Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-04
COMMUNITY BANKS
PLANNED BY HEADS
OF DEFUNCT CHAIN
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hank commissioner and corps OF as
.istants. Mr.. Page said he and ms
men were engaged in listing the assets
n, hand There can be no liqL 'da'lon
ror can any schedule OF assets am La
hilities be prepared h said, until thlS
preliminary task is completed.
In discussing the reorganization
mans persons affiliated with the parent
bank pointed out that there axe ho
other banking facilities in four to"ho
where Central Trust branches c-oSeo
Their doors yesterday. These conamuhl-
ties are Wakerville, Monrovia' PooleS-
Vile and Smithsburg.
Public Sentiment Sought.
with this situation in mind, the ci-
rectors of the Central T:ust Co. ale
seeking some scheme of dlVidln9 .ns
present corporate structure so tHaC nv
ccrrorat.cns may be iormed ID taAe u. r e.
and opeyate in the various banche".
what extent this plan will pc c'I-leu
o,,t Il was understood, depends in large
measure upon public sentiment In the
communities aHecteo. ,-.. x,ror;
Emery i. Ccblentz. the banks p"esi-
don't was said to be waiting Tor some
indication from the public as TO WheOnel
tl,ev want their banking 1aclltleS re-
stored before announcing his plans III
this connection. - t,ot
anv concrete plan for reopening the
hanks under new names cen be a?re~d
uoon until the State bank corlm!SSiohe.
connlete3 MS study CT the situation
This will b. necessary, &c vas en-
p!ained, so that the financial conci-
lion CT The institution NAV oe o2lliilIs!S
known 1t YVES indicated tnct the palh
commissioners study VIII require con-
siderable time.
Security Part Watched.
There was considerable interest here
4, the mart to be played in any reor-
eanizaticn by the Central Securities
Corporation subsidiary OF the truSt
company. .,
The securities corporation was form
ed shortly after the reorganization IN
Wsrdman properties. More than ST.
600. 900 of Wardman junior debentureS;
which are about equivalent to thrd
mortgage bonds, were issued to Mr..
CoblentZ at that tine. The debenJufeS
were taken in lieu of equities in the
properties which existed prior 10 the
REORGANIZATION. These equities were
protected by second and, in some cases,
third mortgages.
After the securities corporation had
been formed. the debentures were
turned over to it by the bank, and, 1t
was said today, they are still in its
vaults. Many of these debentures. it
was learned, are owned by individuals
here, and, in view of the present coA-
dition of the Wardman properties. they
are regarded as virtually worthless.
Debentures Held Worthless.
At least to this extent, IL was said,
there will undoubtedly be 4 loss as
result of the banks failure. It was
pointed out, however. that even had the
bank been able to keep going there
would have been little chance &C SAL
yaging anything from the dsbeatures.
It could not be learned wilethGr any
of the banks funds are tied up In these
securities. The State officials exam
lining the banks records said they had
not learned Ak -et whether any bonds
or stocks uf the F. H. Smith Co., a
Washington corporation. are included
among the'assets now held by the bank
1t Is known that Mr.. Ceblentz had