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Pittsburgh Bank Receiver Is Dead PITTSBURGH, June 23.-(P)Michael Hall Sims, 57, receiver for the Monongahela National Bank and former examiner of tional banks in Pittsburgh, died yesterday. He was born and educated in Columbus, O., and was at one time assistant cashier of the Bank of Commerce in Columbus. He later was in the oil business in Texas but returned to banking work In Philadelphia and then came to Pittsburgh. He was active in Masonic circles.
CLOSED BANKS' REPORTS MADE Receivers of Three National Banks Had Good Collections. Statements of receivers of the three closed downtown national banks, as of September 30, show substantial collections were made during the past three months. The Bank of Pittsburgh borrowed funds from the Reconstruction Finance Corporation to assist in paying the second dividend of 10 per cent to depositors late in August. A total of $2,660,000 was made available in July to C. O. Thomas, receiver, but collections during the quarter proved sufficient to permit reduction of the loan to $2,000,000 by September 30. Bank of Pittsburgh depositors have received a total of 60 per cent in dividends. Thomas' collections are reflected in a decline of a little more than $800,000 in remaining assets uncollected at the end of the quarter, which then amounted to $21,402,674. Cash account at the end of the period was small due to loan repayments. Monongahela Cash Up. Collections by Ernest Ruth, receiver of the Monongahela National Bank, during the third quarter increased the cash account $524,497 to $2,899,900 on September 30, or approximately 42 per cent of total unsecured liabilities compared with a cash position equal to 33 per cent of such liabilities three months earlier. Remaining assets uncollected September 30 declined approximately the amount of the collections and on LOWER PRICES ARE MADE HERE Declines Rule in Both Fuel And Industrial Groups. Reaction sent prices downward generally on the Pittsburgh stock exchange yesterday although volume expanded only slightly from the day before with 5,674 shares. A small gain in Lone Star was turned into a quarter loss, while Western Public Service and Columbia Gas dropped a point each. Westinghouse Electric showed the largest loss among the industrials with 2 1/8 points, while the other odd-lot stocks had losses from a point to 1 7/8. Blaw-Knox sold off a point, Mesta lost a point on light trading and Westinghouse Air Brake and Pittsburgh Screw and Bolt were each three-quarters lower. Jones and Laughlin preferred dropped 1 3/4 points. TRANSACTIONS. 10:00 TO 11:00. 100 Hach Lind... 2 100 Lone Star ... 7 1/2 100 Blaw Knox.. 7 11:00 TO 12:00. 100 Blaw Knox.. 7 100 West Air Br. 15 100 Pgh S & B.. 3 1/4 100 West Air Br. 15 100 West. Air Br 15 100 Col Gas & E 15 12:00 TO 1:00. 20 Mesta Mach. 10 3/4 100 Blaw Knox.. 6 3/4 100 Blaw Knox.. 6 3/4 100 Lone Star ... 7 1/8 1:00 TO 2:00. 100 Lone Star ... 7 100 Lone Star ... 7 200 Lone Star ... 7 100 Lone Star ... 7 100 Lone Star ... 7 25 Shamrock Oil 2 100 Lone Star ... 7 100 Blaw Knox.. 6 7/8 100 Lone Star ... 7 UNLISTED. 100 W Pub Ser.. 6 1/2 100 W Pub Ser.. 6 1/2 2:00 TO 3:00. 10 Kop Gas pfd 55 1/4 40 Arm Cork ... 6 1/8 10 Kop Gas pfd 55 1/4 100 Pgh Brew pf 10 1/4 30 Kop Gas pfd 55 1/4 96 Ark Gas pfd 4 20 Kop Gas pfd 55 1/4 95 *Blaw Knox. ... 10 Kop Gas pfd 55 1/4 229 *Col G & E. ...
