. Broderick, State Under the plan depositors would be paid in full, Broderick said. NORMAL CAPACITY REACHED Birmingham, Ala., March Ryding, President the Tennessee Coal, Iron Railroad Company, disclosed today that operations of his company have reached 70 per cent capacity, which considered normal even in times of widespread industrial activity.
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'REICHERT DEAL' O.K'D Continued from Page One banks were taken over by smaller State Bank. These consummated through the introduced Ford State Arthur defense counsel. replied that WilMr. president of the Nelson, had called him from Arbor Allan, that the that night Mr three Nelson drove in from Ann Arbor. Reichert immediately told us that he was much concerned about affairs the Ford State Bank, Wyandotte, runs commencing in banks that owned and controlled bankers were banks, and that in this instance stock was largely owned controlled by Louis Wojcik, known 'Wojcik's per cent banks, the said Feared Run Bank Mr. Fearnley said that Mr Reichert Allan that runs had been occurring on private banks. "Mr. Reichert realized that the bank, allowed along unthe management Wojcik, would run culties, and he asked immediately get in touch and could which us immediately the of Wojeik that institution, make such deal order that any contemplated run might be averted. The deal ultimately consummated and of and resigned the ber the bank when added. He started to explain that Wojcik also complebank building in Wyandotte, which was later taken over by the American State Bank, but this was stricken from record. Money Was Borrowed The money was borrowed from the American State Bank the wittestified, through the AmeriDetroit discussed similiar deals in regard Ulrich Savings it Bank the Citizens Savings Bank, Mt. and also the First National Bank East De troit. All these institutions under State Bank He said stock purchased the Grand Rapids Savings Bank, he was familiar with this connection with the acquisition of the Guaranty Bank Trust Judge Skillman the witness into the record the developments $175,000 funds of the American State Bank were used bolster up the stock of the bank. In the of the assets of the Co. in summer of 1930, the reserve contingency fund the American State Bank $1,170,000. Necessary to Invest Mr. Fearnley explained that necessary invest in the stocks of the American State to hold pending the deal whereby the Guaranty went out ing the He explained the jury that this deal involved the transfer stock, the holders securities the stock of the American State Bank "After the the American State Bank began to drop, the Guaranty selling Mr. Fearnley explained "When the stock bank begins to drop the public likely that all not well with the the danger of run becomes apparent. "Then you transferred from the State Bank funds the stock of that Judge Skillman Judge Enters Questioning "Yes, sir." the witness replied. "The money transferred to the Co. then started part stock that ket. later got the large former the Guaranty together, and made agree ment for to hold their stocks for months "And you disposing of this asked the judge. heavy depositors and personally sold some of this stock which had picked replied Mr. Fearnley believed sincerely this stock good investment Banks in Detroit had been merging heard words approval from rectors and our independent sincerely the stock the American was good "In what capacity were you advising depositors the State Bank invest the stock?' the judge my capacity as vice president of the Detroit Co,' the witness. "You that could not deal officer the bank, bank. That would be against the law, would not? Judge Skillman asked. The witness said it would Others Were Reluctant Mr. Fearnley testified that all which the participated were carried through either his own name, or in name Allan. Others reluctant to sume responsibility, he said, because the which banks that he and Mr. Allan busy the part 1929 their official tasks, that became necessary employ two sistants. only available. he William Nelson and Sherk, aminers for the Banking partment became president of the bank Sherk assistant vice president, Mr. Fearndefense read into the record resolution the board directors, which tribute paid the the bank year, for leadThis introduced by John Barlum and ported by Frank H. Dohany. unanimously adopted. Mr Fearnley positive his that all members board of directors familiar with the stocks other banks by the troit Co. This testimony given objection the when said that defense would prove
