AMERICAN BANKS UNDER FIRE

Timaru Herald, Volume CXXXVII, Issue 19624, 19 October 1933, Page 9

AMERICAN BANKS UNDER FIRE

UNSOUND METHODS EXPOSED RICH REWARDS GRANTED FAVOURED ONES United Press Association—By Electrle Telegraph—Copyright WASHINGTON, October IT. Mr Albert Wiggin, former chairman j of the Chase National Bank, testified before the Senate Committee to-day that before retiring last January the ! Bank voted him a salary of 100,000 dollars per annum ror life. This was ; ! despite the severe losses of recent | years. His salary before retirement was 202,000 dollars, plus bonuses, i ‘ Records introduced showed that for ; j the year ending last July, the bank ’ ' created over 212,000,000 dollars for reserves against losses. Mr Wiggin recounted the growth of the Bank's deposits from 44,000.000 dollars in 1904 to two billion in 1930. | Mr Rockefeller, junior, was identified as the largest stockholder of the Bank, • j though it had not revealed the amount ! j of his holdings. ) j Mr Wiggin owned 67.000 shares last ' | May. his family holdings totalling • ■ 117.000 shares. Mr Wiggin stated that ' ! of 6,158.000 dollars worth of securities ' handled by the bank, 5.68 per cent, de--1 faulted. The Chase Securities Corpor- : ] ation Subsidiary Bank was organised in 1917, with a capital of 25.000.000 ' dollars. In 1930 the capital was 1 95,000.000 dollars, with a surplus of ■ 13,000.000 dollars. It was revealed in 1929 that the > securities affiliated secured control of - ! what was internationally known as the ■ j American Express Company i :