Article Text
ON PENNEY BANK SHOWN BY RECORDS
Continued From Page likewise charged Mr. Penney's personal account with $100,000. "Please allow me again, Mr. Rood, to express to you my very deep appreciation the splendid spirit of COoperation which you have accorded us in the trying days through which we have passed. Out of the misfortune of the Bank of Bay Biscayne, we have great many new and up to Saturday night there had been opened up in this bank 1,431 new accounts. Of course, many of these accounts were relatively small, but they have potential value, and as the situation gradually readjusts itself, am sure that from this host of new friends we will get very substantial deposit account. Mr. Rood's answer, dated July 11, was as follows: "Dear Mr. Gordon: letter of July which you fully state the transactions in settlement of the loans made to your bank last Your deposit for our credit at the Chemical Bank Trust Company was utilized quickly possible pay off the notes which we had executed to obtain the "The loan from the National City Bank held up until our check had been deposited and passed through the clearing house With this think you will stand the following the total charges paid by this cor11-July 11-June 97.22 June 12-July 28-July 475.00
"If you find the foregoing is correct, you may account the and us accordingly. am to know that are making such good progress in acquiring and bank accounts. agree with you that while many of these accounts may be small, they very encouraging to the future growth of our business. Joseph F. McPherson, of the Miami law firm of Shutts & and Kendall of the New York Upham ing Mr. objected defense attempts to show that the City National Bank's collapse was caused by bad paper taken over in the absorption the Miami Bank and Trust Company and the Bank and Trust Company in 1926 by the City National Bank and Trust Company. The that the City National Bank and Trust Comcharged off these before Penney bank, the City National Bank in Miami In further attempting to prove that the interests actually did invest money in the City National Bank In Miami, defense attorneys introduced memorandum from the showing the results the February 20, 1929, and receipt signed Oliver president the bank, for The raid: "Results recapitalization February 20. 1929, and participation of the underwriting group Up to February 20, 1929, the shareholders of the bank other than those of the underwriting group, total 2531/2 shares, total to be by the group. "The agreement called for subscription to the stock on the following basis: Corporation, 50 per cent. Keys, 20 per cent. 20 per cent. Briggs, 10 per cent. received and payment made as follows:
$50 shareholders "Received of Rood, treasurer 330 street, New York City, Four Hundred Three Nine Hundred Dollars and Twen- ty-fice Centa which held in special reserve account for the purpose of paying City National Bank Miami $1,000,000, which the amount above mentioned is part. "This fund held in special serve, having been charged to the RCcount of tion upon instructions from Mr. Richardson Saunders, their representative, on February 18, Mr. Spurway, reading from the bank's stated that on Semptember 18, 1930, was charged profit loss nine and loss cash items This followed report by Cunningham, bank examiner, under date of Agust 18, 1930, he stated. Mr. Spurway said that he collected $62,500 from the First National Bank adjustment for its $150,000 share in $450,000 guarantee given by the Miami Giro Corporation secure the City Bank and Trust Company against loss which might be sistained in taking the assets the Bank and the Miami Bank and Trust Company The Giro corporation was formed by Miami bankers in 1926 stabilize banking conditions and Miamians joined in the guarantee agreement. was not until February 1928, that Mr. Penney in the of the City Bank In Miami the City Bank and Company. An item of $277. the bank's records, was part of the Giro guarantee paper which was turned over to the Tarriet Corporation, subsidiary of the City National Bank In Miami. Mr. SpurWhen over the bank there two notes in bank, one for $6,500 by the was taken up the other by The Miami Herald Publishing Company, which was taken up as part of the settlement with the First National Bank, Mr. Spurway said. Mr. Adams at the end of yesterday's that he would be finished with Mr. Spurway's cross-examination this morning after delving into the general as to real banking the failure of the City National Bank Miami, Plantiff's attorney, It is expected, then will call Max Orovitz, assistant liquidator. depositions being taken by E. Kelly, as commissioner.
