Article Text
Allan Found Guilty on Jury's 3d Ballot
Continued From Page One bezzlement from the bank under the embezzlement statutes. The case went jury on the basis of embezzlement under the State The heard before 13 case and draw deterjurors, mine which should be elimHerman Taggert's name selected. defense counsel throughout the trial figured that Taggart against their client, defense counsel, were and his elimination. Mr. jubilant Taggart lives at 14500 Madelleine Mr. O'Hara, in his final argument tribute to the jury, paid which took the the American State Bank, last trial of Mr. Allan followed investigation of several months, the of the State Banking Depart partment, the Attorney General's Department and Prosecuting Attorney's This investigation been completed and additional to sought, to made by Attorney Toy.
Deposits Periled by Run The American State Bank closed doors last March 13, following run which had continuous several months, but which durthe days preceding seriously jeopardized deposits 100,000 persons. the Peoand the ples no money. started on the When run fears entertained $24,000,000 deposits would the but when the placed jeopardy, Peoples joined other members of the Detroit Clearing House the deposits, agreed to The failstrain State Bank greatest failure ever recorded Allan enjoyed romantic caMr. reer. He now 34 years old and positions he has ever held the only American State were Graduating from the UniBank. Michigan 1918, Mr. versity entered lan the Savings Bank, Fairview, which later the American State Bank, third ranking financial institution in Michigan. From an unimportant position small bills, Mr. Allan collector had phenominal rise to the post president, to which of direcelected by 1930. He was the tors January, the youngest bank in Michigan, presidency national publicity and result of his selection.
Takes Part in Mergers Allan became powerful Mr. the financial world, and ure his name was linked most weekly with the merger of other banks in the vicinity Detroit. connected, either director active officer, banks Mt. Clemens, Lincoln Melvindale, Pontiac and East Detroit. Last May Mr. Allan was arrested two warrants, charging embezzlement, defalcation and misappropriation of $412,000 of the funds the American Detroit. He placed trial Nov. 17 on embezzling prosecution holding in reserve second charge of $306,000. This was held abeyance, the the which the verdict obtained. The trial of Mr. Allan became highly technical affair, heard fore composed of seven automobile factory three housewives, retired dentist former Taggert, elimiman nated the had been most attentive notes throughout trial. His eliminawas the occasion for jubiliation on the part of the defense counsel. Jury Charge Lasts Two Hours Due the highly technical of the Judge Skillman devote almost hours instruction to jury Defense counsel, Arthur Schueler and Thomas F. submitted written requests Court for questions. dealt with most of these requests in his The high point of the trial the testimony GorFearnley, formerly executive president the American State Bank, and described as the right hand man Mr. Allan. Mr. Fearnley called by the prosecution on witness stand five days. the argument to asailed Philip Robinson, assistant attorney general and Chester O'Hara, assistant prosecuting attorThe case depended largely upon the testimony Mr. Fearnley, and high tribute was paid to him the closing by attorneys for the defendant. The threat made by Mr. in his that other of the bank, including Mr. Fearnley, would be placed on trial at later date.
Reichert's Acts Assalled Rudolph Reichert state banking commissioner, came much abuse at the hands of defense counsel, the claim being advanced that was responsible for bank having been taken over. when Mr. Reichert was placed upon the stand by the was subjected mild examination by the Further the American State Bank case await calling of the grand jury, which takes duties early the new year, according Prosecutor Toy.
