gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
932d98c03155efe6
Response Measures
None
Description
The bank experienced a run in July 1932 and later suspended during the March 1933 banking holiday, after which it failed to reopen and entered receivership.
Events (4)
1.July 27, 1932Run
Cause
Rumor Or Misinformation
Cause Details
Alleged communist plot to circulate false rumors and whispering campaigns to trigger bank runs.
Random Run
Yes
Random Run Snippet
false rumors circulated by radicals to cause runs; part of a plot
Newspaper Excerpt
I am very much encouraged because we have had plenty of runs against the big banks... the Union Trust and Cleveland Trust in Cleveland
Source
newspapers
2.March 1, 1933*Suspension
Cause
Government Action
Cause Details
The bank was denied a license to reopen following the March 1933 federal banking holiday.
Newspaper Excerpt
licenses withheld from the largest banks, the Union Trust and the Guardian Trust Co.
Source
newspapers
3.July 1, 1933*Receivership
Newspaper Excerpt
For the receiver of the Union Trust company, Cleveland, $47,241,440
Source
newspapers
4.March 27, 1934Other
Newspaper Excerpt
CLEVELAND BANKERS UNDER INDICTMENT... Nutt and Baldwin specifically of four entries... designed fraudulently mislead depositors
Source
newspapers
Newspaper Articles (24)
1.July 27, 1932Evening StarWashington, DC
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Article Text
PLOT TO DESTROY BANKS REVEALED Radicals Sought to Stir Up Revolution by Wrecking Big Institutions. (Continued From First Page.) and the white collar stiffs of his faith in banks the sooner we will bring about the unrest that will lead to the revolution. "All of the other activities, Campaign. Unemployment Councils, Workers Exservice Men's League, etc., are going forward satisfactorily. "We will all hope to see you in the near future as we know you are in a hot spot. Yours for the revolution." Reports Detroit Progress. A letter written to "Dear Comrade GH" read: "I am very much encouraged because we have had plenty of runs against the big banks, particularly the big five in Chicago, meaning the First National, Continental Illinois, etc., and the Union Trust and Cleveland Trust in Cleveland and others. My work here in breaking down the outpost of the banking structure in Detroit by breaking the First National here is bearing fruie. I have talked to a lot of the tellers and others in the bank and they sure are discouraged, which means good news for us. Our telephone propaganda is working wonderful. I have considered this program for a simultaneous run against all of these institutions through the country and can see that it would be almost the final blow against the banks, but I cannot see how we can get them all going at the same time. Believe me, comrade, I sure have the president of the bank here on the verge of a nervous breakdown or something worse." The reference in this letter to the "outpost of the banking structure in Detroit" was the affiliation of First National Bank in Pontiac with the Detroit Bankers' Co. of Detroit. Police and Federal authorities at Grand Rapids, Mich., revealed that they have obtained copies of an unsigned letter purporting to instruct radical workers to carry on a campaign against banks. This letter said that "early September, when vacationists have returned, should prove ideal" for a concentrated attack. TRAYLOR CONFIRMS DATA.
2.July 27, 1932The Buffalo NewsBuffalo, NY
Article Text
RADICAL HUNTED
Directed Runs on Through Attacks, Police Say.
PONTIAC July out orders Wednesday for arrest George Rowland charge that he acted the Detroit agent radical which planned social revolution by the circulation rumors banks the police said Tuesday revealed the ramifications Ira H. Marmon the state telegrams seized land had directed the mors against banks Illinois, Indiana, Ohio Michigan that he had against First National bank from hotel said, method the Agents the ring going cured the names prominent businessmen from the called them warned them that the banks which their money posited was Some the captain so they could not Letters Rowland. but taken. These Marmon asked for reports progress campaigns and suggested procedure. One which had been written Rowland Comrade HG" Cleveland. read: instructions to writing give you the You proposition get people steamed for program seems ing out There here and informed by both Union Trust and the CleveTrust We have tried to keep up good work.
