Carolina Caesar

Once upon a time two brothers. Caesar and Moses Cone, founded a Proximity Manufacturing Co. in Greensboro, N. C. Proximity prospered, gave birth to three cotton mills: Proximity, Revolution and White Oak. To take care of his employes Caesar Cone presently founded the Textile Bank for the savings of his employes. Time passed. Caesar and Moses Cone died. Textile Bank was absorbed, became a branch of North Carolina Bank & Trust Co.

Came the Depression. North Carolina Bank & Trust felt the pinch, closed down to a restricted basis even before the bank holiday. Last week a white paper was stuck on the walls of the bank's Textile Branch:

"As a tribute to his memory, the members of the family of Caesar Cone have decided to see that all depositors in the Textile Bank and its successor, the Textile Branch . . . shall receive full payment of the balances to which they are entitled."

Estimated cost of the memorial: $100,000 to $300.000.

Also assured last week of 100% payment were depositors in Manhattan's closed Harriman National Bank & Trust Co. (TIME, March 27), but this gesture was no memorial to the solidarity of New York's Clearing House. When trouble cropped up in the Harriman Bank nine months ago, the Clearing House backed Henry Elliott Cooper as president and planned to work out the situation. When the Harriman did not open after the banking holiday, two Clearing House members welched, declined to carry out the understanding that the Harriman should be saved. All last week the Clearing House squabbled about what should be done. Finally Secretary Woodin put an end to argument, announced that he had asked Manufacturers Trust Co.. headed by indefatigably public-spirited Harvey Dow Gibson, to take over the Harriman's assets and promptly pay depositors in full--"without risk" to itself for it was reported that the Treasury intended to hold the members of the Clearing House to their moral obligation. No Harriman came forward like the Cones to rescue depositors: on the day of Mr. Woodin's announcement, Joseph Wright Harriman, ex-chairman of the bank, was arraigned in court (carried in on a stretcher, wearing a derby hat) for making false entries on the bank's books.

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