Harriman National Bank & Trust Company (New York, NY)

View Charter #9955 on SPMC View balance sheet

Episode Information

Episode UID
995501599
Episode Type
Suspension → Closure
Bank Type
national
Bank ID
99550 national
Charter Number
9955
Start Date
March 6, 1933
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
7d4588aef5762b32

Response Measures

None

Receivership Details

Depositor recovery rate
80.2%
Date receivership started
1933-10-16
Share of assets assessed as good
29.5%
Share of assets assessed as doubtful
51.7%
Share of assets assessed as worthless
18.8%

Description

Bank closed after the March 1933 holiday and put in conservatorship/receiver; prosecution and clearing-house actions influenced handling.

Events (6)
1. March 18, 1911 Chartered
Source
historical_nic
2. March 6, 1933 Suspension
Cause
Government Action
Cause Details
National/state banking holiday and orders restricting reopenings during the March 1933 emergency banking actions
Newspaper Excerpt
The decision to close New York banks two days ... judged prudent to take brief breathing spell
Source
newspapers
3. March 15, 1933 Suspension
Cause
Government Action
Cause Details
Bank failed to reopen when others did and was placed in conservatorship under emergency banking legislation
Newspaper Excerpt
The Harriman National Bank and Trust company did not reopen yesterday and, under the emergency bank bill, was placed in the hands of Henry Cooper, of the bank.
Source
newspapers
4. March 25, 1933 Other
Newspaper Excerpt
Acting Controller ... explained prosecution delayed for fear it might start a run on the bank which would spread to others in New York.
Source
newspapers
5. October 16, 1933 Receivership
Source
historical_nic
6. July 19, 1934 Receivership
Newspaper Excerpt
Receiver Asks $10,000 ... in behalf of Frederick V. Goess as receiver for the Harriman National Bank and Trust Company of New York City.
Source
newspapers

Newspaper Articles (25)
1. March 6, 1933 Pittsburgh Sun-Telegraph Pittsburgh, PA
Article from Pittsburgh Sun-Telegraph, March 6, 1933

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Forbes Our Troubles, Man-Made. Can Be Remedied C. FORBES have cousin who Whenfarmer cannot manage turns him black smith once asked "How He comes excitMr Forbes don't understand horses: they don't know how to quieten them down. know how horses think just keep cool. don't whip them: talk nicely them. First thing you know they stop getting excited and start doing tell them. When they know that I'm not ous they stop being nervous. So many bank depositors have been kicking over the traces that banking trouble has developed Our bankers by and large, failed to the public from nervous What we now need is somebody take hold who understands us as well as this rustic blacksmith He that the clame for horses with who handle them than with the not true that the blame for the recent state mind bank depositors chargeable largely bankers? Weren't bankers among the first to rush to become 'liquid?' WE BANK DEPOSITORS need somebody calm us down New brooms sweep clean Happily Washington has new broom. in the person of PresiRoosevelt At Miami he demonstrated his and Anxious to make creditable record. he doubtless will immediately address himself to the most of all our problems. namely the of banking facilities and confidence THE DECISION to close New York banks two days not reached until the early hours 0. Saturday understand the largest the felt entirely capable of any could arise But was finally ad judged prudent to take brief breathing spell DOUBTLESS this decision was influenced by the panicky action of foreign countries. Friday's "raid" America's was the severest ever experienced Under normal conditions absolutely are ideal But today's ditions are not hooves this protect itself. protect its stock of gold. to to that its financial strength not undermined by other nations THE HUMAN ANIMAL the most adaptable the most resourceful in all creation way out of these banking difficulties will found how much worse off Ponder America would be her troubles were being caused by extreme scarcity of food clothing shelter water other absolute of We are not afflicted by famine We are afflicted afJuence by surfeit of life's necessaries SURELY IT WILL not prove beyond the ingenuity man. beyond the of Amer. icans admittedly resourceful to devise ways and means make available for those who them the In short our troubles are superficial rather then fundamental. created by man rather than by nature. ROOSEVELT has an opportunity not equalled by president since Lincoln infinite and immortal glory instituting truly effective It Congress attempt obstruct prompt clearcut, aggressive, courageous