3.July 28, 1932Times Record NewsWichita Falls, TX
Article Text
'RED' PLOT TO BREAK BANKS
Organized Groups in Russia And Believed Back Of
DIRECTOR ESCAPES
Campaign of 'Whispering' Designed to Cause Runs on Bank
PONTIAC. Mich., July 27. plot against large banks of the country described by the state lice officer who unearthed it "bold scheme to wreck the banking structure of major cities" by circulating false rumors, was revealed here today coincident with order for the arrest the man who directed its activities. George Rowland, said to be the director ring cause failure of banks by resulting from rumors they the object of search. Marof police his hotel room here Tuesday and found letters telegrams which showed the methods operations of the described in some quarters composed of radicals seeking naOrganized by Communists prosecuting torney declared plot was Communist groups in United States and backed by Soviets in Russia." Marmon that Rowland the agitation Ohio, Michigan and Illinois." ring directed against the First National bank, officers which recently appealed depositors support the bank after assuring them condition sound. Letters Rowland's room seized Captain the active Cleveland Chicago and ported him. Melvin Traylor president of the bank Chicago, meanwhile said that city reports from every large city the country showed that campaigns rumors have been directed banks. Activities Revealed Washington advices said the spreading such rumors against banks receiving the attention of the United States secret in told of the Rowland's agents Cleveland against the Union Trust company Cleveland Trust the Chicago, referring the First bank other institutions there. Practically the letters "Yours the One written Cleveland, said 'Referring the circulation the false have much trouble ing propaganda this important and the sooner strip the petty bourgeois the collar stiffs his faith banks the sooner bring the that lead to the revolu-
Plan Doomed Another, Rowland to "Comrade Cleveland. vealed that plans the ring bring about the country apparently doomed have considered this program simultaneous run against all these institutions and other key institutions through the and would be almost the final against the get them all telegram from Chicago were signed only "Much here. Considerable jugs in Workers and spreadaccounts panicky. This bring results. Party curing but slow Big panicky Will write all details.
4.March 14, 1933The Akron Beacon JournalAkron, OH
Article Text
ADDITIONAL TUESDAY
Institutions With Deposits Of Over Billion Active In 15 Cities
(Continued From Page One) most of those which remain closed temporarily to be are organized. That task already has been started by few of the larger banks denied the funds they presented problems individuals and business alike.
Provide For Loans The Cleveland arranged have industrial money frozen funds payroll poses. problem there greater due the fact that licenses withheld from the largest banks, the Union Trust and the Guardian Trust Co., whose deposits 31 as Other prepared they were for customers day they received for more than was drawn. Monday with that of an average heavy Plans of the Union and Guardian the called board of meet today Neither institution, would discuss plans further than say they hoped and place on the list of licensed
5.March 16, 1933The Cleveland PressCleveland, OH
Article Text
HELP GUARDIAN AND UNION REBUILD
Federal Action Taken to Speed Fund Release to Small Banks
TERMS ARE WEIGHED
Set Up by Invited President
By JOHN R. MARKHAM
The Press Financial Editor With reserves of hundreds of small Ohio banks tied up in the Union Trust Co. and Guardian Trust Co., representatives of the Treasury Department and Fimance Corporation are taking an active part in reorganization plans, was learned representative the R. has been called in by the group tive in plans for the reorganization of the Union Trust Co. and an examination its financial condition being made to determine just how much funds could be obtained from the federal government. House, president of the Guardian Trust Co.: in statement today said the bank's special committee on reorganization had been devoting constant attention to development of plans, but new national and state legislation made progress difficult. Definite plans for reorganization will not be announced these are clearly he said. Officials of both banks have been assured that the national administration the fate of many small Ohio banks is tied up with and possible for Currency Meanwhile, was reported at the Cleveland Federal Reserve Bank that there had been no call for the new currency authorised by emergency banking act. from banks which had reopened fully in Ohio. Nine Ohio banks were included in list which the Reserve Bank here authorized to reopen today. "For some time special committee of the board of directors of the Guardian Trust Co. has been devoting attention to the development of plan for reorganization of the bank in whatever manner is best designed to preserve the interests of its depositors and customers, said Mr. House. "This committee has the unanimous support of the board direcLOTS and the executive officers of the fully aware of the desirability of prompt action and is proceeding rapidly as possible with the of its legal counsel, but the present time number of new laws which have been passed, both Washing ton and Columbus, together with banking bills pending in the Legislature, make progress especially difficult, Waits Study of New Laws
"The committee will not announce definite plans for reorganization until these new laws can be clearly understood. 'Pending adoption of definite plan, the committee refraining from public of the details of its progress. Recent experience in other cities that premature reof banks do real harm to community Such statements lead the public to expect certain results which later fail to materialize 'When the plan is formally its full performance will have been in vance its publication. In the meantime. with the full "support of the officers and directors of the bank and with the advice assistance of many of its leading shareholders and depositors. the committee is proceeding in its work and cautiously under the advice of its legal Union Trust directors held meeting yesterday and heard terms under Turn to Page 10 THE WEATHER
6.March 22, 1933The Cleveland PressCleveland, OH
Article Text
MOST ANYTHING pretty trouble.