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CHAIRMAN TESTIFIES ON CRASH Declares End Came as Consequence of Publicity ADMITS LOANS AFTER WARNING (See Picture on Last Page) The American State Bank was declared solvent by State Banking Rudolph E. Reichert, March which time he recommended that dividend be declared. On March 11, hours before the bank closed its Reichert's deputy wrote the City Controller that the institution was solvent. The City Detroit was the largest depositor with the defunct bank. Barlum on Stand This was the testimony given Friday by John Barlum, chairof board of the closed trial Robert Allan. former president before Judge Recorder's McKay Skillman, Court. The of Mr. Barlum, relative the Banking played taking over the State Bank came the close day the witness stand. He insisted that and that the stories Mr. resigning with started the run which forced the bank close. The dividend was discussed with Reichert and approved Barlum testified notice that had been clared was sent to all but later the stock the bank was worthless, the stockholders facing an The defense had not finished the Mr. when court adjourned. He will take the stand at Saturday for further by Thomas Chawke, examination attorney the defendant The defense possession letter written Malcolm Taylor, deputy banking City Hall Roosevelt. March 11. Capital Wholly Intact' This letter reads, "Our examiners an examination this bank Jan. 1931, based upon their findings, beg advise that judgment, the entirely solvent with its capital wholly The Controller deposited $2,000,000 City funds the bank shortly before that date, Mr. Barlum testified. Mr Barlum went into the details about the over of the bank the Bank, March 12, this year first these held Feb. with Mr. Reichert The declaration of dividend proved, and voted the second meeting, March the witness testiMr. Allan signed and Mr. Reichert succeeded him. Withdrawals Were Heavy "Mr. Reichert had some personal and wanted clear that up before he took charge Mr. believe March Monday and wanted day things never functioned But on Page Column
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STATE RESTS CASE TRIAL OF ALLAN Banking Commissioner Reichert Occupies Stand for Brief Period Detroit, Dec. 11.-(P)-The state rested its case Thursday in the embezzlemen trial of Robert M. Allan, former president of the defunct American State bank, after the testimony of State Banking Commissioner Rudolph E. Reichert had proved unexpectedly brief. Reichert served as president of the bank from March 9 to March 12, when was taken over by Peoples Wayne County bank, but he said from the he 111 at his home in Ann Arbor two of those three days. He did not discuss the testimony of previous witnesses that announcement of his accession to the presidency had precipitated run which the bank could not weather. He participated, he said, in conference March 12, which ended with decision for absorption by Peoples Wayne County, all deposits guaranteed. Outside of those incidents, his testimony dealt largely with transactions by which the American State took over suburban banks, He denied he had advised Allan on those mergers. of jury and taking of state consumed nearly four The defense has not indicated the number of wit. nesses it will call. Allan is ac. cused of embezzling $106,565 of bank funds.
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STATE RESTS CASE OF DETROIT BANKER State Commissioner Takes Witness Stand for Short While Thursday HAS LASTED FOUR WEEKS Defense Has Not Indicated How Many Witnesses They Will Call DETROIT. Dec. 11 (A)-The state rested its case Thursday in the embezzlement trial of Robert M. Allan, former president of the defunct American State bank, after the testimony of State Banking Commissioner Rudelph E. Reichert had proved unexpectedly brief Reichert served as president of the bank from March 9 to March 12 last year. when was taken over by the Peoples' Wayne County bank, but he said from the stand he was ill at his home in Ann Arbor two of those three days. He did not discuss the testimony of previous witnesses that announcement of his accession to the presidency had precipitated a run which the not weather He participated. he said, in a conon March 12 which ended with decision for by the Peo. ples' Wayne County bank all deposits guaranteed. Outside of those incidents, his testimony dealt largely with by which the American State bank took over suburban banks He denied he had advised Allan on those merg- Selection of a jury and taking of state testimony have nearly four weeks. The defense has not indicated the number of witnesses it will Allan is accused of embezzling $106.565 of bank funds.
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STATE RESTS IN TRIAL OF BANK HEAD Proofs Against Robert M. Allan, Detroit, Are Concluded (By Associated Press) DETROIT. Dec. 11-The state rested its case yesterday in the embezzlement trial of Robert M. Allan, former president of the defunct American State bank, after the testimony of State Banking Commissioner Rudolph E. Reichert had proved unexpectedly brief. Reichert served as president of the bank from March 9 to March 12, when it was taken over by the Peoples Wayne County bank, but he said from the stand he was ill at his home in Ann Arbor two of those three days. He did not discuss the testimony of previous witnesses that announcement of his accession to the presidency had precipitated a run which the bank could not weather. He participated, he said, in conference on March 12 which ended late in the night with decision for absorption by the Peoples Wayne County bank, all deposits guaranteed. Outside of those incidents, his testimony dealt largely with various transactions by which the American State bank took over suburban banks. He denied he had advised Allan on those mergers. Selection of jury and taking of state testimony have consumed nearly four weeks. The defense has not indicated the number of witnesses it will call. Allan is accused of embezzling $106,565 of bank funds.