2. March 8, 1933 Standard-Speaker Hazleton, PA
Article from Standard-Speaker, March 8, 1933

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FEDERAL Resources Thrown Behind Member Banks To Facilitate Limited Operations. ANNOUNCED LAST NIGHT Banks Can Exchange Their Own Certificates for Other Forms of Currency. NEW YORK, March of the Federal Reserve System thrown behind its ber banks tonight to facilitate the limited banking such providing funds for movement of food, which started today. But the reserve system, according the new regulation by Treasury Sccretary Woodin, made public New York Federal Reserve Bank tonight, may aid those banks up the gold which they hold their right, in exchange for other forms currency. The reserve system aid may banks, which, in the judgement the individual reserve institutions, complying with spirit and purpose well the letter" of the regulations for financing business, through currency, other than gold certificates, making vances or discounts, transfer credits between member banks, and handle checks and other collections But in keeping with President campaign to end hoardthe Reserve banks must first that each member informs reserve institution of the amount currency on hand, the reasons why additional currency needed, must "deliver to the Federal Reserve Bank in exchange for other forms of coin currency of credit its books, all gold and gold certificates held by such member bank in its right." New York bankers regarded the opening of the reserve most which closed last Saturday, vital step in the storation of adequate normal bankactivity. Some bank executives earlier in the day expressed the opinion that the New York banks could resume rather extensive tivity, should Reserve Bank open. In quarters, it felt that resumption of Reserve Bank operations would obviate much of the need of an scrip system. explained that Reserve System could legally almost amount of currency any which might desirable. Nevertheless, the scrip plan was abandoned, and Governor Lehformation of Emergency Certificate chairmaned by former Governor Smith, put the plan into effect in New York state. The New York Clearing House plan, which was among first be developed, was held abeyance. With the Federal Reserve and statement from Governor Lehman making it plain the holiday in this state not conflict with treasury regulations arising out of the national holiday, expected that all of the large New York banks would open morrow for payroll payments other essential The experience of the New York banks in trying to resume operation today was owing frequent of opinion bankers and the clearing house how regulations should be interpreted. Firms which tried to funds for payrolls had difficulty, few able their amounts. Some banks deposits and some did not. (Continued

3. March 10, 1933 The Kokomo Tribune Kokomo, IN
Article from The Kokomo Tribune, March 10, 1933

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BANKING SURVEY (By The Associated Press) President oxtends banking Hourded gold flows back Into foderal reserve banks. President completes plan slash half billion dollars expenditures off certuin lopping and reducing compensations Presidential proposal for 500,000 half billion dollar issue to put men at work in reforestation, flood and in power development vast internal Improvements is profor presentation to congress, pared probably tomorrow. New bank Inw. swiftly passed by both houses signed by President Roosevelt inst night. provides other things for of "sound banks" upon their being approved by the treasury departSecretary Woodin of the treasury announces policy will be "to permit possible the opening rapidly sound banks." Senntor Glass interprets exten sion of bank holiday as being de signed to permit states possible to the shelter the federal reserve." No bank reopenings are to be before Saturday the treasury indicates. order that All be placed banks upon opening to meet all demands. position Food supplies continue plentiful and New York stock exchanges to main closed until national holiday lifted. Banks In many parts of the counoperating within the try open, down by the treasstrictions ury department. Loans and payments on surrendvalue of Insurance policies York state is ordered haltNew period of the emergency for superintendent of Insurthe state New York savings banks announce reopening today to resume payment of limited sums to deposNew York clearing house begins clearing checks. New already being to be available as rapidly banks are authorized to reopen. Small Starter. SALESMAN: What kind of car, cylinders? CUSTOMER: Couldn't begin Wheel.

4. March 13, 1933 Biddeford-Saco Journal Biddeford, ME
Article from Biddeford-Saco Journal, March 13, 1933

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Runs Harriman Bank New York, March The Harriman National bank did open business today when other federal reserve members resumed operations, and the bank stated conservator present take charge of the affairs. Provisioin conservator to take charge banks immediately under the plan President Roosevelt in the emergency banking bill passed by congress last The Harriman National bank member the York Clearing House association its clearing house statement showed capital of and undivided profits, $941,demand deposits, and time deposits, 102,000. announced today that the private bank of Brown BrothHarriman and company, which has no with the National bank opening for business as usual day. BODGE Edward Bodge, 71, for 25 years of the box shop Bar Mills, died Friday and resided Bar Mills years. He member Buxton lodge, Saco River grange. His wife, Bodge: brother, Frank Bodge of and sister, Mrs. Starr New London, survive him.

5. March 15, 1933 The Kokomo Tribune Kokomo, IN
Article from The Kokomo Tribune, March 15, 1933

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CONGRESS TODAY (By United Press) Senate: Continues debate Finance committee bill. Other committees consider Harriman Medalie was told over the teleHouse: phone by John Pinkley, deputy marshal. that Harriman was Considers bill extending emergenaid to state banks. bed care doctor and committee meets nurse, apparently unable to moved. $5,000,000 nance Corporation allotment The federal attorney instructed California. the deputy marshal retain Har- riman custody his pending arrival of signed to examine the banker the government Conservator in Charge The Harriman National Bank and Trust company did not reopen yesterday and, under the gency bank bill, was placed in the hands of Henry Cooper, of the bank. The Harriman National Bank Trust company member of the New York House tion and its latest clearing house capital $2.surplus and temand posits. $19,577,000, and time depos$5,102,000. Harriman the son of John NeilHarriman and Elizabeth GrainHarriman, clerk in National Bank of New York City in 1883, the same year he was graduated from Charlier's French Institute. His rise with that bank was steady until 1901, when he resigned vice-president cnter the firm of Harriman Company, established by his brother father. In 1912, be founded and became president the Harriman NationBank and Trust company. Too Much for Him DOCTOR: You're better? you drink hot water an hour before every meal, told you? did my doctor. but had give after about ten minutes. Lllus-

6. March 19, 1933 Evening Star Washington, DC
Article from Evening Star, March 19, 1933

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CLEARING HOUSE REPORT REFLECTS WITHDRAWALS New York Bank Deposits Show Decline Due to Large Payouts of Funds. By the Associated Press. NEW YORK, March 18.-The weekly statement of the New York Clearing House, the first issued since March 4, today disclosed a considerable decline in net demand deposits of members, reflecting withdrawals prior to the lifting of banking restrictions on Monday. Because of the order against the reopening of the Harriman National Bank, this institution was eliminated from the statement. Net demand deposits aggregated $4,912,485,000, against $5,463,124,000 on March 4. Time deposits totaled $717,081,000, against $752,449,000 two weeks ago. Surplus and undivided profits were off slightly at $872,130,400. Changes in the statement follow: Total surplus and undivided profits, $941,000 (decrease) ; total net demand deposits (average), $550,279,000 (decrease) ; time deposits (average), $35,268,000 (decrease) ; clearings week ending today, $3,293,831,129; clearings week ending March 4 (x), $3,492,900,945. (x) Five days.