Bank Reopening Indicated. NNOUNCEMENT that the closed Monongahela National Bank of this city will be later than December 19 comes reopened with positiveness support that are imJohn E Crawford, head of the that the plan reorganization reports developed has the approval of the Comptroller of the Currency and that it also has been commended by Senator Reed and Representative Guy E. Campbell, the latter chairman of the House Committee on Currency and Banking. approval of the Pittsburgh Clearing House Association and officials of the Federal Reserve Bank of this district, the plan will be submitted to the depositors of the bank. Since the plan was worked out by their own committee. it IS taken for granted that depositors will accept it, particularly in view of the results Accounts of 9,374 depromised positors made available in full; large accounts, available to the extent of 70 per cent: assets, with capital, surplus and undivided profits at $1,125,000, consisting largely of cash and securities which could readily be liquidated conservation of assets that would enable all the depositors eventually to receive their claims in full with interest; conservation of surplus to the old stockholders. many of whom It is indicated that the reopendepositors. ing of the bank would make available in deposits. The of this news to the comimportance munity needs detailed description. It assures double benefit: along with the increase in purchasing power through making tied-up deposits available, the opening of the bank on such sound basis would, as Senator Reed has stated, have a wide beneficial effect in itself. If you are sending Christmas presents to friends Hongkong, your packages must reach the Pacific coast in time for ship sailing December Latest dates for shipment from ports for delivery abroad by December 25 England, Scotland, France and Ger-
MAY MERGE TWO BANKS (Continued from Page One) same amount, it was said. According to tentative plans the new bank will be known as solidated National Bank of Pittsburgh and will operate in banking rooms of one of the two closed banks. Sixty per cent of cash deposits of the Monongahela Bank and 40 per cent of the Diamond depositors are expected to be made available with opening of the proposed bank Receivwill assume the remainder of the deposit liability of each bank, paying check are
PITTSBURGH, Dec. Depositors of two closed National Banks here have approved plans for merger of the institutions to create bank with deposits more than million dollars, revealed today. Plans for second merger, combining the new bank with bank operating in good financial condition, reported to be under consideration. The second merger approved would create an institution with deposits of more than said. The merger plan already proved by depositors calls for solidation of the Monongahela National Bank and Diamond National Bank. both of Pittsburgh, which closed recently. Completion the merger will await subscription new capital stock, which In addition the bank have surplus of $175,000 and undivided profits the same amount, was said. According to tentative plans the hew bank will be known as the Consolidated National Bank of Pittsburgh, and will operate banking rooms of one the two closed banks. Sixty percent of cash deposits of the Monongahela bank and the Diamond deposits are expected to be made available with opening of the proposed bank. Receivers will assume the remainder of the deposit liability of each bank, paying It check as assets liquidated, said.
Approve Plans For Merger of 2 Closed Banks positors of two closed national banks here have approved plans for merger of the institutions to create a new bank with deposits of more than $10.000,000, it revealed today Plans for a second merger, combining the new bank with a bank now operating in good financial condition, are reported to be under consideration. The merger, if approved, would create an institution with deposits of more than $30,000,000. it was said. The merger plan already approved by depositors calls for consolidation of the Monongahela National bank and Diamond National bank, both of Pitts burgh. which closed recently. Completion of the merger will await subscrip tion of new capital stock. which is to total $700.000. In addition the bank will have surplus of $175.000 and undivided profits of the same amount. it was said. According to tentative plans, the new bank will be known as the Consolidat ed National Bank of Pittsburgh and will operate in banking rooms of one of the two closed banks. Sixty per cent. of cash deposits of the Monongahela bank and 40 per cent. of the Diamond deposits are expected to be made available with opening of the proposed bank. Receivers will assume the remainder of the deposit llability of each bank. paying It by check as assets are liquidated, it was said.
Mr. Kury since the end of the bank holiday have benefited to a great degree by the rising prices. The benefits which have accrued to the banks not yet licensed to do an unrestricted business will be manifest to the depositors in a very short time. The rise in values will speed the issuance of licenses and the money tied up will be available. But another situation presents itself to the depositors of some of the banks hereabouts which are in the process of liquidation. Although the assets of these banks will be swelled and the depositors will get some of their money at some future date, there is none available now. Due to procrastination and delayed plans for reorganization that have hampered distribution of dividends the available money is still tied up. The Diamond and Monongahela National Banks can be cited as outstanding examples which have worked considerable hardships on depositors. Both these institutions have more than $9,000,000 in cash or its equivalent on hand. In the case of the Monongahela it has been tied up for more than 18 months, the great majority of it remaining on deposit at an open bank. Diligent receivers in both institutions have done an excellent job of liquidation but their hands have been tied in the matter of getting this money back to the depositors. And why? Because the Comptroller of the Currency in Washington and his subordinates operating in this district have seen fit to hold the money as the nucleus for the organization of a new bank. Not alone has this money been denied those to whom it is rightfully due in the shortest possible time, but Pittsburgh business has been hampered by the impasse. If the money were turned into the channels of local trade it would supply a much-needed stimulant. Yesterday Leo Sack, Washington correspondent of The Press, wrote that parleys were under way in the capital which would rush the opening of the re-organized bank. The most constructive thing that can happen in face of the elapsed delay is an immediate opening of the reorganized banks. If that cannot be done the available money should be distributed to the depositors. They have had enough delay and procrastination. Some of these same depositors are in debt to banks where a percentage of their money is deposited under the receivers' names. They have had to pledge their receivers' certificates for loans. This means they are paying 6 per cent for the use of their own money.
