HEARINGS

BEFORE THE

COMMITTEE ON BANKING AND CURRENCY

UNITED STATES SENATE

SEVENTY-THIRD CONGRESS

FIRST SESSION

ON

S. Res. 84

(72d CONGRESS)

A RESOLUTION TO INVESTIGATE PRACTICES OF STOCK

EXCHANGES WITH RESPECT TO THE BUYING AND

SELLING AND THE BORROWING AND LENDING

OF LISTED SECURITIES

AND

S.Res. 56 and S.Res. 97

(73d CONGRESS)

KF

26

B3

1933

RESOLUTIONS TO INVESTIGATE THE MATTER OF BANKING

OPERATIONS AND PRACTICES, TRANSACTIONS RELATING TO

ANY SALE, EXCHANGE, PURCHASE, ACQUISITION, BORROW-

ING, LENDING, FINANCING, ISSUING, DISTRIBUTING, OR

OTHER DISPOSITION OF, OR DEALING IN, SECURITIES OR

CREDIT BY ANY PERSON OR FIRM, PARTNERSHIP, COMPANY,

ASSOCIATION, CORPORATION, OR OTHER ENTITY, WITH A

VIEW TO RECOMMENDING NECESSARY LEGISLATION, UNDER

THE TAXING POWER OR OTHER FEDERAL POWERS

ᏢᎪᎡᎢ 11

DETROIT BANKERS COMPANY

JANUARY 24 TO FEBRUARY 1, 1934

Printed for the use of the Committee on Banking and Currency

CONTENTS

Page

Testimony of--

Ballantyne, John, 1750 Balmoral Drive, Detroit, Mich., president of

Manufacturers' National Bank of Detroit at the present time- 5057,

5085, 5092, 5157, 5233

Browning, McPherson, president Detroit Trust Co., Detroit, Mich
Long, Thomas G., of Detroit, Mich__
Murfin, James O., Detroit, Mich..

5368

5144

5437

5379, 5411

Stair, Edward Douglas, newspaper publisher, Detroit, Mich.
Stone, Ralph, vice chairman of the Detroit Trust Co., Detroit, Mich. 5288,
5319, 5347, 5354

Thomas, W. J., treasurer, Detroit Trust Co., Grosse Pointe, Mich. 5321, 5349
Verhelle, Joseph F., Grosse Pointe, Mich., senior officer of the Manu-
facturers National Bank of Detroit__.

5085, 5135,

5152, 5169, 5172, 5205, 5257, 5272

EXHIBITS

(Italics indicate page on which exhibit was admitted into the record.
indicates page on which exhibit is printed.)

Roman type

1. Articles of Association of the Detroit Bankers Co., 5060_.

2. Trust agreement with reference to the Detroit Bankers Co., 5064---

3. Printed circular dated October 5, 1929, addressed to the stockholders

of Peoples Wayne County Bank, First National Bank in Detroit,

Detroit and Security Trust Co., Bank of Michigan, and Peninsular

State Bank, and signed by Peoples Wayne County Bank, Julius

H. Haass, president, John R. Bodde, vice president; First National

Bank in Detroit, Emory W. Clark, chairman of the board, D.

Dwight Douglas, president; Detroit and Security Trust Co., Ralph

Stone, chairman of the board, Albert E. Green, vice chairman of

the board, McPherson Browning, president; Bank of Michigan,

John Ballantyne, chairman of the board, T. W. P. Livingstone,

president; Peninsular State Bank, E. J. Hickey, chairman of the

board, H. L. Chittenden, president_.

4. Copy of certificate for trustee shares, Detroit Bankers Co., 5076,

5133___

5. Copy of certificate of shares of common stock, Detroit Bankers

Co., 5076, 5133_.

6. Large chart entitled " Organization of Detroit Bankers Co.", 5084--

7. A printed pamphlet entitled "Detroit Bankers Co., Consolidated

Balance Sheet of Wholly Owned Banks ", 5084-----

8. Photostatic copy of service contract referred to and identified by

the witnesses, 5092---

9. Printed annual report for 1931 of the Detroit Bankers Co., 5112__.

10. The annual report to stockholders for the year 1930 of the Detroit

Bankers Co., 5166_-.

11. The semiannual report of Detroit Bankers Co. to stockholders, as

of the date June 30, 1931, 5170__.

12. Photostatic copy of draft of letter dated November 21, 1931, ad-

dressed, on the letterhead of the Detroit Bankers Co., "To our

stockholders", 5175-----

Page

5127

5131

5069

(*)

(*)

(*)

5176

13. Mimeograph copy of letter on letterhead of the Detroit Bankers Co.,

dated November 21, 1931, address "To our stockholders" and

bearing facsimile signature of John Ballantyne, president, 5175_- 5176

(*) Not printed because of length or for reasons given in text.