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EX-BANK HEAD FOUND GUILTY From Page One) mental in organizing the AmericanDetroit Co., an sub. sidiary of State bank as a dummy to cover stock speculations with funds Succeeded by Reichert The defense alleged embezzlement were in fact bursements to Allan for funds ad. vanced the subsidiary, but when the defense opened its case, the sustained state objections to evidence about personal transactions. Then the defense limited Its case to introduction of character Allan resigned as president of the March Two days later Rudolph E. Reichert, commissioner banking was dent. Several state witnesses testi. fied that the announcement pre. cipitated run which the bank could not and Peoples Wayne County bank took over institution March 12 the of deposits Two days later Gov. Wilber M. Brucker reappointed Reichert as banking Allan has with the bank 11 years when he presi dent. starting the legal depart ment He also was president of several suburban banks State to Investigate will participate in a thorough investigation of the affairs of the American State bank, of Detroit Gov. Wilber M. Brucker said today Judge W. McKay Skillman exmy own attitude when he says there should be thorough airing of the affairs of the American State bank. am sure the at. torney general and the bank ing feel same way about Skillman's statement by the take it, was prompted in the say we in thorough accord may on the proposition that every in. dication of irregularities should be investigate thoroughly and that if there has been of law, should taken The state's representa. tives are familiar with all aspects of the case and think the show ing to date is sufficient proof that they are using will use every means to promote the the governor "The of Robert M. Allen, was instituted the officers of the state and ayne county believed a crime had been "It source of satisfaction to that jury brought in verdict of guilty, not because of any interest Allan but because be Iteve the verdict will go far toward public confidence not only our banking Institutions but in courts of justice
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CONVICT YOUNG DETROIT BANK HEAD THURSDAY (Concluded from Page 1) verdict which, said, in accordevidence. He the jurors that investigation the should be that are volved the out in trial, then the officials should immediately bring these men trial regardless the may hold in the Jurors necesreach verdict and that the showed vote of nine to three for conviction. Allan's arrest May 20 was on warcharging That charge modto of and end of the November but of $52, 742 Had Dummy Concern Through the three weeks of state the show Allan had instrumental organizing the AmericanDetroit the State bank, dummy concern cover stock speculations with bank funds. The defense contended the alleged embezzlements were in fact ments to Allan for funds advanced the subsidiary, when defense opened court sustained evidence about personal Then defense limited its to introduccharacter Allan resigned as president of the bank March Two days later, Rudolph Reichert, sioner president. state that the precipitated run which the bank not withstand and the Peoples Wayne County bank took institution March 12, guaranteeing the $24,000,000 of deTwo days later Gov. Wilber M. Reichert as banking Allan had been with the bank for he was elected the legal department. was president of several suburban
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STATE WILL PROBE BANK Allan Convicted, Will Ask For New Trial (By The Associated Press) Lansing, Dec. 18-The will participate in thorough investigation of the of the American State of Detroit, Governor said today. "Judge W. McKay Skillman expresses my own attitude when he says there should be thorough airing of the affairs of the American State bank. am sure the attorney general and the banking commissioner the same about "Judge Skillman's statement take it. was prompted by the evidence in the may say that we are in accord on the proposition that indication of irregularities should be investigated thoroughly and that, if there has been violation of law, appropriate action be taken. prosecution of Robert M. Allan instituted the officers of the state and Wayne county believed crime had been committed. source of satisfaction to me that brought in verdict of guilty. not any Allan but believe verdict will toward public only in our banking institutions but in courts of justice. Convicted of Embezzlement Detroit, Dec. M. youngest bank president in when he became executive head of the American State bank two years ago, night from that defunct. recorder's court jury deliberated hours before finding the banker guilty on the only count asked to consider. The verdict carries maximum 20 years but defense attorneys said they begun to Allan will be sentenced Dec. 23. motion in arrest of judgment will be the first effort to Allan from Attorney Thomas Chawke said. That will be followed by motion for trial. Should that motion be new disallowed. he said. an appeal will be taken to the Michigan supreme court Allan flushed when the verdict announced, then regained his composure and smiled. Recorder's Judge W. McKay Skillman congratulated the jurors on their verdict which, he said, was in accordance with the eviHe told the jurors that Investigation the defunct bank's affairs should be continued and that others are involved in the transactions brought out in this trial. then the officials should these men trial regardless of the conditions. Jurors said three ballots were necessary to reach verdict and that the first showed vote of nine to three for conviction. Allan's arrest May 20 was on a warrant charging misappropriation of That charge later was modified embezzlement of $106,565 and near the end of the present trial. which opened Nov all but the count chargIng embezzlement of $52,742 were eliminated. Through the three weeks of state testimony, the prosecution sought to show that Allan had been instrumental in organizing the Americansubsidiary of the American State bank. dummy concern to cover stock speculations with bank funds. The defense the alleged embezzlen in fact reimbursements to for funds advanced the subsidiary, but when the defense opened its case, the court sustained state objections to evidence about Allan's personal Then the defense limited its case to introduction of character witnesses. Allan resigned as president of the bank March Two days later. Rudolph E. Reichert, state commissioner of banking. was named president. Several state witnesses testified that the announcement precipitated run which the could not withstand and the Peoples Wayne County bank took over the institution March guaranteeing the $24,000,000 of deposits. Two days later Gov. Wilber M. Brucker re-appointed Reichert as banking commissioner. Allan had been with the bank for when he elected president. starting with the legal department. also was president of several suburban banks.
