57265e42Accommodated withdrawals, Borrowed from banks or large institutions, Full suspension, Books examined
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Named Attorney For Bank Receiver Mr. assistant attorney was named Judge Leland W. Carr the Ingham circuit court attorney for the receiver for American State Savings bank. The permanent receiver, appointed Judge Carl Fors, formerly the state banking department. Mr. Eger's resignation member the staff of the attorney general's W. Voorhies. attorney general, effec(Continued Colum
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State Receiver Seeks to List School Claims Carl Fors, receiver of the American State Savings bank, will seek reimthe bursement from the stockholders of the closed bank for which the Ingham county circuit court cently ordered the bank pay the city Lansing in taxes levied December 1931, on the capital the bank. This announced Thursday by Eger, attorney for said that the court that the bank pay taxes for behalf and as agents stockholders. state to Mr Eger, provides that the bank pay the in behalf of the stockholders but really levy against individual stockholders. filed petition seeking payment taxes and the court granted the petition. Plan School District Hearing Mr. Eger also announced that will held in circuit court here Wednesday, March the morning which number school districts townships present claims preference deposits the bank. The districts and townships which will heard and the School No. Eaton No. Ingham, Ingham, No. wassee No. Clincounty, Clinton, Pleasant Grove No. Lott school district, Clinton, Delta township, Eaton. township, Clinton, $4,659.23.
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City of Lansing to Fight Demand of Bank Receiver LANSING, May 12 (AP).-The city of Lansing will fight the suit filed by the receiver for the American State Savings bank for the recovery of $150,000 in cash and some $167,000 in municipal bonds turned over to city officials shortly before the institution closed. City Attorney Richard Raudabaugh today he had completed reply briefs to the receiver's contentions. Raudabaugh claims the withdrawals were not made by the city in contemplation of the bank's insolvence and that they did not constitute unlawful preferences.
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City of Lansing to Fight Demand of Bank Receiver LANSING, May 12 (AP).-The city of Lansing will fight the suit filed by the receiver for the American State Savings bank for the recovery of $150,000 in cash and some $167,000 in municipal bonds turned over to day officials shortly before the institution closed. City Attorney Richard' Raudabaugh today he had completed reply briefs to the receiver's contentions. Raudabaugh claims the withdrawals were not made by the city in contemplation of the bank's insolvence and that they did not constitute unlawful preferences.
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Big Depositors Soften Lansing Bank Suspension Faith of civic and industrial leaders in a Lansing institution probably never was better exemplified than in the story behind the failure of the American State Savings bank in Lansing. Records of the closed institution reveal that when it closed its doors on December 22, 1931, several of the citys' largest industries had approximately $1,190,000 of cash surplus tied up in the bank, despite the fact that officials of these companies were also directors of the bank and fully aware of its financial condition. In fairness to the depositors, these men stood aside and allowed the large deposits of their companies to remain in the institution, despite the fact that steady withdrawals indicating its ulimate suspension of business. Acquainted as they were with the affairs of the bank, it would have been entirely possible for directors to withdraw the large deposits of their respective industries and leave the smaller depositors the bag. The largest amount of cash locked behind the closed doors of the bank and in custody of the receiver is the $900,000 account of the Reo Motor Car Company Two prominent officials of the Reo were directors company stockholders of the American industries, whose leaders as directors of bank could have withdrawn the their funds, but who chose to see their deposits "frozen" in fairness to other depositors, were the Atlas Drop Forge Company, the Motor Wheel Corporation, the Lansing Ice and Fuel Company, the Aero Engine Company and the Federal Drop Forge Company.
