Evening star., 1933-08-03
PARK BANK BATTLE
PROMISES RECORD
Complexities Increased by
Filing of Five PIeaGngs.
Date to Be Set.

With seven separate actions now filed
in the Park Savings Bank case, lines
have been drawn up for q court fight
which, according to bank circles, prom
ises to be one of the most unusual and
complex in the history of insolvent bank
litigation
The case, in which five pleadings
were filed yesterday, cannot be heard
by the present presiding judge in Dis
trict Supreme Court, Joseph w. Cox,
because the judge Is named as one of
the several defendants in the case, a
director In the bank.
date for hearing likely will be set,
It was predicted today, after Justice
Daniel w. ODonoghue returns from
vacation about the middle of this month
The dispute revolves around the bill
filed by the depositors, who charge the
banks charter expired under Alabama
law in August, 1929; that the directors
then became hquidating trustees of the
institution and are therefore jointly and
severally liable for the losses of more
than 81 500, 600 found in the bank after
the vice president, Robert S. Stunz,
committed suicide March H. The de-
posltors ask for a court receiver to be
appointed in place of the Treasury re-
ceiver. John F. Moran They intend
to collect enough. if possible. from the
directors and stockholders to pay de-
positors 100 cents on the dollar.
Directors Ask Dismissal.
The directors, as principal defendants,
filed late yesterday a comprehensive
answer moving to dismiss the charges
and denying their liability, under the
depositors' bill. They deny the charter
OF the bank had expired or that the
corporation had ceased to exist The
bank continued to function after Au-
gust, 1929, the directors stated and
each year paid for and received from
the State Of Alabama a permit to do
business as bank The last permit
was issued January 81, 1893, cost $50,
and authorized the bank to operate
during this calendar year. The bank
also paid $3.50 year franchise tax for
this year, the answer AYERS. Neither
the State of Alabama, nor the controller
OF the currency had questioned the
validity Of the banks right to do busi-
ness as corporation the directors saw.
and the controller of the currency con-
t1nued to examine the bank. and to re-
ceive reports from it as a bank. The
controllers right to take charge of the
bank through q receiver is supported
by the directors. The directors claim
they never became "liquidating trlls-
tees" OF the bank, that they never dealt
With the depositors personally, and
That their relations with the bank were
as directors Of going concern.
Inc directors deny any sufficient
knowledge of the alleged wrongful &C.
tions Of Stunz to permit them to either
admit or deny any charges of wrong
ful action on his part.
Depositors' Position.
The depositors having dealt with the
bank as corporation up to the time
It was closed by the bank holiday are
now estopped under law, the directors
charge, from asking that the institu-
ton be declared not to be q bank. At
torneys Otis B. Kent, Joseph T. Sherier
and Ralph B. F1eharty appear for the
directors, the stockholders and the
bank.
On behalf Of tho bank they filed mo-
tions to dismiss, claiming the controller
had exclusive jurisdiction" over the
bank. On behalf Of the stockholders
they moved to dismiss, claiming the de-
positors had not stated q sufficient
cause of action.
The Controller Of the Currency has
moved to dismiss the depo6itors' claim
that he has no jurisdiction. He is rep
resented by q. B. Sprtngston. The re-
cetver. John r. Moran. represented by
J. Bruce Kremer answered the move to
oust the receiver, BY leaving the ques-
ton Of the status Of the bank up to
the court.