Evening star., 1933-11-07
j. S. SAVINGS BANK
CASE POSTPONED
Difference of Opinion Between
Attorneys Delays Argu-
ments Until Thursday.

The long-contested case Of the United
States Savings Bank was postponed this
morning until Thursday by Justice
Jennings Bailey after hearing counsel
In opening statements for only a few
minutes
Difference Of opinion between counsel
for Col. Wade H. Cooper, president Of
the bank, and for the Treasury officials
led Justice Bailey to declare any fur
ther hearing this morning to be "a
waste of time" until the specific proposal
to reopen the bank could be reduced to
writing.
w. Bissell Thomas, counsel for Col.
Cooper, contended there had been an
offer which would bind the stockholders
TO pay Sl00 a share to guarantee pay
ment to depositors, but George p Barse,
Treasury counsel, insisted on consider
ing the proposal In writing before the
court.
Cooper's counsel rejoined by saying
that Treasury officials had said they did
not want this additional requirement in
writing.
DiSputc COOptT RAN.
Justice Bailey at first was inclined to
postpone the hearing for two weeks, but
on request of Barse. who asked for an
earlier hearing, Thursday morning was
fixed.
The dispute arose over provision in
the agreement submitted for the sigma
ture of stockholders under a plan
which Col. Cooper has proposed, but
which has been disapproved by the
Treasury Department. As explained by
Mr.. Thomas, this plan would allow de-
positors to receive 65 per cent of their
deposits in cash when the bank re-
opened. They would receive also, par
ticipating certificates for the remaining
IS per cent. This 35 per cent remain
ing, Mr.. Thomas explained, would be
backed up by assets Of face value OF
$S50,000 on which could be realized at
least $75o, 900 in cash. In addition. Mr.
Thomas explained that the stockholders
had agreed, II and when necessary, to
pay 500 share into the trust fund to
guarantee payment to depositors.
: Mr.. Barse in opening his statement
explained that Treasury officials had
made no promises to approve any
, Cooper plan, and that the only thing
before the court was the proposal in
writing.
Judge Halts Debate.
John w. Staggers, counsel for Col.
Cooper, told the court he had person.
ally telephoned to Gibbs Lyons offering
to put the proposed obligation binding
stockholders to pay 800 a share in
writing as an amendment to the pro-
posal. but. Staggers said, Lyons told
him this would not be entertained.
Justice Bailey halted the debate be-
tween counsel to declare it was only
a waste of time. He asked Cooper's
counsel to amend their bill and have 1t
before the court by O'Clock. On fur
ther discussion between the court and
counsel, it was first proposed to post
pone the hearing for two weeks, but
later changed to Thursday morning.
The Cooper plan, according to
Thomas, would make available to de-
'positurs $1,150,o00 Immediately upon
opening of the bank. This 65 per cent
was covered by assets of the bank, he
said Of 81 800 900, and there would be
5 left In addition another $850,00 Of
slower assets to cover the IS per cent
of deferred deposits to be paid later.
- The capital structure of the United
States Savings Bank, Mr.. Thomas
claimed was not impaired. s.isi