Cleveland Trust Company (Cleveland, OH)

Article Text

CLEVELAND IS READY

To Do Business In Scrip Following Bank Approval.

Cleveland, March cials of the Cleveland Clearing House tonight definiteannounced their plan for issuance Clearing House Certificates ready to be into effect morrow. The announcement followed proval the plan group business leaders savings and officials. Forty industrialists and business men, representing than score of largest stores industries the city, voted using the certificates for the the banking The the Cuyahoga County Savings Loan League, 44 voted of using the certificates payments of The Clearing House Association decided late Saturday issue secured by collateral deposited trustee the sociation. The Cleveland Trust Company was named trustee today. The plan calls for industries wishing use certificates for meeting pay rolls to posit receive the tificates. bank deposits, however, will not be acceptable collateral. Almost the Cleveland of nounced the of committee to aid in obtaining full cooperation of civic in meeting Cleveland tonight said they would close their with Presidential proclamation but would request immediate under the exceptions noted document. They interpreted the proclamaapply all Ohio banks, whether already operating under restriction They they said, would tie the deposits made the under state requiring their segregation new unrestricted

Article Text

DEPOSITORS

Granted Major Voice

On Reorganization Committee or Cleveland Bank-Two Pay Off Loans.

Cleveland, Ohio, March President Harold H. Burton, of the Reorganization Committee of the Guardian Trust Company, today announced that depositors of the bank had given majority representation on the committee. committee's membership was increased from six eight the additions today of Auxiliary Bishop James A. McFadden, of the Catholic Diocese Cleveland, George W. Grill, Assistant School Superintendent of Lakewood, suburb. Five of the committeemen represent depositors, represent Directors and stockholders and one represents the stockholders The Union Trust Company and the Guardian Trust Company, neiof which been operating normal basis since national bank crisis, both have been cutting expenses drastically in anticipation of arrangement for has dismissed 200 of its 957 employees recently, and cut deeply In tion announced today that the Union Trust was closing 10 Meanwhile, the Cleveland Trust Company, which reopened Federal license after the crisis, announced today it had repaid of $15,800,000 Finance Corporation. Simultaneously the Central United National Bank. 100 per cent operative, said had repaid obligation to the corporation of $1,100,000 This repayment wiped out the indebtedness of both banks corporation.

Article Text

DEPOSITORS

Granted Major Voice

On Reorganization Committee Of Cleveland Bank-Two Pay Off R. C. Loans.

Cleveland, Ohio, March -President Harold H. Burton, the Reorganization Committee of the Guardian Trust Company, today announced that depositors of the bank had been majority on the committee. The committee's membership was increased from six eight the additions today of Auxiliary Bishop James A. McFadden, of the Catholic Diocese of Cleveland, George W. Grill, Assistant School Superintendent of Lakewood, suburb. Five of the committeemen represent depositors, two represent Directors and stockholders, one represents the stockholders. Union Trust Company and the Guardian Trust Company, neither of which has been operating normal basis the national crisis, both been cutting expenses drastically in anticipation of reorganization arrangement shortly. The Union Trust has dismissed of its 957 employees recently, cut salaries deeply. tion announced today that Union Trust closing branches. Meanwhile, the Cleveland Trust Company, which reopened with eral other banks Federal license after the crisis, announced today repaid loan of 800,000 Finance Corporation. Simultaneously the Central National Bank, 100 cent operative, said repaid obligation to the corporation of $1,100,000. This repayment wiped out the total indebtedness of both banks the corporation.

Article Text

RUN ON BANK IN IS AVERTED

Federal Reserve Halts Trust Co Depositors by Statement as to Condition

Cleveland, O., April 27-The first serious bank crisia since the recent holiday was averted day when run Cleveland Trust was halted by prompt action the backing licensed banks the limit." Normal banking sumed by the Trust and its 58 branches today after three-day run, started by unfounded rumors. formal statement by the CleveFederal Reserve bank to the effect Cleveland Trust company would been allowed to open had not been perfectly sound, the appearance of President Creech before depositors with announcement that everyone would be paid in full, took the starch out of the run.

31 DEAD IN CYCLONE perkilled and hundreds of cattle destroyed. by cyclone that devastated the of Unao the United Provinces, an Exchange Telegraph dispatch from Simla, India, reported today. The message said property and crops suffered tremendous damages.

Article Text

ON CLEVELAND BANK INVESTIGATED

U. Threatens Arrest Of Rumor Spreaders As Test Is Met

(Continued From Page One) may be asked for under that stiff prison tences fines for persons spread about banks and other commercial institutions. The here reached climax yesterday when some depositors whose they reached crowded into the Cleveland Trust Co., city's largest bank, to withdraw their money Filled With Drama The incident filled with drama the president the bank. Harris Creech, appeared the lobby assured the frightened depositors the would remain open two hours yond its usual to withdraw their money result the Cleveland Trust ond repeat the who were when Creech first appeared. His caused the lines before tellers' windows humor prevail ness earlier had ruled. Every mand depositors was met prompt- in brief statement the determination federal treasury throw behind the licensed banks the hundreds of millions of dollars idle curlies the vaults the Federal banks.

"Anxiety deposits licensed banks Cleveland is un"These licensed and reopened operation careful on their dition. are sound and will have the Federal Reserve banks of the fullest their of the entire

Article Text

GOVERNMENT IN AND PUTS STOP TO 'RUN' ON BANK

Depositors at Cleveland Are Quieted After False Rumors Precipitate Flurry.

