Evening Star Newspaper, March 31, 1933, Page 4

RGHNOND COURT WONT CL0SE BANK Jurist Vacates Order Naming Receiver for $19,000,000 Institution. By the Associated Press. RICHMOND, Va., March 31.—A court order throwing the $19,000,000 American | Bank and Trust Co. of Richmond into receivership was vacated by Judge Julien Gunn in City Circuit Court last night, after a hearing in which the city of Richmond, officials of the bank | and the Richmond Clearing House As- sociation protested the order. A motion in behalf of J. A. Salle, ir, & ‘depositor, for appointment of re-| ceivers, was continued by Judge Gunn | until 10 o'clock Tuesday morning. | Earlier yesterday Judge Gunn granted the petition that receivers be appointed and had named T. Kearney Vertner. banker, and Sherlock Bronson, attor- ney, to act as recetvers. Questions Soundness. Salle in his petition asserted that the | bank could not discharge “all its ob- ligations to depositors even if it secured & Federal loan, ‘The city of Richmond, with $551,000 deposited in the bank, which has been closed since the national bank holiday was declared. asserted in a petition that receivership would “result disastrously to the interests of thé petitioner and to the citizens thereof, respectively.” Similarly the Clearing House Associa- tion urged a vacating of the receiver- ship in the best interests of depositors, creditor: nd others, pending negotia- tions looking to reorganization of the! institution. Counsel for the bank argued that a receivership would penalize citigens who had deposited $500,000 in special trust accounts since . the bank - was closed. This view was shared by Max- well Wallace, counsel for the. Federal Reserve Bank of Richmond, . Charges Loss of Assets. One of Salle’s allegations was that two loans contracted by the bank caused it to lose control of approximately $8,- 200,000 of its prime assets. Counsel for the bank told Judge Gunn that it would not accept any R. F. C. loans without the court’s permission. .Salle’s counsel had claimed that to accept a loan now for reorganization purposes would strip the.bank of $4,000,000 as- sets and Jeave depositors unprotected. Lewis F. Williams, counsel for the bank, told the court “We think the| h’axl?]k can wecrk out the situation all right.” DETROIT BANK BOOMS. 3,053 Accounts Operled" As $25,310,356 Is Placad on Deposit. | further explained their refusal to allow | Twin Brothers Wed Twin Sisters Upon By the Assoclated Press. | NEW YORK. March 21.—When | | Ruurd Broorsna, dairy farmer from Artesia, Calif., went back to | | Holland several months ago to marry, his twin brother, Herke, went along. Ruurd was affianced to Grictje | | Dejong. When Herke saw Grietje's | | twin sister, Klasske, he decided it Visit to Holland ,IS |. AIDMANKERS | Senator SHIRKING OF DUTIES| | George Declares | Financial Houses Must Supply Credit. should be a double wedding. It was, | The honeymooners landed in | | New York on the liner Veendam Wednesday and set out for their i California dairy farm by auto- mobile. | REGULATION HOLDS DEPOSITS IN BANKS Special Order From Con-| troller Required to Per- | ! mit Withdrawals. I | In answer to a continued flood of in- | quirdes to closed loeal banks concerning | the possibility of withdrawals under | the much discussed regulation 30 issued | recently by the Secretary of the Treas- | ury, conservaters of these banks todn}'} rawals by pointing to official word reczived today from the Federal Re- | cerve Bank at Richmond. P The official copy of this regulation was received by all local banks, mem- bers ‘of the Federal Reserve System, in the hands of conservators. Up to Controller. It was pointed out by conservators that this regulation provides for such “limited banking functions as may be authorized in acordance with law by the controller of the currency in the case of national banks, or by the ap- propriate State officials in the case of State member .banks.” In _the District, it was explained. the controller of the currency by special _ legislation has authority over All banks and banking _institutions. Thirteen local banks which did not reopen are still in the hands of con- servators, and have not yet been granted | specific authority by the controller. | Such specific permission would have to | be granted before the conservators could | act, even under regulation 30, they point | out, to receive or pay out deposits other | than special trust fund deposits. These explanations were made by | representative conservators today in | view .of the fact that inquiries and DETROIT, March 31 (®).—In less | telephone calls continued to flood the | than a week. Detrolters have deposited [ banks to know why accounts are not 25,310,356 in their new bank, the 100 | yet open to withdrawals. per cent liquid Natiohal Bank of De- troit. Bank officials, in making the list of accounts public, expressed amazement at the rapid response of the city to new, benking facilities, and evidenced 10 | dividend cheoks to° Abest 200 messors little pride in their own achlevement— | Who did not get their dividends in the 1 of providing & $25,000,000 bank within & few days. Last force of employes were ordered the quarters of the new bank in the | ment now will get another. First National Bank-Detroit Building. On the first day more than $10,000,~ 000 was deposited. General Motors de- posited $1,000,000; Chrysler Corporation placed the largest deposit, $4,000,000, and the Ford Motor Co. added:$1,000,- 000. Since then daily additions of from 400 to 600 new commercial ac- counts have been entered, until the total grew today to 3,053 accounts. BANKS OMIT DIVIDENDS.. Clevelard Institutions Act to Conserve AH Their Assets. LEVELAND, March 31 (#).