7. March 25, 1933 The Springfield Daily Republican Springfield, MA
Article from The Springfield Daily Republican, March 25, 1933

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REVEALS HARRIMAN BANK CASE PROBED FOR FIVE MONTHS Acting Controller of CurrenExplains Prosecution cy Delayed For Fear of on New York Company March conptroller the today bank spent months attempting straighten affairs of the Harriman National Bank and Trust pany of New alleged regularities over the department justice for This delay time condithe presentation the the prosecuting first ported Fears of Runs Discussing Cummings said had because existing the might would to others explaining treasury's bank's condition asked liquid before examiner, examiner tinued his bank's affairs "hoping operation DeOn that ordered the department Await said, Henry talked asked more time get the bank liquid. Says W. D. Mitchell Not Told The said today William Hoover Harriman was all subordinates.

8. March 25, 1933 Leader-Telegram Eau Claire, WI
Article from Leader-Telegram, March 25, 1933

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REVEAL DELAY IN HARRIMAN CASE (Continued from examiner first reported to ington. Discussing the delay yesterday. torney General Cummings had been judged necessary apparently situation existing at the time might have started the bank which would spread to others New York. Awalt. the treasury's the said the examinpoint first the July 1932, that the bank's fairs condition but were asked time make liquid before prosecution begun. added that suggested the Awalt depositors would profit holding temporarily. Throughout period. troller the officials were on the premise that grand acting jury and would start run on the publicity Harriman bank. Awalt said that with his recomthe tice halt the was since not involved in the case and action could started any time. The justice department said tothat William attorday general the Hoover adminisknew nothing the Harritration. Medalie Confer NEW YORK. counsel the senate comPecora, mittee stock market practice, conferred today with Attorney Medalie and terward determine the the Joseph Harriman within the scope committee's inquiry. Harriman arrested last week charged making false entries accounts the Harriman National Bank Trust from whose chairmanship he then resign- Medalie, charged by depositors' committee with delaying the cution. replied statement layresponsibility upon treasand justice departments in At this Senator Fletcher of Florof the banking and suggested quiry the investigating forwarded data the mittee matter Pecora The bank failed open after the

9. March 25, 1933 The Berkshire Eagle Pittsfield, MA
Article from The Berkshire Eagle, March 25, 1933

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FEARED RUN ON BANK Acting Controller Explains Why Action in Harriman Bank Was Delayed WASHINGTON, March 25 G. Awalt, acting Comptroller of Currency, said late yesterday bank examiner spent five months to straighten out the affairs of the Harriman National Bank and Trust Company of New York before alleged irregularities were turned over to the Department Justice for prosecution. This delay between the time the examiner discovered the bank's condition and the presentation of the evidence to the prosecuting authoriand another delay of several months at the Justice Department been the subject of criticism Capitol Hill. Last week Joseph Harriman, head of the bank, was arrested on charge of embezzleeight months after the first reported to Washthe delay Thursday, Gen. Cummings said had judged necessary apparently the at the time might have started on the bank which would spread to others at New York. Awalt, the Treasury's said the exdepartJuly 25, that the bad asked time to make it more before any was begun. Awalt said John W. Pole, that time, had not the the merely one of thousands coming to the office. The was said to have his efforts to put the bank's affairs in shape, "hoping to cooperation from Harriman," until December 23. On that date presented his formal report to Department of Justice. On December 30, Awalt said, Henry E. Cooper, new president of bank, and its vice president, talked to Awalt and asked more to get the bank liquid. The Justice Department said yesterday that William D. Mitchell, attorney general in the Hoover adminknew nothing of the Harriman case, but that it was all handied by subordinates.

10. March 25, 1933 The Buffalo News Buffalo, NY
Article from The Buffalo News, March 25, 1933

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EXPLAINED Feared Bank Run From Harriman Prosecution, Says Awalt. March 25 the bank attempting straighten affairs the Harriman National Bank Trust company New York before alleged irregularities turned Department Justice for prosecuThis the time the condition presentation evidence prosecuting authoriseveral months Justice department been subject Joseph the the Throughout period. troller pointed acting premise grand proceedings publicity Harriman bank PECORA MEDALIE CONFER YORK nand counsel Senate committee conferred Friday ed States George and determine the months the Joseph within the scope the inquiry

11. March 25, 1933 The Buffalo News Buffalo, NY
Article from The Buffalo News, March 25, 1933

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DELAY IS EXPLAINED Feared Bank Run From Harriman Prosecution, Says Awalt. WASHINGTON March said Friday bank spent months attempting straighten out the affairs the Harriman National Bank Trust company New York before alleged irregularities Department of Justice for prosecuThis delay time the dition the presentation the evidence prosecuting authoriand another delay several months the department have Capitol Last Joseph head the charge eight after first this comppointed were acting premise grand and start run on Harriman bank. PECORA MEDALIE CONFER NEW YORK, March nand Pecora, counsel Senate committee stock market conferred States George Medalie he expectmonths' the prosecution Joseph the scope the committee's inquiry

