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RUN ON BANK BRINGS CLOSE TEMPORARILY (Continued from Page One) ed States, closed in New York was al state institution, Rep. MeFadden, (R), of Pennsylvania, chairman of the house banking committee, today said that under 4 law passed in 1926 no state bank or trust company can use the words federal or United States in its name. The law, however, was not made retroactive and the Bank of United States continued to use its name.
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OF IS CLOSED Action Follows a Flurry of Withdrawals and Conference of Bankers SMALL INSTITUTION Financiers Feared Misleading Name Would Lead to Public Nervousness NEW stating that the institution was in the hands of the State bankwere posted at office several branches of Bank of United the city's smaller newer the banking regular opening time this morn- This action was taken after flurry late yesterday, and series leading bankers lasting into morning the York Federal Reserve bank. The bank no nection with the Government, spite its name, but because of
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RUN CLOSES BANK NEW YORK Dec. 11.-(UP)The state superintendent of banks Joseph A. Broderick today took possession of the Bank of United States, an institution which had deposits of $202,972,000. There are 59 branches in New York city. Heavy withdrawals were reported last night at thirteen branches in the Bronx and Brooklyn
FALSE REPORTS Caused Bank Failure, Is Statement Of Federal Reserve With Regard To Run On Bank Of United States December 31 met the for the is the as in week 13 the ripto This the closing of of almost by from of heavily to be for prepared the service which Federal to render. The curdue in apprehension paralleled several
BOND HOUSE SUSPENDS. New York, December 31-(AP)The Equitable Casualty & Surety Co., with connections in 31 states. was placed in the hands of the State Insurance Department by Court order today. Thomas F. Behan, Acting Su perintendent of Insurance, stated that the $650,000 capital stock of the company had been impaired to the extent of $588,836.31 Company officials disputed the figures, but ad mitted the surplus had been wiped out. Harold Speilberg, Chairman of the company's executive and finance department, attributed the company's difficulties mainly to failure of the Bank of United States, in which it had large holdings.
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# Red Sparks By JORGE # Junior's Education Junior: Who's Henry Epstein, pa?-Pa: I don't know. Why? Junior: I see the N. Y. Times says he has been appointed First Assistant Attorney General of the State of New York.-Pa: Well, what of it? Junior: Nothin', pa. But, pa, ain't the Attorney General supposed to prosecute any crooks that took the money of small depositors in banks they run?-Pa: Sure. But what's that to do with Epstein? Junior: Nothin', pa. But ain't there a lawyer by the name of Max D. Steuer who is attorney for some depositors in the Bank of United States?-Pa: Yep, and he's making a big row. Says that millions of dollars are missing. Junior: Uh nun. But, pa. How does it happen that this lawyer Steuer is attorney for depositors who lost their money in one Tammany bank, and is also attorney for the former State Superintendent of Banks who got bribed to allow the swindle of depositors in another Tammany bank?-Pa: H-m-m. Seems a little queer. But lawyers take cases of anybody who pays them for it. But what's that go to do with the Epstein chap? Junior: Nothin', pa. But I was just wonderin', 'cause I see that this Epstein is the son-in-law of Steuer. Do you suppose that Tammany has appointed Steuer's son-in-law to prosecute crooked Tammany bankers that Steuer is defending?-Pa: What? You repeating Red Rumors! Never let me hear you impugning the uprightness of leading citizens again! Nor the scrupulous honesty of bankers and banking superintendents!
