CONTENTS Testimony of— Page Cecil, John L., Assistant General Counsel, FDIC___ Butler, Paul, Administrative Assistant to Legal Division, FDIC___. 1, 105 Coburn, Royal L., General Counsel, FDIC. 1, 105 Gidney, Ray M., Vice Chairman, Board of Directors, FDIC_. Gover, Eugene R., supervising examiner, Eighth District, FDIC_ Greensides, Neil G., acting assistant to the Chairman, FDIC.. Letters, statements, memorandums, etc., submitted for the record by- Federal Deposit Insurance Corporation: Memorandum, March 28, 1951, on West Irving, State Bank.......... Memorandum, April 1, 1953, on First State Bank of Elmwood Park and Devon-North Town State Bank... Letter from Mr. Cook, June 4, 1953, to Senator Capehart on Bank Joint statement, May 25, 1953, with State auditor, Illinois, and chairman of board, Bank of Elmwood Park__ Letter, April 22, 1953, Mr. Russell to Mr. Batke on First State Bank of Elmwood Park and Devon-North Town State Bank_ Memorandum, May 11, 1953, on First State Bank of Elmwood Park and Devon-North Town State Bank_-_. Memorandum, May 20, 1953, on First State Bank of Elmwood Park and Devon-North Town State Bank__. Letter, October 1, 1956, number of banks with substandard and fixed assets in excess of adjusted capital account_ Memorandum, May 26, 1955, on Southmoor Bank & Trust Co___. Memorandum, February 21, 1956, on Southmoor Bank & Trust Co. Memorandum, February 10, 1956, on Southmoor Bank & Trust Co- Title 18, United States Code 217, offer of loan or gratuity to bank Federal Deposit Insurance Corporation-Continued Agreement of sale, First State Bank of Elmwood Park, Bank of Elmwood Park, and FDIC, May 26, 1953– Letters to Southmoor Bank & Trust Co. and Mr. Hodge on order of Board of Directors in matter of Southmoor Bank & Trust Co. State statutes on removal of officers and directors of banks__. Fulbright, J. W., a United States Senator from the State of Arkansas: Statement regarding hearings_-_- Advertisement, an open letter from the Southmoor Bank & Trust Green, Dwight H., chairman of board, Bank of Elmwood Park: Joint statement, May 25, 1953, with FDIC and State auditor, Illinois____ Hodge, Orville E., auditor of public accounts for Illinois : Letter, May 14, 1953, to Mr. Cook on Bank of Elmwood Park_ Marcus, Leon, Chicago, Ill. : Letter, July 7, 1955, to Mr. Gover. Letter, May 10, 1956, to Mr. Hodge_. 127 191 ILLINOIS BANKING SITUATION FRIDAY, SEPTEMBER 21, 1956 UNITED STATES SENATE, COMMITTEE ON BANKING AND CURRENCY, Washington, D. C. The committee met, pursuant to call, in room 301, Senate Office Building, at 10:15 a. m., Senator J. W. Fulbright (chairman of the committee) presiding. Present: Senators Fulbright and Sparkman. Also present: Robert A. Wallace, staff director, and Donald L. Rogers, counsel. The CHAIRMAN. The committee will come to order. This is a hearing called by the chairman to hear officials of the Federal Deposit Insurance Corporation on matters involving the Bank of Elmwood Park and Southmoor Bank & Trust Co., in and near Chicago, and other related matters. The witnesses will be Mr. Maple T. Harl, member of the Board of Directors and former Chairman of the Board; Mr. Ray M. Gidney, Vice Chairman of the Board; Mr. Edward C. Tefft, Chief, Division of Liquidation; Mr. Edward H. DeHority, Assistant Chief, Division of Examination; Mr. Eugene R. Gover, supervising examiner of the eighth district; and Royal L. Coburn, General Counsel, and others; all of the Federal Deposit Insurance Corporation. We are beginning a series of hearings which may require that certain witnesses be put under oath. The swearing of some witnesses and the failure to swear others might lead the public to form conclusions which might or might not be warranted. Therefore, I believe the best procedure would be to swear all witnesses, including those from the FDIC. Will all of you gentlemen stand up and hold up your hands so that we will establish the procedure that I think is proper? All of the FDIC who will testify. Mr. COBURN. Do you want the whole group ? The CHAIRMAN. Yes; all of them, so we don't leave the implication some testify under oath and others do not. (Whereupon, the oath was administered by the chairman to the following witnesses from the Federal Deposit Insurance Corporation: Maple T. Harl, Edward C. Tefft, Edward H. DeHority, Eugene R. Gover, Ray M. Gidney, Royal L. Coburn, Neil G. Greensides, Ernest L. Cox, John L. Cecil, and Paul Butler. The CHAIRMAN. Thank you. We will begin the hearing by reviewing matters involving the old First State Bank of Elmwood Park, Elmwood Park, Ill. 1 |