12. March 25, 1933 News and Record Greensboro, NC
Article from News and Record, March 25, 1933

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ATTEMPTS TO OFFSET BANK'S FAILURE MADE Acting Comptroller of the Currency Explains In Detail Acts of His Office. MITCHELL NOT AT FAULT Washington. March G. Awalt, acting comptroller of the currency, said today bank examiner spent months attempting straighten out the affairs the Harriman National Bank and Trust Company of New York before alleged is. regularities were turned over to the department of justice for prosecution. This delay between the time examiner the bank condition and the presentati evidence the authorities and another delay the justice department has been the subof criticism from capitol hill. Last week head the bank, was charge embezzlement. nearly after examiner first reported to Discussing the delay yesterday, Athad been because the situation the time might have started run on the which would spread others in Awalt, the treasury's affair. the examiner reported first the department 25, 1932, that the bank's affairs in bad condition but he asked time make it more liquid before any was begun Awalt said that time, had the letter from the examiner, was the of thousands coming to office said to have efforts put the bank's affairs in to co-operation from unOn that date presented his formal report and Awalt ordered sent immediately to the December 30, Awalt said, Henry E. Cooper, new president the bank, vice president Await and asked more time to get the bank liquid "That's Up to the department of Awalt said They replied they had sought his justice department and upon that basis said he talked to Nugent Dodds, the attorney general in the he want him (Dodds) anything with the aims of justice Awalt added that he suggested the depositors profit by holding off prosecution temporarily Through this period, comppointed the officials were acting on premise that grand jury publicity would start run on the Harriman Awalt that with his recommendation, the department justice halt did the statute limitations was involved the case and action not be started any time. The justice today William D. Mitchell, attorney the knew the Harriman case but that it was all handled by subordinates.

13. March 28, 1933 The Indianapolis Times Indianapolis, IN
Article from The Indianapolis Times, March 28, 1933

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# BANK COVERUP # POLICY ENDED # BY ROOSEVELT President Demands Speedy Action on Financial Irregularities. HERALDS BIG SHAKEUP, Thorough Inquiry Forecast Into Prosecution Delay in Harriman Case. BY RAY TUCKER Times Special Writer WASHINGTON, March 28.-President Roosevelt holds that banking irregularities discovered by national examiners or conservators in charge of suspended institutions should be reported immediately to the proper federal authorities for prosecution. In announcing this policy on behalf of the administration, William H. Woodin, secretary of the treasury, said that "the President did not believe it to be incompatible with the best public interest, nor is it believed that taking prompt action in such matters work to the detriment of any sound banking institution." Fear of aggravating a disturbed banking situation is the explanation given by Hoover officials for non-action. Coverup Is Revealed The announcement was prompted by the disclosure that the treasury, comptroller, and department of justice under the Hoover regime had delayed for nine months prosecution of Joseph W. Harriman, former president of the closed Harriman National Bank and Trust Company of New York, for alleged falsification of accounts. He now is under indictment. Attorney-General Homer Cummings has held the delay was justified. The Hoover administration also took no action against Charles E. Mitchell, former president of the National City bank of New York, after he testified to income tax transactions which now are the basis of an indictment against him. It was not until the statute of limitations was within two weeks of operating to stop prosecution that this international financier was indicted, at the Roosevelt administration's prompting, for alleged failure to pay $573,000 in income taxes for 1929. May Bring Cleanup The Roosevelt policy may point to a great turnover of personnel in all these departments, including the bureau of internal revenue. Although higher-up holdovers from the Hoover administration probably will be replaced in any event, the White House dissatisfaction with the practices of delay and laxity may mean that attorneys; accountants, examiners, and others in actual charge of detailed work may be let out. The explanation by Hoover officials for their failure to act against Harriman is that news of indictment of such an important financial figure at the time further would have upset the banking world. It was on this plea that Acting Controller F. G. Awalt and department of justice representatives agreed to a delay, and restrained George Z. Medalie, United States attorney at New York, from going ahead. He acted within twenty-four hours after the Roosevelt administration notified him to prosecute. Both Cummings and Awalt since have declared that the delay was justified under the delicate condition of the New York banking situation. Inquiries Are Pushed Meanwhile, two investigations resulting from these and alleged treasury irregularities seem assured on Capitol Hill. Ferdinand Pecora, counsel for the senate banking and currency committee, may return here today after examination of New York records in the Harriman affair. He was requested to determine the need for an inquiry by Chairman Duncan U. Fletcher (Dem., Fla.) of the committee. Senator Burton K. Wheeler (Dem.. Mont.) has introduced a resolution for a justice department inquiry into charges that Andrew W. Mellon and Ogden L. Mills, who headed the treasury under the Hoover administration, illegally failed to collect hundreds of millions in taxes from foreign steamship companies. This allegation has been made by David A. Olson, former employe of the banking and currency committee, who also has brought suit other treasury and internal revenue against Messrs. Mellon, Mills and officials. Senator Wheeler also is planning to propose a senate investigation of the situation. Accuses Mellons Olson resigned as investigator for the committee last February, alleging that he had been blocked in his duties, and placing the responsibility upon Chairman Norbeck. His first suit accused Andrew W. Mellon, Ogden L. Mills, Arthur A. Ballantine, David H. Blair, and Alexander W. Gregg, all former treasury officials, with having permitted 120 foreign steamship companies to escape income tax payments of $100,000,000 and with having allowed them a refund of $10,000,000, contrary to law. Double damages were demanded, amounting to $220,000,000. The second action alleged that W. L. Mellon, nephew of former Secretary A. W. Mellon, and six associate executives of the Gulf Oil corporation, of Pittsburgh, had been enabled to escape payment of more than $5,000,000 in income taxes.

