First National Bank (Detroit, MI)

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BUSINESS AT A GLANCE

General Business

Merchants' Association survey of 135 trade paper editors shows optimism over 1932 business conditions; James Speyer urges railroad aid and remodeling of antitrust laws. National City Bank of New York sees little change in character of trade during closing weeks of 1931; says rise is needed in and credit volume Reopening of congress revives hope of early action on reconstruction finance corporation proposal; tariff faces house fight. Farm mortgage debt in United States estimated at $9,241,000,000 as January 1930, decrease of 2.4 per cent from 1928 New York Journal of commodity price index 61.8, unchanged from ago, but loss of 11.9 from year ago.

Automobile New Auburn models to be offered at New York Automobile show include 12-cylinder, 160-horsepower model. Bank Insurance Peoples Wayne County Bank and First National Bank, both of Detroit, Mich., consolidate into institution with total resources of approximately $600,Dividends amounting to $92,700,000 paid depositors by Prudential Life Insurance Company

Coal Anthracite coal production in 1932 will approximate 60,000,000 net tons, against 69,384,836 tons in 1930. Iron and Steel Youngstown Sheet and Tube Company will operate at 20 per cent of capacity this week, against 30 to 35 per cent of capacity in first week of 1931; Sharon Steel Hoop Company continues at 55 per cent of capacity; Carnegie Steel Company operations between 30 and 35 per cent of capacity. Dow, Jones & Company composite price of eight iron and steel products touched new 1931 low in last week of year at $42.54 ton, Pittsburgh. Merchandising Montgomery Ward & Co. closing stores where operations have been unprofitable. Chain store tax upheld by Circuit Judge Love in Florida court injunetion halting enforcement refused to chain store operators. Railroad Shipments of 29 commodities in first quarter of 1932 will approximate carloads, off 6.6 per cent from like 1931 period, according to estimates of shippers' regional advisory boards. I. C. C. to get report on co-ordination of motor transportat with railroads and waterways at an early date. Public of several Southeastern states oppose railroad merger plan of Eastern railroad executives. Carolina Central Railroad Company defaults interest on guaranteed first consolidated mortgage 4 per cent gold bolds of 1949 Alabama railway defaults interest on first mortgage solidated per cent gold bonds 1945 Florida Central and Peninsular Railroad Company defaults interest on first consolidated mortgage per cent 50year gold due 1943. Gulf and Ship Island Railroad Company defaults interest on first mortgage refunding and terminal 5 per cen gold bonds, due Railroad Equipment General American Tank Car Corporation net profit for 1932 was equal to about $5 share, according to Max Epstein, chairman of board.

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Hearing Opens in Surety Suit

Bank Receiver Asks for $3,500,000

A claim that the Fidelity & Deposit Co., of Maryland, should liable for only $200,000 instead of more than $2,000,000 was made by George D. Welles, attorney, in the suit Thomas receiver for the First National Bank which started Wednesday before William Sayres, master chancery The bank through Thomas seeks to recover from the Fidelity Deposit Co., and the Detroit Fidelity & Surety Co., $3,500,000 claimed the receiver due from the bonding companies for alleged misby Robert former head of the American State and other officials and employees of the bank.

Action Started in 1932

The suit was instituted in the Wayne Circuit Court in March, 1932. and was removed to the eral Court petition of the Fidelity Deposit Co., on the ground of diversity of citizenship. The receiver's total actual losses are listed at $2,870,544.99 and the interest makes up the balance asked in the suit. shocks the conscience of fair minded the be held liable under to pay many millions of dollars asked by the receiver," Welles declared in his argument. "It shocks the conscience that such claim should be seriously heard," he Defense Cites Contract

Attorney Robert S Marx, of Cincinnati, the receiver, claims that the bank was indemnified for the amount claimed by nature of the contract incorporated in the bonds issued by the two companies. Taking of testimony is expected to require The was referred to Mr. Sayres by Federal Judge Edward Moinet after counsel for both sides waived jury trial.