—Two |émployed at Charleston has been pro- ]1cSnsed Cleveland banks announced | jected by the Relief Committee. omission .of ir dividends, due today. tdent of the Cleve- | Ing attended by 500 jobless men. Each T Pla the action was be- | Was asked to indicate his favorite sports lieved by officers and directors to be | 8nd hobbies. the “prudent course to conserve all of the bank's assets until it becomes pos- sible to estimate future developments more clearly.” Thursday & hutfls'-s‘thn‘;t'g “supplementary = dividend” does not | Bank Pays 30 Per Cent. { In the meantime the Departmental | Bank, which is in the hands of a re- ceiver, this morning began paying out t. As explained by W. | original paymen B. Allman, recelver of the bank, this | mean that persons receiving one pay- | The Departmental Bank will be open until 10 o'clock tonight for the con- venience of persons who found it im-, possible to get to the bank during | regular - office hours during the day. The dividend checks are based on pay- | ments o{,f 30 per cent of deposits. FREE $PORTS PROPOSED CHARLESTON, 8. C. (#).—A pro- am of free fishing and boating_ trips, ase ball games and checker and horse- shoe pitching tournaments for the un- Plans were outlined at a mass meet- e RN AT TR Whaling Industry Revived. JUNEAU, Alaska (#).—After a year of The Central United, in a statement, | idleness the whaling industry was re- | said its dividend was omitted despite “substantial earnings for the first quar- ter of 1933, because of a “desire to vived in Alaska in 1933 and '767.262; gallons of ofl were shipped from the | territory. It had a value of $115747. | conserve earnings and build up re- | Whale fertilizer produced was worth serves during the present period of | $26,808. National economic reconstruction.” FULL PAYMENTS ASSURED. Depositors in Harriman National Bank Expect Official Announcement. NEW YORK, March 31 (#).—Jacques Braunstein, chairman of a Depositors’ Protective Committee of the Harriman National Bank & Trust Co., which is in the hands of a conservator, said last night assurances have been given that depositors will be paid in full. He and William F. Walsh, counsel to the committee, returned last night from Washington, where they conferred with Attorney General Cummings. They said they expect an official announce- ment within a few days guaranteeing the deposits. On the basis of the information they obtained in Washington they said no legal steps were contemplated by the committee. A meeting which had been scheduled for last night was canceled. Meanwhile a Federal grand jury was understood to have virtually completed its inquiry into charges of misuse of funds against Joseph W. Harriman, re- signed chairman of the bank, who is under arrest. SALES TAX BILL KILLED ‘Alabama, However, Passes Muscle Shoals Utility Measure. MONTGOMERY, Ala, March 31 (#). —The Alabama Legislature yesterday killed general sales tax bill and passed the Carmichael bill to allow cities, coun- ties and towns to connect with Muscle Shoals for power to operate municipally- owned light and power plants. The sales tax bill, to levy a 5 per cent | form of eredit and some form of serv- | 'EVIDENCE DISPUTED lof the statement began. By the Associated Press. American bankers are charged by Senator Walter F. George, Democrat, of | Georgia, with shirking their responsi- | biiily, and warned by him that unless they functioned, the peopic would make | he Government provide a banking| tem. eorge contended to the Senate yes- | terday that by their “philosophy,” of not investing unless a absolutely profitable in the bankers werc preventing dollars from going to work to help offset the emergenc i “I think,” he said, “that there will be no real return to a normal prosper- ous condition in the United States un- til we somehow find a banker who has | the sense to sce that the character of | the merehant, the character of H small manufacturer, the character of | the professional man is yet good secur- ity if banking is to be carried on in a sensible, normal way.” Criticized Those in Control. His criticism, made in debating the | $500,000,000 administration unemploy- | ment relief hill, was explained by him! as not directed at all bankers, but| “those bankers who control our system very. largely.” “How will enterprise become profit- able unless the bankers heip to make it ‘profitable?” George continued. “D he not cwe some obuigaticn to the bu: ness of this country? Is there not so nsibility on the American banker? “Every privilege,” George said, had ! been extended to the bankers by the Government, adding: “We have granted almost any power that scemed to be reasonable and de- fensible in an effort to help the banks in