14. April 13, 1933 Springfield Weekly Republican Springfield, MA
Article from Springfield Weekly Republican, April 13, 1933

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Higher Prices Are Expected To Quash Inflation Talk Hope For Improvement in This Direction Seen in Roosevelt's Accomplishments and in Retailers' Depleted of Harriman National to Repay Depositors in Full Seen Indication Bankers Have Washed Hands But Are Back Again New York, April 11-Stocks and wheat opened higher and in the early trading ran into selling. This action the part of both markets was to on the liking professional traders working higher prices. What is not wanted by experienced traders (now long and and fresh selling after professional traders keeps sound. Professional traders taken the long side of wheat and the stock market partly on technical market conditions, that belief markets partly on the country's improved position under Roosevelt's leadership, Jargely in expectations inflation. The judges here are confident there is basis higher wheat price the improved position that commodity and that there of room for improvement stock prices, as occurred in the late and early last year the the change fundamentals from the Lausanne agreement. Some in general trade, confined followed There was little no provement then basic goods because the country suffering from debts in creating production Washington, that time, continuing policy refueing take the bull by the horns, partly because of the approaching election. Hoover, the early tumn, adopted the tactics trying frighten voters into believing that things would happen not reelected. Reasons Given The best market judges here feel there is hope for higher stock prices the ground already plus retail the trade ahead likely follow that the late sumand early months of last year; that will be confined largely goods; improvement in retail trade and in the stock market continue until, was the markets are again confronted this time the being the on credit connected relief work already proposed and financed. As the best market judges here see it. much of the inflation talk inasmuch the government debt now stands close to against the low 000,000,000 recent years and the government budget unbalanced. felt that have done making inflation but that no bond for further work one sort for the simple that the bonds not marketed credit the money could not be construcspent could be raised. The feeling that this not out of felt that for higher curity before the problem government again faced; that security prices will squash the talk needed question but that in his There no inaugural Roosevelt bankers the front door into middle of the car tracks. Yesterday's news that the Harriman National bank, which member the New York Clearing House association, with the help the Trust company was to depositors in full going understood by mean the the front that March Roosevelt beginning the back Today howrealized from the news from not warranted. It now point realized the just Secretary to the Woodin expects the York banks to make good their writpledges help the Harriman out these tional bank pledges being made at the written the controller of the currency time asked keep his hands off the riman bank until the other House members out Harriman plain now the the money off the in full expectWoodin to come from the New ed York Clearing house banks. In the Good Book there story effect build to the sand; that house withstand the strains pected serve the desired time purpose must be built BARNUM.

15. April 28, 1933 Times Union Brooklyn, NY
Article from Times Union, April 28, 1933

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HARRIMAN PROBE DELAYED TO SAVE OTHER BIG BANKS Senate Sub-Committee Told Why Justice Department Put Off Prosecution. Washington, April 28.-The Senate sub-Committee, investigating the delay in prosecution of Harriman Bank officials was told today that the Department of Justice thought the delay "might save the crash of half dozen big banks." William H. Ramsey, Department of Justice Attorney, testified that the department thought it was rendering "public service" by delaying the prosecution. "We knew this man (Chairman Joseph R. wasn't going to run away," he said, "and we thought we might save the crash of a half dozen banks. An Unusual Case "A great many people from all parts of the country were asking delay in bank cases so they might get on their feet and keep going." Under questioning by Senator Neely, Dem., W. Va., Ramsey said that, although delays were granted often, the Harriman case was "unusual." He denied that Harriman's prominence had anything to do with it. Frank M. Parrish, chief of the Criminal Division of the Department of Justice, since last February, testified that the Treasury Department had warned there would be a "run on the bank," If Harriman were arrested. Feared to Make Arrest Parrich, said that the Comptrollers office had "specifically approved the delay." Parrish asserted that another feature of the delay was attributed to a New York Clearing House plan represented to the department as being prepared 80 that Harriman Bank depositors would not suffer a loss. "The arrest of Harriman," he said the Clearing House warned, "would ruin the plan." Charging that apparent Justice Department "dilatoriness" in prosecution of the now closed Harriman National Bank of New York had resulted in substantial losses to investors, Senator Costigan, Dem., Col., today demanded a thorough investigation. "The whole episode," he said, appears to be tainted with official dilatoriness as a consequence of which substantial losses have been suffered by depositors. Presumably the creditors of that bank would have protected themselves if officials diligence had promptly and properly advised them of fraudulent bank practices officially known and long concealed before action was taken." The charges which led to the investigation were made by District Attorney Medalie of New York, shortly after the Roosevelt inauguration.

