LOAN DEFAULT.
AN AMERICAN CASE. CHICAGO, Nov. 19. The Reconstruction Finance Corporation has filed a suit against General Charles Dawes and 40,000 other stockholders of the Central Republic Trust Company for 14,000,000 dollars of the 60,000,000 dollars still in default on the original 80,000,000-dollar loan made by the Government agency to save the institution from bankruptcy. The bank has not been open for deposit for two years while in the process of liquidation. The Reconstruction Finance Corporation is attempting to recover the full indemnity of 14,000,000 dollars, representing the par value of all outstanding shares.
A message received on December 4, 1933, stated that records of the Reconstruction Finance Corporation revealed a loan from the corporation to the Central Republic Bank Trust Company of Chicago, which was then in liquidation, and of which the former vice-president, General Dawes, was head. The loan matured on December 23, 1932, and had not been renewed. The unpaid balance was 62,158,000 dollars. The remaining loan was considered a technical default. It was originally made in the latter part of June, 1932, about two weeks after General Dawes resigned the presidency of the Reconstruction Corporation itself in order to take over the affairs of the bank, which was then known to be in a shaky condition.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/MS19341121.2.82
Bibliographic details
Manawatu Standard, Volume LIV, Issue 304, 21 November 1934, Page 7
Word Count
211LOAN DEFAULT. Manawatu Standard, Volume LIV, Issue 304, 21 November 1934, Page 7
Using This Item
Stuff Ltd is the copyright owner for the Manawatu Standard. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Log in