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

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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

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HARRIMAN BANK REMAINS CLOSED

Conservator Present to Manage Affairs of New York House

The Associated Press) NEW YORK, March Harriman National Bank did today when at the stated take charge of the affairs. conservator charge banks Immediunder plan announced by President Rooseemerpassed ConThe National Bank member New ClearHouse and its latest Clearing House showed capital $2,000,000; and undivided profits, $941,$19,577.today that the private Harriman Company, which with the HarriNational Bank, was opening business usual today.

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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.

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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.

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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

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Committee Head Investigates Delay

NEW YORK, March 24 (P)-Ferdinand counsel to the investigating ket practices, conferred today in United States Attorney George Medalie and announced afterward he expected to determine shortly wheth er three delay in the of Joseph W Harriman be came within the scope of the com mittee's inquiry Harriman was arrested last week charged with making false entries in of the Harriman National Bank and he then resigned The bank failed to open after the of recent and was placed the hands of Henry E. Cooper, its presias Daniel W. Blumenthal a lawyer to said he had been investigating the bank's affairs at the request 'substantial depositors, issued statement today calling for coopera tion with Cooper and saying he was "in position state that excellent prospect of the bank being taken its entirety by a strong

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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

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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

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Feared Bank Run From Harriman Prosecution, Says Awalt.

WASHINGTON, March 25 (AP).—F. G. Awalt, acting comptroller of the currency, said Friday a bank examiner spent five months attempting to straighten out the affairs of the Harriman National Bank & Trust company of New York before alleged irregularities were turned over to the Department of Justice for prosecution.

This delay between the time the examiner discovered the bank's condition and the presentation of the evidence to the prosecuting authorities, and another delay of several months at the Justice department have been the subject of criticism from Capitol hill. Last week Joseph W. Harriman, head of the bank, was arrested on a charge of embezzlement, nearly eight months after the examiner first reported to Washington.

Throughout this period, the comptroller pointed out, the officials were acting on the premise that grand jury proceedings and accompanying publicity would start a run on the Harriman bank.

PECORA AND MEDALIE CONFER NEW YORK, March 25 (AP).—Ferdinand Pecora, counsel to the Senate committee investigating stock market practices, conferred Friday with United States Attorney George Z. Medalie and announced afterwards he expected to determine shortly whether the three months' delay in the prosecution of Joseph W. Harriman came within the scope of the committee's inquiry.

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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.

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Harriman Is Unable To Appear at Hearing On Federal Warrant New York, March seph W. Harriman, former chairman of the Harriman National Bank and Trust Co., was unable to be present at scheduled hearing before a United States commissioner today on a warrant charging him with causing false entries to be made in bank books. The hearing was postponed without date. Harriman was reported to be suffering from hardening of the main artery He was arrested in his bedroom two weeks ago after the bank he headed was placed in the hands a conservator. He has since resigned his position with the bank. which he founded.

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HARRIMAN PLEADS

NEW YORK, April (LP) Juseph W. Harriman rose from a wheel chair in federal court today and pleaded not guilty to charges of making false entries in the records of the closed Harriman Na. tional Bank & Trust Co., of which he was chairman of the board. Trial was set for April 24.

For real estate bargains consult The Times Classified Page.

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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.

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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

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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-

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HARRIMAN BANK GETS $700,000,000 LOAN

R.F.C. Grants New York Institution Large Amount of Cash

By United Press WASHINGTON, June 17.—A loan of approximately $7,000,000 to the Harriman National Bank and Trust Co. of New York by the Reconstruction Finance Corp., has been approved by directors of the financing agency, it was learned today.

The loan will permit 50 per cent payment to depositors of the bank.

A settlement of the other 50 per cent of depositors' claims will be made when federal authorities determine the liability of the New York clearing house association in connection with the bank's membership in that body.

TO DEDICATE CHURCH WACO, June 17.—Official opening of the new fireproof Tabernacle Baptist congregation church will be held at 9:30 a. m., July 2. The auditorium will be presented to the city for a municipal auditorium. Acceptance will be made by Mayor G. H. Zimmerman.

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TRIAL OF HARRIMAN TO START TOMORROW

Former Banker Who Tried Suicide To Be in Court Room

By The United Press

NEW YORK, July 5—Joseph W. Harriman, former chairman of Harriman National Bank and Trust Company, will go on trial in Federal Court tomorrow, charged with making false entries in his bank's books.

Mr. Harriman, who disappeared from a nursing home and tried to commit suicide by stabbing himself, will be in court.

A Senate subcommittee has been investigating the Harriman case. It was charged that government officials withheld an investigation until the institution had collapsed.

Mr. Harriman's counsel asked last week for a year's postponement of the trial, but the request was refused.

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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

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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.

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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.