Evening star., 1922-08-05
ANAc0ST|A BANK
REFUSED PERMIT
Organizers Warned 10y United
States Controller Not to
Begin Business.
PROMOTION FEE ILLEGAL
Fines Provided by Congress Point
ed Out in Notice Given
Public.

Controller of Currency Crissinger
today issued a statement concern
Ing the Merchants and Farmers Bank
OF Anacostia. which. he says. had
been refused permission to organize.
! but is now continuing to solicit sub
scriptions for stock and demanding
payment OF the subscriptions.
BY authority of the emergency
banking act, passed by Congress and
approved April rs of this year. the
| controller has the authority to refuse
permission ito engage in the business
| of banking" in the District of COL
| umbia, 'and according to the act.
| each one of the officers Of such cor
poration SO offending shall be pun
ished by fine not exceeding $1,000
or Imprisonment not exceeding one
year or by both fine and imprison-
ment, in the discretion Of the court
Whether an Office had been opened
by Raymond Z. HUNT. representing
himself to be president of the Mer-
chants and Farmers Bank, the con-
troller said he had not as yet been
advised. Complaint had reached him.
however. he said. of activities of the
stock. the selling price of which in
cluded a fee of So per share to The
Premier Finance Company, Incor-
porated," for organization.
Prohibitory Order.
The statement of the controller
said:
"On June 2s the controller of the
currency made bureau order pro-
hibiting the authorization by the bu-
reau Of any bank that was being pro-
NOTED with promoters fees. whether
the same was created by contract
with the proposed bank or with the
individual subscribers for the stock.
Advice has come to the controller OF
the currency that the Merchants and
Farmers Bank of Anacostia, which
has heretofore been refused permis-
sion to open a bank for the reason
that it was being organized with a
promotion fee of So per share, which
the stockholders had agreed to pay,
is now engaged in an active campaign
selling stock, but. since said order
went into effect and the refusal to
grant permission TO open the Mer-
chants and Farmers Bank, there has
come to the attention OF the controller
that one Mr. Raymond E. HUNT, rep
resenting himself to be president OF
the Merchants and Farmers Bank. is
collecting stock subscriptions. with
promotion fees in the contract.
That on July 8: the said MT HUNT
sent out a notice demanding pay
ment Of the subscriptions and that
afterward another undated notice
was sent out demanding payment of
subscriptions for this bank. All of
this is done notwithstanding the fact
has refused permission to this bank
to open because Of the fact that So
per share of the subscription is to
be used by the Premier Finance
Company. presumably as orsaniza-
tion expenses. but as a matter fact'
promotion fees.
The controller of the currency
made lit plain that he had received
numerous complaints from persons
in nearby Maryland of the activities
Of the Merchants and Farmers Bank.
and he thought 1t wise to warn the
public that such a bank would not
be permitted to open in the District
of Columbis.
A copy of Mr. Hunts undated re-
ceneS letter to his subscribers stated
that already the fixtures of the bank
ready-in fact. everything is now
ready with the exception of the vault.
which has been shipped fro2 the
factory and is due to arrive this
MT. huntt, IN MS most recent lettet.
says:
Dear Subscriber:
We find that you have not yet paid
your calls. amounting to 3. on
your subscription to - shares of
stock. 1t is absolutely essential that
every subscriber pay these calls be-
fore arrangements for opening Our
bank can be completed. You are.
therefore. urged to give this matter
your immediate attention.
Our fixtures are installed, station
cry is ready-in fact. everything is
now ready with the exception of the
vault. which has been shipped from
the factory and is due to arrive this
week
Nearly all of the subscribers have
met their calls promptly. Please let
US have yours without further delay
The earlier we open, the earlier we
commence to earn money for our
stockholders
I'VE await your prompt remittance"