16. April 29, 1933 The Washington Herald Washington, DC
Article from The Washington Herald, April 29, 1933

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Harriman Depositors on NEW YORK, April itors of the Harriman National Bank and Trust Company will 50 cents on the dollar paid Monday or Tuesday, an attorney involved in negotiations between the Federal Government and the New York Clearing House Association said today. He added that the balance will be the expectation that full payment will follow. The 50 per cent payment, the said, will result from an Loan be approved the

17. May 4, 1933 Daily News New York, NY
Article from Daily News, May 4, 1933

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HINT CLEARING HOUSE SUIT TO PAY HARRIMAN (By United Press) Washington, D. C., May 3.-F. G. Awalt, Acting Controller of the Currency, today told a Senate com- mittee that the Federal Conservator of the closed Harriman National Bank might have to sue the New York Clearing House Association to compel that organization to comply with a pledge to protect Harriman depositors 100 per cent. against losses. Carl C. Francis, national bank examiner, previously had estimated that the bank could pay off at approximately 65 cents on the dollar. Offer Caused Delay. Awalt told the committee that the Treasury and Justice Departments delayed prosecution of J. W. Harriman for alleged defalcations because, with the assurance of the Clearing House that depositors would be protected, it was thought better not to start a run on the bank. L. K. Roberts, chief bank examiner of New York who testified before Awalt, denied a charge made by Senator Neely (Dem., W. Va.), that "the Government and the Clearing House combined to protect the thieves of the Harriman bank at the expense of the depositors." The charge as "delightfully in- (Continued on page 7. col. 2)

18. May 12, 1933 The Indianapolis Star Indianapolis, IN
Article from The Indianapolis Star, May 12, 1933

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Adams. an architect, and Nathan Wallace fur dealer Steuer Examines Venire. Max D. Steuer, grizzled veteran of many a celebrated criminal trial, examined the veniremen for the defense Steuer used seven of the ten peremptory challenges allowed him and United States Attorney George Medalie conducting the prosecution himself, exhausted all six of Mitchell's extensive business and social connections caused Medalie to exercise extreme care in accepting the talesmen. He read long list of exclusive clubs and asked if any were members he mentioned several utility and sugar companies. the National City bank and the Federal reserve bank and asked if the talesmen or any members of their families were connected with them and he went through similar process with the lawyers associated with the defense. Suspicious of Steuer John Barry, one of those ques. tioned. said he thought the presence of Steuer indicated 'something particularly difficult about the case "Do you mean that you think Mr Steuer would not have been brought into the case unless there was something wrong with the defendant? Medalie inquired Barry nodded, and was dismissed The taking of testimony probably will start Monday after selection of alternate jurors DIRECTORS SYNDICATE LISTED. WASHINGTON, May 11.-(P)Henry E. Cooper, conservator of the Harriman National Bank and Trust Company in New York, today submitted to Senate investigating committee the names of twenty-seven participants in the "directors" syndicate" through which officials of the bank dealt in its stock According Cooper's testimony some of the money which it is charged was misappropriated, was used to cover illegal loans to this syndicate Cooper said members of the syndi- cate, in addition to Harriman, who served as were Philip Ruxton, Walter W. Price, J. W E. K. Taylor Frank H Fayant Howard W. Charles, Abram L. Leeds, E. H. H. Simmons, Winfield R Sheehan, Michael W Rayens, William A. Greer, Bertram L. Kraus, W. A. Buj, John A. Noble, Franklin Q Brown J. Barstow Smull, Parmely W. Herrick, Amos Sulka, Boykin C. Wright, Edward R. West, George M Gales, John A. Harriss, Lichtenstein Marshall Sheppey and Harrison K. Bird.

19. June 17, 1933 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, June 17, 1933

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Senate to Probe Down the Line (Continued from Page 1.) Three senators are engaged in inquiries prelimnary to a full ress investigation of interstate ackets, including the most recent f those developed by the underyorld-the "snatch," which means he busines of kidnaping men, wohen or children for ransom. Senator Copeland, dem, N. Y., is hairman of the racket investigaion. Copeland will obtain preIminary information in his own ity. New York. "We must determine first the nature of the interstate racket inustry," Copeland told the United Press. Senate investigation of the Har. iman National Bank failure will we resumed in New York June 26. The inquiry, suggested by Ferdiand Pecora, counsel in the sento stock market investigation. is directed toward discovering why nany months elapsed between disovery of alleged irregularities, and he closing of the bank and filing of charges against J. W. Harriman, ormer president and later chairnan of the board of the bank. Senators Black, dem, Ala, and are ocean early McKellar, inquiry dem, into Tenn, planning and air mail contracts. McKellar describes he air mail subsidies as tainted with corruption. A special senate committee has been summoned to meet Monday to prepare for resumption of the inestigation of the qualifications of Senator Overton, dem, La, to be a United States senator. This inuiry is considered to be directed at Senator Long. dem, La, whose proudest boast is that he is the DOSS of his state. Long appeared as counsel for Overton at hearconducted in Louisiana. The ngs charge against Overton is that he participated in a corrupt election. house has The. authorized receiverships judiciary inquiry with into committee special bankto reference ruptcy York. There have Chicago been many and com- New plaints against the "monopoly" of receiverships enjoyed by the Irving Trust company. of New York. House investigation also is proposed into the judicial conduct of Federal Judge Lowell of Boston. who recently refused to extradite to Virginia a negro charged with murder. Judge Lowell ruled that the negro would not receive a fair trial in Virginia because his race was ;barred from jury duty. His decision was reversed yesterday on appeal.