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Big Depositors Soften Lansing Bank Suspension Faith of civie and industrial leaders in a Lansing institution probably never was better exemplified than in the story behind the failure of the American State Savings bank in Lansing. Records of the closed institution reveal that when it closed its doors on December 22, 1931. several of the citys' largest industries had approximately $1,190,000 of cash surplus tied up in the bank, despite the fact that officials of these companies were also directors of the bank and fully aware of its financial condition. In fairness to the depositors, these men stood aside and allowed the large deposits of their companies to remain in the institution, despite the fact that steady withdrawals were indicating its ulimate suspension of business. Acquainted as they were with the affairs of the bank, it would have been entirely possible for the directors to withdraw the large deposits of their respective industries and leave the smaller depositors "holding the bag. The largest amount of cash locked behind the closed doors of the bank and in custody of the receiver is the $900,000 account of the Reo Motor Car Company. Two prominer officials of the Reo company were directors and stockholders of the American State Savings bank. Other Lansing industries, whose leaders as directors of the bank could have withdrawn but who chose to see their their funds, "frozen" in fairness to other deposits depositors, were the Atlas Drop Forge Company, the Motor Wheel Corporation, the Lansing Ice and Fuel Company, the Aero Engine Company and the Federal Drop Forge Company.
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ACTIVITIES IRREGULAR Seyfried Testifies Transactions on Final Day Were Unusual; Withdrawal List Read into Record; State Took Out in Cash Albert Seyfried, former auditor of the American State Savings bank, Friday morning in the suit against Ingham county to the effect that the activities the bank on December 21, the day before the institution closed, were irregular. The former auditor told of several transactions not handled in the usual manner. The battle Friday appeared to be between attorneys for the bank directors and attorneys for the receiver. Judge Charles Collingwood ruled Thursday that the bonds offered by the directors to funds legal, inasmuch protect county were the bond referred to the statute providing for such bonds. Since that time Frank Eaman, Detroit attorney, and C. Smith of Lansing have conducted most of the cross-examination. Paul G. Eger, for Carl Fors, receiver for the attorney bank, went rather extensively in his questioning Friday morning into list of last minute withdrawals December showing that the state of Michigan withdrew and that the bank's balance was decreased $115,000 through subscription account which was set the up last day the bank was open for It also was testified that the count of the Holt State bank, had been high $13,253 on De. cember had dropped $715 at the December fried testified thought Charles Toms Walter Foster, former directors State bank, Measures to Legalize Bevalso were Holt bank. erage before Both Houses Checks Returned Unpaid The bank auditor testified that letters were handled December usual way. was that cash letters checks drawn the bank by outside banks usually paid draft the federal reserve bank Detroit. On the last business, acording the testimony, instead checks credited against customers' counts course business, were returned Detroit the ning unpaid. said did not the amount of checks the letter Seyfried told of two loans ceived bank, was received for the other, received o'clock the morning Decem ber from the federal in Detroit orders of Mr. Toms. Bank clearances handled the regular testified instead checks exchanged by the banks, said above certain amounts usually made Grant Company and Hulburd, Warren, Chandler the the bank open, according Sums Paid Borrowed Seyfried said that the cash paid the the operation money, but admitted under cross that was not usual for the bank borrov money pay depositors. He deposit Holt bank made December record This deposit 092.95. He said he supposed that when many withdrawals being made neighborhood banks might amount cash. Seyfried told $600,000 placed to the of the American State bank December Of paid in return for the the Federal Detroit ment, which by truck used the county pay city withdrawals Pegnem, draft teller, took the stand testify Schray, bank cashier, told him not send the drafts for Grant company and Hulburd, Warren, Chandler accounts, and that after making out drafts later canceled them VanSickle, assistant auditor, testified that cash letters reserve banks Detroit and Chireturned order Mr. Toms. He said that thought amounted between $60,000 and but there record here. President's Accounts Cited Going the bank officials, Mr. Eger entered records three accounts Edward Roe, bank president. account the West Jobranch, which December $100 when the bank closed, $290 when the main bank was the closed December made deposit this but about equaled by withdrawals Seyfried said that the subscription account did detract bank's from the reading from bank records, he said that Mr. Foster's did not appear the records those entitled handle Holt American State bank. He names Gunn, another official the appeared. Treasurers on Stand Important testimony was offered Thursday Hubert Bullen, treasurer, Nellie city Harry Olmstead, president treasurer the Trust had charge mortgages, bonds pay testified that she Charles the suggested that she city (Continued Page Column