Cleveland sentenced the the Municipal always Finkelstein hasn't served single day Now comes Keith Wilson an him serve the tences. We effort, judges sentenced said Herbert Hoover know the United said Republicans Ogden, may come Utah and make political speech will worth listening to practice
We that Prof, Busch speaks Halle's subject upon money the Bank goes to Stirling When officials and rectors banks that we'd like know where
We know SOME the SOME banks goes, but the editor The Press doesn't like have us use word.
The Depression Busters' Quartet, left New York month ago banjos tour of the counmake people off know why the quartet Probably on account the depression
Well, Little Man. the Ohio House you yesterday favor the feated that would help the Cleveland light Sweat Little Fellow, You pay your legislators but not many them work for
Hurry with that beer want rent the Union Trust lobby and start
And baseball doesn't turn mebby can the from the Bradley there. would easy enough to the fight writes "Suppose that all should the same that their cradle phones be
We this moment lamped the papers that Union Trust depositors' had been formed. Boy! Call Frank and he knows who helped form
The Cleveland Plain Dealer advertising 'Something Happened While Yes, and know what Bank decided give and cent of your posits.
Be that attorney in Chicago, An officer Standard Bank "under technical though liberty. Standard Bank "busted" months one under "technical while the State Banking partment brought no suits till politician has for Bill Eirick, the (the not Arthur) the think control the assets the Union and should be taken the hands condition of these banks
7.March 25, 1933The Cleveland PressCleveland, OH
Article Text
SUES UNION TRUST AND STOCKHOLDERS
Woman Depositor Asks Judgment of $22,850,000
Mrs. Frances depositor of the Union Trust Co., today filed suit against the bank and all its stockholders, asking judgment of $22,850,000, the capitalization of the bank. The petition asks that this judgment be divided among the positors and other creditors of the bank appointment special receiver handle the judgment. to fully pay the dépositors and of the bank for the extent the amount the par the in the stock, the suit charged. that defendants any capital of the bank has transferred its books since Feb. 25, 1933. asks that names all persons whom stock might have transferred be given to the court.
8.March 29, 1933Chicago TribuneChicago, IL
Article Text
CONSERVATORS TELL DETROIT BANK CONDITION
RevealDepositDrain on Closed Units.
[Chicago Tribune Press Service.] Detroit, Mich., March Thomas the First National bank, Detroit, following permission from Washington, D. toreleased statements showing the condition bank on Dec. 31. 1932, the report made Feb. 11, the year, the day the bank for business, March 13, the day the took statement the Guardian Bank issued by Conservator B. Schram. Figures indicate that deposits of the First National decreased nearly those dates, and decreases in the Guardian National amounted approximately $27,000,-
Deposits Normally Dropped. explained, however, that deposits January February dinarily were the low point of the cash being withdrawn accounts holiday penditures and heavy withdrawals accounts in connection with the introduction of motor car models. Efforts will be made by Conservator George H. Kirchner, to continue the Union Guardian Trust going concern. An audit of the combeing made and in the meanall of the banking will suspended pending the examination. Harry was today appointed of the Detroit Trust company, of the largest and oldest institutions the middle were named today the Equitable Trust company Detroit. They are Myron W. Neal and Ralph Lane. Committee Wins Concession.
