Article Text
BANKS MAY PAY OUT
Couzens Claims He Was Prevented from Giving Additional Testimony
(Concluded from page finance in the management of the banks whose affairs came before him." The findings the judge, made Monnight after conclusion of testimony, were that there was evidence of criminality moral turpitude in the conduct the banks, and that the institutions were solvent the time they closed. "Prosecutor Harry S. Toy. however. quoted as saying the grand jury hearings forever disposed of holding companies for banks." said the senator's "The holding company plans for the control of banks never should been permitted and the creation of them was obviously for the purpose of getting around the intent In his first appearance before the jury the senator criticized the "orgy of through holding which, he said, large extent for Detroit banking difficulties. He had defendthe government's closing the banks. and stated that officials of institutions knew their banks were insolvent long before they closed. "My primary object continuing this, what many people call some fight, prevent by statute and public opinion possibility recurrence of these conditions," said the statement. "While may be nied forum in my own state, have the senate forum to expose and discuss unethical and improperpractices. tend to available means command to inform the people the banking practices engaged in all Detroit banks, and the the Detroit Bankers company and the Guardian Detroit Union The statement of the senator declared that up to this time, have not but fraction the reprehensible practices engaged they will have patience to pend judgment the Detroit bankers until all available information mitted, have no fear of the ultimate verdict of public opinion," said the senator.
Text of Statement
The statement follows the grand jury has concluded, liberty matters which not feel free discuss while the grand jury was was nothing in the grand jury hearing which any way, understand affected payoff There much money as the receivers had, with whatever amount the reconstruction finance corporatation could advance on adequate My advice from the comptroller of the currency was that his concern over the jury hearing related only to the openof the old press reports now seems that the drive to get much money for the through from the possible, and with that in hearty accord. When comes the consideration of whether the old banks are to be opened obvious that the comptroller of the currency must take into consideration who are run the and when they are opened That was the emphasis made by the comptroller of the rency the several talks had with him, plus, of assesshe had made and which are being the courts. "Prior my going on the grand witness stand all had in conference with bankers and in writing plan the First National bank. On August 1933, Mr. Edward McDonald Miller. Paddock and Stone wrote letter inclosing copy plan for reorganization of the First Mr. of the and of the currency Mr. MacDonald's letter said: relating to sessment liability modified (although the plan was not rewritten) the further suggestion that the assessment stand levied 100 percent. 10 percent to be paid cash and 90 percent in the earnings on stock allocated to the depositors until they were paid full.
Another Letter
"Then on August Mr. MacDonald wrote another letter which he plan for the the First National only change of any consequence is in Paragraph two, which in effect withdraws the proposal for compromise of assessliability. The features of this ment plan were vigorously objected to Comptroller O'Connor me over the telephone primarily the sessment not to go positors. but was retained by the stockholders. This being the last status of any negotiations, correspondence the banking group, of course did not know was contemplated by them only to for payoff through advances from the "This, therefore, seems to me to leave the matter ready immediate action, on assumption. press reports are correct, that the the comptroller and the through have concluded their appraisal assets sufficiently to them how much they can adfor the payoff. know of no vance reason why this cannot be immediatedone "When it comes to consideration of the the old banks, however, if consideration to be given to then vitally important to the government, to the depositors, and to people as to who the bank. Let us look for moment to who are responsible for the of the Detroit Bankers that who signed the notices stockholders the Peoples' Wayne County bank, First National bank 'in Detroit. Detroit Se. curity Trust company. Bank of Michigan and Peninsular bank This circular. dated October 1929. urged the surrender stock in these state and national and trust companies for stock the Detroit Bankand signed Julius H. Haas, John Bodde Emory W. D. Dwight Douglas, Ralph Stone Albert Green, Mc. Pherson Brownsing John Ballantyne, Livingstone, E. J. and H. Hits Holding Companies sincerely regret that Judge Keidan, his opinion, did not with the orgy of high finance in the management the banks affairs came before him. However, according press reports night, Prosecuting Attorney Toy quoted as saying the grand hearings forever disposed holding companies for banks. The holding company plans for control banks never should have been permitted and the creation of them obviously for the purpose of getting around the intent the hope there no misunderstanding between Judge Keidan me. wrote him the following letter on September 15: gather from the press that you have concluded the ing the Detroit Bankers National Detroit group, are now proceeding with the Detroit Union group. During with Prosecuting Attorney Toy pressed the hope that might be permitted to go on the witness stand to submit new evidence in connection with the Detroit Bankers First National Detroit group, before you concluded, other before started with the Union Detroit group. that seems not have met your view have considerable evidence concerning the Guardian Detroit Union and am writing to ask you for permission submit this before you the grand jury hearing. May have advice as may be permitted to testify?' "On Sunday, September heard indirectly that Judge Keidan proposed the jury September 18. Learning that Judge Keidan not in his 16, the day my letter should have rived there, alarmed for fear he would close the grand jury before my letter was received. which in all probability would not receive until Monday morning. September 18 therefore contacted him Sunday night and advised him had writen this letter and asked that be permitted again go on the witness stand. not only reply the charges that had against me during the past month. but evidence "Judge Keldan disinclined to do this but an with me Frank Couzens' home at September farm to keep Judge Keidan then argued against appearing on the witness stand for the reason that might introduce new which would cause the bankers again quest and fur. ther delay the conclusion of the grand jury we left he advised me he would think over m. Monday telephoned me that would permitted the but my evidence would replying to those had attacked me since was last on the witness he would not consent to any other of being anxious to have that opportu"Later in day, that is. before went on the witness with Judge the testimony advised had not at that time been able secure transcript of the testimony given by Longley and Kanthe previous September the testimony that had been the morning of September Then Judge Keidan handed copy testimony taken September contained approximately 100 have an opportunity before going on the witness Neither to see transcript the taken the was submit all the testimony had collected particular respect Guardian Detroit Group. nor marshal my facts the statements made by