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, BORROW-
ING, 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

COMMITTEE ON BANKING AND CURRENCY

DUNCAN U. FLETCHER, Florida, Chairman CARTER GLASS, Virginia

PETER NORBECK, South Dakota ROBERT F. WAGNER, New York

PHILLIPS LEE GOLDSBOROUGH, Maryland ALBEN W. BARKLEY, Kentucky

JOHN G. TOWNSEND, JE., Delaware ROBERT J. BULKLEY, Ohio

FREDERIC C. WALCOTT, Connecticut THOMAS P. GORE, Oklahoma

ROBERT D. CAREY, Wyoming
EDWARD P. COSTIGAN, Colorado JAMES COUZENS, Michigan
ROBERT R. REYNOLDS, North Carolina FREDERICK STEIWER, Oregon
JAMES F. BYRNES, South Carolina HAMILTON F. KEAN, New Jersey
JOHN H. BANKHEAD, Alabama
WILLIAM GIBBS MCADOO, California
ALVA B. ADAMS, Colorado

WILLIAM L. HILL, Clerk
R. H. SPARKMAN, Acting Clerk

SUBCOMMITTEE ON STOCK EXCHANGE PRACTICES

DUNCAN U. FLETCHER, Florida, Chairman
CARTER GLASS, VIRGINIA

PETER NORBECK, South Dakota ·
ALBEN W. BARKLEY, Kentucky 1 JOHN G. TOWNSEND, JR., Delaware
EDWARD P. COSTIGAN, Colorado JAMES COUZENS, Michigan
ALVA B. ADAMS, Colorado

1 Alternate, Thomas P. Gore, Oklahoma.
* Alternate, Phillips Lee Goldsborough, Maryland.

II

L BRARY OF TOPISS

APR 2001

CONTENTS

Testimony of:

Pago

Awalt, F. G., Washington, D.C., Deputy Comptroller of the Cur.

rency

5828

Ballantine, Arthur A., New York City, formerly Assistant Secretary

and Under Secretary of the Treasury-

5791, 5807

Leyburn, Alfred P., Cleveland, Ohio, Chief National Bank Examiner

Fourth Federal Reserve District-----

5761, 5783

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

5482,

5490, 5515, 5553, 5591, 5629

Murfin, James O., Detroit, Mich----

5455

Stevens, Eugene M., chairman of the Federal Reserve Bank of

Chicago, and Federal Reserve agent for the Seventh District,
Chicago, Ill.---

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 exbibit was admitted into the record. Roman type

indicates pages on which exhibit printed)

Page

132. Statement prepared and read by Mr. Mills, 5490_--

5484

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----

(*)

135. Copy of letter, November 14, 1931, Mills to Henry M. Robinson--- 5512

136. The 12-page statement, dated January 27, 1934, 5516-

5576

137. The 3-page statement, dated February 3, 1934, 5516-

(*)

138. Photostat of five sheets of handwriting-

5533

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

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 -

5564

147. Photostatic copy of letter dated October 21, 1931, from the President

of the United States to Wilson W. Mills.---

5565

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

he 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 Vandenberg150. 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.--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. Vandenberg156. Memorandum dated July 13, 1932, from Wilson W. Mills to Donald

M. Sweeny---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, 5627161. A letter dated March 2, 1933, from Mr. Thomas to Mr. Mills, 5652.. 5 162. Letter dated March 14, 1932, from John H. Hart to John

Ballantyne.-163. Letter dated January 20, 1931, from George A. Burns to Detroit Bankers Co., attention Mark A. Wilson, 5672--

5673 164. Memorandum headed “E. J. Eckert, John R. Bodde & Geo. A. Burns,

trustees ", signed "Arthur S. Knudson ". 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--167. Memorandum dated January 27, 1930, on letterhead of First National Co. of Detroit...

5702 168. Memorandum dated September 12, 1931, from Mark A. Wilson to John Ballantyne---

5715 169. Memorandum dated December 26, 1931, from Mark A. Wilson to

John Ballantyne_170. A letter dated October 27, 1931, addressed to Members of the Staft,

Claims Department, Peoples Wayne County Bank, and signed

“D. M. Irwin " 171, A memorandum dated October 14, 1931, to John Ballantyne and

signed by Mark A. Wilson in typewriting----
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.--

5733 173. A letter from J. W. Pole, Comptroller of the Currency, to Mark A. Wilson, dated February 28, 1930..

573 174. Letter dated May 25, 1932, from Alfred P. Leyburn to First National

Bank & Trust Co., Pontiac, Mich.. 175. Certificate of deposit dated December 31, 1930, in the amount of

$600,000, 5742 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."

bis

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