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Receiver Testifies Company Returned Money Paid Out By Bank on Last Day QUESTION ABOUT ASSETS Two County Officials Say Directors' Bond Never Was Given Approval The Lansing Ice and Fuel company Tuesday added list of business institutions which drew money from the American State Savings bank December 21 and later returned The receiver for the bank is suing Ingham county force the return of similarly drawn During examination of Carl Fors, bank receiver, at the session circuit court when the trial was one the for the receiver. questhe Lansing Ice and Fuel comDecember funds from the bank," Mr. Sesasked. Mr. Fors said. "One of he answered. Talked with Officials Mr. that he had talked the ice the returned letter Reutter. He said Reutter was the ice company and the bank. reply question might pay the deposits, said that The suit was started the receivforce the county return $94,to have been illegally paid on December the last day bank was The city being sued recover $150,000 in cash and about $167,000 bonds. which were paid after o'clock on the day in question Most the time Tuesday morning in questions assets. provided an bonds and an appraisal real the Fors said that he ward Roe, of the post Country Club Lansing bonds collateral for the notes which Mr. Roe gave exchange the bonds December and asked endorse $15,000 worth other notes. Never Approved Bond Ross Hilliard, county clerk. took the stand that the directors' bank, safeguard for county had never been sented to the board of approval and John Wendell Bird, attorney. testified that the bond had never been presented to him approval. Bank officials have defended the withdrawal of cash the county the legally made, the having by offithat the would trust funds. ruled earlier the trial that the bond was binding Clifford W. local realty appraisal bank properties which made the request Mr. Fors, between last April May not reveal sums which the properties were appraised.
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Judge Collingwood Refuses Another Trial of Bank Withdrawal Issue Judge Charles B. Collingwood of Ingham county circuit court Friday morning denied petition of attorneys for Carl Fors, receiver of the American State Savings bank, seeking rehearing the against city of Lansing the Central Trust company. The receiver in the suit against the city sought return $150,000 by the city treas21, the day before the bank closed, as well as return securities.
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Bank Receiver's Suit Is Formally Appealed Attorneys for Carl Fors, receiver of the American State Savings bank, filed in Ingham county circuit court Saturday full notice of appeal to the state supreme court from the circuit court's decision in the suit against the city of Lansing and the Central Trust company. The plaintiff claims that the court erred in ruling that the city was entitled to retain $150,000 in cash withdrawn the city treasurer the day before the closed well bonds pledged by the security. Motion of for the receiver for recently denied and final decree was entered.
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PROGRESS $194,827.99 Net Operating Profit Shown during Year Institution Was Closed Receivership report of the American State Savings bank. covering the period from December 22, 1931, to December 23, 1932, reveals decided accomplishment in which Receiver Carl Fors maintains that the helpful and conscientious co-operation of depositors and borrowers well as others, had the principal part. Despite the handicaps always resulant from closed bank Receiver Fors made net operating profit months This profit after deducting all taxes, salaries, legal expenses, building maintenance, Expenses totaled $87. Income shows all income totaled Cash on hand or in the hands of the state treasurer totals During the receivership Mr. Fors paid to release of bank's pledged assets and also borrowed money. Collection to date on assets amounting to of December 23, there had been $300. collected by the receiver stock assessments. On Saturday, December 31, this total had been creased and the bank just that much nearer meeting the $400,000 reopening requirement of the banking commissioner and the court. Total assets of the bank, including loans and discounts. mortgages, bonds, cash. due from banking houses, furniture. and fixtures other real The proven claims filed, known deposit liabiliamounted to Depositors still continue to sign the agreement. Saturday the receiver had pledges averaging six percent above the percent deposit Agreement requirement.
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Former Bankers by Receiver $46,000 Assessments Claimed as Due LANSING Jan. former of the closed American State Savings Bank were made defendants suit to collect assessments alleged be due on their bank stock, by Carl Fors, rebegun in Circuit Court Friday total$46,500. Charles Toms, former executive vice president: Lloyd former assistant cashier. and Ernest Gibbs, formerly in charge of the bond department. The receiver claims Toms owes stock assessment and three notes given for $19,000. Abbott for $4,000, and against Gibbs for $2,500.