The committee of seven. headed Police James K. kins which last week went WashIngton the interest the First with conces sions for depositors. tentative understanding was reached between the committee and federal officials which three direct benefits These reduction in the cost per share in the new National Bank of Detroit of which the governhalf owner from $50 the two old banks permitting increase from to per cent in the funds immediately distri butable: and unhurried and orderly the slow assets of banks, may realized. Whether certain, not yet known. The avail. been fixed per cent of deposits, including per cent payable. accounts the Detroit tinues such an extent that extra tellers assigned to handle the Monday, 750 depositors opened for of nearly for the day. Cleveland Seeks C. Loans. [Chicago Tribune Service.] O., March Reconloan permit the Union Trust bank will sought Washington tomorrow by Cleveland Appraisal of the bank's assets was completed chairman, the Cleveland Federal Reserve left night. understood that the plan approved by the calls for R. funds in capital. Completion of the appraisal and the decision to to Washington followed reports the Union Trust company Guardian Trust company, another large Cleveland bank which did not federal license to reopen. was under consideration.
Deposits Total $138,000,000.
Mr. Kraus that deposits of the amount approximately as compared with in the weeks preceding and the first are approximately 250,000 depositors. Organization of new bank to place the present Guardian Trust comwill national indicated today when President Harold Burton replied depositors' committee suggesting information of state bank. Senator Bulkley tonight expressed belief be pointed for the banks.
9.March 30, 1933The Plain DealerCleveland, OH
Article Text
NEW BANK FIRST NATIONAL
R. F. C. and City to Raise $10,000,000 Capital, Is Announcement.
(Continued From First Page) ready Chairman Joseph R. Kraus and Jones this would be say sible by the end of April," said "The big arrange for subscription of $5,000,000 stock. "Probably what happen will that about 100 large depositors the comstock issue and will then be thrown We open anticipate no difficulty in this direc-
Helped by Loan.
Jones pointed out that the liquidation problem easier by the R. loan, against which will pledged slow assets have to be for or prices. the treasury in appointment the presence in toState Commerce Director Tangeman consulted State Banking SuperintenFulton by and announced ordination the Reconstruction Finance the treasury. and the State Banking at CoSuccess the plan rests entirely the that must subscribed anticipated that perhaps 100 others underwrite the stock issue and that then will thrown for general subscripbank officials expect difficulty in achieving The to raise the money will launched and immethe of the charter the First National Steps earlier taken reserve the name, through Senator Robert Bulkley with Congressman Chester been operating the and other that new bank be for the tremendous give public confidence the city and throughout The organization of the bank, its board of directors and officers, must by the has not been the policy of the repthe interfere in the but the personnel.
Says Attorney Accept.
It predicted tonight that Cleveland reached become the chairman the board the new bank and Kraus would become its The National Bank rent Trust Building organizes will have no fixtures or physical property on its Excited and joyous, Clevelandafter spending the entire day of Jesse telephones to flash the depositors the organization meeting of the board directors of the Union Trust Co. was called for 10 and of committees The Cleveland started back to Cleveland tonight.
Woodin Consulted.
The approval of Secretary William H. of the by Director Finance this with the the treasury from his with returned program the of the R. and then rejoined plete and prepare an after 6 evening when Kraus and Director Jones the plan. Kraus gave oral statement newspaper men. Jones made the following official statement Corp. bank take the liquid assets the Union Trust and succeed to part of the business the company agreement the Cleveland that the capital the shall not nor the Finance Corp. taking one dollar preferred dollar invested by the Cleveland citizens.
Insurmountable Problems
There been no problems in the nego'Secretary Woodin has approved commitment The who conferred Jones were Chairman Trust Vice President Robert S. Crawford of the Union Trust George Humphof the Hanna president attorney chairman of Cuyahoga County Thomas Tolles, deputy chairman the Federal Reserve and Sidney Cleveland for Finance Corp. The plan accepted not original brought proposal submitted began Director Jones this was that they preferred and that the R. should make the old bank loan of $15,000,000. countered the policy which Jones laid down in charternew bank in Detroit and which Clevelanders found would not change, having the match dollar for dollar in taking preferred stock. The Finance would not agree subscription. figand new calculations. The ures sult was the plan eventually approved that the R. F. should match dollar for dollar from minimum capitaliza up capitalization of $20, and that the loan the old bank be $20,000,000 instead of
The speed with which the all one result and realization the meant to Cleveland busifor posits the Union Trust Co., the average in funds for ment taxes general use, eth extent of in probably next the Clevelandthe ers home tonight overjoyed. The Clevelanders, who had and dickered all day, benegotiated deliriously suspicion moisture the of Chairman Kraus the Union Trust Co. after the to with the light of newspaper bright the winin what used to be the Department of Comclasped the hand of Director Jones and said: partner Texan who The settled acute bank had one and was get his this handshake. which celebrated the entrance the Uncle new First National Bank, proposed 'Give good failed when his enthusiasm for Jesse Jones, his for the large part by Congdon about the and his bringing deep thanks and Humphhe said, had stood by him since the night reopen the Union Trust turned Cannon and Humphrey here citizens of Cleveland. interested having 100 per cent. banking facilities for the an interruption for the Clevelanders the entire day ninth floor the of office of Director Jones, concluding the day the office formerly occupied Pomerene former chairman of the board.
