Evening star., 1933-07-21
Committee Move Against Di-
rectors Is Approved at
Mass Meeting.
OFFICIALS ESTIMATED
TO BE WORTH $4,000, 900
Treasury Departments "Star-Cham-
Der Proceedings Brings
Criticism.

CrlClclZlng Cne treasury OepdItmeut
for it's star chamber proceedings" In
connection with Park Savings Bank af-
fairs, the Depositors' Committee of the
institution last night publicly announced
the directors of the bank were estimated
to be worth $4,000, 900 and would be
sued to make good the entire shortage.
Recent estimates place this shortage,
discovered after Robert S. Stunz, vice
president, committed suicide, at more
than $1,50o,000.
Announcement Of its purpose was
made by the Depositors' Committee at
a tumultous mass meeting of more than
700 depositors at Central High School
The gathering enthusiastically approved
the action of its committee, authorizing
1t to proceed with a law suit to ouSt
the Treasury Department receiver, and
to collect. if possible, from the directors
and stockholders under a court re-
ceivership.
Objector Drowned Out.
Only one voice was raised in obiec-
ton to the committee by w. E. An
drewS, who explained afterward he
was former member of Congress from
Nebraska, and had been an auditor for
the Treasury Department for 18 years.
His attempts to oppose the court re-
ceiver as more costly and longer than
the Treasury receivership were finally
drowned out in demonstration by the
audience, which booed, whistled. yelled
and applauded vociferously. He ex-
planned on questioning that he was a
depositor, and had originally invested
~, -f1 41r to, l.
as community bank.
The gathering was opened by j: w.
Thompson, chairman of the Depositors'
Committee. Raymond B. Dickey was
selected as chairman for the evening,
and later had a lively time of it while
Andrews contested his right to the floor
with several persons who tried unsuc-
ceSsfully to have him declared out of
order
The committee spokesman was Will
lar! Joseph Neale, an attorney, who
explained he was depositor but not q
stockholder nor director None of the
Depositors' Committee held any stock
in the bank, he explained, but all we're
determined to concentrate their efforts
on getting what money they could out
OF the bank for the benefit of all de-
posltors before paying any attention to
movements for opening a new bank.
Neale denied that there had been any
solicitation Of funds for support of the
Depositors' Committee, said that not a
member expected to receive a cent for
MS services, and that the committee
had engaged as counsel E. Hilton Jack
son and William E. Richardson.
Declaring the Park Bank had been
chartered in Alabama August 80. 1909.
and that its charter under law had ex-
pired August 80. 1929, Mr.. Neale said
the bank ceased to exist in 1929, and
was now a co-partnership. Directors
and stockholders, he said, now were
personally liable. The directors had
legal notice that the charter was to
expire, the speaker explained. and the
once OF the controller of the currency
had official notice because of a certified
copy OF the charter on file in the con-
troller's office.
Explaining the suit filed in the court
against directors and stockholders of
the bank was an effort for the bene-
mt OF every depoSitor" to force the d.
rectors and stockholders to "pav back
TO us every dollar which we have in that
oank, the speaker evoked prolonged
applause.
Plan Receives Applause.
I'VE have had an investigation made
by a commercial firm" he said. "and
fhe dictatorship alone Is rated at So
O0O0 900. If those directors are worth
$8,000,000 and have sat by and let
our funds be wasted, we feel thev
ought to come across for 100 cents on
tthe dollar, and we've gone into court
to compel them to do So" This brought
another heavy round of applause.
Neale explained he was making no
criticism Of the new controller of the
currency, "who hasn't had time yet to
learn what it is all about" He related
in detail the story Of conference with
F. G. Await. deputy controller of the
currency, concerning what the commit
tee had expected would be the legal
phase OF the whole problem. He crit
icized Await for not telling the com
mittee while it was in conference that
a Treasury receiver had already been
appointed. "Do you wonder" said
Neale, that your committee is opposed
to Treasury receiver, and that we
want to have court receiver appointed,
SO that we may deal without resort to
star chamber proceedings such as we
have had to deal with in the past?"
He charged the directors of the bank
under Alabama law should have started
to liquidate the Park Bank in 1929.
He said the directors had no right to
borrow from the Reconstruction Finance
Corporation. Last Saturday, he said,
the bank owed the R. F. C. $256, 900, for
which the r. F. C. held $730,0O0 of
the banks securities. The securities,
r. F. c., he said, will be made q party
to the suit in court.
Neale said he believed the committee
had a good case, and was in the right
The case will be carried to the Supreme
Court, If necessary. To protect their
rights as depositors, however, in case
the committee lost its suit, Neale ad-
vised depositors to sign the proofs of
claim" which may be sent out soon by
the new Treasury receiver at the bank.
But he warned depositors to reserve
your right against stockholders and d.
rectors, for if you don't you might be
out in the cold"
The committee collected cards from
the audience carrying names, addresses
and amounts deposited for use in ex-
planning to the court the clientele it
represented
One Dissenting Vote.
The motion to approve the commit
tee report was made by J. Eliot Wright
and carried with only one dissenting
voice. after the excitement over former
Representative Andrews.
Andrews stoutly resisted efforts to
stop his speech. He succeeded in say
Ing, before he was drowned out by noise,
"A court receivership is the slowest on
earth A receivership from the con-
troller is bad enough, but under the
court it Is infinitely worse. What do
You want. years and years to follow
this committee on up to the Supreme
Court Of the United States? II you
fcllo~ this committee you might Just
as well bid good-by to every dollar
you've got IN thus bank" This ~