The Wrangell sentinel. (Wrangell, Alaska) 1909-current, 1952-11-28
UNION BANK SOLD
REOPEEED BY NEW OWNERS
FORMER OFFICERS RESIGN

{ FORMER OFFICERS RESIGN
ANCHORAGE - Judge Anthony
Dlmond OF the Third District court
said the Union Bank would re-
open under the management of
Dan Cuddy, president of the First
National Bank OF Anchorage Per
mission was given for it To reopen
on Tuesday.
Judge Dimond said Cuddy bought
81 per cent OF the stock in the Tn
ion Bank
The bank closed after Two off
Gals of the bank We're charged
with violating Territorial banking
laws The two Andrew Hassman.
president. and Stanley McCutcheon
resigned their positions at the
bank
McCutcheon and Hassman We're
indicted on seven counts of viola
ton OF Territorial banking laws at
the same time last week the bank
ing board was ordering the Union
Bank closed. McCutcheon n d
Hassman both posted $4,000 bond
to gain their release on the charges
all of which are misdemeanors.
Dimond's decision was announc-
ed after a closed court conference
among officials of the Union Bank,
the First National Bank, the Terri
torial Banking Board, George ones,
who was serving as temporary re
eeiyer, and their attorneys.
viii Lose Nothing
Under this decision Dimond
said. 1t seems depositors will lose
nothing.
IF the bank We're to go into
permanent receivership. IS IS
would be liQuidated and depositors
might lose a portion of their mon
ey,' the judge said.
An affidavit filed with the court
by Cuddy said that in his opinion
There is no reason at this time
not to reopen the bank for buc-
ness"
He said the bank has on hand
an amount in cash equal to the de-
mand OF its depositors.
Cuddy'S affidavit in support of
his request for ending the receiver
ship asked that the banking board
5e lnstru ted to allow the bank to
open for business snmediately in
the interest of some 5000 deposit
tors of the Union Bank
1t added that Cuddy has secured
s,I 10
bank, and that he, himself, would
assume the presidency
Cuddy said he agreed with stock
holders of the bank to remove
iue toned loans from the loan
Pc tfolio" Immediately, thereby oy-
er coming objections to the loans
by the banking board.
The loans in question were to
the Matanuska Valley Hotel and
Arctic Cold Storage Co. The board
said both were over the legal lin
IT, Cuddy said, however, that he
and other officers OF the First Ma
tional Bank had examined the
loans and considered them to be
sound II was his opinion that the
Union Bank would suffer no loss
except for a few small personal
loans.
The affidavit related further
that Cuddy understood Jones. the
receiver. had found all the Union
Banks cash fully accounted for
and the books in balance.
Threaten Suit
MoCutcheOn said the bank direc-
tors are to meet to vote on pro-
posal to sue two Territorial offici-
ais, Auditor Neil Moore and Sena-
tor-elect Mark Jensen, as a result
of the bank closure.
He said the suit would ask sub
stantial damages for actions lead
ing 10 the order closing the Union
Bank. Moore is a member of the
banking board; Jensen is a long
time political foe of MeCutcheon,
Democratic National Committee
man from Alaska.
The Union Bank, with more than
three million dollars in assets. is
: the third largest of the city's four
! banks.