Evening star., 1933-07-01
BELIEVED DETROIT
BANK WAS SOLVENT
Counsel for First National
Testifies That Was Opinion
of Ogden Mills.
BY the Associated Press

6y the Associated TreSs-
DETROIT, July 1.-The statement
of one witness that fbrmer Secretary Of
the Treasury Ogden L. Mills believed
the closed First National Bank Detroit
to be solvent, and of, another that the
former Treasury head, sent a New York
banker here to discucS plans for reor-
ganization, last night went into the
records of the one-mm Detroit bank
jury.
Similarly, plan was revealed in mo-
tion for reopening the Fhst National
plan which, according to James o. Muir
fin, director and attorney for the bank,
would enable payment "at ,once" of 100
cents on the dollar to all depositors. To
date the depositors have received 40
per cent.
1t was Murfin who told the grand
jury. holding public hearings into the
closing Of two local national banks, that
Mills informed him in a Washington
conference the First National was solv-
ent and should not have been closed.
The conference. he said. came five days
after the Michigan bank holiohy began.
Charges Plot Against Ford.
Ernest c. Kanzler, chairman of the
Executive Committee of the closed
Guardian National Bank of Commerce,
and brother-in-law Of Edsel Ford,
testified 1t was at Secretary Mills re-
quest that George w. DAWSON chairman
OF the board Of the Central Hanover
Bank & Trust Co. Of New York, came
here a few days after the bank holiday
was declared. DAWSON he said, offered
to take over the two national banks II
their assets were written down to y
cents on the dollar. The plan, they
said. was refused.
Previous witnesses, including Herbert
r. Wilkin. general manager of tho
Guardian group, of which the Guardian
National Bank Of Commerce was the
principal unit, testified Dawson CAM
mere to further Wall Street plot
against Henry Ford William F. Con-
molly, receiver for the Detroit BankerT
20, OF which the First National WI
tne principal unit, has testified he b.
neVeo the plot against Ford only =
sideswipe" in a Nation wide plan
New York banks to force the Canadiay
chaln banking system on the Unite6
states, by restricting credit throughout
the country.
Sdss DanK was Solvent.
Murfln former circuit Judge. raid
ne conferred with Mills at the reouesr
OF Detroit bankers who wished to find
out the Treasury Department plans IN
regard to the closed banss.
told him that his agent. A >
Leyburn, then chief examiner for N:
seventh Federal reserve district had
declared the First National insoIyent
said Murfln. Mills said he had M
right to do that Your bank was sol.
vent. Had it been insolvent it would
have been my duty to have put in n
receiver. 1 only had the right to saw
"netner or not it was insolvent."
Attorney General Patrick n. ORrieu
Yesterday afternoon received an ~
knowledgement of his telegram to Pres
Ident Roosevelt asking him to compel
feoeral officials to testify in the Grand
jury investigation.
The telegram, signed by stephen
Early, assistant secretary to the Pesi-
dent. stated Telegram received. will
De laid before the President immediately
upon his return. Will advise later, re-
garding your request for an appoint
ment. Am sending copies of your mes
sage to the Secretary of the Treasury"