285301584 28530
national
15e92d3c2b0491e4None
TWO BANKS IN SAME BUILDING FAIL TO OPEN BAY CITY, Mich., Dec. The First National Bank and the Bay City County Savings Bank, both housed in the same did not open In their last statements, the First National Bank showed deposits of more than $4,000,000 and the Bay County Savings Bank deposits of approximately Clements, regent of the University Michigan, is president of both institutions.
New York Stock Market Associated Following stock York Exchange to York time: AN IRREGULAR TREND Sales Abitibi P&P Selling Follows News of Ann Arbor Road's Affiliat Receivership. Alaska Alleghany BY F. H. RICHARDSON. New York, Dec. C. P. While there were still m' ny weak spots in the bond market today, there were sufficient evidences of strength in both the foreign and domestic departments to demonChicle strate that there was a better undertone. Trading was in moderate Coml Enca volume The opening was firm and for a time virtually the entire list advanced but when stocks hesitated, the bond list turned irregular. Rails were helped by many reports that difficult situa tions had been cleared up Mach&M bankers. One factor contributing Metal to this new optimism was the application of the New York Central to issue 000 of refunding 5s, due in 2013, for the purpose of using it as collateral against short term New Central 5s, outstanding bonds of the same mortgage under which the $100,000.000 will be issued if approved by the interstate commerce commission. opened up 7 points from Wednesday's low The road announced that none of the new bonds will Woolen be offered to the public. This served to check fears that other Central issues might be depressed Paper in competition with the new bonds. New York Central per cent bonds, due in 1935, were off 3 points to new low, however. Appointment of receiver for the Ann Arbor railroad caused a sharp drop in the road's first 4s The news brought a new burst of selling in rail stocks and bonds, with of to points in Baltimore Ohio refunding 5s Auburn Paul 5s, Chicago & North Western Rock Island 41/28, Erie 5s. Balt Ohio Missouri- Pacific 43, 5s and pf Nickel Plate 41/28, Northern Pa Barnsdal cific 6s, Southern Railway 5s and many other issues St. Louis- issues Beld some sti reng at the start. on reports that the road' January note maturity had been arranged for and that bankers were study ing a plan to provide working capIndustrial and utility issues were heavy. Western Union 61/28 slumped another 6 points. Goodrich 6s dropped 3 points German government bonds were firmer at the opening but subsequently sagged to new lows. They Wa were followed by German bank. municipal and corporate obligations. British opened unchanged around their low advanced over 2 points and then receded again. Other Europeans were quiet. Auburn Declares Regular Dividend New York, Dec. 3 (AP) Auburn Automobile company today declared the regular quarterly dividends of $1 in cash and 2 per cent in stock, payable January 2 to stock of record December 22. Investments BY GEORGE T. HUGHES. the of stmplicity we will eliminate from our imaginary Colum balance sheet in the present discussion everything except current assets and current liabilities. Of course that will not make the sheet balance but will serve the purpose. The following is from the illustration already used several times in this series Current Assets. Cash Accounts receivable (less securities Inventories Current Liabilities Notes Reserve for taxes We have already seen that the first recourse for the sums needed Curtis to meet the current liabilities. which are assumed to be immediately due, are the cash and the securities accounts. We have now to consider the two other items on the asset side, the ceivables and the inventories. At this stage it is unnecessary to go into the question of whether or not the accounts receivable are out of proportion to the total done. That would not appear in a balance sheet anyway It will be noted that these receivables are in the example given "less reserves. This is the estimated amount by which the account written down for bad debts That deduction varies with the of vatism with which the books of the corporation are kept and the figures throw no light on this point. Rarely the amount of reserve is stated and then the percentage can be computed. but ordinarily it is not customary to go behind the figures. As for inventories, that item is Firest T&R calculated in different ways also: Ruber perhaps the most conservati is "cost market, whichever is lower. What the analyst wants to know is that the sum stated can be realized upon without material deThe student will observe that the two items here discussed. receivables and inventories, although both classed as current assets, dif fer in kind from the two heretofore dealt with, cash and marketable securities. in that it does take certain appreciable time for the bills ivable to be and for the inventories to be turned into cash. For that a current asset account is sometimes further subdivided into quick sets and other current assets, the cash and security items alone coming under the former classification. Gold Bank Suspensions. Bav City Mich Dec. 4 The Bay County bank and the First National Bank of Bay with combined deposits of $9,000,000. failed to open their doors today. A statement by officials said the closings were the result of depletion of reserves through withdrawals and complications produced by bond depreciation. Hartman do Comb
Irwin to Be Receiver of Bay City National Bank EMMETSBURG, Dec. 10.-N. W Irwin, National bank receiver here. has accepted the receivership of the First National bank of Bay City, Mich. A 6,000,000 institution. Mr. Trwin has had charge of nine National bank trusts in this vicinity, including one at Mallard, Ayrshire, Ruthven, Emmetsburg and two at Spencer. Lloyd Jensvold, former star backfield football man at the State University of Iowa, will accompany Mr. Irwin as his assistant. Trappers Will Increase. DULUTH, Dec. 10. (AP) With colder weather forecast, an increase in the number of persons who turn to the business of trapping of fur bearing animals is anticipated in Northern Minnesota, despite the material decrease in prices being paid for furs this season.
