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HEARINGS

BEFORE THE

COMMITTEE ON BANKING AND CURRENCY UNITED STATES SENATE

SEVENTY-THIRD CONGRESS

SECOND SESSION

ON

S.Res. 84
(72d CONGRESS)

A RESOLUTION TO INVESTIGATE PRACTICES OF STOCK
EXCHANGES WITH RESPECT TO THE BUYING AND
SELLING AND THE BORROWING AND LENDING
OF LISTED SECURITIES

AND

S.Res. 56 and S.Res. 97

(73d CONGRESS)

RESOLUTIONS TO INVESTIGATE THE MATTER OF BANKING OPERATIONS AND PRACTICES, TRANSACTIONS RELATING TO ANY SALE, EXCHANGE, PURCHASE, ACQUISITION, BORROWING, LENDING, FINANCING, ISSUING, DISTRIBUTING, OR OTHER DISPOSITION OF, OR DEALING IN, SECURITIES OR CREDIT BY ANY PERSON OR FIRM, PARTNERSHIP, COMPANY, ASSOCIATION, CORPORATION, OR OTHER ENTITY, WITH A VIEW TO RECOMMENDING NECESSARY LEGISLATION, UNDER THE TAXING POWER OR OTHER FEDERAL POWERS

PART 12

Detroit Bankers Company

FEBRUARY 2 TO FEBRUARY 9, 1934

Printed for the use of the Committee on Banking and Currency

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CONTENTS

Testimony of:

Awalt, F. G., Washington, D.C., Deputy Comptroller of the Cur-
rency
Ballantine, Arthur A., New York City, formerly Assistant Secretary
and Under Secretary of the Treasury_
Leyburn, Alfred P., Cleveland, Ohio, Chief National Bank Examiner
Fourth Federal Reserve District----

Page

5828

5791, 5807

5761, 5783

5482,

5490, 5515, 5553, 5591, 5629

Mills, Wilson W., Grosse Pointe Farms, Detroit, Mich.

Murfin, James O., Detroit, Mich----
Stevens, Eugene M., chairman of the Federal Reserve Bank of
Chicago, and Federal Reserve agent for the Seventh District,
Chicago, Ill‒‒‒

5455

5811

Verhelle, Joseph F., Grosse Pointe, Mich., senior officer of the
Manufacturers' National Bank of Detroit__.

5756

Wilson, Mark A., Detroit, Mich., receiver of the Union Industrial
Trust & Savings Bank, Flint, Mich_-_-

5662, 5699, 5735

EXHIBITS

(Italics indicate page on which exhibit was admitted into the record. indicates pages on which exhibit printed)

Roman type

132. Statement prepared and read by Mr. Mills, 5490
133. Bylaws produced by Mr. Long, entitled "Bylaws of First Wayne
National Bank, of Detroit, as recommended December 18, 1931, and
adopted December 31, 1931,” 5492–

134. Document produced by the witness containing bylaws in effect on
February 11, 1933, 5493-.

Page

5484

(*)

(*)

135. Copy of letter, November 14, 1931, Mills to Henry M. Robinson_. 136. The 12-page statement, dated January 27, 1934, 5516–.

5512

5576

137. The 3-page statement, dated February 3, 1934, 5516138. Photostat of five sheets of handwriting-

139. Photostatic copy of memorandum dated February 3, 1933, addressed

(*)

5533

to Wilson W. Mills and signed "J. M. D.".

5541

140. A printed folder, on the front of which was a reproduction of the painting "The Buccaneers'

5549

141. A memorandum dated January 31, 1933, to Wilson W. Mills, from Donald N. Sweeny

5551

142. Letter from F. Howard Russ, Jr., to Wilson W. Mills, dated January

6, 1932, 5556_-.

5557

143. Photostat of letter dated October 14, 1931, from Wilson W. Mills to Hon. Arthur H. Vandenberg

5561

144. Letter dated Grand Rapids, Mich., October 15, 1931, from A. H. Vandenberg to Wilson W. Mills__.

5562

145. Letter dated October 16, 1931, from Wilson W. Mills to Hon. Arthur H. Vandenberg--

5563

146. Letter dated October 17, 1931, from Wilson W. Mills to Eugene
Meyer, Governor, Federal Reserve Board-
147. Photostatic copy of letter dated October 21, 1931, from the President
of the United States to Wilson W. Mills_

5564

5565

*Not printed because of length or for reasons given in text.