Celebrates Birthday
It coincidence. not only that of the was prepared in the office cupied by the former chairman from but the climax of Chairman Kraus' 53d birthday 'It to Kraus the Director Jones gave out the formal announcement. am tickled to he "Mr board tors ent able the idea the Finance board in matching They in another direction, will up to can raise will minimum of and that will matched by the R. by like preferred order may make 35 per addition the 5 per makes the has to lend the old bank $20, "Those together with the proceeds of liquid assets of the old bank taken over by the new bank want to phasize at provide the for that per per paythe credit of the depositors Careful Liquidation.
"The old will be and the best the depositors The next thing raise among depositors and then and the will start We have already made application for name First of for the Cleveland. has wonderful help. Give him all the possibly He has been wonderful help. Mr. Jones been wouldn't supposed could be done in one day This Jones certainly knows his business. He's marvel. There hesitation much for Mr. and Humphrey. They stood by me since the night was down Kraus He looked like man through much The 35 be freed Kraus and the per cent. already on restriction an additional $4,000,000 for Other Banks.
Kraus pointed that addition for and other the be facilitate The Trust by northern proximately 150 of which have been unable Cannon said that $200,000 in relief serve funds Trust and that 35 per cent. of these now Senator and Congressman been operating the Elyria. help restore banking ate the cilities, delighted with the the result. assets delighted has gone There doubt will great deal Bolton thought proposition both and liability am much he stimulating and beneficial effect on Cleveland and all northern While the Cleveland plan is like the Detroit plan in involves lages, of dollars the Recon- 25,000 struction Finance with Cleve- cities citizens. differs in that the At Detroit involved the national banks and the of one new one.
Gunmen Rob Woman Waylaid by three armed who men followed apartment 1906 Ctreet Miss Valeria Van robbed of $11 last She told police the E. 63d Street and Euclid
10.March 30, 1933The Plain DealerCleveland, OH
Article Text
AGREEMENT OPENS
Union Plan Approved, R.F.C. Manager Tells Burton to Prepare for Showdown.
(Continued From First Page) Cleveland that simiton and results be achieved larly rapid may by the its condition condition did not mits. Even permit similar action, said, the possibility with the new First is not fantastic. that his Burton bank would the with the that John K. chief to examiner. These proposals called for separate, nabank. Coulton, chairman said last night that had talked by Joseph Kraus, chairman the Washing and had called rectors' for today consider in the Bank. Coulton said no questions personnel of the new had been discussed could be, the was established. The first thing that must of institutions subscribed by local capital. "After that." Coulton said. 'the stockholders the will, of course, elect the directors of the While has been expected that the the First National will than that of the the final decision its officers will be had the directors elected by its stockholders. In this. the federal authorities will have great and probably since the government supplies half the money
Lorain Still Working.
Carl Schaefer of the reorganization committee the Street Trust large unlicensed bank, said last Our committee diligently ing. and will have completed The Lorain Street works under somewhat different circumstances than the Union and Guardian, since all three are state banks, Union and are Federal and the Lorain Street Heads of the licensed banks of the city and officials were unanimous their approval of the creation the new and cptiits effects on the city and the general Gov. George White, reached at Cohappy over the fact that the bank officials and the government have been work out seems workable the great also the direct effects will have on much of the rest of the state." Mayor Ray Miller said am happy the tion of for the clearly going help inand and aid the increase industrial and the release rolls to the citizens of the community
Congratulates Kraus.
