Imágenes de páginas
PDF
EPUB
[ocr errors]

helle that he resign. There was a meeting of either the board of directors or the executive committee of the Detroit Bankers Co. It was then determined that we had picked up all the information from the Bankers Co. that we needed, and pursuant to the policy of cutting down expenses of the Bankers Co., and that policy having been adopted at the time, we thought Mr. Verhelle's services could be dispensed with. I sent for Mr. Verhelle.

It was never a pleasant task to suggest to a man that he resign. I asked Mr. Dodge if he would be good enough to come in there. Mr. Dodge was with me at the time, and I said to Mr. Verhelle, I said, “ Joe, it is never a pleasant task that I have before me. You know the policy that has been adopted by the Detroit Bankers Co. to cut down on the expenses of the Detroit Bankers Co. and on its activities. We do not see any future, and it has been suggested by the board or the executive committee that it would be better if you resign.” Then I said to him, “ This cannot be any surprise to you and the matter was dropped. Mr. Dodge was present throughout our conference.

Senator COUZENS. So you did not regret to have to let Mr. Verhelle go?

Mr. Mills. No; frankly, Senator, I did not.

I want to say this for the report, and I am trying to give you gentlemen all the information I have: For instance, regarding a man named Beasley. This I recall quite well. This may illustrate the vice that the committee felt ran through the report. It was stated that Beasley—I would like to go over that part of it, because I remember that and I think it was a small item that illustrates what the committee felt about a large part of it. But you notice some of them, one or two of the officers, we administered a reprimand to. So there was a basis for some of the junior officers in the institution. One of them we did not examine at all because he had previously resigned for entirely different reasons.

And when I say not at all, I went into it with him, we went into it with him, to see if there had been in our judgment at least, no criminal liability, and dropped it when we were satisfied there was not.

Now, here is this thing about Mr. Beasley: You understand I am testifying from my very best recollection. I have no definite record before me. Beasley had a lot of loans which were under water, and he was for the moment sunk-and some mortgages.

Now, it says this: "His account in the month of April indicates payments to Watling, Merchant & Co.”, who, by the way, are brokers,

in the following amounts: April 4, $123; April 5, $62; April 21, $48.25, and also indicates small speculations in Canadian exchange during the month of April 1932."

I leave it to any reasonable man what the inference would be from that. We at least thought that he was running a margin account.

Now, it did not say margin account, but in reading it that was the impression that the committee had.

It also said that "indicated the word used was indicated ”_ did not say he had speculated, but it indicated speculation in Canadian exchange.

Now, the facts seem to be that Mr. Beasley had purchased outright I think it was 10 shares of Detroit Bankers Co. stock, got it from a

purt:

jat het FIVE Ir. 3paster. I mir ucument—í im el no Itink te ommittee on en use it *9 211 ) XI. bat Izin 101219 es un iet in TIHL a bir

But Itunk he TOIS5. Olan 2 or t the batt mas 900 Dat THICTIM.I. TIP

Ip 30-ndication haluations II uacuan

Trivs 11 te Buk TIOT til TP MIOT 12?late $11141 Ite. It terpionat hat bis Fils 12 lunneet i langsung penger til sit v ulit Katia. It is ning vi anaula. Panght $ Canan intt. Innarri solars.r ne ! mount. Låter. Vi Hunt is inancıl onanion. le ieieir

pale 4.1t. ie wen tar tiert, mit le tueri te ini 191*** gun w 17. VIS Os Trim II* E. Now, PIC a wir un, vis 10. Iparlat ly 11 main chana.

I an piling muliat 1167. Is in ilustration. But I usi vang 57 29 tagit is į sit ar tus ve ist mit 11 an ues :

nie TK numara in mir jer tcsM 1-That mul va av:

—at mm lonka ilta ineural ru

V Progi, Dot winni, fir instanc, iar rug vas in narpotestas ir maisti tiet tatiment jr WTriele in 119 miedot rajone refering jugin to die Tise Crime Prices ca.:

con pagaha B ! nuit te Tire (up Diducts in the roret alumo indicated print assas it strin mainst munem invites I IN Pie tampany, it is pr. in prerinusT werewet inanmi tifizes!

W WTI I plena lat wie diers I trieve that mat we i ti that PIS dert.