5566

5568

Page

148. Photostatic copy of letter dated October 27, 1931, to the President
of the United States from Wilson W. Mills, 5565----
149. Photostatic copy of letter dated December 7, 1931, addressed to
Mr. Wilson W. Mills from Senator Vandenberg_.
150. Photostatic copy of letter dated December 10, 1931, addressed to
Hon. Arthur H. Vandenberg from Wilson W. Mills, 5568---
151. Photostatic copy of letter dated December 15, 1931, to Senator
Vandenberg from Wilson W. Mills, 5570_

152. Photostatic copy of letter dated January 17, 1933, to J. M. Dodge from T. H. Newberry

153. An agreement dated May 25, 1931, between the Citizens Savings Bank of Mount Clemens, Mich., and the Peoples Wayne County Bank___.

5569

5571

5572

5595

5604

154. Copy of minutes of the Detroit Loan Agency, signed by the assistant manager, dated March 30, 1932_.

155. Copy of letter dated December 12, 1931, addressed to Mr. Wilson W. Mills and signed by A. H. Vandenberg

5605

156. Memorandum dated July 13, 1932, from Wilson W. Mills to Donald M. Sweeny---

5609

157. A memorandum dated October 14, 1932, from Mr. Locke to E. N. Sweeny, president....

158. Report to governing committee from subcommittee, dated June 14,
1932, in re officers' and employees' loans, 5626_.
159. Photostatic copy of minutes, regular meeting, governing committee
of the board of directors of the First Wayne National Bank of
Detroit, April 29, 1932, 5627-

160. Copy of report, Douglas to Mills, January 5, 1932, in re directors'
and officers' loans, 5627___

5612

(*)

175. Certificate of deposit dated December 31, 1930, in the amount of $600,000, 5742

174. Letter dated May 25, 1932, from Alfred P. Leyburn to First National Bank & Trust Co., Pontiac, Mich___

172. The letter dated February 21, 1930, from Commissioner R. E.
Reichert, commissioner, State banking department, to Mark A.
Wilson, vice president, Detroit Bankers Co--
173. A letter from J. W. Pole, Comptroller of the Currency, to Mark A.
Wilson, dated February 28, 1930_.

171. A memorandum dated October 14, 1931, to John Ballantyne and signed by Mark A. Wilson in typewriting---.

170. A letter dated October 27, 1931, addressed to Members of the Staff, Claims Department, Peoples Wayne County Bank, and signed "D. M. Irwin "__.

169. Memorandum dated December 26, 1931, from Mark A. Wilson to John Ballantyne_.

168. Memorandum dated September 12, 1931, from Mark A. Wilson to John Ballantyne_..

167. Memorandum dated January 27, 1930, on letterhead of First National Co: of Detroit_____

165. The articles of association of the First National Co. of Detroit, 5700_ 166. A letter addressed to Julius H. Haas, under date of January 6, 1930, by Mark A. Wilson, 5703_-

163. Letter dated January 20, 1931, from George A. Burns to Detroit
Bankers Co., attention Mark A. Wilson, 5672----.
164. Memorandum headed "E. J. Eckert, John R. Bodde & Geo. A. Burns,
trustees", signed "Arthur S. Knudson ".

5689

5673

5675

161. A letter dated March 2, 1933, from Mr. Thomas to Mr. Mills, 5652-5633 162. Letter dated March 14, 1932, from John H. Hart to John Ballantyne---.

5681

(*)

5712

5715

5718

5721

5728

5731

5733

5735

(0)

176. Certificate of deposit dated December 31, 1930, in the amount of $1,200,000, 5742--

177. Tabulated statement headed "Union Industrial Bank, Flint, Mich.",

dated December 30, 1930, 5742-.

Not printed because of length or for reasons given in text.

178. Tabulated statement headed “Union Industrial Bank, Flint, Mich.," dated December 31, 1930, 5742-

179. Tabulated statement headed "Union Industrial Bank, Flint, Mich.,' dated January 2, 1931, 5742--

180. A photostatic copy of the minutes of the governing committee of the board of directors of the First National Bank, Detroit, Mich., held on December 30, 1932----

181. A photostatic copy of the minutes of a meeting of the governing committee of the board of directors of the First Wayne National Bank of Detroit, held on Friday, June 10, 1932, at 2 p.m_--

Page

(*)

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5767

5768

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