BAY CITY CHEERED BY BANK'S OPENING Otto Schupp of Saginaw Factor in Organizing Institution. (Continued from Page One) on the aid extended by Mr. Schupp in the plans for the establishment of the new bank. "Mr. Schupp came to us when the sky was the darkest," declared the president of the new bank. "We were at loss which way to turn. We had ordered the First National and Bay County Savings banks closed to protect those depositors who had not withdrawn their money. "Then Mr. Schupp entered the picture. He counseled with us and went both to Detroit and Chicago where we discussed with federal bank examiners the possibility of opening a new bank to take over the assets of the two that were closed. "It was the inspiration he provided that heartened our group to continue the fight to establish the new bank and we are extremely grateful to him for what he did." Mr. Schupp was on hand for the bank's opening Friday to congratulate the bank's officials on their success. Unusual Feature. What is there about this new Bay City bank that smacks of the unique and has attracted nationwide attention during the process of its organization? The most unusual feature is that part of the new bank's charter calls for the establishment of a trust fund of approximately $3,000,000 that will receive all the bank's earnings until such time as the depositors of the two closed banks have been paid 100 cents on the dollar for their old accounts. Briefly, the plan for the new bank follows: The National Bank of Bay City will pay immediately to any depositor 10 per cent of the amount of his original account. On or before the end of the first year of the bank's existence it will make available an additional 10 per cent. For the next three years it will provide for the payment of 10 per cent each year until 50 per cent of all deposits will have been paid if the depositors to withdraw. Stock in Trust Fund. Meantime, the trust fund, made up of the remaining 50 per cent of the bank's assets, will remain intact. It will receive all the earnings of the new bank. All stock, except that held necessarily by the directors in accordance with law, will be held in the trust fund. No stockholder will receive a dime in the shape of a bank dividend until the trust fund appreciates to a point where all deposits of the two closed banks are guaranteed. That there is good psychology in this arrangement was proved by comment heard from Bay City business men. Many depositors Friday were making no effort to withdraw the 10 per cent that was made available to them. Many were establishing new accounts. Public sentiment is strongly favorable to the new institution. The closing of the first National and Bay County Savings banks followed the withdrawal of approximately $4,000,000 over a period of six months. At no time was there a run on the bank. Public confidence slipped after the Bay City bank closed its doors and the gradual reduction of the bank's resources led its directors to close that other depositors might be protected.
BAY CITY CHEERED BY BANK'S OPENING Otto Schupp of Saginaw Factor in Organizing Institution. BY HENRY G. HUNT. (Daily News Staff Correspondent.) BAY CITY, Mich., July 1.—Bay City's financial structure took on new strength Friday when the National Bank of Bay City, successor to the First National and Bay County Savings banks, opened its doors for business. From the hour of the opening, the bank was crowded with patrons, many of them reestablishing savings and commercial accounts, while other availed themselves of the opportunity to reclaim part of their savings that were included in the assets of the two closed institutions. M. W. Carroll, Bay City produce dealer, a quiet, grey-haired Irishman, is the financial Moses to whom Bay City is looking to lead the city from the bewilderment that gripped it when the Bay City bank closed its doors and was heightened when the First National and Bay County Savings banks collapsed. Mr. Carroll is one of Bay City's best known men. To watch him circulate through the crowded lobby of the bank Friday morning, shaking hands with grizzled farmers, slapping the back of a business associate or stopping for a brief visit with some elderly lady in whose hand was clenched a worn bank book, was to know that those who had organized the new bank had chosen well in selecting Mr. Carroll as president of the institution. It is of more than passing interest to set forth that a Saginaw banker, Otto Schupp, president of the Bank of Saginaw, was influential in directing the early steps of the bank's reorganization. The First National and Bay County Savings banks closed Dec. 3, 1931. Mr. Schupp was then a director of the one-time National Credit corporation. He immediately counseled with the Bay City men who had been prominent in the affairs of the bank before its closing. Mr. Carroll commented Friday on the aid extended by Mr. Schupp in the plans for the establishment of the new bank. "Mr. Schupp came to us when the sky was the darkest," declared the president of the new bank. "We were at loss which way to turn. We had ordered the First National and Bay County Savings banks closed to protect those depositors who had not withdrawn their money. "Then Mr. Schupp entered the picture. He counseled with us and went both to Detroit and Chicago where we discussed with federal bank examiners the possibility of opening a new bank to take over the assets of the two that were closed. "It was the inspiration he provided that heartened our group to continue the fight to establish the new bank and we are extremely grateful to him for what he did." Mr. Schupp was on hand for the bank's opening Friday to congratulate the bank's officials on their success.