Corliss chairman the the United Nathe largest national the am extremely happy to hear that the Union Trust has been able reorganize and establish the bank. It thing for been and hoping for for want particularly to congratulate has handled himself in remarkable and has done extremely remarkable job under the most trying circumstances. Harris president of the Trust to the and glad hear the the committee down Washington. John H. president of the Society for am happy hear the the will be extremely beneficial to Cleveland and northern Ohio. The Union as of part general plan strict economy pending the yesterday seven its 21 offices and them with other branches the vicinity Today will three those Lorain and W. 93d Street. Cedar Road and Lee Road, Buckeye 118th respectively to 101st Street and Road-E. 89th Street.
Authorize Debentures. conference committee the General yesterday the the Baker bill include appointment for financially embarrassed banks and section authorof capital notes and debenture instead of stock, the provision the bill Saffin, torney for the the need ed conserv immediately prenumber banks which failed to qualify for Saffin said the authority much affairs Akron and The would under the rather than throw the The capital and debenture banks borrow organize could not their which carries disagreement between the Senate and the House the capital for opening banks adjusted by setting this For from 5,000 in for over Akron the officers of the FirstCentral Trust seeks create received Dow that Secretary the William H. would give the Akron immediate personal attention Sterling president the expected the decision the Cramer expects to ing rapidly.
Washington as it is complan for creatpleted present bank and ing the new of loan expansion to assist in the liquidation of the picture was State be. altered in Representative ing William Eirick Cleveland yesterday demanded that the State Banking Department condition" the public the Guardian and the the The demand was in letter to Fulton.
Eirick's Letter letter part: The public official can stand on custom, personal nothing the face fense calamity as city banking passing through. ask and Therefore, department the and as las: of your Surely the deserve know depositor there talk of cannot be new pected of the conrefer to the pubalthough patient, worried reflect restless savings Acand demanded by atmostion is Bank, formerly the has Canton Bank been the liquida will third tion This 40 per distribution cent.
11.March 30, 1933The Plain DealerCleveland, OH
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DOUBLE LIABILITY, DEPOSITORS SHOUT
(Centinued From First Page) termination as to the distribution of these between paper and real estate He gave resume of the with41 the total bank depostis the last two years, which ended when the recent restrictions put in force by the leading Cleveland whom have been able to Loftus that the Union Trust liquidated much greater advantage other institution the United States obtaining funds meet the withdrawals 55.48 per its deposits two years had real assets pointed out that the alternatives confronting the depositors were between per whatever figure present the federal authorities permit, at this time, gradual liquidation of other assets, number of probably under the direction 'strangers' from Washington who might the bank's assets unwisely. they might not be familiar with the local situation
Show Impatience
He said the committee had been meet of the Union including Kraus and Allard Smith this morning. discuss the present plan. which falls under the first mentioned alternative evidenced impatience this jority for "quick money' rather than larger amount in the long run "What you haven't got any money to buy woman asked. wait seven. or eight another person Loftus' words long insure return on dollar by liquidation. He made attempt to reconcile these statements his earlier declaration that assessment of double liability would the two large banks out in full on pay their deposits
Questions
Loftus whether the city was willing to admit that industry had shrunken per cent and per cent less banking He advocated application to the under the Bulkley bill, under the Union Trust's present plan, on an unsecured give them chance tell us, We need any than your and the faith and your tors their ability to repay us, present form. are In position to lick the bankers and get 100 per someone because we enough facts,' Loftus replied. The has met with ofand Lorain Savings & Trust Co. as well the The meeting adjourned until morrow night, when the depositors will East Technical High School Themas Martin. member the Board of Education can oh. tain the the there was taken the of the sec. ond Herman Ruthenberg, defray the $100 cost of renting the George H. Bender former stadium commissioner and legislator ganized the depositors' committee appointed Moran and Ruthenberg as assistant respectively, in recognition of their sponsorship the collection, and they passed among the crowd, which contributed Lewis Drucker and Dan H. Wasserman, attorneys Allen Martin also participated the meeting. All are members of the
12.March 30, 1933Pittsburgh Sun-TelegraphPittsburgh, PA
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BANK-MARKET PROBE ASKED
WASHINGTON M 30. INS Asking that the records of Cleveland brokers be subpenaed to "see whether bank depositors' funds had been speculated with,' Rep. Young Dem.) of Ohio, today supported the demand for investigation of the conduct of banks in the larger cities Young joined Rep Sweeney (Dem. Ohio. urged the Senate stock market investigating to inquire particularly into the affairs of the Union and Guardian Trust Companies of Cleveland.