20. June 27, 1933 The Washington Herald Washington, DC
Article from The Washington Herald, June 27, 1933

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Menaces Neely Dodds Bank Probe Senator Near Fist Fight With Former Prosecutor at Harriman Quiz By THOMAS WRIGLEY NEW June 26 (U.S.). Senator Neely of West Virand Nugent Dodds, former ginia, Assistant Attorney General, all but came to blows in redhot row here today at the Senate Judiciary Committee hearing of the Harriman National Bank crash. Only the diplomatic handling the tense situation by Senator Ashurst of Arizona, cháirman the subcommittee, prevented fight. The clash came after the witness had assumed entire responsibility for delay the criminal prosecution of W. Harriman others for alleged irregularities in the fairs of the bank. SENATOR SEIZES Dodds, goaded to the breaking point Senator Neely's rapierpoint questions accused Neely uttering falsehood. fighting Neely seized heavy metal water jug. Dodds was angry his filled with tears. Chairman Ashurst placed restraining hand Neely's grasp of the and softly said: "Don't do Dodds had made some rather blistering before clash He had declared that came. "bank as such, national bank examiners misnomer, superficial formality. He also charged that many Members of Congress had requested delay bank examination proceedings. Dodds continued his revelation: think have lot learn in the Senate about the and about the prosecution of bankers." Neely then shouted: have admitted white washing and covering the est Dodds broke in and yelled: here say the Senator stating deliberate mistruth." It was at this point that Neely seized the water jug. Dodds, soon he completed his walked to Neely and apologized, and they shook hands. In earlier statements Dodds clared had known of the dition Bank back as 1932. In that said Henry E. Cooper, the Elton Bisbee, attorney for the Clearing House Association, had called Washington. Dodds said they told him that the Harriman Bank was in bad condition but that they were workto improve and that Harriman evidently had made false entries. They also said, Dodds declared, that run the Harriman Bank would endanger six other New York banks and create serious situation.

21. December 28, 1933 Evening Star Washington, DC
Article from Evening Star, December 28, 1933

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20 GOTHAM BANKS BY S. FOR U. SUED HARRIMAN VICTIMS $9,275,000 Sought Written for 11,000 Depositors on Clearing House Pledge. I ACCUSED GROUP DENIES OBLIGATION NOW LEGAL Says It Was Made During Crisis Without Due Study-Case Unusual. Associated Press. 28 -The FedBy the YORK, December filed suit against NEW Government has York Clearing eral banks of the New individuals who the 20 Association and House CommitHouse on the Clearing years to compel tee during to depositors payment in National Trust served /closed Harriman the full last two Bank of Clear- the & Co. Government contends behalf the of all of The in guarantees ing banks, House gave written late in 1932 and arthe payment of deposits the committee curearly in with 1933, the when controller Harriman of the Bank ranged close all. trency 1est it precipitate failed a to Harriman not Bank to March. the crisis open after the Approximate- for The the holiday last depositors were bank claims of the F. C. loan, ly half in the July through an sum R. of $9,275.- deand paid it is estimated required the to pay all would be interest. positors 000 in full Obligation with Denied. to have Legal understoguarantees extaken The the banks positio "in are a crisis that of and the the without technical given not now constitu Government were tended formalities consideration a legal the in and State its do complaint Supreme Clearfiled The yesterday, asks the banks that of they the made Court House to compel to recognize to protect Bank, the and deing a binding of agreement the it. The thereafter positors Government' breached and suit was said to be assert without The controller precedent. the bank and Roosevelt's closed, 1 receiver in accord- proclathat when with President the bank holiday, there ance inaugurating to reopen, 11,000 in mation and were subsequently more than excess failed of $24,670,000 M deposit the assets accounts were full, the exceeded insufficient bank, totaling and in that, to pay while depositors not have surplus in of deficiency would of the "the any a of small the the defendant fraction bank closed its banks. affairs a long Joseph has Federal re- W. Murray on investigation sulted Since in the former into indictment president and Albert of and chairHarriman. of the board, vice president. Harricharges Austin. man of former falsifying of the accounts. bank. entries was also inmonies Indicted man, founder $1,661,170 for raking of depositors falsetters Soon. Hearing Harriman is determine On January 5 Court to appear there if he is volving Harriman Federal to have a physically in able which, to in turn, he hearing for a sanity to hearing determine indictments. whether will be held trial on the says that persuade must The filing stand New the York suit Times the months overnment to carry had fore for nine banks to take 20 clearing agreement attempted the their alleged house eminent to councare out of the depositors advised by to rest on The banks. Times says, that the alleged crisis sel. expressed the position been made came consideration "in a of agreement and the without technical had extended formalities after the involved. crisis not the to When the re-examined was found which the of asserted agreement legal obligation the extent constitute. banks could a stockholders' to money. spending Reopening their Held Possible. Bank failure of the Harriman national moraThe reopen last after March the was declared to be "a in consequence torium the to Government's of of the the complaint failure Clearing and advanc- refusal House of the banks their of agreement or against by merger defunds on by with another Bank various positors ing to perform Harriman claims, collateral bank effecting or by a of the means. Clearing lawful House and practical ment preliminary to says, the other discussions newspaper banks indicated filing 15 In of the of the the a 20 willingness suit. arbitration Clearing the to House which accept but had five the been results negotiated of an a court for determination. months. insisted ORGENTHAUS on GIVES O. K.

