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Judge Speeds Bank Appeals
Stockholders Given Final Decrees
Paving the way for speedy appeals from his finding month ago that stockholders of the bank holding companies are accountable for assessments receivers of the First National Bank and Guardian National Bank of Judge Johnson Hayes, of Greersboro, N. final decrees after an all-day hearing Monday. The First National order affects nearly 200 Detroit Bankers Company shareholders and involves assessments of $5,500,000 of the total levy of $25,000,000. About 60 Guardian Group shareholders are called upon to pay $1,600,000 of the $10,000,000 levy in that case. Litigants are divided into three separate in case the decree being final only as to those whose holdings are not in dispute. In each however continuations were ordered for another group, where disagreements exist as to the amount of stock held. or where death has intervened and it is necessary to await naming of an administrator for the estate.
Intervening Right Extended
The right for other intervenors to enter the action extended through this group The bill of complaint was dismissed against those litigants who have paid the assessment. The late George H. Barbour was one of the instigators the action. Its disposition as his estate must be The estate of the late Julien P. Bowen presents a similar complication Judge Murfin chief of counsel for the stockholders. announced that the petition for appeal and assignment of error in the Detroit Bankers Company case will be ready in 10 days or two and probably will be filed Judge Charles C. Simons, of the Court of Appeals. From his own North Carolina bench, Judge Hayes then probably will be called on to fix bonds.
Guardian Has 60 Days
The Guardian appeal may not be ready for several weeks, Attorney George H. Klein intimated. Sixty days are available for its preparation. Some technical were by Judge Hayes his original finding. but they did not ma terially alter his holding that shareholders of the holding companies must bear their prorated shares of bank assessments for stock in the corporation's Ten exceptions to fact and 11 as to law taken on behalf of the Bankers company and seven as to fact and eight to law by attorneys for the Guardian Murfin, director under Federal Court judgment already has paid $1,000 assessment on shares and fought vainly to have this offset the new judgment, claiming that violated the Court's finding that the Bankers company in fact. the owner of directors qualifying shares.
Assessed as Recorded
Judge Hayes held that there was no duplication the levy, and that individuals who permitted stock be recorded in their names were answerable. So that the issue may be presented to the Appelate Court, Judge Hayes specified that the bank ceivers have sole right to collect assessments, and that Receiver William F. Connolly, of the Detroit Bankers company and Receiver Alex J. Groesbeck, of the Guardian, have no such right, although both of the latter are continued in the case as to issues not disposed of am anxious to see the question settled by the Circuit Court, whether the receivers of the holding company have any rights,' the Court observed. Insolvency Date Unsettled
The decisions leave open for future determination the date of the insolvency Stock holdings of record 60 days prior to the determined date are and Attorney Frank E. Wood, for the receivers, declared that of one bloc of 40,000 shares of Guardian stock hinges on that decision. have not decided whether the bank holiday declared by Gov. Comstock was legal, or whether that declared by President Roosevelt was legal, nor whether the liability of would attach 60. days before the Comstock bank holiday, or 60 days before the appointment of the receivers in May, Judge Hayes said. "It is unlikely that any great volume of stock in either case would be affected. and it also seems probable that agreement as to own ership be reached without great difficulty. While Wood did not disclose the clouded ownership of the 40,000 shares of Guardian stock, it is recalled that the Pecora investigation in Washington developed one large transfer from Charles S. Mott, of Flint, to Harry late in preceding the Feb. 14, 1933 holiday