W:. PIERA. Ivi Panocit into the mulent cefarreu a 1 Tere he se snidential cort? I ont i mind it

V: VIA ACM ile at man

V: PX19*. A tie nete Leutet by me bari w1 vis Matart

, * $pis affer the date of te death of the ruler. Vir, VIA Y se I looketi in dat betree that ITHAD ES stoma that was bacter Mr.Art H. Wory

M. PORE. YA

Wr. M. M:. Mruty hart preTOSÍT resignal from toe bank: and then I per aiunt the dear man bortowicz money from a bank. I wmtart to know them it was core. That was one of the things I watter to be an pe 12 barfertly all right.

Ser we went fut Mr. Moorly. He came in, and my recollection of that is quite rietint that he said that at the time this note was made it ** mbetetal that was to be a renewal, and the matter of the Twte, I think it was Burman was going away, and he left a renewal, *w when the first peste came due in pursuance of the arrangement the same time was put through, and in the meantime Burman had

Now, that is my recollection of that most peculiar transaction.

Now, I want to say this: We then, I think, instructed the officers that they were not to take any type of renewal notes ahead of time like that. Even if there was an agreement, it was not good practice to do it

Mr. Prona, Mr. Mills, you took part in conferences and negotiations and discussions some time last year in efforts to obtain a loan from the RF.C., did you not?

Mr. Mills. Of the First National Bank?
Mr. PECORA. Yes.
Mr. MILLS. Yes, sir.
Mr. PECORA. I want to question you about that in the morning.
Mr. MILLS. Yes, sir.

Mr. PECORA. So if you have any memoranda or data that will serve to refresh your recollection, you may bring it with you.

Mr. Mills. Well, I have right here what little I have, and I will have that here.

The CHAIRMAN. We will be glad to have any suggestions you have to offer with reference to any changes or modifications or improvements in the banking laws.

Mr. Mills. Well, I have 4 or 5 that I am very anxious to present if I may, Mr. Chairman.

The CHAIRMAN. Yes; we would like to have them.

Mr. PECORA. I suggest, Mr. Chairman, that Mr. Mills have them here tomorrow so that they may be put in the record at the conclusion of his examination.

Mr. Mills. I will be glad to do that.

The CHAIRMAN. The committee will now take a recess until 10:15 tomorrow morning.

(Accordingly, at 4:45 p.m., the committee adjourned until 10:15 o'clock on the following morning.)

STOCK EXCHANGE PRACTICES

WEDNESDAY, FEBRUARY 7, 1934

UNITED STATES SENATE,

SUBCOMMITTEE OF THE
COMMITTEE ON BANKING AND CURRENCY,

Washington, D.C. The subcommittee met at 10:15 a.m., pursuant to adjournment cn yesterday, in room 301 of the Senate Office Building, Senator Duncan U. Fletcher presiding.

Present: Senators Fletcher (chairman), Adams, Townsend, and Couzens. Present also: Ferdinand Pecora, counsel to the committee; Julius Silver and David Saperstein, associate counsel to the committee; and Frank J. Meehan, chief statistician to the committee.

The CHAIRMAN. The subcommittee will come to order. I will state for the benefit of those present, as well as for the record, that Mr. Pecora is giving his attention today to the preparation of the bill regarding stock exchange practices and so forth, which will probably be introduced in the Senate on Friday. There has been a great deal of work done in connection with it, and the bill is practically finished, but I feel that Mr. Pecora ought to go over it, and he will go over it, and try to get it in shape today. Therefore, Mr. Pecora will be absent this morning, and Mr. Saperstein will take his place in examining the witness this morning.

You may proceed, Mr. Saperstein.

TESTIMONY OF WILSON W. MILLS, GROSSE POINTE FARMS,

DETROIT, MICH.-Resumed

Mr. SAPERSTEIN. Mr. Mills, prior to the consolidation of the Peoples Wayne and the First National Banks you were the chairman of the board of the Peoples Wayne County Bank for a period of time, were you not?

Mr. Mills. Yes.
Mr. SAPERSTEIN. When did you become the chairman of the board ?
Mr. Mills. Of the Peoples Wayne County Bank?
Mr. SAPERSTEIN. Yes.

Mr. Mills. I was elected in January of 1931, with the understanding that I was not to take office or assume any duties or receive any compensation until the 1st of March 1931.

Mr. SAPERSTEIN. And on the 1st of March 1931 did you assume the duties of that office ?

Mr. MILLS. Yes.

Mr. SAPERSTEIN. You then became the chief executive officer of the Peoples Wayne Bank, did you not?

« AnteriorContinuar »