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THE STATE JOURNAL, LANSING, MICHIGAN, JANUARY Drama Revealed Review Year's Events in Past of Lansing Chronological of the world's men women following chronological review Lansing revealed drama during past year. Some some matic and some smack high comedy. But events mirrored show steady march of progress ward better times: January January 2-Governor William Comstock became the 34th governor simple inauguration January the and employes the publican senate fired democratic pioneer local George attorney. injuries received when struck coach January resigns become coach Fordham Alderman William McComb disclosed having negotiated with company officials piggery interest concern in return for council activity State Police January 200 in for Kaleva bandits. January Roberts, tured police after had shot injured Alex Hein gas station January Shields named regent of the University January Furgason, died falling in tank acid Prudplant. January Gray retained democratic house lower legislative chamber; rector agricultural industries, fired democrats January fused file statement of campaign expenses. January Legion post American' drive. January Churchill, school architect, takes his life: start study state prohibition repeal. Alfred Seymour Washington confer with President Hoover on National law forcement January Dillman candidacy succeed himself nounces highway January Steel quoted January state police local officers aid Vernon bank January "Miss Irene Senator filed for grand piggery case January temperature January suit filed Michigan editors against John Stack: reveal Lansing buying jig puzzles January Arthur Rich: Judge signs order for grand investigation of pig case. January Vanderslice named health January Riordan January 12,000 here for Farmers' Week January Clardy succeeds Harold Waples chairman Michigan utilities commission; wheat quoted February state legislative program raise annual revenue: largest crowds history attends Farmers' Week Week at college all-time record with 20,000 snowstorm up temperatures speakeasy" raided: proprietor drops to below wings sets new republican nority skirmish house predict Bahman to coach Spartan football filed garnishee Comstock's bank holiday: gives assurance precipitated bad Detroit situarefuses to change terms state bank holiday: legisla crisis: Judge Carr approval reopening Savings bank brings $100,000 passes make governor banking Charles Bachman chosen M. football coach: Gauss, Marshall named and Edward N. Frensdorf, Hudhead prison garnishment against Michigan vote in April local kills Blue, another negro, found modifies morabanks limited basis council decides submit water softener bond spring election. Feb. banks to pay deposits February bank accept of Ald. McComb of city pig. in connection with alleged bribery C. Dillman, highway commissioner. republicans: council decides submitting water softener proposal in April. March March show the votes Michigan State college: given extension April old plates March Cora Bryant, wife local druggist, kidnaped taken Jackson where she released. March passes compromise banking bill. March day extension Michigan income introduced house authorizing acrip: banking holiday in full force: Charles Bryan resigns president Capital National March bring yelfrom caches March bill Peter Gray Samuel Jacka city engineer Jay Brandimore superintendMarch State Savings bank, Trust Industrial bank authorized reopen. March state temporary sales being drafted: storm baby fatally hurt. March of Lansing thorized reopen. March lay murder Frank Hull, crippled recluse John local negro who was stabbed death February March 23-State fund and uniform change proposals pass senate March Hull named conCapital March bank trust from all to conservator avoids roll March council votes to purchase 100 shares stock posed bank: John Collins tells council courtesy must stop ation street car service continue. March imperils state capisenate document room damaged March considers plan city scrip: Charles Lawrence Lawrence Baking elected board Michigan Bakers' associa March bill for state ready. April April half of senger licensed. April repeal light offsets tional bank: launch make Lansing April Lansing. loses life Akron votes 6,000 beer state senate. April William Comb ousted from council: approves issue scrip April second nation for low 1932 among cities having population between and 100,000. April service in city historic session here by 99 April Co-operative formally April Transport buses Alderman ouster stay state supreme April Peter Gray jured in beer bill wins in April employes state cut percent: Lansing Drop Forge plant April State employes' pay deferred April Evelyn Mershon librarian. April ordered removed: Mrs. Ernest Elliott dies April to open American State April signs order American State Savings bank opening April again rejects beer April wheels speed up April board cuts pay scale April pay