Evening star., 1933-08-21
COUzENS CHARGES
K|T|NG Of CHECKS
TO M|SLEAD PUBLIC
Alleges Serious Acts Before
Time for Examining
Detroit Banks.
CLAIMS MILLIONS JUGGLED
TO PAD CASH ON HAND
Dawson, New York Banker, Denies
Offering Mills Presidency of
New Institution.
BY the Associated Press.

DETROIT, August 21-United States
Senator James Couzens Republican, of
Michigan, told the Detroit bank in
vestigating jury here today that there
has been all kinds of 'kiting' of checks"
in an effort to mislead the public as
to the actual condition of the two ma
tional banks, whose closings last Feb
ruary the jury is investigating
The Michigan Senator, declining to
give the source of his information on
the grounds that it was confidential,
said he was satisfied that if the pros
ecutor goes into the dealings between
the groups he will find all kinds of
kiting of checks. This is a very serious
situation"
He declared such action was made
'as the time for the regular examina-
tions approached"
II am informed that on one occa-
sion the Detroit Trust Co got $4,000, 900
from the First National Bank, Detroit"
he said. 1T then turned around and
deposited this S6,000 900 with the First
National as trust fund. The net
effect of this was to show that each
bank had s6,000,000 in cash more than
it actually had"
Dawson Letter Read.
The Senator's charges came as he
resumed the witness stand before the
jury for the third day, to continue his
recital of inside facts" regarding the
closing Of the First National and the
Guardian National Bank of Commerce,
the closings of which the jury is in
vestigating. The First National was
member of the Detroit Bankers Co.,
the holding group, while the Guardian
National was held by the Guardian De-
troit Union Group, Inc Both banks
are under Federal receiverships
Previously during the morning the
Senator had read letter from George
P. Dawson, New York banker, denying
that he had offered the presidency of
large Detroit bank to be owned by New
York interests to Wilson w. Mills. for
fner chairman of the First National
board
After reading the letter, however. the
Senator said that j. T Mcmillan and
E. D. Stair, directors of the First Ma
tional, had told him Mills had stated
at directors meeting that he would
QeaQ new DanK.
Prosecutor Harry s. Toy and Attorney
General Patrick H. OBrien, the latter
the petitioner for the one-man bank
jury. clashed during the morning over
introduction of some of CouZens' testi-
mony. The attorney general, declaring
he had called the jury. demanded that
the prosecutor either cooperate or
withdraw from the case"
Judge Stops Dispute.
The dispute was stopped by Judge
Harry B. Keidan, heading the jury, who
ordered the hearing to proceed.
The Dawson statement. in the form
of telegram, said:
There is no basis for belief on your
part that offered Wilson w. Mills the
presidency of a large new bank in De-
troit which was to be owned by New
York interests. 1 went to Detroit at
the request of Mr. Ogden Mills (then
Secretary of the Treasury and Mr..
Jesse Jones (R F. c. directoD after
the heads of the Detroit banks had said
they would like to have me come.
Knowing the jealouSies and fricttons
between the two Detroit banking groups
the only proposal 1 made was for the
formation of one new bank, with all
new executive officers and with de-
positors owning all the STOCK, trans
ferring deposits for stock.
Our bank, under the law, could not
have taken the stock. I do not believe
in centralized banking control ana
would not have taken the stock II l
could.
TT seems to be the desire of those
responsible for Detroit banks to blame
every one but themselves. The red
herring across the trail is not new
device. Detroit seems to be willing to
believe unsupported statements, which
put the blame on others rather than
on those who ran the banks
Told Exact Language.
Couzens said he talked with Dawson
on the telephone after receiving the
telegram, and told Dawson he had not
been aware that ogden Mills and Jones
had asked him to come to Detroit.
Regarding his inference that l hao
quoted wild statements, l told him the
names of two directors who had told
me Wilson Mills was to head a new
bank" said Couzens. These men told