Evening star., 1901-09-27
American Savings Bank Placed in
the Custody of Receivers.
JEFFORDS And SYME APPOINTED
Application Made by Nicholas T.
HalIer, a Stakeholder.
ALLEGATIONS SET FORTH

The American Savings Bank. at No, 1907
G street northwest, which suspended pay
ments to it's depositors last Monday. was
placed in the hands of receivers today.
Application for such procedure was made
by Mr. Nicholas T. Haller, a stockholder
! and depositor of the bank. and was grant
ed by Chief Justice Bingham of the Su-
preme Court of the District of Columbia.
Messrs. Tracy L. Jeffords and Conrad H.
Syme were appointed receivers and, after
qualifying in the sum of $4,000 each. took
immediate charge of the concern. They
were engaged this afternoon in making
an inventory of the furniture, fixtures and
similar possessions Of the bank, and will
examine into it's financial condition tomor-
row.
The American Savings Bank of which
William Oscar Roome was president; Edgar
IL Stocking and Charles III. Wake, vice
presidents, ana Charles w. Power, CASH
Ter was organized and began business in
November, 1898. 1t did a moderate busi-
ness. Last Monday the following notice
was sent out to depositors:
by reason of large discounts made by
this bank and an unexpected withdrawal
OF deposits the executive committee finds
Itself compelled to exercise discretion vest
ed In ii by section of article 16 of the by
laws of this corporation, contained in each
pass book and assented to by each de-
positor, and hereby require that sixty days
notice In writing be given the bank
by every depositor before the payment by
the bank of any check or order drawn
hereon by such depositor
This bank will consider the presenta-
don OF all such orders or checks as such
notice as to such orders or checks end
the same will be duly paid within sixty
days from the day Of presentation"
A number of the depositors claimed how
ever, they had not received a copy of such
notice.
UnavniIing Efforts.
Efforts have been since made by Presi-
dent Roome and his associates to tide over
the difficulty, and the former has assured
all inquirers that prospects for an early
resumption of payments were bright. lie
stated that the deposits amounted to $780,
600, representing 400 or 800 depositors, and
that the assets aggregated $317 600 the lat
ter consisting almost exclusively of notes
which the hank had discounted. 1t was
said today that a considerable amount of
these notes had been negotiated by de-
positors IN the bank, and by stockholders
thereof: but the truth of this will only be
ascertained when Receivers Jeffords and
Syme have made their Investigations.
Several hours We're spent last night by
some of the stockholders in vain eildeavor
to arrange some plan by which the insti.
tuition could resume business without fur
ther delay. 1t is understood that the even
ing was occupied In discussing whether the
positors or raise the money among the
stockholders themselves. each contributing
In proportion to his holding of the stock.
AS stated, nothing was accomplished and
the result was the legal steps taken today.
Mr. HaIIer's Claims.
In the course of MT. Haller's application,
which was presented by his attorney, Mr.
Jeffords, It was explained that the bank
has capital stock Of $4,000, and that Mr..
II oil Ie +l,ao e1a
value, and is depositor in the bank Mr..
Haller recites that the 23d instant the bank
sent letter to number OF its depositors,
but not to all. as stated above.
Proceeding, Mr.. HaIIer declares that the
condition of the bank, as described "at
this time of the year has resulted. and will
result, in destroying the confidence of the
public and of the depositors who will de-
mand their money at the expiration of the
sixty days mentioned. The assets of the
bank will then be exhausted in paving the
same, and Will be insufficient to meet all
the demands; and in addition to such in
suf1ciency the defendant bank will be bur-
dened with its expenses for the sixty days.
thereby making another deficit and by rea-
son OF such loss of confidence the standing
and ability of the defendant bank win be
SO Impaired that 1t would be Improbable
and unwise to further attempt to do busi-
ness
Alleged Partially.
While the bank is refusing to honor the
Mr.. Haller, 1t is honoring the checks OF
other depositors and accepting the same
in some instances in payment of promis-
sorry notes held by the bank against such
deposftors, and in this and in other WAYS
so it is declared, the bank is discriminating
against certain depositors and against the
petitioner, and disposing of some of the as
sets of the bank to the prejudice Of the de-
positors and to the prejudice and loss OF the
petitioner.
Mr.. HaIler goes on to declare that the
assets Of the bank constitute a fund to
which the depositors have the right TO re-
sort for the payment of their deposits. and
that the assets are In danger of loss by
reason of waste. misconduct and misman-
agement of the bank: and there are al
ready many threats made to sue the bark,
which, IL enforced, will involve 1t in bitter,
expensive and long-continued litigation"
Concluding Comment.
In concluding his petition Mr.. Haller
says: The result OF the aforesaid and
present business operations of the defend
ant bank and it's continued unbusiness-
like and unlawful actions will waste and
diminish the assets of the bank and will
add unnecessary expense to its manage
ment and deprive this petitioner of the
funds and assets of the bank out of which
his deposit should be paid, and when this
condition Of affairs has been produced this
petitioner will be liable to assessment for
the full amount of his holdings of capital
stock, for the purpose of making up the
deficit so wrongfully and unlawfully
caused by the bank; that the total liabili-
ties of the bank al this time are about $50
co. and the assets. not all Of which are
good, amount to about twice that sum
and your petitioner hopes and believes
that If receiver were appointed herein
now the affairs of the bank would be so
managed under the direction of the court
that IT might meet all its liabilities in time.
but does not believe II could meet all its
liabilities within the sixty days mentioned
in the notice"