all employes full May beer approved April legalized in state governor April Thomas, years killed accident. Reo April cheers American State opens: reaches 75 degrees for new record. May May Smith fatally wounded struggle over revolver Ernest Ballans being charged with manbarrage heavy damage and vicinity; to May Nancy Fitzmaurice chosen Lansing's queen out contestants. May Potter picked to head May Lansing to bar sale council May factories feel slight upturn in business add pay May warehouse near heart of business destroyed May is tile works fire Courter Route after captured May named board board cuts budget $217,May of municipal play grounds here seen placing children peril: Motor Wheel corporation records largest shipments in three hall robbed night: Lansing awaits legal evening May Black chosen Junior Fred business war veteran, killed when May General Motors chief Olds hotel council votes to keep play grounds May and cornerstone of new building May raise price baked goods May Nates 14. missing with $400 father's sought police. May hundred men apply reforestation job armory. May council drafts budget salaries employes over $70,000. May State college pay car sales nearly equals 1929 report. May given city May 58, fatally hurt in crash near Johns. June June Motor Works ployes cent increase. June Harvey Hope Jarvis Benton Harbor, tells members house investigating committee produce names several legislators cepted cash from lobbyists in return for June senate passes substipercent sales fiance message opposition from Comstock. June Newark. Lansing officer commits while duty Camp June senate asks Dan McCullough, Ingham county prosecutor, to proceedings grand jury investigation of lobbying charges the legislature. June Smith, Detroit councilman, tells committee vestigating lobbying that $35,000 "slush fund" built up to influlegislation. June Kerr, drowns while swimming gravel June 12-Local lodge drill team wins state championship closing session of annual state convenheld June to revive income final effort. June McKenna (D) of Detroit. fore lobby investigating that he offered to halt behalf of reducing small June committee organizes continue evening school here. June costliest sion legislature June Ashley Rice eighth ward Floyd Shaw sixth ward appointed to city counJune State Savings bank will pay off to depositors Monday, June 26. June costing suggested here government public program. June plant probable when bid raised June crack safe Oil company office June of education June Peter Gray appointed warden of Jackson state prison. June Max Tem pleton seventh ward becomes succeeding Former Mayor Peter Gray. July attorney raises bid Durant plant to $400,000; former Mayor Peter Gray assumes duties Jackson prison. July steel beer by Wheel. Davis, East Lansing place Chicago: Comstock names emergency commission forwards orders directing Robert Allen, former president bank begin serving sentence for embezzleJuly of Durant plant to named purchaser $450,000 proved federal court Detroit. July rate increased over month 1932. July Ate Dykstra activities Isaiah Leebove connection state prison legality moval defended brief filed McLean elected president board of July plant passes into July former prison tor charge of private detective agencies July Comstock commutes sentence Fred Palm. making prisoner eligible for immediate July Frimodig becomes mayor East Lansing resignation Mayor Bert Ford. July Wheel announces increase employes. July legisladie seeking interpret sales Swander elected commander Maurice Harvey Dixon Post. No. American lists projects public works program totaling July plans to organize support of President Roosevelt's recovery program; Fjetland, ecutive secretary, appointed by member of state prison comJuly Motor Works and Reo Motor launch local paign: line state department to obtain August August Dodge, after for tion favoring city water softener plant defeated. August Hezekiah Duff. Charles Joseph Gwinn named heads of local committees August Edwin Fetter man named place NRA Patrick O'Brien clash sharply "state first 119th artillery leaves for Camp GrayAugust 5-Saturday night shopping ended. NRA provisions. August officials warned state stream commission complete system. August special legislature aid schools. Journal accepts for August merchants return old hours: first quarter beer revenue $1,566,016 August Carpenter, state welfare director, dismissed, and Miss Evelyn Mershon Saginaw, librarian, appointed to his post. ing August downtown merchants adopt August 1933 legislature more than August ceases issuing scrip because of more rapid payment August gas for LanAugust victs near Lansing by local August Kline company by Jerome August Pett named Community fund former health officer, dies council votes for removal of street tracks. August canvas NRA supporters started. September September police crash Hackett, local killed, and four injured, day September Michigan dead, 13 hurt, in Labor