WASHINGTON M AP government today had agreed to lay down dollar for dollar with Cleveland citizens in opening new national bank there to replace the Union Trust. the city's second largest bank committee representing Cleveland banking interests headed by R Kraus chairman of the board of the Union Trust reached satisfactory terms with the Reconstruction Corporation after day conference yesterday
13.April 27, 1933The Dayton HeraldDayton, OH
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.
14.June 26, 1933The Bismarck TribuneBismarck, ND
Article Text
Kenyon V. Painter, above, Cleveland capitalist, has accepted judgment against him for $3,158,855 in a suit brought by the conservator of the defunct Union Trust Co. of Cleveland. A director of the bank, Mr. Painter, was revealed as a borrower of this amount from it. He said he had borrowed to buy more bank stock to uphold its price.
PUBLIC OPINION AS INDUSTRY PROD SEEN
15.August 4, 1933The Cleveland PressCleveland, OH
Article Text
UNION AND GUARDIAN now has before the complete and failure of the on the operation Union and Guardian banks. may study this information as bearing on the fact that neither bank was able to surmay study the two vive the depression. banks compared to each other.
Before the inventories were filed. more was the Guardian than about the that the SenUnion. This committee has investigated ate investigating the former but not the latter. possible now to make comparison which not based the weight of publicity.
In making this comparison must be membered that the Union peak was much larger bank than the Guardian The Union peak. $310,000,000 bank The Guardian $150,000,000 bank In both banks the inventory shows. the bottling up of credit enormous loans was one the strong factors to the downfall. this regard the two banks were about proportionate, with the Union perhaps somewhat the worse off. Of the total was owed the two banks the Van and Eaton $20.000,000 was owed to the Union; $8,000,000 to the Guardian.
In the matter of written-off loans likewise the Union has the poorer showing More than $9,000,000 of loans written off The Guardian wrote off $1,674,000 But the erred largely than the Union the creation of subsidiaries. appears from the Guardian that every bank got into trouble the result of bad management. created subsidiary to cover the situation
In these subsidiaries, the money of depositors used create companies which profitable to the directors and officers of the bank
The records indicate also that the Guardian Union loans to its officers and directors and loans to companies in which officers directors were interested The list loans directly to officers directors Union totaled the bank less than half the total $4,500,000. That neither bank should have loaned any money all to official family fact which the crash made patent and fact which was account the practices of many compared the Union the Guardian had disproportionate number unsecured loans the loans themselves were disproportionately large.
The length of time allowed these unsecured the There five-year unsecured loans books. The average mortgage and the average the Guardian larger than the Union
By studying the facts which have been published out the voluminous pages the ventory the Clevelander may decide which the two banks was the
That both were history has shown inventory reveals nature their weakness This revelation important valuable will provide material for reform of the bank will serve lesson to other banks will provide of civil action recover for the depositor the vast still outstanding
16.August 23, 1933Pittsburgh Sun-TelegraphPittsburgh, PA
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Cleveland Bank Face Probe Closings
CLEVELAND United States District Attorney Emerich today nounced an investigation of the closed Union Trust Company and Guardian Trust Company would soon United States Department of
TO RESUME HEARING CLEVELAND. Sept. The Ohio Senate which an inquiry closed Ohio banks will reconvene here late today the closed Union Trust Company.
18.September 11, 1933News JournalMansfield, OH
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R.F.C. APPROVES OHIO BANK LOANS OF 74 MILLIONS
Receivers of Two Closed Cleveland Institutions Granted Bulk of Sum by U. S.
WASHINGTON, Sept. 11. Loans totaling $74,375,390 to Ohio banks or bank receivers was authorized by the the Reconstruction Finance Corporation during the day. Included in this sum, the corporation reported, was $125,450 authorized as loan for the Farmers National Bank of Bryan, which did not ask for the loan after obtaining authorization. The R.F.C. also issued a report on approximately $700,000 in loans authorized during the period July 21, 1932 to June 30, 1933, which were withdrawn or cancelled.
The authorizations during July included the following: For the receiver of the Union Trust company, Cleveland, $47,241,440; for the receiver of the Guardian Trust company, Cleveland. $26,950,000: for the Middle Point Banking company. Middle Point. $2,000: for the Oak Harbor State Bank company, $56,500.