WIFE BEAT RUN ON BANK Wife of Investigator Into Bank of Got Hers. By The NEW YORK Steuer investigator the affairs and management of the Bank of United States. it became known that his Mrs. Bertha Steuer, had on the last day the bank was of on credit to account when the bank opened for business that December 10 Almost $34,000 was paid to Mrs. by bank its main after this closed its doors at 3 against the line of depositors the
DIRECTOR ARRESTED NEW YORK Brownstone director and ber of the executive of the closed Bank of United Monday when he to at an tion affairs wheth he had personal brokerage on margin declared that "a personal question he owed $650 to the bank and 00 to two of its bankrupt
of Indorse Rosoff Plan The devised by Samuel plan Rosoff wealthy subway contractor, the closed Bank of reorganize United States under new possibly the Depositors Bank, and with entire personnel of an officers and received the unanimous approval last night of group of branch managers and the 59 units chairmen the institution. The meeting was the Hotel Astor Manhattan. The so-called Rosoff mitted earlier the day Joseph the New York Clearing House Association and Federal Reserve received the proval group managers after session which developed sharp clashes opinion and the injection personalities. Plans Provisions The Rosoff plan, which will to Broderick in concrete and launch the Rosoff last himself necessary, to the stock Rosoff group of financial the dollar extent percent the percent when reorganchairman Rosoff about the expressed the urged that Rosoff and his reveal the names the proposed personnel.
Milton, lawyer and of John D. Rockefeller, Jr., and H. Satteranother planned to sent to the state banking plan for reopening the bank The plan conceived by Samuel Rosoff, millionaire subway The closed bank has no connection with the government.
BANK SOLICITED DEPOSITS AFTER ADVERSE REPORT NEW YORK. March 3. Testimony that Bank of United States marshaled more than 60,000 depositors shortly after the banking issued report on its condition stirred the Steuer investigation today. Morris White, director. testified yesterday that high officials had instituted drive more depositors in 1930 and that he self had 1,400 from among his the most startling testimony said Deputy torney General Max D. who is delving into the reasons for the Atty. Gen. H. Bennett Jr. announced that an movement to recompense depositor 100 cents on the dollar, either by constructive liquidation or by reorganization and reopening of the bank
DRIVE AFTER BANK TOTTERED NEW YORK, Mar. 3. (P)-Testimony that the Bank of United States marshalled more than 60,000 new depositors shortly after the State Banking Department issued an unfavorable report on its condition stirred the Steuer investigation today. Morris White, a director, testified that high officials had instituted a drive for more depositors in February, 1930 and that he himself had recruited 1,400 from among his employees in another venture. "This is the most startling testimony yet given," said Deputy Attorney General Max D. Steuer who is delving into the reasons for the bank's suspension. Attorney General John H. Bennett, Jr., announced that several directors had started an independent movement to recompense depositors 160 cents on the dollar, either by constructive liquidation or by reorganization and reopening of bank.
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CASE SET FOR TRIAL NEW YORK, Mar. 24. (AP)-Trial of Issidor Kresal, Bernard Marcus. Saul Singer, Herbert Singer and Henry Pollock, directors of the defunct Bank of United States, was ordered to start March 30.
TUTTLE PLEA FOR MISTRIAL IN BANK CASE IS REJECTED the York Bureau NEW YORK April -Charles H Tuttle of for the defense of the four officials of the closed Bank United States being tried in the Court of General Sessions for alleged misuse of the bank's funds demanded A the cause made by Max D. the special to of The court denied the motion
DEFENSE CLOSES CASE IN BANK OF U. S. TRIAL From York Bureau the NEW YORK, June defense attorneys for the four officials of the closed Bank of United States on trial for alleged wilful misuse of the bank's funds, rested their case yesterday. There will be brief rebuttal today which both sides will with to the jury
PLAN OF BANK OF UNITED STATES New York, Aug. for the of the closed Bank of United States will be announced within ten days or two weeks, the Associated Press learned from reliable sources yesterday. While details of the plan could not be learned, was understood that Arthur W. Little, former director of the Bank of United States, would be chairman of the board of the new The Bank of United States was closed by the state banking department on Dec. 11. 1930. It has no connection with the federal government.