BAY CITY CHEERED BY BANK'S OPENING Otto Schupp of Saginaw Factor in Organizing Institution. BY HENRY G. HUNT. (Daily News Staff Correspondent.) BAY CITY, Mich., July 1.—Bay City's financial structure took on new strength Friday when the National Bank of Bay City, successor to the First National and Bay County Savings banks, opened its doors for business. From the hour of the opening, the bank was crowded with patrons, many of them reestablishing savings and commercial accounts, while other availed themselves of the opportunity to reclaim part of their savings that were included in the assets of the two closed institutions. M. W. Carroll, Bay City produce dealer, a quiet, grey-haired Irishman, is the financial Moses to whom Bay City is looking to lead the city from the bewilderment that gripped it when the Bay City bank closed its doors and was heightened when the First National and Bay County Savings banks collapsed. Mr. Carroll is one of Bay City's best known men. To watch him circulate through the crowded lobby of the bank Friday morning, shaking hands with grizzled farmers, slapping the back of a business associate or stopping for a brief visit with some elderly lady in whose hand was clenched a worn bank book, was to know that those who had organized the new bank had chosen well in selecting Mr. Carroll as president of the institution. It is of more than passing interest to set forth that a Saginaw banker, Otto Schupp, president of the Bank of Saginaw, was influential in directing the early steps of the bank's reorganization. The First National and Bay County Savings banks closed Dec. 3, 1931. Mr. Schupp was then a director of the one-time National Credit corporation. He immediately counseled with the Bay City men who had been prominent in the affairs of the bank before its closing. Mr. Carroll commented Friday on the aid extended by Mr. Schupp in the plans for the establishment of the new bank. "Mr. Schupp came to us when the sky was the darkest," declared the president of the new bank. "We were at loss which way to turn. We had ordered the First National and Bay County Savings banks closed to protect those depositors who had not withdrawn their money. "Then Mr. Schupp entered the picture. He counseled with us and went both to Detroit and Chicago where we discussed with federal bank examiners the possibility of opening a new bank to take over the assets of the two that were closed. "It was the inspiration he provided that heartened our group to continue the fight to establish the new bank and we are extremely grateful to him for what he did." Mr. Schupp was on hand for the bank's opening Friday to congratulate the bank's officials on their success. Unusual Feature. What is there about this new Bay City bank that smacks of the unique and has attracted nationwide attention during the process of its organization? The most unusual feature is that part of the new bank's charter calls for the establishment of a trust fund of approximately $3,000,000 that will receive all the bank's earnings until such time as the depositors of the two closed banks have been paid 100 cents on the dollar for their old accounts. Briefly, the plan for the new bank follows: The National Bank of Bay City will pay immediately to any depositor 10 per cent of the amount of his original account. On or before the end of the first year of the bank's existence it will make available an additional 10 per cent. For the next three years it will provide for the payment of 10 per cent each year until 50 per cent of all deposits will have been paid if the depositors to withdraw. Stock in Trust Fund. Meantime, the trust fund, made up of the remaining 50 per cent of the bank's assets, will remain intact. It will receive all the earnings of the new bank. All stock, except that held necessarily by the directors in accordance with law, will be held in the trust fund. No stockholder will receive a dime in the shape of a bank dividend until the trust fund appreciates to a point where all deposits of the two closed banks are guaranteed. That there is good psychology in this arrangement was proved by comment heard from Bay City business men. Many depositors Friday were making no effort to withdraw the 10 per cent that was made available to them. Many were establishing new accounts. Public sentiment is strongly favorable to the new institution. The closing of the first National and Bay County Savings banks followed the withdrawal of approximately $4,000,000 over a period of six months. At no time was there a run on the bank. Public confidence slipped after the Bay City bank closed its doors and the gradual reduction of the bank's resources led its directors to close that other depositors might be protected.
