Evening star., 1901-11-13
AMERICAN SAVINGS BANK
BILL FILED By THE RECEIVERS OF
THE INSTITUTION.
Ask That Union Surety and Guaranty
Company He Restrained From Dis
posing of Certain Notes.

Justice fttSHcTs la C1stuity Sotft -Nc. -
today signed an order requiring the Union
Surety and Guaranty Company to show
cause at 10 o'clock Friday morning, the
I'D instant, why 1t should not be re-
strained from disposing of certain notes
of the face value Of S15jO0, alleged to have
been turned over to the company by VIM.
Oscar Roome the day following the recent
suspension of payment by the American
Savings Bank. This action of the court
was based upon bill in equity filed by
Charles Francis Carusi, Alexander Wolf
and Tracy L. Jeffords. in their capacity as
receivers of the American Savings Bank.
The filing of the bill today is said to be,
the beginning of a vigorous procedure on.
the part of the receivers to recover the as;
sets Of the bank. 1t Is understood that.
through an interpleader suit they have al;
ready tied up notes, probably good of the
value Of S21 900. With the aid OF an expert
accountant, the receivers, so they say have
been engaged almost constantly for several
weeks past in mastering the present situa-
tion of the bank In their inventory re-
Gently submitted to the courts, the receiv-
ers set forth that they found no money in
the institution when they took charge
In their bill filed today the receivers
plain to the court that November 10. 1891,
William Oscar Roone. formerly cashier CT
the National Bank: Nicholas T. Heller, an
Il
friend and business associate of VIM. Oscar
Roome. were among the principal organiz-
ers of private bank Incorporated under
the laws of West Virginia, the American
Savings Bank, of which Roome was made
president.
The entire cash capital of said bank"
it is declared in the bill, consists of the
sum of $40. the remainder of the supposed-
ly paid-up cash capital of $4,000, was
made up of demand notes, aggregating
$40, ,73O, consisting of Reome's demand note
for $27,W6 HaiferS demand note for S10-
OD, Powers demand note for 50 OfO and
other demand notes for various amounts
The records of the bank show that owing
ID the continued overdrafts of Roome
which began the third day after the bank
had commenced business, and owing to the
discount for his personal credit of worthless
demand notes of his own and of his friends
and associates. the bank practically in
sciNent from the date of its organization
Withdrawal of Deposits.
The connection of the American Savings
Bank with the Union Surety and Guarantee
Company, of which Roome was vice presi-
dent. Is shown and the methods of deposit
ing the funds of the surety company in the
American Savings Bank set forth. when
the bank became involved by the
withdrawal of deposits it Is stated that
Roome had the directors pass a resolution
empowering him to borrow money in the
name OF this bank and pledge it's securities
the bills received on such terms as he might
see fit. The bill continues
On the day preceding this resolution the
apparent balance standing to the credit Of
RooIne was S24J.26 On that date, however,
he drew out of the bank s., Obs overdraw-
ing his apparent balance 81 1854 and from
that time he continued to increase this
overdraft by drawing out the depositors'
money follows:
August Il, 800; August 10, so150; August
70, 1900; August 2s, 81 1060; August ~.
$1,000 September 6, $1,G00; September IL,
$1,000; total, s., so.
During the entire period of these over
drafts Roome well knew the bank was in
solvent and without funds OF real assets
with which to pay the amounts due the
depositors in the bank"
The bill continues by citing the notice
or sixty days demanded of depositors who
contemplated Withdrawing their funds
Shortly after this action, according to the
BILL certain officers of the Union Surety
and Guaranty Company obtained '.practi-
caliy the sole remaining assets" aggrega ting
Slo-501 .O6. Various transactions with the
Union Surety and Guaranty Company are
detailed. whereby the latter organiza ton
is alleged to have accepted the notes given
by the bank "to the extent only to which
they might prove finally collectible."
Alleged Insolvency From the Start.
The complainants are informed and be-
lieve and aver and charge the bill then
states. that from the date of it's organiza-
ton the American Savings Bank was IN
solvent, that Roome as chairman of the
executive committee of the board of d.
rectors and as president of the American
Savings Bank was at all times fully aware
Of the insolvency of the American Savings
Bank, that the Union Surety and Guaranty
Company was actually al all times aware of
th@ lnsolvent condition of the bank and its
deposits were made with that knowledge
and the surety company was further charg-
ed with notice of the condition of the bank
possessed by its local vice president and at
torney. in fact, VIM. Oscar Roome and it's
local agent, Geo. 7. Parker
The complainants ask that the transfer of
the promissory notes. debts, due bills and
choses in action belonging to the Ameri-
can Savings Bank, by it's president WILL
lam Oscar Roome, to the defendant, the
Union Surety and Guaranty Company be
declared to have been in fraud of the de-
positors and other creditors of the bank
and TO be null, void and of no effect; and
that the Union Surety and Guaranty Com
pany be decreed to hotd the same and
the proceeds of such thereof as have been
OF or may hereafter be collected in trust for
the compainants for the benefit Of the de-
posltors and creditors. That the Union
Surety and Guaranty Company; it's agents,
attorneys, officers and trustees during the
pendency of the suit be enjoined and re-
strained from selling. assigning. transfer
ring or in anywise disposing of the promis-
sorry notes, debts. due bills and chooses In
action received by 1t from William Oscar
person or persons except by way of de-
livery to the makers or indorsers thereof
upon payment of the full amount due
thereon: that the Union Surety and Guar
anty Company account to the complainants
Tor all and every sum ard sums of money
received by 1t or any person or persons by
its order or by the order of any of it's Off
GERS or agents or to its, or their, use for
and in respect of the notes. chooses In ac-
ton. due bills and debts delivered or trans
ferred to it. by or received by 1t from Will
lam Oscar Roome, and that the Union
Surety and Guaranty Company surrender
and deliver up to the complainants all and
singularly the promissory notes, due bills,
chooses in action and evidences of debt re-
eeived by 1t from William Oscar Roome or
the American Savings Bank save only
those which it has surrendered to the per-
son liable thereon upon payment of the full
amounts due thereon. for which it is to ac-
count as hereinbefore prayed"
Attorneys Henry H. Classic and D. W.
Baker appear for the receivers.
Naval Orders.
Lieutenant Commanders HI. Morren and
e. w. Jungen. Lieuts. C. P ,Plunkett. II.
w. Jones. F. b. Bassett. H. A. Pearson, G..