U. S. BANKING CRISIS

Hokitika Guardian, 1 March 1933, Page 6

U. S. BANKING CRISIS

MORE RESIGNATIONS RECEIVED. INSULTS AND FRAUD CHARGES NEW YORK, February 27 Tlie resignation of Charles E. Alitohell, us’ chairman of the National City Bank, was accepted to-day. Air James H. Perkins, president of the City Rank, Farmers’ Trust Coy., National City Affiliate, lias been appointed as bis successor.

Hugh B. BitkUr’si lexignatLon as president of the National City Coy., was to-day accepted. The resignations follow the criticism in the Senate Committee investigation of stock market practices.

Evidence that the National City Company had participated in a fifteen milliorv dollar Peruvian loan in 1927, when it had on its file communications from its representative in Peru, saying that several bond issues of that Government were in default, was presented to-day, to the Senate Banking Committee, by Hugh B. Baker, president of .the company which is a stock affiliate of the National City Bank. Mr Baker testified that the National City Bank handled five million dollars of Peruvian bonds which were sold to the public at around 96 dollars, and were now selling at seven and eight dollars.

Samuel Insull, senr., his son Samuel, his brother Martin, and sixteen, other former officers and directors of Jrisull Utilities and Investment Company, were indicted to-day on charges of using the mails in a scheme to defraud. Each of the twenty-five counts in the indictments is subject to - the .maximum prynas'fcy of five years in prison and ten thousand dollars fine. Samuel, senior, is in Greece, Alartin .in Canada, Samuel (junr.) l is still a member of the executive staff, operating Insul] Utilities in Chicago.