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Allan Found Guilty on Jury's 3d Ballot Continued From Page One bezzlement from the bank under the embezzlement statutes. The case went jury on the basis of embezzlement under the State The heard before 13 case and draw deterjurors, mine which should be elimHerman Taggert's name selected. defense counsel throughout the trial figured that Taggart against their client, defense counsel, were and his elimination. Mr. jubilant Taggart lives at 14500 Madelleine Mr. O'Hara, in his final argument tribute to the jury, paid which took the the American State Bank, last trial of Mr. Allan followed investigation of several months, the of the State Banking Depart partment, the Attorney General's Department and Prosecuting Attorney's This investigation been completed and additional to sought, to made by Attorney Toy. Deposits Periled by Run The American State Bank closed doors last March 13, following run which had continuous several months, but which durthe days preceding seriously jeopardized deposits 100,000 persons. the Peoand the ples no money. started on the When run fears entertained $24,000,000 deposits would the but when the placed jeopardy, Peoples joined other members of the Detroit Clearing House the deposits, agreed to The failstrain State Bank greatest failure ever recorded Allan enjoyed romantic caMr. reer. He now 34 years old and positions he has ever held the only American State were Graduating from the UniBank. Michigan 1918, Mr. versity entered lan the Savings Bank, Fairview, which later the American State Bank, third ranking financial institution in Michigan. From an unimportant position small bills, Mr. Allan collector had phenominal rise to the post president, to which of direcelected by 1930. He was the tors January, the youngest bank in Michigan, presidency national publicity and result of his selection. Takes Part in Mergers Allan became powerful Mr. the financial world, and ure his name was linked most weekly with the merger of other banks in the vicinity Detroit. connected, either director active officer, banks Mt. Clemens, Lincoln Melvindale, Pontiac and East Detroit. Last May Mr. Allan was arrested two warrants, charging embezzlement, defalcation and misappropriation of $412,000 of the funds the American Detroit. He placed trial Nov. 17 on embezzling prosecution holding in reserve second charge of $306,000. This was held abeyance, the the which the verdict obtained. The trial of Mr. Allan became highly technical affair, heard fore composed of seven automobile factory three housewives, retired dentist former Taggert, elimiman nated the had been most attentive notes throughout trial. His eliminawas the occasion for jubiliation on the part of the defense counsel. Jury Charge Lasts Two Hours Due the highly technical of the Judge Skillman devote almost hours instruction to jury Defense counsel, Arthur Schueler and Thomas F. submitted written requests Court for questions. dealt with most of these requests in his The high point of the trial the testimony GorFearnley, formerly executive president the American State Bank, and described as the right hand man Mr. Allan. Mr. Fearnley called by the prosecution on witness stand five days. the argument to asailed Philip Robinson, assistant attorney general and Chester O'Hara, assistant prosecuting attorThe case depended largely upon the testimony Mr. Fearnley, and high tribute was paid to him the closing by attorneys for the defendant. The threat made by Mr. in his that other of the bank, including Mr. Fearnley, would be placed on trial at later date. Reichert's Acts Assalled Rudolph Reichert state banking commissioner, came much abuse at the hands of defense counsel, the claim being advanced that was responsible for bank having been taken over. when Mr. Reichert was placed upon the stand by the was subjected mild examination by the Further the American State Bank case await calling of the grand jury, which takes duties early the new year, according Prosecutor Toy.