FEDERAL AUTHORITIES

GO AFTER CRIMINALS

Perpetrators of Unfounded Reports Sought After All Demands Are Met.

CLEVELAND. O., April

-Cleveland's licensed banks were "backed the limit" today by the federal government.

Aroused three-day run the Cleveland Trust company, the city's largest bank, federal authoriannounced that secret service ties in the city in operatives were attempt to trace down perperators of malicious rumors which caused the withdrawals. the Cleveland Simultaneously, Federal Reserve bank issued formal statement, signed by Gov. Fancher of this Federal Reserve out that the district, pointing Cleveland Trust and other licensed banks were allowed to reopen "only after careful determination of their condition proved them to be sound. DRAMATIC CLIMAX.

The run on the Cleveland Trust its 59 branches came to dramatic climax late yesterday when Harris Creech. president, appeared in lobby crowded with depositors, announced that every person would be paid in full, and that the bank would be kept open two extra hours to accommodate anyone wishing withdraw money. The Cleveland Trust company one of the first in this vicinity to obtain license to reopen after the recent banking holiday. Just prior to the closing of all banks, the trust company had placed bales of money in plain view in the lobby, assuring all depositors there was plenty of cash to pay everyone in full.

FEARS ALLAYED.

President Creech's dramatic appearance before the depositors yesterday had the effect of restoring confidence among depositors, and only handfull were in the lobby when the bank finally closed The statement of Gov. Fancher of the Federal Reserve, said: "Anxiety concerning deposits licensed banks in Cleveland is warranted. These banks were censed and reopened after careful determination of their condition. They are sound and they have and will continue to have the full support of the Federal Reserve bank.' The run on the Cleveland Trust and its branches came while officials of the Union Trust and Guardian Trust, the city's second and third largest were working reorganization plans which will allow the institutions to reopen. Sale of common stock in new tional bank to succeed both Union and Guardian now underway.

Article Text

'NEW DEAL' HALTS RUN ON CLEVELAND BANK

CLEVELAND, April 27 (U.P.) — The first serious bank crisis since the recent nation-wide holiday, was averted today when a run on the Cleveland Trust company was halted by prompt action of the federal government in backing licensed banks "to the limit."

Normal banking operations were resumed by the Cleveland Trust and its 58 branches today after a three-day run, started by unfounded rumors.

Article Text

Run on Cleveland Bank Stopped by Quick Action

Cleveland. April 27 (U.P.)-The first serious bank crisis since recent nationwide holiday was averted today when run on the Cleveland Trust Company was halted by-prompt action of the Federal government in backing licensed the limit Normal banking operations were resumed by the Cleveland Trust and its fifty-eight branches today after three-day run, started by unfounded rumors. formal statement by the Cleveland Federal Reserve Bank the effect that the Cleveland Trust Company would have been allowed reopen had not been perfectly sound. coupled with the dramatic appearance President depositors with the announcement that everyone would be paid in full took starch out of the run. At noon. Creech announced that deposits today had equalled withdrawals. Small crowds of curious spectators who gathered at the bank when opened had dispersed. Large depositors of the bank had become alarmed. being more fully informed of the gov ernment's Cleveland Trust deposits total more than

Article Text

PROBE TO FOLLOW "RUN" ON OHIO BANK

Cleveland, O., April 27.- Cleveland s'licensed banks were "backed to the limit" today by the federal government. Arcused by a three-day run on the Cleveland Trust Company, the city's largest bank. federal authorities announced that secret service operators were in the city in an attempt to trace down perpetrators rf malicious rumors which caused the withdrawals. Simultaneously, the Cleveland Federal Reserve bank issued a formal statement, signed by Governor E. R. Fancher of this reserve dis- trict. pointing out that the Cleveland Trust and other licensed banks were allowed to reopen "only after careful determination of their condition proved them to be sound. The run on the Cleveland Trust and its 59 branches came to a dramatic climax late yesterday when Harris Creech. president, appeared in lobby crowded with depositors. announced that every person would be paid in full. and that the bank would be kept open two extra hours to accommodate anyone wishing to withdraw money. The Cleveland Trust Company was one of the first in this vicinity to obtain license to reopen after the recent banking holiday. Just prior to the closing of all banks, the Trust Company had placed bales of money in plain view in the lebby, assuring all depositors there was plenty of cash to pay everyone in full.

Subscribe for The Advocate.

Article Text

GOVERNMENT STOPS RUN ON OHIO BANK

Cleveland, April 27 (U.P.).-The first serious bank crisis since the nation-wide holiday was averted today when a run on the Cleveland Trust Company was halted by prompt action of the Government in backing licensed banks to the limit.

ASK Wynn to send your Horoscope

Article Text

GOVERNMENT STOPS RUN ON OHIO BANK

Cleveland, April 27 (U.P.).-The first serious bank crisis since the nation-wide holiday was averted today when a run on the Cleveland Trust Company was halted by prompt action of the Government in backing licensed banks to the limit.

ASK Wynn to send your Horoscope FREE!

Article Text

GOVERNMENT STOPS RUN ON OHIO BANK

Cleveland, April 27 (U.P.).-The first serious bank crisis since the nation-wide holiday was averted today when a run on the Cleveland Trust Company was halted by prompt action of the Government in backing licensed banks to the limit.

ASK Wynn to send your Horoscope FREE!

Article Text

GOVERNMENT STOPS RUN ON OHIO BANK

Cleveland, April 27 (U.P.)-The first serious bank crisis since the nation-wide holiday was averted today when a run on the Cleveland Trust Company was halted by prompt action of the Government in backing licensed banks to the limit.