During the period July 21, 1932 to June 30, 1933, the authorizations and amounts withdrawn or cancelled were: for the receiver of the Ross County national bank, Chillicothe, $26,100; for the Farmers-Merchants Deposit company, Swanton, $3,000.
19.January 26, 1934The Seattle StarSeattle, WA
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Owes Three Millions, Birds His Only Asset CLEVELAND Jan. When searchers for possible "hidden assets' of Kenyon W. Painter, Cleveland philanthropist and big. game hunter who owes the failed Union Trust Co. here $3,000,000 deployed thru his property they found the only remaining attachable assets were A dozen cackling hornbills, cockatoos and parrots, for whose care Painter has employed housekeeper. motley collection of a dozen stuffed animal heads, now 10 years old, stored in stone shed. N. B. Madden, attorney for the closed bank, scratched his head doubtfully over the desirability of acquiring either the stuffed animals or the live birds.
20.February 14, 1934The Maryville Daily ForumMaryville, MO
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Joseph R. Nutt Sued
Cleveland, (AP)—Suit against Joseph R. Nutt, former chairman of the now closed Union Trust company and former treasurer of the Republican national committee, was filed in common pleas court here today, asking a judgment up to $165,000 because of his alleged part in the making of a "wrongful" loan to one of the bank's vice presidents. State Banking Superintendent Ira J. Fulton brought the suit against Nutt on the behalf of the bank's depositors.
Two Die In Gun Battle.
Amarillo, Tex.—(AP)—Chester Grounds, 25, policeman, was shot and killed here and Clarence Hammonds, 31, ex-convict, who fired the fatal shot, was slain by police as he resisted arrest while attempting to escape.
21.March 27, 1934The Marion StarMarion, OH
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CLEVELAND BANKERS UNDER INDICTMENT
(Continued from Page One) prompt expressed belief whole thing must Green said his the pension fund was that that the fund was by board trustees House declined to comment. The Quardian bank. now the had more than deposit when closed doors in with company the Union Trust company,
22.April 14, 1934The Grand Rapids PressGrand Rapids, MI
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VAN SWERINGEN DENIES COUNT
Railroad Magnate and Two Cleveland Bankers Enter Not Guilty Pleas.
Cleveland, April railroad and Cleveland bankers arraigned pleas court pleaded not guilty indictments for about closed Union Trust Co. Cleveland. April chairman the board of the funct and former and Wilbur Frinight for fraud. ity allegedly cealed the condition of tottering and Nutt Issued confidence of vindication when
False Entries Charged.
Nutt Baldwin specifically of four entries the and Van Sweringen aiding and abetting these The transaccompleted Sept. 29, day financial statement of heavy withdrawals and started while New York conferring with Morgan cials another according He met there, he said, and asked if the would bonds tide the bank crisis. agreed. He also agreed to the money from the in the Union Trust on The bonds were in the Morgan in New York.
Sale Later Reversed. few hours later the financial Cleveland, the owned the bonds and that the VanSweringen deposit had been credited the amount of sale plus interest. Under agreement provided in the was imposthe the Morgan company This did not become necessary, as the reversed slightly more than later. and the account was reduced that The indictments alleged that the entire transaction designed fraudulently mislead depositors as to the bank's
23.May 4, 1934Muskogee Times-DemocratMuskogee, OK
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NUTT IS HELD TO BLAME FOR CLEVELAND BANK CRASH
May to senate mittee that the policies to the failure the million dol. Union Trust Co. Cleveland dictated Joseph R. Nutt he by the Van SwerNutt, former treasurer of the publican national committee. and Van Sweringen, railroad builder under indictment for what investiga. tors term "window dressing" loan the Nutt once was president institution The report naming them was sub. mitted the senate stock market banking committee today Ferdinand Pecora, counsel. held the bank's failure due was banking period Among the named were investment in loans the Van and "loans and their affiliated bad policy and inadequacy of serves. The Sweringen brothers, chiefly and real estate. Cyrus Eaton Cleveland
24.November 20, 1934Troy Daily NewsTroy, OH
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APPEAL IS DISMISSED
WASHINGTON, Nov. 20 (United supreme court today dismissed the appeal of Frances Wetzel, depositor the closed Union Trust Co. of Cleveland, who sought institute against stockholders the institution enforce the double liability clause their stock.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
