Evening star., 1933-03-27
u. S. JOINS PROBE
OF DETROIT BANKS.
Assistant Attorney General
Pratt Reaches Scene
From Washington.

LANSING, Mich, March 27 (P.-
Conservators for 50 State banks were
named today by Gov William A.
Comstock and r. E. Reichert, State
banking commissioner.
By the Associst ted Press.
DETROIT, March 27.-Detroits
banking situation. subject of controversy
during the six weeks since Gov. Will
liam A. Comstock declared his original
holiday, was under investigation today
by Federal and Wayne County authori-
ties
John s. Pratt, assistant United States
Attorney General, accompanied by q
staff of Investigators, arrived from
Washington today to investigate the af-
fairs Of the First National Bank Of De-
troit and the Guardian National Bank
of Commerce, now in charge of Federal
conservators. Whatever he learns. he
said, will be reported to Washington.
C0ughlin Data Asked.
At the same time Harry 8. Toy pros
ecuting attorney of Wayne County.
called upon Rev. Father Charles E.
Coughlin to turn over any information
he may have regarding unlawful prac-
tices in State institutions, such as hold
ing companies OF banks, State banks
and trust companies.
Toys action followed closely upon a
renewed outbreak of the banking con-
troversy yesterday in which Father
Coughlin attacked the Detroit Bankers
Co., holding company of the First Ma
tional; its directors and the motives OF
James K Watkins, police commissioner.
in his efforts to bring about the re-
opening of the First National Bank and
the Guardian National.
Heavy Withdrawals.
Father Coughlin in his address
charged that $63, 900 900 had been taken
from the First National on the basis
of inside information" during the IS
days Immediately preceding the holiday
proclamation and asserted that the
bank was but 1912 per cent liquid three
days before the holiday. although de-
positors were being told 1t was 80 per
cent liquid.
Another clergyman, the Rev. William
r. Kinder rector Of st. Joscphs Epis-
copal Church, read an open letter from
his pulpit to President Roosevelt. criti-
cizing Father Coughlin in connection
alton. The letter urged the President
to set aside the decision to close the
two old banks and informed him that
your advisers have apparently been
bamboozled by . radio priest"
Denies Owing Banks.
Z. D. Stair, publisher Of the Detroit
Free Pres and president Of the Detroit
ID orif fot0 Hvy
Father Coughlin in his address yester
day, said today that his newspaper
owes none Of the banks a nickel On
the contrary, the Free Press and its
publisher were depcsitOrs in the two
groups to the extent Of approximately
$500, 600"
He gave out q copy Of telegram he
said was being forwarded over his sigma
ture to President Roosevelt. The tele-
gram read:
"A Slanderous radio attack has been
made against myself and other citizens
CT this city in connection with the
banking situation here by Father
Charles E. Coughlin. who presents him.
self from time to time as the spokesman
for your administration.
ITO clarity the situation and to save
our city from such inf1ammatory at
tacks, to still all false rumors and to
vindicate the dignity and decency of
our community, I urgently request that
you direct your Department of Justice
to begin Immediately q complete in
vestigation
we stand unafraid and eager to CO.
operate in every way to save our city
from slanderouS wreckers."
Right Rev Michael J. Gallagher,
Bishop of the Catholic Diocese OF
Detroit, in q formal statement today
said:
Father Coughlin made serious
charges against some Of the Detroit
As this address was written
Saturday night after 10 O'Clock. 1 was
not aware Of its contents. He has
acted the part Of a prosecuting attorney
and made his charges vigorously.
cit must be understood that when
Father Coughlin discusses the banking
situation, he Is not speaking for the
Catholic church, and his opinions are
only as good as his arguments"
..,runrMAN EAN0pS PRORE