BAY CITY CHEERED BY BANK'S OPENING Otto Schupp of Saginaw Factor in Organizing Institution. BY HENRY G. HUNT. (Daily News Staff Correspondent.) BAY CITY, Mich., July 1.—Bay City's financial structure took on new strength Friday when the National Bank of Bay City, successor to the First National and Bay County Savings banks, opened its doors for business. From the hour of the opening, the bank was crowded with patrons, many of them reestablishing savings and commercial accounts, while other availed themselves of the opportunity to reclaim part of their savings that were included in the assets of the two closed institutions. M. W. Carroll, Bay City produce dealer, a quiet, grey-haired Irishman, is the financial Moses to whom Bay City is looking to lead the city from the bewilderment that gripped it when the Bay City bank closed its doors and was heightened when the First National and Bay County Savings banks collapsed. Mr. Carroll is one of Bay City's best known men. To watch him circulate through the crowded lobby of the bank Friday morning, shaking hands with grizzled farmers, slapping the back of a business associate or stopping for a brief visit with some elderly lady in whose hand was clenched a worn bank book, was to know that those who had organized the new bank had chosen well in selecting Mr. Carroll as president of the institution. It is of more than passing interest to set forth that a Saginaw banker, Otto Schupp, president of the Bank of Saginaw, was influential in directing the early steps of the bank's reorganization. The First National and Bay County Savings banks closed Dec. 3, 1931. Mr. Schupp was then a director of the one-time National Credit corporation. He immediately counseled with the Bay City men who had been prominent in the affairs of the bank before its closing. Mr. Carroll commented Friday on the aid extended by Mr. Schupp in the plans for the establishment of the new bank. "Mr. Schupp came to us when the sky was the darkest," declared the president of the new bank. "We were at loss which way to turn. We had ordered the First National and Bay County Savings banks closed to protect those depositors who had not withdrawn their money. "Then Mr. Schupp entered the picture. He counseled with us and went both to Detroit and Chicago where we discussed with federal bank examiners the possibility of opening a new bank to take over the assets of the two that were closed. "It was the inspiration he provided that heartened our group to continue the fight to establish the new bank and we are extremely grateful to him for what he did." Mr. Schupp was on hand for the bank's opening Friday to congratulate the bank's officials on their success.
able to the new institution. The closing of the first National and Bay County Savings banks followed the withdrawal of approximately $4,000,000 over a period of six months. At no time was there a run on the bank. Public confidence slipped after the Bay City bank closed its doors and the gradual reduction of the bank's resources led its directors to close that other depositors might be protected. Position Sound. The financial position of the new bank is believed to be exceptionally sound. Similar plans have been followed in the city of Ypsilanti and the village of Saline and both are working satisfactorily. With the organization of the National Bank of Bay City, all assets and liabilities of the two closed banks were transferred to the new institution. Officers of the new bank Friday were in receipt of many telegraphic messages of congratulation. Large
MICHIGAN BANK RECORD COMPARES FAVORABLY (By Associated Press.) WASHINGTON, Dec. 12.—With two exceptions Michigan fared better than its neighboring middle-western states in the total number of bank suspensions for the eleven and one half years period ended June 30, 1932. The annual report of the comptroller of the currency to congress, made public today, shows that of the total of 10,104 bank suspensions in the United States during the period, 247 were in Michigan. The two states that were below that figure were Wisconsin with 158 and Ohio with 212. Indiana had 352; Minnesota 559; Missouri 572; Illinois 648 and Iowa 887. The only Michigan bank among the receiverships liquidated during the year ended October 31, 1932 was the First National Bank of Bay City, which paid its depositors 100 per cent and was restored to solvency, after having been closed since December 7, 1931.
MICHIGAN HAS LOW TOTAL OF FAILURES (By Associated Press) Dec two exceptions Michigan fared better than its neighboring middle western states in the total number of bank suspensions for the and period ended June 30, 1932. The annual report of the comptroller fthe currency to Congress, made public today, shows that of the total 10,104 bank suspensions the United States during the period, 247 were Michigan. The two states that were below that Wisconsin with 158 and Ohio with 212. Indiana had 352; Minnesota 559; Missouri 572; Illinois 648 and Iowa The only Michigan bank among the receiverships liquidated during year ended October 31, 1932 was the First National bank Bay City, which paid its depositors 100 percent and restored to solvency, after having been closed since December
Good Showing Made by Michigan Banks WASHINGTON Dec 12-(A. P.) With two Michigan fared better than its neighboring Middle Western States in the total number of bank for the 11½ years period ended June 1932 The annual report of the Controller of the Currency to Congress, made public today shows that of the total of 10,104 bank suspensions in the United States during the period, 247 were in Michigan. The two states that were below that figure Wisconsin with 158 and Ohio with 212 Indiana had 559 Missouri 572: Illinois 648. and Iowa 887 The only Michigan bank among the liquidated during the year ended Oct 31, 1932, was the First National Bank of Bay City, Its successor, the National Bank of Bay City has paid depositors of the bank 20 cents on the dollar and is opera ing under a depositors' trust fund agreement.