The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-11-13
A BANKS RECEIVERS ACT.
Transfer Of Certain Assets Alleg-
cd TO BE Fraudulent.
Affairs OF the American Savings
Concern Again brought Into
COHrt-InterestinE Charges set
Forth in "a Petition Filed To-day.

I -NNI-AaAN VI hhf EtuFAaR-ah NhN ans -
Concern Again brought Into
COHrt-InterestinE Charges set
Forth in "a Petition Filed Today.
In petition filed today 10y the recoiv-
| CTS for the American Savings Bank, the
| Supreme Court Of TIE District of CoIum-
| hla is asked To declare the transfer 10y tho
| bank Of pronissory notes. debts. due bills
ana chooses in action 40 the Union Surety
/ and Guaranty Company 10 have been in
[ fraud Of the depositors and other credit
/ orS Of tine bank" and there
I fore null and void It is
| stated that on November 10. 1897 VIII
I liam oscar R0ome. the Cashier of the
! Ohio National Bank. Nicholas T. Halter
an architect, and Charles W. Powers were
among the principal organizers Of the
American Savings Bank. ut No. 1907 G
Street The directors were the persons
named who, It is alleged. assumed the
! entire management and control Of the af-
fairs Of the corporation.
IL Is further stated that the entire cash
/ capital of the bank consisted Of $40. the
remainder Of the supposedly cash
capital of $4,000 being made up
( of the demand notes aggregatiug
7. $500. consisting Of ROome'S note
Tor S-Io,O: Haller's. for $1,000. and
1 Powers, for s. 900. and others for various
amounts. 1t is alleged that continued
overdrafts by Roomc. which. it Is said.
began three days after the bank com
, mfncCG business, and the disCountiug for
his personal credit II alleged worthless
demand notes Of bis own and Of his
, friends and associates. the bank was
/ practically iDsOlyent from the date Of its
organization.
IT is further stated that BoOme was the
I local vice president OF the Union Surety
and Guaranty Company. the Offices OF
which were located I'm the building Of the
American Savings Bank. In April. 1870.
it is alleged that the Union Surety and
I Guaranty Company opened the first Of
number Of running accounts as depositor
With the American Savings Bank. which.
from time 10 time. acted as financial
agent OF the surety company. 1t is fur
I Their stated that the Union Surety and
Guaranty Company. the American Saw
/ ings Bank. and Nicholas Halter cO-ope-
rated in this business transaction in the
I following manner:
Halter either personally or through an
agent would secure vacant land and then.
I upon the assurance that DE would furnish
I bonded security for the performance or
! mis- contract. would obtain from third par
/ ties loans for tho purpose Of erecting
buildings ON the land. The Union Security
+ ard Guaranty Company would then Offer
themselves as surety for Halter upou the
condition that the money which. accord
I ing Co the custom 90 business. Is usually
I retained Dy the lender 10 De disbursed as
[ the work progresses. should De deposited
with the American Savings Bank. to be
disbursed under the control and supervis-
IL a
attorney. On fact, the defendant William
oscar EoUme.
In one instance. g. is alleged. $500 was
I deposited I'm the American Savings Bank
by Eugene Csuusi and N r. Davis. trus-
tees, upon the request in writing 50 to
10 made 10y the Union Surety and Guar
auty Company. through Williams oscar
Eoomc, its local vice president. the seal
Of the Dniou Surety and Guaranty Com
pIuy being attached thereto. The trus-
tees. it IS stated. were solely induced 10
( deposit fuad- in bank through the afore-
said means. they having previously refus-
"a To deposit the funds in the American
SsviUgs Bank unon their own r,sp0nsI-
bi-ity- The records Of the American Say
. mss Bank IL is stated. show that on
the date of its Suspension the trustees
were credited with $500
The bank became more and NOR. in
V5iyed by the withdrawal Of deposits.
and on August 10. 1891. 30 is said Ru8me
procured the passage OF a resolution en-
ro"erils him to borrow money ia the
name OF the bank III his discretion AMI
10 pledge the securities and other ur8u-
critics Of the bank as D.. might deem af-
ri7ablc. on the day preceding the ad1p-
N1E or the resolution the balance 10
tpomc S credit was S2i525 and on that
day he, u IS said drew out 8. 11361. over
GrtWlEg his apparent balance SI.Tes8i
From That time. 10 is stated ne con-
united u increase this overdTaft by draw
ms. out the deDositors' money as fol-
lows August Z. 500; August 10. s. I55.
August %. $l"J. August q 81. OJl. August
. Sll.t. September G. 3 900 and SeDtrn-
Der IT, s-N. all asgreEatng $3.50
During the entire period or these over
drafts continues the petitioner. the
said Roumc well knew that said bank
was InsolEcnt and without funds or real
assets with which TO pay the amount
. due the oepoaitDrs I'm said bank
shortly after the American SAVINGS
i'dnk hau suspended payment on SeTtem-
DIR =" last. 10 Is said. CeTtaiu officers of the
Union Surety and Guaranty CornU4uy i'm
response 20 aH urgent telegram from It's
" aStluEtpn attorney. who was also the
attorney i2r ne defendant bank. came a;
, once 90 Washington and demanded of
! William OEcar Eoomc that the balance
/ due the surety company should Doe turned
. over To- them or that an, Disappearance
OF the said balance Doc satisfactorily ac-
counted Tor To them.
y he result OF the pressure brought Ca
''tI upon tine ~sila W liiIam Oscar Rulmp
as president of the said bank and as
vice president and attorney in part Of
IN" surety company. was the Srirsa r...-
. hF Eoome TO his fellow officers az the
surety company of practically the sol,
remaining assets Of the bank c1usl-tin-.
uf notes uEETegatuE rI5-5r--uG
At the tim, the said ErteE were handed
over tp the said officers o. The d.f.utsers
surety company. ID is alleged. co. rtsir Of
the accounts Of the latter showed an
! uE0riiIltt ln one case Of $1,000. iu another
&C 5 % and in third Of sIE-If"
Afl.I the delivery OF the notes b.
i,rulur- FU-Dur-ilE To- oct as president Of
tine American Savings Bank. it is stated.
D. secuted a certain written agryen.rs
d. which tho notes of tho bank were 90 Do.
take. Iu Isat mtlt toy III Union Surety
tH.E might provo finally cuIlgctabI- and
in iH' event that they shoui5 not th.
sur. g.. company should preserve rTI tho
It-.t~ which 10 should have for thu caTIac-
lrL ana enforcement NJ its debt against
tH. American Savings Bank
Do is further stated that III the time of
lta uraaEIaat ton the American SAVING.
sh.irmaU a. ,hc board OF directors ard
.i= president o. tie bank was nt am ,irr..
t4IIy aware 90 the irSuILruu.. and tE.t fT.
Union sure ~ and Guaranty COMPANY WAS
Also aware of The lu~uIytut CONDITION az
tho American Savings Bank
tn" court i5 asked to restrain tho
Union surety and Guaranty Association
it's attorneys. officers and Trustees DIM
ing the psndencE OF th-s, proceedings
from selling. assigning. Transferring or
iu auEWiSe uISpoSlu- Of the BrDulissD-y-
notes and due bills received from "
oscar Euomc on September - last cN-
. cspi 20 The makers or cndorsers. upon