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Wendel Heir? On Trial Robert M. Allan. young president of the def unct American State Bank of Detroit, is pictured during his trial on charges of embezzling $106,565 of the bank's funds, the report of which is believed to have started the run that closed the bank. Allan had risen from clerk to president in only 10 years. Russel J. Wendel, 61. who claims he is one heir to the enormous estate of the late Ella Wendel. wealthy recluse who died recently in New York, was arrested in Los Angeles charged with forging checks. Check writing paraphernalia and letter to a New York lawyer concerning the Wendel estate were found in his possession.
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On Trial Robert M. Allan, young president of the efunct American State Bank of Detroit, is pictured during his trial on charges of embezzling $106,565.of the bank's funds, the report of which is believed to have started the run that closed the bank. Allan had risen from clerk to president in only 10 years.
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One Being Sought, Another to Surrender Today in Bank Charges DETROIT. May 30 of idents five formerly prominent financiers charged Friday with abstraction misapplication of funds were under bond Saturday, one sought and another had agreed sands surrender during the day. Robert Allan, president the State bank, and Gordon Fearnley, former bond Friday after arraignment. Oscar Green, former president of bank, nished bond. Joel Stockard, he would former real sought. charges of the Wayne grand the affairs American State bank, closed. last
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to Depositors To Be Freed Within 10 Days, Possible Continued from Page One chasing which comes spring and Easter per will preEaster holiday and, chants expect, will give tremenimpetus retail trade. This situation the basis Board tail Association and the Wholesale Bureau in the appeal rected to Jesse Jones, director Finance Corp., acting Comptroller of the Currency "Failure of the Government keep its release cent bank deposits increasing citizens and business hardships Uncertainty caused by delay creates dangerous public temper We earnestly you statement exactly when formation will be available how money much. Continued delay business further enspring merchants, manufacturers danger and employees. As Soon as Humanly Possible' In Washington Mr. Jones that be released soon 'humanly possible. delay. solely the extent that be through being the Bank of view available the First National and positors Guardian banks the amount money heretofore stated the earliest The and operation the Detroit during the interval required will be appreMr Jones said he had been sured that the National Bank of Dethe about ready take charge. He emphasized, however, that could not the per in terms days and hours "because not want make any that cannot realized to the Fords Enable Bank to Open It was disclosed the day that Henry Edsel Ford the opening. Tuesday, State Bank, making possible the immepayment of funds depositors. official of the Ford Motor Ford and Edsel Ford. the Ford Motor Co., claim to $1,000,000 posits for period of years ficient enable bank operate per cent basis. The opened under Federal authority the Fords' offer received. Holdings American State Bank years the bank earlier the Ford official The bank years which liquidate these assets, was connection with the proposed offset deposits Bank for the First National that an order been issued releasing from formerly ordered on the enforce stock sessment. funds deposits stockholders the American State Bank.
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Allan Verdict Is Sustained by High Court American State Bank Head Held Guilty as Embezzler His Attorney to Ask a Rehearing of Case The Michigan Supreme Court Tuesday upheld the Recorder's Court jury and denied new trial to Robert former president of the American State Bank, who was guilty than ago embezzling $106,565 bank's funds eight Supreme Court tices divided on opinion four favoring the and four against such decisions the plea is Allan. acclaimed as the "boy banker financial genius walked by has been $25,000 since the day before Christmas of 1931 he spent hours in jail He sentenced by Recorder's Judge W McKay to from 10 to 20 years in prison Fight to Be Continued The brought Allan prison, his attorney Arthur Tuesday that he will the fight for Allan's After he has the opinion on the Schueler will file for rehearing the case before the upper court, view of the divided opinion of the believe titled to rehearing. Schueler any rate that the motion will be filed but nothing done after the The opinion signed by four the the court's failed to the bank indebted to the defend ant the drawn defendant had Joel Stockard ence the purchase American State Bank in no with wherein funds drawn used purchase in the defendant's own name and that of his wife Unlawful Conversion Proved' At point the opinion declared that showed that the had lawfully moneys of the bank entrusted his president his that the of guilty embezzleProsecutor Harry Toy officials Lansing by legal papers in probably will not reach Judge Skillman's until Friday If no further action Is taken by the then be and he in custody to start his sentence Circuit Court Rob ert E. Sage had been hearing the hearing Allan brought by the Bank Manhattan Trust mine unable to settle $29,000 judgment advised the Tuesday be useless continue the wit ness months the had been warned by Sage he would be held contempt he continued withhold the Trust company be against Allan the preme Court' in upholding his For almost five weeks in the from Allan's dragged along and the of his fall with that of the bank was read into the Reichert Steps In Earlier in same the the State Bank had stirred the The first rumors that the bank unsteady Almost diately Rudolph E. Reichert State banking president of the bank on March after days closed but saved from by the action of other banking Allan had ridden upward with the bank He with Recognized as the chief factor hind the American State Bank's rapid expansion and growth to largest independent Dehe placed position to take the blame for its sudden During the trial it was brought out that Allan the American Detroit Co. was organized, with him as but never incorporated. The jury found guilty of diverting the funds his bank through this The Detroit Co. of the bank's subsidiary companies. others. the American Fort Street Co. and the American State Bankers. Inc were legally incorporated. It was shown the trial that amounts totalling $1.003. 000 transferred from the the Co. in the form of "loans."
