National Bank (Hudson, OH)

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GUARDIAN FIXES SHOWDOWN DATE (Continued From First Page) at that time should neither interfere with the bank's necessary business nor prejudice its case with the public." Tangeman to Go Along. Among those at the Guardian conference, which was held in the Cleveland Federal Reserve Bank, were Sidney B. Congdon, Cleveland representative of the R. F. C., State Commerce Director Theodore H. Tangeman and State Superintendent of Banks Ira J. Fulton. Fulton returned to Columbus last night, but Tangeman said he would remain in Cleveland and go from here with Congdon and the Guardian committee to Washington. Union Trust Co. officials and department heads met at that bank yesterday to go over the details of the sale of $5,000,000 in common stock, to be matched with an equal amount of preferred stock owned by the government for the organization of the new First National Bank. At noon today directors of the Union Trust Co. will meet to approve formally the reorganization plan given official sanction by Washington last week. Joseph R. Kraus, chairman of the board of the Union Trust Co., who is to be president of the First National Bank, yesterday received word from the Cleveland Stock Exchange that its members would assist in receiving and obtaining subscriptions to the capital stock of the First National Bank. J. P. Drach, president of the exchange, said last night that all stock handled through the exchange members would be sold without commission. "This is, of course, a deviation from our custom," Drach said, "but in this case we feel the quick sale of the $5,000,000 in stock is of vital importance to all of us and, therefore, not one cent will be retained by our members in handling the new stock during this drive." Letter to Kraus. Drach's letter to Kraus read: "The formation of the First National Bank of Cleveland is of decided public interest. Financial and general community needs will best be served by immediate completion of your plan. The sale of $5,000,000 of stock in the new bank is a large undertaking and should have the co-operation of all able to help. "I believe the members of the Cleveland Stock Exchange, by reason of their facilities and experience, can be of assistance in the receiving and obtaining of subscriptions to the capital stock in the new bank and do hereby offer you on behalf of the Cleveland Stock Exchange members our hearty support and co-operation. "The following firms and persons comprise our membership: "Borton & Borton, Butler, Wick & Co., Clark & Co., Curtiss, House & Co., Ettinger & Brand, Fenner, Beane & Ungerleider, Will S. Halle & Co., Hayden, Miller & Co., Hornblower & Weeks, Jackson & Curtis, Livingston & Co., Maynard H. Murch & Co., Merrill, Hawley & Co., Murfey, Blossom & Co., Paine, Webber & Co., E. A. Pierce & Co., Pulliam, Emery & Co., L. J. Schultz & Co., David G. Skall & Co., W. S. Snyder & Co., Wellsted, Macklin & Co., Witt, Krause & Co., Forrest A. Graves, M. H. Laundon, A. R. McClintock, Newton S. Noble, William T. Robbins, S. H. Sampliner and E. R. Saunders. "Please feel free to call upon us." Carl W. Schaefer, member of the reorganization committee of the Lorain Street Savings & Trust Co., said that his bank had expected to have its information ready today to be turned over to Washington authorities, but that a number of details which needed further investigation had made this impossible. He said he expected little delay, after presenting the bank's case to R. F. C. officials, in obtaining Washington's verdict. Members of the fact-finding committee of depositors of the three unlicensed Cleveland banks conferred with Burton after the Guardian conference yesterday. Daniel H. Wasserman, a member, said that the committee had carefully questioned H. W. Mitchell, elected to the committee by the depositors at their meeting Friday night, and had come to the conclusion that Mitchell would work very well with the committee. Mitchell said another meeting of the depositors would not be called until the committee had important information to convey. "The Carter Hotel was very nice in donating its room to us Friday," Mitchell said, "but we don't want to presume on that kindness. Nor do we want to go out and hire a hall without having something important to tell the depositors. When we get that kind of information we'll call a meeting immediately." Depositors of the National Bank of Hudson, O., will receive in the mail this morning announcement that the bank, which has been doing business on a 5 per cent. restricted withdrawal basis since the banking holiday, will open on a normal basis today, with the exception that there will be in force an agreement of depositors to leave untouched 10 per cent. of their balances to cover frozen assets. Teacher to Run Bank. The bank also announces in its letter to depositors the appointment of Clarence Cole, formerly of Akron, as cashier. Cole is moving to Hudson. With the recent resignation of Paul M. Held of Akron as president and the election of H. N. Wood, dean of boys at Western Reserve Academy, as acting president, the bank is now entirely controlled by Hudson residents. The bank's new executive committee is made up of Dr. George A. Miller, M. C. Wood and James G. Scales, all of Hudson. In the second of his talks over WHK on "The New Deal and Banking Reforms," Rabbi Barnett R. Brickner yesterday called for legislation to insure bank deposits. Under the plan, Rabbi Brickner said, all banks of the Federal Reserve System would pay 1 per cent. of their deposits into an insurance fund, so that if any member bank failed the indemnity would come out of this fund. "This," he said, "would make for rigid government supervision. The plan was advocated by Presidents Theodore Roosevelt and Woodrow Wilson, but the bankers' association opposed it. My suspicion is that they did so because they did not want such strict supervision. "Unless some such system is instituted, we will be forced to have nationally-owned and controlled banks. Such a plan would prevent runs on banks because people would know that they could get their money whether or not the bank was open." Rabbi Brickner, speaking of bank failures in the last twelve years, said that "even business has not such a bad record." "Banks," he said, "are throttling business by the fact that a few banks with their interlocking directorates control most of the large industries. Control of business by banks is a form of economic slavery. We must separate the control, otherwise the individual will have no chance at all. We will all be employees of impersonal corporations, controlled by banks. That would be the death knell of American business. "I advocate the abolition of state banks and the centralization of banking under federal control, under a plan similar to that used in England and Canada. "Dual banking—with both state and national control—is the curse of the American banking system. Foremost in the banking system of England is the moral attitude of the bankers. First and foremost, they are bankers, not speculating investors. They are trustees of funds. "I further advocate the abolishment of 'department store' banking—that is, banking in which so many other forms of activity are allowed. We have the most vicious form of banking in the world, and that is the reason our system of banking has collapsed."