this emergency. Are they open for the single purpose of drawing through the pipelines we have constructed the balance of the money of the American taxpayers or are they open to meet the legitimate and conservative de- mands of honest - and courageous Americans? People Demand Credit. “If the banking system which we have built up does not understand and | appreciate the necessity of furnishing credit where credit may be legitimately extended and upon security which is safe * * ¢ whatever may be said about a unified system of benking, our banks must be prepared to accept the decision cf the American people to have some ice. “The Government will go further and further into business. We may regret | it, we may all deplore it, but never- | theless we will not escape it.” IN PLANE SLAYING Counsel for Youth, 17, Oppose Ad- mission of Yurported Statement on Theft Plot. By the Associated Press. ' BROWNSVILLE, Tex., March 31— A legal dispute over the admissibility of a statement Earl Dodson allegedly made to cfficers concerning the aerial slaying of Lehman Nelson, Harlingen flying ~ instructor, developed yesterday at his trial on a murder charge grow- ing out of the shooting. Police quoted Dodson as saying he and Eric McCall, 21, a student fiyer who committed suicide after landing the air- plane in which Nelson was shot, had censpired to steal the ship for a flight to Yucatan. Defense counsel said the 17-year-old defendant, had been promised “favors.” J. A. Goolsby, San Benito chief of police, testified that the day before the state- ment was made, he told Dodson he would “do him any favors he could, if he (Dodson) would tell the truth.” All officers involved denied that any promises or threats were made to_ the youth at the time the statement, which was offered in evidence, was taken. Court was recessed until today shortly after the argument over the admission OMORROW at HIS couldn’t have hap- pened during a normal season. fUnder ordinary conditions, by this time, everything but our new Spring stocks would have been gone and forgotten. ..and the lowest-priced Hart Schaff- ner & Marx or Raleigh clothes in our store today would be $25. fBut how were we to know about bank holidays and all the other emergencies that arose to keep business at a standstill? fNaturally we were caught short. Our Spring clothes were already in our store. . .. There wasn't a thing we could do. True, we could put these Suits and Topcoats right into our Spring stocks at regular prices, and you'd never know the dif- ference. But that isn’t our policy. fRight now our new Spring merchandise is clamoring for room. . . . So, until Saturday, 6 P.M., you can buy fine Hart Schaffner & Marx and Raleigh Suits and Topcoats at the low- est prices in our history. ... values perhaps never to be du- plicated again. . . . Remember, woolen prices have gone up since this sale started ... and we repeat: $25is the lowest price in our store for a new Spring Hart Schaffner & Marx or Raleigh suit or topcoat. fiOver 600 garments still in the sale. . .. Every model, fabric and pattern is desirable. . . . Every man and young’ man can be fitted. . . . We're going to be mobbed . . . no doubt about that + .. so get in early for best selection!™ 6 P.M. this record-bredking W sale ends at Washington’s Finest Men’s Wear Stora! LAST Originally $35, $31 and $25 NO CHARGE FOR ALTERATIONS AYoe HART SCHAFFNER & MARX and RALEIGH SUITS AND TOPCOATS LAST DAY! $40, $38 AND §35 SUITS AND TOPCOATS $21-85 $50, $45 and $40 SUITS AND TOPCOATS $26-85 $60, §55 and $50 SUITS AND TOPCOATS $31.85 USE YOUR CHARGE ACCOUNT HERE, OR OPEN ONE NOW UTAHANS HONOR DERN Becretary and Wife Will Be State Society Reception Guests. Secretary of War George H. Dern and Mrs. Dern, together with the con- gressional delegation from Utah, will be guests of the Utah State Society at a reception and dance tomorrow night in the Carlton Hotel. Guests of honor include Senator and Mrs. Willlam H. Eing, Senator and Mrs. Elbert D. Thomas, Representative and Mrs. Abe Murdock and Representa- tive and Mrs. J, Will Robinson. ¥t = RALEIGH HABERDASHER hold services tonight at the synagogue " 1310 F Street Pay in 30 days, or use our Extended Payment Plan, 4 months to pay, no down payment, no interest charge. motion to reconsider. brim KNOX thoroughbred with a smart wide tax on &l retafl sales, was killed when Supporters of the Carmichael utility bill said the bill was “designed to en- binding which gives the brim a much deeper ac- cent over the eyes . .Ths new style has met with the House refused to reconsider a pre- I . vious vote by which a motion to take I by the Sponsors Of Hat Trends the measure from the adverse calendar had failed. The vote was tied at 50 to 50 on the K able Alabama to take advantage of the huge development_program for Muscle b ’ Shoels as outlined by President Roose- N example of fine quality and handsome e A styling. . .aensibly priced:..A:" new, snap universal acceptance by collegians. Other Knox Hats, $7, $10, $20 © CHARGE ACCOUNTS INVITED ¢ FREE PARKING at CAPITOL GARAGE while shopping: here—CURB SERVICE in front of our store ® LEIGH HABERDASHER 1310 F Street Sixth and I streets. Addresses will made by Leopold V.A!l'reudber: and