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BANK RECEIVER SUES DEPOSIT COMPANIES Plaintiff Will Attempt to Collect $2,000,000 from De. troit Firms DETROIT May 8 P)-Trial of suit brought by C. O. Thomas, receiver for the First National Bank-Detroit to collect $2,000,000 two companies that bonded the defunct American State bank against embezzlements and defalcations will be started in federal court Monday Thomas charges that more than was lost to the bank through "embezzlements and other dishones practices If Thomas should win his in which the Detroit Fidelity & Surety company and the Fidelity Deposit company of Maryland are defendants the money would go into the receivership fund for the benefit of First National Robert M. Allan, president of the American State bank ing prison for misuse of bank funds, while two former vice are now on trial charged with and misapplication of They are Gordon Fearnley former executive president Joel Stockard president of the bank and head of a brokerage
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Bank Receiver Wins in Claim Judges Must Pass on Award In an oral opinion handed down Friday, William S. Sayres, Federal master in Chancery, found that the former American State Bank through embezzlement defalcations reconmmended to court bonding companwith which pay the the receiver of the First National Bank. One of the companies, the Fidelity Deposit Co. Maryland, already the issue with ttlement has withdrawn other company the Detroit Fidelity Security merged with Lloyds Insurance America, which is receivership. Circuit Judge Leland Carr, of appointed ceiver the findings pass Judge Edward Federal both judges the finding. be subject United States Compproval the the Currency. No Contest Planned attorney for William M. not contest Lloyds', findings. the Robert S. Marx, attorney for filed the receiver, First aggregating bonding companies, against bonds indemnified that the claiming the officers defalcations of However, he employees. to prove more propose had been embezzled than the amount because that was issue. Testimony disclosed president that Robert the former American State prison Jackson, known set the dummy that Co., account to deal stocks and bonds. Accountant Testifies John Shackelberg certified pub- the testifying for accountant, the various transbank explained involved the actions that the "dumHe said shortage. State Bank's from American assistant to Massnick Henry tesMarx. Allan had withdrawn timony that the Co. account and used the that money sum stock speculation. returned $108,257. leaving Allan had the in this particuaccount of $306,195.
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Bankers Stole, Says Counsel for Bank DETROIT, Nov. 2 (I.N.S.). Charges had been made today by former Judge Robert S. Marx in circuit court that Robert M. Allan, former president of the defunct American State Bank, now serving a prison term, "actually stole $2,800,000. Mr. Marx is counsel for the receiver of the First National Bank who is seeking to collect $100,000 from the Fidelity and Casualty Company of New York for losses suffered in the collapse of the American State Bank.
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BANK RECEIVER IS AWARDED $113,904 ON ALLAN'S BOND Detroit Dec. deliberating 15 minutes over seven weeks of testimony, circuit B. court C. Monday awarded Schram. jury late receive for the First National judgment of $113,904 on the bond of Robert M. Allan, imprisoned former president of the old American State bank The jury's award was directed against the Fidelity & Casualty Co. of New York and covered the full amount of Allan's bond, together with interest. will not become effective until Judge Guy A. Miller has ruled upon a motion for dismissal submitted by the bonding company's attorneys. The court indicated he would act upon the motion this afternoon. Schram charged Allan removed funds belonging to the American State bank to his personal ac-
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Attorney Gets $15,000 As Bank Case Fee Harry H. Platt, Detroit attorney, today had been allowed $15,000 in a fee order signed by Federal Judge Picard. The fee was for services given in connection with a suit/to recover interests held by the federal receiver of the First National Bank, Detroit, for 350 stockholders of the defunct American State Bank.