DEPOSITS TO BE RELEASED BY NEW BANK 14,000 Will Obtain Access to Part Of Cash By GEORGE H. SNYDER More than 14,000 depositors in the closed Diamond National and Monongahela National banks will have access to portions of their cash soon through the opening of the Pitt National Bank of Application for charter for the new institution has been approved and the work of obtaining subscriptions for the stock has been completed. according to an announcement by the committees in charge of the organization work. The new bank will take over portions of the assets of the two closed institutions and will credit the depositors with proportional amounts. It is expected that Diamond will have access to about 45 per cent of their funds and that the Monongahela depositors will have access to about 60 per cent of theirs. USE DIAMOND SITE The new bank will conduct its business in the quarters of the former Diamond National Bank at Fifth and Liberty avenues. Assets not taken over by the new bank will remain in the hands of the receivers for liquidation. The committee announcement said the name of the new bank having been pre-empted and authority having been given by the Comptroller of the Currency, the corporate organization will be put through as rapidly as possible and the necessary arrangements concluded and court orders obtained to enable the new bank to take over the acceptable assets of the Diamond and Monongahela Na. tional banks and make ailable to depositors of those institutions, the proportion of their deposits transferred. SPEED SOUGHT The setting up of the organization to run the new bank and the opening of the books and accounts will be pushed as rapidly as possible While officers and directors have not been formally elected. the proposed board has been holding frequent meetings. As was previously announced, Charles Fisher will be president and A. Hughlin vice president. The total capital. surplus and undivided profits of the new bank will aggregate made up of cash subscriptions and. with acceptable assets taken over from the Diamond National Bank and the Monongahela National Bank at their current market values, the financial stability of the new bank assured.
BANK OPENING SET FOR JUNE 12 (Continued from Page 1) liquidation of the Diamond National and $4,423,866 from the Monongahela. These two sums also represent 65 per cent of the deposits in the Monongahela and 40 per cent of the Diamond deposits. After the court order was handed down the officers and directors of the Pitt National Bank issued the following statement: "The District Court of the United States for the Western District of Pennsylvania today approved agreements between the Pitt National Bank and the receivers of the Diamond National Bank and the Monongahela National Bank, respectively, whereby assets of those two banks will be taken over by the Pitt National Bank. They had previously been approved by the Comptroller of the Currency of the United States. These agreements were executed by the respective receivers and the officers of the Pitt National Bank today. "Under these agreements the depositors of the Diamond National Bank will be entitled to receive, by credit to them on the books of the new bank, upon presentation of proper dividend orders, 40 per cent of their proved claims and the depositors of the Monongahela National Bank will be entitled to re-
NEW PITT BANK OPENS JUNE The new Pitt National portions of the which takes over of the Diamond National assets and National banks, for business June 12 to be open signed by Federal Judge R M Gibson today cleared the for the sale certain the Bank to the Pitt National Bank and Robert R. Gordon, receiver ized the former Diamond lease Bank quarters to the Pitt National Bank. The receiver of the Monongahela National Bank was also thorized to make the necessary transfer Depositors of the Diamond Bank will be orders on the new for 40 per cent of their claims and deposiproven of the Monongahela Bank tors will receive orders for 65 per cent of their proven claims. depositors want cash for If the that will be available when the new bank plans approved by the United States Controller of The new bank will have capital and undivided profits of
Hunter Succeeds G. H. Ahlborn Who Is Made Assistant Pittsburg Bank Receiver Hunter, Altoona, was appointed controller the Blair county CWA, fill the cancy made when George H. Ahlborn, Altoona real estate and business man, resigned his position become assistant receiver the closed Monongahela National bank, Mr. Ahlborn enters his new position today. The Mr. Hunter announced by Woods Beckman, local CWA administrator, Saturday In going to Pittsburg, Mr. Ahlborn returns to his city. He came Altoona 1923 an ditor for the Baker estates and continued in the capacity until when was appointed treasurer of the estates. He served in similar capacities for the following subsidiaries: Woods Beckman company. Blair Home Altoona Home company and the Home Water SupIn July, 1931, he was appointed manager and assistant secretary-treasurer the Bankers' Mortgage company this city. He remained in this work until recently when he was appointed by Beckman assist in the Mr. launching of the CWA. Mr. Hunter veteran accountant Altoona known as an outstanding expert in this work. DIES AFTER WEDDING PITTSBURG, Jan. Bedell Suydam, guest at the ciety wedding Miss Betty Chambers McKay George Warren Wyckoff Elmira, stricken with heart attack upon leaving the reception last night and died few minutes later. Suydam, business executive, was 57. H. E. CRUMBAKER, Dentist, Room 20, Myers Bldg., 12th 12th.