INDICTMENTS DUE TODAY IN BANK OF U. S. FAILURE NEW YORK grand to down its consid of the the 40 the directorate of Bank States for alleged fraudulent The offense proved is meanor penalty three and $1000 PRICE GUARANTEES WITHDRAWN NEW YORK. Rayon notified tomers effective all price guarantees been in effect have been withdrawn
New York Bank Sets Second 15c Dividend NEW YORK, Nov. 21. (U.S.) Depositors of the Bank of United States, was stated definitely today, will receive second dividend of 15 cents on the dollar before Christmas. The State Banking Department has in excess of $25 000 in cash on hand as result of liquidation. Approximately $20,000,000 will be paid out on the second dividend.
Bank of U. S. to Pay Second Dividend NEW YORK, Dec. -Supreme Court Justice Washas approved an order the second dividend of 15 per cent to depositors in Bank of United States and other creditors.
Outlook for 1932 There been six stages of the process stocks, during which depreciaand directly influenced the per decline the associated the cent fall was the the end the spring 1930, when real intimation of prolonged was in the minds the banker and business occurred December, 1930. when confidence was shattered banking failures the and culminating episode the Bank United States New appeared slump this which recognition seriousness of Germany's credit The at the end of Augthe banks, the susBritain threat American withdrawnls gold United States nations. and was checked the early part October the formation the National Credit corporation. Basis of New Fortunes The which Dehas been due to tion of fear and of the Amerrailroad structure and alarm Germany's outlook During last phase depreciation for and bonds and for institutional hibited less resistance any the periods and disbe the of the thirty sixty that securities and commodities No healthy can fail appreciate the and foreign nations what would crisis in credit. reality of crisis those who must suffer from this son the that the Trend of Industry Charts the recording the of dustrial output the tribution kinds Most gains normal average. the finds industrial smaller percentage that which stood for some the low point the depression These been temporary and slight upward curves during the twelve in the second quarter when production averaged per its low level the last year fallMay per This was due to such influ-
ROOSEVELT COURT WITNESS Gives Testimony at Trial of Broderick in Failure of Bank New York, April 20. (AP) Governor Franklin Roosevelt testified today as defense witness in the trial of Joseph Broderick, state superintendent of banks. Broderick is charged with neglect of duty in failing to close the bank of United States earlier than he did. The session was marked by quent and heated arguments counsel. At one point, when the governor asked permission to ask question of Judge George Donnellan. presiding the trial. Max Steuer, special prosecutor, replied. no, It is absolutely improper to deliver lecture form question to fritter the peoples Steuers constant objections put to the governor Martin counsel, succeeded in limiting the virtually to statement that he knew of and participated efforts to merge the Bank of United States with coupled with of Brodericks as "none higher in the state of New York." There were two separate merger plans the testified Steuer limited his testimony preclude his telling details of the proposed mergers.
Judge Donnellan offered to excuse the jury while the governor asked the question, if Steuer wished that. The prosecutor refused, and said if Judge Donnellan wished to exclude the jury that would be a different matter. The flurry ended by Martin Conboy, defense counsel, resuming his questioning. Steuer refused to cross-examine the governor at the conclusion of his direct testimony, and Governor Roosevelt was excused. Steuer's constant objections to questions put to the governor by Conboy succeeded in limiting the governor's testimony virtually to the statement that he knew of and participated in efforts to merge the Bank of United States with stronger institutions, coupled with an endorsement of Broderick's reputation as "none higher in the state of New York." Broderick is on trial for alleged neglect of duty in failing to close the Bank of United States before he did.
ROOSEVELT TAKES PART OF BLAME IN BANK CASE NEW YORK, April Franklin D. Roosevelt defense witness in the trial Joseph state superintendent of banks, assumed partial responsibility for delay in closing the Bank of United States. Broderick is trial for alleged of duty in failing to close the bank earlier than he
Conviction of Bank Officers Is Upheld NEW YORK, May appeliate division the supreme court today upheld the conviction of Bernard Marcus, president of the closed Bank of United States: Singer, executive dent, Singer's son, Herbert. officer in some the bank's affillates, charges funds the Safe Deposit company, subsidiary the bank. The Bank of United States. with closed 11,