22. March 6, 1934 Albuquerque Journal Albuquerque, NM
Article from Albuquerque Journal, March 6, 1934

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Boy Plunger" of Wall Street Broke; Livermore Liabilities Are Placed at Over 2 Million NEW YORK, March trader. filed voluntary petition for bankruptcy Monday He listed liabilities of and including life insurance at its face value. The petition also revealed tested breach promise action for had filed against Livermore by Naida L. Krasnova. known Wall street as plunger" piled fortunes only them. in his widespread and grains. Unpaid federal income taxes for totaling and penalties are included in liabilities There for Harriman National Bank and Trust company, which is hands of conservator. Notes E. Hutton, New York broker and of contract brought by flight proamong other scheduled Once in Livermore Continued on Page Two

23. March 13, 1934 The Waterbury Democrat Waterbury, CT
Article from The Waterbury Democrat, March 13, 1934

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Joseph W. Harriman of New York's Harriman National Bank was one of the first bankers arrested. The warrant was served as he lay ill at home. Here he is shown being carried to arraignment later on a stretcher. Twenty-eighth Day-March 13 By WILLIS THORNTON (Democrat-NEA Service Staff Correspondent) ANKS throughout the country began to open, and the B clouds which had hung over the country for weeks seemeo td lift a little as each of the 12 Federal Reserve cities arranged for some banks to open under license. With income tax day only two days away, people were perturbed about paying, because of a treasury announcement that Uncle Sam would expect his money, closed banks or no closed banks. Several cities, watching the growing distribution of the new Federal Reserve bank notes, announced that they were burning the scrip they hastily had printed. In many cases, deposits in reopening banks actually exceeded withdrawals. Panic was being allayed. PRESIDENT ROOSEVELT sent his beer message to congress, short, pithy, and to the point, asking amendment of the Volstead act to permit beer-making under an adequate tax system. A conservator was appointed for New York's Harriman National Bank and Trust company (first of many) and its president, Joseph W. Harriman, was arrested on a federal warrant charging falsification of books. He resigned from the bank, and later was indicted. The dollar actually gained in the foreign exchange markets abroad. While it later was to be depressed as a deliberate policy, at this time it felt good to know that there was confidence abroad in the future of the money we had been tempted to doubt ourselves for the first time in our lives. NEXT: House passes beer bill.

24. May 30, 1934 Daily News New York, NY
Article from Daily News, May 30, 1934

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Witness Bares Wash Deal in Harriman Case By NORMA ABRAMS. An arrangement whereby unlimited renewals upon a $75,000 loan were promised to Sidney Bernheim, vice president of a mortgage company, in exchange for his part in a wash deal involving $300,000 with Joseph W. Harriman, president of the defunct Harriman National Bank, was revealed in Federal Court yesterday. Bernheim, called as one of the final witnesses in the Government's trial of the aged banker and Albert M. Austin, former executive vice president of the bank, for alleged misuse of funds, testified to the deal upon which part of the indietment is based. Signed Note As Favor. As a favor to Harriman, Bernheim said that in 1931 he had agreed to sign a note for $300,000, the money to be used to purchase Harriman National Bank stock and the interest to be paid by the banker. In return he was promised, he said, that he would be granted renewals of his own $75,000 note then due and that the interest upon that sum would be carried for him. Bernheim said he explained at the time that he was financially unable to undertake such an obligation in his own interests. On cross-examination George H. Leisure, attorney for Harriman, forced the witness to admit that financial statements of his company at that date issued to prospective buyers showed adequate financial reserve. Bernheim also admitted that his testimony constituted his defense to two civil suits brought by the bank's receivers to recover the face value of the two notes. Turned Over $200,000. William A. Burke, former vice president, recalled by Assistant United States Attorney Jacob Rosenblum, told Federal Judge Knox and the jury that the $300,000 reeeived from the Bernheim note had been received by him and $200,000 of the sum was turned over to Harriman & Co. against the banker's personal account. The remaining $100,000, he said, was credited to the bank's bond department.

25. July 19, 1934 The Herald Statesman Yonkers, NY
Article from The Herald Statesman, July 19, 1934

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Couple Sued On Bank Debt Receiver Asks $10,000 From Yonkers Residents Two Yonkers residents are named defendants in suit filed yesterday in the United States District Court in New York City in behalf of Frederick V. Goess as receiver for the Harriman National Bank and Trust Company of New York City. The suit alleges that Alfred I. Smith and this wife, Mrs. Sophie E. Smith, both of 90 Rockland Avenue, Park Hill, are indebted to the bank for the sum of $10,000. Mr. Goess alleges that the defendants gave bond to the bank on Nov. 22. 1930, the indebtedness. Judgment in the full amount is together with interest at six per cent from the 1930 date, and the costs and disbursements of the action.